Fremont City Council Meeting: 05/03/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors: Family Services Administrator Karen L. Grimsich STAFF REPORT (ID # 4586) DOC ID: 4586
Updated: 4/27/2022 3:37 PM by Alberto Quintanilla Page 1 AGE WELL CENTERS FOOD SUPPLIES - Approval of Annual Purchase Orders with U.S. Foods for Food Supplies in an Amount Not to Exceed $275,000 and Making Finding of CEQA Exemption
Contact Persons:
Name: Aisha Jasper Suzanne Shenfil
Title: Senior Center Manager Director
Div/Dept: Human Services Department Human Services Department Phone: 510-790-6606 510-574-2051
E-Mail: [email protected] [email protected]
Executive Summary: The City has issued a $99,000 annual purchase order to U.S. Foods to provide food supplies needed to support the meal program and operations of the City’s two Age Well Centers. The purpose of this report is to recommend that the City Council delegate authority to the City Manager or her designees to increase the current purchase order by $46,000 and execute additional annual purchase orders with U.S. Foods, not to exceed $275,000 per year, through June 30, 2027.
BACKGROUND: For many years, U.S. Foods has supplied the Age Well Center (AWC) at Lake Elizabeth’s meal program, which is one of the few centers in Alameda County that serves freshly prepared meals, on-site, 5 days a week. Goods purchased include food supplies such as produce, starches and protein, as well as paper and cleaning products.
During COVID-19 restrictions, the AWC at Lake Elizabeth provided boxed to-go meals to senior residents, as well as unhoused occupants of non-congregate temporary shelters. In September 2021, the City opened the Age Well Center at South Fremont, which also has the capacity to serve freshly prepared meals, on-site, 5 days a week.
DISCUSSION/ANALYSIS: The City participates as part of a cooperative purchasing organization through OMNIA Partners for public sector procurement, allowing the City to receive unit cost savings through controlled pricing and group purchasing. As a partnering agency, North Carolina State University recently completed a competitive bidding and contract award process for food distribution and other services with U.S. Foods. North Carolina State University has a cooperative contract which expires June 30, 2023, with the option to extend for two 2-year terms through FY 2026/27. Staff recommends utilizing the cooperative purchasing process to select U.S. Foods to continue providing services for Fremont.
Based on this cooperative purchasing process, the City currently has a $99,000 purchase order with U.S. Foods. As senior residents return to in-person meals with COVID-19 restrictions lessening, the AWC meal programs are now offered at both Lake Elizabeth and South Fremont five days a week. Consequently, increase in meal production at the two sites will result in expenditures for U.S. Foods products exceeding the current purchase order limit of $99,000.
Staff anticipates that a $275,000 annual purchase order (P.O.) with U.S. Foods will provide enough purchasing authority to cover the consumable food demand of the two AWCs and Staff Report (ID # 4586) Meeting of May 3, 2022
Updated: 4/27/2022 3:37 PM by Alberto Quintanilla Page 2 the incremental cost increases of the products. Staff recommends the City Council delegate authority to the City Manager or her designees to increase the current year purchase order by $46,000 and execute additional annual purchase orders for the fiscal years covered by the cooperative agreement at $275,000 per year. These purchase orders would not preclude the City from purchasing food products from other vendors that may have better pricing for specific items.
Fiscal Year
Annual
P.O.
Change
Order Total
2021/22 $ 99,000 $46,000 $ 145,000
2022/23 275,000 275,000
2023/24 275,000 275,000
2024/25 275,000 275,000
2025/26 275,000 275,000
2026/27 275,000 275,000
Total: $1,474,000 $46,000 $1,520,000
FISCAL IMPACT: The general fund will not be impacted. Revenue generated from the Age Well Centers’ meal program fees in the Senior Center Cost Center Fund (Fund 186) will cover the annual cost of food purchases.
ENVIRONMENTAL REVIEW: The action is exempt from CEQA pursuant to, without limitation, CEQA Guidelines Section 15378(b)(2), (4) and/or (5), and/or 15061(b)(3) as an administrative or fiscal activity that has no potential to cause a significant effect on the environment, directly or indirectly, each of the foregoing providing a separate and independent basis for CEQA exemption.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager or her designees to increase the current purchase order with U.S. Foods for Age Well Center food supplies by $46,000 and execute additional annual purchase orders with U.S. Foods in an amount not to exceed $275,000 per year through June 30, 2027.