SR-08-28-1979-11ASanta Monica, Cali' nia, August 16, 1979
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Senior Citizen Nutrition Program Food Contract
AUG 2 8 1979
Introdution
This report presents the negotiated price of meals for the Senior Nutrition
Program and certain conditions requested by Ben Franklin, Inc. for inclusion
in the contract.
Background
On June 26, 1979, City Council rejected all bids for the Senior Citizens
Nutrition Program and directed staff to negotiate with Ben Franklin, Inc. after
consultation with the Project Advisory Council regarding a possible increase
in the suggested donation per meal.
At its July meeting, the Advisory Council voted to increase the donation per
meal from 65¢ to 85t effective August 1, 1979.
The staff, along with Advisory Council representatives, held several meetings
with John Simmons, President of Ben Franklin, Inc. and negotiated with him for
a figure of $2.05 per meal. He had initially submitted a $2.20 cost per meal.
Mr. Simmons also requested that the contract include an adjustment in cost
per meal based on expected increases in gasoline prices. This adjustment would
be made effective January 1, 1980, and would be based on gasoline price increases
during the preceding six months. This would be supplemental to the Consumer
Price Index food - away- from -home adjustment already contained in the contract,
effective January 1, 1980. Data for gasoline price adjustments would be gathered
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gust 16, 1979
from the Urban Wage Earners and Clerical Workers Consumer Price Index for
gasoline, leaded regular, for the Los Angeles, Long Beach, Anaheim, and Metro-
politan areas.
In addition, staff is submitting three requests by Mr. Simmons relating to
suggested changes in the contract
Franklin, Inc. are:
These suggestions as presented by Ben
a) In the event a disagreement shall arise between the parties, neither
party shall be entitled to commence legal proceedings without first having sub-
mitted the issues in controversy to arbitration proceedings before the American
Arbitration Association. In such arbitration proceedings, the prevailing party,
in addition to any other award to which it may be entitled, shall also be
entitled to reasonable costs and attorneys' fees.
b) Invoices submitted to the City of Santa Monica shall be due and pay-
able upon presentation. If payment is made on or before the fifth day following
the presentation, payer shall be entitled to a one -half percent discount upon
the total billing. If payment is not made until ten days, or more, has elapsed
since the date of presentation, payer shall be liable to pay an additional amount
to payee of one percent of the total billing.
c) This Agreement shall be effective as of
1979,
and shall be in force with respect to meals delivered during the period commencing
on the effective date and ending
1979. However, either
party may at any time during the life of this Agreement or any extension thereof,
terminate this Agreement with respect to the delivery of meals by giving thirty
(30) days notice in writing to the other party of its intention to do so.
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l just 16, 1979
It is the judgment of staff that the present contract is adequate, and it
recommends that these conditions not be granted for the following reasons:
a) The City does not use arbitration to settle contractual
disputes in its dealings with any vendors. Conflicts are generally settled
on a departmental level by administrative staff whose responsibility includes
administration of contracts. The City Council itself would be the forum
where final resolution would occur on matters that cannot be resolved at staff
level.
b) Concerning billing, the normal procedure for payment of warrants
is that bills submitted by Tuesday of a given week are paid by the Friday of
that week. With one exception, payment during the past year has been made to
Ben Franklin, Inc. within less than two weeks of receipt of its bills.
c) Acceptance of a 30 -day mutual cancellation clause would have the
effect of operating this program with a 30 -day contract rather than a year's
obligation from the contractor and could jeopardize delivery of services to
senior participants.
Recommendation
Staff recommends that the City Council approve the attached contract with
Ben Franklin, Inc. for senior citizens food service at $2.05 per meal subject
to adjustment after January, 1980,.based on Consumer Price Index food -away-
from -home figures from July 1979 to January 1980, as well as gasoline prices
adjusted from July 1979 to January 1980, and authorize the City Manager to
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enter into the agreement with Ben Franklin as presented herewith. Staff
further recommends that the conditions submitted by Ben Frnaklin, Inc. not
be added to the contract.
Prepared by: Donald T. Arnett, Director
Recreation and Parks
DTA:pp
Attachments
INFORMATION Santa Monica, California August 15, 1979
TO: Mayor and City Council
FROM: Commission on Older Americans
SUBJECT: Recommendation Regarding Senior Citizen Nutrition Program
At the August 15th meeting of the Commission on Older Americans a
motion was passed unanimously to make the following recommendation
to our City Council regarding the Senior Citizen Nutrition Program:
The Commission on Older Americans approves the recommendation of the
Nutritional Advisory Council to accept the Ben Franklin Company bid
with the exception of the three provisions.
Respectfully submitted,
Donald T. Arnett, Secretary
DTA:jw
cc: Charles Kent McClain, City Manager
INFORMATION
August 15, 1979, Santa Monica, CA.
To: Mayor and City Council
From: Senior Citizens Nutrition Advisory Council
Subject: Food Service Contract
The Senior Citizens Nutrition Advisory Council met August 15,
1979 and, by unanimous vote, approved the $2.05 per -meal figure
submitted by Ben Franklin, Inc. for delivery of hot meals to the
senior citizens luncheon program.
We understand that this figure would be subject to adjustment
after January 1980, based on Consumer Price Index Food - Away -From-
Home statistics as well as possible gasoline price increases during
the six -month period from July 1979, to January 1980.
The Advisory Council voted to reject the three conditions
submitted by Ben Franklin, Inc., regarding arbitration proceedings,
billing deadlines, and a 30 -day mutual cancellation clause.
Respectfully submitted: William Anderson, Chairperson