0150-10516-0001TRANSMITTAL

COUNCIL FILE NO.DATETODeborah Flint, Chief Executive Officer Department of Airports FEB 2 0

COUNCIL DISTRICTFROMThe Mayor 11

Proposed Consent to Name Change for Contract Number DA-5029 with Children’s Creative Learning Centers LLC, to be KinderCare Education at

Work LLC, for Operations of a Child Care Center at Los Angeles International Airport

Transmitted for further processing, including Cptincil consideration. See the City Administrative^fficer rejx>rt, attached.

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REPORT from

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: February 6, 2017 0150-10516-0001CAO File No. Council File No. Council District: 11

To: The Mayor

From: Richard H. Llewellyn, Jr., Interim City Administrative Offioj

Reference: Communication from the Department of Airports dated January 30, 2017; referred by the Mayor for a report on January 30, 2017

Subject: PROPOSED CONSENT TO NAME CHANGE FOR CONTRACT NUMBER DA- 5029 WITH CHILDREN’S CREATIVE LEARNING CENTERS LLC, TO BE KINDERCARE EDUCATION AT WORK LLC, FOR CONTINUED OPERATIONS OF A CHILD CARE CENTER AT LOS ANGELES INTERNATION AIRPORT

RECOMMENDATIONS

That the Mayor:

Approve Consent to Name Change document for Contract Number DA-5029, with Children’s Creative Centers LLC, to change its name to KinderCare Education at Work LLC, for continued operations and management of a child care center at Los Angeles International Airport, subject to City Attorney approval as to form,

1.

2. Authorize the Chief Executive Officer to execute the proposed Consent to Name Change form, and

3. Return the request to the Department of Airports for further processing, including Council consideration.

SUMMARY

Results from a survey taken in the 1990s by persons employed at the Department of Airports (Department) highlighted a strong need for affordable, quality child care for the children of Department employees. The Department then built a $4.3 million child care facility on its Lincoln Boulevard property, north of the Los Angeles international Airport (LAX). Opened in 1998, the First Flight Child Development Center (FFCDC) is managed by the Department’s Human Relations Division and has been operated by a number of contractors over the years.

PAGECAO File No.0150-10516-0001 2

A Request for Proposals was posted in July 2015 on the City’s Business Assistance Virtual Network. As a result of the bid and selection process, on October 15, 2015 the Board of Airport Commissioners (BOAC) awarded Children’s Creative Learning Centers, Inc., now Children's Creative Centers LLC (CCLC), a five-year contract, Number DA-5029, to provide child care center operations and management at FFCDC. The contactor, CCLC is required to pay a Monthly Utility Fee to the Department and the contract allowed a maximum five percent increase in tuition to enable the operator to recover the utility costs, according to Department staff. According to staff, the Department has received approximately $87,400 in Monthly Utility Fees from FFCDC to date, since December 2015.

Department staff reports that effective October 6, 2016, a name change document was filed with the Secretary of State, in California, by CCLC. The document submitted by the contractor, CCLC, implemented a corporate name change to KinderCare Education at Work LLC. The Department was notified by CCLC that they were retiring the CCLC brand; the new name and brand would align better with the contractor’s other KinderCare operations.

Department staff furthermore reports the name change will not impact the operations and management of the FFCDC. Currently enrolled in the child care center are 105 infants, toddlers and children (most full-time, some part-time), between six weeks old to five years old. The child care services are provided Monday through Friday, from 6:00 am to 6:00 pm, and FFCDC cares for children of employees, tenants and from the community. The contractor, KinderCare Education at Work LLC, collects tuition payments (rates are pre-approved by the Department), and along with paying for utilities, the contractor also covers the cost of educational supplies, janitorial and landscaping services.

Approval of the Consent to Name Change is an administrative action and is not subject to compliance of the City’s Standard Provisions for contracts. However, when the original Contract Number DA-5029 was approved in 2015, the contractor complied with the City's applicable Standard Provisions. According to staff, CCLC is satisfactorily performing their contractual responsibilities to the Department for the operations and maintenance of FFCDC.

The BOAC approved the proposed Consent to Name Change at its meeting on February 2, 2017.

FISCAL IMPACT STATEMENT

Approval of the proposed Consent to Name Change document will have no impact on the General Fund and also no fiscal impact on the Department of Airports. Approving the request for a name change implements an administrative action.

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