Title
MOTION TO APPROVE THE DEPARTMENT RECOMMENDATIONS FOR THE FOLLOWING ITEMS LISTED ON THE CONTRACTS DATABASE REPORT:
(A) Children’s Services Council of Broward County - Maximizing Out-of-School Time (MOST) - Renewal
(B) Compass Group USA, Inc. - Food Service Management Company ED-23-01 - Renewal
(C) Safeguard Services, Inc. - Janitorial Services - Various Public Service Buildings - Renewal
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Pursuant to Section 35.29(F) "City Commission notification" of the City's Code of Ordinances, "The City Manager, or his or her designee, shall notify the Commission, in writing, at least three months in advance of the expiration, renewal, automatic renewal or extension date, and shall provide a copy of the contract or agreement and a vendor performance report card for the contract or agreement to the City Commission."
2. On May 17, 2017, Commission approved the motion to place all contracts from the Contract Database Reports on consent agendas as they come up for contractual term renewal so that City Commission affirms directions to administration whether to renew or to go out to bid.
3. The Agreements shown below are listed on the Contracts Database Reports for renewal.
(A) Children’s Services Council of Broward County - Maximizing Out-of-School Time (MOST) - Renewal [Recreation & Cultural Arts Department]
1. Following approval by the City Commission on April 4th, 2023, the City entered into an Agreement with the Children’s Services Council (CSC) of Broward County for an initial four (4) month period, commencing on May 1st, 2023, and expiring August 31st, 2023.
2. The Children’s Services Council of Broward County offers the Maximizing Out-of-School Time (MOST) Special Needs Summer Programming Grant to provide a structured program for children to improve and maintain skills through positive experiences encountered during the regular school day, as well as for them to improve language and reading skill development, physical functioning, social and adaptive behavioral functioning, and daily living skills. The target population is children, adolescents, and young adults ages six through twenty-two with special needs who have a physical, developmental, sensory, or learning disability.
3. Section 1 of the Agreement authorizes the renewal thereof for three (3), additional, three (3) month summer sessions, at the sole option of the CSC.
4. On February 5th, 2024, at the CSC’s Council Meeting, the Council approved the City of Pembroke Pines as a MOST Special Needs provider and renewal of the Agreement for the four (4) months from May 1st, 2024, to August 31st, 2024.
5. The Recreation and Cultural Arts Department recommends that the City Commission approve this first Renewal for the 2024 summer session commencing on May 1st, 2024, and expiring August 31st, 2024, as allowed by the Agreement.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Renewal Cost: The revenue amount from this grant is $154,092. All expenses are covered by the grant revenues. The match requirement is non-monetary in-kind services to be provided through staffing, space, and utilities.
b) Amount budgeted for this item in Account No: None. If approved a budget will be generated increasing revenues and expenditures to accommodate the grant and the program.
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5-year projection of the operational cost of the project: Not Applicable.
e) Detail of additional staff requirements: Summer staff will be required to operate the camp. All positions are funded through the MOST Grant
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable
(B) Compass Group USA, Inc. - Food Service Management Company ED-23-01 - Renewal
1. On June 26, 2023, the City entered into an Agreement with Compass Group USA, Inc. for an initial one (1) year period, which will expire on June 30, 2024.
2. Compass Group USA, Inc. provides nutritionally balanced meals to the City’s Charter Schools and Early Development Centers.
3. Section 3.2 of the Original Agreement authorizes renewal of the Original Agreement for four (4), additional, one (1) year renewal periods upon mutual consent, evidenced by written Amendments extending the term thereof.
4. In addition, Section 3.2 of the agreement states that the fixed rates and fees in subsequent years of the contract must not exceed the increase in the Consumer Price Index for Urban Consumers (“CPI”) - Food Away From Home from the then current rate to the annualized rate for the most recent month of December.
5. The change in CPI was 5.2% and as a result, Compass Group USA, Inc. provided a written analysis addressing the need for the increase, which was approved by the Charter School Administrative Support Office.
6. The City of Pembroke Pines Charter Schools and the Early Development Centers recommend that the City Commission approve this First Amendment to increase the fees by 5.2% during the one (1) year renewal period commencing on July 1, 2024, and expiring on June 30, 2025, as allowed by the Agreement.
FINANCIAL IMPACT DETAIL:
a) Renewal Cost: The total estimated annual cost is $3,404,946.44 based on the projected meal equivalents for Charter School's 2024-25 FY. Please note that the total meal equivalents may fluctuate each year due to various factors, including student participation, Hurricane Days, enrollment, etc.
b) Amount budgeted for this item in Account No (FY 2024-25 proposed budget):
Charter School Site Account Coding Amount
East Elementary 170-569-5051-531310-7600-310-0000-00550 $413,824.51
West Elementary 170-569-5051-531310-7600-310-0000-00551 $291,603.95
Central Elementary 170-569-5051-531310-7600-310-0000-00552 $328,174.84
West Middle 171-569-5052-531310-7600-310-0000-00553 $368,936.85
Central Middle 171-569-5052-531310-7600-310-0000-00554 $473,776.80
Academic Village 172-569-5053-531310-7600-310-0000- $1,059,537.72
FSU Elementary 173-569-5061-531310-7600-310-0000- $405,730.64
Total $3,341,585.31
EDC Site Account Coding Amount
West EDC 001-569-5002-552701-0000-000-0000-00208 $29,597.44
Central EDC 001-569-5002-552701-0000-000-0000-00209 $33,763.69
Total $63,361.13
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 1-year projection of the operational cost of the project: In regard to the Charter Schools, the Contract with Chartwells to provide food service is directly related to the revenue the City receives from the Federal Government for the National School Lunch Program. The revenues and the expenditures are all based on a "per meal" basis. Below is the total operational cost for the food service inclusive of overhead operating expenditures. The net result is a net deficit of $346,078.75. This is due to two factors. First, the City will continue to offer free breakfast for all students in FY 24-25. Secondly, meal prices for students have not increased since FY 19-20. Both measures were taken to utilize the accumulated surplus of funds in the food service fund balance that has exceeded the maximum allowed by NSLP governance. Therefore, the net deficit will be covered by surplus funds carried over from prior school years. The total expenditure below, of $3,341,585, is inclusive of the estimated cost of the Chartwells contract and represents the renewal period of the contract.
