City of South Daytona
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1 City of South Daytona Community Development Dept. Post Office Box South Daytona, FL FAX From: Date: Re: MEMORANDUM Joseph W. Yarbrough, City Manager John Dillard, Community Development Direct 4 February 6, Special Use for Pediatric Extended Daycare Center at 917 Beville Road. A. Background Information: The property located at 91 7 Beville Road contains two structures. The smaller structure is a 2,450 square foot building that fronts Beville Road and was built in This building is occupied by a nail and tanning salon. The larger structure that is located in the rear of the parcel was built in 1993 and is partially vacant. This building contains about 8,900 square feet of space in several suites. The proposed Pediatric Daycare if approved will occupy Suites G and H for a combined area of about 4,100 square feet. The proposed operating hours are fiom 7:00 am to 5:00 pm, Monday through Friday. The proposed business is designed to provide a safe social and learning environment for peer interaction and to help reduce homebound isolation for Medically Complex children who have chronic conditions requiring attentive medical services. The projected age of these children will be fiom infant to 2 1 years of age. The facility will provide physical, occupational, speech and respiratory tailored therapies in a structured environment to meet the individual needs of each child. The proposed staff for this facility will include State of Florida licensed Registered Nurses, Licensed Practical Nurses, and Certified Nursing Assistants. Also included will be Physical, Speech, Respiratory and Occupational Therapists and a teacher fiom the Volusia County School System to provide specific individual learning programs as needed by the children. Breakfast and lunch will be provided to meet the individual needs of each child. Bo Facts and Analysis: 1. Existing Zoning: The existing zoning is Business General Commercial (BGC), which allows the proposed use under special exception. The proposal does not involve a change in the zoning district classification. Continuing Commitment to Excellence
2 2. Parking: The parking is adequate for the site and could exceed the minimum requirements of the Code by one space. Code requires 1 space for every 10 students based on State Licensed maximum plus 1 space for every staff member. The projected ultimate staff number is 12 members and a maximum of 35 children. This equates to 16 spaces required and the site currently has 55 existing parking spaces exclusive of the 24 spaces designated for the smaller structure facing Beville Road. 3. Traffic generation: City Staff believes the traffic generated by the site and traffic flow around the business will not adversely impact the area and general public safety. The site fronts a major collector roadway (Beville Road). 4. Buffering: There appears to be adequate buffering on all sides of the building. 5. Outside storage: No outside storage will be allowed at this site and the applicant does not propose outside storage and has agreed to this requirement. As a cursory review of the facility for the property owner, the structure was initially inspected on December 12, A building layout was submitted and reviewed by the Chief Building Official. After adjusting "Client Rooms" to meet ingresslegress codes, the building will meet all life-safety requirements and bathrooms meet the current American Disability Act requirements. However, a pull-down firelsmoke alarm system will have to be installed prior to opening the facility. The owner is aware and plans to have the alarm installed. This facility requires licensing by the State of Florida Agency of Health Care Administration, Volusia County along with the City's Business Tax Receipt (BTR) process. The facility operations will be required to adhere to rules and regulations from Florida Medicaid, the Prescribed Pediatric Extended Care Services Coverage and Limitations of the Florida Statutes and Chapter 400 and 59A-13 of the Florida Administrative Code. All State and County approvals will be acquired prior to the final approval and issuance of the City BTR. A copy of the business Executive Summary has been attached for review. C. STAFF RECOMMENDATION: Staff supports the approval of this Special Use. This type of facility is non-existent and much needed in the area and the proposed buildinglfacility location is well suited for the proposed use. This proposed Special Use was presented to the Land Development Regulation Board on January 16,20 13, and was unanimously approved. Page 2 of 2
3 EXECUTIVE SUMMARY ln troduc tion The business, "Loads of Smiles, LLC", is a Prescribed Pediatric Extended Care. licensed through the Agency for Health Care Administration as PPEC. It is a day treatment center for medically complex children from ages newborn to 21 years of age. The center will be licensed for 35 children. The Company Christine Belz will be the sole proprietor of the business. The proposed site will be leased and located at 917 Beville Road, Suite G & H, South Daytona, FL close to 95 and 1-4 exchange. Our team will consist of licensed staff through the State of Florida. Registered Nurses, Licensed Practical Nurses, Certified Nursing Assistants, Physical, Speech, Respiratory and Occupational Therapists an Administrator, office staff and a teacher from Volusia County Schools. Services The center is designed to offer: A safe, social environment, which provides experience in peer interaction and socialization thus reducing homebound