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Updated Tuesday, November 25, 2008 9:28 PM

Jack and Jill Day Care Center cancels lease on Sherman site

BY KATHY WILLIAMS

HERALD DEMOCRAT

Sherman Daycare Center operations are winding to a close on Dec. 31, but the plan for another daycare center that specializes in serving low-income clients has fallen through. Jack and Jill Child Care Center of Denison, which had leased the building and furnishings from the city, has canceled the agreement.

The Sherman City Council decided as part of its budget process last summer to close the day care center, but offered the building, its contents and utility service to a non-profit operation to run. The city sent word of the opportunity to non-profit daycare centers in the area. No Sherman agencies expressed interest in leasing the property. However, Jack and Jill asked to operate the center at 1003 N. East St. in Sherman.

The city council agreed Oct. 6 to lease the center to Jack and Jill for $1 a year. In return, the city agreed to provide water, sewer and trash service, plus use of the building and all its furnishings. The lease could be renewed each year for nine additional years.

Nov. 19, Nondas Bullard, president of Jack and Jill's Board of Directors, signed a letter to the Sherman City Council in care of City Manager George Olson, stating Jack and Jill's executive board had voted unanimously to "terminate and decline the lease agreement"... and cited a "lack of timely communication; lack of needed returned telephone calls; unavailable documents needed to proceed for a smooth transition for the children of Grayson County and other incidents."

Assistant City Manager Robby Hefton, wrote a letter to members of the city council outlining the commitments city staff had made, and kept, to Jack and Jill. "For the city staff to willingly take on additional responsibilities to assist them in their transition after the city had agreed to provide these facilities and services at no charge and then be accused of not cooperating with Jack and Jill is extremely insulting and unprofessional."

He said he had spoken by telephone to both Bullard and the center's director Kay Luper Nov. 17 and neither indicated anything was wrong or lacking.
Other than its letter, comments were not available from Jack and Jill.

Telephone calls made Tuesday by the Herald Democrat to the center and to the board president's home were not returned.

Olson was out of town and unable to comment on the matter.

Hefton wrote councilors the lease agreement committed the city to report the property's condition to Jack and Jill. To live up to that commitment, city staff provided Luper with copies of inspection reports on the building. They conducted a tour of the building and playgrounds for Jack and Jill staff and Board members. The city provided Jack and Jill a detailed listing of the building's contents and furnishings. All of this took place before the Oct. 6 council meeting.

On Oct. 7, city staff cleared tree limbs overhanging the building, "the only issue raised by Jack and Jill in response to the facilities tour."

Beyond what the city committed to in the lease agreement, city staff assisted in the transition. The city also agreed to "transition electric, gas and cable utilities to Jack and Jill over three to six months," by paying the bills.

On Oct. 20, city staff sent letters home with students about changes at the day care center, encouraging them to contact Jack and Jill for more information. City staff also arranged a meeting between current Sherman Daycare Center staff members with Jack and Jill Nov. 12 in a city building and publicized the meeting, encouraging them to attend by circulating a sign-up sheet.

Hefton said in the letter that city staff had met in person and by phone with Luper and Bullard on many occasions. To try to ensure the center's success in providing day care to low income populations, the city also gave Jack and Jill information on federal grants. The city also provided information regarding the overall fee structure the current city-run center uses, "but did not provide detailed information on how much each student paid."

Hefton said he believes privacy laws would not permit such a release of information.

"There were several things that Jack and Jill asked for from the city that we could not provide," Hefton wrote. "Specifically, they asked for names and addresses of existing students to contact them directly. We did not feel comfortable giving them this information, so we sent the letter home ... Also they asked about information ... which would have allowed Jack and Jill to deduce the family's income level for each student."

Hefton wrote that the only responsibility the city had under the lease was to provide the building and fully furnished contents. "The value of facility and furnishings along with the value of services to be provided to Jack and Jill at no charge, would have been over $25,000 the first year. This does not include the value of considerable time the staff has spent on this issue."

Hefton said the city is still open to another non-profit's coming in to operate the center, and will not "hold (Jack and Jill) over a barrel" on the lease terms. Other possibilities might include offering the center to for-profit child care businesses, but that would require a formal bid process. He said he already has gotten some inquiries.

