December 21, 2004 

SUBJECT:       Feasibility of Developing a Business/Child Care Partnership Program (“Study Issue”) 

REPORT IN BRIEF

The purpose of this report is to provide Council with findings from the Child Care Advisory Board (CCAB) 2003 Study Issue: Assess the feasibility of developing a program that would facilitate partnerships between local businesses and Sunnyvale child care providers for the purpose of assisting local businesses with contributing funding, supplies, equipment, or pro-bono services to Sunnyvale child care programs (See Attachment A, Business/Child Care Study Issue Paper).  The purpose of developing such a program is to link local child care providers and Sunnyvale businesses to improve the quality of child care in Sunnyvale.  This report:

1)     Defines business/child care partnerships.

2)     Discusses the feasibility of a business/child care partnership program in Sunnyvale.

3)     Provides options for facilitating a business/child care partnership program in Sunnyvale.

Staff recommends that Council direct staff to provide limited facilitation for a business/child care partnership program in Sunnyvale. 

BACKGROUND

At the 2003 Council Study Issues Workshop, Council directed staff to undertake a study issue introduced by the CCAB, Assess the feasibility of developing a program that would facilitate partnerships between local businesses and Sunnyvale child care providers for the purpose of assisting local businesses with contributing funding, supplies, equipment, or pro-bono services to Sunnyvale child care programs. 

There are approximately 140 licensed child care providers in Sunnyvale, including child care centers, family child care providers and preschools,   serving approximately 5,000 children.    The CCAB developed this study issue based on feedback from child care providers about the difficulties they face with securing resources to improve the quality of their programs.  The CCAB believes that a business/child care partnership program has the potential to impact the quality of child care in Sunnyvale.

EXISTING POLICY

General Plan Socio-Economic Subelement Goal 5.1H.1:  Support efforts to increase the availability, quality and affordability of child care in North Santa

Clara County.

General Plan Community Participation Subelement Policy 7.2B.5:  Foster partnerships and relationships among public institutions, business and industry, community and service organizations, and the City to address community issues.

General Plan Socio-Economic Subelement Action Statement 7.1H.1a:  Support involvement of employers in the provision of child care services for their workers.

DISCUSSION

The purpose of developing a voluntary business/child care partnership program is to improve the quality of child care in Sunnyvale. 

What is a Business/Child Care Partnership?

A business/child care partnership is a collaboration between businesses and child care providers to leverage resources in order to improve the quality, availability or affordability of child care.  Business/child care partnerships are typically facilitated by a nonprofit agency and are established to coordinate business contributions (funding or resources) to child care providers.  (See Attachment B, Examples of Business/Child Care Partnership Programs, for a description of model business/child care partnership programs and their costs and benefits.) 

For example, in Charleston, West Virginia the nonprofit organization, West Virginia Kids Count Fund, matches local businesses with child care centers.  The participating businesses contribute resources to the child care centers including funding, supplies, office furniture and technical support.  Although the CCAB was interested in business/child care programs facilitated by local governments, staff was unable to locate partnerships of this type. 

Benefits of business/child care partnerships include the following:

• Child care providers receive much needed resources to improve the quality of child care.
• Businesses become more involved with their community and can contribute to the child care providers utilized by their employees.

Feasibility of a Business/Child Care Partnership in Sunnyvale

In determining the feasibility of a business/child care partnership program in Sunnyvale, staff conducted a survey with Sunnyvale businesses and licensed child care providers (See Attachment C, Sunnyvale Business Survey, and Attachment D, Sunnyvale Child Care Provider Survey).  In general, results indicate that businesses with employees who have children in child care are more likely to participate in such a program than businesses with employees who do not have children in child care, regardless of size or type of business.

Results of Sunnyvale Business Surveys:

• Surveys were sent to approximately 300 Sunnyvale businesses with ten or more employees; 30 surveys were completed.
• Seven businesses indicated they were interested in participating in a voluntary business/child care partnership program.  One business indicated they might be interested. 
• The seven businesses which were interested in the program indicated that they could contribute resources to child care providers such as computers, high chairs, and educational toys and games.
• 22 businesses indicated they were not interested in participating.  These businesses indicated that their employees did not have children in child care in Sunnyvale, that their employees did not have young children, or that the program was not a good match for their business.  

