December 3,2013 MEMORANDUM November...

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AGENDA ITEM #8 December 3,2013 MEMORANDUM November 27,2013 TO: County Council FROM: Marlene Michaelson, Senior Legislative Analyst Jacob Sesker, Senior Legislati ve Analyst SUBJECT: Wheaton Redevelopment Program This is the third briefing from the Executive regarding the status of implementation of the Wheaton Redevelopment Program. A memorandum from Department of Transportation (DOT) Deputy Director Al Roshdieh is attached at © 1 - 5. Since Staff will not have the opportunity to review the memorandum before circulating it to the Council, Staff will present any comments orally at the Council meeting. Council Staff understand that the memorandum will contain the Executive's recommendation as to whether to include a child care center in the office building as recommended by the Planning Board. Attached on © 6 to lOis a study prepared by Planning Department Staff regarding the feasibility of a child care center in the office building. The study concluded that "a child care center could be an appropriate and viable use of space at the proposed facility." As a result, the Planning Board recommended including it in their program of requirements (POR). Since several decisions regarding the function and design of the office building will depend on whether the project includes a child care center, a decision should be made soon to allow negotiations with the selected developer to proceed on schedule. Staff recommends the Council address it at the December 3 meeting. F:\Michaelson\MNCPPC\Wheaton Redevelopment\Council Update 12-3-13.doc

Transcript of December 3,2013 MEMORANDUM November...

Page 1: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

AGENDA ITEM 8 December 32013

MEMORANDUM

November 272013

TO County Council

FROM Marlene Michaelson Senior Legislative Analyst Jacob Sesker Senior Legislati ve Analyst

SUBJECT Wheaton Redevelopment Program

This is the third briefing from the Executive regarding the status of implementation of the Wheaton Redevelopment Program A memorandum from Department of Transportation (DOT) Deputy Director Al Roshdieh is attached at copy 1 - 5 Since Staff will not have the opportunity to review the memorandum before circulating it to the Council Staff will present any comments orally at the Council meeting

Council Staff understand that the memorandum will contain the Executives recommendation as to whether to include a child care center in the office building as recommended by the Planning Board Attached on copy 6 to lOis a study prepared by Planning Department Staff regarding the feasibility of a child care center in the office building The study concluded that a child care center could be an appropriate and viable use of space at the proposed facility As a result the Planning Board recommended including it in their program of requirements (POR)

Since several decisions regarding the function and design of the office building will depend on whether the project includes a child care center a decision should be made soon to allow negotiations with the selected developer to proceed on schedule Staff recommends the Council address it at the December 3 meeting

FMichaelsonMNCPPCWheaton RedevelopmentCouncil Update 12-3-13doc

DLPARj IT ll- 11lt

blah Leggett Ar~hur Hl)lme~ J 1((1111middot Ducror

MEMORANDlJM

November 27 2013

TO Nancy Navarro President Montgomery County Council

FROM Department ~

SUBJECT Wheaton ~velopment Program (P1S040l)

On September 24 201 I updated the County Council on the Wheaton Redevelopment Program (PI 504(1) At that time I reported the selection of Stone bridge CarrdsfBozzuto LLC as the proposed developer for the redevelopment ufthe Wheaton and Silver Spring properties

We are in negotiation pha~e conducting weekly meetings with the proposed developer the Development Team and [he ExecutivefM-NCPPCCouncii Team The specific actions we continue to pursue include

bull The evaluation and consolidation of the originally separate PORs for MshyNCPPC RSC DEP and DPS The objective of the review is a clear understanding of the space needs of eaeh organization in a shared use building

bull Incorporating the comment- of the community and M-NCPPC on the concept design of the exterior of the office building

bull Similarly reviewing and designing in concept the TO11 Square hased on input from all the stakeholders

bull We are actively working ith WMATA with the goal of obtaining an easement incorporating the adjoining WMATA green space in the Tov11 Square to improve access to the Metro Station and the redevelopment area

bull The County and M-NCPPC are working on the development of an MOU regarding ownership and maintenance issues of the oftice building and Town Square

Offiet of till ninctor

Nancy Navarro December 11 2013 page 2

We will be presenting the revised concepts for the entire project to the Wheaton community on December II 2013 in order to obtain their continued feedback on the project

One item we have been reviewing relates to the original Maryland-National Capital Park and Planning Commission Program of Requirements (M-NCPPC POR) for the office building As part of the POR M-NCPPC included a recommendation for a child care center in the proposed office building The center was planned to be 6000 square feet designed to serve 60 infants and children of 5 years ofage and under The Executive staff has analyzed the feasibility of including a child care center as part of the proposed office building The multiple needs ofthe building and specific requirements related to the safety and security of the children make the inclusion of child care space impractical

One of the objectives oftrus project is to leverage public land and resources to revitalize the economy of Wheaton and activate a 24 hour economy through public and private development The ground floor of the office building must accommodate the entrance to the parking garage the loading docks and customer entrances Even using creative design to minimize and share these mandatory activities there are very limited areas remaining for other uses The remaining ground floor space should be reserved for retail activity to maximize the opportunities to fulfill the purpose of economic revitalization Using part of this first floor space for a child care center may be considered a retail use but it will be dark in the evening Such a use obviously runs counter to the evening revitalization effort

