HomeMy WebLinkAboutIR 8675INFORMAL REPORT TO CITY COUNCIL MEMBERS
draft. To the Mayor and Members of the City Council
,,,, SUBJECT: FOOD SERVICE SUBSIDY
No. 8675
April 5, 2005
Page 1 of 1
The purpose of this report is to provide information to the City Council concerning a subsidy for
food service at City Hall. The food service vendor is sustaining losses and has served notice
that unless the losses are offset, the contract will be terminated. In recent months, efforts have
been made by the vendor to decrease costs associated with operating the program. So far, these
efforts have not put the operation in a profitable position.
In 1971 the City contracted with the State Commission for the Blind to provide food services at
City Hall. Since that time, the cafeteria has been managed by several different operators (large
corporations and small business owners). Past contractors reported financial losses, and several
vendors terminated food service contracts with the City due to the losses.
The City issued a Request for Proposal for food service in January 2003. A committee of City
staff evaluated and ranked the proposers. Vanguard Resources was awarded the food service
contract. As a part of the contract with Vanguard Resources, the City maintains all equipment,
furniture and permanent fixtures.
In August 2003, the City Council approved an appropriation of $35,000 from available revenue in
the Special Trust Fund to replace some of the outdated equipment and purchase furnishings to
update the appearance of the cafeteria. In June 2004, Council approved an additional
appropriation of $14,000 for routine monthly expenses (M &C G- 14373).
A survey was conducted among City employees located in the City Hall complex to measure
satisfaction and perceptions related to food service at City Hall. Approximately 430 survey
responses were received, and overall, employees' opinions were favorable toward the food
service. Responses indicated that the food prices are competitive, the food is a good value for
the dollar, and the food service employees are friendly and courteous.
During the FY04 /05 budget process an improvement package for a food service subsidy of
$40,000.00 was requested; however not funded. In order to maintain the current level of food
services to City employees, City Hall visitors and the Wellness program, the food service
operation will be provided an additional $19,000 from available funds to subsidize food service for
Fiscal Year 04/05. The funds will be used to subsidize the vendor's costs and to cover routine
expenses currently absorbed by the City. Additional funds may be required as we explore
options to continue these services.
Unless there are any objections staff will proceed to amend the contract with Vanguard
Resources to implement the subsidy.
OL�,
Charles R. Boswell,;
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS