Metro - File #: 2016-0743

• File #: 2016-0743
• Type: Project
• Status: Passed
• File created: 9/9/2016
• In control: Executive Management Committee
• On agenda: 10/20/2016
• Final action: 10/27/2016
• Title: AUTHORIZE the Chief Executive Officer (CEO) to execute two five-year lease agreements ("Lease Agreements"), including an additional five (5) year option, with Peggy Nairn, dba Penny and Peggy Nairn 24-Hour Child Care, Inc., ("Nairn") to develop, finance, and operate two childcare facilities in Metro-owned buildings located in Chatsworth and Sylmar, at a first year annual lease amount of sixty thousand dollars ($60,000) and forty-eight thousand dollars ($48,000), respectively, which are subject to an annual increase the second year to seventy-two thousand dollars ($72,000) and sixty thousand dollars ($60,000) respectively and annual adjustments based on Consumer Price Index (CPI) thereafter.
• Sponsors: Planning and Programming Committee
• Indexes: Agreements, Budgeting, Chatsworth, Children, City of Los Angeles, Infants, Las Virgenes/Malibu subregion, Maintenance, Metrolink, Project, Property Agreement, Request For Proposal, San Fernando Valley Service Sector, Sylmar

Date	Action By	Action	Result
10/27/2016	Board of Directors - Regular Board Meeting
10/20/2016	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT & AUDIT COMMITTEE
OCTOBER 20, 2016

Subject/Action
SUBJECT: LEASE OF PROPERTY FOR CHILDCARE CENTER
ACTION: CONSIDER APPROVING TWO LEASE AGREEMENTS TO OPERATE CHILDCARE CENTERS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer (CEO) to execute two five-year lease agreements ("Lease Agreements"), including an additional five (5) year option, with Peggy Nairn, dba Penny and Peggy Nairn 24-Hour Child Care, Inc., ("Nairn") to develop, finance, and operate two childcare facilities in Metro-owned buildings located in Chatsworth and Sylmar, at a first year annual lease amount of sixty thousand dollars ($60,000) and forty-eight thousand dollars ($48,000), respectively, which are subject to an annual increase the second year to seventy-two thousand dollars ($72,000) and sixty thousand dollars ($60,000) respectively and annual adjustments based on Consumer Price Index (CPI) thereafter.

Issue
ISSUE

Metro staff released a Request for Proposals (RFP) for licensed/bonded operators to develop, finance, and operate childcare facilities in two (2) Metro-owned buildings. Nairn, the recommended vendor, was the firm judged to provide the best value for Metro as well as the most relevant experience.

...Discussion
DISCUSSION

The Chatsworth childcare facility is located at the Chatsworth Metrolink station. The facility consists of 5,450 square feet of indoor space equipped with four (4) classrooms, shared child restrooms, staff lounge area, lobby for guests, office space, and two (2) adult restrooms. There is also a large outdoor area consisting of 7,795 square feet, utilized for a playground and other outdoor activities.

The Sylmar childcare facility is located at the Sylmar/San Fernando Metrolink station. The facility consists of 5,830 square feet of indoor space and 4,000 square feet of play yard area. The facility's indoor area is equipped with four (4) classrooms, child restrooms, staff lounge area, lobby for gu...