Given the various competing requirements for first floor uses a logical alternative might be to locate the child care center on an upper floor of the building The NFPA Life Safety Code includes specific requirements related to child care occupancies with clients who are 24 months or less in age where the use is located one or more stories above the level of exit discharge Specific NFPA requirements related to smoke partitions would need to be met which would add significant costs to the construction of the building An upper floor location also adds to the challenge of moving children in an emergency It creates additional egress requirements and impacts staffing levels to assure the ability to safely evacuate the children The Developer has included the required space for the child care center in the overall size of the building but based on the challenges with identifying a proper space for the center and the playground the Developer opted to exclude any Tenant improvement and the playground from their proposed cost for the building In addition to the opportunity cost of forgoing a retail presence it would cost in excess of $1 million to finish the child care center space on the first tloor This is without consideration of the additional cost of the pLay area or any annual operating subsidy A second floor location could easily double the construction costs

Nancy Navarro December 11 2013 page 3

The attached Health and Hwnan Services (HHS) report on Child Care Factors for Consideration indicates a nwnber of requirements for a quality child care facility that would be problematic for this site Maryland EXCELS requires an on-site playground that is developmentally appropriate for the age groups served In the interests of safety the play space should be enclosed The proposed child care center would require 2250 square feet ofplay space for a 60 client center As indicated in the M-NCPPC POR the only logical location for the playground would be as part of the Town Square space Removing and enclosing a space of this size would be detrimental to the overall plan for activating this important public gathering place

A survey of existing child care facilities in the area would suggest that there is limited need for another facility integrated into this project The M-NCPPC POR only counted day care centers within 15 miles of the office building The HHS standard when evaluating the requirement for child care always considers all centers within five miles Within zip code 20902 there are 65 licensed family child care homes 14 licensed child care centers 3 public Pre-K programs and 1 Head Start Program The M-NCPPC POR also seems to fail to take into account home based programs HHS staff indicate that the licensing requirements for home child care is as stringent as that for center care and horne care programs may provide an equal to or an even greater level of service In addition the County is currently supporting the construction of a child care center at Wheaton Woods Elementary School scheduled to open in August 2017 Lastly any County subsidized child care would of course place existing licensed child care in the area at a competitive disadvantage and could cause existing private businesses to close

All of these factors evaluated together indicate that including a child care facility within this project is impractical is not cost effective and is not necessary from a service point of view In addition adding the child care center would require space to be taken from the Tm71 Square that the community has repeatedly requested

We look forward to keeping the Council ful1y updated on our progress on this project of vital interest to the County as a whole

ARlswl

Attachment

cc Francoise Carrier Chair Maryland-National Capital Park and Planning Commission

(j)

Attachment

Child Care in MmiddotNCPPC Wheaton IIHeadquarters Factors for Consideration 111513

Required for Child Care in Public Space

bull An HHS managed selection process for the provider to operate the space

bull The provider must accept 20 subsidy payments (both State and WPA) from families and this would require enrollment to be open to the community

bull The provider must adhere to licensing requirements and specific quality components as defined by HHS

bull Additional requirements exist in fire zoning and permit regulations in the County

bull Increased quality requirements (Maryland EXCELS) requires an on-site playground that is developmentally appropriate for the age groups served

bull Playground in high quality child care programs are used throughout the day as part of the curriculum

Quality Requirements

bull It is highly recommended due to increased security concerns and the location of the building that the playground be enclosed

bull Also due to heightened security awareness - the child care program and the drop offpick-up and parking areas need to be secure

bull The child care space should be placed on the first floor of the building and have

first floor egress

bull The building should have easy access to sidewalks

bull COMAR describes basic staffing and space requirements Quality programs exceed these requirements and a child care center license is considered basic

entry level to the operation of a child care program

bull This location requires a provider that speaks English and Spanish

Data regarding number of child care providers and the level of low-income families in

the area

Zip code 20902 65 licensed family child care homes 14 licensed child care centers

3 Public Pre-K programs

1 Head Start program

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 2: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

DLPARj IT ll- 11lt

blah Leggett Ar~hur Hl)lme~ J 1((1111middot Ducror

MEMORANDlJM

November 27 2013

TO Nancy Navarro President Montgomery County Council

FROM Department ~

SUBJECT Wheaton ~velopment Program (P1S040l)

On September 24 201 I updated the County Council on the Wheaton Redevelopment Program (PI 504(1) At that time I reported the selection of Stone bridge CarrdsfBozzuto LLC as the proposed developer for the redevelopment ufthe Wheaton and Silver Spring properties

