SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a contract, including a lease agreement, with Bright Horizons Family Solutions, LLC for the operation of the Childcare and Learning Center for one base year and four one-year options for a total contract amount of $230,000.
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FISCAL IMPACT:
Funding for this action is in the proposed FY2025 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☐ 2. Community
☒ 3. Workforce ☒ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☐ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☒ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☒ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: CapMetro provides support for the Childcare Center to support CapMetro families and the community that need access to quality childcare. In addition, the proposed contract provides a fiscally responsible solution to continued operation of the Childcare Center through a lease approach and substantially reduced financial contributions from CapMetro.
BUSINESS CASE: Maintaining the Center allows Capital Metro to fill a childcare void in the community while also benefiting CapMetro employees who are able to utilize the Center. The proposed contract award is based on Bright Horizons’ proposal to provide high quality education, maintain National Association for Young Children accreditation and to operate the Center under a lease agreement with declining financial contributions from CapMetro during the term of the contract and lease agreement. Utilization of the space that is the covered under the proposed lease makes business sense because the space is already equipped as a childcare and learning center. This space is not currently needed for other CapMetro uses and the conversion of the space for another purpose is costly. In addition, the lease approach to the continued operation of the childcare and learning center provides priority access to CapMetro and service provider employees whose childcare needs can be served by the center.
COMMITTEE RECOMMENDATION: This item will be presented to the full board on October 28th 2024.
EXECUTIVE SUMMARY: CapMetro opened the Childcare and Learning Center in 2006 as a benefit to employees and as a mechanism to attract and retain employees. Over the past several years, changes to the CapMetro workforce such as additional work locations and increased teleworking have resulted in reduced utilization by employee families. In 2012, CapMetro opened the Center to the community to maintain high enrollment and reduce the subsidy required to continue operation of the Center. The Center is licensed for 65 children ages infant to five years old. Typical Center enrollment is now approximately 20 percent CapMetro families and 80 percent community families. Bright Horizons Family Solutions has operated the Center since its inception. With the declining enrollment of CapMetro families, staff committed to the board to seek a more financially sustainable solution to the continued operation of the Childcare Center and to seeking additional solutions to support the childcare needs of employees whose needs are not served by the Center located at 624 Pleasant Valley Road.
The recommended contract with Bright Horizons for a total of five year accomplishes the goal of reducing the CapMetro contribution and shifting the responsibility for Center operations completely to the contractor, while still benefitting CapMetro employees. Bright Horizons will offer priority enrollment for CapMetro and service provider families at the CapMetro Center and at the other two Bright Horizons Childcare Centers in the Austin area. This will provide additional high quality childcare solutions for families in southwest and north Austin. The CapMetro contribution during the proposed contract term is a fixed contribution as follows: Contract Year 1: $125,000; Contract Year 2: $75,000; Contract Year3: $30,000; Contract Years 4 and 5: No CapMetro contribution.
The terms of the proposed lease agreement include: Bright Horizons (“Tenant”) shall use the premises for the sole purpose of operating a childcare and learning and shall maintain Texas Rising Star accreditation for the Center for the period of the Lease. Tenant shall provide child development activities to children ages six (6) weeks to five (5) years enrolled in the Center. Tenant shall operate the Center Monday through Friday for 12 hours, except for Landlord holidays. The Center shall be designed to serve sixty-five (65) FTE enrollees unless expanded by agreement of the parties. Classroom, kitchen, and playground equipment (“Equipment”) will be provided by CapMetro for utilization during the term of the lease. CapMetro will be responsible for all repair and maintenance of the facility, playground equipment, and classroom and office furniture. CapMetro will replace equipment and furniture as needed to maintain the safety, licensing, and accreditation of the Center. Bright Horizons will provide priority enrollment to CapMetro and service provider families over community families.
DBE/SBE PARTICIPATION: A 0% SBE was placed on this project since there were no subcontract opportunities.
PROCUREMENT: On August 22, 2024, a Request for Proposal was issued and formally advertised for the licensing and full operation of CapMetro’s Childcare Facility. By the closing date of September 16, 2024, two (2) proposals were received.
The evaluation team used the following factors in their assessment of both proposals: 1) The offeror’s demonstrated qualifications of the offeror’s proposed staff to be assigned to CapMetro’s Childcare Center operations to ensure high-quality childcare and learning services; 2) The offeror’s demonstrated commitment to an operating and financial approach that meets the requirement for a high-quality childcare program taking into the account CapMetro’s limited financial support to the Childcare Center’s operational cost; 3) The offeror’s demonstrated understanding of how parent fees and teacher compensation will need to be balanced to create a high-quality and sustainable program; 4) The offeror’s demonstrated past performance providing high-quality childcare and learning services; and 5) The extent to which the offeror’s mission and related organizational values for serving the community are aligned with CapMetro’s mission and values.
The proposal from Bright Horizons Children’s Centers, LLC is determined to be the best value to the Authority, price and other factors considered. The contract is a Firm Fixed Price One-Year Base Period Contract with four (4) One-Year Option Periods. The term for the Base Period will be one (1) year from issuance of the Notice to Proceed at a not to exceed contribution amount of $125,000.00. Option Period 1 (Contract Year 2) will have a not to exceed contribution amount of $75,000.00, Option Period 2 (Contract Year 3) will have a not to exceed contribution amount of $30,000.00, and Option Periods 3 and 4 (Contract Years 4 and 5) will have no contribution amount.
RESPONSIBLE DEPARTMENT: People and Culture
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1310
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to outsource the operation of the CapMetro Childcare and Learning Center to a third party under a lease agreement model that is financially sustainable.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute a contract and lease agreement with Bright Horizons Family Solutions, LLC for the operation of the CapMetro Childcare and Learning Center for one base year and four one-year options for a total contract amount of $230,000.
____________________ Date: ____________________
Secretary of the Board
Becki Ross