The Virginia Department of Transportation is shelling out $77,000 a year for a day care center in one of its buildings, even though just three of the center’s 45 children belong to VDOT employees. VDOT in late 2007 agreed to provide the Virginia Commonwealth University health system with 5,600 square feet of space and an outdoor play area for the child care facility, as well as equipment and toys, an agreement state auditors now want VDOT to renegotiate. “We initially signed the [agreement] because the agency wanted to provide quality care services to its employees and employees of other state agencies,” said VDOT spokesman Joe Vagi. “We believe that offering on-site child care services to VDOT employees helped recruit and retain employees.”
But a state investigation revealed that few VDOT employees take advantage of the center. The parents of the vast majority of the children enrolled in the center work elsewhere, including VCU, VCU health system, and other state agencies.
Even though VDOT is footing the bill and intended the facility as a perk for its employees, there are three children of VDOT employees who are now on a waiting list. Also, the center provides no discounts for VDOT families on the average monthly cost of $745.
Under the agreement, VCU Health system provides all the labor and materials to operate the facility, and collects all revenues generated from fees from parents. But VDOT has the responsibility of maintaining the facility.
The investigation pegged the total cost to VDOT since 2007 at about $270,000. The department has also spent almost $40,000 since 2007 for improvements, repairs, and equipment replacement.
The facility is located in the basement of the former Richmond Memorial Hospital building, which VDOT owns.
The Division of State Internal Audit recommended that the department reconsider the cost-benefit ratio of providing the space at no charge, and weigh the liability risks and benefits of on-site day care, since so few VDOT employees take advantage of it.
If the department continues the arrangement, the agreement should be renegotiated so VDOT either receives a share of the revenue or at least recovers its costs, according to the investigation.
VDOT is reviewing the situation and will make a decision when the review is complete, Vagi said.
