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centers, the two Child Care Centers to be closed were those located <br />at Paul J. Rogers and Cooley Schools because they were not under <br />the grant umbrella. There was discussion on transportation of <br />students to other centers, the liability, the anticipated savings <br />of $123,752 for reduction of five site supervisor positions to <br />part-time status, and the alternative options. Coordinator Fretz <br />stated that parents, teachers and she were here to request that <br />City Council fund the program from the general fund so that the <br />centers can remain open and the staff intact. <br />Director Anstine identified Option 3, which included an 8% fee. <br />City Attorney Biggs advised that it is not possible to increase <br />fees at this time as proper notice is required and this would <br />require that the City Manager return the item to Council for public <br />hearing. Councilmember Bennett inquired why the employee <br />discount/ promotions were not included under Option 3. Director <br />Anstine stated that these items were never allowable and were <br />immediately terminated. <br />After lengthy discussion, City Attorney Biggs advised that City <br />Council did not have to take action at this time and that it could <br />direct staff. With consensus of Council, Mayor Gonzales declared <br />that the motion died for lack of action and further directs the <br />City Manager to investigate the question of providing funds for <br />this program. <br />Agreement - Child Care <br />Recreation and Human Services Anstine reported that in January of <br />1988 the City had entered into an agreement with the State <br />Department of Education to provide latchkey child development <br />services to the community. The contracts are renewable each fiscal <br />year. <br />In 1994-95 the latchkey program contract will offer $115,979 to the <br />City and will provide subsidized fees for seventy-five families. <br />In 1994-95 the alternative payment program contract will offer <br />$113,659 to the City and will provide subsidized fees for 30 <br />families. <br />Director Anstine stated that for the last two years the program has <br />suffered deficits in the amount of $55,000 annually due to high <br />overhead charges by the City. Additionally, he declared the <br />program has been operating in non-compliance with the State <br />Department of Education for not adhering to mandated regulations of <br />regular site visits and sharing of information with the daycare <br />homes. He stated the program is burdened with too many centers and <br />staff shortages. <br />Director Anstine recommended the elimination of this contract to <br />allow the child care program to focus on center -based programs and <br />-- move into compliance with the Department of Education, while <br />8 <br />JUN 21 1994 <br />