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HomeMy WebLinkAboutResolutions - 2005.12.08 - 27823MISCELLANEOUS RESOLUTION #05 304 December 8, 2005 BY: Public Services Committee, Jeff Potter, Chairperson IN RE: SHERIFF'S OFFICE - CONTRACT EXTENSION FOR PRIVATE FOOD SERVICE VENDOR THROUGH 2009 To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Sheriff requested that the County Purchasing Division send out a Request for Proposal (RFP) to have a private company operate the food service operation within the Sheriffs Department; and WHEREAS proposals were received and evaluated, and the lowest bidder was approved as an acceptable vendor; and WHEREAS Corporation Counsel in conjunction with Purchasing and the Sheriffs Department, and per the direction of Miscellaneous Resolution #00163, contracted with ARAMARK CORRECTIONAL SERVICES, INC; and WHEREAS the contract was for three (3) years with a start date of August 19, 2000; and WHEREAS Miscellaneous Resolution #02025 extended this contract through August of 2006; and WHEREAS the Sheriffs Office kitchen is in need of some new equipment; and WHEREAS ARAMARK has offered to put a capital investment into equipment if the County agrees to extend the contract for three (3) years; and WHEREAS ARAMARK has agreed to reduce the price per meal effective immediately to $ .86 per meal from the current price of $ .924 which in itself is a savings of $145,000 per year; and WHEREAS under M.R. #02025 the equipment ended up costing $141,589.61, and ARAMARK's commitment was for $100,000, and ARAMARK has agreed to waive the $41,589.61 if we extend this contract for three (3) years; and WHEREAS Corporation Counsel, in conjunction with the Sheriff and Management and Budget, has drafted a proposed extension for three (3) years to include the capital investment by ARAMARK, the elimination of the $41,589.61 and the reduction in the price per meal to $.86. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached contract amendment with ARAMARK CORRECTIONAL SERVICES, INC., to extend the current professional services contract for three (3) years. Chairperson, on behalf of the Public Services Committee, I move adoption of the foregoing resolution. PUBLIC SERVICES COMMITTEE Public Services Committee Vote: Motion carried on a roll call vote with Gregory absent. irOAKLAND,_ COUNTY L. BROOKS PATTERSON-COUNTY EXECUTIVE OAKLAND COUNTY PURCHASING DIVISION SHERIFF AMENDMENT AND CHANGE ORDER OF CONTRACT NUMBER #B0200137 AMENDMENT #9 AMENDMENT DATE DRAFT This AMENDMENT OF CONTRACT NUMBER # B0200137 (hereafter "Amendment") is made and entered into by and between ARAMARK CORRECTIONAL SERVICES, INC. named and identified below, (hereafter "ARAMARK") and the COUNTY OF OAKLAND, whose address is 1200 N. Telegraph Road, Pontiac, MI 48341-0462 (hereafter the "County"). CONTRACTOR ADDRESS ARMARK CORRECTIONAL SERVICES, INC. 1101 MARKET STREET, 27TH FLOOR (hereafter "ARAMARK" PHILADELPHIA PA 19107 The County and ARAMARK agree and acknowledge that the purpose of this Amendment is to modify as provided herein and otherwise continue the present contractual relationship between the Parties as described in their current Contract (the "Contract") with the same Contract Number as above. In consideration of the extension of the mutual promises, representations, assurances, agreements, and provisions in the Contract and this Amendment, the adequacy of which is hereby acknowledged by the Parties, the County and ARAMARK hereby agree to amend the current Contract as follows: ARAMARK and the County agree that any and all defined words or phrases in the current Contract between the Parties will apply equally to and throughout this Amendment. 1. The Parties agree that any and all other terms and conditions set forth in the current Contract between the Parties shall remain in full force and effect and shall not be modified, excepted, diminished, or otherwise changed or altered by this Amendment except as otherwise expressly provided for in this Amendment. 2. Description of Change: • Section 5.1 of the Original Agreement, deleted in its entirety by Amendment #3, and is hereby deleted in its entirety by Amendment #9 and replaced with the following language: This agreement and operations under this Agreement shall continue to August 19, 2009. • Effective the date of this Amendment the per meal pricing shall be: $0.860. Except as provided in the Agreement, such prices may not be increased or decreased until August 20, 2007. Unit prices per meal shall be determined and may be increased or decreased by ARAMARK after August 19, 2007. Such redetermination and increase or decrease may occur once a year thereafter on or about August 19 until this Agreement is terminated and/or cancelled. In no case shall the annual redetermination and increase or decrease in the unit price per meal be more or less than the Consumer Price Index for All Urban Consumers- All U.S. Cities (CPI-U) as published by the United States Department of Labor, Bureau of Labor Statistics or reasonable equivalent index, if such index is 30200137 ARAMARK CHANGE ORDER.DOC CONTRACT AMENDMENT OF CONTRACT NUMBER B0200137 Page 1 discontinued. • Attachment A of the Original Agreement is hereby deleted in its entirety by Amendment #9. • ARAMARK shall purchase the