City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-01554 12/12/2023 Consent Item 14.
Purchase/Cooperative Agreement: Food for Recreation Programs and Supplemental Purchases
File ID: 2023-01554
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing use of the Premier Inc., US Foods cooperative purchasing agreement through Frederick County Public Schools, to access its contract #19FS1 with Premier K-12 Foodservice for food purchases and supplemental purchases for City recreational programs from June 1, 2023 through May 31, 2027; 2) authorizing the City Manager or the City Manager’s designee to issue purchase orders under the Frederick County Public Schools contract in an amount not to exceed $240,000 per fiscal year, for a total amount not to exceed $960,000; subject to sufficient revenues in the annual operating budget; and 3) suspending competitive bidding finding it is in the City’s best interest for the Youth, Parks and Community Enrichment Department (YPCE) to make direct supplemental food purchases and recreational supplies from June 1, 2023 through May 31, 2027 at local grocery stores with a purchase order or purchase card in a total amount not to exceed $510,000 per fiscal year for a total amount not to exceed $2,040,000 subject to funding availability in the adopted operating budget for the applicable fiscal year.
Contact: Ray Rodriguez, Support Services Manager (916) 808-1040; Jackie Beecham, Director, (916) 808-1041, Department of Youth, Parks and Community Enrichment Presenter: None
Attachments:
1-Description/Analysis
2-Renewal Letter
3-Additional Terms and Conditions
Additional Description/Analysis
Issue Detail: YPCE purchases food supplies for its recreation programs, including the 4th “R” childcare program, START after-school program, Youth programs, Community Center programs, Access Leisure, Older Adults and Camp Sacramento.
File ID: 2023-01554 12/12/2023 Consent Item 14.
City Council authorization is required in order to use the U.S. Communities cooperative purchasing agreement through Frederick County Public Schools access its contract #19FS1 with Premier K-12 Foodservice to purchase food and related supplies for City recreational programs for the next four fiscal years. Authorization is also requested to suspend competitive bidding to allow for direct purchases of supplemental food and recreation supplies at local stores with a purchase order or purchase card for the recreation programs during this same period. These proposed actions are consistent with the City Council’s past approvals with regard to purchasing food and supplies for recreational programs.
Policy Considerations: In accordance with City Code section 3.56.240, subject to City Council approval, supplies can be purchased through contracts of other governmental agencies in lieu of competitive bidding, where it is advantageous to the City. The cooperative agreement issued by Frederic County Public Schools on behalf of U.S. Communities cooperative purchasing group and the Additional Terms and Conditions meets YPCE food specifications and will result in cost savings because of the competitive bidding that was undertaken by Frederick County Public Schools.
Suspending competitive bidding for supplemental food and supplies from local retail grocery stores is needed because: 1) the total annual expenditure amount at each store may exceed the $5,000 bidding threshold under the City’s procurement policies and grocery and retail stores ordinarily do not bid on public contracts; and 2) direct purchases from local retail and grocery providers allows for meeting the need for additional food products on a time-limited basis as required for operation of YPCE’s recreational programs. This is consistent with section 3.56.230 of the Sacramento City Code, that allows the City Council to suspend competitive bidding for the purchase of supplies when, upon a two-thirds vote, the Council determines that it is in the City’s best interest to do so.
Economic Impacts: None.
Environmental Considerations: This report concerns the purchase of food and supplies for YPCE.
Continuing administrative activities, such as the purchase of food and supplies, is not a “project” for the purposes of California Environmental Quality Act (CEQA) pursuant to section 15378(b)(2) of the CEQA Guidelines (Title 14 Cal. Code Reg. § 15000 et seq.).
Sustainability: Not Applicable.
Commission/Committee Action: None.
Rationale for Recommendation: On behalf of U.S. Communities and its members, Frederick County Public Schools conducted a competitive bidding process to select their food provider. The use of the Frederick County Public Schools cooperative purchasing agreement enables the City to maximize cost savings through volume buying and reduced administrative expenses.
File ID: 2023-01554 12/12/2023 Consent Item 14.
Financial Considerations: The estimated cost of food supplies to be purchased from Premier K-12 Foodservice utilizing the Frederick County Public Schools purchasing agreement for the next four fiscal years is $960,000 or $240,000 per fiscal year. The price for food products varies at any point in time because it is a perishable product that is subject to price escalation based on demand and production costs. The actual costs charged would be based on the date of each food order.