But if neither for profit nor non-profit options worked, Hefton said, the city might have to look at other city-related uses for the building. "I wish it would have worked out. This is a disappointment. ... How do you walk away from a free building, furnishings and utilities worth about $25,000."

At least 10 of the students already have moved to Key Memorial Methodist Church's daycare center. And some of the teachers have already left the city's center. "The winding down is happening through attrition as well, but whatever exists there, at least with the city of Sherman, will be wrapped up Dec. 31," said Hefton.

Sherman Mayor Bill Magers said he, too, was disappointed. "I thought we had a solution and we're still looking for alternatives." He said he thought there might have been some management challenges to operating day care centers in two cities that weren't evident initially to Jack and Jill.

"But I'm optimistic," Magers said. "We just really heard about it today and this is the Thanksgiving weekend, so maybe another non-profit will come through next week."

Magers and his wife Angela own a private school and he could not participate in the discussions, or vote to end the city-run Sherman Daycare Center.

"I support the city staff in their efforts 100 percent and even though I was unable to participate in the debate and vote, I support the city council in their decision to eliminate taxpayer-subsidized day care 100 percent," Magers said. "Both the actions of the council and the staff are commendable." 

Sherman Daycare Center operations are winding to a close on Dec. 31, but the plan for another daycare center that specializes in serving low-income clients has fallen through. Jack and Jill Child Care Center of Denison, which had leased the building and furnishings from the city, has canceled the agreement.

The Sherman City Council decided as part of its budget process last summer to close the day care center, but offered the building, its contents and utility service to a non-profit operation to run. The city sent word of the opportunity to non-profit daycare centers in the area. No Sherman agencies expressed interest in leasing the property. However, Jack and Jill asked to operate the center at 1003 N. East St. in Sherman.

The city council agreed Oct. 6 to lease the center to Jack and Jill for $1 a year. In return, the city agreed to provide water, sewer and trash service, plus use of the building and all its furnishings. The lease could be renewed each year for nine additional years.

Nov. 19, Nondas Bullard, president of Jack and Jill's Board of Directors, signed a letter to the Sherman City Council in care of City Manager George Olson, stating Jack and Jill's executive board had voted unanimously to "terminate and decline the lease agreement"... and cited a "lack of timely communication; lack of needed returned telephone calls; unavailable documents needed to proceed for a smooth transition for the children of Grayson County and other incidents."

Assistant City Manager Robby Hefton, wrote a letter to members of the city council outlining the commitments city staff had made, and kept, to Jack and Jill. "For the city staff to willingly take on additional responsibilities to assist them in their transition after the city had agreed to provide these facilities and services at no charge and then be accused of not cooperating with Jack and Jill is extremely insulting and unprofessional."

He said he had spoken by telephone to both Bullard and the center's director Kay Luper Nov. 17 and neither indicated anything was wrong or lacking.
Other than its letter, comments were not available from Jack and Jill.

Telephone calls made Tuesday by the Herald Democrat to the center and to the board president's home were not returned.

Olson was out of town and unable to comment on the matter.

Hefton wrote councilors the lease agreement committed the city to report the property's condition to Jack and Jill. To live up to that commitment, city staff provided Luper with copies of inspection reports on the building. They conducted a tour of the building and playgrounds for Jack and Jill staff and Board members. The city provided Jack and Jill a detailed listing of the building's contents and furnishings. All of this took place before the Oct. 6 council meeting.

On Oct. 7, city staff cleared tree limbs overhanging the building, "the only issue raised by Jack and Jill in response to the facilities tour."

Beyond what the city committed to in the lease agreement, city staff assisted in the transition. The city also agreed to "transition electric, gas and cable utilities to Jack and Jill over three to six months," by paying the bills.

On Oct. 20, city staff sent letters home with students about changes at the day care center, encouraging them to contact Jack and Jill for more information. City staff also arranged a meeting between current Sherman Daycare Center staff members with Jack and Jill Nov. 12 in a city building and publicized the meeting, encouraging them to attend by circulating a sign-up sheet.

Hefton said in the letter that city staff had met in person and by phone with Luper and Bullard on many occasions. To try to ensure the center's success in providing day care to low income populations, the city also gave Jack and Jill information on federal grants. The city also provided information regarding the overall fee structure the current city-run center uses, "but did not provide detailed information on how much each student paid."

