HomeMy WebLinkAboutAgenda Report - March 18, 1998 (76)AGENDA TITLE: Transfer of Management of Camp Hutchins Child Care
Program to Lodi Memorial Hospital.
MEETING DATE: MARCH 18, 1998
PREPARED BY: Charlene J. Lange, Community Center Director
RECOMMENDED ACTION: That the City Council approve the attached agreement transferring the
management and operation of the Camp Hutchins child care program to Lodi Memorial Hospital.
BACKGROUND INFORMATION: Lodi Memorial Hospital is expanding their concept of "well care". As the
largest employer in the City of Lodi, the hospital has a vested interest in children and their working parents. The
population base of their employees includes many people who are in need of child care services; and, because of shift
work, are interested in expanding the typical day care facility into a service that would offer extended hours.
The City has partnered with the hospital for the past eight years in successfully operating the Adult Day Care Service
at Hutchins Street Square. The operation of the Camp Hutchins program is a natural extension of this service and is
an opportunity for the hospital to extend their management of both programs to keep their costs at a fair market value.
The hospital boasts experience on elementary school campuses, including Heritage School, dealing with health issues
from kindergarten through sixth grade. The hospital will operate the program on a not-for-profit basis. Enrollment will
continue to be open to the public on a first come, first served basis and will not be preferential to either the hospital or
the City's employee base.
The hospital has met with all current part-time Camp Hutchins employees and will make every attempt to absorb those
employees in their restructuring of the new program. A meeting of parents who have children enrolled in the program
has also taken place prior to the Council meeting to answer questions and assure parents that the program will not be
dissolved, will continue to operate, and will likely increase hours of operation.
The City will transfer the current mid -manager of Camp Hutchins to the Parks and Recreation Department along with
the After School Playground Program with the anticipation of expanding those programs and services more uniformly
across the City boundaries. The Recreation Department also sees additional duties for the mid -manager including the
expansion of Title IX sports opportunities.
This is an excellent opportunity to continue and expand our partnership with Lodi Memorial Hospital. It also affords the
City the opportunity to privatize programs with positive consequences for the entire community.
FUNDING: None Required
Charlene J. Lange, Flomunqcenter Director
APPROVED:
14. DIXON FLYNN, CITY MANAGER
AGREEMENT
THIS AGREEMENT, entered into by and between the CITY OF LODI, a municipal
corporation ("City"), and LODI MEMORIAL HOSPITAL ("Hospital").
WITNESSETH:
WHEREAS, the Hospital and the City have a history of partnering with the operation of
the Adult Day Care Facility at Hutchins Street Square and would like to extend that partnership
to include the management and operation of Camp Hutchins, a child care program.
WHEREAS, the parties hereto are desirous of expanding their relationship to include a
lease on facilities at Hutchins Street Square for a one year period to operate a children's day care
facility. The City would retain the State license of the program for the first year of operation
with the Hospital acting as the management agent. After the first year, the Hospital would take
over the ownership of the program and execute a three year contract.
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
The purpose of this Agreement is to provide and manage a child care
facility on a year-round basis at the Hutchins Street Square facility,
specifically called "Camp Hutchins".
2. The City agrees to and hereby leases to the Hospital, the facilities and space as
described as:
The western portion of the remodeled multipurpose building at Hutchins
Street Square, as more particularly shown on the floor plan attached hereto
and made a part of this Agreement by reference.
The space will be available to the City "after hours" and on weekends for outside rental and joint
uses of the room for various community and civic activities.
For the sum of ONE DOLLAR ($1.00) per year, payable in advance on the anniversary date of
this Agreement.
The term of this Agreement shall be for a period for three (3) years
commencing March 4, 1998 and expiring on March 5, 2001.
City shall provide all customary and usual maintenance of building and
grounds.
The Hospital shall provide all necessary and customary equipment, furniture, and
staff to provide care for a maximum of fifty-six (56) children. In addition, the
Hospital shall be responsible for publicity and marketing of the program,
expending reasonable and good faith efforts to make the public aware of this
program. Fees will be established by Hospital in accordance to area market value.
