SR-07-22-1980-11CSanta.Monica,' difornia, July 211, 1980
TO: Mayor and City Council
FROM: Senior Citizens Nutrition Advisory Council JUL 2 2 1980
SUBJECT: Item 11C - Supplemental Information 1980 -81
Nutrition Program Food Contract
Introduction
This report represents the procedures followed in reviewing bids for the provision
of food service to the Senior Nutrition Program and recommends the awarding of
the contract to Ben Franklin Corporation for Tuesday through Saturday service.
Background
The Senior Citizen's Nutrition Advisory Council reviewed the bids received at
their special meeting of July 16, 1980, although a quorum of seven members was not
present (six were in attendance). Five members of the Nutrition Advisory Council
visited one of the City of Inglewood's nutrition sites on Thursday, July 17, 1980,
and sampled the food provided at that site by the Slater Corporation.
It was the unanimous opinion of those attending the Inglewood site that the quality
of the food served was not as good as that provided by Ben Franklin. On Monday,
July 21, with a quorum present, the Nutrition Advisory Council met to finalize
their recommendation to City Council.
Recommendation
The Advisory Council unanimously passed the following motions July 21, 1980, and
recommends the following action to the City Council.
1. That the City Council reject the low bid of Slater Corporation for Monday -
Friday service.
2. That the City Council accept the bid of Ben Franklin to provide meals on Tuesday -
Saturday service.
I
T0: Mayor and City Council Santa Monica, California, July 21, 1980
_2_
3. That the City Council consider one of the three options regarding additional
funding necessary.
A. Appropriate an additional $19,500 from the general fiord to subsidize
the program.
B. Split the increased cost with the Nutrition Advisory Council through an
increase in the participant meal donation cost to $.90 (presently $.75)
and subsidize the program $9,750 from the general fund.
C. Require Advisory Council to increase the participant donation level to
$1.05 to cover the total increased cost of the program.
Prepared by: Donald T. Arnett, Director
Recreation and Parks
E
U
Santa Monica, California July 1$,.1980 JUL 2 2 JgBo
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to award bid for Senior Citizen Meals
BID NO. 1516
Introduction
This report concerns award of bid to furnish an estimated total of 62,750 on -site
hot meals for senior citizens during the period August 1, 1980 through June 30, 1981,
in the total amount of $122,362.50 for Monday through Friday Service or $141,187.50
for Tuesday through Saturday Service. Sales tax is not applicable to these meals.
Funds totalling $121,735.00 are available in accounts 20 -700- 902- 000 -437 and 20-
700- 902 - 000 -439, applicable to the Title VII Nutrition Grant to the City of Santa
Monica.
Background
On June 17, 1980, the City Council rejected all bids received in a prior solicit-
ation, and directed that a new Notice Inviting Bids be published and distributed
seeking both Monday through Friday and Tuesday through Saturday service.
In response to published Notice Inviting Bids, proposals were received and publicly
opened and read July 15, 1980. Proposal packages were mailed to twenty -two (22)
food service companies and notices were advertised in accordance with City Charter
and Municipal Code provisions. Two (2) bids were received, as listed on the attached
Summary of Bids.
Both bids contained irregularities (departures from the City's specification) as
they regard termination of service. The bid of Slater Corporation contains a 30
day cancellation clause which can be exercised by either party. The bid of Ben
Franklin specifies that Ben Franklin may cancel on three working day's notice for
failure to pay by the City.
JUL 2 2 16'30
TO: Mayor and City Council July 18, 1980
Each bidder was called to determine the degree to which these irregularities could
be modified to the City's advantage. Slater Corporation indicated that a 60 day
cancellation clause would be acceptable and, that given a CPI -based escalator
clause they could waive the cancellation provision altogether. Ben Franklin in-
dicated that the three day termination for non - payment was added because our
contract allows the Director of Recreation and Parks to cancel on three days notice
for non - performance. Ben Franklin seeks a bilateral provision and would be willing
to allow a longer termination notice if the City matched it.
Alternatives
1. Reject all bids and direct staff to re- publish
2. Award Monday through Friday service to Slater Corporation, appropriating an
additional $627.50 from the General Fund:
a. as submitted with 30 day bilateral cancellation clause
b. with sixty (60) day cancellation clause
c. withia CPI escalator clause and no cancellation clause
3. Award Tuesday through Saturday service to Ben Franklin, appropriating an
additional $19,452.50 from the General Fund:
a. as submitted with 3 working days termination for non - payment by City
b. extending the notice period necessary for termination for non - performance
by contractor to gain an equivalent notice period for non - payment by City.
Discussion
Should council choose alternative #1, there is no indication that new bidders
could be attracted.
Should Council choose to award Monday through Friday to Slater Corporation, the
lowest bidder, the additional $627.50 above the Federal Subsidy should be appropriated
from the General Fund but would undoubtedly be covered by program savings over the
fiscal year. Alternative #2 provides insufficient time to re- advertise for bids if
cancellation occurs, and alternative #2.c. provides for a CPI clause which the Area
Agency on Aging has discouraged in the past.
