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02-01-2000 - Authorization to Request Proposals for the Catering of the Senior Meals Programr City of West Covina Memorandum AGENDA TO: City Manager and City Council ITEM NO F -1 DATE: February 1, 2000 PRINTED ON RECYCLED PAPER FROM: Tom Hatch Community Services Director SUBJECT: AUTHORIZATION TO REQUEST PROPOSALS FOR THE CATERING OF THE SENIOR MEALS PROGRAM SUMMARY: At the .request of the City Council, the Ad Hoc .Committee on Senior Meals has diligently reviewed the options and opportunities to operate the lunch-time meal program at the West Covina Senior Center. The Committee has completed its work and is recommending that the City Council authorize staff to send out a Request For Proposal for the catering of the Senior Meals Program. BACKGROUND: The City Council at its meeting of October 5, 1999 directed that an Ad Hoc Committee be formed to review the Senior Meals Program. Council Members Steve Herfert and Ben Wong were appointed -to work with members of the Senior Commission, leaders at the Senior Center and the. public to review the options for providing a lunch-time meals program. The specific purpose of the Committee was to review options and design a program that will provide a long-term solution for the operation of a quality Senior Meals Program. The members of the Ad Hoc Committee on Senior Meals included: Council Members Steve Herfert. and Ben Wong; Marietta Pahner and Mary Newlin from the Senior Commission; Loretta Feller from the Senior Nutrition and Advisory Committee; Mary Duncan from the Senior Advisory and Support Group; Don Pascoe from the West Covina Senior Citizens Club (Tuesday Club); and Penny Schaeffer and Doloras Kowalski from the Senior Citizens Association of West Covina, Inc. (Wednesday Association). Staff assistance was provided by Assistant City Manager Artie Fields,- Community Services Director Tom Hatch and Community Services Secretary Sue Rush. A few other representatives of the Senior. Center participated but did not complete the assignment. In addition, Mike Earley, Program Manager for the Los Angeles County Office of the Area Agency on Aging participated at two meetings of the Committee. The Ad Hoc Committee on Senior Meals held five meetings over a three-month period, effectively and thoroughly completing the work. This report is the culmination of work and provides several recommendations to the City Council. These recommendations are provided to the City Council after a unanimous vote of support for the conclusions. DISCUSSION: The Committee begantheir work by establishing five key interests for the West Covina Senior Meals Program. The Program should provide: L A lunch-time meal for seniors Monday through Friday 2. Low cost meals 3. Meals that are very nutritious 4. Food that's of good quality and taste 5. Food that is prepared at the West Covina Senior Center \UUPITER\CSVCSDOC\Senior Meals\Council report 2-1-OO.doc The Committee identified two viable options for the operation of the Program including: 1. Provide food preparation services with City staff (internal staff) 2. Hire a County -approved caterer to provide food preparation services There were three key tasks that needed to be accomplished for the Committee to successfully complete its City Council directive. The first was to evaluate the advantages and disadvantages of a program operated by internal staff versus a catering company in relation to operational effectiveness and cost effectiveness. The second was to determine which of the two options would be better for the particular needs of the West Covina Senior Center. Finally, the Committee upon determination of who should cook the meals, needed to identify the particular needs of the Center and ensure that they were addressed. Food Preparation Services With Internal Staff The Committee began by reviewing the operation of the kitchen using internal staff. The. Committee reviewed the current structure of the Program using one Cook, one Assistant Cook and one Dishwasher position. The City has had a difficult time in recent years retaining a Cook for several reasons. The general feeling from the Committee was that to attract and retain staff the salary would need to be increased and that it would likely require the addition of benefits. The Committee also reviewed in detail, the advantages and disadvantages of using internal staff with data on competitive salaries and benefits from various sources. In addition, the Committee reviewed the direct and indirect costs and compared these costs to the revenues of the program. The key advantage was that internal staff might be more responsive to the concerns of supervisors and customers. Several disadvantages were identified including increased costs and the lack of expertise of internal staff on the operations of kitchens. The financial analysis indicated .that using internal staff at the necessary salary and benefit levels would require an additional subsidy estimated to be between $12,750 and $21,946 per year. The City of West Covina is the only. known Senior Center in the San Gabriel Valley that currently operates using internal