Planning, Program Development and Real Estate Committee  

Item V – A

March 12, 2015

               

Approval of Change to Policy Regarding Child Care Centers at Metro Facilities

Washington Metropolitan Area Transit Authority

Board Action/Information Summary

TITLE:

Child care centers at Metrorail stations

PRESENTATION SUMMARY:

Request Board approval for continuing the operation of a child care center at the Morgan Boulevard Station and to supersede Resolution 91-06.

PURPOSE:

Request Board Approval to supersede Board Resolution #91-06 and authorize staff to solicit proposals, and enter into agreements under which child care centers at Metro facilities would be operated by entities other than WMATA.

DESCRIPTION:

WMATA owns a child care facility at Morgan Boulevard Metro station. Metro entered into a lease with Prince George’s County for the facility in 2007, who in-turn entered into sublease with a child care center operator. In 2014, Prince George’s County elected not to renew its lease, thus turning over management and operation of the facility to WMATA.

In order for staff to assume responsibility for the solicitation, leasing to outside operator, and property management of the child care center, Board Resolution #91-06 must be superseded.

Key Highlights:

The original 1991 Board resolution authorizating the child care center stipulated that the operation of the child care centers be under the auspices the applicable local government and that Metro shall be relieved of any and all financial involvement.Prince George's County has notified Metro that it does not wish to renew its lease with Metro for the child care center at Morgan Boulevard.However, the child care center continues to provide a valued amenity for the community, by enabling a convenient means of handling child care as part of commuting via the Morgan Boulevard Metrorail Station.To enable Metro to continue to provide this amenity by assuming responsibility for the center, the 1991 Board Resolution must be amended to allow Metro to re-solicit, lease, manage, collect revenues directly from the child care center operator.While there are a number of alternative child care facilities in proximity to the Morgan Boulevard Station, it is Metro's intention to prevent any near-term interruption in child care service for the families who currently use the

Action Information MEAD Number:201349

Resolution:Yes No

Morgan Boulevard facility.However, Metro anticipates advancing a new joint development project at Morgan Boulevard in the near future, which could potentially accomodate a day care use and thus allow Metro no longer directly own/operate a day care center.

Background and History:

Metro was directed by Congress to prepare a plan of action for developing at least two child care centers in or near Metro facilities. As a result of a feasibility study prepared by staff, it was determined that benefits may accrue to the public and Metro as a result ofsuch child care centers. On January 31, 1991, the Metro Board of Directors adopted Board Resolution #91-06 authorizing staff to solicit proposals from the eight jurisdictions that comprise WMATA for possible child care centers to be located at Metro facilities. Board Resolution #91-06 further stipulated that the operation of any such child care center is to be under the auspices of one of the eight local governments that comprise WMATA and that Metro shall be relieved of any and all financial involvement.

Metro entered into a lease agreement dated October 29, 2007 with Prince George’s County, Maryland for a child care center at the Morgan Boulevard Metrorail station. By letter dated April 22, 2014, Prince George’s County stated its intention not to renew the lease.

In order for staff to competitively solicit proposals for the operation of a child care center at the Morgan Boulevard Metrorail station, Board Resolution #91-06 must be superseded to rescind the language in the Resolution that stipulates "that the operation of any such child care center is to be under the auspices of one of the eight local governments that comprise WMATA, and WMATA shall be relieved of any and all financial involvement”.

Discussion:

Metro's ability to lease this facility directly will allow it to remain a public benefit to the community and will bring in a new source of revenue for Metro.

FUNDING IMPACT:

The lease for the facility would generate revenue for Metro.Project Manager: Cynthia Jachles

ProjectDepartment/Office: LAND/CFO

TIMELINE:

RECOMMENDATION:

Approval to continue the operation of a child care center at the Morgan Boulevard station and to supersede Resolution 91-06.

Previous Actions Board Resolution #91-06

Anticipated actions afterpresentation

Advertise Request for Proposals to child care operators licensed by the State of Maryland to seek proposals from interested companies to operate the Morgan Boulevard child care centerfacility on an interim basis.

Seek to advance a joint development project at the Morgan Boulevard station which could accomodate a day care use as part of a mixed-use project.

Approval to Change Board Policy for the Operation of Child Care Centers at Metro Facilities

Planning, Program Development, and Real Estate Committee

March 12, 2015

Washington Metropolitan Area Transit Authority

Purpose

Request Board approval to continue operation of a child care center at the Morgan Boulevard Station

Background

January 1991 WMATA directed by Congress to prepare plan for developing at least two child care centers in/near WMATA transit facilities

January 1991 WMATA Board authorized staff to solicit proposals from local jurisdictions for child care centers; Shady Grove and Morgan Boulevard identified as candidate sites

May 2001 Construction begins on Blue Line to Largo, including child care center

May 2006 County selects child care center operator

November 2007 Metro enters into 5‐year lease with County

July 2008 Child care center opens

July 2014 County notifies Metro of its intent to not renew its lease for the center