isolation; increase the accessibility to professional staff; to improve parent coping skills and decrease burn out. We will provide education to all parents on longterm strategies for caring for medically complex children; to promote developmental stimulation; to provide faster rehabilitation; to provide a costefficient care option compared to costly hospitalization or private duty nursing; to improve utilization of limited health care dollars. We will work with individual families and their physicians to provide an appropriate care plan for our team of professionals to follow. PPEC will provide individualized treatment for children with medically complex conditions The Market As figures show, there is a large population of our areas children that have special needs. The only competitor in the area has a maximum capacity. "Loads of Smiles" will offer families not only a choice for the care their loved one receives but an alternative to provide all therapies and school services in one setting, thus relieving time consuming appointments. Parents are able to enter the work force to provide for their families and have the comfort knowing that their child is in a safe environment receiving the best medical care by our team of professionals. Financial Considerations The start-up business is seeking a loan for a total of $150,000. This includes a total start-up of $91,679. The remaining $58,321 will be used for reserves and operating expenses for the first three months covering any unexpected loss in census. The total net business profit for the end of year one will be $128,685 with a cash position of $187,006. End of year two net business profits will be $675,412 with a cash position of $862,418.
4 I: NAME OF BUSINESS The business name is "Loads of Smiles, LLC". It is a limited liability company organized under the laws of the state of Florida, filed on September 17, II: OWNERSHIP OF BUSINESS The business will be licensed as a Limited Liability Corporation (LLC). A Business Law Attorney will handle legal issues including statutory compliance with formation and registration requirements including form filings with state agencies. Christine A. Belz will be the sole proprietor, owning 100% of the said business. Ill: INFORMATION ON BUSINESS A. TYPE OF BUSINESS AND SERVICES PROVIDED The business of interest is a Prescribed Pediatric Extended Care, licensed through the Agency for Health Care Administration as PPEC. It is a day treatment center for medically complex children from ages newborn to 21 years of age. Our team will consist of licensed staff through the State of Florida. Registered Nurses, Licensed Practical Nurses, Certified Nursing Assistants, Physical Therapists, Speech Therapists, Respiratory Therapists and Occupational Therapists. All individuals must meet specific requirements by the state having experience in pediatric andlor neonatal care. The center is designed to offer: A safe, social environment, which provides experience in peer interaction and socialization thus reducing homebound isolation. Increase the accessibility to professional staff. To improve parent coping skills and decrease burn out. We will provide education to all parents on long-term strategies for caring for medically complex children. To promote developmental stimulation To provide faster rehabilitation To provide a cost-efficient care option compared to costly hospitalization or private duty nursing. To improve utilization of limited health care dollars.
5 We will work with individual families and their physicians to provide an appropriate care plan for our team of professionals to follow. PPEC will provide individualized treatment for children with medically complex conditions such as, but not limited to: - Chronic lung disease - Medication monitoring - Cerebral palsy - Post Hospital discharge - Immune deficiency - IV Therapy - Cystic fibrosis - Accident Recuperation - Seizure disorders - Heart Disease - Muscular dystrophy - Failure To Thrive - Ventilator Needs - Sleep Apnea - Renal disease - Spinal Bifida - Prematurity complications - GI Reflux - Metabolic disorders - Post Surgical Care ---=-I Management of exacerbation of asthma Children will receive Physical, Occupational, Speech and Respiratory therapies in an environment that focuses on the developmental and social needs of children who require short-term, long-term, or intermittent treatment. All therapy services will be tailored to each child's needs and will be implemented per their individualized care plan. Teachers from Volusia County Schools will teach specific enrichment programs for our children who are three-years-old and up and eligible for services through the counties criteria. We will also have child development associates on staff who design and implement structured schedules of activities throughout each day to provide a stimulating environment for the child. We will also offer after-school; holiday and summer break programs for children enrolled in a Volusia County School. Agreements can be made with the Volusia County Schools to provide bus transportation to the center for the child to be cared for after school hours by our staff. Family members, or a contracted bus service transports children to the center daily. If children are eligible for bus service, a contract will be made with the bus company and escorted transportation will be provided to pick up and drop off that child from their home. Children who are medically able, breakfast and lunch will be provided to them at the center. All licenses will be issued to the center prior to opening.
