Friday, May 11, 2012

Campus child care contingencies

By on March 19, 2008

The University released results of a campus-wide child care survey March 13, detailing the preliminary steps taken to construct an on-campus child care facility.

According to the survey report, University-hired consultants from WFD Consulting estimated building costs for such a center to reach between $3.2 million and $3.7 million and require 1.3 acres of land. The proposed 12,000 square foot facility would charge $165 per week and accommodate about 200 faculty and staff clients and 40 student clients, according to survey results. According to the proposal, the University will stand to either gain a profit of less than $600 from the center or suffer a loss of more than $160,000. The proposal suggests several different options for funding and management.

UNIVERSITY-OWNED AND OPERATED

What it means: The University will own the land and operate the center without outside management.

Benefits: The University will have total control and responsibility over the facility, and staff will be employed by the University.

VENDOR MANAGED

What it means: University owns the land and the facility but pays a vendor to operate it.

Benefits: The University will establish a contract with a vendor that will provide extra liability protection, and staff will be employed by the vendor.

POTENTIAL SOURCES

Developer or nonprofit agency funds the project and leases it to the University. A third-party vendor provides funding for the start-up costs of the project, eventually leasing it or selling it to the University. Overall, the report suggests the use of a combination of funding sources to be the most effective route.

VENDOR-OWNED AND OPERATED

What it means: Total control of center rests with a vendor that operates on University land.

Benefits: Ownership by a vendor gives University more protection financially but puts control in the hands of a third party.

NOT-FOR-PROFIT AGENCY

What it means: The center will be managed by a not-for-profit entity created by the University.

Benefit: An agency board, consisting of University faculty and staff, will set standards for the center but will have less influence. The center may be eligible for grants and subsidies to operate.

FUNDING

The report detailed three different potential sources of funding for the child care center. The University will pay for most of the initial project costs. Suggested sources included a capital campaign, fund-raising, grants, student government or a building loan.

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