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HomeMy WebLinkAboutItem 22 - Third Amendment to the Agreement with Aramark Correctional Services, LLC Police Department www.santa-ana.org/police Item # 22 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 20, 2023 TOPIC: Third Amendment to the Agreement with Aramark Correctional Services, LLC AGENDA TITLE Approve Third Amendment to Agreement with Aramark Correctional Services, LLC for an Additional Amount of $1,624,971 to Provide Inmate Meals and Commissary Management (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute the third amendment to the agreement with Aramark Correctional Services, LLC, to provide inmate meals and commissary management for the period of July 1, 2023 through June 30, 2024 in the additional amount of $1,624,971, for a total aggregate amount not to exceed $6,103,688, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION On October 20, 2020, after a competitive Request for Proposals process, the City Council approved a three-year agreement with Aramark Correctional Services, LLC (“Aramark”) to provide inmate food service and commissary management at the Santa Ana Jail. Aramark has been the City’s provider of inmate food services since 1997 and continues to perform in a professional and competent manner while remaining the most fiscally responsible choice for these services. All meals are prepared based on the State of California Title 15 nutritional requirements and all Orange County Health Department health and safety requirements. California's Board of State and Community Corrections (BSCC) also requires agencies to provide food services for all incarcerated individuals held within their custody. The original term of the agreement covered the three-year period of October 20, 2020, through June 30, 2023, with two one-year extension options. The Department is electing to exercise the first one-year option to extend the agreement from July 1, 2023, through June 30, 2024. This agreement provides a negotiated 11.63 percent increase to the per- meal price reflective of continuing inflation in wholesale food product costs. This increase has been negotiated to incorporate any 2023 Consumer Price Index adjustment that would have otherwise been requested. Therefore, staff recommends approving a per-meal price increase from $2.92 to $3.26 for average daily populations above 400. Third Amendment to the Agreement with Aramark Correctional Services, LLC June 20, 2023 Page 2 3 5 3 5 The total four-year agreement not-to-exceed amount will increase from $4,478,717.31 to $6,103,688.31. The agreement may be terminated without cause by either party upon 120 days’ written notice. FISCAL IMPACT Funding is included in the proposed FY 2023-24 budget for City Council consideration as follows: Fiscal Year Accounting Unit – Account No.Fund Description Accounting Unit – Account No. Description Amount FY 23-24 01114475-62300 General Fund Jail Operations, Contract Services- Professional $1,576,971 FY 23-24 02314475-62300 Inmate Welfare Fund Inmate Welfare Fund, Contract Services- Professional $ 48,000 $1,624,971 The amounts above are estimated projections and are subject to change. EXHIBIT(S) 1. Third Amendment with Aramark Submitted By: David Valentin, Police Chief Approved By: Kristine Ridge, City Manager DocuSign Envelope ID: C543F6DF-279A-44A2-808A-E4CECF4A4B71 THIRD AMENDMENT TO AGREEMENT WITH ARAMARK FOR INMATE COMMISSARY AND FOOD SERVICES THIS THIRD AMENDMENT to the above-referenced agreement is entered ii'ito on this 20'h day of June 2023, by and between ARAMARK Correctional Services, LLC, a Delaware Limited Liability Coinpany ("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. Tlie parties entered into an Agreement No. A-2020-204 dated October 20, 2020 ("Agreement"), by which ARAMARK agreed to provide inmate cominissary and food services at tlie Santa Ana Detention Facility. The Agreement runs tlirough June 30, 2023 and is current and in effect. B. On December 7, 2021, the paities amended the Agreement to include additional funding to address an ii'icrease in tlie Consun'ier Price Index (CPI) and increase the overall contract not-to- exceed amount. C. On Decei'nber 20, 2022, the parties fuitlier 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. D. Tlie parties now seek to fuitlier ainend the Agreement to extend tlie term of tlie agreement for one year and include additional funding to address market conditions as negotiated upon by tlie Parties, and increase the overall coi'npensation to pay for food services during the extension. The Parties therefore agree: 1. Section 2, Compensation - A. Food Service - subsection i, is amended to increase the overall compensation by $1,624,971 including $40,000 in contingency. Tlie total not to exceed amount of tlie Agreemeiit is$6,103,688.31. 2. Section 2, Compensation - A. Food Service - subsections iii and iv, tlie parties agree to tl'ie following per meal rates: City of Santa Ana, California Effective July 1, 2023 until June 30, 2024 Average Daily Population Price 1 99 $7.75 100 199 $6.45 200 299 $5.14 Page l of 2 Exhibit 1 DocuSign Envelope ID: C543F6DF-279A-44A2-808A-E4CECF4A4B71 300 399 $3.44 400 Above $3.26 3. Section 3, Term, subsection a, Tlie term of tlie agreement is extended through June 30, 2024. 4. Except as inodified by this Tl'iird Ainendment, all otlier terins and conditions of the Agreement, as amei'ided, sliall remain in full force and effect. IN WITNESS WHEREOF, the paities liereto liave executed this Tliird Amendment to tlie Agreement on tl'ie date and year first written above. ATTEST CITY OF SANTA ANA JENNIFER HALL City Clerk KRISTINE RIDGE City Manager APPROVED AS TO FORM Senior Assistant City Attorney By: V'iecVe PYreasrisldneSnt('. Finance Title: RECOMMENDED FOR APPROVAL DAVID VALENTIN Cliief of Police Page 2 of 2