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Home My WebLink About25I - AGMT - INMATE FOOD SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: 5, 2017 TITLE: AMENDMENT TO THE AGREEMENT WITH ARAMARK CORRECTIONAL SERVICES INC. FOR INMATE FOOD SERVICES AND COMMISSARY (STRATEGIC PLAN GOAL NO. 1, 3A) ILI RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 s'Reading ❑ Ordinance on 2n'Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve a three-year agreement amendment with Aramark Correctional Services, Inc. for the provision of inmate food and commissary services for the period of February 1, 2017, through January 30, 2020, in the amount of $2,945,696. This amount includes the original agreement total of $1,460,016, projected future invoices, as well as a 5% contingency, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On October 6, 2016 the Police Department issued a request for proposals, (RFP #16-128) for contracted food service and inmate commissary. On that date, the Jail's average daily population (ADP) was 323. The City Council awarded the agreement to Aramark on April 18, 2017. However, on June 12, 2017, Aramark approached the Police Department and expressed serious concerns over their ability to continue to operate with the unanticipated drop in the Jail's inmate population. The ADP at the time of the meeting was 175. This is a 46% drop in the Jail's population since the start of the Food Service RFP process. Aramark has proposed a more sustainable price per meal cost that would enable them to remain the Jail's food service provider. Under the current agreement, the per meal cost is $2.88 for an ADP of 100-199 and $2.39 for an ADP of 200-299. Aramark is requesting a per meal cost increase to $3.84 for population between 100-199 and $3.69 for population between 200-299. Aramark is not requesting a cost increase for ADP's of 300 and above. Before considering Aramark's proposed cost increase, staff met with the City Attorney's Office and Purchasing, and reviewed the RFP evaluation results. The only other vender that submitted a proposal is still 123% higher than the new proposed prices submitted by Aramark (second highest rated vendor proposed $8.224 per meal for an ADP of 200). 251-1 Agreement Amendment with Aramark December 5, 2017 Page 2 In addition, this proposed agreement amendment adds the needed spending capacity to pay for the increase in US Marshal inmates approved at the August 1, 2017 Council meeting. The original Aramark agreement covered an ADP of 122. This agreement amendment proposes to adjust to the new ADP of 340 in anticipation of the US Marshal inmate population increase. This new amended total agreement amount of $2,945,696 is $1,485,680 more than the original three- year agreement amount of $1,460,016. This increase is primarily a result of the 178% projected increase to the Jail's ADP (122 increase to 340). This additional cost was anticipated and is covered by the additional US Marshal funding allocated to the Jail Operations budget at the August 1, 2017 Council meeting. Under this agreement Aramark also provides commissary services. Commissary services enable those in custody to purchase a variety of hygiene and food items. Aramark is also available to provide food for City meetings and events. This agreement may be terminated without cause by either party upon ninety (90) days written notice. STRATEGIC PLAN ALIGNMENT Approval of this item allows for the City to meet Goal #1 - Community Safety, Objective #3 (promote fiscal accountability to ensure financial responsibility at all levels of the organization), Strategy A (continuously evaluate and assess fiscal aspect of service delivery to ensure that the Police Department provides programs and service efficiently and effectively). FISCAL IMPACT At their April 18, 2017 meeting, the City Council approved the original $1,460,016 three-year agreement with Aramark. This amendment will add $1,485,680 to the agreement, for a new not to exceed amount of $2,945,696. Expenses related to the 2016-17 fiscal year total $263,927. Funds for the remaining contract years will be available in the Police Department's Jail Operations contract services account (no. 01114475 62300) and various departmental Operating Materials & Supplies account (account 63001 for catering services), for the following fiscal years: FY 2017-18 1,022,795 FY 2018-19 1,042,251 FY 2019-20 616,723 A David Va niin c in Chief of Police Santa Ana Police Department APPROVED AS TO FUNDS AND ACCOUNTS: mom% Francisco Gutierrez Executive Director Finance & Management Services Agency Exhibit: 1. First Amendment to Agreement with Aramark 251-2 Exhibit 1 FIRST AMENDMENT TO AGREEMENT WITH ARAMARK FOR INMATE COMMISSARY AND FOOD SERVICES THIS FIRST AMENDMENT to the above -referenced agreement is entered