staff. A comparison of the cost is as follows: Option Estimated Range of Costs Projected Revenues Potential New Savings Or New(Subsidy) Internal Staff $184,207 to $193,403 $171,457 ($12,750) to $21,946 Catering Contract $148,716 to $182,866 $171,457 $11,409 to $22,741 The estimated range of costs for the catering contract above were from previous bids — new bids could result in different costs. Projected revenues are $171,457 including $82,197 from the County, $25,000 from City CDBG Funds,, and $64,260 from customer donations. After reviewing the internal staff option, the .Committee determined that the significant costs and the lack of expertise made this option much less desirable. The Committee also determined that an RFP could be structured to ensure that a caterer would be responsive. to customers and administrative staff by requiring regular meetings and a clause to allow for the termination of the contract. Finally, the City will request that the selected catering company interview any available kitchen staff working at the Senior Center with the understanding that the new company would have the right to make all hiring decisions. Food Preparation Services With County Approved Caterer The Committee reviewed the County's sample RFP to gain a better understanding of the County's requirements and expectations. This was vital because the County provides 486/o of the revenue that pays for the program and we must meet their requirements to continue receiving the funding. The remaining revenue comes from the City Council authorization of Community Development Block Grant funds and from donations from customers. \UUPITER\CSVCS MSenior Meals\Council report 2-1-OO.doc n The Committee reviewed the sample RFP line by line and page by page and made minor changes to- best meet the City's needs. The County has reviewed and accepted the majority of the Committee's requested minor changes to the sample RFP. The modified RFP will allow prospective caterers to understand our particular needs and submit proposals accordingly. The Committee did have a desire to conduct a taste test of competing providers, however the County would not allow the taste test to be incorporated into the determination of who is the lowest responsive bidder. The Committee will still conduct a taste test of the lowest responsive bidder prior to the award of bid to confirm that a quality product is provided. Public Outreach A memo was distributed at the Senior Center last week to inform participants about the status of the Committee's recommendation. In. addition, staff addressed the lunch attendees at the Center on Wednesday, January 26 and Thursday, January 27 to update the participants. Finally, staff went from table to table answering questions and listening to concerns. Staff also offered to forward any comments or concerns to the City Council if the participant wanted. Several comments were received and staff was asked to forward these comments to the City Council: 1. "I am happy to hear that we will continue to cook at the Senior Center and not bring in food cooked at another. site. This was by far the number one response received. 2. "Have a suggestion box, so that seniors can make comments to advise the cook of likes and dislikes." Staff will create a suggestion box for the meals program. 3. "Tell the City Council that we appreciate the meals." 4. Other items that were provided include: changing the caps on the milk to twist off caps, more coffee in the north hall, and establish a food bank at the Senior Center. Staff will review these items and also pass them on to the Senior Commission for comment. FISCAL IMPACT: Funding for the Program is already included in the FY 1999-2000 Budget in Fund 146 Department 2392 in the amount of $235,206 and in Fund 131 Department 2417 in the amount of $25,000 for a total allocation of $260,206. The $260,206 appropriation also includes the indirect cost of the program and a higher estimate of 44;000 meals to be served when the actual amount will be closer to 36,720 meals. With 50% of the year completed, $100,740 has been spent through December 1999.. The actual costs for a catering program will be unknown until the bids have been received. It could be estimated that the annual costs could vary from approximately $150,000 to $180,000 or more.' The Committee's analysis shows that it will be less expensive to provide a program with a professional caterer. When the bids are received, the City Council will again have the opportunity to evaluate the costs of the program based on actual bids and not estimated costs. RECOMMENDATION: The Ad Hoc Committee on Senior Meals has thoroughly reviewed the operations of. the, Senior Meals Program and feels that the five key interests for the Program can best be accomplished by hiring a professional caterer. The Ad Hoc Committee on Senior Meals recommends that the City Council: 1. Receive and file this report. 2. Authorize City staff to send out an RFP to professional caterers to provide the Senior Meals Program. Reviewed By: Tom Hatch Community Services Director Margie Tucker Finance Director \UUPITER\CS MOC\Senior Meals\Council report 2-1-OO.doc