In regard to the Early Development Centers, the Contract with Chartwells to provide food service is directly related to the revenue the City receives from parents, based on a "per meal” basis. The net revenue of $7,970.87 is used to offset other operating expenses, such as snacks for students/campers.
School FY 2024-25
Charter Schools EDC’s Total
Revenues $2,995,506.56 $71,332.00 $3,066,838.56
Expenditures ($3,341,585.31) ($63,361.13) ($3,404,946.44)
Net Cost/Revenue ($346,078.75) $7,970.87 ($338,107.88)
Please also note that the total meal equivalents may fluctuate each year due to various factors including student participation, hurricane days, enrollment, etc.
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable
(C) Safeguard Services, Inc. - Janitorial Services - Various Public Service Buildings - Renewal
1. On June 13, 2018, the City entered into an Agreement with Safeguard Services, Inc. for the provision of janitorial services for various Public Services Buildings, for an initial three (3) year period, which expired on May 31, 2021 for a total annual amount not to exceed $117,684.00.
2. Section 3.2 of the Original Agreement allows for two (2) additional three (3) year renewal terms upon mutual consent, evidenced by a written Amendment.
3. On March 14, 2019, the Parties executed the First Amendment to the Original Agreement to update the Scope of Work, removing the Support Staff Office and adding additional services at the Wastewater Treatment Plant for a total annual amount not to exceed $106,980.00.
4. On February 3, 2021, the Parties executed the Second Amendment to the Original Agreement, as amended, to include additional sanitation services on as needed basis for a total annual amount not to exceed $138,996, which includes an annual contingency amount equal to $32,016.00, and to revise and to renew the term for an additional three (3) year period, which expires on May 31, 2024.
5. On August 17, 2021, the Parties executed the Third Amendment to the Original Agreement, as amended, to revise the scope of services and to update the compensation values for a total annual amount not to exceed $138,996, which includes an annual contingency amount equal to $21,376.00.
6. The Public Services Department is requesting to amend the scope of work to have a total annual amount not to exceed $135,996.80, which includes an annual contingency amount equal to $17,000.00, by:
- Reducing the contract by $3,200 for the elimination of Electrostatic Spraying
- Reducing the contingency by $4,376 for a revised contingency of $17,000
- Increasing the contract by $4,576.80 for a 4% increase to the remaining items
7. In addition, the Public Services Department is requesting that on June 1, 2025, and on June 1st for each year thereafter for the entire term of the agreement, the annual fee shall be automatically adjusted according to the annual Consumers Price Index - (CPI/U) Miami-Ft. Lauderdale, FL Area for the month of November or 4%, whichever is less but not less than zero.
8. The Public Services Department recommends that the City Commission approve this Fourth Amendment to modify the scope of services to exclude the electrostatic spraying, to increase the annual compensation by 4% for an annual amount not to exceed $135,996.80, and to renew the term for an additional three (3) year period, which shall commence on June 1, 2024, and naturally expire on May 31, 2027, with automatic annual increases based on CPI and not to exceed 4%.
FINANCIAL IMPACT DETAIL:
a) Annual Renewal Cost: $135,996.80
b) Amount budgeted for this item in Account No: Funds are available in the following account numbers:
Public Services Main Office -Health Park =$20,725.57
Account # 471-536-6010-534950-0000-000-0000- (Other Svc - Maintenance) $10,362.79
Account # 001-519-6001-534950-0000-000-0000- (Other Svc - Maintenance) $10,362.79
Trades Meeting Room - Health Park = $8,627.49
Account # 001-519-6001-534950-0000-000-0000- (Other Svc - Maintenance) $4,313.74
Account # 001-539-6004-534950-0000-000-0000- (Other Svc - Maintenance) $4,313.74
Control Building - Water Plant = $4,279.68
Account # 471-533-6031-534950-0000-000-0000- (Other Svc - Maintenance) $4,279.68
Wastewater Main Office - Wastewater Plant = $7,893.71
Account # 471-535-6022-534950-0000-000-0000- (Other Svc - Maintenance) $7,893.71
Maintenance shop WTP Second Office (13975 Pembroke Road) = $3,805.82
Account # 471-533-6031-534950-0000-000-0000- (Other Svc - Maintenance) $3,805.82
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 4 Year projection of the operational cost of the project:
Current FY24 Year 2 FY25 Year 3 FY26 Year 4 FY27
Revenues $.00 $.00 $.00 $.00
Expenditures $45,332.27 $137,810.09 $143,322.49 $98,062.76
Net Cost $45,332.27 $137,810.09 $143,322.49 $98,062.76
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Yes
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Estimated annual savings of $145,218. See attached for further details.