6 MISSION STATEMENT Through the endearing spirit of my special son, Zachary, we will ensure the brightest future possible for all children we serve. We will strive to optimize each child's potential and provide him or her with the highest quality of life possible through caring and nurturing hands. B. HISTORY OF BUSINESS The business, Loads of Smiles, is a start-up business. C. LOCATION AND HOURS OF OPERATION Thehours of operation are Monday through Friday 1:00 am until 5:00 pm. It afterschool hours permit, and/or necessary, we can adjust our schedule accordingly. However, no child is able to exceed more than 12 hours in the center per day according to Agency for Health Care regulations. Our site is located at 917 Beville Road, Suite G & H, South Daytona, FL. This site is an excellent location being off the 1-4 and 95 interchange. The property is sq. feet with a small area outside to be fenced off for a playground, which is required by regulations. The location will be leased long term and has potential areas for growth and expansion. A contractor has been contacted to make any necessary changes and or additions to the site. D. REVENUES AND ACCOUNTING A Projected Summary of Revenues and Expenses is included in the Appendix 1 and 2. The major source of operating revenue is from Medicaid through the State of Florida. The Medicaid Coverage's and Limitations Handbook for PPEC centers (Appendix 3) states repayment of $ per child (over four hours up to twelve hours per day). For part-time or after-school children the rate of pay is $22.67 per hour (four hours or less per day billed in units of one hour each unit with any fraction of an hour rounded up to full hour). There are also opportunities to work with private insurance companies and contract with them to eliminate private duty home nursing for their patients. Census goals start with 3 full-time patients and increase by 3 each month until the 3rd month. The census will then increase by 3 every other month until a maximum capacity has been reached at approximately the 25th month for a census of 35.
7 Owner salary includes Administrator, Director of Nursing and Administration Office Staff. Employee wages include growth in staff required by the Agency for Health Care Administration per census. Guidelines for PPEC include one licensed staff for 3 children. Growth is taken into consideration on Employee Wages. Workman's CompensationlPayroll Taxes are taken into consideration at 2.7% of payroll expenses per month. Children 1 Total Staff 1 RN 1 RN or LPN Direct Care, or Lice115 Nurse (RN or LPN) lnsurance quote was received for Anna - Serzer lnsurance including professional liability and General Liability, Slip and Fall. $ year. As we proceed, personal property will be quoted at that time. The total net business profit for the end of year one will be $128,685 with a cash position of $1 87,006. End of year two net business profits will be $675,412 with a cash position of $862,418. E. INVENTORY AND SUPPLIES Inventory will be purchased prior to opening the center. Office, cleaning and miscellaneous supplies will be purchased on a monthly basis. Kitchen supplies, which include light meals, will be purchased on a weekly basis. F. LEGAL The center will be licensed for 35 children. The business will be licensed by the State of Florida, Agency of Health Care Administration; Volusia County; and The City of Daytona Beach. All licenses will be issued prior to opening. We will be required to follow the rules and regulations from Florida Medicaid, Prescribed Pediatric Extended Care Services Coverage and Limitations handbook, Florida Statutes, Chapter 400 and 59A-13, Florida Administrative Code.
