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Res 05-78, 05-79, and Ord 1101 - Child Care Facilities Impact Mitigation Fee (CCFIM Fee)
CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: Consideration of a Child Care Facilities Commercial Development Impact Mitigation Fee pursuant to the findings of a new Nexus Study. SUBMITTED BY: Phil Drell, Director of Community Development DATE: September 22, 2005 CONTENTS: Recommendation Executive Summary Child Care Facilities Impact Fee Nexus Study Legal Notice Resolution No.g5-7$4dopting Nexus Study and Childcare Facilities Master Plan Ordinance No. 11o1 Establishing Impact Fee Resolution No.05-79Setting Fee Levels Recommendation: Adopt Resolution No.o5-78 Ordinance No. Upland Resolution No05_79adopting Nexus Study and Master Plan, establishing a Childcare Facilities Impact Fee for all new commercial (non- residential) developments within the City. Executive Summary: With the growing dominance of two wage earners and single -parent households, availability of high quality child care facilities has become a socio-economic necessity. Palm Desert's retail/resort economy creates additional unique demand for affordable child care services oriented to the 24/7 work schedules of the hotel and restaurant industries. In the attached City of Palm Desert Childcare Facilities Impact Fee Nexus Study (The Study), the nature of both existing and future child care facilities supply and demand conditions created by commercial development is analyzed pursuant to the requirement of Government Code 660000 (The Mitigation Fee Act). Based on county licensing records, labor force and family composition data from the 2000 census , existing supply and future demands were projected. Specific connections (or Nexus) are established between the various categories of commercial land uses and the growing demand for child care services. The Study identifies affordability and facility quality in addition to supply issues that impact overall availability of adequate childcare. 1 STAFF REPORT CITY COUNCIL SEPTEMBER 22, 2005 The Study concludes that without financial assistance child care providers will not be able to adequately address the growing demand for high quality affordable child care services within appropriate facilities. The Mitigation Fee Act allows the City to assess a fee on developments identified in a nexus study to help fund facility needs generated by those uses. The Study includes a Childcare Facilities Master Plan (pages 23-25) identifying the specific types of facilities needed to address the projected demand. Based on the costs of new facilities, the projected composition of future commercial developments and their respective impact on child care demand; the following fees are recommended: • $0.47 per square foot for Tight industrial • $0.77 per square foot for hotel/visitor uses. • $0.90 per square foot for retail/service commercial uses. • $1.15 per square foot for office uses. • Mixed use projects shall be assessed a blended rate based on the anticipated uses. • Uses not listed shall be assessed according to the nearest appropriate category. Fees will be collected for all non-residential uses at issuance of building permits. Fees will be used to fund new centers and expansion or improvements to existing centers pursuant to the Master Plan. Submitted by: hil Drell Director of Community Development Approved by: Approved by: Homer Croy Carlos Orte Assistant City Manager for City Manager Development Services PD/dq G:\PLANNING\DONNAQUAIVER\W PDOCS\SR\childcare.pd 2 CITY Of PRIM DESEPT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-0611 FAX: 760 341-7098 info@palm-desert.org NOTICE OF PUBLIC HEARING REGARDING CHILD CARE FACILITIES FEE Notice is hereby given by the CITY OF PALM DESERT that a PUBLIC HEARING on the following item will be held before the PALM DESERT CITY COUNCIL AT THE CIVIC CENTER COUNCIL CHAMBERS located at 73-510 Fred Waring Drive, Palm Desert, California on Thursday, September 22, 2005 at 4:00 p.m. SUBJECT: A Public Hearing to consider the adoption of a child care facilities fee for non- residential uses. Based upon a Child Care Facilities Impact Fee Nexus Study, the proposed child care facilities fee would be as follows: $0.47 per square foot for business park/light industrial uses; $0.77 per square foot for hotel/visitor uses; $0.90 per square foot for commercial uses; and $1.15 per square foot for office uses. If adopted, the fee would apply to all new development in these categories, with certain limited exceptions. ADDITIONAL INFORMATION: Pursuant to the California Government Code, please take notice as follows: If you challenge the action described in this written notice in court, you may be limited to raising only those issues you or someone else raises at the public hearing, or in written correspondence delivered to the City of Palm Desert at, or prior to, the Procedure Section 1094.5. The City of Palm Desert complies with the Americans with Disabilities Act. If you require reasonable accommodations for this meeting, contact the City Clerk's Office at (760) 346-0611, Ext. 304 at least three (3) working days prior to the public hearing. If you have any questions about the above child care facilities fee or want to submit comments, you may contact Phil Drell at (760) 346- 0611 ext. 481. Publish: Desert Sun Rachelle D. Klassen, City Clerk 09/11/05 and 09/17/05 City of Palm Desert, California r �> ',no o. URN CI 1011 RESOLUTION NO. 05-78 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A CHILD CARE FACILITIES IMPACT NEXUS STUDY INCLUDING A CHILD CARE FACILITIES MASTER PLAN CONTAINED THEREIN WHEREAS, child care has become an increasingly important community service that is difficult for many families to secure due to lack of available facilities and spaces and/or because of cost; and WHEREAS, the City's General Plan provides that the City should encourage the availability of adequate, convenient, affordable child care that is accessible to all economic segments at the community; and WHEREAS, to further this General Plan policy, the City Council has reviewed a Child Care Facilities Impact Fee Nexus Study which sets forth the reasonable relationship between the need for child care facilities and non-residential development, establishes a nexus between certain fees and the cost of child care facilities needed to serve such development including a Child Care Facilities Master Plan all in conformance with the requirements of The Mitigation Fee Act, California Government Code Section 6600 et seq.; and WHEREAS, the City Council of the City of Palm Desert did hold a duly noticed public hearing to consider the Child Care Facilities Impact Fee Nexus Study and Master Plan on September 22 2005 in connection with the consideration of actions to adopt a Child Care Facilities Impact Mitigation Fee. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: SECTION 1. The City Council hereby approves the Child Care Facilities Impact Fee Nexus Study and adopts the Child Care Facilities Master Plan contained therein. PASSED, APPROVED and ADOPTED at the regular meeting of the Palm Desert City Council held on the day of AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California , 2005, by the following vote: BUFORD A. CRITES, Mayor RESOLUTION NO. 05-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING CHILD CARE FACILITIES IMPACT MITIGATION FEES WHEREAS, child care has become an increasingly important community service that is difficult for many families to secure due to lack of available facilities and spaces and/or because of cost. WHEREAS, the City's General Plan provides that the City should encourage the availability of adequate, convenient, affordable child care that is accessible to all economic segments at the community. WHEREAS, to further this General Plan policy, the City has reviewed and adopted a Child Care Facilities Impact Fee Nexus Study which sets forth the reasonable relationship between the need for child care facilities and non-residential development, establishes a nexus between certain fees and the cost of child care facilities needed to serve such development, and includes a Child Care Facilities Master Plan describing facility types and capacities required to meet future demand. WHEREAS, the City Council of the City of Palm Desert did hold a duly noticed public hearing on September 22, 2005, to consider the Child Care Facilities Impact Mitigation Fee. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: SECTION 1. The City Council hereby adopts the Child Care Facilities Impact Mitigation Fee amounts set forth below: • $0.47 per square foot for business park/light industrial uses • $0.77 per square foot for hotel/visitor uses • $0.90 per square foot for commercial uses; and • $1.15 per square foot for offices uses. • Mixed use projects shall be assessed a blended rate based on the anticipated uses. • Non -Residential uses not specifically listed above will be assessed according to the nearest appropriate category as determined by the Director of Community Development pursuant to provisions of Section 3.45 of the Municipal Code. Desert City Council held on the AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California RESOLUTION NO. 05-79 SECTION 2. Unless the City Council adopts a resolution setting forth different fee amounts, these fees shall be automatically updated pursuant to Section 3.45.030.0 of the Palm Desert Municipal Code. PASSED, APPROVED and ADOPTED at the regular meeting of the Palm day of , 2005, by the following vote: BUFORD A. CRITES, Mayor 2 ORDINANCE NO. 1101 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADDING CHAPTER TO THE CITY OF PALM DESERT MUNICIPAL CODE TO ESTABLISH A CHILD CARE FACILITIES IMPACT MITIGATION FEE FOR NON-RESIDENTIAL DEVELOPMENT THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.45 is hereby added to the City of Palm Desert Municipal Code to read as follows: 3.45.010. Purpose, Use and Findings. The City Council finds and determines as follows: A. As recognized by both State and local law, child care has become an increasingly important community service that is difficult for many families to secure due to lack of available facilities and spaces and/or because of cost. Good quality child care services are an essential service for working parents and such child care facilities can contribute positively to a child's emotional, cognitive and educational development. The State has acknowledged the need for quality child care facilities in both the Health and Safety Code and the Government Code. Similarly, the City's General Plan states that the City should encourage the availability of adequate, convenient, affordable child care that is accessible to all economic segments of the community. B. The purpose of this chapter is to create a child care facilities impact mitigation fee that will apply to new, non-residential development in the City. This fee will further the public health, safety and welfare by funding the construction of needed child care facilities in the City. This chapter is thus consistent with both the State's policy of encouraging quality child care facilities and with the City's General Plan. The City has the authority to enact this Chapter pursuant to Article XI, Section 7 of the California Constitution and in accordance with the Mitigation Fee Act, Government Code Sections 66000 et seq. C. Based on the findings of the City of Palm Desert, the purpose of the child care facilities impact mitigation fee enacted by this chapter is to fund required capital improvements to create new child care facilities or new spaces or improvements to existing child care facilities in the City that will be available to serve the new employees working in new, non-residential developments in the City. The City Council finds that non-residential development results in businesses whose employees require child care. This child care facilities impact mitigation fee requires new non-residential development to pay its reasonable share of the increased need for child care facilities generated by such development. ORDINANCE NO, 1101 D. The City will use the child care facilities impact mitigation fee to construct or cause the construction of new child care facilities or for the expansion or improvements of existing child care facilities in the City. Without limitation due to enumeration, the City shall use the child care facilities impact mitigation fee to construct or cause the construction of new day care centers, new family day care homes and the expansion of existing day care centers and family day care homes. The City's use of the child care facilities impact mitigation fee shall be consistent with the City's Child Care Facilities Master Plan, which may be updated from time to time. E. There is a reasonable relationship between the need for the facilities identified in the City's Child Care Facilities Master Plan and the types of development projects upon which this fee is to be imposed. New, non-residential development in the City generates new businesses that need new employees. Many of these new employees require child care facilities. The City anticipates that 19,500 new jobs will be created through build -out of the parcels with non-residential land use designations in the City's General Plan. As more particularly stated in the City's Child Care Facilities Impact Fee Nexus Study, it is estimated that these new jobs generated by this new non-residential development will create the need for a substantial number of child care spaces in the City. This need created by this new development may be satisfied by the construction of new day care centers or family day care homes or by the expansion of such facilities. Therefore, the facilities to be funded by the child care facilities impact mitigation fee bear a reasonable relationship to the type of development project on which this fee is to be imposed. F. The use of the child care facilities impact mitigation fee bears a reasonable relationship to the type of development project on which this fee is to be imposed. The City will use the fee to construct or cause the construction of new, expanded or improved child care facilities. As documented in the Child Care Facilities Impact Fee Nexus Study, these new, expanded or improved facilities are needed to address the needs of new employees working at the new, non-residential developments to which the fee applies. Therefore, the fee's use bears a reasonable relationship to the type of development project on which this fee is to be imposed. G. In any action imposing this child care facilities impact mitigation fee as a condition of approval of a development project, the City shall determine how there is a reasonable relationship between the amount of the fee and the cost of the facility or portions of the facility attributable to the development on which this fee is to be imposed. 3,45,020. Definitions. As used in this chapter: A. "Light Industrial" refers to facilities designed to accommodate a variety of light manufacturing operations, warehousing and distribution activities. B. "Child Care Facility" means either a day care center or a family day care home. 2 ORDINANCE NO. 1101 C. "Child Care Facilities Impact Mitigation Fee" or "Fee" means the fee established pursuant to this chapter. D. "Child Care Facilities Impact Mitigation Fee Fund" means the fund established pursuant to Section 3.45.040. E. "Child Care Facilities Impact Fee Nexus Study" means the study adopted by the City Council which supports the fee established by this chapter. F. "Child Care Facilities Master Plan" means the plan adopted by the City Council setting forth the facilities to be constructed with the fee. G. "Retail/Service Commercial includes facilities designed to accommodate a wide range of business establishments providing products and services to the general public including but not limited to grocery stores, restaurants, clothing stores, hardware and building supplies, beauty salons and dry cleaners. H. "Day Care Center" means a day nursery as defined in Section 25.04.240 of this Code. I. "Family Day Care Home" means both a large and small family day care home as defined in Section 24.04.307 of this Code. J. "Mixed Use Project" means a development containing any combination of /light industrial, retail/service commercial, office and/or resort/hotel development. K. "Non -Residential Development" means a light industrial, commercial/retail, mixed use, office or resort/hotel development. L. "Office" refers to buildings designed to accommodate a variety of professional users including but not limited to medical, accountants, lawyers, insurance, real estate, engineering, architecture, banking and finance. M. "Resort/Hotel" means developments providing lodging and associated services to the visiting public. 3.45.030. Establishment of Child Care Facilities Impact Mitigation Fee. A. There is hereby established a child care facilities impact mitigation fee that shall apply to non-residential development in the City and that shall be used to construct or to cause the construction, expansion or improvement of child care facilities in the City. B. The amount of the child care facilities impact mitigation fee shall be set forth in a resolution of the City Council, which may be amended from time to time. 3 ORDINANCE NO. 1101 C. The amount of the Child Care Facilities Impact Mitigation Fee shall be automatically updated on the anniversary of the enactment of this chapter by the increase in the Riverside/San Bernardino County Consumer Price Index (CPI-U: All Items) as published by the Bureau of Labor Statistics. 3.45.040. Establishment of the Child Care Facilities Impact Mitigation Fee Fund. A. There is hereby established a child care facilities impact mitigation fee fund into which the child care facilities impact mitigation fee shall be deposited. B. Money from the child care facilities impact mitigation fee fund shall be expended solely by the City to construct or cause the construction of the child care facilities identified in the Child Care Facilities Master Plan or improvements to existing facilities. . C. The Finance Director shall administer the fund and shall cause the audit and reporting requirements of Government Code Sections 66001 and 66006 to be completed. 