Programs that would use the cooperative purchasing agreement are intended to be self- supporting and have been purchasing food for many years as part of their budgeted operations. No additional General Fund appropriation is required. The 4th “R” Child Care Program and Camp Sacramento include food costs in the fee for service.
Purchases are subject to funding availability in the adopted operating budget of the applicable fiscal year.
Purchases for other recreation programs such as Access Leisure, Camp Sacramento, Recreation Services, Older Adult Services, Community Centers, and Neighborhood and Teen Services is an integral part of their programs.
Supplemental grocery and some recreation supplies would be purchased from local retail grocery providers on an as needed basis, such as: General Produce, Oto’s Marketplace, US Foods, Safeway, Whole Foods, CVS Pharmacy, Dollar Tree, K-Mart, Rite Aid, Wal Mart Corporate, Costco, Sam’s Club, Smart and Final, 99 Cent Stores, Target and Raley’s Family of Fine Foods stores. This authorization for staff to procure supplemental food and recreation supplies for all recreation programs over the four-year period would not exceed a total amount of $2,040,000 or $510,000 per fiscal year.
Local Business Enterprise (LBE): The Smart and Final, General Produce, Wal Mart, Oto’s Marketplace, Safeway, Whole Foods, 99 Cent Stores, Sam’s Club, Target, Costco, Raley’s, Bel Air, and Wal Mart stores are all located in the city.
Background The 4th “R” Child Care Program is a fee-for-service program paid for by parents. The fees charged include funding for food. Camp Sacramento operates by charging all- inclusive rates to campers, which cover lodging, food and activities. There are few opportunities to purchase bulk food items from retail grocery providers in Sacramento because they refuse to participate in the bid process and most will also not accept a purchase order. The volume and limitations of product sizes required by YPCE programs exceeds the expenditure limitations and requirements of Administrative Policy 4001, which requires solicitation of at least three prospective bidders for supplies over $5,000 up to $25,000 and issuance of an Invitation for Bids for supplies more than $25,000 and less than $100,000. Some grocery providers offer in-house credit accounts in lieu of accepting purchase orders; however, a credit account is not an authorized method of purchase therefore, procurement
File ID: 2023-01554 12/12/2023 Consent Item 14.
credit cards will be used to make purchases from local grocery providers as needed to supplement the bulk food purchases and supplies from Premier K-12 Food Products.
1 ADDITIONAL TERMS AND CONDITIONS
(PARTICIPATING ADDENDUM)
COOPERATIVE PURCHASE AGREEMENT
WHEREAS, Frederick County Public Schools (“FCPS” or “Lead Agency”) issued a Request for Proposals, RFP 19FS1, on October 2, 2018 to establish a national cooperative contracts for Food Products and Distribution for K12 and other Public Agencies.
WHEREAS, as a result of RFP 19FS1, Premier Healthcare L.P and US Foods, Inc. (collectively “Contractor” or “Supplier”) and FCPS entered into a Master Agreement on April 24, 2019 (“Master Agreement”);
WHEREAS RFP 19FS1, and all associated documents, including but not limited to Exhibits, Addendums, and the Master Intergovernmental Cooperative Purchasing Agreement, together with the Administration Agreement, Master Agreement, and Updates and Renewals thereto, (collectively “FCPS Contract”) constitute the agreement between FCPS and Supplier;
WHEREAS, the City of Sacramento (“City”) is Participating Public Agency as defined in RFP 19FSI,
WHEREAS a Participating Public Agency may require Additional Terms and Conditions to the FCPS Contract;
WHEREAS, the City wishes to purchase the goods and services offered by Supplier, and Supplier wishes to sell its goods and services to the City pursuant to the terms of the FCPS Contract and these Additional Terms and Conditions;
NOW THEREFORE, Supplier and the City (collectively, “Parties”) agree as follows:
1. Obligations. City shall have all of the rights as FCPS and U.S. Communities has under the FCPS Contract, and Supplier shall retain all of the same obligations it has under the FCPS Contract, as supplemented or modified by these Additional Terms and Conditions. The terms of the FCPS Contract and these Additional Terms and Conditions override any contrary terms provided by Supplier, including but not limited to their own terms and conditions.
2. Purchase via Purchase Orders. The City agrees to purchase the products and services set forth in Section 2, “General Scope of Services” of RFP 19FS1. Notwithstanding Paragraph 11, Section 4, General Terms and Conditions of RFP 19FS1, or any terms to the contrary, the City shall make purchases under the FCPS Contract by way of subsequently issued Purchase Order(s).
