HomeMy WebLinkAboutItem 27 - Second Amendment to the Agreement with Aramark Correctional Services, LLC Police Department
www.santa-ana.org/pd
Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
December 20, 2022
TOPIC: Second Amendment to the Agreement with Aramark Correctional Services, LLC
AGENDA TITLE:
Approve Second Amendment to the Agreement with Aramark Correctional Services, LLC
(General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the second amendment to the agreement with
Aramark Correctional Services, LLC to provide inmate food service and commissary
management in an additional amount of $896,152, including a 12.40-percent Consumer
Price Index increase adjustment, for a total aggregate amount not to exceed $4,478,718
for the agreement term ending on June 30, 2023, subject to non-substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
On October 20, 2020, the City Council approved a three-year agreement with Aramark
Correctional Services, LLC (“Aramark”) after a competitive Request for Proposal process
to provide inmate food service and commissary management at the Santa Ana Jail.
Aramark Correctional Services, LLC has been the provider of inmate food services since
1997 and continues to perform these services professionally and competently. All meals
are prepared based on the State of California Title 15 nutritional requirements and all
Orange County Health Department health and safety requirements. Through this
agreement, Aramark also provides catering services for various City functions and
operates the inmate commissary program and Code-7 cafeteria located inside the Police
Department.
The agreement provides annual adjustments to the per-meal price based on the
Consumer Price Index (CPI) effective July 1 of each contract year. On December 7, 2021,
Council approved the first amendment to this agreement to include a 3.88-percent CPI
increase. Due to the unprecedented and unforeseeable current economic circumstances,
food industries have experienced substantial increases in supply costs. These conditions
have driven the prices of food products well above the CPI cap of the current agreement.
Staff calculated the relevant food product weighted CPI at 13.16 percent, and worked with
Second Amendment to the Agreement with Aramark Correctional Services, LLC
December 20, 2022
Page 2
3
1
2
8
the vendor to arrive at a reasonable and equitable final increase of 12.40 percent.
Therefore, staff recommends approving a per-meal price increase of 12.40 percent, from
$2.59 to $2.92, for average daily populations above 400. This pricing will apply to meals
billed after July 1, 2022 through the remainder of the third year of the agreement. This
12.40-percent per-meal increase will add $173,558 to the third year of the agreement.
The agreement established a not-to-exceed amount based on a projected average daily
population of 400 persons. However, the Santa Ana Jail has regularly exceeded this
number and served significantly more meals than was initially anticipated. Therefore,
factoring funds currently remaining within the agreement's terms and a revised projection
for average daily population through the remainder of Fiscal Year 2022-23, the Police
Department projects that an additional $682,594 and a $40,000 contingency is needed to
ensure the availability of funds to purchase inmate meals through June 30, 2023.
As a result, the total three-year agreement not-to-exceed amount will increase from
$3,582,566 to $4,478,718. The agreement may be terminated without cause by either
party upon 120 days’ written notice. Aramark has been accommodating, professional and
consistent in its provision of services, and staff recommends approval of the agreement
amendment.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funds for this amendment are available as follows:
Fiscal
Year
Accounting Unit
– Account No.
Fund
Description
Accounting Unit –
Account No. Description
Amount
FY 22-23 01114475-62300 General
Fund
Jail Operations, Contract
Services
$866,552
FY 22-23 02314475-62300
Inmate
Welfare
Fund
Inmate Welfare Fund,
Contract Services $ 29,600
Total $896,152
The amounts above are estimated projections and are subject to change.
EXHIBIT(S)
1. Second Amendment to Agreement
Second Amendment to the Agreement with Aramark Correctional Services, LLC
December 20, 2022
Page 3
3
1
2
8
Submitted By: David Valentin, Police Chief
Approved By: Kristine Ridge, City Manager
Page 1 of 2
SECOND AMENDMENT TO AGREEMENT WITH ARAMARK
FOR INMATE COMMISSARY AND FOOD SERVICES
THIS SECOND AMENDMENT to the above-referenced agreement is entered into on this 20th day
of December 2022, by and between ARAMARK Correctional Services, LLC, a Delaware Limited
Liability Company (“ARAMARK”), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California
(“City”).
RECITALS
A.The parties entered into an Agreement No. A-2020-204 dated October 20, 2020
(“Agreement”), by which ARAMARK agreed to provide inmate commissary and food services
at the Santa Ana Detention Facility. The Agreement runs through June 30, 2023 and is current
and in effect.
B.On December 7, 2021, the parties amended the Agreement to include additional funding
to address an increase in the Consumer Price Index (CPI) and increase the overall contract not-
to- exceed amount.
C.The parties now seek to further amend the Agreement to include additional funding pursuant
to CPI increases to allow continuation of food services at the Santa Ana Detention Jail pursuant
to Consumer Price Index (CPI) increases negotiated upon by the Parties, and to account for an
average daily population in excess of the original projections of the agreement.
The Parties therefore agree:
1.Section 2, Compensation – A. Food Service – subsection i, is amended to increase the overall
compensation by $896,151.31, comprised of $173,557.81 for the negotiated 2022 CPI
increase, $682,593.50 in inmate meal costs and $40,000 in contingency. The total not to
exceed amount of the Agreement is $4,478,717.31. Compensation shall cover services
provided by Aramark since July 1, 2022.
2.Pursuant to Section 2, Compensation – A. Food Service – subsection iii, the parties agree
to the following rate increases for the City:
City of Santa Ana, California
Effective July 1, 2022 until June 30, 2023
Average Daily Population Price
1 99 $6.9473
100 199 $5.7797
200 299 $4.6121
Page 2 of 2
300 399 $3.0802
400 Above $2.9202
3.Except as modified by this Second Amendment, all other terms and conditions of the
Agreement, as amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the
Agreement on the date and year first written above.
ATTEST CITY OF SANTA ANA
KRISTINE RIDGE
Clerk of the Council City Manager
APPROVED AS TO FORM ARAMARK
SONIA R. CARVALHO
City Attorney
By:
TAMARA BOGOSIAN
Senior Assistant City Attorney
RECOMMENDED FOR APPROVAL
DAVID VALENTIN
Chief of Police