Childcare Facility Fund &
Child College Savings Account Programs
First 5 Sonoma County
Professional Service Agreement
April 26, 2022
CITY COUNCIL
Economic Development Division Director Raissa de la Rosa PLANNING AND ECONOMIC DEVELOPMENT DEPARTMENT 1
PROGRAM FUNDING SOURCES
Childcare Funding:
FACILITY FUND PROGRAM
• $2.9m ARPA Grants
RES -2022- 029
• $1.4m GF Loan Program
RES -2020- 177
allocated from CARES Act General
Fund monies
Children’s Savings Acct
(Baby Bonds) :
CHILD COLLEGE SAVINGS
ACCOUNT
• $1.575m ARPA Grants
RES -2022- 029
2 A one-time 5% administrative
fee is figured into the budget
of each highlighted program.
SANTA ROSA CHILDCARE SUPPORT PROGRAM
Resiliency Fund
(completed)
1. $1m direct grants to
providers administered
by First 5
2. $100,000 to expand
teacher training
program administered
by 4Cs
Facility Fund
(current focus)
$1.4m zero interest
revolving loan fund +
$2.9m grant program
• Tenant Improvements in
new development and
facility preservation
• Architectural,
mechanical, electrical,
plumbing…
• Permit/inspection fees
Employer Supported
Childcare (ongoing)
Policies, programs and other
incentives to encourage the
development of on -site
childcare.
Employers either develop
and run the site themselves
or provide site for contracted
for services.
3 OVERVIEW OF 3 - PART PROGRAM
Core Partners
SANTA ROSA CHILDCARE FACILITY FUND
Eligible Expenses
• Construction costs
• Fixtures, finishes and
equipment
• For licensing &/or to
improve program
quality/outcomes
• To increase special needs
accessibility
• Outdoor play equipment
and functional landscaping
• Mechanical, electrical,
plumbing
• Permit & inspection fees
• Architectural design,
engineering and site
development costs
Eligible Participants
• Local Ed Agencies
• 501(c)3 orgs that operate
a state or federal
subsidized program (e.g.
Head Start)
• Private
childcare/preschool
operators that accept
vouchers/scholarships
• Licensed family childcare
owners
• Licensed exempt
programs connected to a
childcare org
GRANT Timeline*
*Revolving Loan Program
timeline to be established at end
of grant program.
4 CHILDCARE FACILITY DEVELOPMENT
5 Facility Fund – Tenant Improvement Cost Examples
CHILD COLLEGE SAVINGS ACCOUNT
Program Structure
• First 5 sets up a $200 college savings plan
through the State’s ScholarShare529 program.
• $300 in additional incentives are available
based on participation in other qualifying
programs.
• A 2nd account may be established by a parent
or guardian.
• The market value of the fund is sent directly to
the college or career program to offset
expenses.
Eligible Participants
• Children age birth to their 5 th birthday
• Santa Rosa residents
• Household Adjusted Gross Income of $75,000
or less
6 Incentives
• Parents who use qualifying
programs/services may earn additional
funds.
• Parents/caregivers who open the
parent -owned ScholarShare529 account
may be matched dollar for dollar.
About 529 Plans & CSAs
• Kids are 3x more likely to attend
college and 4x more likely to graduate
if they have any amount of savings for
their education. Starting young allows
the funds to grow.
• A 529 plan is a tax -advantaged
investment plan to save for higher
education expenses.
• Scholarshare is the State’s 529 plan.
First 5 Sonoma County
7 About First 5 Sonoma County
• Funded by the 1998 statewide ballot initiative, Proposition 10, which added $0.50 per pack of cigarettes and other tobacco products. • Resulting revenues are allocated statewide to First 5 California and to county First 5 Commissions based on birth rate.
• It is an independent public agency that has administered over $90m in grants over the last 22 years – including the City’s Childcare Resiliency Fund Grant Program.
• Prop. 10 funds will be used to offset/support First 5’s administrative costs.
Recommendation
8 It is recommended by the Planning and Economic
Development Department that the Council, by
resolution, approve a Professional Services Agreement
with First 5 Sonoma County for the administration of
City of Santa Rosa funded child and childcare programs
in a not - to - exceed amount of $ 5 , 875, 000.