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HomeMy WebLinkAboutResolutions - 2009.03.05 - 9836March 5, 2009 REPORT MR # 09024 BY: Human Resources Committee, Sue Ann Douglas, Chairperson RE: Sheriffs Office — Contract Extension for Private Food Service Vendor through 2012 TO: Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Human Resources Committee having reviewed MR #09024 on February 25, 2009 Reports with the recommendation the resolution be adopted. Chairperson, on behalf of the Human Resources Committee, I move the acceptance of the foregoing Report, HUMAN RESOURCES COMMITTEE Human Resources Committee Vote: Motion carried unanimously on a roll call vote with Gingell absent February 5, 2009 MISCELLANEOUS RESOLUTION "9024 BY: Public Services Committee, Jeff Potter Chairperson IN RE: SHERIFF'S OFFICE - CONTRACT EXTENSION FOR PRIVATE FOOD SERVICE VENDOR THROUGH 2012 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 (RF1 3) to have a private company operate the loud seT vice 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 Miscellaneous Resolution #05304 extended this contract through August of 2009; and WHEREAS the budget task for 2010 and beyond for the Sheriff is a formidable one; and WHEREAS ARAMARK has offered to save the Sheriffs Office an estimated $270,000 per year if the County agrees to extend the contract for three (3) years; and WHEREAS ARAMARK has agreed to maintain the current price per meal effective on August 19, 2008 and to hold that price till August 19, 2009 and to cap the increase for second year at CPI or 3%, and CPI or 5% for the third year; and WHEREAS ARAMARK will assume the operations of the Commissary for the Sheriff, which has been an in house operation for over 30 years; and WHEREAS ARAMARK will continue to fund two (2) Library Technicians and one (1) Account Clerk II position as the Commissary did; and WHEREAS ARAMARK will continue to fund an estimated $65,000 annually for indigent inmates and reimbursement to the county for inmate welfare items; and WHEREAS ARAMARK will make payments of $15,000 a month to the County as long as the eligible inmate population stays above 1,600 and should commissary revenues exceed $1.665,500 by 10% annually, ARAMARK would negotiate a higher percentage of revenue to the County. NOW THEREFORE BE IT RESOLVED that the Oakland County Boa7d of Commissioners approves the attached proposal with ARAMARK CORRECTIONAL SERVICES, INC., to extend the current professional services contract for three (3) years. BE IT FURTHER RESOLVED THAT the funding of the positions listed below he changed from Proprietary to General Fund/General Purpose effective March 14 ; 2039: Position Classification 4030205-05610 Library Technician I 4030205-06702 Jail Library Technician 4030201-06595 Account Clerk 11 BE IT FURTHER RESOLVED THAT the Positions in the Jail Commissary Unit (4030205) be deleted effective March 14, 2009 as follows: Position Classification 00825 Materials Management Clerk 05609 Materials Management Clerk 06600 Materials Management Clerk 0740'1 Commissary Supervisor 06599 Materials Management Clerk 05977 Office Assistant ! 05339 Student 05340 Student BE IT FURTHER RESOLVED THAT funding and continuation of positions to be contingent upon contract renewal and available funding. Chairperson, on behalf of the Public Services Committee: I move adoption of the foregoing resolution. PUBLIC SERV,CES COMMITTEE Public Services Committee Vote: Motion carried unanimously On a ell cal vete with Zack absent AFAMARK CORPOZATICN AN MARK STEVE MORROW Director of Business Development • Dale Cunuingharn, Business Manager Oakland County Sheriff's Office 1200 North Telegraph Road Pontiac, MI 48341 October 28, 2008 Inmate Commissary Program for the Sheriff's Office I County Jail Thank you for entertaining a commissary proposal from ARAMARK which is both beneficial to the Oakland County Sheriff's Department and the Oakland County Jail. ARAMARK's proposal to provide commissary service for the Oakland County Jail is based on a proven on-site traditional warehouse/distribution model which is typical in the industry. Company Profile Experience Providing Commissary Services ARAivIARK has over 35 years experience in correctional services and is the recognized industry leader: This unmatched expertise and experience will assure Oakland County Jail an excellent program by which we will meet the needs of the inmates, the facility, and the County. Depth of Corporate Support to On-Site Staff • ARAMARK Correctional Services' Management Team is comprised of top professional managers will provide the on-going support necessary to manage the operation. • An on-site General Manager, a Michigan-based District Manager and a Regional Commissary Manager are assigned to oversee and support our proposed operation. ARAMARK's commissary operation will relieve the correctional officers, jail administrative personnel, and the support staff from handling commissary orders and deliveries. Our Proposal As the food service partner for the County Sheriff's Office for the past eight years, we are very accustomed to the service expectations of the facility. Our goal is to expand our current service model to include the commissary operations, eliminate correctional officer involvement and increase inmate satisfaction. ARAMARK is committed to providing inmates with a retail focused commissary program designed to offer offenders choices and promotional opportunities analogous to those on the outside. • This will be accomplished with no additional work load for the administrative or correctional staff at Oakland County. )- Our Fresh Favorites Program can improve inmate and officer morale by enhancing inmate choices and providing a meaningful tool for behavior control. 