We are in negotiation pha~e conducting weekly meetings with the proposed developer the Development Team and [he ExecutivefM-NCPPCCouncii Team The specific actions we continue to pursue include

bull The evaluation and consolidation of the originally separate PORs for MshyNCPPC RSC DEP and DPS The objective of the review is a clear understanding of the space needs of eaeh organization in a shared use building

bull Incorporating the comment- of the community and M-NCPPC on the concept design of the exterior of the office building

bull Similarly reviewing and designing in concept the TO11 Square hased on input from all the stakeholders

bull We are actively working ith WMATA with the goal of obtaining an easement incorporating the adjoining WMATA green space in the Tov11 Square to improve access to the Metro Station and the redevelopment area

bull The County and M-NCPPC are working on the development of an MOU regarding ownership and maintenance issues of the oftice building and Town Square

Offiet of till ninctor

Nancy Navarro December 11 2013 page 2

We will be presenting the revised concepts for the entire project to the Wheaton community on December II 2013 in order to obtain their continued feedback on the project

One item we have been reviewing relates to the original Maryland-National Capital Park and Planning Commission Program of Requirements (M-NCPPC POR) for the office building As part of the POR M-NCPPC included a recommendation for a child care center in the proposed office building The center was planned to be 6000 square feet designed to serve 60 infants and children of 5 years ofage and under The Executive staff has analyzed the feasibility of including a child care center as part of the proposed office building The multiple needs ofthe building and specific requirements related to the safety and security of the children make the inclusion of child care space impractical

One of the objectives oftrus project is to leverage public land and resources to revitalize the economy of Wheaton and activate a 24 hour economy through public and private development The ground floor of the office building must accommodate the entrance to the parking garage the loading docks and customer entrances Even using creative design to minimize and share these mandatory activities there are very limited areas remaining for other uses The remaining ground floor space should be reserved for retail activity to maximize the opportunities to fulfill the purpose of economic revitalization Using part of this first floor space for a child care center may be considered a retail use but it will be dark in the evening Such a use obviously runs counter to the evening revitalization effort

Given the various competing requirements for first floor uses a logical alternative might be to locate the child care center on an upper floor of the building The NFPA Life Safety Code includes specific requirements related to child care occupancies with clients who are 24 months or less in age where the use is located one or more stories above the level of exit discharge Specific NFPA requirements related to smoke partitions would need to be met which would add significant costs to the construction of the building An upper floor location also adds to the challenge of moving children in an emergency It creates additional egress requirements and impacts staffing levels to assure the ability to safely evacuate the children The Developer has included the required space for the child care center in the overall size of the building but based on the challenges with identifying a proper space for the center and the playground the Developer opted to exclude any Tenant improvement and the playground from their proposed cost for the building In addition to the opportunity cost of forgoing a retail presence it would cost in excess of $1 million to finish the child care center space on the first tloor This is without consideration of the additional cost of the pLay area or any annual operating subsidy A second floor location could easily double the construction costs

Nancy Navarro December 11 2013 page 3

The attached Health and Hwnan Services (HHS) report on Child Care Factors for Consideration indicates a nwnber of requirements for a quality child care facility that would be problematic for this site Maryland EXCELS requires an on-site playground that is developmentally appropriate for the age groups served In the interests of safety the play space should be enclosed The proposed child care center would require 2250 square feet ofplay space for a 60 client center As indicated in the M-NCPPC POR the only logical location for the playground would be as part of the Town Square space Removing and enclosing a space of this size would be detrimental to the overall plan for activating this important public gathering place

A survey of existing child care facilities in the area would suggest that there is limited need for another facility integrated into this project The M-NCPPC POR only counted day care centers within 15 miles of the office building The HHS standard when evaluating the requirement for child care always considers all centers within five miles Within zip code 20902 there are 65 licensed family child care homes 14 licensed child care centers 3 public Pre-K programs and 1 Head Start Program The M-NCPPC POR also seems to fail to take into account home based programs HHS staff indicate that the licensing requirements for home child care is as stringent as that for center care and horne care programs may provide an equal to or an even greater level of service In addition the County is currently supporting the construction of a child care center at Wheaton Woods Elementary School scheduled to open in August 2017 Lastly any County subsidized child care would of course place existing licensed child care in the area at a competitive disadvantage and could cause existing private businesses to close

All of these factors evaluated together indicate that including a child care facility within this project is impractical is not cost effective and is not necessary from a service point of view In addition adding the child care center would require space to be taken from the Tm71 Square that the community has repeatedly requested

We look forward to keeping the Council ful1y updated on our progress on this project of vital interest to the County as a whole

ARlswl

Attachment

cc Francoise Carrier Chair Maryland-National Capital Park and Planning Commission

(j)

Attachment

Child Care in MmiddotNCPPC Wheaton IIHeadquarters Factors for Consideration 111513

Required for Child Care in Public Space

bull An HHS managed selection process for the provider to operate the space

bull The provider must accept 20 subsidy payments (both State and WPA) from families and this would require enrollment to be open to the community

bull The provider must adhere to licensing requirements and specific quality components as defined by HHS

bull Additional requirements exist in fire zoning and permit regulations in the County

bull Increased quality requirements (Maryland EXCELS) requires an on-site playground that is developmentally appropriate for the age groups served

bull Playground in high quality child care programs are used throughout the day as part of the curriculum