3.45.050. Calculation and Payment of Fee. A. Pursuant to the fee resolution adopted by the City Council, the Director of Community Development shall calculate the fee applicable to any non- residential development project and determine the facility to be constructed with the fee. The decision of the Director of Community Development is subject to the appeal process set forth in Section 3.45.080. B. All required fees enacted by this Chapter must be paid to the City prior to issuance of the building permit for the development. 3.45.060. Exemptions and Credits. A. Development of a child care facility shall be exempt from payment of the fee. B. A developer may request an offset against any required fee for the construction of a child care facility, land dedication for a new child care facility, or other approved improvements or facilities. A developer must apply to the City Council with a specific proposal regarding obtaining such a credit. C. Developers or developments that have constructed a child care facility pursuant to a development agreement or other receive a credit against the required fee but shall not b the cost of the facility that exceeds the fee obligation. 11 e agreement with the City may entitled to be reimbursed for ORDINANCE NO. 1101 3.45.070. Mixed Use Projects. A. For mixed use projects, the fee shall be charged according to the mix of uses within the development to which the fee applies. For example, if a development contained 10,000 square feet of retail and 20,000 square feet of office, the total fee would be the sum of the fees applicable to a 10,000 square feet retail project and a 20,000 square feet commercial project, using the fee amount applicable to each such project type. B. Director of Community Development shall calculate the fee for a mixed use project pursuant to the provision of sub -section A above, and such determination of shall be subject to the appeal procedures of Section 3.45.080. 3.45.080. Appeal Procedure. A. Notwithstanding any other provision of this chapter, any person shall have the right, upon payment of an appropriate fee established by Section 3.45.040, to appeal to the city council the determination concerning the amount of the fee to be paid or the type of facility to be constructed. B. An appeal shall only be heard if filed with the city within ninety days after imposition of the development impact fees. C. The City Council shall have the authority to: (1) Change the amount of the fee when it finds that the amount so established is incorrect or inequitable in the specific case; and/or (2) Change the size and/or location of a facility or portion thereof. D. Any such changes shall be in conformity with the spirit and intent of this chapter. E. The appellant shall have the burden of establishing the basis for the appeal and facts to support the appellant's appeal. The Director of Community Development shall then make a recommendation to city council. Any decision by the city council shall be final. SECTION 2. The City Council hereby finds that this Ordinance is exempt from further environmental review pursuant to the California Environmental Quality Act (Pub. Resources Code, §§ 21000 et seq.) ("CEQA") because, pursuant to Section 15378(b)(4) of the California Code of Regulations, this Ordinance does not constitute a "project" because it constitutes merely the establishment of government fiscal activities potentially significant physical impact of the environment. Therefore, City staff is hereby ORDINANCE NO. 1101 directed to file a Notice of Exemption with the County Clerk within three (3) days following the adoption of this Ordinance. SECTION 3. If any section, subsection, sentence, clause phrase or word of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Palm Desert hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to any such decision or preemptive legislation. SECTION 4. The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once, in a newspaper of general circulation, published and circulated in the City of Palm Desert, California. This Ordinance of the City of Palm Desert shall be effective thirty (30) days after the date of its passage. PASSED, APPROVED and ADOPTED this day of , 2005, by the City Council of the City of Palm Desert, California by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California APPROVED AS TO FORM: David J. Erwin, City Attorney City of Palm Desert 0 BUFORD A. CRITES, Mayor 6RI011 & ASSOCIATES Final Report: City of Palm Desert Child Care Facilities Impact Fee Nexus Study Prepared By Brion & Associates With Nilsson Consulting August 2005 2641 Barndance Lane • Santa Rosa, CA 95407 • teUfax 707.570.1477 • joanne@brionassociates.com MOM & ASSOUTIS Final Report: City of Palm Desert Child Care Facilities Impact Fee Nexus Study Prepared By Brion & Associates With Nilsson Consulting August 2005 2641 Bamdance Lane • Santa Rosa, CA 95407 • teUfax 707.570.1477 • joanne@brionassociates.com bNOn &ASSOCIATIS .w Final Report: City of Palm Desert Child Care Facilities Impact Fee Nexus Study Prepared By Brion & Associates With Nilsson Consulting August 2005 2641 Bamdance Lane • Santa Rosa, CA 95407 • teVfax 707.570.1477 • joanne@brionassociates.com Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 TABLE OF CONTENTS Executive Summary I. Introduction and Purpose of Study Background Purpose of Nexus Study Study Approach Community Participation and Case Studies Requirements of Proposed Child Care Fee Report Organization II. Projected Growth and Child Care Facility Requirements Existing and Projected Demographics Existing Child Care Demand and Supply Affordability Quality Existing and Projected New Development Current Child Care Demand Future Child Care Demand M. Nexus Analysis Nexus Findings Child Care Impact Fee Methodology Child Care Facilities Master Plan Proposed Child Care Fee by Land Use IV. Funding Mechanisms, Policy Implications, and Implementation Next Steps Appendices: Appendix A: Community Meeting Appendix B: Palm Desert Child Care Provider Surveys Appendix C: Employee Surveys Appendix D: Literature Review Prepared by Brion & Associates Page W 1 2 2 2 4 5 6 7 7 7 10 11 12 14 16 20 20 22 23 25 28 28 30 34 42 63 LIST OF TABLES Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Page Table I: Existing and Future Demographics — 2004-2025 8 Table 2: Supply of Child Care Spaces by Capacity in Palm Desert, CA as of 9 August 2004 Table 3: Existing and Future Development by Land Use 13 Table 4: Total Demand for Existing Child Care 15 Table 5: Demographics of Children and Labor Force in Coachella Valley 17 Communities Table 6: New Residential and Employee Demand for Child Care in Relation 18 To New Development 2004 to 2025 Table 7: Cost by Type of Facility 24 Table 8: Summary of New Demand for Child Care and Costs 2004 to 2025 26 Table 9: Child Care Impact Fees by General Plan Land Use 27 Prepared by Brion & Associates it Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Executive Summary The City of Palm Desert is interested in adopting a Child Care Facilities Impact Fee to fund new child care homes and centers in order to meet the growing demand for child care generated by employees and commercial uses within the City. This report represents both the nexus study and technical analysis required to establish the fee as well as a variety of other information related to adopting the fee. This study addresses both current and future supply and demand conditions using available data and U.S. Census information. Existing development data and growth for the next 20 years for the City is from the recently updated General Plan. In addition to availability of child care spaces, issues of quality and affordability are also key concerns of the City. Given that many of the local jobs are lower paying jobs makes child care a difficult challenge for many families and workers. Quality child care is also a concern. By generating funding for child care facilities, this can help free up revenue that can be used to increase quality, pay hire wages and attract or retain higher skilled child care workers, and provide subsidies or lower fees for families. The amount of child care demand generated by new development is estimated using the same assumptions as existing development and the costs of providing this child care is estimated based on estimates of average costs per space by type of facility. The child care demand and costs are then estimated for each type of development expected to occur, such as new dwelling units or square feet of non-residential space. Based on direction from the City, the child care impact fee would be adopted for non- residential uses, including four general land use categories: Business Park/Industrial, Office, Hotel/Visitor, and Retail/Commercial. Total future demand from new employment uses equals 759 additional child care spaces. Overall, future demand from residential and non-residential uses equals 943 spaces. About 21 % of these spaces are in infant care, 51 % in preschool, and 28% in school age care. The City of Palm Desert plans on targeting funding for 100% of the future child care need given that there are minimal shortages currently. The City wants to ensure that the fee is not too high and yet still provides necessary funding for child care. The total cost of child care demand is $5.27 million to be funded by non-residential uses over the next twenty years. Based on the nexus analysis, the proposed Child -Care Fee is as follows: • $0.47 per square foot for business park/light industrial uses • $0.77 per square foot for hotel/visitor uses • $0.90 per square foot for commercial uses; and • $1.15 per square foot for office uses. Prepared by Brion & Associates iii 191 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 If this report is acce=ted by the City, a Child Care Fee Ordinance and Resolution would be prepared and adopted by the City Council to implement the fee. Following that, a "child care impact fee fund" would be created to track the funding. A spending plan would then need to be created and implemented. It is envisioned that the City will partner with local child care providers and non -profits to provide funding to increase the supply of child care spaces in the City and would not own and operate child care facilities. Prepared by Brion & Associates iv Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 I. Introductidby and Purpose of Study The City of Palm Desert is interested in providing funding, through impact fees for new child care homes and centers, in order to meet some of the child care demand generated by employees and commercial uses in the City. They are interested in adopting a Child Care Facilities Impact Fee (herein Child Care Fee) that will adhere to the requirements of Government Code 660000 (The Mitigation Fee Act), which dictates how and under what circumstances cities can charge new development for infrastructure and facilities. The City's new General Plan has new policies that relate to the provision of child care facilities throughout the City. Brion & Associates has been retained to develop the methodology and nexus for the impact fee, to meet with and collect data regarding child care services as well as supply and demand in the City, and to assist the City Attorney's Office in drafting the Child Care Fee Ordinance. This report represents both the nexus study and technical analysis required to establish the fee as well as a variety of other information related to adopting the fee. Child care has become an increasingly important community service that is difficult for many families to secure either due to lack of available facilities and spaces and/or because of cost. Child care is also an industry that does not generate significant profit and income to support new capital improvements and expanded facilities. It is often provided by public agencies such as school districts or non -profits and churches. City park and recreation departments often provide day care and summer camps. Many child care providers operate as non-profit organizations associated with churches and other community organizations. The City's effort to develop a child care facilities fee is well- timed. There is a significant amount of non-residential development planned in the City, which will bring in additional employees that will require child care. The new fee program will assure that the City has adequate child care services to serve new development. This study addresses the demand for child care from residential and non-residential uses. It is the City's intention to only adopt a child care fee for non-residential uses. It is the City's position that it is the job that generates the need for child care. Once parents go to work a percentage of their children will need child care. We have estimated demand from residents that live in Palm Desert but work outside Palm Desert, though this demand is not addressed in this study. The City is concerned that additional fees on residential development will further aggravate the already existing housing affordability problem in Palm Desert. This analysis ensures that non-residential uses only fund their need for new child care facilities and not demand from existing uses or residents that work outside the City. As in the past, the City may continue to fund some of the child care demand created by existing development or residents that work outside the City in order to provide affordable child care services to low and moderate income families in Palm Desert. The City intends to develop a fee program that meets the requirements of the Mitigation Fee Act, which mandates that new non-residential development pay only for the portion Prepared by Brion & Associates Final Report.- Child Care Fee Study City of Palm Desert August 9, 2005 of new public faciliV for which they generate demand. This analysis identifies the need to fund the portion of the child care facility needs that are associated with existing development, which are minimal. The City has been funding existing deficiencies through revenues generates by the Redevelopment Agency and other sources; it is assumed the City will continue this practice as funds are available. Background The City of Palm Desert has updated their General Plan, which for purposes of this study covers the period of 2004-2025. In addition to including all required elements, the General Plan incorporated a new policy and program to encourage the provision and development of child care for the City's residential and business communities. They include: 1. "Policy: The City shall encourage the availability of adequate, convenient, affordable child care that is accessible to all economic segments of the community." 2. "Program: In consultation with service providers, the City shall pro -actively participate in planning and coordination that improves and expands the availability of child care services in the community." The Community Services Department of the City of Palm Desert will be responsible for oversight of the policy and subsequent programs. Purpose of Nexus Study The purpose of this study is to provide the City of Palm Desert with the technical analysis required to establish an impact fee under the Mitigation Fee Act or Government Code 660000, which applies to all cities (both general law and chartered), counties, special districts, etc. The legislation was drafted to establish a uniform process for formulating, adopting, imposing, collecting, accounting for, and protesting fees. The key points of the Mitigation Fee Act are 1) the facility to be built with the fee relates to the project subject to the fee; and 2) the fee cannot exceed the estimated reasonable cost of the project's proportionate share of the proposed facility. In particular, the fee cannot cover the cost of providing facilities for existing development or residents and employees nor can it be used for operational or maintenance costs. This report provides the necessary technical documentation to support the adoption of a Child Care Fee for the City of Palm Desert. At present, the City does not have such a fee but has secured funding on a project mitigation basis through the environmental review process. Study Approach The nexus study first estimates the current and future demand for child care spaces from both existing and new residential and hon-residential development in the City, i.e., Prepared by Brion & Associates 2 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 demand from both reidents and employees. The study then uses Journey -to -Work data (from U.S. Census 2000) to determine the place of origin (residence) bf employees who work in Palm Desert but reside in other communities. This information allows a more accurate calculation of estimated child care demand from employees in the City of Palm Desert and this data is then used to project the impact of future non-residential development in the city. The current supply of child care currently available in Palm Desert is taken into consideration based on data from the Riverside County Office of Education, Children and Family Services, Resource and Referral Department. The demand for both current unmet demand for child care and expected demand from new development are estimated by age group, including: ■ Infants ■ Preschool ■ School Age The study then provides an overall description or master plan for the provision of the required child care facilities and includes the use of three types of child care facilitiestproviders (child care centers, large family child care homes, and small family child care homes) as a means of meeting projected demand. Average costs are assigned to each of the three types of facilities/providers to estimate a total cost of providing child care in the City over the next 20 years or the life of the current General Plan. The amount of child care demand generated by new development is estimated using the same assumptions as existing development and the costs of providing this child care is estimated based on estimates of average costs per space by type of facility.' The child care demand and costs are then estimated for each type of development expected to occur, such as new dwelling units or square feet of non-residential space. A child care impact fee is then derived for five land uses: one residential and four non-residential. The report includes the required nexus discussion of the use, relationship, need, and proportionality of the proposed fee in order to establish the fee. As discussed above, only the non-residential impact fees are proposed to be adopted by the City as a policy decision as directed by City Staff. This report and the underlying technical information should be maintained and reviewed periodically by the City to ensure the Child Care Fee's accuracy and to enable the adequate programming of funding sources. The Child Care Fee will need to be updated to the extent that improvements, requirements, costs, or development potential change significantly overtime. This review of impact fee programs typically occurs every five years in most cities. 