August 24, 2004

SUBJECT: Update on Proposition 10, Status of Services Resulting from Tobacco Tax Funding for Children Aged 0-5 and their Families

REPORT IN BRIEF
This report provides an update on services that Sunnyvale residents will soon be receiving as a result of Proposition 10 funding (tobacco tax funding), and requests Council direction regarding the City's role in facilitating the implementation of these services.

As referenced in previous memos to Council (in an effort to keep Council updated on Proposition 10, staff submitted Memos to Council on January 24, 2003 and June 17, 2003), Child Care Services staff has worked with First 5 Santa Clara County (the agency that administers Proposition 10 funds in Santa Clara County) to engage Sunnyvale parents and community members in identifying desired services, and allocating Proposition 10 funding. Now that the services have been identified, funded, and assigned to specific agencies, staff is recommending that its role regarding Proposition 10 shift accordingly.

Staff proposes shifting its role to one of monitoring service delivery in Sunnyvale, and cooperating with agencies to facilitate the delivery of services. Agencies awarded contracts to implement the new services are requesting the following types of assistance:

• Briefing agency staff on Sunnyvale programs and services;
• As resources allow, providing information and informational materials on local services for families with children ages 0-5;
• Referring families in Sunnyvale that might benefit from services;
• Providing consultation and advice on best geographical area site locations for service delivery in Sunnyvale.

Staff recommends that the City of Sunnyvale cooperate with these requests as needed, since the assistance is consistent with the activities of the City’s Child Care Resources Program and will be absorbed in this year's operating budget.

BACKGROUND
In November 1998 California voters approved Proposition 10, which established a 50-cent tax on tobacco products from which an estimated $700 million will be collected statewide each year. Proposition 10 funds are intended to promote, support and improve early childhood development from the prenatal stage through five years of age.

First 5 California is a State of California Commission that was created to oversee the administration of Proposition 10 funds statewide. To assist in the allocation of Proposition 10 funds, county commissions were formed in all 58 counties in California. County commissions are appointed by the board of supervisors for each county. First 5 Santa Clara County (herein referred to as "First 5") was created to allocate approximately $25 million annually in Santa Clara County (see Attachment A, Fact Sheet on Proposition 10, for additional information on Proposition 10).

To engage the community in identifying desired services and making funding allocations, First 5 created Regional Partnerships throughout Santa Clara County. Regional Partnerships are composed of city, agency, and community member representatives from specific geographical areas. Sunnyvale is part of the First 5 North Regional Partnership (herein referred to as "the Partnership") which includes Sunnyvale, Mountain View, Los Altos and Palo Alto. The Partnership’s mission is to engage the community in the development of services that would serve the local needs of the prenatal through five population and their families.

The Partnership worked for nearly two years and identified four initiatives. In June 2003 the Partnership presented three of these initiatives to the First 5 Santa Clara County Commission (herein referred to as "the Commission"). The Commission unanimously approved the three initiatives, made budget recommendations, and commended the Partnership for designing creative, worthwhile initiatives. Since that time, the Commission has approved a fourth initiative. All initiatives, which are detailed in the Discussion section of this report, will serve families with children prenatal through age five in Sunnyvale, Los Altos, Mountain View, and Palo Alto, and are funded for one year. Following each year of funding, the Partnership and a Community Advisory Committee will evaluate each initiative's performance, and will determine if funding should continue for the next fiscal year, or if a different initiative should be developed. The membership of the Community Advisory Committee will be determined by First 5.

EXISTING POLICY
General Plan Goal 5.1H.1 Support efforts to increase the availability, quality and affordability of child care in North Santa Clara County.

General Plan Policy 5.1G.1 Encourage the co-location of health and social service providers in Sunnyvale to facilitate the availability of such services.

DISCUSSION
From December 2001 through October 2003, Kristen Nigriny, City of Sunnyvale's Child Care Manager, participated on the Partnership’s Coordinating Committee, and engaged Sunnyvale's parent and child care community in the Partnership’s activities. Sunnyvale child care providers and parents have been active Partnership members. The city and community members of Palo Alto, Mountain View and Los Altos were also active participants.

Through a collaborative and community focused effort, the Partnership allocated Proposition 10 funding to support four initiatives that will serve all four cities in the Partnership. The initiatives are as follows:

Agencies Request Cities' Cooperation
Three of the agencies listed above have requested that city staff provide cooperation and limited assistance with the implementation of services in each city. Requested assistance includes:

• Briefing agency staff on Sunnyvale programs and services;
• As resources allow, providing information and informational materials on local services for families with children ages 0-5;
• Referring families in Sunnyvale that might benefit from services;
• Providing consultation and advice on best geographical area site locations for services in Sunnyvale.

Conclusion and Recommendation
The City of Sunnyvale has successfully engaged the Sunnyvale community in the Partnership’s activities. The Partnership has allocated the Proposition 10 funding to four initiatives that will soon be serving Sunnyvale residents.

The next phase of staff participation includes cooperating with contracted agencies as listed above, and monitoring their performance to help ensure that Sunnyvale residents receive Proposition 10 services. Staff recommends that the City’s future involvement with Proposition 10 efforts be focused on these activities.

FISCAL IMPACT
There is no fiscal impact associated with this report. Assistance activities are in alignment with Child Care Resources performance objectives and will be absorbed in the FY 04/05 operating budget.

PUBLIC CONTACT
Public contact was made through posting of the Council agenda in Public places, on the City’s web page, and the publication of the general business/ public hearing items in the San Jose Mercury News.

ALTERNATIVES
1. Direct staff to shift its role to focusing on monitoring of service delivery to help ensure that Sunnyvale residents receive Proposition 10 services, and provide limited assistance to contracted agencies by:

• Briefing agency staff on Sunnyvale programs and services;
• As resources allow, providing information and informational materials on local services for families with children ages 0-5;
• Referring families in Sunnyvale that might benefit from services;
• Providing consultation and advice on best geographical area site locations for service delivery in Sunnyvale.

2. Direct staff not to assist in the facilitation of Proposition 10 services.

3. Other options as directed by Council.

Staff recommends Alternative #1 as described above.

Prepared by:

Kristen Nigriny
Child Care Resources Manager

Reviewed by:

Coryn Campbell
Neighborhood and Community Services Manager

Approved by:

Amy Chan
City Manager

A. Fact Sheet on Proposition 10 (.doc format)