Quality Requirements

bull It is highly recommended due to increased security concerns and the location of the building that the playground be enclosed

bull Also due to heightened security awareness - the child care program and the drop offpick-up and parking areas need to be secure

bull The child care space should be placed on the first floor of the building and have

first floor egress

bull The building should have easy access to sidewalks

bull COMAR describes basic staffing and space requirements Quality programs exceed these requirements and a child care center license is considered basic

entry level to the operation of a child care program

bull This location requires a provider that speaks English and Spanish

Data regarding number of child care providers and the level of low-income families in

the area

Zip code 20902 65 licensed family child care homes 14 licensed child care centers

3 Public Pre-K programs

1 Head Start program

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 3: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Nancy Navarro December 11 2013 page 2

We will be presenting the revised concepts for the entire project to the Wheaton community on December II 2013 in order to obtain their continued feedback on the project

One item we have been reviewing relates to the original Maryland-National Capital Park and Planning Commission Program of Requirements (M-NCPPC POR) for the office building As part of the POR M-NCPPC included a recommendation for a child care center in the proposed office building The center was planned to be 6000 square feet designed to serve 60 infants and children of 5 years ofage and under The Executive staff has analyzed the feasibility of including a child care center as part of the proposed office building The multiple needs ofthe building and specific requirements related to the safety and security of the children make the inclusion of child care space impractical

One of the objectives oftrus project is to leverage public land and resources to revitalize the economy of Wheaton and activate a 24 hour economy through public and private development The ground floor of the office building must accommodate the entrance to the parking garage the loading docks and customer entrances Even using creative design to minimize and share these mandatory activities there are very limited areas remaining for other uses The remaining ground floor space should be reserved for retail activity to maximize the opportunities to fulfill the purpose of economic revitalization Using part of this first floor space for a child care center may be considered a retail use but it will be dark in the evening Such a use obviously runs counter to the evening revitalization effort

Given the various competing requirements for first floor uses a logical alternative might be to locate the child care center on an upper floor of the building The NFPA Life Safety Code includes specific requirements related to child care occupancies with clients who are 24 months or less in age where the use is located one or more stories above the level of exit discharge Specific NFPA requirements related to smoke partitions would need to be met which would add significant costs to the construction of the building An upper floor location also adds to the challenge of moving children in an emergency It creates additional egress requirements and impacts staffing levels to assure the ability to safely evacuate the children The Developer has included the required space for the child care center in the overall size of the building but based on the challenges with identifying a proper space for the center and the playground the Developer opted to exclude any Tenant improvement and the playground from their proposed cost for the building In addition to the opportunity cost of forgoing a retail presence it would cost in excess of $1 million to finish the child care center space on the first tloor This is without consideration of the additional cost of the pLay area or any annual operating subsidy A second floor location could easily double the construction costs

Nancy Navarro December 11 2013 page 3

The attached Health and Hwnan Services (HHS) report on Child Care Factors for Consideration indicates a nwnber of requirements for a quality child care facility that would be problematic for this site Maryland EXCELS requires an on-site playground that is developmentally appropriate for the age groups served In the interests of safety the play space should be enclosed The proposed child care center would require 2250 square feet ofplay space for a 60 client center As indicated in the M-NCPPC POR the only logical location for the playground would be as part of the Town Square space Removing and enclosing a space of this size would be detrimental to the overall plan for activating this important public gathering place

A survey of existing child care facilities in the area would suggest that there is limited need for another facility integrated into this project The M-NCPPC POR only counted day care centers within 15 miles of the office building The HHS standard when evaluating the requirement for child care always considers all centers within five miles Within zip code 20902 there are 65 licensed family child care homes 14 licensed child care centers 3 public Pre-K programs and 1 Head Start Program The M-NCPPC POR also seems to fail to take into account home based programs HHS staff indicate that the licensing requirements for home child care is as stringent as that for center care and horne care programs may provide an equal to or an even greater level of service In addition the County is currently supporting the construction of a child care center at Wheaton Woods Elementary School scheduled to open in August 2017 Lastly any County subsidized child care would of course place existing licensed child care in the area at a competitive disadvantage and could cause existing private businesses to close

All of these factors evaluated together indicate that including a child care facility within this project is impractical is not cost effective and is not necessary from a service point of view In addition adding the child care center would require space to be taken from the Tm71 Square that the community has repeatedly requested

We look forward to keeping the Council ful1y updated on our progress on this project of vital interest to the County as a whole

ARlswl

Attachment

cc Francoise Carrier Chair Maryland-National Capital Park and Planning Commission

(j)

Attachment

Child Care in MmiddotNCPPC Wheaton IIHeadquarters Factors for Consideration 111513

