Program costs at the three HCD day care sites are significantly higher than the private sector.
Privatize HCD’s three day care sites. Offer current employees the right of first refusal for jobs at the new private sites. Reduce headquarters staff from two (director and office supervisor) to one employee who would monitor contracts.
Cost Savings, Organizational
HCD Day Care Program
Estimated Annual Impact:
Estimated Implementation Costs:
Minimal. Costs would include staff time required to draft a request for proposals (RFP) and award the contract(s), as well as moving expenses for remaining city supplies and equipment.
Barriers to Implementation:
Possible opposition by the City’s teachers’ union.
Three months would be required to award the contract. Change should be timed such that: (1) children would attend new classes in September, at the beginning of the school year; and (2) day care supervisors/teachers would be given sufficient notice to apply for positions that would begin the following September.
Issue an RFP.
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