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Report regarding the status of design development for a new licensed preschool facility in the Westborough neighborhood. (Greg Mediati, Deputy Director of Parks and Recreation and Philip Vitale, Deputy Director of Capital Projects)
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RECOMMENDATION
Recommendation
It is recommended that the City Council be apprised of the status of design development for a new licensed preschool facility planned for the Westborough neighborhood and provide direction to staff.
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BACKGROUND/DISCUSSION
The Childcare Program is one of seven program areas within the Recreation Division of the Parks and Recreation Department. The Childcare Program serves nearly 1,200 children and young adults annually through its three licensed preschools, four licensed After School Recreation Programs, two State grant-funded REAL (Recreation, Enrichment and Learning) Programs, and seasonal and special needs camps.
The three preschools are licensed by the State of California’s Department of Social Services Community Care Licensing Program. This includes Westborough Preschool, Siebecker Preschool, and Little Steps Preschool located at the Community Learning Center. The preschools operate Monday through Friday, 7:30 a.m. to 6:00 p.m. Westborough Preschool, with a capacity of 59 children, and Siebecker Preschool, with a capacity of 55 children, are full fee-based programs. Little Steps Preschool, with a capacity of 20 children, is grant-funded by the Big Lift initiative, whereby qualifying participants can enroll at a greatly reduced cost or at no cost at all.
Full fee-paying participants are assessed a monthly fee of $657, while Little Steps Big Lift Program participants pay between $0 and $350 per month on a sliding scale based on household income, with an average tuition of $96 per month. In contrast, the average cost for preschool care in San Mateo County is $1,820 per month.
For the purpose of this report, information prior to the COVID-19 pandemic is being used to demonstrate the community’s need for childcare services, since the true impact of COVID-19 on childcare supply and demand remains to be seen. In addition, the City’s childcare operations during COVID-19 continue to evolve over time.
Waiting List for City-Operated Preschools
There are over 700 children on the City’s preschool waiting list, including unborn children, and approximately 200 families are added to the list each year. To get on the waiting list, families just need to complete an application and pay a $31 nonrefundable waiting list fee. The waiting list is maintained in the order the application was received, and rolls over year to year. Being on the waiting list is not a guarantee of entrance into the program. While enrollment can take place at any time over the course of a year, movement off of the waiting list typically takes place over the summer, as approximately 60 to 70 children graduate to kindergarten. Staff also purge the list regularly to remove children who have turned 5 years old and would be old enough to attend kindergarten.
Childcare Budget
Prior to COVID, the Childcare Program operated on a $3.9 million General Fund operating budget and a revenue budget of just over $3 million. The program is also supported by two grants, both of which have been committed in full and without interruption during the COVID-19 pandemic. One grant is the After School Education and Safety Grant (ASES) in the amount of $247,695 per year. The ASES grant funds the REAL (Recreation, Enrichment and Learning) After School Program at Martin and Los Cerritos Elementary Schools. The second grant is the Big Lift Grant in the amount of $220,000 that funds the Little Steps Preschool. Both grants have been in place for the past several years.
Childcare Impact Fees
In the late 1990s and early 2000s, the City recognized the growing shortage of high-quality affordable childcare options locally with increased development. In 2001, the City Council approved Chapter 20.310 in the South San Francisco Municipal Code, which sought to help address the growing shortage by collecting impact fees from future commercial and residential developers to fund the development and expansion of childcare facilities in the City’s major employment areas. The City requires the funds only be utilized for capital costs to establish new spaces for childcare, not toward operational costs such as paying for staff. Revenues raised from developments may be used for the following:
• Building new childcare facilities;
• Expanding existing childcare facilities;
• Leasing existing commercial space;
• Establishing new family childcare homes and expanding spaces at existing family childcare homes;
• Creating new childcare facilities through the South San Francisco Unified School District; and
• Creating new childcare spaces within the Parks and Recreation Department.
Childcare Master Plan
This past May, Parks and Recreation staff selected a consultant, Kathleen White, to assist staff in crafting a comprehensive Childcare Master Plan. Kathleen has spent decades studying and working in the education and childcare field, most recently serving as a faculty member and department chair for the Child Development and Family Studies Department at City College of San Francisco. The purpose of the Master Plan is to focus on improving and expanding the reach, quality and impact of early childhood education programs, childcare and youth services for South San Francisco residents. The Master Plan will be used as a resource for guiding future operations and developments of childcare centers and programs over the next ten to fifteen years. A draft plan is expected to be presented for City Council consideration toward the end of the calendar year.
Westborough Neighborhood Preschool
Understanding the great need for preschool services in South San Francisco, the City Council authorized the construction of a new preschool facility in the Westborough neighborhood in 2020. The Westborough area was selected by the City Council as it currently has the greatest density of individuals on the wait list, however, staff understands this does not necessarily detail where the most need exists. The Childcare Master Plan will study this issue in earnest.
