Explanation
BACKGROUND: This legislation authorizes the Director of the Office of Education and the Director of the Department of Development to each modify an existing Operations Agreement and License Agreement with Columbus Early Learning Centers (CELC) in order for them to serve as the operator of the Hilltop Early Learning Center and Licensee of the city’s building located at 45 Clarendon Avenue, Columbus, Ohio.
The City passed Ordinance 0441-2022, which authorized the Department of Finance and Management to enter into contracts and a license agreement with CELC to serve as the operator and licensee of the Hilltop Early Learning Center and established a Hilltop Early Learning Center special revenue fund.
Ordinance 1683-2024 modified that ordinance by authorizing the Department of Finance and Management to execute an appendix to the Operations Agreement on behalf of the Office of Education to allow short-term pilot program provision of early learning activities to infants and toddlers.
With recent changes to Columbus City Code and an upcoming expiration of the existing agreements, modification to the Operations Agreement and an amendment of the License Agreement are necessary to allow the work of CELC to continue. Currently each agreement is held by the Department of Finance and Management. As a result of these modifications the Operations Agreement will be held and managed by the Office of Education while the License Agreement will be held and managed by the Department of Development.
The term of the modified Operations Agreement shall be from September 1, 2025, through August 31, 2026, with an option to renew the contract for up to two (2) additional one-year terms running from September 1, 2026, through August 31, 2027, and September 1, 2027, through August 31, 2028. The maximum amount to be paid under any purchase order associated with this contract shall not exceed $2,844,365.28 per school year unless additional funds are appropriated and authorized by the city.
The amount of additional funds needed for the modification is $2,844,365.28 per year, for each year of the three-year agreement, or $8,533,095.84 in total. The services included in the modified agreement are a continuation of the same services provided during the 2024-2025 school year. It was not in the best interest of the City to have the requirements in the modified contract requirements awarded through other procurement processes as CELC successfully provided the same services to children at the Hilltop Center during the previous school year. The costs of the services provided by CELC in the modified agreement were determined by analyzing the costs of providing high-quality early education services.
In addition to modifying the Operations Agreement, CELC is required to enter into a separate License Agreement with the City of Columbus for the occupancy and use of the Hilltop Early Learning Center located at 45 Clarendon Avenue, Columbus, Ohio 43223. The existing License Agreement, which runs through August 31, 2028 must be modified to remove the rent requirement as the rent will now be done through internal billing instead of a pass-through payment.
Additionally, this legislation authorizes the Director of Office of Education to pay rent associated with the license agreement for space at 45 Clarendon Avenue to the Department of Development, Real Estate and Land Redevelopment Division for the purpose of building maintenance and capital improvements; and
FISCAL IMPACT: $2,990,801.28 is budgeted and available in the 2025 General Fund budget in support of the Operations Agreement.
EMERGENCY JUSTIFICATION: Emergency action is requested in order to meet the August 31, 2025 expiration date of the current Operating Agreement and ensure that programming can continue uninterrupted.
Title
To authorize the Director of the Office of Education and the Director of the Department of Development to each modify an existing Operations Agreement and License Agreement with Columbus Early Learning Centers to serve as the operator and licensee of the Hilltop Early Learning Center; to authorize the Director of the Office of Education to pay rent annually to the Department of Development for the city building located at 45 Clarendon Avenue; to authorize the expenditure of $2,990,801.28 from the Office of Education; and to declare an emergency. ($2,990,801.28)
Body
WHEREAS, The City previously passed Ordinance 0441-2022, which authorized the Department of Finance and Management to enter into a contract and license agreement with Columbus Early Learning Centers (i.e. CELC) to serve as the operator and licensee of the Hilltop Early Learning Center and established a Hilltop Early Learning Center special revenue fund; and
WHEREAS, Ordinance 1683-2024 modified that ordinance by authorizing the Department of Finance and Management to execute an appendix to the Operations Agreement on behalf of the Office of Education to allow a short-term pilot program provision of early learning activities to infants and toddlers; and
WHEREAS, Ordinance 1687-2025 transferred the Office of Real Estate and Management from the Department of Finance and Management to the Department of Development; and
WHEREAS, this legislation authorizes the Director of the Office of Education and the Director of the Department of Development to modify an existing Operations Agreement and License Agreement with CELC in order for them to serve as the operator of the Hilltop Early Learning Center and Licensee of the city’s building located at 45 Clarendon Avenue, Columbus, Ohio; and
WHEREAS, this legislation authorizes the Director of Office of Education to pay rent in an annual sum of One hundred forty-six thousand, four hundred and thirty-six dollars and 00/100 ($146, 436.00) to the Hilltop Early Learning Center special revenue fund held by the Department of Development for the purpose of building maintenance and capital improvements; and
WHEREAS, an emergency exists in the usual daily operation of the Mayor's Office of Education in that it is immediately necessary to authorize the Director of the Department of Education to modify an existing Operations Agreement with Columbus Early Learning Centers to serve as the operator of the Hilltop Early Learning Center and the Director of the Department of Development to amend an existing License Agreement with Columbus Early Learning Centers for the building located at 45 Clarendon Avenue so that the educational programs can continue without delay as the expiration date of the current Operations Agreement is August 31, 2025, all for the immediate preservation of the public health, peace, property, safety, and welfare; and NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Directors of the Office of Education and Department of Development be, and hereby are, authorized to execute and acknowledge any document(s), as approved by the City Attorney, necessary to modify an existing Operations Agreement and License Agreement with Columbus Early Learning Centers (i.e. CELC) allowing CELC to serve as the operator and licensee of the Hilltop Early Learning Center located at 45 Clarendon Avenue in order to continue to provide high quality early education programming to Hilltop children.
SECTION 2. That for the purpose stated in Section 1, the Office of Education’s expenditure of $2,990,801.28, is hereby authorized within the general fund per the accounting codes in the attachment to this ordinance.
SECTION 3. That the Office of Education is authorized to pay One hundred forty-six thousand, four hundred and thirty-six dollars and 00/100 ($146,436.00) annually to the Department of Development in the Hilltop Early Learning Center special revenue fund for the purpose of building maintenance and capital improvements for the city’s building located at 45 Clarendon Avenue per the accounting codes in the attachment to this ordinance.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or 10 days after passage if the Mayor neither approves nor vetoes this ordinance.