A compromise vote on fee increases last week seemed to calm Menlo Park’s child care debate somewhat, but it appears the City Council has another stormy meeting ahead after the release of a staff report that unexpectedly placed the process that could lead to privatization of child care programs on a fast track.
The new timeline, which could lead to privatization of the programs by next January, will be presented to the council at its May 16 meeting.
City staff had originally told the council that the process for studying proposals, conducting hearings and, potentially, negotiating an agreement putting the programs in private hands would take eight to 16 months — a scenario that would conclude after the November 7 election that could change the makeup of the council.
Although no decision has been made to privatize child care — toddler, preschool and school-age programs now operated by the city in the new Menlo Children’s Center — the programs have been labeled too costly by some residents, including council members Mickie Winkler and Lee Duboc.
Ms. Winkler and Ms. Duboc, whose terms expire in December and who have not yet said whether they will run for re-election, have pushed to privatize the programs to cut the city’s costs, but parents of children in the programs and union officials say a private operator will cut city staff’s wages and benefits.
In April, the council voted to seek bids from private operators to run the programs. The city also will submit a bid.
Under the original timeline, the city would have called for bids no earlier than July. But the new timeline calls for the city to issue a request for proposals by June 14, and potentially enter negotiations with a private operator by September 21.
Under the timeline, the city would also create a subcommittee to draft the request for proposals and review the bids.
City Manager David Boesch said the programs could be transferred to a private operator by early 2007.
‘Completely truncated’
Councilwoman Kelly Fergusson, the only council member to vote against seeking bids from outside operators, was stunned to see the timeline for the request for proposals shortened.“This is completely truncated,” she said. “It’s contrary to what we gave direction on.”
When the council gave direction at a special meeting April 19, council members Winkler and Duboc said the city should be able to determine whether to privatize the child care programs in less than eight months, but Ms. Fergusson said that was not the consensus of the council.
“Why does staff address some council members’ concerns, and not others?” Ms. Fergusson said. “I don’t think staff should be buckling under this kind of pressure.”
Determining costs
Since the April decision to seek bids from private operators, staff has lowered the programs’ projected net cost to the city by about $90,000, prompting parents to ask the council to wait for the results of a cost-allocation study before deciding to raise fees or privatize the programs. The study, set to begin in July, will look at how efficiently the city’s programs are operated.The new estimated net cost is lower due to the ability to consolidate supervision of the programs in the new children’s center, said Michael Taylor, the city’s acting community services director.
He also noted that the city no longer has to pay the rental fees for the portable classrooms that housed the toddler and preschool programs until this month.
City staff initially pegged the programs’ annual costs at about $444,000, but Mr. Taylor said with the newly discovered savings, that figure should drop to about $354,000.
With the fee increases approved by the council May 9, the annual net cost will drop to about $229,000, as the school-age program will nearly recover its costs, and the preschool and toddler programs are at “about 90 percent cost recovery,” Mr. Taylor said.
Council members Winkler and Duboc said even if the city’s child care programs are closer to cost-recovery than previously suggested, privatization should still be considered due to high employee costs.
Parents react
Several parents at the May 9 council meeting challenged the council’s approach to dealing with the child care issue.“Now’s the time to use common sense,” said Mike Gardener, who has two children in the city’s programs. “I’m not rich, but I don’t want a subsidy. I want to pay my share … but raising fees exponentially is not common sense.”
Mr. Gardener noted that no council members attended the May 1 children’s center ribbon-cutting ceremony, and with the exception of Ms. Fergusson, council members have yet to talk to parents about any changes to the programs.
“You’re putting blinders on because you don’t want this program around,” said parent Jeff Staudinger. “Every [city] program has a subsidy … this is all about privatization.”
Increased fees
The council voted last week to raise program fees by 10 percent for the city’s toddler and preschool programs and 7.5 percent for the Burgess school-age after-school program. The new fees will go into effect July 1.Councilman Andy Cohen opposed fee increases and Ms. Fergusson did not vote on the school-age program fee increases because she has a child in the program.
Council members Winkler and Duboc initially pushed for the staff-recommended 15 percent increase for the toddler and preschool programs. After Ms. Fergusson and Mr. Cohen said they would not support that increase, Mayor Nicholas Jellins said the council should reach consensus, and suggested a 10 percent increase.
All council members said the city should continue to fund child care programs in the predominantly low-income Belle Haven neighborhood without fee increases.
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