Results of Child Care Provider Surveys:

• Surveys were sent to approximately 140 licensed child cares in Sunnyvale; 36 responses were completed.
• 35 out of 36 providers indicated they were very supportive of the City developing a business/child care partnership program.  One provider not interested in participating. 
• Requested resources included computers, children’s equipment such as high chairs and strollers, funding for enrolling in college-level early childhood development classes, and educational toys and games. 

Options for a Business/Child Care Partnership in Sunnyvale

Option #1:  A Business/Child Care Partnership Facilitated by a local nonprofit agency

Under this option, a business/child care partnership program would be facilitated by a local nonprofit agency.  The nonprofit would facilitate the collaboration between Sunnyvale child care providers and local businesses, and coordinate the donation of needed resources from the businesses to child care providers.   The Child Care Resources Manager would meet with local non-profit child care related agencies, share the research and survey that were completed for this study issue, and encourage a non-profit to consider facilitating a business/child care partnership program in Sunnyvale.  This would comprise approximately 20 hours of the Child Care Resources Manager’s time at a cost of $1,188.

Staff Analysis:  Staff believes that it would be very difficult for a Santa Clara County based non-profit agency to develop and sustain a business/child care partnership program at this time due to the economic constraints that many non-profit agencies are facing.  In addition, most child care related non-profit agencies serve child care providers throughout the County, which would dramatically increase the size and cost of the project. 

Option #2:  A Business/Child Care Partnership Facilitated by the City of Sunnyvale

Under this option, a business/child care partnership would be facilitated by the City of Sunnyvale, Child Care Resources Program.  The Child Care Resources Manager would coordinate the donation of needed resources (computers, educational toys/games, etc.) from local businesses to child care providers. 

A model that could be used to accomplish this City-facilitated business/child care partnership is DonorsChoose.  DonorsChoose is a web-based non-profit organization that facilitates citizen and private sector contributions to fund projects that local elementary and secondary school teachers cannot financially support.  At the DonorsChoose website (www.donorschoose.org), teachers can post a student project and list the materials needed to make it possible.  Potential donors can browse the DonorsChoose website, and if they so choose, make a tax-deductible contribution to fully or partially fund a project.

Using the DonorsChoose model, the City’s Child Care Resources staff would develop an online “wish list” linked to the City’s Child Care Resources web page.  The “wish list” would describe resources (computers, educational toys/games, etc.) that child care providers would like to add to their program, and how these resources would directly benefit the children in child care.  Businesses would have the opportunity to review the “wish list” on-line, and if they so choose, contribute directly to a child care provider.  The actual exchange of resources would be arranged between the businesses and the child care providers.  Although the program would be marketed to the business community, any individual or organization could have access to the “wish list” and contribute if they so chose.

The City’s role in facilitating a business/child care partnership modeled after DonorsChoose would be:

1)     Coordinating a “wish list” by gathering information from child care providers about their needed resources, and how these resources would improve the quality of their child care. 

2)     Publishing the “wish list” on the City’s Child Care Resources web pages for businesses and other potential contributors. 

3)     Recognizing businesses and other donors who participate in this program via the City’s Web site and the Quarterly Report.

4)     Marketing the child care provider “wish list” by:

·         Having information about the program available at various locations including the One-Stop Desk, Sunnyvale Library, Community Center, and Chamber of Commerce

·         Posting information on KSUN

·         Posting a banner on the City’s external website

·         Writing press releases for local newspapers

·         Posting information on the Child Care Resources web pages

·         Including articles in the City’s Economic Development Newsletter

·         Including articles in the City’s Quarterly Report

Staff Analysis:  The costs and benefits of the City facilitating a business/child care partnership program are listed below.  The approximate cost to the City to facilitate such a program using this model is $11,125.  Staff believes that, given the City’s current budget constraints, the current business climate, the major role the City would play under this model, and the potentially limited number of child care provider beneficiaries, it would not be cost-effective to facilitate such a model at this time.    