8 G. CURRENT PROPOSAL The start-up business is seeking a loan for a total of $1 50,000. This includes a total start-up of $91,679. The remaining $58,321 will be used for reserves and operating expenses for the first three months covering any unexpected loss in census. A detailed outline of Start-up Expenses including a Capital Equipment List is located in Appendix 4 and 5 of this Business Plan. Included in the Start Up Expenses are: Approximate costs for construction on site Administration salaries for a month prior to opening Capital Equipment Advertising and Marketing Supplies (brochures, letterhead, etc.) Monthly loan payment to lender IV. MARKET ANALYSIS We have identified only one center in the area and that information is listed in Marketing Analysis Appendix 6 along with all the sites that are licensed through The Agency for Health Care Administration. As of July 2012, Pediatric Health Choice was at total capacity with a census of 33, Our target market will be an infant to 21 years of age. According to Appendix 7, a Demographics Sheet from the U.S. Census for 2007, shows there are children ages with a disability, which is 4.5% of the total population for Volusia County. Although they did not state a breakdown for children aged 0-5 with a disability, they did state the population under 5 is and assuming the number of disability is 4.5% or 1186 children in Volusia County. Appendix 7, from the Florida Department of Education shows there are a total of 12,998 students with Disabilities in Volusia County that are enrolled in the school district. The following Appendix 8, from the Florida Department of Education, School District Data, shows a breakdown of the specific disability the child has. As figures show, there is a large population of our areas children that have special needs. The only competitor in the area has a maximum capacity. Loads of Hope will offer families not only a choice for the care their loved one receives but an alternative to provide all therapies and school services in one setting, thus relieving time consuming appointments. Parents are able to enter the work force to provide for their families and have the comfort knowing that their child is in a safe environment receiving the best medical care by our team of professionals.
9 V. MARKETING STRATEGY A. ADVERTISING We will use a detailed marketing plan and we will focus on marketing the center through various organizations including state and local for-profit and not-forprofit. The target areas will be Deland, Deltona, Ormond, Daytona, Port Orange, New Smyrna and Edgewater. The population focus will be families that are currently receiving Medicaid for medical services. B. PROMOTION Y\le~workwXToSpitals in theed~a~~n~a~rinainacentral Florida - areas to accept children directly from the NICU, PlCU or general pediatric unit. Our marketing strategy will target the following: Pediatric Physicians Community Resource Centers Medicaid and Government Agencies Local Chamber of Commerce Complex Case Departments of Insurance Companies Volusia County Schools Flagler County Schools There are currently 62 Pediatric Physicians in Volusia County. There are currently 41 Pediatric Physicians in Flagler County. Florida Hospital - Ormond, 301 Memorial Medical, Daytona Beach, FL - 16 Pediatric Specialists on staff. Halifax Medical Center N. Clyde Morris Blvd., Daytona Beach, FL - 48 Pediatric Specialists on staff. Many children see specialists out of area, i.e. Jacksonville or Orlando and we would be able to market those areas as well.
10 VI. MANAGEMENT PLAN A. Sandy Cornelius will be hired as the Administrator of the center. She comes with extensive knowledge in marketing and administration skills while working as Administrator within Assisted Living Facilities. She was employed with The Arbors, which was a 40-bed facility, and Independence Court of Ormond Beach, which was a 11Bbed facility. In that capacity she was responsible for all marketing of the facility, day-to-day operations including accounts payable and receivable, payroll, billing - private and Medicaid, supervise staff and management team and maintain census to capacity. Ms. Cornelius has been employed with the Volusia County School System for the last 7 years as a Gifted Teacher. Please see Appendix 10 for resume of more detailed responsibilities m&-- - comes with the knowledge in marketing and administration as well as nursing skills. She was employed with Pediatric Health Choice as a pediatric nurse for special needs children for over two years. Prior to that she was Administrator of Country Side Lakes, which is a 200 bed Assisted Living Facility and had the opportunity to work at Peridot PlaceIForest Lake as the Administrator of an 81- bed facility. At Peridot Place she set up the facility during construction and was responsible for all areas of operation including marketing materials, policies and procedures, operating manuals, hiring and training new personnel and setting up facility for occupancy. Please see Appendix 11 for resume of more detailed responsibilities. Both management staff has received education in their respective positions and are current in their training, licenses and certifications. VII. FINANCIAL ANALYSIS A. The total net business profit for the end of year one will be $128,685 with a cash position of $187,006. End of year two net business profits will be $675,412 with a cash position of $862,418. B. Census goals start with 3 full-time patients and increase by 3 each month until the 3rd month. The census will then increase by 3 every other month until a maximum capacity has been reached at approximately the 25th month for a census of 35. C. Revenue per child is based on the following: (Example 3 children) $ per child per day X 3 children = $ per day X 5 days a week = $ per week X 4 weeks per month = $ per month.
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