Required for Child Care in Public Space

bull An HHS managed selection process for the provider to operate the space

bull The provider must accept 20 subsidy payments (both State and WPA) from families and this would require enrollment to be open to the community

bull The provider must adhere to licensing requirements and specific quality components as defined by HHS

bull Additional requirements exist in fire zoning and permit regulations in the County

bull Increased quality requirements (Maryland EXCELS) requires an on-site playground that is developmentally appropriate for the age groups served

bull Playground in high quality child care programs are used throughout the day as part of the curriculum

Quality Requirements

bull It is highly recommended due to increased security concerns and the location of the building that the playground be enclosed

bull Also due to heightened security awareness - the child care program and the drop offpick-up and parking areas need to be secure

bull The child care space should be placed on the first floor of the building and have

first floor egress

bull The building should have easy access to sidewalks

bull COMAR describes basic staffing and space requirements Quality programs exceed these requirements and a child care center license is considered basic

entry level to the operation of a child care program

bull This location requires a provider that speaks English and Spanish

Data regarding number of child care providers and the level of low-income families in

the area

Zip code 20902 65 licensed family child care homes 14 licensed child care centers

3 Public Pre-K programs

1 Head Start program

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 4: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Nancy Navarro December 11 2013 page 3

The attached Health and Hwnan Services (HHS) report on Child Care Factors for Consideration indicates a nwnber of requirements for a quality child care facility that would be problematic for this site Maryland EXCELS requires an on-site playground that is developmentally appropriate for the age groups served In the interests of safety the play space should be enclosed The proposed child care center would require 2250 square feet ofplay space for a 60 client center As indicated in the M-NCPPC POR the only logical location for the playground would be as part of the Town Square space Removing and enclosing a space of this size would be detrimental to the overall plan for activating this important public gathering place

A survey of existing child care facilities in the area would suggest that there is limited need for another facility integrated into this project The M-NCPPC POR only counted day care centers within 15 miles of the office building The HHS standard when evaluating the requirement for child care always considers all centers within five miles Within zip code 20902 there are 65 licensed family child care homes 14 licensed child care centers 3 public Pre-K programs and 1 Head Start Program The M-NCPPC POR also seems to fail to take into account home based programs HHS staff indicate that the licensing requirements for home child care is as stringent as that for center care and horne care programs may provide an equal to or an even greater level of service In addition the County is currently supporting the construction of a child care center at Wheaton Woods Elementary School scheduled to open in August 2017 Lastly any County subsidized child care would of course place existing licensed child care in the area at a competitive disadvantage and could cause existing private businesses to close

All of these factors evaluated together indicate that including a child care facility within this project is impractical is not cost effective and is not necessary from a service point of view In addition adding the child care center would require space to be taken from the Tm71 Square that the community has repeatedly requested

We look forward to keeping the Council ful1y updated on our progress on this project of vital interest to the County as a whole

ARlswl

Attachment

cc Francoise Carrier Chair Maryland-National Capital Park and Planning Commission

(j)

Attachment

Child Care in MmiddotNCPPC Wheaton IIHeadquarters Factors for Consideration 111513

Required for Child Care in Public Space

bull An HHS managed selection process for the provider to operate the space

bull The provider must accept 20 subsidy payments (both State and WPA) from families and this would require enrollment to be open to the community

bull The provider must adhere to licensing requirements and specific quality components as defined by HHS

bull Additional requirements exist in fire zoning and permit regulations in the County

bull Increased quality requirements (Maryland EXCELS) requires an on-site playground that is developmentally appropriate for the age groups served

bull Playground in high quality child care programs are used throughout the day as part of the curriculum

Quality Requirements

bull It is highly recommended due to increased security concerns and the location of the building that the playground be enclosed

bull Also due to heightened security awareness - the child care program and the drop offpick-up and parking areas need to be secure

bull The child care space should be placed on the first floor of the building and have

first floor egress

bull The building should have easy access to sidewalks

bull COMAR describes basic staffing and space requirements Quality programs exceed these requirements and a child care center license is considered basic

entry level to the operation of a child care program

bull This location requires a provider that speaks English and Spanish

Data regarding number of child care providers and the level of low-income families in

the area

Zip code 20902 65 licensed family child care homes 14 licensed child care centers

3 Public Pre-K programs

1 Head Start program

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 5: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Attachment

Child Care in MmiddotNCPPC Wheaton IIHeadquarters Factors for Consideration 111513

Required for Child Care in Public Space

bull An HHS managed selection process for the provider to operate the space

bull The provider must accept 20 subsidy payments (both State and WPA) from families and this would require enrollment to be open to the community

bull The provider must adhere to licensing requirements and specific quality components as defined by HHS

bull Additional requirements exist in fire zoning and permit regulations in the County

bull Increased quality requirements (Maryland EXCELS) requires an on-site playground that is developmentally appropriate for the age groups served

bull Playground in high quality child care programs are used throughout the day as part of the curriculum