into on November 21, 2017, 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 dated February 1, 2017 ("Agreement"), by which ARAMARK agreed to provide inmate commissary and food services at the Santa Ana Detention Facility. The Agreement was approved by the City Council on April 18, 2017. B. Although the Agreement was not approved by the Council until April 18, 2017, ARAMARK has continuously provided services to the City since February 1, 2017, based on the terms of the original Agreement. C. On June 12, 2017, the City met with Aramark to discuss the possibility the City would be transitioning the jail from a Type II Housing Facility to a Temporary Holding Facility by January 1, 2018. This change would have a significant impact to the Aramark agreement since a food service vendor would not be required for a temporary holding facility. Aramark — informed the City that they were operating at a loss due to the unexpected significant drop in the inmate population but agreed to remain in partnership with the City until the transition to a Holding Facility was completed. Aramark submitted an adjustment to the per meal cost to assist with Aramark's operating deficit. Negotiations with Aramark commenced between the parties regarding the cost per meal based upon the expected population rates during the term of the Agreement. D. The parties now seek to amend the Agreement to include additional funding to support the negotiated rates and allow continuation of food services at the Santa Ana Detention Facility, The Parties therefore agree: 1. Services for the Agreement began on February 1, 2017 and have remained uninterrupted. All costs for services rendered during the period of February 1, 2017 through June 30, 2017, were paid by City per the rates provided in the original Agreement. (Exhibit B to the original Agreement.) The parties agree that services rendered beginning on July 1, 2017, through the remainder of the term of the Agreement shall reflect the compensation amount and rates set forth in Exhibit B-1 to the First Amendment, attached herein. ARAMARK will submit a supplemental invoice for costs incurred, and any amounts paid by City, between July 1, 2017, and November 21, 2017, which shall reflect the new rates per Exhibit B-1. Any further invoices incurred during the term of this Agreement are subject to the terms set forth in this First Amendment. Page 1 of 3 251-3 3. Section 2, Compensation —A. Food Service, is amended to read as follow: a. CITY agrees to pay, and ARAMARK agrees to accept as total payment for its services for the total three year period a stun not to exceed $2,945,696, which includes a 5% contingency to be used at the CITY's sole discretion. The rates and charges are set forth in the Attached Exhibit B-1 to the First Amendment. b. Section 2.A.b. of the original Agreement is removed in its entirety. c. Section 2.A.c. of the original Agreement is removed in its entirety. d. ARAMARK shall submit to the CITY on the first day of every week, for the preceding week, an invoice for inmate meals ordered or served whichever is greater, and Fresh Favorites meals ordered by inmates. The statements will reflect the preceding week's food services detailing the exact number of meals served on a daily basis as follows: 1. Actual number of adult inmate meals 2. Meals provided through the "Fresh Favorites" program 3. Any additional food or beverage services, as required 4. Staff Caf6 sales report. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing meals ordered/served, subject to City accounting procedures. Payment shall be sent to:. ARAMARK Correctional Services, LLC. P.O. Box 406019 Atlanta, Georgia 30384-6019 4. Except as modified by this First Amendment, all other terms and conditions of the Agreement shall remain in full force and effect. [signature page to follow] Page 2 of 3 251-4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement on the date and year first written above. ATTEST MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM SONIA R. CARVALHO City orney By: TA ARA OG IAN Assistant City Attorney RECOMMENDED FOR APPROVAL DAVID VALENTIN Acting Chief of Police CITY OF SANTA ANA RAUL GODINEZ II City Manager F.11 a_t7�j01" Name: Title: Page 3 of 3 251-5 REQUEST FOR PROPOSALS (RFP) FOR CONTRACTED FOOD SERVICES COST SUMMARY Inmate Meals Expense With no Inmate labor Cost Per Cost Per Meal (ADP Meal ADP more than 400) 300-399) Cost Per Meal (ADP 200. 299) Cost Per Meal (ADP 100. 199) Cost Per Meal (ADP I. 99) Year 1(Feb 1 -lune 30) 2.260 $2.390 2.880 2.880 2.880 Year 1(July 1 -Jan 30) 2.260 $2.390 3.690 3.840 3.990 Year 2.319 $2.449 3.782 3.936 4.090 Year 2.3801 $2.5101 3.8771 4.0341 4.192 Scale above is with no Inmate labor. Costs for 300-393and_4AO+did to 251-6 Exhibit 8-1: First Amendment Aram ark Food Service Agreement