At that time, cost estimates for new construction of a facility intended to serve 40-80 children were being tabulated, however the full balance of Childcare Impact Fees in hand at that time, totaling $5.5 million was placed into the project fund to begin design.
After examination of City-owned properties in the area, Carter Park was determined to be the most appropriate site due to several factors related to existing conditions, vehicular and pedestrian circulation, parking, cost to construct (nearby utilities, geotechnical conditions, etc.) and adjacent land uses / neighborhood context.
Staff engaged Sim Architects, one of the City’s prequalified on-call architects, to begin programmatic design work for the facility in May 2021.
Design Progress to Date
Staff and consultants have completed preliminary site analysis, cost estimating and program planning to determine the most appropriate location within the site and the minimum building area for efficient childcare operations in order to serve a minimum of 60 children.
Staff and consultants studied several locations within the park to site the new facility, ultimately recommending a mid-block location along the frontage of Carter Drive, centered between Meath Drive and Duhallow Way. This location was selected based on the following criteria:
• Convenient access to both parking lots and street parking
• Facility visibility
• Neighborhood context and adjacent land uses
• Minimal impact to existing park amenities, leaving over 1.5 acres of parkland
• Opportunities for future expansion
• Wind protection for the patio/open space areas
The facility is expected to include three classroom spaces each serving 20 children, office and staff support areas, a small kitchen, and adult and children’s restrooms. On the exterior of the facility, a private patio area will allow space for large motor skill development. A new 2-5-year-old playground, a requirement for licensing, will serve the program and also be made available to the public when not in use by the preschool, benefitting the larger neighborhood. The playground is intended to be inclusive to all abilities, serving students and the general public. Further improvements to the park are being studied outside of the project as part of the Common Greens Capital Improvement Project, with $2.5 million of Common Greens funding allocated in total - $500,000 in FY 23/24 and $2 million in FY 24/25.
Construction Type
Staff and consultants studied two delivery methods: traditional (stick-build) construction or modular (pre-fabricated) construction. The following summarizes the benefits of either delivery method.
Traditional Construction
Pros
• Site specific design
• Design flexibility
• Local construction contracts
Cons
• Higher construction costs
• Longer construction period
Timeline
• Design: 10 months
• Bid: 4 months
• Construction: 10 months
• Total: 24 months (potentially opening spring/summer 2023)
Cost (estimated)
• Soft Costs: $1.95 million
• Hard Costs: $5.95 million
• Total: $7.9 million
Modular Construction
Pros
• Accelerated construction schedule
• Cost savings
• Minimal construction waste
Cons
• Possible finish limitations
• Limited size and shape options
• Less flexibility for design changes
Timeline
• Design: 9-10 months
• Bid: 2-4 months
• Construction: 7 months
• Total: 18-21 months (potentially opening winter/spring 2023)
Cost
• Soft Costs: $1.6 - $1.8 million
• Hard Costs: $4.8 - $5.3 million
• Total: $6.4 - $7.1 million
Additional costs in either scenario may be associated with LEED certification, photovoltaic systems, or other facility upgrades.
While new construction would provide the City with the most flexibility in design, staff recommends pursuing modular construction in this instance due to the benefits associated with project cost savings and compressed construction duration. Life expectancy for both construction types are similar, estimated at 40 to 50 or more years.
STRATEGIC PLAN
This endeavor supports the City’s Strategic Plan Goal #2 “Quality of Life,” as it supports the City’s mission to provide facilities for high quality learning programs for young children.
FISCAL IMPACT
The current balance in the Childcare Impact Fee fund is approximately $6.7 million. $5.7 million of this amount is encumbered for the Westborough Neighborhood Preschool Project, and other projects. Additional revenues of $666,700 (2021/22) and $6,940,000 (2022/23) are projected for the Childcare Impact Fee Fund, for an approximate fund balance of $14,306,700 at time of construction, though it must be noted these figures are estimates based on the projected developments in the pipeline.
Furthermore, it must be noted that whichever delivery method is chosen, the total cost of the project will likely exceed what has been allocated in the CIP, and staff will be returning at mid-year or with a standalone legislative item for City Council action and a budget amendment. In the interim, the project team will be researching the cost and availability of modular units to ensure that this is the best option available. Assuming the modular method, an additional sum may be needed, funded by the Childcare Impact Fund.
If the preschool were operated by the City, ongoing operational costs of staffing, utilities, maintenance, and supplies would be partially offset by tuition fees, with cost recovery balanced against universal access. Increased awareness of the importance of preschool in determining future academic success could also result in more state and federal funding for preschool facilities and programming.
CONCLUSION
It is recommended that the City Council be apprised of the status of this project and provide direction to staff on which construction delivery type to advance in design.