(Original poster responds...)

All of the advice and insightful suggestions have been tremendously helpful and encouraging.

We have started a Behavior "token" system.

The children have been very responsive and teachers are smiling, again.

Here's how it works:

Upon arrival, each child is given 3 tokens ~ one green, one yellow and one red. They are reminded of approriate behavior at the beginning of each session by saying a pledge which was written specifically to remind them to “follow directions, be respectful and listen”. Each child is given ONE reminder to follow rules. If they continue to misbehave, the green token is collected. If they still have a problem, the yellow token is taken and they are removed from class. The child is then counseled and asked to complete a behavior-form as to why their behavior was inappropriate. This gives the child time to reflect on their behavior and how their action was inappropriate. The parent is shown and asked to sign the form and it is kept on-record.

At the end of the teaching session, children who have all three tokens receives a surprise from a grab-bag. [piece of candy] All the leaders are very pleased with the responsiveness of the kids! Appriopriate behavior of showing respect for teachers and other classmates has made for a much happier class atmosphere. We can do so many more fun things when everyone is working together! Leaders applaude the children who are making this happen!

Again, I truly appreciate all the helpful responses.