1 These costs estimates by facility type were taken from recent child care facility costs in Palm Desert and "South San Francisco Child Care Facilities Impact Fee Nexus Study" (2001) and both adjusted for inflation and more current information on costs of family child care centers developed by the County of San Mateo Child Care Coordinating Council for their SmartKids grant program, which provided grants to FCCHs. Prepared by Brion & Associates Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Community Pat*ipation and Case Studies As part of the preparation of this study a variety of activities were conducted by the City and consultant team to gather information concerning child care. These included: 1) a survey of employees in the City of Palm Desert; 2) a community meeting with local child care providers; 3) a mail survey of child care providers in the City; and 4) a literature review of how employee demand affects overall demand for childcare in a city. The results of these efforts are summarized in Appendices A through D. A summary of these efforts is described below. The employee survey yielded a low response rate although the feedback received was taken into account. However, the provider surveys and meeting with providers provided important input and data that was used in calculating child care demand. From the meeting with child care providers, it was found that many providers are interested in expanding or opening new centers but that the costs of doing so are prohibitive given the cost of commercial space and the low profit margins in the business. The impact fee can only address the provision of new spaces and new facilities. However, to the extent that the fee helps providers develop new spaces or centers, it will free up other income and profit that could hopefully be used to increase salaries and provide better benefits to attract staff or provide quality enhancement to the services offered to children. The City may also require that businesses that receive funding from the City provide a certain number of spaces that are affordable or target infants or children with special needs, for example. A survey was sent out to employees of the Marriot in Palm Desert as well as public employees of the City of Palm Desert, two of the largest employers in the City. The purpose of this survey was to find out more about the potential child care demand of employees in the City, and the survey was sent in both English and Spanish. Of over 2,000 surveys which were sent out, only 44 responses were received (a response rate of approximately 2%). Of the 44 employees who responded, only 6, or 14%, reside in Palm Desert. Approximately 16% of the respondents were single -headed households and 48% had more than one employed adult in the household. About 11% of the respondents earned less than $35,000 per year, but 34% earned over $55,000 per year. On average, $135 per week was spent per week per child for child care. Approximately 18% of respondents said that one of the reasons they did not receive all of the child care they required was because the cost of care was too high. The mail survey of local child care providers was very useful. Of the approximately 24 FCCHs and 28 Child Care Centers in the City of Palm Desert, 11 providers responded to the questionnaire or a 21 % response rate, which is a good response for a mail survey. Of the 11 respondents, 9 of the providers.are interested in expanding their capacities and are also interested in providing after -school tutoring programs and/or subsidized programs to Prepared by Brion & Associates Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 low-income farnilie About half of the respondents said they would be interested in opening new centers and would be interested in a low -interest loan from the City, and 8 of the 1 I respondents said they would be interested in a City -sponsored grant program (see Appendix B). The meeting with child care providers in the City also provided important direct feedback both during the meeting and through questionnaires that were mailed out with the meeting agendas and invitations. Summaries of the meeting results and the meeting materials are provided in Appendix A. As the City is interested in assessing an impact fee on new non-residential development, a literature review was conducted to see how other jurisdictions have dealt with this issue. We found very little literature that addresses employee demand. Of the articles that do mention employee demand, no methodology for calculating employee demand was found and we have relied on the outcome of our surveys and Journey -to -Work census data in order to calculate the demand generated by employees in the City of Palm Desert (see Appendix D). Requirements of the Proposed Child Care Fee The proposed Child Care Fee, if approved, will need to be enabled by adoption of a new City Ordinance. The enabling Ordinance would allow the City to adopt a fee schedule for the Child Care Fee, consistent with supporting technical analysis and findings. Subsequently the fee would be increased either annually or bi-annually without amending the enabling Ordinance. These adjustments are usually based on inflation or a local construction cost index used by the Public Works Department. Annual Review As part of the fee program, the City must make the following information available to the public 180 days before the last day of the fiscal year. This information includes: 1. A description of the type of fee in the account. 2. The amount of the fee charged by land use. 3. The beginning and ending balance of the fund. 4. The amount of fees collected and any interest earned. 5. Identification of the improvements constructed. 6. The total cost of the improvements constructed. 7. The fees expended to construct the improvements. 8. The percent of total costs funded by the fee revenue. If sufficient fees have been collected to fund the construction of an improvement, the agency must specify the approximate date of construction of that improvement. Given that development activity can be volatile, the City will need to monitor development activity, the need for child care facilities, and the adequacy of the fee revenue and other available funding. The cost of monitoring and the updates are included in the Prepared by Brion & Associates 5 Final Report: Child Care Fee Study City of Palen Desert August 9, 2005 administrative cost factor added in the fee program (i.e., 5.0% of total facility costs associated with new development). Credits and Reimbursements The Child Care Fee Ordinance will allow for certain fee credits and reimbursements under certain circumstances. Fee credits and reimbursements for constructing a child care center may be allowed and will be reviewed by City staff and the fee program administrator, and be subject to City Council review and approval. A credit against a fee obligation could be granted for the provision of a child care facility, land dedicated for a new child care facility, purchase of a portable or modular building for child care, provision of commercial space for use as a child care facility for an extended period of time at below market rents, or other relevant improvements or facilities. Developers or developments that have constructed a child care center based on the requirements of a Development Agreement or other negotiations with the City would receive a credit against their required child care fees but would not be reimbursed for the cost of the facility that exceeds their fee obligation. Surplus Funds The local agency must perform a yearly review for the portion of the fee revenue that has not been spent and is uncommitted for five years. If adequate funding has been collected to fund a project, an approximate date must be set for the construction of the project. If the City does not spend the fee revenue on qualified projects within five years and does not reestablish the need for the fee and the use of the fee revenue after five years, and if the administrative costs of a refund do not exceed the refund itself, the City must refund the fee revenue. This refund usually goes to the current property owner of the project or property from which the fee was collected. Report Organization This study includes four chapters, including this introduction and background discussion. The next chapter includes a discussion of current and projected development and child care need and supply. Chapter III provides the nexus analysis and estimate of the child care impact fee by land use. Chapter IV provides a discussion of the policy implications of the new fee program, proposed funding mechanisms for child care facilities, and other implementation issues. The report includes several technical appendices with background or detailed information. Prepared by Brion & Associates Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 .�Ww -r_ II. Projected Growth and Child Care Facility Requirements This chapter discusses the current and projected development in the City, in terms of residents, employees, and land use. It also provides a discussion of the current status of child care in the City and an estimate of current unmet need for child care spaces by age group. The information presented in this chapter is taken from the City's current Draft Comprehensive General Plan, Draft Environmental Impact Report (EIR) and current land use data from the City's General Plan update. The amount of child care that is needed to serve existing and new development is estimated based on data provided by the Riverside County Office of Education, Children and Family Services, Resource and Referral Department. Demand for child care is estimated for five land uses (one residential and for non-residential) included in the General Plan and from population and employment by age group or type of child care, using Journey -to -Work data which shows the place of origin or residence for employees in Palm Desert. Existing and Projected Demographics The City currently has about 44,800 residents and about 34,800 dwelling units as shown in Table 1. The City's current employment base is about 20,700 jobs. The City's General Plan projects an addition of about 11,000 new residents over the next 20 years, which will be housed in about 5,000 new housing units. This represents a 15% increase in housing units as compared to existing conditions. New residents in the next 20 years will represent 20% of the population at buildout in 2025 (see Table 1). The City expects to add a significant number of new jobs over the next 20 years compared to residents, as shown in Table 1. A total of about 19,500 new jobs are forecast in the City, which represents a 94% increase in overall jobs. New jobs in the City will represent about 49% of total employment at buildout of the General Plan or at 2025. Thus, the City is relatively built out from a residential perspective but still has significant growth potential from a non-residential standpoint. Overall, the City expects to double its supply of non- residential development though buildout of the General Plan. This could change if the City adopted higher density development standards for residential development than is currently included in the General Plan. Existing Child Care Supply Currently there are a total of approximately 1,400 licensed child care spaces in the City of Palm Desert, according to August 2004 data from the Riverside County Office of Education (see Table 2). Of these total spaces, 66% or approximately 942 spaces, are for preschool age children. Infant and toddler care accounts for approximately 9% of available spaces and school age is approximately 25%. Family Child Care Homes (FCCHs), which can be licensed for either 8 or 14 children, currently provide Z Journey -to -Work data is based on data from the 2000 U.S. Census and was compiled and provided by the Southern California Association of Governments (SCAG). Prepared by Brion & Associates 7 Table 1 Existing and Future Demographics - 2004 to 2025 Childcare Facilities Impact Fee Naas Study City of Palm Desert Total New Growth Projected Growth At as % of Total Existing 2004-2025 Buddout at Buildout Item Conditions Amount % Change 2025 by Category 2004 Population (1) 44,812 (1) 10,959 (2) 24% 55,771 20% Housing Units 34,782 (3) 5,050 (4) 15% 39,832 13% Employment (3) 20,713 (5) 19,534 (6) 94% 40,247 49% (1) From Department of Finance, E-5 Report; population estimate as of l/l/2004. (2) Based on report persons per household factor of 2.17 (3) From General Plan as provided by Planning Department. The City has a number of vacation units and second homes, which are not occupied year around. (4) New units based on mid -point of projected General Plan residential development. (5) Based on wage and salary employment from EDD for May 2004 and increased by 10% to account for self-employment. (6) Based on estimated employment from new development as calculated in Table 2. Sources: City of Palm Desert General Plan; EDD; DOF; Brion & Associates. M Table 2 Supply of Child Care Spaces by Capacity in Palm Desert, CA as of August 2004 Childcare Facilities Impact Fee Nelms Study r City of Palm Desert Infants Toddlers Preschool School Age Total Capacity # of 0-17 months 18-23 months 2-5 years 6-13 years 0-13 yrs Type of Facility Licenses Total Child Care Center 18 6 48 799 259 1,112 Occupied Spaces 5 35 799 259 1,098 Total FCCHs 30 30 43 143 90 306 Occupied Spaces 7 17 70 42 136 All Child Care Facilities 48 36 91 942 349 1,418 Occupied Spaces 12 52 869 301 1,234 Percent Distribution of Supply 3% 60/a 66% 25% 1000/0 Sources: Riverside County Office of Education; Brion & Associates Z Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 approximately 28%4f total available spaces. Licensed child care centers provide approximately 1,100 total spaces. There are 127 licensed infant care spaces in Palm Desert and 349 school age spaces. Affordability Child care in the City of Palm Desert, like child care throughout the country, faces issues in terms of affordability. Many parents cannot afford the high costs of child care, especially if they have multiple children, because many of the jobs in Palm Desert are low paying service and retail jobs. One reason the price of child care is so high is due to staff costs. Labor costs comprise approximately 85% of the total cost of child care; thus, it is a very labor intensive business as compared to other businesses. In order to hire quality child care providers, a reasonable salary must be paid. In general, child care workers have one of the highest turnover rates because child care is one of the lowest paid careers. To provide quality child care, where children are in an environment that is educational and stimulating, child care workers must be trained and educated, therefore demanding higher salaries. Infant care tends to be more expensive because the ratio of staff to child is lower for infants than for older children. Infant care requires one staff per four infants either at a center or family child care home. At a family child care home, serving infants limits the amount of children you can accept, and as the numbers are already limited by licensing, most family child care homes do not want to serve infants because it is not a financially viable option. Other affordability issues are related to the high costs of licensing and changing programs. For example, if a small family child care home which is currently allowed to serve up to 8 children wants to expand to become a large family child care home and serve up to fourteen children, they may have to make some expensive upgrades and fire safety improvements to their facilities. Given that child care is generally a low -profit business, these fees create barriers in the provision and affordability of child care. Also, affordability becomes an issue if a center changes ownership and must undergo re - licensing and other criteria in order to operate. The necessary time and costs of getting a center up to code can be financially burdensome as well. One example of this is the recent closing of a center in Palm Desert that changed ownership, and the new owner had to spend nearly a year upgrading the building to get it up to building and fire code in order to become re -licensed. During this time, all of the previous clients were lost because they could not wait one year for this process to be completed. The new owner was unable to get enrollment numbers high enough and was forced to go out of business. However, this means there is a now a building in Palm Desert that is already up to code and ready to be licensed for child care, but there is no one to run it. In Palm