Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive Officer
Justin W. Mates, Deputy County Executive
Subject: Measure K: Increase and support existing Family Child Care Home Providers in San Mateo County
RECOMMENDATION:
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Measure K: Adopt a resolution authorizing the President of the Board of Supervisors to execute an agreement with the Child Care Coordinating Council of San Mateo County (4Cs) to support existing, and increase the number of, Family Child Care Home Providers in San Mateo County for the term of March 10, 2025 to June 30, 2026 in an amount not to exceed $753,483, along with three options to extend the agreement for one year per option, in an amount of $400,000 for each option, if exercised, at the sole discretion of the County Executive or designee.
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BACKGROUND:
In June 2024, the Board of Supervisors allocated $400,000 in Measure K funds annually to support existing Family Child Care Home (FCCH) providers in San Mateo County by providing business development services and as well as to increase the number of FCCH providers in San Mateo County by helping providers establish, open, and successfully operate new FCCHs. Following a formal solicitation process, a panel of childcare subject matter experts has recommended the County contract with Child Care Coordinating Council of San Mateo County (“4Cs”), which submitted a proposal in collaboration with Renaissance Entrepreneurship Center (“Renaissance”).
DISCUSSION:
FCCH providers are an essential part of the system of child care in San Mateo County. The 2022 San Mateo County Child Care Needs Assessment (“2022 Needs Assessment”) found that there are 525 FCCH providers in the county that collectively provide 5,766 childcare slots. FCCH providers, often small businesses, can care for up to 8-14 children, and often reflect the demographics of the families they serve. They offer smaller, home-based settings and may have the flexibility to offer evening and weekend care for parents working nontraditional schedules. FCCHs are a significant provider of infant/toddler care, providing 43% of the existing spaces for this age group.
Individuals interested in opening a new FCCH face a variety of challenges and startup costs in doing so. Existing providers also experience a challenging operating environment: the 2022 Needs Assessment estimated the average “true cost” for infant/toddler care to be as much as $44-45K/child/year and yet average tuition rates range from $17-18K/child/year, highlighting the challenging economics of operating an FCCH in this county.
These baseline economic challenges can leave small-business FCCH providers particularly vulnerable to macro-economic and policy changes. The 2022 Needs Assessment found that between 2017 and 2022, a period that included the pandemic, there was a net loss of 101 FCCH providers and 897 spaces in the county, representing a 16% decline in providers and a 13% decline in the childcare spaces. During that time, providers also faced impacts from the state’s efforts to expand transitional kindergarten (which provides public options for 4 year olds), thus reducing enrollment and changing the financial and operating environment for FCCHs.
Pursuant to the proposed new agreement, 4Cs and Renaissance will use Measure K funds to conduct outreach, assist existing FCCH providers, and assist individuals interested in opening a new FCCH in San Mateo County. Services will be provided in English, Chinese, Portuguese, and Spanish, with additional interpretation/translation for additional languages, as needed.
For existing FCCHs, the proposed program will offer the 4Cs Ambassador Program (which recruits and trains experienced FCCH operators to mentor others), 1:1 business and financial consulting, $1,000 growth grants, and both fundamental and advanced business courses as well as information about early childhood education best practices.
For individuals interested in opening an FCCH, the proposed program will offer support to obtain a license, access business insurance, navigate state and county requirements, and complete mandatory training requirements. Participants also will receive $2,500 grants to assist with necessary start-up costs such as safety locks, smoke/carbon monoxide detectors, and sleeping cots.
For outreach to providers and individuals who could benefit from the proposed program, 4Cs and Renaissance will leverage existing partnerships and platforms and conduct outreach events to raise awareness about the availability of services under this agreement. Given the critical role FCCHs play in providing care reflecting their communities, 4Cs will also identify up to 4 community-based organizations to act as trusted community messengers to raise awareness and connect high need and underserved communities with services under this agreement.
Performance measures will be submitted via quarterly and annual reports to the County for review and discussion. The County’s option to extend contracts beyond the initial two-year period will depend on performance and available funding.
The County Attorney’s Office has reviewed and approved the agreement and resolution as to form.
PERFORMANCE MEASURE:
|
Performance Measures |
|
|
FY 24/25 |
FY 25/26 |
FY 26/27* (first extension) |
Total |
|
Number of existing FCCH Providers supported (unduplicated) |
85 |
128 |
165 |
378 |
|
Number new FCCHs opened |
10 |
20 |
30 |
25 |
|
Number new childcare slots created |
60 |
120 |
180 |
360 |
|
Number of FCCHs that upgrade license from small (8 slots) to large (14 slots) |
N/A |
3 |
5 |
8 |
|
Number FCCH Providers at risk of closing that remain open |
N/A |
5 |
5 |
10 |
|
Business sustainability |
80% of FCCH business owners will maintain or increase child enrollment after receiving support. 60% of FCCH business owners will report increased revenue after receiving training or consulting services. |
|
Support Satisfaction |
90% of participants will report that the support they received through the program helped them successfully start, grow, or sustain their business. |
* While the proposed agreement has an initial term through FY25-26 to align with the Measure K budget allocations approved by the Board on March 11, 2025, projected performance measures through FY 26/27 are included for information purposes.
EQUITY IMPACT:
The 2022 Needs Assessment found there is significant need for additional child care slots for children 0-12 years old in the county, a situation that particularly impacts working families and the economic stability of women. The Agreement not only seeks to serve these families by maintaining and increasing the availability of child care slots but also supports small and community-based businesses in the locations and languages that reflect the diversity of our communities.
FISCAL IMPACT:
The initial term of the agreement is from March 10, 2025 to June 30, 2026 for a cumulative amount not to exceed $753,483. The County will have the sole option to extend the term of the agreement for up to three (3) additional one (1) year terms: (i) from July 1, 2026 to June 30, 2027, in an amount not to exceed $400,000 for the first option, if exercised; (ii) from July 1, 2027 to June 30, 2028, for $400,000 for the second option, if exercised; and (iii) from July 1, 2028 to June 30, 2029, in an amount not to exceed $400,000 for the third option, if exercised. If the County elects to exercise all of its options, the cumulative amount will not exceed $1,953,115.
The agreements will be funded through Measure K funds. The Measure K funds are included in the FY 2024-25 Adopted Budget, and the amount for FY2025-26 is included in the FY 2025-26 Measure K budget approved by the Board on March 11, 2025.
There is no Net County Cost associated with approving this recommendation.