Quality Requirements

bull It is highly recommended due to increased security concerns and the location of the building that the playground be enclosed

bull Also due to heightened security awareness - the child care program and the drop offpick-up and parking areas need to be secure

bull The child care space should be placed on the first floor of the building and have

first floor egress

bull The building should have easy access to sidewalks

bull COMAR describes basic staffing and space requirements Quality programs exceed these requirements and a child care center license is considered basic

entry level to the operation of a child care program

bull This location requires a provider that speaks English and Spanish

Data regarding number of child care providers and the level of low-income families in

the area

Zip code 20902 65 licensed family child care homes 14 licensed child care centers

3 Public Pre-K programs

1 Head Start program

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 6: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Child Care in M-NCPPC Wheaton Headquarters page 2

Zip code 20902 MCPS elementary school FARMS data Glenallan ES 679

Glen Haven ES 677

Kemp Mill ES 757

Zip code 20902 MCPS elementary school ESOL data Glenallan 387

Glen Haven 368 Kemp Mill ES 551

Adjacent zip code 20853

40 licensed family child care homes 14 licensed child care centers

3 public pre-k programs

Zip code 20853 MCPS elementary school FARMS data

Brookhaven ES 646 Cashell ES 212

Wheaton Woods ES 811

Zip code 20853 MCPS elementary school ESOL data

Brookhaven ES 241 Cashell ES 101 Wheaton Woods ES 537

The information above indicates high levels of low-income families as well as English

Language Learners County Council Bill 38-12 Capitallmprovements Program-Child Care Assessment attempts to increase the child care space to communities at large This requirement would need to be reconciled should MNCPPC decide to limit the facility only to public agency staff

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 7: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Preliminary study of a child care center in the proposed new

M-NCPPC headquarters building in downtown Wheaton

April 17 2013

Lisa Madigan Tate Center for Research amp Information Systems (CRIS)

M-NCPPC

Overview

Objective

This report assesses the general feasibility of building and operating a child care facility in the proposed M-NCPPC headquarters building in downtown Wheaton Staff prepared this analysis at the Planning Boards request to provide background information on the potential need requirements costs and options for including child care in the Program of Requirements

Background

The Planning Board is seeking to determine if space for a child day care facility should be included in the Program of Requirements for a new M-NCPPC Regional Headquarters Building The new headquarters building along with a new town square and parking would be the centerpiece of a proposed multi-user government complex that is intended to spur redevelopment in downtown Wheaton The County Council has committed $662 million in this proposal to jump-start private office development and provide a draw for local shops and restaurants

In November 2012 M-NCPPC staff and its consultant presented the board with a draft space program for a 132000 square foot office building including a 6000 square foot child day care center for an estimated 60 children (assuming 904 square feet of interior space per child) Not included in the building gross square footage is another 2260 square feet of exterior play space that would be required for a center of that size

Planning Board members expressed concerns that including a child care center would add risks costs and complexity to the headquarters project that would outweigh the benefits of the amenity and potential jeopardize the projects financial feasibility They also questioned whether a child care center would be an appropriate use of expensive prime retail or office space The Board directed staff to gather information

legislation that the County Council approved on March 5 2013 may be relevant to the Boards decision about integrating child care into a downtown Wheaton headquarters 1 The bill requires the Office of Management and Budget to submit a child care facilities impact statement analyzing the feasibility of including child care in certain capital projects proposed in the countys Capital Improvements Program While child day care centers have been built in several County government facilities in the past few years there has not been a routine or mandatory assessment of the potential for adding child care to projects built with County funding

1 Bill 38-12 Capital Improvements Program -Child Care Assessment

llPage

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 8: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Scope and method

This report provides an array of background information on trends and conditions that would have an impact on the value and cost-effectiveness of a child care facility in an M-NCPPC building at a downtown Wheaton site The study covers the following topics

bull Child care industry trends

bull Preliminary needs assessment

bull Existing market conditions in Wheaton

bull Operating requirements

bull Child care in government spaces

bull Transit-oriented child care

bull Conclusion

If the Board chooses to incorporate child care into its facility planning this information could support a more detailed feasibility analysis

Staff interviewed a variety of individuals including local and national child care providers and staff members public officials who have built child care centers in government space and state child care licensing staff Staff also reviewed literature and compiled data on regulatory standards child care economics and industry best practices from various online sources

Child care industry trends

Demand for child care is high and rising

Demographics job growth and economic necessity are driving demand for child care nationwide The need for child care has increased steadily each decade since World War II as career opportunities for women have expanded Population growth the rising cost of living and other factors have accelerated this trend

Demand is especially high in this region Compared to the nation as a whole mothers with young children in Montgomery County and in the Washington DC metro area are more likely to remain in the labor force This partly reflects comparatively high education levels among women living here as well as the continuing demand for skilled workers in this region The regions high cost of living also makes it challenging for many low and moderate income families to have a parent stay at home

There is a growing array of child care options

Child care is a growth industry Child day care services (NAICS 6244) is a $33 billion industry with 74000 establishments employing more than 850000 workers nationwide The projected annual job growth rate is 26 percent-double the pace of job growth overal12

Child care may be family-based or center-based In Montgomery County there were 456 centershybased child care programs serving 29118 children (including 17383 children in 8- to 12-hour child care centers) in 2011 The countys 1000 family-based child care providers supplied another 7308 child care spaces3

