Title
Consideration of and action on renewing the contract with KHSS Ventures, Inc. (DBA Skillet's Restaurant) for the Senior Meals program.
Body
Summary:
Last June 28, the City entered into a one-year contract with KHSS Ventures, Inc. (DBA Skillet's Restaurant) to provide congregate and home-bound meals for senior citizens through the Maxwell Center. The contract expires on July 31, 2018 and includes the option to renew annually for up to two (2) more additional years. Last year the City agreed to increase the cost per meal by 8 percent (8%). At this time, both the City and Skillet's Restaurant are agreeable to another one-year extension of the contract. Due to the continuous rise in the cost of raw products, especially beef and produce, and increasing labor costs, Skillet's Restaurant has proposed a 5 percent (5%) increase for the meals as shown below:
The cost per meal in 2017 was as follows:
Home-bound meals = 100 meals @ $5.38/meal
Congregate meals = 40 meals @ $4.84/meal
The cost per meal proposed for 2018 is as follows:
Home-bound meals = 100 meals @ $5.65/meal
Congregate meals = 40 meals @ $5.08/meal
Home-bound meals averages 65-70 meals, but to be conservative, the higher amount is used for bid purposes.
All meals are served with one meat, two sides, bread and dessert, and each home bound meal includes a beverage (milk or juice). Because of the Maxwell Center renovations, the congregate meals are being packaged and delivered the same way as the home-bound meals to facilitate delivery and service to the Community Center. At this time and until the Maxwell Center is re-opened and the normal congregate meal delivery and service is restored, the congregate meals will be provided at the same price as the home-bound meals.
Fiscal/Budgetary Impact:
The Senior Meals Program is included in the FY 2017-2018 Budget for Senior Services (Account Number 10-415-4303, Operational Supplies).
Recommended action:
Renew the contract with KHSS Ventures,...
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