Desert, the Head Start program run by the school district and YMCA programs have waiting lists because they are able to offer scholarships and other financial support to families. Up to 98% of children at the YMCA receive some sort of scholarship for their care. Some of the private and faith -based child care centers have some vacancies as a result of affordability issues. The owner of a private center has said that more and more Prepared by Brion & Associates 10 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 families are using State and federally funded preschool programs because of affordability issues, especiallyngle-parent households. Given the waiting lists at subsidized programs run by the school district and YMCA programs, one option for the City of Palm Desert would be to build new child care facilities near schools or as joint projects with the school district on school property in order to address some of the demand. Locating facilities near schools or on a school site also eliminates issues surrounding transportation from school to child care, in addition to diminishing travel time for parents who might have to drive to multiple destinations. Quality Another issue regarding child care in the City of Palm Desert is that of quality. Most of the child care businesses in Palm Desert and the Coachella Valley stay in business for an average of two years, which is an indicator of poor quality according to Susan Shepardson, Child Care Coordinator for the Coachella Valley Child Care Coalition. While all centers and FCCHs are licensed in order to operate, only several FCCHs and one of the centers are accredited 3 Some centers say they are trying to get accredited but there is a wait of over one year. Additionally, there are no corporate child care centers in the entire Coachella Valley. There tend to be vacancies in some family child care homes in Palm Desert. One contributing factor is that some homes are licensed for up to 14 children but choose to serve fewer children for personal reasons or they choose not to serve infants. Because the County does not take into consideration the number of spaces that a family child care home chooses to serve instead of how many it is licensed to serve, there often appear to be higher numbers of vacancies than actually exist. Another reason for vacancies in family child care homes is quality. There are many family child care homes that are unable to fill to their desired capacity while others have long waiting lists and fill any openings within a day because they offer high quality care. In summary, the provision of child care services is a complex subject and the role of development impact fees, which is the focus of this study, is limited in terms of addressing affordability or quality directly. However, the concept is that if the cost of facilities or space is reduced this would free up other income to address affordability and quality issues, which is also a City concern. The provision of new clean space that meets State requirements does address issues of quality in terms of facilities. Having new equipment also addresses issues of quality. While fees can only be spent on new facilities and spaces at existing child care centers and homes, having additional funding with which to work is critical to addressing all the issues facing child care in Palm Desert. 3 FCCHs are accredited by the National Association for Family Child Care (NAFCC) and centers are accredited by the National Association for the Education of Young Children (NAEYC). Prepared by Brion & Associates I I Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Existing and Pr*cted Development As discussed earlier, the City expects to add a significant amount of new jobs and some additional residential development. The Child Care Fee is based on a fee by type of land use, such as residential dwelling unit or square foot of non-residential space by type. For this reason, an estimate of existing and projected development in the City by five land use categories has been compiled. Table 3 summarizes existing development and future development potential by land use. Currently, the majority of the non-residential development is resort/hotel uses, with over 7.2 million square feet existing. This is followed by commercial/retail uses at approximately 4.9 million square feet. In total the City has approximately 15.7 million square feet of non-residential space. A total of approximately 7.3 million net additional square feet of non-residential uses is planned in the City of Palm Desert. Future planned development calls for over 2.8 million additional square feet of retail/commercial space and over 2.7 million additional square feet of business park/light industrial uses. Approximately 1.5 million additional square feet are planned for resort/hotel uses and very little office space is planned or 236,000 square feet. Future child care demand is based on these development projections by land use and employment density factors. Land Use Definitions The following describes the general definitions for each of the land use categories used in the Child Care Impact Fee calculations. Because the City of Palm Desert is interested in charging a Child Care Impact Fee for non-residential development, all residential uses have been grouped into one category and non-residential land uses have been broken down by type in order to calculate the fee. The definitions below are based on the City of Palm Desert Draft Comprehensive General Plan 2003. 1. Residential: This category refers to all residential development regardless of density and is measured in terms of dwelling units. 2. Commercial/Retail: Generally refers to establishments and development primarily engaged in the sale of commonly used goods and merchandise. These types of establishments include, but are not limited to: shopping centers, big box retail and department stores, eating and drinking establishments, commercial recreation, service stations, automobile sales and repair services, entertainment establishments and theaters, eating and drinking establishments, book stores, souvenir shops, florists, stationary stores, camera sales and photo processing, specialty clothing stores, furniture stores, and drug stores. Prepared by Brion & Associates 12 O O O M O et y+ R W O O O vw O N q tS O � N O V d z Y Ui rll� n O Ham t7' o ¢ o t-- O p O z O O N An M O O Z M M M N 00 00 00 ii t- .-. h q a � t Y Q' 0 0 Q OO « C CD o z N C Y .� Z N •-• M 'fl N O 'fl to O tS N N vj .a E 10 z Q o ¢ o }}_.. W O z CD O z N a tT Mrn 0i m E p bCC C ca OCD Q o O o M CD�pQ ¢ QJ y O « w O \ z O M sf O Ncn ci N U� q b40 w ti v vo�� .4 N O O� N � . y U 00 .14 o0 C cl oMo ti U> °� y cn•`� e}ONen [ 1 N •b C� y a0 ,O •a T� a� OS W p T p •'qU. t: ,.a H > 3 u aCA c o r! C7 .. q u Y G u ai rs Y ., y � E o >, O C s �cia =z a s U o E w AC E LY. Y tY Y C y "' p �" G C YasR � Y 2 A. _. as 0 7 o p u 4.ci G W y d > F• p, o o a r Y` a 8 Q Or A o r` en o Q A� aCOO m C'X) �? c U v a 3 0 o °S �cn ems¢ .a F w u A rye w W w r:. F F vO 13 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 3. Office: These uses provide convenient professional services to surrounding residents and businesses and are usually along arterial roadways, integrated with commercial development, and as stand-alone business parks. 4. Business Park/Light Industrial: This land use allows for a flexible mix of office, service commercial, wholesaling and light manufacturing uses. Examples include professional and medical offices to copy and printing shops, business and office supply stores, and paint and tile and cabinet shops, clean manufacturing operations, and warehousing and distribution facilities. 5. Resort/Hotel: This category refers to land to be developed for resort uses, including hotels and associated uses, timeshare projects, and associated recreation and open space amenities, including golf courses, tennis courts, and pools and spas. These land uses are geared to the visiting public and also provide important venues for community meeting and events. City staff would determine which land use category applies to a particular proposed project if there is some confusion as to which category is appropriate. Mixed use projects would be charged according to their mix of use. For instance if a project had 10,000 square feet of retail and 20,000 square feet of office above, it would be charged the retail and office fee accordingly. Current Child Care Demand Currently, there is a shortage of child care relative to demand. It is estimated that in the City of Palm Desert approximately 87% of current demand from residents and employees is met by existing supply, as shown in Table 4. This is a very high rate compared to other cities in California, which reflects the City's on going efforts to address child care and provide funding. By age group, there is a shortage of available child care spaces for infants with 45% of demand being met. For preschoolers, 98% of demand is met by existing supply, with a shortage of only 19 spaces. For school age children approximately 88% of demand is being met. Based on the data, there are approximately 1,418 spaces available and an overall shortage of approximately 219 spaces (see Table 4). These numbers include resident demand using census data on labor force participation rates. For employee demand the analysis uses Journey -to -Work data to estimate the number of children ages 0-5 years old who live in surrounding Coachella Valley Communities and have parents that work in Palm Desert. School age children with parents who work in Palm Desert but reside elsewhere are expected to demand care near their homes and schools, and not in Palm Desert where their parents are employed. Prepared by Brion & Associates 14 Table 4 Total Demand For Existing Child Care Childcare Facilities Impact Fee lWftus Study City of Palm Desert Item Birth to 23 2 to 5 or 6 to 13 or months or Preschool School Age Assumptions: 1.6% 3.4% 4.0% Existing Child Care Demand Estimated Number of Children (1) 701 1,541 1,793 Labor Force Participation (2) 53% 53% 59% Children with Working Parents 372 817 1,060 Percent of Children Needing Licensed Care (3) 37% 80% 38% (5) Total Resident Demand for Child Care Spaces 137 653 397 Employment Demand for Child Care (3) Total (or Average) 4,035 56% 2,248 na 1,188 Demand from Employees Residing Outside of PD (6) 384 384 - 768 Percent of Children Needing Licensed Care 37% 80% 38% 59% Total Employment Demand 142 307 - 449 Total Existing Resident and Employee Demand 279 961 397 1,6371 Available Family Child Care Home Spaces 73 143 90 306 Available Child Care Center Spaces 54 799 259 1,112 Current Number of Child Care Spaces 127 942 349 1,4181 Surplus/(Shortage) of Child Care Spaces (152) (19) (48) (219)1 Percent of Demand Met by Supply 45% 98% 88% 87% (1) Ratio of children by age group as percentage of total population calculated by proportions from U.S. Census 2000 data (see i (2) Labor Force Participation Rates from the 2000 U.S. Census refer to children who live in two -parent households where both parents work, or children in single -parent households where the parent is employed. (3) Not all children with working parents are assumed to need licensed care: the assumptions under each age label are used. The remaining children are assumed to be cared for by family members and unlicensed care. The Preschool percentages are based on a detailed study of child care demand for Santa Clara County "A New Assessment of Child Care Need for Children under 5 in Santa Clara County" prepared for First 5 by International Child Resource Institute (September 2002) and then adjusted for local demand conditions. (4) Based on census data, including labor force participation data and journey to work data; represents number of 0-5 children of working parents that work in Palm Desert and live in Coachella Valley communities. School age children are assumed to have child care new their schools and place of residence. (5) Assumes 50% of 6-9 year olds and 25% of 9-13 year olds need licensed care. (6) Demand from employees who reside in Palm Desert is captured under resident demand, including school age children. Sources: City of Palm Desert; Riverside Research & Referral Agency; Brion & Associates. 15 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Future Child Care Demand In calculating future demand, the same assumptions and relationships are employed that were used to estimate existing demand. The same percentages for children by age group are applied to estimated population growth and employee demand is calculated at the same percentage based on the number of employees per square foot by type of future planned non-residential development and by using census data as described further below. Table 5 presents the data used to estimate employee demand for child care. In order to calculate the demand generated by employees in Palm Desert, Journey -to -Work data from the 2000 U.S. Census was used to determine the number of people in surrounding Coachella Valley communities who work in Palm Desert and have children in the 0-5 age group. The percentages of population by age and labor force participation rates from each community were applied to the number of residents from each community that work in Palm Desert. This allowed an estimate of the number of children in each community with parents working in Palm Desert to be made. As shown in Table 5, a total of 768 children in the 0-5 age group, currently have parents that work in Palm Desert but live elsewhere in the Coachella Valley. Approximately 239 children 0-5 in age have parents that live and work in Palm Desert. These existing ratios are applied to future employment projections for Palm Desert in order to estimate future demand by residents that live outside Palm Desert but work in the City. Not all of these children are assumed to need licensed care in Palm Desert. On average about 51% of children need licensed care, as shown in Table 6 under "percent of children needing licensed care." These figures are the same figures used for existing child care demand as discussed above and as footnoted in Table 6. The other 49% in each age group were expected to not need licensed care, to have care near their homes, or use friends and relatives for care. Of the total number of children 0-5 with parents working in Palm Desert that need licensed care, 50% are assumed to be infants/toddlers and 50% preschool age children. No demand was estimated for school age children who reside in surrounding communities and have parents employed in Palm Desert as they are assumed to require care near their school and home. The analysis estimated that 543 school age children need care from parents that will live and work in Palm Desert over the next 20 years. Table 6 summarizes future demand for child care in Palm Desert by age group. In order to calculate child care demand from residents that live in the City but work outside the City, data from the 2000 U.S. Census which provides population by age and labor force participation rates is used. The same demographic relationships that currently exist in the City are forecast in the future. For residential demand, an estimate of the number of children by age category is made (i.e. infant, preschool, or school age) based on existing demographics. 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UUC��O�ri 3S•= v� 17 IF, Table 6 New Residential and Employee Demand for Child Care 2004 to 2025 Childcare Facilities Impact Fee Nexus Stud$L City of Palm Desert Demand for Child Care Spaces by Age 2005 to 2025 Item Population/ Birth to 23 2 to 5 or 6 to 13 or Total Demand Employees months or Preschool School Age (# of spaces) 2025 Future Residential Demand For Child Care Estimated Population Growth (1) 6,969 109 240 279 628 Labor Force Participation Rates 53% 53% 590/0 56% Children with Working Parents (2) 58 127 165 350 Percent of Children Needing Licensed Care 37% 800/0 38% 53% Total Future Demand from Residents (3) 21 102 62 185 Future Employment Demand for Child Care Commercial/Retail Uses (6) 9,453 48% 230 230 263 722 Office Uses (6) 1,009 5% 24 24 28 77 Business Park/Light Industrial Uses (6) 4,715 24% 115 115 131 360 Resort/Hotel Uses (6) 4,357 22% 106 106 121 333 Future Demand from Employees (6) 19,534 100% 474 474 543 1,492 Percent of Children Needing Licensed Care (7) 37% 80% 38% 51% Total Future Employee Demand for Child Care 176 380 204 759 TOTAL CHILD CARE DEMAND 2004-2025 197 481 265 943 % Future Demand 21% 51% 28% 100% City Funding of Total Demand (8) 100% 197 491 265 943 (1) Ratio of children by age group as percentage of total population calculated by proportions from U.S. Census 2000 data (see Table 4). Population is adjusted downward by 36.4% to account for residents that also work in Palm Desert based on current journey to work data as shown in Table 5. These residents are counted in the demand from employees, shown below. (2) Based on LFPR from Census 2000 (see Table 4-Exisiting Child Care). (3) Based on percentages of 37%, 500/o and 38% respectively by age group. Not all children with working parents are assumed to need licensed care: the assumptions under each age label are used. The remaining children are assumed to be cared for by family members and unlicensed care. The Preschool percentages are based on a detailed study of child care demand for Santa Clara County "A New Assessment of Child Care Need for Children under 5 in Santa Clara County" prepared for First 5 by International Child Resource Institute (September 2002) and then adjusted for local demand conditions. (4) These numbers are based on US Census 2000 Journey -to -Work data; children 0-5 whose parents work in Patin Desert are expected to need care while school age children are expected to demand care in the city where they live and attend school. These numbers are based on average age distribution of children 0-5 in the Coachella Valley communities, 50% are 0-2 and 50% are 3-5 based on US Census data. (5) This number for school age children reflects only the school age children of employees who live in Palm Desert. (6) Number of employees based on average employee per square foot, as according to Draft EIR (see Table 2). (7) Not all children with working parents are assumed to need licensed care: the assumptions under each age label are used The remaining children are assumed to be cared for by family members and unlicensed care. The Preschool percentages are based on a detailed study of child care demand for Santa Clara County "A New Assessment of Child Care Need for Children under 5 in Santa Clara County" prepared for First 5 by International Child Resource Institute (September 2062). (8) City of Palm Desert proposed to fund 100% of potential total demand. Sources: City of Palm Desert; Riverside Research & Referral Agency; Brion & Associates. Sources: City of Patin Desert General Plan; Brion & Associates. 