Centers are the fastest growing market segment Child care centers have several advantages over inshyhome providers including a large stable cash flow to cover startup and operating costs attract qualified staff and offer amenities such as extended hours and accredited learning In-home

2 Child Care Services Industry Profile (1212013) First Research wwwfirstresearchcom Employment Outlook 2010-2020 Us Bureau of Labor Statistics January 2012 middotChild Care Demographics 2011 Montgomery County Report Montgomery County Child Care Resource and Referral Center et 01

21Page

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 9: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

providers (who must be licensed in Maryland to care full-time for any children outside their family) also face stiff price competition from illegal unlicensed home-based providers Between 2006 and 2015 the number of centers is projected to increase by 30 percent in Montgomery County while the number of small family-based licensed providers is projected to remain flat at around 10004

There are many different organizational models for child care centers The majority (72 percent) of centers in the US are commercial for-profit enterprises with non-profits and government providers accounting for most of the remaining market share 5 Child care centers can be locally-based enterprises with one or more locations or franchises of large national corporate chains Most centers in Montgomery County are either independent businesses in self-leased or owned space or service contractors operating facilities in public community or privately-owned space

Child care can be found in more places

Child care centers have flexible location options No longer relegated to homes suburbs or church basements child care is an increasingly visible part of the urban mix In Montgomery County there are child care facilities in office buildings libraries mixed-use developments transit centers community centers and hospitals The range of neighborhood care options has expanded as well with MCPS creating spaces in area schools for full-time infant toddler and preschool care and early education

Child care centers generate strong co-location advantages More developers around the country are building space for child care centers into their commercial and mixed-use projects with the expectation that a quality child care center will attract employers and skilled workers Shopping center owners are finding that leasing space to child care providers boosts retail traffic and occupancy rates with minimal parking impacts6

Child care space is adaptable While it may have more exacting safety and location requirements than other uses quality child care can be accommodated in a variety of new or retrofitted spaces If need be child care spaces can be expanded subdivided or converted to office retail school recreational or other uses Good design and flexible architecture help balance existing and future needs

More employers are supporting child care

Employers have become a critical feature in the child care landscape Child care is viewed by many employers as an important perk to help them attract and retain employees Employers have reported that offering child care support to their employees boosts recruitment reduces turnover and absenteeism and increased productivity On the downside some companies scaled back their support along with other benefits during the recession

Employer support takes many forms More employers especially large corporate institutional and government employers are creating space on-site for child care Where this is not feasible employers may contract with outside centers to offer discounts preferred access or other advantages to their employers Flexible spending accounts and direct subsidies are additional ways that employers can support the child care needs of employee families

The need for affordable quality care has outpaced supply

The cost of child care is high and rising Despite the recession average child care costs have risen steadily in Montgomery County In 2011 the average weekly cost of full-time center-based care for an infant or toddler in the County was $30669-a 136 percent increase over 2008 A family with

4 Montgomery County Child Care Resource and Referral Center S First Research

6 Ronald Reim Childcare centers taking bigger role in retail leasing mix Midwest Real Estate News May 2008

31Page ~

ct

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

  • a
  • b
  • c
Page 10: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

both an infant and a preschooler in child care earning the Countywide median income for a family of four ($106248) currently would need to spend more than 22 percent of their income on child care 7

lower and moderate income families are especially challenged More than half (56 percent) of parents who reported they could not find child care in Montgomery County cited cost as the reason s

Many parents in the County face a difficult tradeoff between affordability and quality

long waiting lists are commonplace for quality affordable and conveniently located centers There is intense competition throughout the region for accredited moderately-priced centers that are located near higher density residential areas job and transit centers and schools Centers that offer infant and toddler care extended hours and other options are especially sought-after

Cost-containment options are limited Child care centers today can tap into a solid base of experienced managers trained professionals technical standards best practices advocacy and other resources to help them operate stable efficient and profitable businesses Even so establishing a child care center is a complex undertaking that can require substantial upfront knowledge planning and financial investment In addition some costs associated with providing quality care in a convenient location are unavoidable including regulatory compliance costs accreditation requirements lease costs and training and salary expenses

Young children in workingfamilies_ United States Montgomery County Wheaton COP

Children underage 61iving with parents 23347026 74235 5446 Parents in labor force 15077268 52979 3832

65 71 70 Two-parent families

Children under age 6 living with two parents 15015157 57271 3396 Both pa rents in I a bor force 8753696 38026 1972

58 66 58 Single-parent families

Children under age 6Iiving with one parent 8331869 16964 2050 Si ngl e pa rent in I a bor force 6323572 14953 1860

76 88 91

Source Montgomery County Planning Department analysis of US Census Bureau 2009-2011

American Community Su data

7 Montgomery County Child Care Resource and Referral Center 2011shybull Montgomery County Child Care Resource and Referral Center 2011

41Page

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

51Page

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

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Page 11: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Preliminary need assessment

