CR 88-113 Executions Greater Minneapolis Day Care
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June 13, 1988
Council Report 88-113
EXECUTION OF GREATER MINNEAPOLIS
DAY CARE ASSOCIATION CONTRACT
Propodeg Action.
staff recommends adoption of the following motion: Approval of
Resolution Authorizinq Execution of Public Service Agreement for Da{
Care Serviqe Witq Greate~ Minneapolis Dav Care ASSociat;on ~
~ythorizina Assign~ent of the A~reement.s Administ_ation
Responsibilities to Hennepin County.
This recommendation will allow the Greater Minneapolis Day Care
Association to begin using' Hopkins CDBG funds on July 1 in conjunction
with their program.
OVerview.
Recently the Cit.y approved the allocation of $10,000 in 1988 CDOO
dollars to the Greater MinneapOlis Day Care Association Day Care
Subsidy PrQCJr8m.
In conjunction with the funding of this program! the city is now being
requested by the County to approve a resolution which accomplishes the
following:
- authorize execution of an agreement with the Greater
MinneapOlis Day Care Association
- authorize Hennepin County to administer the program
~ary Issues to Consider.
- Is there any benefit to administering the program through
the City?
Will Hopkins residents benefit from the program?
supportinq Information.
- Summary of Child Care Subsidy Program
- Public Service Agreement
-, /J R ,- olution
~ e~~~,
Planning & Economic
Development Director
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Council Report: 88-113
Page 2
Analysis.
Based on the proposal recommended, the City council has the following
issues to consider:
Is there any benefit to administering the program through the City?
Allot the other cities involve.d in this program are administ:ered
through the county. Most of their involvement is from a financial
stand.point. It would seem that they have the most expertise in
dealinq with the program in this area.
Will Hopkins rasidents benefit from the program?
The money that the City has allocat.ed to the program will be used
exclusively for the day care needs of Hopkins residents.
Alternatives.
1. Approve the resolution. If approved, the necessary
documentation will be executed with the program
imp1ementation beginninq July 1.
2. Deny the resolution. The Council will need to provide
the staff with a s:pecific di,rection they wish to be
pursued.
3. continue for additional information.
~eco11UUendation.
Staff reoommends Alternative No. 1
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CHILD CARE SLIDING fEE
KElps 10';11 to tTOderate inc.ome hmiltes. stabilize their cost of child tare
so that they tl" (onUnue working or ,omplete tratntnq programs.
Why Ire COB; funds needed?
Existing programs funded throug~ Hennepin County and the State Sliding fee
program have not been funded adequately. Families..,t\Q qualH)' for the program
m~st wait four to twelve !Dnths in order to rece1~e help. lhe child care tax
credit is not e~ou~ to meet the needs of low income single parent families.
GH'C~ presently has a waiting list of over 200 fa~,'ie~ outside of the City of
~inneapolis wno are either ~ot eligible for exist;~g progra~s or (a~not be
served ~ec~use of lac( of funds.
I-t)w do the COBG programs help?
.Ci)a~ f.;r.1s ar-e use1 IS & f.lntji-'tg of last resort for h:nilies ..no fall ')E:~~eell
tle cra-:(s of eli9i~ility, or WOJld ~e o~ a lo"~ wa,i~~1\9 list f~r h~';J frem
ther prJ~ra"'ls. :'l~n:)ug" eat" tity.S progra:'1 is re1a~iyely s-.al1. tl)~t~er
t~ey maite up Si9"ifi:a"lt st')P3l~ 1:J"l:H"g for I'IIO'\,)' fc"'Hies.
lbw does the program 'JCrk?
In order to ~e eligi~le a families inco~ mJst be under HUn section 8
guidelines a~d all parents ~ust ~e working or attendi~9 SC~O)' 20 hours or
more per wee(. T~e family selects their ow~ child {are arr~~gernent. If t~ey
need help in finding a program they are referred to t~e Chi11 Car~ l~formation
Ne!.work. fal!\i"e~ may change programs at afiY time ttley wish.