Should Council choose to award to Ben Franklin for Tuesday through Saturday, an
additional $19,452.50 must be appropriated from the General fund to supplement the
Federal subsidy. Both alternatives 3.a. and 3.b. would require gaining agreement
with Ben Franklin on a reasonable turn - around time for payment after presentation
of accurate invoices as the Firm has complained in the past about the normal turn-
around.
TO: Mayor and City Council July 18, 1980
Recommendation
Staff recommends that if council chooses to provide Monday through Friday service
that they award to Slater Corporation, the low bidder, directing staff to negotiate
a sixty day cancellation period.
If Council chooses to provide Tuesday through Saturday service, staff recommends
that Council award to Ben Franklin, the sole bidder, directing staff to negotiate
a bilateral termination period that provides for a clear definition of reasonable
turn- around on payment.
Prepared By: R. N. Aronoff
Purchasing Agent
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2
INFORMATION 'Santa Monica, California, July 18, 1980
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Senior Nutrition Meals - Item 11C
The Senior Nutrtion Advisory Council is in the process of taste testing the meals
served by ARA. They will be doing this Thursday, Friday, and Saturday of this week.
Their report will be presented to Council for Council's consideration on Tuesday
when you deliberate item 1.1 C. on the awarding the contract :tor the senior nutrition
meal program.
Prepared by: Donald T. Arnett, Director
Recreation and Parks
DTA:dc
I'.
Santa Monica, California July 18,.1980
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to award bid for Senior Citizen Meals
BID NO. 1516
Introduction
1/
JUL .2 2 1969
This report concerns award of bid to furnish an estimated total of 62,750 on -site
hot meals for senior citizens during the period August 1, 1980 through June 30, 1981,
in the total amount of $122,362.50 for Monday through Friday Service or $141,187.50
for Tuesday through Saturday Service. Sales tax is not applicable to these meals.
Funds totalling $121,735.00 are available in accounts 20 -700- 902- 000 -437 and 20-
700- 902 - 000 -439, applicable to the Title VII Nutrition Grant to the City of Santa
Monica.
Background
On June 17, 1980, the City Council rejected all bids received in a prior solicit-
ation, and directed that a new Notice Inviting Bids be published and distributed
seeking both Monday through Friday and Tuesday through Saturday service.
In response to published Notice Inviting Bids, proposals were received and publicly
opened and read July 15, 1980. Proposal packages were mailed to twenty -two (22)
food service companies and notices were advertised in.accordance with City Charter
and Municipal Cade provisions. Two (2) bids were received, as listed on the attached
Summary of Bids.
Both bids contained irregularities (departures from the City's specification) as
they regard termination of service. The bid of Slater Corporation contains a 30
day cancellation clause which can be exercised by either party. The bid of Ben
Franklin specifies that Ben Franklin may cancel on three working day's notice for
failure to pay by the City.
//(2-
JUL 2 22 1y,3
TO: Mayor and City Council July 18, 1980
Each bidder was called to determine the degree to which these irregularities could
be modified to the City's advantage. Slater Corporation indicated that a 60 day
cancellation clause would be acceptable and, that given a CPI -based escalator
clause they could waive the cancellation provision altogether. Ben Franklin in-
dicated that the three day termination for non - payment was added because our
contract allows the Director of Recreation and Parks to cancel on three days notice
for non - performance. Ben Franklin seeks a bilateral provision and would be willing
to allow a longer termination notice if the City matched it.
Alternatives
1. Reject all bids and direct staff to re- publish
2. Award Monday through Friday service to Slater Corporation, appropriating an
additional $627.50 from the General Fund:
a. as submitted with 30 day bilateral cancellation clause
b. with sixty (60) day cancellation clause
c. with 'a CPI escalator clause and no cancellation clause
3. Award Tuesday through Saturday service to Ben Franklin, appropriating an
additional $19,452.50 from the General Fund:
a. as submitted with 3 working days termination for non - payment by City
b. extending the notice period necessary for termination for non - performance
by contractor to gain an equivalent notice period for non - payment by City.
Discussion
Should council choose alternative #l, there is no indication that new bidders
could be attracted.
Should Council choose to award Monday through Friday to Slater Corporation, the
lowest bidder, the additional $627:50 above the Federal Subsidy should be appropriated
from the General Fund but would undoubtedly be covered by program savings over the
fiscal year. Alternative #2 provides insufficient time to re- advertise for bids if
cancellation occurs, and alternative #2.c. provides for a CPI clause which the Area
Agency on Aging has discouraged in the past.
Should Council choose to award to Ben Franklin for Tuesday through Saturday, an
additional $19,452.50 must be appropriated from the General fund to supplement the
Federal subsidy. Both alternatives 3.a. and 3.b. would require gaining agreement
with Ben Franklin on a reasonable turn - around time for payment after presentation
of accurate invoices as the Firm has complained in the past about the.normal turn-
around.
TO: Mayor and City Council July 18, 1980
Recommendation
Staff recommends that if council chooses to provide Monday through Friday service
that they award to Slater Corporation, the low bidder, directing staff to negotiate
a sixty day cancellation period.
If Council chooses to provide Tuesday through Saturday service, staff recommends
that Council award to Ben Franklin, the sole bidder, directing staff to negotiate
a bilateral termination period that provides for a clear definition of reasonable
turn - around on payment.
Prepared By: R. N. Aronoff
Purchasing Agent
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