18 Final Report. Child Care Fee Study City of Palm Desert August 9, 2005 of demand by thenumber of children in a specific age category, demand for child care can be calculated. As with existing demand not all children who need child care require licensed care as some have family members or others to take care of them 4 The same assumptions uses in the existing demand estimates are applied to future demand. Total future demand from new employment uses equals 759 additional child care spaces (see Table 6). Overall, future demand from residential and non-residential uses equals 943 spaces. About 21 % of these spaces are in infant care, 51 % in preschool, and 28% in school age care. The City plans on targeting funding for 100% of the future child care need from non- residential uses given that there are minimal shortages currently. The City also assumes that much of the demand comes from workers and families that are in low -wage jobs in the City and affordable child care is important for these workers and families. The City wants to ensure that the fee is not too high and yet still provides necessary funding for child care. 4 The ratios in this study were based on numbers from a detailed study of child care demand for Santa Clara County entitled "A New Assessment of Child Care Need for Children Under 5 in Santa Clara County" prepared for First 5 by the International Child Resource Institute (September 2002). Prepared by Brion & Associates 19 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 M. Nexus Analysis This.chapter presents the analysis and supporting technical information needed to establish the City of Palm Desert Child Care Impact Fee. This analysis follows the requirements of the Mitigation Fee Act and establishes new development's fair share of the total demand for new child care facilities over the next 20 years or life of the General Plan. Nexus Findings This section describes the findings that are necessary to establish the nexus between the need for the Child Care Fee, the amount of the fee, the need for the facilities to be funded with the fee, and new development as required by the Mitigation Fee Act, which specifies that the City address the following issues: 1. The purpose of the fee and related description of the facilities for which the revenue will be used; 2. The specific use of the fee; 3. The reasonable relationship between the facility to be funded and the type of development charged the fee; 4. The need for the child care facility and the type of development; and 5. The reasonable relationship between the amount of the fee and the proportionality of the cost specifically attributable to new and existing development. Each of these topics is addressed below. Purpose of Child Care Fee The purpose of the Child Care Fee is to fund required capital improvements to create new child care facilities or new spaces at existing child care facilities in the City of Palm Desert that will be available to serve new employees that require child care in the City. Demand from residential uses will continue to be met through existing programs and funding from the City. Use of Child Care Fee The City will use the fees to constrict new child care facilities or provide funding for the expansion of existing child care facilities in the City. This study identifies five potential options for creating new child care spaces in the City and the fee revenue that will be used to fund these options over the next 20 years, including: 1. New centers 2. Expansion of and improvements to existing centers 3. New small family child care homes 4. New large family child care homes Prepared by Brion & Associates 20 -%. Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 5. Expansion and/or improvements at existing family child care homes from 8 to 14 spaces The Child Care Fee revenue may be combined with other City revenues to fund new child care facilities. Relationship of the Child Care Fee to New Development The demand for new child care spaces is based on the population, land use, and employment growth the City expects over the next 20 years. The fee revenue will be used to fund new non-residential development's fair share of required child care facilities and/or new spaces at existing facilities. The analysis in Chapter II presents the relationships between new non-residential development and the need for child care. New development generates new employees in Palm Desert that will require child care spaces. Currently there is a small existing shortage of quality child care spaces in the City. New development will further aggravate this situation. The purpose of the child care fee is to ensure that the current supply of child care spaces is not diminished as new development occurs. In particular, many of the new jobs to be created in Palm Desert are low paying jobs, and the employees cannot afford child care. Providing affordable child care is a key concern and goal of the City and the City's assistance in funding child care spaces helps offset other costs that can address quality and affordability issues which are equally as important as discussed in Chapter H. Need for Child Care Fee Each new non-residential project that is developed in the City of Palm Desert will generate new employees. Through outreach measures discussed earlier, it is clear to the City that there is a need for additional child care spaces in the City. This need has been expressed as a new policy in the City's General Plan. Currently, there is a small shortage of about 219 child care spaces in the City. New development will add to this unmet demand for child care and aggravate the existing shortage of child care. The Child Care Fee will fund only new non-residential development's share of required child care facilities and spaces. Proportionality of Child Care Fee The City of Palm Desert has established a goal to fund 100% of the total potential demand for licensed child care in the City generated from new non-residential development. It is assumed that the remaining demand will be met by unlicensed child care providers, relatives, friends, or by parents working alternate shifts. This represents a 67% increase in the provision of child care spaces from existing conditions in the City (943 new spaces in relation to existing 1,418 spaces). New non-residential development is being assessed fees only for their proportional share of the cost of providing new child care facilities and spaces in the City, assuming the same cost and demand factors that are applied to existing development. Overall, based on the amount of new non-residential development (i.e., new employees) expected to occur in the City over the next 20 years, Prepared by Brion & Associates 21 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 new development YqD pay for 80% of the cost of meeting the City's goal of providing child care facilities. As resources allow, the City will continue to provide funding for existing shortages and residential uses as has been the practice over the last several years. Child Care Impact Fee Methodology The following describes the overall methodology used to estimate a new child care impact fee for the City of Palm Desert. The methodology follows and is consistent with the requirements of Government Code 66000, which requires that impact fees be based on the nexus between the demand for and cost of the facility and new development's fair share of the facility relative to existing development. That is, only the cost of providing new development's share of a required public facility can be included in the fee. The amount of existing development and new development is estimated based on information from the current Comprehensive General Plan (see Chapter M. This development is expressed in terms of population, housing units, and employment, and development by type of land use such as office development and low density residential development (see Table 1 and 3 in Chapter II). The amount of child care that is needed to serve existing development is estimated based on U.S. Census 2000 data. By evaluating the size and nature of the labor force and the number of children in a specific age category relative to the labor force, demand for child care is calculated. This methodology takes into consideration a number of factors, including that not all children who need child care require licensed care as some have family members or others who are able to take care of them while their parents work. The demand is based on current demographics, labor force participation rates of working parents, and demand factors for licensed child care by age group. Adjustments have been made to the data to reflect current estimates of population and employment. Demand for child care is estimated for five land uses included in the Comprehensive General Plan and from population and employment combined by age group or type of child care (see Table 3). About 9% of the population is assumed to be children between the ages 0 to 13, which require child care, i.e., with working parents (see more detailed discussion in Chapter In. This figure is much lower than most communities which reflects the high percentage of retirees living in Palm Desert; most communities children under age 13 represent about 20% of the population overall. To estimate employee demand for child care in Palm Desert, first the labor force participation rates were obtained for the surrounding Coachella Valley communities (see Table 5). Then number of children between 0-5 years and 6-13 years with working parents (this applies to two -parent households where both parents are employed or a single parent in a single -parent household is employed) was determined. A percentage of children in each community between 0-5 years and 6-13 years who require licensed child care was calculated based on this information. This percentage was then applied to the number of workers in surrounding communities which are employed in the City of Palm Desert, based on Journey -to -Work data from the U.S. Census 2000. This allows estimates of the number of children requiring care to be made for each community Prepared by Brion & Associates 22 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 surrounding Palm Dessert. It is assumed that employees' children in the school age group a are in day care near their school or place of residence (see more detailed discussion in Chapter Ill). Thus, school age demand from employees working in Palm Desert is excluded from the Study. A large portion of Palm Desert employees live elsewhere in the region because the jobs in the City tend to be low -wage jobs and the cost of housing in Palm Desert is high. Much of the housing in the City is oriented towards retirees and vacation homes and most of the employment is in the low -wage retail and service sectors. An estimate of new development potential by land use has been compiled from data from the Draft Comprehensive General Plan and current development proposals in the City (see Table 3 in Chapter II). The demand for child care from new development, both residential and non-residential development, is made using the same assumptions used to estimate demand from existing development, which is explained at the end of Chapter II (see Table 6 in Chapter 11). Demand for new child care spaces is estimated using the same factors and methodology that are used to calculate demand for existing development as discussed above. Thus, the same assumptions and methodology is applied to new and existing development, based on existing conditions in Palm Desert and existing research on the need for child care. It is assumed that the City's Child Care Master Plan will target provision of facilities for 100% of the total non-residential demand for child care at buildout of the General Plan, which equals 943 additional spaces (see Table 6). Child Care Facilities Master Plan The total demand for child care spaces by age group is then allocated to five types of potential child care facilities (see Table 7). This range of options represents the various methods the City can use to provide new child care spaces. Each of these options has a variety of pros and cons, including that some are more expensive than others. The amount of spaces proposed for development in each category is based on the appropriateness of each type of facility to serve each age group, such as infants or school age children. An assessment was also made as to how many spaces could be potentially added to existing centers. Not every existing child care center or FCCH in the City is assumed to expand over the next 20 years. Table 7 shows a breakdown of the total demand for 943 spaces and includes the following: 1. New centers — 531 spaces 2. Exnansion of existing centers — 177 spaces at existing centers. 3. New small family child care homes — 106 spaces. 4. New large familv child care homes — 106 spaces. 5. Exnand from small to large familv child care home — 24 spaces. Prepared by Brion & Associates 23 Table 7 Cost by Type of Facility Childcare Facilities Impact Fee NeiM Study City of Palm Desert Average Cost per Space by Facility 6 to 13 or School Type of Facility or Program Type (1) Birth to 2 or Infant 3 to 5 or Preschool Age Totals Target No. of Spaces 1. Build New Centers: Spaces 111 271 149 531 Costs (2) $10,000 $1,107,781 $2,706,861 $1,492,523 $5,307,166 2. Expand at Existing Centers: Spaces 37 90 50 177 Costs $5,000 $184,630 $451,144 $248,754 $884,528 3. New Small Family Child Care banes: Spaces 27 53 27 106 Costs (3) $250 $6,634 $13,268 $6,634 $26,536 4. New Large Family Child Care We Spaces 15 61 30 106 Costs (4) S286 $4,332 $17,330 $8,665 $30,327 5. Expand FCCliom 8 to 14: Spaces 27 53 27 24 Costs (5) $667 $17,691 $35,381 $17,691 $70,762 Total Spaces 216 528 292 943 Total Costs na $1,303,377 $3,188,602 $1,756,576 $6,248,556 Average Cost by Age Group na $6,036 $6,042 $6,220 $6,623 (1) Costs of new child care centers are based on the cost of a 100-space child care center built in Palm Desert. Costs of FCCHare based on costs from South San Francisco (2001) and ad*ted for inflation at 1.068 (2) t is assumed that 75% of child care spaces will be in centers based on current supply and demand. C]the spaces at centers, 25% of additional spaces are expected to be expansions at existing centers and 75% in new centers (3) Assumes 64 new FCCIJ cost based on approximation of $2,000 to set up a new small family child care home for 8 children. License BQuirements small FCCH 2 4 2 8 25% 50% 25% 1000/0 (4) Assumes 37 new large FCCIJ cost based on approximation of $4,000 to set up a new large family child care home for 14 child ren. License Hpikements large FCCH 2 8 4 14 14% 57% 290/6 1000/0 (5) Assumes 19 existing homes expand; cost based on approximation of $4,000 to expand from a small to a large family child care home. Sources: City of Palm Desert; Brion & Associates 24 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 Separate cost estimates for each type of child care space were developed based on a variety of sources including construction costs and budgets for recent child care projects, etc.5 These average cost factors were applied to the demand for new spaces by facility to estimate the overall cost of all required facilities, which equals about $6.3 million (see Table 7). The cost of creating new child care, based on the distribution of child care by type of facility, equals about $6,623 per space overall. This reflects the high cost of creating new child care spaces combined with the low cost of providing fqr FCCHs, which have a relatively low cost per space (see Table 7). Table 8 summarizes the child are demand by type of space and the cost of providing for those spaces, which totals $6.3 million. This includes demand from residential and non- residential uses. Of this $6.3 million associated with new development, $5.0 million is attributable to new non-residential development. A 5.0% administrative cost factor is added to this amount to cover the City's cost of administering the fee over the next 20 years or the life of the General Plan. This adds about $312,428 to the overall cost over a 20-year period, which equals about $15,600 per year. This revenue will cover funding for part-time staff person to manage the fee fund, solicit developer and provider proposals for new centers, and administer the loan and grant program that will be part of the fee program. It is assumed that the City would partner with child care non -profits and other private organizations and would not construct, or own and operate any new child care facilities. Proposed Child Care Fee by Land Use The cost of creating new child care space by General Plan land use category is estimated and divided by development expected to occur in each land use category. The impact fee by land use is the result, which is expressed as either a cost per dwelling unit or cost per square foot of gross building space (see Table 9). The non-residential fee is $0.47 per square foot for business park/light industrial uses, $0.77 per square foot for hotel/visitor uses, to $0.90 per square foot for commercial uses and $1.15 per square foot for office uses. As shown in Table 9, the total cost of child care demand is $6.5 million with $5.27 million to be funded by non-residential uses. The City would continue to address demand from residents that live in the City but work elsewhere through its existing funding for child care and through revenues such as redevelopment tax increment. 