following equipment for the kitchen preparation facilities at the FACILITY: Four TopMount Mobile Universal Servers (Model UHST-10D HO) for $14,000 (estimated), replacement of the existing tray line with a new tray line, specs to be determined at a later date based upon need, for $35,000 (estimated) and replacement of various kitchen equipment for $11,000 (estimated). ARAMARK shall be responsible for all expenditures and risk associated with purchasing, transporting, and installing such equipment at the FACILITY up to $60,000. Any expenditure over $60,000 shall be invoiced to Oakland County Sheriff's Office upon installation. Upon installation and operations of the equipment, ARAMARK shall depreciate such equipment over a period of thirty-six (36) months, on a straight-line basis. ARAMARK shall not depreciate any equipment and/or expenditures, which are invoiced to the County. The COUNTY shall be responsible for all costs associated with preventative maintenance and repairs of such equipment as provided in Section 7.1.2 and 7.1.3 of the Original Agreement. If the Contract between ARAMARK and the COUNTY is terminated and/or cancelled by either party, for any reason except for breach, the COUNTY shall reimburse ARAMARK for the undepreciated balance of the equipment, as of the termination and/or cancellation date. The COUNTY shall make reimbursement within thirty (30) days after the termination and/or cancellation date. All equipment purchased by ARAMARK shall be deemed owned by the COUNTY upon completion of the 36-month depreciation, or earlier if the COUNTY pays the undepreciated balance to ARAMARK. ARAMARK shall be responsible for all costs associated with the eequipment, until the equipment is deemed owned by the COUNTY, including, but not limited to, replacing the equipment if destroyed, except for preventative maintenance and repairs provided in Sections 7.1.2 and 7.1.3 of the Original Agreement. • ARAMARK shall absorb the balance over the $100,000 agreed upon in Amendment #3 for the purchase of kitchen equipment ($41,589.61). • ARAMARK shall absorb the business tax which equals approximately one cent per meal. • Section 8.7 of the Original Agreement is hereby deleted in its entirety by Amendment #9 and replaced with the following language: Food, beverage and other services required by the FACILITY outside the scope of this Agreement shall be provided by ARAMARK upon written authorization by the COUNTY Sheriff or his designee at no additional cost to the COUNTY for such services. CONTRACT AMENDMENT OF CONTRACT NUMBER B0200137 Page 2 DATE: DATE: For and in consideration of the mutual assurances, promises, acknowledgments, warrants, representations, and agreements set forth in the Contract and this Amendment, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the undersigned hereby execute this Amendment on behalf of the County, and ARAMARK and by doing so legally obligate and bind the County and ARAMARK to the terms and conditions of the Contract and this Amendment. FOR THE COUNTY OF OAKLAND: FOR THE CONTRACTOR BY: Joseph M. HyIla Oakland County Purchasing By: ARAMARK CORRECTIONAL SERVICES, INC. drf B0200137 ARAMARK CHANGE ORDER.DOC CONTRACT AMENDMENT OF CONTRACT NUMBER B0200137 Page 3 FISCAL NOTE (MISC. #05304) December 8, 2005 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: SHERIFF'S OFFICE - CONTRACT EXTENSION FOR PRIVATE FOOD SERVICE VENDOR THROUGH 2009 TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. Aramark Correctional Services Inc. currently has a three (3) year contract with the Sheriff's Office to provide food services. The current contract expires in August 2006. The Sheriff is requesting to extend the contract until August 2009. 2. The Sheriff's Office kitchen is in need of new equipment, which is estimated at a replacement cost of $60,000. 3. Aramark Correctional Service, Inc. is agreeing to purchase and install the $60,000 worth of equipment and forgive $41,589.61 in billable charges to the Sheriff's Office for equipment purchased in FY 2002. 4. The contract reduces the per meal cost from $0.924 to $0.860. The 6.4% reduction in cost will save an estimated $151,366 annually based on the number of meals served in FY 2005. This savings is partially offset by a projected increase in the number of meals served. 5. A budget amendment to the FY 2006 and FY 2007 budget is recommended as follows: FY 2006 FY 2007 GENERAL FUND #10100 Expenditures 4030301-112650-730373 Contracted Services 9090101-196030-730359 Contingency ($ 18,041) ($ 78,041) $ 18,041 $ 78,041 0 $ 0 FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Melton and Woodward absent. /2-7/3/6 C-- Resolution #05304 December 8, 2005 Moved by Gregory supported by Douglas the resolutions on the Consent Agenda, as amended, be adopted (with accompanying reports being accepted). AYES: Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Woodward, Zack, Bullard, Coulter. (22) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions on the Consent Agenda, as amended, were adopted (with accompanying reports being accepted). I HEREBY APPRO$THE JDOEGOING RESOLUTION STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 8, 2005, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 8th day of December, 2005. Ruth Johnson, County Clerk