Families pay a portion of the cost of child care based on the fee schedule
developed for the state sliding fee prC9fam. lhe s'idi~9 fee program pays the
rem~inder of the cost up to a limit established each year thro~gh a State
Department of Jo~s and 'Training study of is\Ierage costs of care. in order to
receive child (are subsidy a single parent must attempt to collect any child
sup~rt due them through Hennepin County Child Supp:>rt and Collections.
Eligibility is renewed every six nonthS. Parents are required to p~y;d~ II
signed written statement of income and situation,as wel' as b~(~~P
documentation from emp'oyers. school, etc. to show their income and
work/training statu).
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Js ther~ ~ dupJ1,.tton of effortl
0- Ctllld tire rundlng Is a Pot,tI..rk or program. fro. ..rlou. funding .ouroe.
-"ith d1fre..nt eligIbility g"ldeltn.., GlIDeA "'.... to .ort out fundIng
oPtIon. for pa..nt., pa..nt. <Ill GH3CA or or. ..r....d to u. by the Child
Car. Infor...tlon "et...rk. r"lly day .ar. ho..... ..nlers, or other agentl...
Co"nty and Stote funding .our... are U.ed ""ene..r posslbl.. If I fa"fly to
not able to g.t .ther f"nding, COBG fund. are ".ed. llan." are ...In,talned On a
w'ltlng li.t In the order Of their .all. Thl. ll.t i. Upd.tld three ti... per
y.... A. mon.y b....... ..anable famllie. are <ontact.d In order to ..rlfy
t~elr current situation and eligibility.
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t,. a"u,t a family mu.t tOntribut. is ba..~ on their gro.s intome plu. .hild
SltP:x>rt. In general, the Sliding fee Scale "eq~;res a minimum payment of
· ~ut 130 per I10nth fro", f omil ies ,",,0 a re be low 60. 0 f toe . tate ll1l!dian I n<o,.,
(5HI) for thei r · I,. f.mi ly. 60s SMI I. need.~ to <0 ver the b..it liui ng nee~s
of a f .mil y. As f a"'i 1 y I ncome Increase.. the a", un t the par.,ts must pay for
to it d tare in th is p,"" gram r i ies a!lou t 15< ro r hery 11 they are 0 YOr ttle 6:l'l
SHZ fi gure, The re... ini ng 7Sc goes to pay h f gher ta 'e. and pm .ide an
l'lcel'ltive for the family to continue to improve their ~ituation. As a
"mily', Into"" apProaches the Section 8 limit they are usually paYing nearly
a 11 Q 1 t n e co s t of the; r ell i1 d care.
Present 1,)1 the 601; SMI and (~ction 8 gross annual i r\CO me levels are as follows:
Monthl y Month 11
Famil y size .601 SMI LPa rent fe~} Section 8 (Pare": ",;.)
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Family of 2 $12.560 ($23) $22.000 ( $ 32 7 )
Family of 3 $15.516 (S28 ) 124,750 ($279) "
Faml1y of 4 $18,471 ( S 29 ) $27.500 ( 1290)
How much subsidy does each fa.fly receive?
th. sub.idy Is tailored to eath fa..lly's .ituation. Child .are co.ts for a
family .ary widely a"Ording to the number of Chlldre.. their ago, and the
nUrDer of hours in tare. After school COre for one child ",y cost IS little
as S3 per day while tull tl"" tare for t.., thildr.. may be O..r 530 per day.
~"Y fht 'ubSldy a"'unt """ld be o.erly generous for so"," families and not
O1ough to ma~e the difference for others, t~e "'''unt of 'u"Idy depen1s 6ft
t'. cost or tare nee1e1 and the ~""nt a family Can pay as d.termined by t~e
S1id~n9 fee scale.
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What i~comes receive su~sidy and how does the Sliding fee 'Crt?
T.. '11110g fee .tale i. ba.ed on the St.te ~dfa' J.co~ (S~ll woi.~ ;s
'djusted for fa",ily size, SMI i. t~e POint at w'i.h half of the families In
t" state with t~e same family .Ize earn 00... and half .arn 1.... the amount
~s updated annually by the federal governme~t.