5 These cost estimates by facility type were taken from recent child care facility costs in Palm Desert and the "South San Francisco Child Care Facilities Impact Fee Nexus Study" (2001) and both were adjusted for inflation and more current information on costs of family child care centers developed by the County of San Mateo Child Care Coordinating Council -for their SmartKids grant program, which provided grants to FCCHs. Prepared by Brion & Associates 25 Table 8 Summary of New Demand forild Care and Costs 2004 to 2025 Childcare Facilities Impact Fee Nexus Study City of Palm Desert Birth to 23 2 to 5 or 6 to 13 or Total Estimated months or Infant Preschool School Age Child Care Need in Spaces Total Demand at 2025 197 481 265 943 City's Target at 100% of Total 197 481 265 943 Average Facility Cost per Space $6,036 $6,042 $6,220 $6,623 Total Cost of Child Care Spaces $1,303,377 $3,188,602 $1,756,576 $6,248,556 (excluding administrative costs) Sources: City of Palm Desert Eheral Plan; Brion & Associates. 26 dj 01` r M a-- V 0 I � 4 0 o c-" N iO cn ,tr. o � 9 p3 N olNn. CD �d c •O � � u y N ) V T Eo%oo. too US p 0 y r^ N Q�g �'� v � U � � c+N �✓ y W W 27 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 IV. Child Care Impact Implementation This chapter discusses the potential use of the child care impact fee revenue and how the City would assist child care providers with this new funding source. The $5.27 million estimated to be generated by the Child Care Fee would accrue over the next 20 years if the City adopts the fee on non-residential uses. A special Child Care Fee Fund will need to be created so that the funds can be kept separately from other impact fee revenues and any interest earned on the fee revenue will become part of the Child Care Fee Fund. Once a sufficient amount of fee revenue has been generated to construct a project, the City will need to determine how it will participate in the project. If non-residential development were to occur equally over the next 20 years, the City would receive about $264,000 per year in fee revenue. In reality, real estate occurs in business cycles and the amount of fee revenue collected in any given year will vary. These are a couple of the potential options available to the City: 1. The City could team with a local provider that wants to build a new center or expand an existing center, and apply the revenue toward the project. 2. The City could issue an RFP to child care providers/developers that are interested in building a new center or expanding an existing center and specify the amount of potential funding assistance that is available and any special terms or requirements such as serving infants or targeting low income families. Once some fee revenue has accumulated, a low -interest loan and/or grant program could be established. The City will need to develop a method and process for awarding this money to providers. A grant application would need to be developed along with a review process and review board. For the loan program, a loan contract will need to be developed along with a review and approval process for processing the loans. In addition, the City will need to ensure that providers are making their loan payments and develop a process for delinquent payments. The methods, processes, and conditions of approval for loans and grants will need to be defined and adopted by the City Council after the Child Care Fee is adopted. Next Steps The following represents the next steps that will need to be taken by the City of Palm Desert to adopt a Child Care Impact Fee. These are presented in approximate order but the actual order could vary slightly depending on the direction the Council chooses to take and other factors. Prepared by Brion & Associates 28 Final Report: Child Care Fee Study City of Palm Desert August 9, 2005 1. Prepare Child kare Fee Ordinance and Resolution. These two documents implement the nexus study and allow for the impact fee to be adopted by the City and -W. normally become part of the City's zoning regulations. 2. Establish Child Care Fee Fund. The Finance Department will need to create a separate fund to track child care fee revenues and any interest earned on such unspent/accrued fee revenue. 3. Expand Child Care Master Plan. The report includes a list of potential types of facilities and a target number of spaces per type of facility along with cost estimates (see Table 7). The City will need to expand the master plan to provide more detailed plans about the type, location, size and other facets of the proposed child care facilities. This will include identifying providers and developers. 4. Designate Child Care Fee Administrator. As discussed above, this person would monitor the fee revenue, its expenditure, and solicit and review provider and developer proposals. 5. Develop Low -Interest Loan and Grant Programs. The City will need to work with child care organizations to develop formal application, review, and award processes for the low -interest, no -interest, matching grant, and outright grant programs proposed for the child care fee program will need to be developed. This includes final approval and allocation of fee revenue to each source, timeframes for awards, policies for repayments and/or forgiveness requirements, and other terms and requirements. 6. Establish Annual Review Process for Fee Program. Once the Child Care Fee is established, an annual review and reporting process will need to be established along the lines described in Chapter I (page 5). Prepared by Brion & Associates 29 A Appendix A: Community Meeting Appendix A Child Care Nexus Fee Study August 9, 2005 Appendix A: Community Meeting An informational Child Care Master Plan meeting was held for the public, including child care providers and interested citizens, on November 12, 2003 from 6:30-8:30pm in the Administrative Conference Room at Palm Desert City Hall. Approximately 15 people attended this meeting, and most of the attendees were local child care providers. At this meeting, the Child Care Impact Fee Study was discussed and input from participants was heard in order to get first-hand knowledge as to the current state of child care in the City of Palm Desert. A questionnaire as well as the provider survey, which was mailed to all of the providers in the City, was distributed at this meeting. 30 Appendix A Child Care Nexus Fee Study 81912005 City of Palm Desert .............. Please join us for a meeting to discuss the Child - Care Master Plan for the City of Palm Desert! For More Information, Please Contact. Philip Drell Director of Community Development Phone: 760-346-0611 Email: pdrell@ci.paim-desertca.us -or- Michelle Nilsson Brion & Associates Phone: 310-470-8630 Email: nlsson@ucia.edu The meeting will provide an opportunity to: o Learn more about the Child Care Master Plan o Discuss key issues facing child care in Palm Desert o Gather input from local child care providers, families, and community members *Palm Desert City Hall is located at 73-510 Fred Waring Drive, Palm Desert 31 Appendix A Child Care Nexus Fee Study 81912005 City of Palm Desert QW Care Impact Fee Nexus Study Community Meeting Agenda Wednesday, November 12, 2003 6:30-8:30 p.m. 1. Welcome and Overview 6:30 p.m. ■ Welcome and introductions (Joanne Brion and Phil Drell) ■ Meeting purpose and agenda (Joanne Brion) 2. Review Project Background 6:40 p.m. ■ Discuss background of Palm Desert child care policies and programs ■ Present purpose and schedule of the Nexus Study 3. Present overview of Current Conditions and Demand (Joanne Brion) 6:50 p.m. ■ Review general location and supply of child care facilities. 4. Discuss Targeted Service Level for Palm Desert (Joanne Brion) 7:00 p.m. ■ Discuss and identify the "level of service" or target supply of child care slots that Palm Desert should provide as a goal. 5. Identify/Prioritize Facility Needs and Funding Methods (Joanne Brion) 7:10 p.m. ■ Identify and prioritize facility and program needs by: o Facility type o Age group and special needs o Subsidy or full -cost o Location ■ Identify and discuss a preferred method(s) for the City to disburse funds to address the needs identified above (e.g. low interest loans, partnering with non- profits, partnering with private companies, providing subsidized slots, among other). 6. Neat Steps Adjourn 8:20 p.m. 8:30 p.m. 32 Appendix A Child Care Nexus Fee Study 8/9/2005 Questionnaire for Community Meeting #1, November 12, 2003 Palm Desert Child Care Impact Fee Nexus Study 0 Please describe your association with child care, if any: 0 What segment of the community do you represent? (i.e. resident, business, developer, child care provider, etc.): 0 If you manage or work at a child care facility, please indicate the size, location, and any particular characteristics of the program: 0 What is your perception or understanding of the general need for child care facilities in Palm Desert? 0 What do you view as the ideal target supply for child care slots in Palm Desert? (Please consider this in terms of a percentage of demand, e.g., should the City focus on meeting 50% of demand, 75% of demand, etc.) 0 Based on your understanding or knowledge of child care needs, please indicate top priority needs in the following categories. Give a priority within each category using H (high), M (medium), and L (low) priority. Facility type: In-home/informal In-home/licensed Licensed Centers School age (before/after) Age group: Up to 2 years 2-5 years 6-13 years Special Needs: (e.g., developmentally or physically disabled, sick care, etc.) Location: (e.g., in neighborhoods, downtown, near employment centers, etc.) (circle or add) (circle or add) 33 .�aft Appendix B: Palm Desert Child Care Provider Surveys Appendix B Child Care Nexus Fee Study August 9, 2005 My Appendix B: Palm Desert Child Care Provider Surveys A survey questionnaire was sent out to all of the child care providers in the City of Palm Desert. This appendix includes a copy of the letter and the survey, and a summary of the survey results. This survey was mailed in October 2003 and survey results were analyzed in January 2004. This survey provided key information used in the estimate of child care demand for the nexus analysis in Chapter III. 34 Appendix B Child Care Nexus Fee Study August 9, 2005 October 19, 2003 Dear Child Care Provider and Other Community Members, The City of Palm Desert is in the process of creating a Child Care Master Plan for the City and a child care impact fee to fund new child care facilities and help existing providers expand. We are working together with Brion & Associates on this study, and would like to invite you to a community meeting regarding child care in Palm Desert, which is scheduled to take place on Wednesday, November 12, 2003 at 6:30pm. The meeting will be held in the Administrative Conference Room at Palm Desert City Hall, located at 73-510 Fred Waring Drive. Joanne Brion, of Brion & Associates, has worked with several cities in California to create Child Care Master Plans and fee programs, and we look forward to working with her on this project. This community meeting will provide us an opportunity to tell you more about the Child Care Master Plan and more importantly, it will allow us to hear from you about your concerns, challenges, and needs as child care providers in the City so that we may adopt a Child Care Master Plan that meets the needs of our providers and their clients. This will be the first of two community meetings related to the Child Care Master Plan and impact fee. This first meeting is geared towards getting input from you, the providers and the broader community, and the second meeting will discuss the results of the research done by Brion & Associates and discuss different strategies to be adopted by the Master Plan. We hope that you will be able to join us on November 12, 2003 for our first Child Care Master Plan community meeting, as your input is extremely important to us. We are enclosing a short survey, which should take only a few minutes to complete, and hope that you will return a completed survey to us at the meeting or by mail. If you cannot attend the meeting please mail the survey back to us at the address listed on the survey. If you have any questions or comments in regards to the Child Care Master Plan, feel free to contact me at 760-346-0611 or Joanne Brion at 510-451-4168. On behalf of the City, I thank you for your time and effort on this important issue. Sincerely, Phil Drell Director of Community Development 35 Appendix B Child Care Nexus Fee Study August 9, 2005 CHILD CARE PROVIDER SURVEY CITY OF PALM DESERT 1. What type of child care provider are you? Private Non-profit Public Agency Other (please describe) 2. What type of facility do you operate in Palm Desert? Child Care Center with total spaces Large Family Child Care Home (up to 14) Small Family Child Care Home (up to 8) Other (please describe) with total spaces 3. How many of these spaces are: Infants under the age of two: Children ages 2-5 years old: School age children: Special Needs: 4. Do you currently have a waiting list? If yes, how many children are on your waiting list? Approximately how many children on your waiting list are: Infants under the age of two? Children ages 2-5 years old? School age children? 5. Are you interested in expanding your current facility/program? Yes No Not Sure If yes, how many child care spaces would you like to add? spaces. 6. Would you prefer to serve fewer children than you are licensed to care for? Yes No Not Sure If yes, how many children would you prefer to care for? 7. What type of new services would you like to provide? M] Appendix B Child Care Nexus Fee Study August 9, 2005 8. Are you int6Mted in developing a new center, child care home or network of homes? Yes No Not Sure If yes, how many spaces would you like to add? What part of Palm Desert would you like to locate a new center in? 9. Would you be interested in a low -interest loan program run by the City? Yes No Not Sure 10. Would you be interested in a city -sponsored grant program with a matching requirement (i.e. you secure some funds from other sources)? Yes No Not Sure 11.Of the families you currently serve, approximately how many: Live in Palm Desert: Work in Palm Desert but live elsewhere: 12. What could the City's new child care program do to assist you in providing additional child care spaces or to create a new child care facility? 13.Other comments or questions: Please fill out your name, address, phone number, and email if you would like to receive notice of future meetings and public hearings: Name: Business Name: Address: Phone Email: Thank you for your time and interest! 37 Appendix B Child Care Nexus Fee Study August 9, 2005 Child Care Proder Survey As part of the child care fee study for the City of Palm Desert, a questionnaire was mailed to all licensed child care providers in Palm Desert to gain direct input into their interest in expanding their facilities and what type of financial assistance would be most useful to them. Of approximately 24 FCCHs and 28 Child Care Centers (52 providers total) that received the questionnaire, 11 providers responded, or approximately 21 percent. Of the 11 respondents, 8 were FCCHs and 3 were child care centers. Nine of the providers are interested in expanding their current program and are interested in also providing after school tutoring programs and/or subsidized programs to low income families. Approximately half of the respondents would be interested in opening new centers and would be interested in a low -interest loan from the city. However, 8 of the respondents said they would be interested in a city -sponsored grant program. Summary of Written Comments What could the City's new child care program do to assist you in providing additional child care spaces or to create a new child care facility? 1. I am interested in providing an area to help children after school in tutoring. Ages 5 - 10. I have tried but live in Lincoln school area and parents can't pay for after school learning programs for their children. 2. Assist with purchase of new home facilities and bringing them to code. Or, help with construction of new, larger facility. 3. They could help us to relocate to a larger facility with better accessibility and could provide longer hours to parents. 4. Institute a grant and or loan program. 5. Provide funding to upgrade current space to allow for more classrooms. Provide funding to help staff additional classes. Provide scholarships to needy families (beyond our own scholarships). 6. Advertisement or funding for equipment for childcare center. 7. Advertisement or funding for advertisement. Funding for equipment for a larger amount of children, toys, supplies, large toys, children's furniture etc. Other Comments and/or Questions 1. There is a big need for this area as I currently keep in contact with many teachers where they say kids need help. 2. We are currently operating in a tight residential area, which has its restrictions. 3. I live in La Quinta but I want to open a center in Palm Desert. 4. I have been interested in opening a center for many years. I have just recently relocated to the Palm Desert area and tried for a large childcare home but was denied due to residing in an apartment. So opening a center or large home would be beneficial for me. Appendix B Child Care Nexus Fee Study August 9, 2005 The following presents a summary of the responses to each of the questionnaires included in the provider survey, including how many people responded to each question. CHILD CARE PROVIDER SURVEY CITY OF PALM DESERT 14. What type of child care provider are you? (I I Responses Total) 11 Private 1 Non-profit Public Agency Other (please describe) 15. What type of facility do you operate in Palm Desert? (11 Responses Total) 3 Child Care Center with (45. 