I'd term now for failure to follow agreed upon policies and be done. She sounds like a headache to deal with.

Id go with something like:

Dear Daycare Parent

This is notice of cancellation of our child care services agreement. As of February 12, 2018 child care services will no longer be available due to parent not following contract policies. Please call or e-mail to make arrangements to pick up Johnny's belongings before the end of the week.

Sincerely,

NOT your provider anymore

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