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Home My WebLink About25D - AGMT - INMATE FOOD SRVSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 19, 2016 TITLE: AMENDMENT TO AGREEMENT WITH ARAMARK CORRECTIONAL SERVICES INC. FOR INMATE FOOD SERVICES (STRATEGIC PLAN NO. 1, 3A) CITY MANA ER RECOMMENDED ACTION I_RA1001714t ❑ As Recommended ❑ As Amended ❑ Ordinance on 11kResding ❑ Ordinance on 2ndReading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached one -year agreement amendment with Aramark Correctional Services, Inc. for inmate food services, for the period of February 1, 2016 through January 31, 2017, adding an additional $1,452,951 plus a 15% contingency ($217,943) to the existing agreement amount of $1,412,140 (total amendment amount of $1,670,894), for a total not to exceed agreement amount of $3,083,034, subject to non - substantive changes approved by the City Manager and City Attorney. DISCUSSION On January 17, 2012, Council approved a three -year agreement with two, one -year renewal options with Aramark Correctional Services, Inc. to provide inmate food services at the Santa Ana Jail. The food service program includes daily meals for all inmates, weekly inmate commissary service and operation of the cafeteria in the Police Administration facility. Aramark provides inmates with three meals per day, which meet the nutritional requirements mandated by the American Correctional Association and the National Commission on Correctional Health Care. In addition, Aramark runs the weekly commissary operation, which provides snack foods for inmate purchase. Aramark pays the City a commission of forty -five percent (45 %) of net sales of all products from the commissary operations. In addition, Aramark pays the City $.05 per meal for any meals sold to any outside facility. Aramark also provides catering services to various City meetings and events. The current agreement, which expires June 31, 2016, is for an amount not to exceed $1,412,140. This amendment will add an additional $1,412,140 for the period of February 1, 2016 through January 31, 2017, plus a 2.89% CPI increase ($40,811), and a 15% contingency ($217,943) for unanticipated and /or necessary expenses related to increases in the Jail's average daily population, for a total of $1,670,894 added by this amendment. The new not to exceed agreement amount will be $3,083,034. Aramark Correctional Services, Inc. has performed satisfactorily during the agreement term and staff recommends renewal of the agreement. 25D -1 Aramark Agreement Amendment January 19, 2016 Page 2 STRATEGIC PLAN ALIGNMENT Approval of this item allows 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 services efficiently and effectively.) FISCAL IMPACT Funds are available in the Police Department's Jail Operations contract services account (no. 01114475- 62300) for the following fiscal years: FY 2015 -16 $696,206 FY 2016 -17 $974,688 Total $1,670,894 Commissary revenue will be deposited in the Inmate Welfare Recovery account (no. 02314002 57403), and Jail kitchen revenue will be deposited in the General Fund Jail Kitchen Rental account (no. 01114002 57461). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Management Services Agency 25D -2 FIFTH AMENDMENT TO AGREEMENT THIS FIFTH AMENDMENT TO AGREEMENT is entered into on January 19, 2016 by and between ARAMARK Correctional Services, LLC., a Delaware limited liability company ( "Consultant") 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 that certain Agreement #A- 2012 -008, dated June 6, 2012, (hereinafter "said Agreement ") by which Consultant has provided meal service and commissary services for the Santa Ana Police Department and Detention Facility. B. The parties entered into a First Amendment to Agreement # A- 2012 -194 dated September 17, 2012, amending the scope of services to provide for healthier inmate meals and for the provision of kiosk payment for commissary services, increase compensation to pay for the new meal plan, and increase the cost of a meal to $1.98 effective September 1, 2012, C. The parties entered into a Second Amendment to Agreement #A- 2013 -033 dated February 1, 2013; increasing the cost per meal 2.6% for a total of $2.03 a meal pursuant to the Consumer Price Index (CPI). D. The parties entered into a Third Amendment to Agreement #A -2014 -024 dated January 21, 2014, increasing the cost per meal 2.1 % for a total of $2.073 a meal pursuant to CPI and by way of mutual agreement of the parties. E. The parties entered into a Fourth Amendment to Agreement #A -2015 -012 dated Janua y 20, 2015, amending the compensation from a set cost per meal to a sliding scale model and exercising the first of two one year extensions. In accordance with the terms and conditions of said Agreement, the parties agree to exercise the second of two one year extensions of the Agreement and to increase the amount of the Agreement to cover the cost of services provided during the term of the extension. In addition, the parties have agreed pursuant to the terms of the original agreement to increase the price per meal by 2.89% which is consistent with the CPI -Food Away from Home, all Urban U.S. City Average for November 2015. WHEREFORE, in consideration of the covenants contained in said Agreement, and subject to all the terms and conditions of said Agreement, except those amended in this Fifth Amendment to Agreement, the parties agree as follows: 1. Section I .A., Exhibit "A" shall be amended to reflect the following sliding scale per meal costs effective February I, 20I6 which have increased 2.89% pursuant to the terms of the original Agreement: No. of Inmates Price per Meal 255 -304 $3.017 305 -354 $2.673 25D -3 355 -404 $2.434 405 -454 $2.300 455 -504 $2.240 505 -615 _ $2.240 2. Section 2.C, COMPENSATION, shall be amended to add additional compensation in the amount of $1,670,894.00 ($1,452,951 base contract + $217,943 (15% contingency) to the previous Agreement amount of $1,412,140 for a total of $3,083,034.00 and section 2C shall read as follows: C. TOTAL AGREEMENT COMPENSATION During the term of this Agreement, the total compensation for the Agreement shall not exceed $2,865,091.00 with a 15% contingency of one year's Agreement cost of $217,943 for a total not to exceed amount of $3,083,034.00. The contingency can be utilized at the City's sole discretion. 3. Section 3, TERM, is amended to exercise the final one year extension and to provide that the termination date of the Agreement is January 31, 2017. 4. Except as hereinabove amended, all terms and conditions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the patties hereto have executed this Fifth Amendment to Agreement on the date and year first written above. ATTEST: CITY OF SANTA ANA MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By:9Old w-,,-, it -1", Laura A. Rossini Senior Assistant City Attorney RECOMMENDED FOR APPROVAL; Carlos Rojas Chief of Police DAVID CAVAZOS City Manager ARAMARK CORRECTIONAL SERVICE, LLC. Mark Adams Chief Financial Officer Vice President of Finance 25D -4