Option #3:  A Business/Child Care Partnership with Limited Facilitation Provided by the City of Sunnyvale  

Under this option, a business/child care partnership could be developed with limited facilitation provided the City of Sunnyvale, Child Care Resources Program.  This partnership model would be similar to the City’s adaptation of the DonorsChoose model discussed under Option #2, A Business/Child Care Partnership Facilitated by the City of Sunnyvale, with fewer City staff hours dedicated to facilitating the program.

The City’s role in providing limited facilitation to a business/child care partnership would be:

1)     Coordinating a “wish list” by gathering information from child care providers about their needed resources, and how these resources would improve the quality of their child care. 

2)     Publishing the “wish list” on the City’s Child Care Resources web pages for businesses and other potential contributors. 

3)     Providing limited marketing of the “wish list.”

Staff Analysis:  The costs and benefits of the City providing limited facilitation to a business/child care partnership program are listed below.  The approximate cost to the City to provide limited facilitation for such a program is $1,631.  Staff believes that given the City’s budget situation, this model would be a cost effective way to implement a business/child care partnership program in Sunnyvale. 

FISCAL IMPACT

Option 1:  The approximate fiscal impact to the City of Sunnyvale to encourage a local nonprofit agency to facilitate a business/child care partnership is $1,188.  Costs include 20 hours of Management Analyst staff time.  The 20 hours needed to implement such a partnership could be accommodated by the Child Care Resources Program, which is currently under review.

Option 2:  The approximate fiscal impact to the City of Sunnyvale to facilitate a business/child care partnership is $11,125.  Costs include approximately 150 hours of Management Analyst staff time, and 50 hours of Senior Office Assistant staff time.  The 200 hours needed to implement such a partnership could be accommodated by the Child Care Resources Program, which is currently under review.

Option 3: The approximate fiscal impact to the City of Sunnyvale to provide limited facilitation for a business/child care partnership is $1,631.  Costs include approximately 20 hours of Management Analyst staff time and 10 hours of Senior Office Assistant Staff time.  The 20 hours needed to implement such a partnership could be accommodated by the Child Care Resources Program, which is currently under review.

Conclusion

Business/child care partnership programs are largely managed by child care related non-profit organizations – not local governments – to improve the quality of child care.   The City could adapt the DonorsChoose model to the child care community by coordinating, marketing and publicizing a child care provider “wish list”.   Staff believes that, given the City’s current budget situation, the City’s role in facilitating a business/child care partnership should be limited. 

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.  This report was also reviewed by the Child Care Advisory Board at a Special Child Care Advisory Board Meeting held on December 14, 2004. 

ALTERNATIVES

1.       Council directs implementation of Option #1: A Business/Child Care Partnership Facilitated by a local nonprofit agency.

2.       Council directs implementation of Option #2:  A Business/Child Care Partnership Facilitated by the City of Sunnyvale.

3.       Council directs implementation of Option #3:  A Business/Child Care Partnership with Limited Facilitation Provided by the City of Sunnyvale. 

4.       Other alternatives identified by Council.

RECOMMENDATION

Staff recommends Alternative 3, that Council direct implementation of Option #3, A Business/Child Care Partnership with Limited Facilitation Provided by the City of Sunnyvale. 

The Child Care Advisory Board supports the staff recommendation in this report (Attachment E, Draft Child Care Advisory Board Minutes from December 14, 2004).

Reviewed by:
Coryn Campbell, Neighborhood & Community Services Manager

Prepared by: Kristen Nigriny, Child Care Resources Manager

Approved by:
Amy Chan

City Manager

Attachments

Attachment A, Business/Child Care Study Issue Paper

Attachment B, Examples of Business/Child Care Partnership Programs

Attachment C, Sunnyvale Business Survey

Attachment D, Sunnyvale Child Care Provider Survey

Attachment E, Draft Child Care Advisory Board Minutes from December 14, 2004