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4. [)e-scription
1) Need - Many low and nuderate income families are single parent
families or have t~ parents """'0 are working or in school. When these
families have young children the cost of child care ~y create I
disincentive ro continue to work or pursue training. According to 1980
census data 57X of all Richfield "'Omen with children under sh were in
the labor force. 541 of these al"e single parents. In 1980 the median
1ncxHne for ft!l1lale he!ded single parent faml1ies was $6.901.
In ,order to work or pursue training families need dependable child care
at il cost theyu,. afford. Many low and noderate income fUl111es cannot
receive help from existfng child cane subsidy programs because they do
not meet specific program eligibility requirements. or because there are
wafting lists due to insufficient funding. As of Feb. 1987 there are
sixteen Richfield families on GMDCA's waiting list for child care
assistance who cannot be helped because of lack of funds.
2) Project - The child care Sliding fee program subsidizes child care
costs for low and ITDderate income families when parents are working or
in school. The amount of subsidy varies on a Sliding fee according to
family size and income. Parents using the program choose their..own
child care arrangement. Such a program stabilizes the cost of child
care at an affordable level for families while making maxilQ~m use of
Subsidy dollars. The program allows parents to conHnue to work or
' participate in training programs.
3) Implementation - The City of Richfield will contract with Greater
Minneapo lis Day Care Association (GMDCA). a tax exempt. non~profit
organization, to administer the Sliding fee chi~d care program. GHOCA
also administers Such programs for other municipalities and a portion of
the State Sliding Fee program for Hennepin COunty. Parents apply
directly to GMDCA. Families must verify their income as well as their
work or training status When they begin the program and at least every
six months thereafter. Families are helped on a first come first serve
basis. GMOCA provides a co-<Jrdinated way to help families needing child
care assistance Which maximize the use of other potential subsidy
programs for famil ies.
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RlBUc SERVICES ~
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'Ibis agreement nade aJ"Id E!1'rt:er13d into by and between the City of
, hereinafter refarred to as the "City' ani Greater
Kinneapolis Oily Care, a pmlic service aqercy, hereinafter referred to as the
II Agency" ,
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~, the City is an authoriZEd ~tirq lmit in the Ulban
Hennepin County ChmIlnity DsI1e.l~ Block Grant ~ by virtue of a joint
~J.C1tiQ'1 agt'eaDertt executed between the City am Hennepin CaJnty p.u:suant
to !oEA 471.59, am
~, the City has allocated Year XIV O.rban Hennepin COUnty C:JlmJnity
Devel.qment Block Grant funds for the ~ of ~ the Orlld Care
Sli.d:irr;J Fee program administered by the kJen,-y,
!Of 'IHEREfiU<t;, in OCXlSideration of the 1II.1t:ual covenants ani prm.ises
a:>nta.i.ned in this 1q1.a=u~ut, the parties hereto nutually agree to the
follcwinJ tenDs ani ocn:iiticms:
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1be City aqJ:ees to provide _ dollars frail the Urban Hennepin camty
Cnnftndty Cevel.~lt Blcx:k Grant to the 1qerr::;y in sut:POrt of the Child Care
Sli.d.in} Fee Pl-"'OgLaaa.
'!be City resezves the right to assign its administrative respotlsibUity,
plI"SUant to the ~ of the Url:;en Hennepin ca.mt-.1 O:Imun:ity I)Nelopnent
Block Grant P1~L4III, to any other cxxperatirq unit.
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'Ihe Agency agrees to provide the City or its assignee:
1. A financial statem:!nt for the past full year.
2. A statement of PJblic reve.'1Ue soorces for the period June 1, 1987
~ June 30, 1988.
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'!he h:Jercj agrees to award tun:ls to eligible c3f.Plicants residi.rq in the City
on a first o::m::! first servoo basis with maint.ena.rla:! of a waitirq list of
eligible applicants.
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Pt:mllc Services Agreement
DlyoL.'""e
Page 'nolo
IV
'Ib9 1q!rcy agrees to allocate f\.n!s to eliqihle recipients based on the state
of Ki..nnesct.a DepartJDent of Public welfare Slidirq Fee Scale with the u. s.
Department of Hcusirg ard Url::lan DeYel~ Sectioo 8 iD.::axwa limits used as a
ceilirg o..rtoff for eligibility.
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'ltJe ~ provides ~ that it will o::mply with:
~. Ar.1mini.strative reportin;J requi.mments of the CDmt:y.