2300 Warrenville Road Doymcrs Gvove, IL 60515 317-219-5363 (Office) 203-910-0145 (CcII) ; An-ARK Coaaeaknom Page 2 of 3 • Creative commissary product offerings, including promotional opportunities for holidays and special events such as the World Series, Super Bowl, etc. with facility approval. 9 Expansion of service to include approved family care packages and holiday packages offered through our web-based "i-Care" program. "i-Care" is supported by proprietary technology which assures that prior to placement of an order by the family, the inmate is still incarcerated in the facility, > Implementation of Touchpay; An on-site and web-based system utilized by friends and family to place money on the inmates' books. Further, this service can eliminate the need for a County staffed cash intake window. > ARAMARK would like to discuss these options further with the County. Proposed Prorram Overview (ARAMARK) > ARAMARK will provide commissary services to all eligible inmates under the control of the Oakland County Sheriff on a weekly basis at a minimum. • ARAMARK will work closely with the County to determine the best possible order/delivery schedule. > AFtAMARK will utilize the existing commissary warehouse space to operate its pick and pack operation. The inmate workforce used in this capacity today will remain and be supervised by ARAMARK's staff. ARAMARK staff will deliver commissary orders to the inmates and obtain inmate signatures upon comp:etien of the orders. . • ARATVIARK will purchase, own, and inventory all products necessary to fill an approved commissary menu. Our proposed inmate menu and pricing is attached, With facility approval, prices are subject to periodic changes tied to local convenience pricing and market conditions. 9 The ARAMARK Commissary Manager will implement an additional "make-up" day as best determined by the administration as a service to the County inmates. Proposed Pro pram Overview (Oakland County) > The County will amend the existing Food Service Agreement extending the term from August 2009 for an additional three (3) years through August 2012. • The County will amend the existing contract with ARAMARK Correctional Services, LLC, to include the addition of Inmate Commissary Services through August 2012. • ARAtVIARK will waive its right to a 4.2% price per meal increase due to take effect August 20, 200E. • ARAMARK's remaining financial obligation of up to $33,400.20 for kitchen equipment will be waived by the County. > ARAMARK's August 2009 price per meal increase will be based on a Market Basket CPI or standard CPI capped at 3%. The August 2010 Market Basket CPI or CPI increase will be capped at 5%. The August 2011 price increase will be based en the Market Basket CPI or the CPI. 9- The County will allow ARAMARK to remove "solid muscle chicken leg/thigh" from the current menu with a replacement that is mutually agreeable. 9 The County will allow ARAMARK to implement its Fresh Favorites program within 60 days of ARAMARK assuming commissary services. : AMMAR.: CORPORATION Page 3 0f3 Connnjsszrp Financial Pro- °sal ARAMARK Correctional Service, LLC will provide the following return to the County*: — Funding for two (2) Library Technicians & one (1) $195,000 Fixed annual payment with an annual Accounting Clerk. increase of 2% annually Oakland County commissary employees: The three Material Management Clerks working in (Materials Management Clerks) the Commissary Operations for the County today will be considered for the Commissary Supervisor position with ARAIvIARK, should they express an — interest indigent orders delivered to the inmates as needed. ARAMARK. will expend approximately $65,000 annually for indigent kits and reimbursement to the County for inmate welfare items. These items will _ a not exceed a total of $75,000 per annum combined. Oil-site warehouse space utilization. ARAMARK will make a "revenue sharing" payment of $15,000 a month as long as the eligible population stays above 1,600.1f the eligible inmate population falls below 1,600 for 30 days, the parties agree to renegotiate in good faith. Additionally, ARAMARK has based this return and the other reimbursements to the County on revenues from traditional inmate commissary services of $1,665,500 annually. ARAMARK is . willing to negotiate in good