6. The Hospital agrees to operate a child care program during hours by mutual
agreement, Monday through Friday, fifty-two weeks of the year, save and except
the usual and traditional holidays. Such services shall be available to all persons
otherwise meeting the criteria for participation in such day care facilities,
regardless of race, sex, national origin, or residency.
The City shall be obligated only to provide the necessary space and maintenance
for such day care center. All other expenses of operation of the day care program
shall be the responsibility of the Hospital. The Hospital further agrees to operate
such Child Care Program on a not -for -profit -basis. Charges or fees for such
service shall be adjusted with the intent to make such charges or fees reflect the
actual cost of operation and overhead of the facility. In determining or calculating
profit or loss, Hospital shall be entitled to depreciate during the term of this Lease
the cost for any necessary equipment provided during the term by Hospital.
Determination of profit or loss may utilize or carry forward/carry back method of
calculating profit or loss for each year of the three (3) year term of the Agreement
and offset for each year in which a loss was incurred against any year of the
current term in which a profit resulted. Should an overall profit result as shown
by independent audit based on the consideration found in this paragraph, then at
the end of the three (3) year term, it shall be paid and remitted to the Hutchins
Street Square Foundation, for the purpose of continued maintenance and
development of the facility.
S. City and Hospital hereby mutually agree to hold harmless and indemnify the other
in proportion to and to the extent that claims or losses to one are attributable to the
negligent acts or omissions of the other. Such hold harmless shall include
indemnity for attorneys fees and costs incurred in defending such actions.
Executed this day of , 1998 at Lodi, California
CITY OF LODI, a municipal
corporation
H. DIXON FLYNN
City Manager
ALICE M. REIMCHE
City Clerk
Approved As to Form:
RANDALL A. HAYS
City Attorney
LODI MEMORIAL HOSPITAL
By
THEODORE HOLMSTROM
Board of Directors
JOSEPH HARRINGTON
Administration
LMH TRANSITION TO CAMP HUTCHINS
TIMELINE
February 18, 1998
Approved Council Communication and Contract to Lodi City
Council for scheduled March 18, 1998 meeting.
February 24-27, 1998
Schedule meeting with current Camp Hutchins parents
February 27, 1998
Send news release to Lodi News Sentinel and Stockton Record
March 18, 1998
Council signs Contract
March 19, 1998
Lodi Memorial Hospital signs Contract
March 20, 1998
Lodi Memorial Hospital advertises for jobs
Ar)ril 1. 1998
Head teacher named
April 2-30. 1998
Remaining staff named
April 20, 1998
Head teacher on staff
May 1, 1998
Last day as City employees
May 4, 1998
Lodi Memorial Hospital takes over as employer
May 11, 1998
Move to permanent facilities
RESOLUTION NO. 98-49
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE
TRANSFER OF MANAGEMENT OF CAMP HUTCHINS CHILD
CARE PROGRAM TO LODI MEMORIAL HOSPITAL
BE IT RESOLVED, that the City Council of the City of Lodi hereby authorizes the
transfer of management of Camp Hutchins Child Care Program to Lodi Memorial
Hospital.
Dated: March 18, 1998
I hereby certify that Resolution No. 98-49 was passed and adopted by the Lodi
City Council in a regular meeting held March 18, 1998 by the following vote:
AYES: Council Members - Land, Mann and Pennino
NOES: Council Members - Johnson and Sieglock (Mayor)
ABSENT: Council Members - None
ABSTAIN: Council Members - None
GE�) x - 40�-�
ALICE M. RE CHE
City Clerk
98-49
N-3
Jennifer Perrin
From: Susan95240[SMTP:Susan95240@aol.com]
Sent: Tuesday, March 17, 1998 10:28 PM
To: sieglock@lodi.gov
Cc: land@lodi.gov; mann@lodi.gov; pennino@lodi.gov; bjohnson@lodi.gov
Subject: Transfer of Camp Hutchins Management
Members of the City Council
My name is Susan Bjork, I reside at 1230 S. Hutchins St., Lodi
I have a child enrolled in the Camp Hutchins program and I have some concerns
and
questions that I would like to state regarding the transfer of the Camp
Hutchins Day Care management to Lodi Memorial Hospital that you are to review
and approve on March 18.