60. and 90) total spaces 4 Large Family Child Care Home (up to 14) 4 Small Family Child Care Home (up to 8) Other (please describe) with total spaces 16. How many of these spaces are: (11 Responses Total) Infants under the age of two: 3, 3 , 1, 1, 9, 4, 2, 2 Children ages 2-5 years old: 7, 6, 45, 16, 5, 1, 10, 75, 6, 6 School age children: 4, 5, 2, 15, 2, 2, 1 Special Needs: 1 1 17. Do you currently have a waiting list? (I I Responses Total) 5 Yes, 6 No If yes, how many children are on your waiting list? 2, varies, 2, 8. 3 Approximately how many children on your waiting list are: Infants under the age of two? 2 1, 3 Children ages 2-5 years old? 1 8 School age children? 18. Are you interested in expanding your current facility/program? (II Responses Total) 9 Yes I No 1 Not Sure If yes, how many child care spaces would you like to add? 4, as many as possible spaces. 19. Would you prefer to serve fewer children than you are licensed to care for? (11 Responses Total) 0 Yes 10 No 1 Not Sure If yes, how many children would you prefer to care for? 18. 19 M Appendix B Child Care Nexus Fee Study August 9, 2005 20. What type of new services would you like to provide? (8 Responses Total) a. An after school tutoring program for low income children. Also for children who do not get help at home with homework. b. Expanded after and before school care. Homework assistance. c. Longer hours to the public. d. I am interested in opening a child care center. e. Year round care, care for toddlers 18 months to 2 years, after school care for grade school age. f. More special needs children. g. Subsidized childcare, large family home or open a daycare center. 21. Are you interested in developing a new center, child care home or network of homes? (11 Responses Total) 5 Yes 3 No 3 Not Sure If yes, how many spaces would you like to add? Not Sure (2). 45. As manv as vossible (2) What part of Palm Desert would you like to locate a new center in? • In-between Washington Charter, Lincoln Elementary and James Carter. ■ Central ■ North Portola ■ Central Palm Desert ■ The beginning of Palm Desert ■ Any part to possibly open a center or a house for a large daycare home. ■ Any part (Country Club and Monterey if an office space can be used for a center). Hopefully we will be allowed to open a center or large childcare home in new housing developments to provide childcare for the surrounding community. 22. Would you be interested in a low -interest loan program run by the City? (11 Responses Total) 6 Yes 2 No 3 Not Sure 23. Would you be interested in a city -sponsored grant program with a matching requirement (i.e. you secure some funds from other sources)? (11 Responses Total) 8 Yes 3 No 0 Not Sure 24.Of the families you currently serve, approximately how many: (10 Responses Total) Live in Palm Desert: 8, 9, 17. 5. 1, 0, approximately 32, 5, 0, 0. Work in Palm Desert but live elsewhere: 6.2, 28, 2, 2, 1, 10-15, 5, 0, 0 40 Appendix B Child Care Nexus Fee Study August 9, 2005 25. What could the City's new child care program do to assist you in providing additional child care spaces or to create a new child care facility? W, ■ I am interested in providing an area to help children after school in tutoring. Ages 5 - 10. I have tried but live in Lincoln school area and parents can't pay for after school learning programs for their children. ■ Assist with purchase of new home facilities and bringing them to code. Or, help with construction of new, larger facility. ■ They could help us to relocate to a larger facility with better accessibility and could provide longer hours to parents. ■ Institute a grant and or loan program. ■ Provide funding to upgrade current space to allow for more classrooms. Provide funding to help staff additional classes. Provide scholarships to needy families (beyond our own scholarships). ■ Advertisement or funding for equipment for childcare center. ■ Advertisement or funding for advertisement. Funding for equipment for a larger amount of children, toys, supplies, large toys, children's furniture, etc. 26.Other comments or questions: ■ There is a big need for this area as I currently keep in contact with many teachers where they say kids need help. ■ We are currently operating in a tight residential area, which has its restrictions. ■ I live in La Quinta but I want to open a center in Palm Desert. ■ I have been interested in opening a center for many years. I have just recently relocated to the Palm Desert area and tried for a large childcare home but was denied due to residing in an apartment. So opening a center or large home would be beneficial for me. 41 .W- Appendix C: Employee Surveys Appendix C Child Care Nexus Fee Study August 9, 2005 .�ft Appendix C: Employee Surveys In an effort to estimate employee demand of child care in the City of Palm Desert, surveys were sent to employees of the Marriot and the City of Palm Desert, which are two of the largest employers in the City. Included in this appendix is a copy of the cover letter and survey, and a summary of the results of the survey. 42 Appendix C Child Care Nexus Fee Study August 9, 2005 .zpft December 11, 2003 Dear Marriot Employee: The City of Palm Desert is in the process of creating a Child Care Master Plan for the City, which will include the adoption of a new child care impact fee. We are asking individuals who work in the City of Palm Desert to complete the attached survey about their current child care needs so that we can better understand what kinds of child care are needed and whether there is a shortage of child care in the City. We would greatly appreciate it if you could take a few minutes to complete the attached survey. Upon completion, please return the survey to Susana Wolfe in the Human Resources Department at the Marriot. Thank you for your time and for providing input for this important project. Sincerely, Phil Drell Director of Community Development 43 Appendix C Child Care Nexus Fee Study August 9, 2005 r_�-I 11 de diciembre, 2003 Estimado empleado(a) de Marriot: La ciudad de Palm Desert estd en proceso de crear un Plan de Guarderia para NiCos para la ciudad, el cual podria incluir la adopcion de una cuota pars pagar el cuidado de los nitios. Nosotros estamos pidiendo a todas las personas que trabajan para la ciudad de Palm Desert que completen este cuestionario acerca de las necesidades que tienen pars que podamos comprender major que clase de cuidado y lugares son necesarios para el cuidado de sus ninos y como planear para estas necesidades en un futuro. Sus respuestas son totalmente confidenciales y no ser;tn compartidas con ninguna otra persona, incluyendo a su empleador. Por favor devuelva el cuestionario en un sobre sellado. Le agradeceriamos mucho si tomara algunos minutos de su tiempo pars completar el cuestionario. En cuanto to complete, por favor envielo a Susana Wolfe al Departamento de Recursos Humanos de Marriot. Gracias por su tiempo y por proveernos de su opinion para este importante proyecto. Sinceramente, Phil Drell Director de Desarrollo Comunitario 44 .K� Appendix C Child Care Nexus Fee Study August 9, 2005 Employee Child Care Usage and Preference Survey City of Palm Desert CHILD CARE QUESTIONS: 1. How many children do you have in the following age groups? # of children infants (newborn-18 months) toddlers (18 months-3 years) preschool (3 years-5 years) kindergarten (5 years-6 years) elementary (6 years-12 years) teenagers (13 years-18 years) 2. Over the last 12 months, have you needed child care for any of your children while you were working? (Check d your response) Yes No 3. Please check (V ) all the kinds of care needed by your children over the past 12 months while you worked. Full -day care Back-up or emergency care Half -day care Sick care Before/after school care Full -day care (summers only) Night or weekend care (while Half -day care (summers only) parents work) Other (explain) 4. Please mark the main tvve of child care that you used for your children with an X and other types you use occasionally with an O. Relative in our home Non -relative in our home In relative's home Child Care Center Family Child Care Home Other (describe) 5. Of the above types of child care, what is your preferred type of child care, assuming you can afford it, and a space is available for your child(ren). i 45 Appendix C Child Care Nexus Fee Study August 9, 2005 .�ffift 6. If you had a choice would you prefer child care to be located near: (check (V ) your response) Your place of work Your place of residence Your child's school 7. Please check (V ) all of the following Child Care options that you currently need or will need in the next 12 months and circle the most important two items: Care close to home Licensed day-care home Care close to work Care for early mornings Special needs care Care for evenings/nights Affordable care 24-hour care Care for sick children Care on weekends Summer camp Emergency back-up care Vacation programs All day pre-school Recreation programs After school programs Bilingual care Licensed day-care home 8. Did you get all the child care you needed in the past 12 months? (Check (V ) your response.) Yes No 9. If you could not get all the child care you needed, please explain why. (Check (�) all that apply.) The cost of care was too high. The hours of care available did not fit my job hours, which are: Could not find anyone to care for my children. Care was too far away from my job or home (circle job or home or both). My child has special needs that could not be accommodated. Other (explain) 10. Do you have backup child care when your regular care is unavailable? (Check 46 `Mt; (�) your response.) Always Usually Never If yes, who provides your back up care? Appendix C Child Care Nexus Fee Study August 9, 2005 Sometimes 11. Do you often have to leave your children at home alone? (Check (d) your response.) Yes No Sometimes 12. Have you limited your work hours because you cannot find adequate child care? (Check (V ) your response.) Yes No 13. Have you had to take time off from work because of problems with child care? (Check (%0 ) your response.) Yes No 14. Where are your child care arrangements located? (Check ( d ) your response.) Close to home (Less than a 30-minute drive; less than 2-mile walk or bus ride) ride) ride) Close to work (Less than a 30-minute drive; less than 2-mile walk or bus Close to both (Less than a 30-minute drive; less than 2-mile walk or bus Away from both (Over a 30-minute drive; over a 2-mile walk or bus ride) Other (explain) 15. What is the average dollar ($) amount aer week that you pay for child care? $ total care for (#) children. 16. About how many total hours per week are your children in child care? (Please write-in the number of hours per child) Child # 1 Child #2 Child #3 Child #4 Child #5 17. Please circle the number following each item below according to what concerns you most about your child care situation. a. Finding care when Least 1 2 3 4 5 very much needed 47 Appendix C Child Care Nexus Fee Study August 9, 2005 b. Being able to afford Least 1 2 3 4 5 very much the care I want c. Reliability of my Least 1 2 3 4 5 very much caregivers d. Quality of the child Least 1 2 3 4 5 very much care environment e. Finding a convenient Least 1 2 3 4 5 very much location f. Safety issues Least 1 2 3 4 5 very much g. Trying to make Least 1 2 3 4 5 very much emergency arrangements h. Other, please explain: DEMOGRAPHICS 18. Age 19. Gender (M or F) 20. Zip code of home address 21. In what city or community do you live? County 22. How long have you worked in Palm Desert? months years 23. Household Status (check your response): Single, Head of Household More than one employed adult in Household 24. Total Yearly Family Income (please check response): I 48 Appendix C Child Care Nexus Fee Study August 9, 2005 .a $0-$10,000 $10,000415,000 $15,000420,000 $20,000-$25,000 $25,000-$30,000 $30,000435,000 $35,000-$45,000 $45,000455,000 $55,000-$65,000 $65,000-$75,000 $75,000 and above 25. Please list any other concerns or comments about child care. Thank you for your time and interest! Your input is Very Important! M Appendix C Child Care Nexus Fee Study August 9, 2005 Cuestionario Acerca del Cuidado de Ninos y las Preferencias de los Empleados Ciudad de Palm Desert Cuestionario acerca del cuidado de ninos: 1. �Cuantos ninos tiene dentro de los siguientes grupos de edad? # de ninos infantes (recidn nacido-18 meses) ninos que empiezan a andar por si solos (18 meses-3 afios) prescolar (3 afios -5 afios) kinder (5 afios -6 afios) primaria (6 anos -12 afios) adolescentes (13 anos -18 anos) 2. Durante los ultimos 12 meses, ZHa utilizado la guarderia pars cualquiera de sus hijos mientras trabajaba? (Marcar su respuesta) Si No 3. Favor marcar ( V ) todas las diferentes clases de cuidado que ha necesitado durante Jos ultimos 12 meses que ha trabajado. Todo el dia Mediodia Antes/despu6s de escuela Noches o fin de semana (mientras trabaja) Otro (explique) Cuidado de emergencia Cuidado mientras enfermo Todo el dia (verano) Mediodia (verano) 4. Favor de marcar ( V ) la clase de cuidado esenciai que usted ha utilizado para sus ninos con una X y las otras clases de cuidado que utilice ocasionalmente con una O. Pariente en nuestra casa No-pariente en nuestra casa En la casa de un pariente Guarderia Guarderia de casa Otro (explique) Appendix C Child Care Nexus Fee Study August 9, 2005 .�.ft 5. De las clases de cuidado descritas arriba, Lcual tipo de cuidado prefiere, asumiendo que pudiera pagarlo, y que hubiera espacio disponible pars inscribir a sus hijos? 6. Si usted tuviera la opcion, preferiria tener cuidado para sus ninos cerca de (marque ( V ) su respuesta) El lugar donde trabaja El lugar donde vive La escuela de sus hijos 7. Favor de marcar (%0 ) todas las opciones de cuidado infantil que usted necesita o necesitara en los pr6ximos 12 meses. Circule los dos mas importantes. casa semana dia escuela Cerca de casa Cerca del trabajo Cuidado especial Cuidado econ6mico Cuidado pars ninos enfermos Campamento de verano Programas durante vacaciones Programas de recreaci6n Cuidado bilingiie Cuidado con autorizaci6n en Cuidado temprano en Ias mafianas Cuidado por las noches Cuidado por 24 horas Cuidado los fines de Cuidado de emergencia Prescolar durante todo el Porgramas despuds de Cuidado con autorizaci6n 8. ZRecibi6 todo el cuidado que necesitaba en los ultimos 12 meses? (Marque (VO ) con su respuesta.) Si No 9. Si usted no recibi6 este servicio, explique el por qud. (Marque (Y' ) todo to que sea aplicable.) Costaba mucho dinero. Las horas disponibles no concordaban con mis horas de empleo, que son No pude encontrar a nadie que cuidara a mis nuios. El cuidado estaba muy lejos de mi casa o trabajo (circule casa, trabajo o ambos). Mi hijo(a) necesita de cuidados especiales que no ofrecian. 51 Appendix C Child Care Nexus Fee Study August 9, 2005 .�ft Otro (explique) 10. jiene otra opci6n para el cuidado de sus ninos en caso de que su servicio regular no estd a su alcance? (Marque (V ) su respuesta.) Siempre Usualmente A veces Nunca Si la respuesta es afirmativa, ZQuidn le provee este servicio? 11. Tiene que dejar a sus hijos solos en casa con frequencia? (Marque (vo ) su respuesta.) Si No A veces 12. LHa tenido que limitar sus horas de trabajo porque no puede encontrar cuidado adecuado? (Marque (40 ) su respuesta.) Si No 13. ZHa tenido que (altar al trabajo debido a falta de cuidado para sus hijos? (Marque ( d ) su respuesta.) Si No 14. ZD6nde estd localizado su lugar de cuidado? (Marque (d ) su respuesta.) Cerca de casa (Menos de 30 minutos en auto; menos de 2 millas a pie o en autobus) Cerca del trabajo (Menos de 30 minutos en auto; menos de 2 millas a pie o en autobus) Cerca de ambos (Menos de 30 minutos en auto; menos de 2 millas a pie o en autobus) Lejos de ambos (Mas de 30 minutos en auto; menos de 2 millas a pie o en autobus) Otro (explique) 15. ZCuanto paga regularmente en dolares ($) por semana para el cuidado de sus ninos? $ cuidado de (#) ninos. 16. ZCuAntas horas por semana pasan sus ninos bajo cuidado ajeno? (Favor de escribir el numero de horas por nif[o? (Favor de escribir el numero de horas por nifio) Nifto # 1 Nino #2 52 Appendix C Child Care Nexus Fee Study August 9, 2005 Nino #3 Nino #4 Nino #5 17. Favor de hacer un circulo en el numero de cada instancia en to que concierne to que mas le preocupa acerca del cuidado que necesita para sus niiios. a. Encontrar cuidado Menos 1 2 3 4 5 Mucho MAs cuando to necesita b. Poder pagar el Menos 1 2 3 4 5 Mucho Mds Cuidado deseado c. Confianza en las Menos 1 2 3 4 5 Mucho Mas personas que cuidan a los niiios d. Calidad del ambiente Menos 1 2 3 4 5 Mucho Mds donde le cuidan a susninos e. Encontrar un lugar - Menos 1 2 3 4 5 Mucho Mds conveniente f. Cuestiones de Menos 1 2 3 4 5 Mucho MAs seguridad g. Tratar de contactar el Menos 1 2 3 4 5 Mucho MAs Lugar en caso de emergencia h. Otra, favor de explicar: Datos dembgraficos 18. Edad 19. Sexo (M o F) 20. Codigo postal de su residencia 21. ZEn qud ciudad or comunidad vive? Condado 22. ZCuanto tiempo ha trabajado-en Palm Desert? 53 Appendix C Child Care Nexus Fee Study August 9, 2005 .,as meses aiios 23. Situaci6n del hogar familiar (marque su respuesta): Soltero(a), jefe de familia Mas de un adulto con empleo en la casa 24. Salario annual familiar (favor de marcar una sola respuesta): $0-$10,000 $10,000415,000 $15,000420,000 $20,000-$25,000 $25,000-$30,000 $30,000-$35,000 $35,000-$45,000 $45,000-$55,000 $55,000-$65,000 $65,000-$75,000 $75,000 y arriba 25. Por favor escriba cualquier clase de comentario que le gustaria agregar. 1 Gracias por su interes! i Su opinion es muy importante! 