Title
Consideration of and action on renewing the contract with KHSS Ventures, Inc. (DBA Skillet’s Restaurant) for the Senior Meals Program.
Body
Summary:
On June 28, 2016, the City entered into a contract with KHSS Ventures, Inc. (Skillet’s Restaurant) to provide congregate and home-bound meals for senior citizens through the Maxwell Center. This contract was for one-year with the option to renew up to three additional years for a total of four years. The current contract expires on July 31, 2019. This year represents the last renewal option on the current contract, and at this time, both the City and Skillet’s Restaurant are agreeable to a 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 6 percent (6%) increase for the meals as shown below:
The cost per meal in 2018 was as follows:
Home-bound meals = 100 meals* @ $5.65/meal
Congregate meals = 40 meals @ $5.08/meal
The new cost per meal is as follows:
Home-bound meals = 100 meals* @ $5.99/meal ($0.34 increase/meal)
Congregate meals = 40 meals @ $5.39/meal ($0.31 increase/meal)
*Home-bound service 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).
Fiscal/Budgetary Impact:
The Senior Meals Program is included in the FY 2018-2019 budget for Senior Services (Account No. 010-415-4303, Operational Supplies).
Recommended action:
Renew the contract with KHSS Ventures, Inc. (DBA Skillet’s Restaurant) for the Senior Meals Program.