Please forgive me for repeating much of the council communication.
#1 - I have read the council communication prepared by Ms. Lange and have not
been able to identify the question of WHY? WHY the need to "fix" a program
that is not broken? WHY is the hospital interested in getting into child care
when there is no profit to make? WHY the need to split the responsibilities of
a Recreation Supervisor, only to add more duties under her new direction? WHY
place the cost of the Recreation Supervisor in the already strapped general
fund when it is fully being taken care of now? WHY jeopardize the jobs of
dedicated staff with only the promise of making "every attempt to absorb those
employees" in the new restructure?
#2 - There is a promise that the program will run on a "not-for-profit" basis.
Exactly what does that mean? Isn't it already not-for-profit? How much more
will parents have to pay? What are the proposed fees? Again- why the need to
"fix" a program that isn't broken?
#3 - How long will it be before the hospital views the Camp Hutchins as a
benefit for their employees and gives preferential treatment to their
employees? Nowhere in the contract does it state there will NOT be
preferential treatment - however, in the first paragraph of the council
communication background section it states "As the largest employer in the
City of Lodi, the hospital has a vested interest in children and their working
parents. The population base of THEIR employees includes many people who are
in need of child care services and because of shift work are interested in
expanding the typical day care facility into a service that would offer
extended hours." It is not my child Ms. Lange is speaking of since I do not
work at the hospital. I interpret that paragraph as indicating the hospital
is interested in Camp Hutchins as an opportunity for THEIR employees, not the
general working populous of Lodi
44 - In the second paragraph of the background on the council communication it
states: "The City has partnered with the hospital for the past eight years in
successfully operating the Adult Day Care Service at Hutchins Street Square.
The operation of the Camp Hutchins program is a natural extension of this
service and is an opportunity for the hospital to extend their management of
both programs to keep THEIR costs at a fair market value." Does this mean
that the hospital is having problems with the adult day care program and wants
to use Camp as a means of off -setting THEIR problem? I believe that Camp's
fees are at a fair market value considering that most child care centers
provide lunch and Camp does not.
#5 -1 am perplexed by the thought of handing over a fully established
business (Camp Hutchins) for $1 a year.
#6 - The last statement of the council communication says "it also affords the
Page 1
City the opportunity to privatize programs with positive consequences for the
entire community." If Camp Hutchins is being privatized, why wasn't anyone
else (much less those actually in the child care business) given an
opportunity to submit a request for proposal. Isn't that required for most
everything else? How is the transfer making the program any more positive
than it already is? Many of their so-called "enhancements" are already being
offered.
#7 - Is there a problem with the management of Camp Hutchins that can only be
resolved with the hospital take-over?
Unfortunately, the real answers to many of these questions can only be
answered by
searching out the need and motivation of the Community Center Director to rid
herself of this program as well as the After School Program.
Thank you for your time.
Susan Bjork
Page 2
0 MEMORANDUM
Office of the Lodi City Clerk
TO: Honorable Mayor
Members of the City Council
FROM: Alice M. Reimche ,,,,z.
City Clerk
DATE: March 20, 1998
SUBJECT: March 18, 1998 Agenda Item Entitled, "Transfer of Management of Camp
Hutchins Child Care Program to Lodi Memorial Hospital"
Following an inquiry by Mayor Sieglock yesterday as to erroneous information appearing in the
Lodi News Sentinel pertaining to the vote on the above matter, I called Reporter Craig Cassidy
who confirmed that he made an error in reading his notes on the 3 - 2 vote in which Sieglock and
Johnson voted 'No'.
Late last night I finally had an opportunity to read the newspaper, and I was taken aback by the
article which indicated a $5 a week increase for the program. In reviewing the minutes and in
checking with Deputy City Manager Keeter, we both recall vividly Debbie Aspling, Vice President
of Patient Care with Lodi Memorial Hospital, after being questioned directly as to whether or not
the fee would increase, emphatically stating that they would in fact hopefully decline.
Should you have any questions, please contact me.
AMRCrnp
Attachment
cc: Deputy City Manager Keeter
cityclrk%corresplmcamphut.doc