2. Title "'1: of the Civil Rights Act:. of 1S64 (PL88-352).
(Ncnti.scriminaticn in }nVYLcJDI. or activities receivi.n;J federal
financial assistance.)
3. sectia'l 109 of the KaJsi.n:J and <kDlImity Developoent Act of 1974 as
amerded. (Nc:n1i.sc:rim:itic:n in any pxogram or activity subject to
pravisicn of the HCDA.)
4. am CiIcular A-102 Attad1Delt 0, 5ectioo 14, pa.rag:ratil (h) by
assuri.n; the grantee, fa:ieral grantor aqetrCf, the' CcIlpt:roller
General of the United States or art! dllyauthorized representative
aCXJeSS to all records d.i.rectly pertinent to this <D1trac:t for the
purpose of maJci.D:I aulit ~.mU.natic:n( excerpts, an:! transcriptions.
s. am Ci:toJ.1.ar A-I02 Att:ad1ment C(2), an:i mai.ntain all re:pired
1"eCX)Ms for it period of three yean; after moaivirq final payment.
6. CMB Ci:ttular A-8? "0:Jst Principles for state an:i Iccal Government,.
:% am Circular A-122 ItCbst Principles far Non Profit", as
~iate.
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'!he 1qen..:y, prior to finan:::ial re:inb.1rseme.nC, shall provide the city or its
assignee with:
1. Individual D:ita confiden'-~ity fom.
2, Listin:;J of clients, their adjresses, am annmt of ass~ per
client.
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'Ihi.s AgreEmmt is effective as of July 1, 1988, an::! shall continue in full
fon::e and effect until all furrls made available tU'rler this AgreerrEnt have been
e.xpen.:led in aCCX)~ with paragraJ;:hs I -VI, b.1t no later than December 31,
1989.
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I?Ublic services ~4t
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IN ~ ~F, the parties hereto have set their hanis ani affiY.sd
their seals this day of , 19_.
Upm p-rcper exsc:ut.ian, this Agleement will be le;Jally valid am bi.~i:a;;.
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GRF.A7m MDtiFAroLIS 0t\Y CARE
J\SSOCIATIQi
Cl'lY OF
S'lME oF !aNNE3JrA
By /1,-#1' ;j.--c-~~
Its ExBcutive Di.rectar
By
Its Mayor
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO: 88-52
RESOLUTION AUTHORIZING EXECUTION OF PUBLIC SERVICE AGREEMENT
FOR DAYCARE SERVICES WITH GREATER MINNEAPOLIS DAY CARE
ASSOCIATION AND AUTHORIZING ASSIGNMEMT OF THE
AGREEMENT'S ADMINISTRATIVE RESPONSIBILITIES TO
HENNEPIN COUNTY
WHEREAS, the City of Hopkins has executed a Joint
Powers Aqreement with Hennepin county, thereby aqreeinq to
participate in a grant application under the Urban County
designation provided for in the Housinq and community
Development Act of 1974: and,
WHEREAS, part of the authorized activity for Year
XIV is the support of daycare services through the
administrative agency known as the Greater Minneapolis Day
Care Association; and
WHEREAS, the Community Development Block Grant
proqrUl as administered throuqh the Urban Hennepin County
requires that each city funding daycare activity with
Communi ty Development Block Gra.nt monies must enter into a
Public Service Agreement with the Greatey. MinneApolis Day
Care Association; and,
WHEREAS, the Public Service Aqreement with the
Greater Hinneapolis Day Care Assooiation allows the city to
authorize Hennepin County to discharge the responsibilities
of the City regarding the adll1inistration of the daycare
proqram:
BE IT RESOLVED, that the Mayor and the City of
Hopkins are authorized to execute ar! Agreement wi th the
Greater MinneapOlis Day Care Association for child daycare
services for Year XIV of the Urban Hennepin County Community
Development Block Grant program;
BE IT FURTHER RESOLVED, that Hennepin County
through its Office of Planning and Development be requested
to directly discharge the responsibilities of the city
regarding the administration of this program for Year XIV,
as provided for in the Public Service Agreement.
Donald J. Hilbert, Mayor