Fall 2014 Metro begins planning to assume responsibility for leasing and management

Background

• Original 1991 Board resolution stipulates:– The operation of the child care centers “be under the auspices the

applicable local government”– Metro shall be relieved of any and all financial involvement

• Resolution must be superseded to allow Metro to take over the center on an interim basis, including:– Assuming leasing, management, revenue collection responsibility– Soliciting, negotiating, and executing a direct lease with an operator

• This new policy will allow Metro to prevent any interruption of child care service at the Morgan Boulevard station

• Metro anticipates advancing development at Morgan Blvd. in the near future, which could accommodate this use

Board Approval to continue operation of a child care centerat the Morgan Boulevard Metrorail station and to supersede the previous Boardresolution 91-06

Recommendation

SUBJECT: APPROVAL TO CONTINUE OPERATION OF A CHILD CARE CENTER AT THE MORGAN BOULEVARD METRORAIL STATION AND TO SUPERSEDE RESOLUTION 91-06

RESOLUTION OF THE

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WHEREAS, The Board, in Resolution 91-06 authorize~11staff f~ll~~hcit1 ' pro~O$~ls from local governments to operate at least two child care ce~~~p~ lh .. or n~~'Ullfi ashin~ton Metropolitan Area Transit Authority ("WMATA'') facilities; and l11j!I 1lllljjll 11111111

1111111111111111111111111111111111 1 I I WHEREAS, The Board directed that any 1seJ~\1'1ll~mi1jd care cent~~ be operated under the ~uspices of a local government, and t~~t WMAid~llli~e ·r~11i1¥i~~ of any and all financial involvement; and 11111!!

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lfllllllllll I lt WHEREAS, The Board further .~ifctJllllba~ll ,-lfljl(~uld, ~ prove the initial selection of sites and the final agreements for eacl1 1!~fil th~jj~roposm~Ht!iM1la care centers; and

11tUllllllllll11lf1 • 1111111~ WHEREAS, WMATA coijstructe~lllMi ctii ~ll1~are facility at the Morgan Boulevard Metrorail station and entered int'.

1 a lease ~~~Wieme~~11with Prince George's County, Mar)iland for the

operation of a child car1 \f nter at t~~ (acilify; and

tt 1llllll lll !~llt111 1111111h ,,, WHEREAS, "MAT~ enterl!!~l lllli~to, 1 1~ land lease agreement with Montgomery County, Maryland fcliA~~ . co ~ru~ion ~~~' operation of a child care center at the facility at the

Sha~~1~Aiijf~ llM1!~ iii 1'.l~t1mj1oind WH~~~. 'b majJ~~11,<if Resolution 91-06 is no longer relevant now that the sites have been s~~m~E!Cf, agreerri~'hts are in place, the facilities have been constructed, and the child

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WHEREAS, Pri rnce George's County has stated its intention not to renew its lease; and

WHEREAS, In order to avoid an unwanted interruption of services at the Morgan Boulevard child care center, a valued community amenity, WMATA must solicit proposals from entities other than local governments, allow that entity to operate the center, and allow WMATA to be financially involved to the extent required to collect rent and perform other landlord obligations-all of which is not permitted by Resolution 91-06; now, therefore be it

RESOLVED, The Board authorizes staff to solicit proposals to operate a child care center at the Morgan Boulevard Metrorail station, or to incorporate the child care center into a joint development project; and be it further

RESOLVED, The Board authorizes staff to enter into an agreement under which the child care center located at the Morgan Boulevard Metrorail station is operated by an entity other than WMATA, which may include WMATA collecting rent and performing landlord obligations and which shall require indemnification of WMATA and an insurance policy in an amount approved by the Office of Risk Management; and be it furt1~~1illllllllllllll

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1111111 RESOLVED, That the Shady Grove child care center shall continue1i~$.11 19e operate~~as is but in the event that Montgomery County determines it does not i~t~,nd t~lltqfiinew its I' ~se with WMATA, staff is authorized to solicit proposals to op~p~te a chi le!llllffiare c ~ter, or incorporate a child care center into a joint developn:ie~ I proje'.mt1 at tA1Wll\IS.p.~&y Grove Metrorail station; and to enter into an agreement under wh ~~i'lfrt@~' c~ild ~rE7 .~enter would be operated by an entity other that WMATA, whif t'1 11'\!Pla¥. inc \!J1~~11.WMA]~ collecting rent and performing landlord obligations and which sh~j/11 require i.~den'i~l~,F~~i~n of WMATA and an insurance policy in an amount approved by thellt(!Rtt;;W.~ ll~ffll~j~k ~~1~agement; and be it further ,,11111111111111111111111 :1111 ,

11r 1111111,b ••• ,,~·· 11111,, RESOLVED, That this Resolution superseq1~s Resoluti~~~~l-o~

1; and be it finally

. . i!.!llllllllUlll111 'lll11111i . 11 . RESOLVED, That this Resolutto~11sna ll t5e. ~, ff'e~•Y.I e 30 d , s after adoption.

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