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David Lewis, Director of Parks and Recreation, noted that the staff report will be presented by John Lawrence, Recreation Superintendent, and Tricia Lord, Recreation Supervisor.
Vice Mayor Swegles asked about Culinary Magic Catering’s willingness to share the kitchen with other users.
Supervisor Lord replied that this subject was addressed in the Request for Proposals and that Culinary Magic Catering indicated that they would not have a problem sharing the kitchen with other users; however, they would have exclusive use of the kitchen Mondays through Fridays from 6:30 a.m. to 2:30 p.m. while senior lunches were being prepared and served.
Vice Mayor Swegles, noting that Culinary Magic Catering would be using the facility for their other catering customers, with some potential revenue for the City, asked about potential conflicts with these events and City-Sponsored events, such as cooking classes.
Superintendent Lawrence replied that potentially, conflicts could present themselves, but that the kitchen can accommodate more than one event at a time, but that prioritization of these events would be clearly defined in their contract with the City.
Vice Mayor Swegles asked about the current participation in cooking classes.
Supervisor Lord replied that there is now one class for Chinese cooking which has 12 students.
Vice Mayor Swegles asked for clarification of the $60 Daily Labor Fee.
Superintendent Lawrence replied that it is a fee that is charged for each day senior meals are offered in addition to the per-meal charge.
Vice Mayor Swegles asked if the $10,000 utility cost is based on current or proposed rates.
Superintendent Lawrence replied that the $10,000 figure is an estimate based on current PG&E rates.
Vice Mayor Swegles asked for clarification that the City has to pay sales tax on the meals provided.
Superintendent Lawrence confirmed that the City now pays and is required to pay sales tax on the meals; he noted that there is no sales tax on the Daily Labor Fee.
Councilmember Hamilton asked where in the budget any surplus derived by the City from the provider’s catering business would be allocated.
Superintendent Lawrence replied that any such fund would probably be absorbed in other costs, such as overhead and staff time.
Councilmember Hamilton, noting that the cost of the meals by the proposed vendor is $2.50 each; she asked how the difference between $2.50 and the cost to the customers would be allocated.
Superintendent Lawrence replied that this would be applied to utility, printing, advertising, and staff costs.
Mayor Chu asked if the $10,000 utility cost estimate is the cost for the proposed vendor’s third-party catering business or does that include costs related to the senior lunch program.
Superintendent Lawrence replied that the $10,000 estimate is for additional utility costs that would be incurred for the catering activity in addition to the utility costs for the senior lunch program.
Mayor Chu opened the public hearing at 7:35 p.m.
Donevi Rupprecht expressed her support to have Culinary Magic Catering provide the senior lunch program, noting that the food offered by them as a test on September 16, 2005 was outstanding.
Discussion was held related to the quality and price of the current vendor as compared to that of the proposed vendor. It was determined that the proposed vendor would provide a higher quality product at a reasonable price.
Mayor Chu asked if there were any vendors in the audience who would like to comment. He suggested that they be heard at the end of the public hearing.
Robert Harms, Senior Center Volunteer, stated that he supports Culinary Magic Catering being the provider of the senior lunch program.
Dick Oliver, representing the Parks and Recreation Commission, stated that the Commission met in a special meeting on September 20, 2005 to consider the proposals submitted for provision of the senior lunch program. He noted that there were 25 members of the public in attendance at the meeting and that the input received on the sampling of food offered by Culinary Magic Catering, was very positive. He reported that the Commission unanimously recommends to the City Council that the City contract with Culinary Magic Catering to be the provider of the senior lunch program.
Marty Rawson stated that he supports Culinary Magic Catering being the provider of the senior lunch program and that he thinks $4 per meal is a good price.
Mayor Chu noted that $4 per meal is not what is being proposed.
Paul Werner noted the importance of senior lunch programs in that they encourage seniors to socialize while providing a nutritious meal. He stated that, in order to maximize participation, the program would have to consistently have high quality food and not cost more than $3 per meal. He noted that he now attends a federally sponsored senior lunch program at which the cost is $3 per meal and that some seniors who used to attend the Sunnyvale program are now attending the federally sponsored programs. He suggested that the price for the new program start at $3 for six months and at that time the price be increased to $3.50.
Ron Carpenter stated that he participated in the sample tasting provided by Culinary Magic Catering and supports their being selected as the provider for the senior lunch program.
Tim Risch stated that he believes senior lunch programs are important for both social and nutritional reasons and that he supports the senior lunch program being provided by Culinary Magic Catering.
Ann Cuny asked how the Sunnyvale Community Services $3 fee waivers will be accommodated.
Bob Heustes stated that he would like to be able to get a meal at the senior center on those occasions when he arrives late.
Vice Mayor Swegles asked if staff has done any calculations related to what effect a lower price would have on the proposed $23,789 fiscal imbalance.
Superintendent Lawrence stated that those calculations have not been done, but staff can provide those numbers.
City Manager Amy Chan noted that there is a gap of $650,000 in the Community Recreation Fund, so any increase in the program’s fiscal imbalance would increase the imbalance in the Fund as a whole.
It was stated that each $.50 reduction in meal cost would result in $10,500 being added to the fiscal imbalance.
Moved by Vice Mayor Swegles and seconded by Councilmember Miller that Council approve an agreement with Culinary Magic Catering to provide a service level of up to 21,000 meals, based on a maximum of 84 meals per day and a minimum of 25 meals per day, prepared onsite, with 85% customer satisfaction, at a cost to the city of $2.50 per meal, plus tax, a Daily Labor Fee of $60, and an Initial Participant Fee of $4.50 per meal; and to increase the fiscal imbalance of the Community Recreation Fund by an additional $23,789.
Director Lewis stated that Council was also being asked to extend the current agreement with Bateman Senior Meals for 30 days.
Mayor Chu confirmed with the maker and the second of the motion that they agreed to amend the motion to include approval of a 30-day extension of the City’s contract with Bateman Senior Meals.
Councilmember Miller made a friendly amendment to direct staff to negotiate with Culinary Magic Catering regarding their providing meals for the City Council Study Sessions.
Discussion was held and it was determined that this direction to staff could be given without it being included in the motion on the floor.
Councilmember Miller withdrew her friendly amendment.
Vice Mayor Swegles complimented staff on its success in finding a vendor to meet the City’s needs regarding the senior lunch program.
Councilmember Miller thanked staff and the seniors for the effort and patience it has taken to bring this matter to closure.
Councilmember Lee moved to amend the motion to include a requirement of a “minimum of an 85% satisfaction rating” rather than “an 85% satisfaction rating.” Amendment was accepted by the maker and second of the motion.
Councilmember Lee thanked staff for its efforts in securing the proposed vendor for the senior lunch program.
Councilmember Hamilton expressed her satisfaction with the proposed action.
Mayor Chu made a friendly amendment to increase the City’s subsidy of this program by $500, allowing the first 1,000 meals to be provided for $4 as a kickoff for the new program.
The friendly amendment was acceptable to the maker and second of the motion.
Councilmember Howe suggested that the subsidy continue to the end of this year, giving it a specific cutoff date.
The motion was amended to include a subsidy of $.50 per meal served by the new caterer through December 2005, with the price to the customer being $4.00 per meal. On January 1, 2006, the price to the customer would be $4.50.
Motion carried unanimously.
At 8:35 p.m., Mayor Chu announced that there would be a short recess.
The Council reconvened at 8:45 p.m.
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