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Home My WebLink AboutR24030 Direction PD Early Childhood Education Pgrm Contract No. R24030 CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT SUBJECT: CONSIDERATION OF A REQUEST FROM DESERT SANDS UNIFIED SCHOOL DISTRICT FOR $30,000 TO CONTINUE OPERATING THE PALM DESERT EARLY CHILDHOOD EDUCATION PROGRAM (CONTRACT NO. R24030). SUBMITTED BY: Stephen Y. Aryan, Risk Manager DATE: June 13, 2013 CONTENTS: DSUSD Correspondence Recommendation By Minute Motion, deny a request from the Desert Sands Unified School District to provide $30,000 in operational funding for the Palm Desert Early Childhood Education Program. Backstround On July 14, 2005, the former Palm Desert Redevelopment Agency entered into a lease agreement with the Desert Sands Unified School District (DSUSD) for the purpose of facilitating a preschool program at the Palm Desert Early Childhood Education Center (formerly known as Wallaroo Children's Center) located at 44-911 Cabrillo Avenue. DSUSD's Early Childhood Education (ECE) Program's goal is to ensure that attending children are both educationally and physically ready to enter kindergarten. Since the Palm Desert ECE Center opened in 2005, it has served over 600 preschool aged children. Currently, 32 children and their families receive services at this site. Children in attendance at this site primarily live within the Lincoln Elementary School boundaries and transition to this school, which has a free and reduced lunch participation rate of 91%. DSUSD is charged $1.00 annually for rent and is responsible for all utilities and repairs at this location, with the exception of replacing the HVAC unit if necessary. However, the City of Palm Desert has expended approximately $65,000-$75,000 on repairs to this facility not limited to roofing repairs, mold remediation, HVAC heat pump replacement, and drainage improvements. Debra Loukatos, Early Childhood Education Center Coordinator, indicated in a letter dated May 13, 2012, that the PDECE Program has been significantly impacted by the current budget crisis. They are experiencing further federal budget reductions to the program next year due to sequestration, which makes it fiscally unfeasible for DSUSD to continue operating this center. Contract No. R24030 Staff Report: Palm Desert ECE Program June 13, 2013 Page 2 of 3 DSUSD officials indicate that while personnel and program costs are feasible, operational costs are beyond their fiscal resources. The typical operational costs are currently estimated at $30,000 annually as indicated: ITEM COST Janitor�al Service `$8,400 Electrical Utilities $10,700 Water $1,900 Lawn Maintenance $3,847 Tree Pruning $8� Telephone $2,296 Alarm Monitoring $390 General Repairs $2,000 DSUSD requests the City's financial assistance with these operational costs, or they will be unable to continue providing preschool services at this facility and have to relocate to either La Quinta or Indio. Staff respectfully requests that the City Council provide direction on this matter by selecting one of the following options: 1. Provide an annual $30,000 contribution to the Palm Desert ECE Program for operational costs. 2. Do not provide any funding contribution and direct staff to prepare a disposition plan for this site. In addition, staff has requested that the YMCA of the Desert examine this site and provide a recommendation of providing preschool services at this or another location if deemed more feasible. The YMCA indicated that they would provide a response concerning this matter in a few weeks. The daycare facility itself also presents various challenges and constraints including it not being originally designed for a childcare center, high roofs leading to increased utility costs, and a roof that prohibits the use of solar panels. If the facility is sold, the City could construct an appropriately designed center in a better suited location from the Childcare Mitigation Fund. Contract No. R24030 Staff Report: Palm Desert ECE Program June 13, 2013 Page 3 of 3 Fiscal Analvsis Approval of this funding request would require a $30,000 appropriation from the Unobligated General Fund, which would be a reoccurring annual cost. If the Palm Desert ECE Program is relocated, the property may be sold at a currently undetermined amount. Submitted By: CITY COUNCnA�`ION • APPROVED DENiED RECEIYED OTHER tephen . Ary , Risk an er MEET G DA Reviewed By: AYES ' � �/ �� NOES: � ABSENTs �� ABSTAIN: VERIFIED BY: Original on File with City erk's Office PaU S. Gibson, Director of Finance/City Treasurer '� By Minute Motion: 1) Approve the request from Desert Sands Unified School District A roved B : to provide $30,000 in operational funding pp Y for the Palm Desert Early Childhood Education Program for FY 2013-2014, with direction to staff over the coming year to work on selling the existing building at Cabrillo and develop a strategy utilizing the Citv's e.xisting �Oh ohlmuth, City Manager Childcare Mitigation Fund to secure an appropriate site and structure. for the Program going forward, particularly to ser.ve Abraham Lincoln Elementar}� School; 2) appropriate �30,000 from the Unoblig'ated General Fund Reserve for thi.s purpose - FY 2013-2014. 5--0 =+r ,: Desert Sands Unified School District , � '" Early Childhood Education Programs Debra Loukatos,ECE Coordinator 47-950 Dune Palms Rd. La Quinta,CA 92253 (760)771-8775 Jan Harnik,Mayor City of Palm Desert 73-510 Fred Waring Palm Desert, California 92260 May 13, 2013 Dear Mayor Harnik: I would like to introduce you to our Desert Sands Unified School District Early Childhood Education (ECE) Program. Our ECE Program currently provides comprehensive preschool service to 490 children of poverty or low income at no or nominal charge to their families within the cities of Palm Desert, Indio and La Quinta. Our goal is to ensure that children who leave our ECE Program are both educationally and physically ready to enter kindergarten. Children who attend our ECE Programs participate in a preschool program which helps them grow mentally, socially, emotionally and physically. We currently lease the Palm Desert ECE Center located on the corner of Cabrillo and Alessandro Streets from the City of Palm Desert. This ECE Center received national accreditation May, 2009 by the National Association for the Education of Young Children and has served over 600 preschool aged children since it opened in September, 2005. Currently, 32 children and their families receive services at this site. Children in attendance at this center primarily live within the Lincoln Elementary School boundaries,which has a free and reduced lunch participation rate of 91%. Our ECE Program has been significantly impacted by the current budget crisis. We are experiencing further federal budget reduction to our program next year due to sequestration which has now made it fiscally impossible for us to continue to operate the Palm Desert ECE Center. The personnel and program costs are feasible but the operational costs are beyond our fiscal resources. The typical operational costs are $30,000 each year. The average annual costs incurred include janitorial service of$8,400, electricity cost of$10,700, cost for water of$1,900, lawn maintenance of$3,847,tree pruning of$800,telephone of$2,296,alarm service of$390 and there is an approximate of$2,000 for general repairs. Our ECE Program is requesting the support of the annual operational costs of$30,000 necessary to continue to provide the preschool services at this facility that is centrally located to families of need and within walking distance for many in the City of Palm Desert. During these times, it is important for us to remain focused on the children and their families in our community which need us most. Your response is needed no later than June 31, 2013 in order for us to make final plans for the 2013-2014 school year.Thank you for your kind consideration and generous ongoing support of our Palm Desert ECE Program. Sincerely, Debra Loukatos, Early Childhood Education Coordinator Cc: Stephen Y.Aryan,Risk Manager Martin Alvarez,Director of Economic Development Cindy McDaniel,Assistant Superintendent,Business Services Michael Wilhite,Director,Supplemental Services