3. Governing Law and Venue. Notwithstanding the provisions of Paragraph 11 of the Master Agreement and Paragraphs 2, 5, 12, 14, 15, 19 and 20, Section 4, General Terms and Conditions of RFP 19FS1 , or any terms to the contrary, the laws of the State of California will govern the relationship /contract between the City and Supplier. Venue for all legal proceedings relating to City’s contract with Supplier shall lie exclusively in the state trial court or Federal District Court located in Sacramento County in the State of California, and the City and Supplier consent to jurisdiction over their persons an d over the subject matter of any litigation in such courts, and consent to service of process by such courts. Supplier agrees to be bound by, and to comply with, all applicable laws of the City of Sacramento, the State of California, and the United States of America.
4. Indemnity. It is understood that the Supplier shall defend and hold harmless the City, its officers and employees and each and every one of the m from all suits, actions, or claims of any kind brought about as a result of any injuries or damages sustained by person(s) or property during the performance of this contract.
5. Criminal Background Check.. Supplier and its of its employees, volunteers, agents and subcontractors which will have supervisory or disciplinary authority over, or will have any contact with pupils, minors, adults aged 65 or older, or individuals with disabilities, during the course or scope of the FCPS Contract, are prohibited from being convicted of a violation or attempted violation of any sex offense, violent offense or offense involving moral turpitude, including but not limited to those offenses listed in California Public Resources Code section 5164(a)(2), California Penal Code section 1192.7(c), and California Education Code section 44010. Supplier shall require its employees, volunteers, agents and subcontractors interacting pupils, minors, adults aged 65 and above, or individuals with disabilities during the term of the FPCS Supplier to submit to being fingerprinted and background checked by the California Department of Justice, prior to providing services. A background check includes a valid criminal history summary. A conviction for a violation or attempted violation of an offense committed outside the State of California shall be included in this review if the offense would have been a crime if committed in California. If at any time, Supplier or any of its employees, volunteers, agents or subcontractors is arrested for, or convicted of a felony or misdemeanor involving a sex offense, violent offense or offense DocuSign Envelope ID: DEC37F49-8DE9-43A7-8E32-C9464BE2A6D1 2 involving moral turpitude, Supplier shall immediately notify the City.
6. Public Records. Notwithstanding Paragraph 24, Section 4, General Terms and Conditions of RFP 19FS1, or any terms to the contrary, Supplier acknowledges that the City is a public entity, subject to California’s public records laws and that any documents related to the FCPS Contract and these Additional Terms and Conditions and Conditions may be subject to disclosure pursuant to state law in response to a public records request or to subpoena or other judicial process. If Supplier believes document related to the Agreement contains trade secrets or other proprietary data, Supplier must notify the City and include with the notification a statement that explains and supports Supplier’s claim. Supplier also must specifically identify the trade secrets or other proprietary data that Supplier believes should remain confidential. In the event the City determines it is legally required to disclose pursuant to law any documents or information Supplier deems confidential trade secrets or proprietary data, the City, to the extent possible, will provide Supplier with prompt written notice by certified mail, fax, email or other method that tracks delivery status of the requirement to disclose the information so Supplier may seek a protective order from a court having jurisdiction over the matter or obtain other appropriate remedies. The notice will include a time period for Supplier to seek court ordered protection or other legal remedies as deemed appropriate by Supplier. If Supplier does not obtain such court ordered protection by the expiration of said time period, the City may release the information without further notice to Supplier.
7. Insurance. Supplier shall, at its sole cost and expense, maintain the level of insurance coverage described in Paragraph 34, Section 4, General Terms and Conditions of RFP 19FS1. Supplier shall name the City of Sacramento as an additional insured under all relevant insurance policies.
8. Except as specifically modified herein, all terms and conditions of the FCPS Contract shall remain in full force and effect, and Supplier shall perform all of the services, duties, obligations, and conditions required under the FCPS Contract, as supplemented and modified by these Additional Terms and Conditions.
9. Authority. Supplier warrants and represents that the person or persons executing this document on behalf of Supplier has or have been duly authorized by Supplier to sign these Additional Terms and Conditions, and to bind Supplier thereto.
Agreed to By:
Supplier
Agreed to By: Attested To By:
City of Sacramento City Clerk
Approval Recommended By: Approved As to Form By:
Project Manager City Attorney
DocuSign Envelope ID: DEC37F49-8DE9-43A7-8E32-C9464BE2A6D1 US Foods
10/27/2023
Mischa Collins