54 Appendix C Child Care Nexus Fee Study August 9, 2005 Employee Child Care Usage Survey In addition to asking child care providers to respond to a questionnaire, a survey was sent out to employees of the Marriot in Palm Desert as well as employees of the City of Palm Desert, two of the largest employers in the City. The questionnaire was sent out in an attempt to find out more about the potential child care demand of employees in the City of Palm Desert. Of the over 2,000 surveys that were sent out in both English and Spanish, only 44 employees responded (approximately 2%). Of the 44 employees who responded to the survey, only 6 reside in Palm Desert. About 16% of the respondents were single -headed households and 48% had more than one employed adult in the household (the remainder declined to answer this question). About 11 % of the employees earn less than $30,000 per year, but 34% earn over $55,000 per year, and they pay on average $135 per week per child for child care. About 18% of respondents said that one of the reasons they did not receive all of the child care needed was because the cost of care was too high. Summary of Written Comments Other Comments 1. We need to have more affordable preschools in the city that I live in, Desert Hot Springs as well as in Palm Desert. If there was an affordable preschool in Palm Desert I would prefer to have my children closer to work. Not only would I be able to visit but it would be convenient to pick them up and take them to their Doctor's appointments. 1 wouldn't? have to take so much time off to run around for Doctors appointments. 2. Finding someone to take in a sick child at the last minute. 3. Before and after school -- especially safe and productive after school activities for Junior High and High School. 4. My schedule is really different every week. I really really need a day care that can pick up and drop off at school. Thank you. 5. My kids are older now, but child care cost and convenience was a hardship with both of us working we struggled because child care was just a lot of kids with little real supervision-- too many kids, not enough adults. 6. Need affordable infant care. 7. When my children are at the Rec. Center and the YMCA I do not always feel there is enough supervision. Attached is a summary of the responses to each of the questionnairess included in the employee survey, including how many people responded to each question. 55 Appendix C Child Care Nexus Fee Study August 9, 2005 . as Employee Child Care Usage and Preference Survey City of Palm Desert CHILD CARE QUESTIONS: 26. How many children do you have in the following age groups? (30 Responses Total) # of children 4 infants (newborn-18 months) 4 toddlers (18 months-3 years) 5 preschool (3 years-5 years) 6 kindergarten (5 years-6 years) 24 elementary (6 years-12 years) 9 teenagers (13 years-18 years) 27.Over the last 12 months, have you needed child care for any of your children while you were working? (Check d your response) (29 Responses Total) 24 Yes 5 No 28. Please check (V ) all the kinds of care needed by your children over the past 12 months while you worked. (26 Responses Total) 15_ Full -day care 10 Back-up or emergency care 6 Half -day care 8 Sick care 10 Before/after school care 12 Full -day care (summers only) 2 Night or weekend care (while 3 Half -day care (summers parents work) only) 3 Other (explain) School Holidays (Easter. Sn_ rine Break. Summer Vacation) Please mark the main tvoe of child care that you used for your children with an X and other types you use occasionally with an O. (25 Responses Total) _3 (X) and 9 (0)_ Relative in our home _I(X) and 5 (0)_ Non -relative in our home 1 I (X) and 5 (0) 1n relative's home 12 (X) and 1 (0) Child Care Center 4 (X) and 1 (0) Family Child Care Home 8 Other (describe) YMCA, Good friend, neighbor, preschool, mother 29.Of the above types of child care, what is your preferred type of child care, assuming you can afford it, and a space is available for your child(ren). (22 Responses Total) 56 Appendix C Child Care Nexus Fee Study August 9, 2005 .: • Child Care Center for my 2 year old and my 5 month old • In -home ■ Family, child care home or child care center ■ Before and after school care ■ Child Care Center and Family Child Care Home ■ In relative's home ■ Licensed Child Care Center ■ Family Child Care Home ■ Have a relative pick up kids from school ■ Relative or non relative in our home ■ Child Care Center ■ We prefer our sitter ■ Child Care Center/Preschool ■ Church Day Care ■ Child Care Center ■ Child Care Center ■ We prefer what we are doing now ■ Child care at home ■ Home or school ■ Child care center ■ After school programs-- good safe qualified • Child Care Center with organized activities 30. If you had a choice would you prefer child care to be located near: (check (V, ) your response) (28 Responses Total) 14 Your place of work 6 Your place of residence 16 Your child's school 31. Please check ( v ) all of the following Child Care options that you currently need or will need in the next 12 months and circle the most important two items: (27 Total Responses) 8 Care close to home 6 Licensed day-care home 11 Care close to work 5 Care for early mornings 1 Special needs care 11 Care for evenings/nights 19 Affordable care 0 24-hour care 8 Care for sick children 5 Care on weekends 12 Summer camp 13 Emergency back-up care 9 Vacation programs 6 All day pre-school 13 Recreation programs 14 After school programs 1 Bilingual care 4 Licensed day-care home 57 Appendix C Child Care Nexus Fee Study August 9, 2005 32. Did you get all the child care you needed in the past 12 months? (Check (� ) your response.) (28 Total Responses) 29. Yes 9 No 33. If you could not get all the child care you needed, please explain why. (Check (d ) all that apply.) (10 Responses Total) 8, The cost of care was too high. 2 The hours of care available did not fit my job hours, which are: (nothing_ written in) 4 Could not find anyone to care for my children. 3 Care was too far away from my job or home (circle job or home or both). 0 My child has special needs that could not be accommodated. 3 Other (explain) Sick child care, kids staved home if hours/ iob didn't match, Sick care is impossible to find 34. Do you have backup child care when your regular care is unavailable? (Check (%0 ) your response.) (29 Responses Total) 0 Always 5 Usually 15 Sometimes 9 Never If yes, who provides your back up care? Friend down the street, relatives. spouse/relatives, mother on certain days, ex-husband. erandmother, don't eo to work 35. Do you often have to leave your children at home alone? (Check (yo ) your response.) (29 Responses Total) 2 Yes 19 No 8 Sometimes 36. Have you limited your work hours because you cannot find adequate child care? (Check (V ) your response.) (30 Responses Total) 9 Yes 21_ No 37. Have you had to take time off from work because of problems with child care? (Check (V ) your response.) (29 Responses Total) 17 Yes 12 No 38. Where are your child care arrangements located? (Check (V ) your response.) 16 Close to home (Less than a 30-minute drive; less than 2-mile walk or bus ride) 2 Close to work (Less than a 30-minute drive; less than 2-mile walk or bus ride) 8 Close to both (Less than a 30-minute drive; less than 2-mile walk or bus ride) 3 Away from both (Over a 30-minute drive; over a 2-mile walk or bus ride) M. Appendix C Child Care Nexus Fee Study August 9, 2005 0 Other (explain) 39. What is the average dollar ($) amount per week that you pay for child care? (20 Responses Total) Average =$134. 58 per child aer week $800 (2 children), $500, $300 (3 children), $250 (2 children), $170, $150 (2 children), $90, $594 (2 children), $80 (2 children), $125, $85, $144. $70, $98, $100 (2 children), $50-100, $85, $50. $50, $125 (2 children) total care for (#) children. 40. About how many total hours per week are your children in child care? (Please write-in the number of hours per child) (26 Responses Total) Child 41 10.5, 20, 4, 10, 44, 5, 5, 40, 40, 3, 5, 2, 40, 2.5, 50-60, 20, 8, 40, 8, 15-20, 12, 10, 20, 1, 7 Child #2 10.5, 4, 50, 3, 15, 15, 4.5, 5, 8, 1, 7 Child #3 11, 3, 1 Child #4 Child #5 41. Please circle the number following each item below according to what concerns you most about your child care situation. a. Finding care when Least 1 2 3 4 5 very much needed 4 1 5 3 15 b. Being able to afford Least 1 2 3 4 5 very much the care I want 5 0 3 2 18 c. Reliability of my Least 1 2 3 4 5 very much Caregivers 3 0 1 1 24 d. Quality of the child Least 1 2 3 4 5 very much care environment 1 0 0 1 25 e. Finding a convenient Least 1 2 3 4 5 very much Location 4 2 6 6 11 f. Safety issues Least 1 2 3 4 5 very much 3 1 2 0 22 g. Trying to make Least 1 2 3 4 5 very much emergency 4 1 3 5 14 arrangements h. Other, please explain: 59 Appendix C Child Care Nexus Fee Study August 9, 2005 .=MM ■ My kids are older now, but the one in school 45 minutes away sometimes misses an entire day if we cannot find care after school. ■ I really need child care that could drop off and pick up from school. ■ We are very pleased with our current sitter. ■ Care for older children 12+. ■ This questionnaire should first ask if we have children and a negative answer could save DINK's from having to answer the rest of the questions. DEMOGRAPHICS 42. Age Average age = 35 (26 Responses Total) 43. Gender (M or F) 16 Female; I 1 Male (27 Responses Total) 44. Zip code of home address (26 Responses Total) ■ 92240 (2) ■ 92223 ■ 92260 (5) ■ 92201 (7) ■ 92211 • 92253(2) • 92239 ■ 92274 ■ 92270 ■ 92264 ■ 92262 (2) ■ 92203 ■ 92210 45. In what city or community do you live? (27 Responses Total) ■ Indio (7) ■ Palm Desert (6) ■ Palm Springs (3) • La Quinta (3) ■ Desert Hot Springs (2) ■ Desert Center (1) ■ Bermuda Dunes (1) ■ Beaumont (1) ■ Thermal (1) ■ Rancho Mirage (1) • Coachella Valley (1) 60 Appendix C Child Care Nexus Fee Study August 9, 2005 46. How long have you worked in Palm Desert? (28 Responses Total) ■ 4 years ■ 20 years ■ 4 years, 8months ■ 7 years • 1 year, 1 month • 1 year ■ 16 years ■ 1 year ■ 22 years ■ 7 years ■ 8 years • I year, 3 months ■ 5 years ■ 13 years ■ 1 year, 4 months ■ 5 years, 6 months ■ 2 years, 6 months ■ I year, 4 months ■ I year, 4 months, ■ 10 years, 10 months ■ 11 years ■ 11 months ■ 8 years, 6 months ■ 13 years ■ 7 years, 5 months ■ 16 years, I 1 months ■ 2 years ■ 10 years 47. Household Status (check your response): (28 Responses Total) 7 Single, Head of Household 2l More than one employed adult in Household 48. Total Yearly Family Income (please check response): (26 Responses Total) 0 $0-$10,000 0 $10,000415,000 1 $15,000420,000 0 $20,000-$25,000 4 $25,000-$30,000 0 $30,000-$35,000 6 $35,000-$45,000 0 $45,000-$55,000 6 $55,000-$65,000 61 Appendix C Child Care Nexus Fee Study August 9, 2005 .s 1 $65,000-$75,000 8 $75,000 and above 49. Please list any other concerns or comments about child care. (7 Responses Total) ■ We need to have more affordable preschools in the city that I live in, Desert Hot Springs as well as in Palm Desert. If there was an affordable preschool in Palm Desert I would prefer to have my children closer to work. Not only would I be able to visit but it would be convenient to pick them up and take them to their Doctor's appointments. I wouldn't have to take so much time off to run around for Doctors appointments. ■ Finding someone to take in a sick child at the last minute. ■ Before and after school -- especially safe and productive after school activities for Junior High and High School. ■ My schedule is really different every week. I really really need a day care that can pick up and drop off at school. Thank you. ■ My kids are older now, but child care cost and convince was a hardship with both of us working we struggled because child care was just a lot of kids with little real supervision-- too many kids, not enough adults. ■ Need affordable infant care. ■ When my children are at the Recreation Center and the YMCA I do not always feel there is enough supervision. Thank you. for your time and interest! Your input is Very Important! 62 _qft Appendix D: Literature Review Appendix D City of Palm Desert August 9, 2005 Appendix D: Literature Review The following are a list of articles and documents which were reviewed to see how employee demand has been calculated in other studies. We were unable to find any articles which provided methodology for calculating child care demand. 63 Appendix D City of Palm Desert August 9, 2005 .aft 1. Primary Child Care Arrangements of Employed Parents: Findings from the 1999 National Survey ofAmerica's Families; The Urban Institute (2002). 2. Arranging and Paying for Child Care; Public Policy Institute of California (2003). 3. The Demand and Supply of Child Care in 1990; Joint findings from The National Child Care Survey 1990 and A Profile of Child Care Settings (1991). 4. City of Alameda Child Care Needs, February 2003. 5. Methodology: Child Care Demand (from Tompkins County, NY; www.davcarecouncil.org) 64 September 16, 2005 Mr. Phil Drell Community Development Director City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear Phil: RECEIVED SEP 19 2005 'OMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT • -0 >- rr pi.. s cn — C C)ri frt rn —4 a C7 W C0 -rt © D n m dr% BIFI Desert Chapter Building hulu,try A.ssociatii of Southern California 77-570 Springfield Lane Suite E Palm Desert, California 92211 760.360.2476 fax 760.772.3372 www.DesertChapter.com E Mail: BIA@DesertChapter., Thank you for the opportunity to review your draft Child Care Facilities Impact Mitigation Fee report. I have found the following difficulties and questions in the material you presented to me: That portion of the use of the fee that involves gifts, grants and construction of buildings not belonging to the City of Palm Desert would not be a legal use of funds under Government Code 66000; Code Section 66000(b) - ...."for the purpose of defraying all or a portion of the cost of public facilities related to the development project...." Code Section 66000(d) - "Public Facilities includes public improvements, public services and community amenities." Code Section 66001(b) - shall determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility...." There is no language in the Government Code which allows the use of mitigation fee money for loans to private parties, grants to private parties or construction of buildings which would not be government owned for use by the general public. As to the requirement of Government Code Section 66001(a)(2), there is no identification of how the money would be used, i.e., a plan which outlines a specific need and the specific buildings which would meet that need. It has not been shown in the nexus document how there is an negative impact on the City of Palm Desert and therefore a need for mitigation. The City has not been in the child care business, therefore no impact. Additionally, all of the spaces for child care which would be provided by this plan are for parents who do not reside in the City. There is no legal requirement that the City of Palm Desert assume the responsibility for caring for children from areas outside of the city. An Affiliate of the National Association of thane Builders and the California Building Industry Association It would appear that you are trying to overcome a social problem that is being serviced by private enterprise. If the city wishes to address the problem of a lack of child care facilities for children of Palm Desert residents, they should build and operate a "public" child care facility. Of course if you did that, you would be accused of unfair competition with private enterprise. As to the draft ordinance: Section 3.45.060B. allows a developer to request an offset against any required fee for the construction of a child care facility, etc. without any protective language that would assure such a facility would remain a child care facility forever. As to the draft resolution: Section 1. The fee amounts have no nexus to Table 6 of the nexus study and the amount of projected impact: Business park/light industrial uses at $0.47 when the category creates 24% impact Hotel visitor uses at $0.77 when the category creates 22% of the impact Commercial uses at $0.90 when the category creates 48% of the impact Office uses at $1.15 when the category only creates 5% of the impact As to the nexus study: Page 4, the results are based on little actual input, i.e. 2% from employees and only 21% from the providers. It would appear that the entire need requirement is based on non- specific Journey -to -Work data provided by the census. Page 10 and 11. Even if it were legal to provide monies to support private enterprise, the sentences contained on these pages " there is a now a (sic) building in Palm Desert that is already up to code and ready to be licensed for child care, but there is no one to run it." And "Most of the child care business in Palm Desert and the Coachella Valley stay in business for an average of two years ". There is no language or suggestion of language that would protect the governments money when these private institutions go out of business or decide they don't want to utilize their full allotment. There is no language that says if an owner sells the business that they cannot profit from facilities provided by the city. Page 18, Table 6. The study estimates that 185 Palm Desert kids will need day care over the next 20 years. This is the nexus to new construction and at best it is a wild guess. When would you build the child care center and how large? Page 20. The purpose of the Child Care Fee is to fund required capital improvements to create new child facilities or new spaces at existing child care facilities in the City of Palm Desert that will be available to serve new employees that require child care in the City. This cannot be done by propping up private enterprise with public monies. -2- We respectfully request that this item be removed from the September 22 Council Agenda and any fee in regard to child care facilities be limited to Palm Desert residents and that it be a public facility designe to serve the citizens of the city. Ed Executive Dir=ctor -3-