faith a higher fixed annual payment should the revenues exceed that number by 10%. *The financial commitments represented in this commissary proposal, and resulting agreement, are based on an eligible inmate population of 1,750. Should the eligible inmate population drop below 1,600 for a 30 day period, the County agrees to renegotiate these commitments in good faith. Resolution #09024 February 5, 2009 The Chairperson referred the resolution to the Human Resources Committee and the Finance Committee. There were no objections. FISCAL NOTE (M.R. #09024: March 5, 2009 BY: FINANCE COMMITTEE, TOM MIDD:XTON, CHA:RPERSON IN RE: SHERIFF'S OFFICE - CONTRACT EXTENSION FOR PRIVATE FOOD SERVICE VENDOR THROUGH 2012 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. Resclution authorizes a three year extension of contract with ARAMARK Correctional Services to operate the Commissary for the Sheriff's Department and close out the Jail Commissary Fond. 2. The terms of the contract are extended through August 29, 2012 with proposed savings to the Sheriff's Office of $270,300 per year. 3. Funding for this action is made available by closing out the Jail Commissary Fund, deleting eight (8) positions (ff's 00825, 05609, 06600, 07041, 06599, 05977, 05339, and 05340) and transferring three positions (#'s 05610, 06702, and 06599) from the Jail Commissary Fund to the Sheriff's General Fend/General Purpose budget. 4. This action becomes effective March 14, 2009, at which point the FY 2039 and 2010 Jail Commissary Fund budget will be reduced to zero; and vehicle =Ler 047080 (Savannah 2500 van: will be turned in to the Motor Pool for disposition. 5. The Sheriff's Office General Fund/Genera= Purpose budget will be amended to recognize monthly revenue sharing of $15,000 per month or $180,000 per year; plus a yearly fixed annual payment from ARAMARK of $195,CJO for position reimbursement revenues; and yearly revenue of $65,000 for Recovered Indigent Monies: the net yearly revenues and expenses are offset against the Sheriff Department's Budget Task in the amount of $195,650. 6. A budget amendment is recommended for FY 2009 and FY 2010 budgets as follows: FY 2009 FY 2010 Jail Commissary Fund 459600 Revenues 4030201-112650 -631253 Miscellaneous (16,000) ($32,000) 4030201-112650-631715 Recov Indigent Mon (8,000) (16,000) 4030201-112650-632023 Sales (703,935) (1,408,097) Total Revenues .Le727,935) ($1,456,097) Expenditures 4030201-112650-702010 Salary ($167,913) 4030201-112650-722740 Fringe Benefits (85,175) 4030201-112650-730926 :ndirect Cost (16,223) 4030201-112650-731:01 Library Continuation( 7,500) 4030201-112650-731668 Sales Tax (]C,000) 4030201-112650-750252 Indigent Orders (13,000) 4030201-112650-750266 Inmate Rec Supplies ( 6,000) 4030201-112650-750385 Merchandise (380,000) FINANCE COMMITTEE Ayes: Douglas, Long, Potter, Potts, Taub Nays: Woodward, Greimel Absent: Gingell, Zack, Coulter MOTION CARRIED ($335,825) (170,349) ( 32,446) ( 15,000) ( 20,00C) ( 26,000) ( 12,00C) (760,00C) 4030201-112650-730399 Office Supplies ( 2001 400) 4030201-112650-750448 Postage - Stand Mail( 1,500 ( 3,000) 4030201-112650-750462 Provisions ( 2,000) 1 4,000) 4030201-112650-774677 Insurance Fund ( 1,285) (. 2,570) 4030201-112650-775667 Mail Room ( 2,135) ( 4,497) 4030201-112650-775754 Maint Dept_Ohgs ( 2,000) ( 4,000) 4030201-112650-776659 Motor Pool Fuel Chc( 526) ( 1,052) 4030201-112650-776661 Motor 2ool ( 2,597) 1 5,194) 4030201-112650-980003 Change Fund Equity ( 5,881) ( 59,764) Total Expenses ;727,935) ($1,456,097) GENERAL FUND #10100 Revenues 4030201-112650-631827 Reimburse General $90,000 4030201-112650-631715 Recovered Indigent 32,500 4030101-112650-631869 Reimburse Salaries 97,500 Total General Fund Revenue $220,000 Expenditures 4030201-112650-702010 Salary $57,17 4 4030201-112650-722740 Fringe Benefits 32,302 4030201-11265C-731101 Library Continuat. 7,500 4030201-112650-750252 Indigent Orders 15,000 4030201-112650-750266 Inmate Rec. Supplies 7,500 4030201-112650-750448 Postage Stand. Mail 2,500 4030101-112650-740023 Budget Transition 97,824 Total General Fund Expenditures $220,000 _$180,000 65,000 195,000 $440,000 $114,747 64,603 15,000 30,000 15,000 5,00C 195,650 $440,00C FINTiNCE COMMITTEE I Resolution #09024 March 5, 2009 Moved by Potter supported by Jacobsen the resolution (with fiscal note attached) be adopted. Moved by Potter supported by Jacobsen the Human Resources Committee Report be accepted. A sufficient majority having voted in favor, the report was accepted. Vote on resolution: AYES: Jackson, Jacobsen, Long, McGillivray, Middleton, Potter, Potts, Runestad, Scott, Bullard, Burns, Capelio, Coulter, Douglas, Gingell, Gosselin, Hatchet (17) NAYS: Nash, Schwartz, Woodward, Zack, Gershenson, Greimel. (6) A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, Clerk of the County of Oakland, do hereby certsfy that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on March 5, 2009, 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 5th day of March, 2009. Gat Ruth Johnson, County Clerk