TO: TARA SCHULTZ, CITY MANAGER
FROM: ANNE K. TURNER, HUMAN SERVICES DIRECTOR
DATE: JUNE 25, 2019
Reviewed by:
City Manager: TS
Finance Director: AP
SUBJECT:
Title
AMENDMENTS TO THE CITY’S CATERING CONTRACT FOR THE SENIOR NUTRITION PROGRAM
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SUMMARY
The City currently receives grant funding through the Los Angeles Area on Aging (AAA) to deliver nutrition services in the form of congregate meals to seniors at both the Joslyn and Blaisdell Community Centers as part of the Elderly Nutrition Program (ENP). To provide these meals, the City must select a County-approved subcontractor to provide catering services.
The City’s current contract with Bateman Community Living, formerly Morrison Management Specialists, Inc. (Attachment A), is set to expire June 30, 2019, with the option to renew for an additional one-year term. Additionally, Bateman Community Living announced a 3.4% increase to its per-meal rate, effective July 1, 2019.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council authorize the City Manager to enter into a one-year contract extension with Bateman Community Living, in an amount not to exceed $119,700.
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ALTERNATIVES TO RECOMMENDATION
In addition to the staff recommendation, there are the following alternatives:
A. Request additional information from staff.
FINANCIAL REVIEW
Bateman Community Living has requested an increased meal unit price of $3.99 to extend the existing contract with the City. This is a 3.4% increase of $0.13 per meal over the previous meal rate of $3.86. The increase is in alignment with the most recent Consumer Price Index (CPI) in the Food Away from Home Category in the Western Region.
The annual cost of this contract service is projected at $119,700 based on up to 30,000 meals being ordered. This cost will be offset by funding received from the Los Angeles County AAA ENP contract in the amount of $114,824, as well as donations made by the clients at both meal sites. Donation revenue for 2019-20 is estimated at $27,000, and in addition to paying for a portion of the catering contract, will fund a portion of the operating costs of the program including program supplies and staffing. A subsidy of $51,745 from the General Fund will fund the remainder of the operating costs of the Senior Nutrition Program.
The staff cost to prepare this report is estimated to be $776 and is included in the operating budget of the Human Services Department.
ANALYSIS
The City entered into an agreement with Bateman Community Living on July 1, 2016, which was effective through June 30, 2017 with the option to renew for three one-year extensions until June 30, 2020.
On May 22, 2019, the City received notification from Bateman (Attachment B) informing us of the increase in its per-meal cost, effective July 1, 2019. The financial component of this contractual adjustment necessitates City Council approval.
The draft Amendment #3 to the Food Service Agreement (Attachment C) reflects the following:
1. The name change from Morrison Management Specialists, Inc. to Bateman Community Living
2. An extension of the contract for one-year, effective July 1, 2019 through June 30, 2020.
3. The increase in the per-meal rate, from $3.86 to $3.99.
Throughout this company’s ongoing relationship with the City, they have continued to offer a competitive price per meal, good customer service, proven competence, quality food, and a kitchen that is close to the two City meal sites.
In the recent Annual Nutrition Assessment conducted by the Los Angeles County Area Agency on Aging, Bateman Community Living received a score of 95.3%, consistent with their score from the last fiscal year.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following:
Council Priorities - This item addresses the Quality of Life Issues Council Priority.
Sustainability Plan - This item does not relate to this plan.
Economic Sustainability Plan - This item relates to the statement of City Council values of economic sustainability.
General Plan - This item does not relate to the General Plan.
2018-19 Budget - This item meets the Human Services Department’s Work Plan Goal HS 14: Operate the Senior Nutrition Lunch Program at two senior centers in cooperation with the Los Angeles County Area Agency on Aging.
Youth and Family Master Plan - This item does not relate to the Youth and Family Master Plan.
CEQA REVIEW
This item (appropriating grant funding) is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a “project” as defined in Section 15378). CEQA Guidelines Section 15378(b)(2), (4), and (5) excludes “[c]continuing administrative ... activities,” “government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment,” and “administrative activities of governments that will not result in direct or indirect physical changes to the environment” from its definition of “project.”
Even if this item were a “project,” it would be exempt from environmental review under CEQA Guidelines Section 15061(b)(3)’s “general rule” that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Here, it can be seen with certainty that there is no possibility that this item, in and of itself, will have a significant effect on the environment. On its own, this action will not result in any physical changes to the environment.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies are available at the City Hall public counter, the Youth Activity Center, the Alexander Hughes Community Center, and the City website.
Submitted by: Prepared by:
Anne K. Turner Jennifer Helé
Human Services Director Human Services Supervisor
Attachments:
A - Morrison to Bateman Announcement 2018
B - Bateman Rate Increase 2019
C - Draft Amendment #3 to Food Service Agreement