Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Lisa Okada, Human Resources Deputy Director
Subject: Agreements with Bright Horizons
RECOMMENDATION:
title
Adopt a resolution to execute agreements with Bright Horizons Family Solutions LLC to operate the Child Care Center and provide college coaching programs through September 30, 2027, with the aggregate amounts not to exceed $550,000 and $400,000, respectively.
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BACKGROUND:
The County of San Mateo currently contracts with Bright Horizons both to operate the County-owned Child Care Center and to provide the College Coaching program for employees and their children.
The Child Care Center is operated at a County facility and is open to County employees and to the community. The Child Care Center typically operates at full capacity, which includes 12 infants, 16 toddlers, 24 two-year-olds, and 40 preschoolers. The County provides tuition assistance for qualified employees on a sliding scale based on household income. The current agreement for the Child Care Center expires on September 30, 2022.
The College Coaching program is used each year by more than 700 employees seeking both general (webinars) and personalized assistance in planning for and getting children into college. The current agreement for the College Coaching program expires on October 31, 2022.
DISCUSSION:
The Human Resources Department conducted a nationwide request for proposals (RFP) through our Benefits and Wellness consultant, Alliant Consulting, for both qualified child care center operators and providers of a college coaching program. The goal of the RFP was to subject the County’s Child Care Center operations and College Coaching program to the competitive marketplace. The County wanted to conduct its due diligence to ensure that it is receiving quality programs and services for a fair and competitive price.
Proposals were solicited from six potential operators. Alliant Consulting found that the number of operators of on-site, employer-owned child care center facilities is very limited. From the six invitations to submit proposals, the County received only three letters of interest-from Bright Horizons, PalCare and Kidango. From the three letters of interest, the County received only one actual proposal-from Bright Horizons. Of the original six invitations, three did not submit proposals because the COVID pandemic forced them to shift away from an on-site operational model and towards concierge services. A fourth company cited insufficient available staffing as part of “the great resignation.” The fifth company did not explain their declination.
The Bright Horizons proposal was very strong. They have been the County’s Child Care Center operator for the past 19 years, and the College Coaching program administrator for the past 11 years. They are familiar with our employees’ and our families’ needs, and they have worked with the County over many years to shape the programs to operate effectively and efficiently. Bright Horizons is a global public company with a market capitalization of over $5 billion and with almost 27,000 employees. They operate more than 650 child care centers nationwide, including more than 107 centers in California and more than 19 in the San Francisco Bay Area. They are familiar with the State’s licensing and safety requirements, and have consistently demonstrated compliance. Bright Horizons also serves more than 3 million individuals nationwide with their College Coaching program.
For the Child Care Center, Bright Horizons proposed to maintain current staffing levels, current capacity and current staff-child ratios. They would continue to offer tuition assistance and back-up child care programs. They would also continue to provide parent inclusion programs and parent partnership groups. Bright Horizons has also offered a $250,000 contribution to undertake various facility improvement projects at the Child Care Center that would enhance the County’s facility and ensure it remains in compliance with State requirements and accreditation standards. The County contribution to match this investment will be vetted separately through the County’s budget process. Projects will be done in coordination with the Department of Public Works and subject to public procurement procedures, if applicable.
For the College Coaching program, Bright Horizons proposed to maintain current program offerings related to college admissions, including hosting three annual webinars, an online learning portal for employees, and a help desk where employees can get individualized support with college admissions by phone and email. The contract amount for the College Coaching program reflects estimated annual expenses based on projected employee utilization and fixed training costs.
This resolution also contains the County’s standard provision allowing amendment of the County’s fiscal obligations by a maximum of $25,000 (in aggregate).
The County Attorney’s Office has reviewed and approved this resolution as to form.
PERFORMANCE MEASURE(S):
|
Measure |
2021 Actual |
2022 Projected |
|
Annual Parent Satisfaction Rating |
97% |
97% |
|
Annual County Human Resources Satisfaction Rating |
99% |
99% |
|
Percentage of College Coaching Requests Met |
85% |
100% |
FISCAL IMPACT:
There is no Net County Cost associated with this agreement. The aggregate costs for the five-year term of this contract would be $550,000 for the Child Care Center contract and $400,000 for the College Coaching contract. The Child Care Center amount is based on approximately $110,000 per year in tuition assistance for qualified employees. The source of this funding is lease income from County property currently occupied by Palcare in Burlingame. The College Coaching amount reflects estimated annual expenses based on utilization, the cost of which is offset by the Benefits Trust Fund.