Hefton said he believes privacy laws would not permit such a release of information.

"There were several things that Jack and Jill asked for from the city that we could not provide," Hefton wrote. "Specifically, they asked for names and addresses of existing students to contact them directly. We did not feel comfortable giving them this information, so we sent the letter home ... Also they asked about information ... which would have allowed Jack and Jill to deduce the family's income level for each student."

Hefton wrote that the only responsibility the city had under the lease was to provide the building and fully furnished contents. "The value of facility and furnishings along with the value of services to be provided to Jack and Jill at no charge, would have been over $25,000 the first year. This does not include the value of considerable time the staff has spent on this issue."

Hefton said the city is still open to another non-profit's coming in to operate the center, and will not "hold (Jack and Jill) over a barrel" on the lease terms. Other possibilities might include offering the center to for-profit child care businesses, but that would require a formal bid process. He said he already has gotten some inquiries.

But if neither for profit nor non-profit options worked, Hefton said, the city might have to look at other city-related uses for the building. "I wish it would have worked out. This is a disappointment. ... How do you walk away from a free building, furnishings and utilities worth about $25,000."

At least 10 of the students already have moved to Key Memorial Methodist Church's daycare center. And some of the teachers have already left the city's center. "The winding down is happening through attrition as well, but whatever exists there, at least with the city of Sherman, will be wrapped up Dec. 31," said Hefton.

Sherman Mayor Bill Magers said he, too, was disappointed. "I thought we had a solution and we're still looking for alternatives." He said he thought there might have been some management challenges to operating day care centers in two cities that weren't evident initially to Jack and Jill.

"But I'm optimistic," Magers said. "We just really heard about it today and this is the Thanksgiving weekend, so maybe another non-profit will come through next week."

Magers and his wife Angela own a private school and he could not participate in the discussions, or vote to end the city-run Sherman Daycare Center.

"I support the city staff in their efforts 100 percent and even though I was unable to participate in the debate and vote, I support the city council in their decision to eliminate taxpayer-subsidized day care 100 percent," Magers said. "Both the actions of the council and the staff are commendable." 


Texoma comments ...

8 comment found!

: 11/28/2008
i work for jack and jill and kay dont have what it take to run two daycare.that why they out

11-27-08

: 11/26/2008
It sounds like there are leadership problems at the city hall. The voters should remember this during the next election.


: 11/26/2008
Jack, If you think the city staff dropped the ball - point it out. To me Mr. Hefton's explanation seems pretty well-reasoned. They gave J&J a tour, cleared trees away, offered to pay the utilities for 3-6 months and gave them a no-cost lease. They then gave all information not protected by privacy laws. On top of that they gave them a no-cost lease to use the building and its contents. What else would you have them do? Jack & Jill realized that unless the city subsidizes low-cost daycare – that there are a ton of headaches to break even and there is zero money to make. That is why the city got out of the daycare business. Your comments read that you are just a malcontent who wants the city to subsidize free day care.

George

: 11/26/2008
The last post about Jack & Jill "walking away" from a "perfect deal" is pure bunk! Why would they have agreed to it in the first place if they didn't want to do it? They are already in the business so why wouldn't they take advanatge of this opportunity? The city of Sherman dropped the ball on this one folks - sorry! This is our typical local government in "action"!

Jack

: 11/26/2008
How can Jack and Jill just walk away from what seems like a perfect deal? The reasons Jack and Jill give are very weak and it sounds like they were looking for any reason to back out of the deal.


: 11/26/2008
I certainly don't know what really happened here, but for Jack & Jill to just pull out of a freebie at the last minute sounds a little funny to me. For someone like them to turn down these type of free accomodations, someone must have dropped the ball. Regardless of who's fault this is, it is just another example of laziness on someone's part and their inability to follow through with something that would have benefited the entire community! We have turned into a society of lazy whiners who believe that we deserve everything and nothing is our fault! You can see it in the kids nowadays, their attitudes, and the way that they act!

Parent of Four

: 11/26/2008
Sounds like Bullard and Luper were looking for something else out of this "free" deal from the city--it is their losss!

Grayson County Citizen

: 11/25/2008
The city is not telling the truth on giving them the information they needed. They waited till the middle of nov. to give any kind of budget info and that was not enough time to get things set up to get teachers hired. The city is wrong on how they handled this.


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