Potential demand for a child care center among M-NCPPC employees

An early first step would be to conduct a formal survey of M-NCPPC staff (and in any other partner organizations if relevant) to assess the potential level of interest in a center and identify programming special services and features that would best serve the target population

GSA recommends that needs assessment surveys be used with caution only 20 percent of interested users become actual users According to GSA 2 to 5 percent of federal employees currently use federal child care centers

Given the size of the commissions staff and likely fluctuations child day care requirements at any given time the Commission probably could not cost-effectively support a child care center for the dedicated use of county employees It should be assumed that capacity should be backfilled by opening spaces to families working in other government agencies organizations or business establishments especially those with which the Commission might partner in this project such as Montgomery County Government WMATA etc

Community need

The need assessment should include an analysis of community demographics in the vicinity of the proposed facility In particular this assessment should examine incomes female labor force participation rates and transit use

Data for Montgomery County as a whole suggests that most families with young children use or need child care services Seventy-one percent of children under the age of six in Montgomery County need a caregiver for at least a portion of the day so their parents can work This translates to around 53000 infants toddlers and preschoolers countywide needing child care services in some form or another For single parents there is very little choice 88 percent of children under age six living with one parent in Montgomery County require child care so the parent can work

Unmet demand is especially acute for certain age categories Most child care centers have very long wait lists for infant and toddler care Low mandatory staffchild ratios (13) make it more difficult for providers to serve families with children under the age of 2

Wait lists are commonplace for all age groups for many centers in the County Ucensed accredited centers tend to have competitive enrollment and wait lists for most age groups This is more likely to be the case for centers that are moderately-priced located in densely populated areas convenient to jobs homes or transit employer-sponsored or serving special needs children

Maryland staffchild ratios and maxiumum group size

Age Grou) Ratio Children per Classroom

0-18months 13 6

18 - 24 months 13 9

2 years 16 12

3-4 years 110 20

Syears orolder 115 30

Source Maryl and State Department of Education Division of Earlv Chil dhood Devei opmem

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Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

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Page 12: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Existing market conditions in Wheaton

There is a dearth of licensed child care in downtown Wheaton

The map below shows the location and size of licensed 8-12 hour child care centers within a Yz 1 and 1 Yz mile radius of the Wheaton downtown area None of these centers are located at the Wheaton Metro Center

The Wheaton market probably could support a child care center

One non-profit child care chain in the County interviewed for this report indicated that they already have identified Wheaton as a prospective expansion site given the areas existing supply deficit transit-access and rising population and income forecasts

While a further analysis would be needed this suggests that it is highly likely that M-NCPPC could attract competitive bids from child care providers especially given the potential location of the facility

Licensed child care centers in vicinity of proposed Wheaton site

by capa city

bull 12 - 20

21 - 40

41 - 80

81 - 114

115-174

SOlJce M onl9011 County Planring Department Maryland State Department of Educaol LOCATE datligtase

61Pa ge

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

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Page 13: December 3,2013 MEMORANDUM November 27,2013montgomerycountymd.granicus.com/DocumentViewer.php?file=...December 11, 2013 page 3 The attached Health and Hwnan Services (HHS) report on

Operating requirements

Licensing

bull The Maryland State Department of Educations Office of Child Care (Ocq regulates most child care centers under COMAR 13A16 (Licensed Child Care Centers) The OCC Licensing Branch sets the maximum child capacity for each center individually within established guidelines

bull A minimum of 35 square feet of floor space must be provided for each child in care

bull A center shall have an outdoor activity area on the premises of adjacent to or near and safely accessible to the center that provides adequate usable play space for the approved capacity of the center The size of the outdoor play area must be at least 75 square feet of usable play space for one half of the approved capacity of the center Centers may secure a permit to use nearby parks and other green spaces to supply some of the required outdoor space subject to site-specific conditions such as traffic levels on any roads that must be crossed

bull The facility must pass OCC Fire Safety and all other required inspections before OCCwill issue a facility license Routine inspections are conducted at least three times every two years

ZoningFire SafetyPermitting

bull The possible site for the headquarters project is located in a CommercialResidential zone and day care center is a by-right use No special exception would be required for the facility

bull The Fire Marshal has detailed specifications governing child care centers One of the most significant is that infant and toddler rooms must be designed with direct outdoor egress to enable staff to roll evacuation cribs out of the building to the designated evacuation site

bull The Department of Permitting Services would require a parking analysis for the property to ensure that parking for child care center employees as well as short-term pickups and drop-offs can be accommodated along with other uses on the property

Scale requirements

bull To minimize the need for subsidy it is important that a child care provider be able to operate a viable business at the site Center operators that were interviewed for this report suggested that the minimum operating size for a child care center to be stable and profitable would be between 70 to 100 children

bull The number of children that can be accommodated in a facility depends in large part on the specific age mix Younger children require more intensive staffing making these age groups more costly to serve Centers that offer infant and toddler care typically cross-subsidize younger age classrooms with income from higher age groups that have lower staffchild ratios Providers that operate more than one site also may subSidize the cost of infant care at one site with revenue from another

71Page

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