With three little kids I'd highly avoid staying in Patong. With that in mind, we stayed last month in Surin at the Courtyard at Surin Beach and loved it. Great family atmosphere and plenty to do. Big pool, with a smaller kiddie pool, two water slides and just a nice, relaxed atmosphere. Fridge in every room. The breakfast is perhaps one of the best we had in Thailand. 2 for 1 happy hour. It's not right on the beach, but right across the street from it. Surin beach is very nice and clean (unlike Patong) and lots of places there to eat, relax, shop or even get a massage. There are a few things within walking distance in town (a couple of decent restaurants, a family mart and a 7-11, shops, etc...). However, if you're looking for a more vibrant atmosphere, it'll definitely require a taxi ride but not the worst thing.