ADMINISTRATIVE REPORT
Date: September 6, 1995
Division File D837-N33
TO: Vancouver City Council
FROM: Manager of Non-Market Housing
SUBJECT: Food Services Contract, Evelyne Saller Centre
CONSIDERATION
A. THAT City Council authorize negotiation of a five year
contract with Versa Services with terms and conditions
satisfactory to the Director of Legal Services.
OR
B. THAT City Council authorize formal notice be given to Versa
Services to terminate the current contract and, in
consultation with the Manager of Purchasing Services, go to
proposal call for selection of a contractor and report back
to Council.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services notes that Versa
Services is providing satisfactory food service at the Evelyne
Saller Centre, as well as at Cordova House and Taylor Manor. Its
charges are competitive and Versa has kept the cost of food at
1991 levels without compromising quality. The service was last
tendered in 1991 and market conditions have not changed
appreciably in that time. There are costs associated with a
proposal call to the City, as well as to the bidders. There
would be an undesirable disruption to employees should a
different contractor be hired. Negotiation with Versa is
acceptable to the Province which funds this service, and would be
preferred by Evelyne Saller management.
Accordingly, I RECOMMEND approval of "A".
COUNCIL POLICY
The policy of Council is to award contracts for the purchase of
equipment, supplies and services that will give the highest value
based on quality, service and price, except where an allowance of a
maximum of 5% is given to those bidders whose tender reflects local
content. Contracts with a value over $200,000 are referred to Council
for award.
PURPOSE
The purpose of this report is to seek Council's direction in extending
the current food service contract with Versa Services or calling for
proposals.
BACKGROUND
The Evelyne Saller Centre is a community resource centre located at
320 Alexander Street in the downtown eastside of Vancouver.
The Centre is operated by the City of Vancouver under shared
provincial, federal and City funding agreements. The cafeteria
operation is 100% funded by the provincial government (Ministry of
Social Services). There is no direct cost to the City for the food
service operation. Currently the Centre's cafeteria averages 1,094
meals per day, the 1995 food service budget is $1,101,435.00, and the
profit to Versa is 2% or $22,100.00.
Versa Services has managed the food services at the Evelyne Saller
Centre since September, 1990. In 1990, a Request for Proposal was put
out for food services, and an evaluation was done with the objective
of providing a good, high volume food service at a reasonable cost.
Versa was selected as the company which had the most extensive
experience in the health field, and which would provide the best food
service for an institutional food operation requiring large volume
production. The province accepted the City's recommendation.
In the 5 years since Versa Services began operations, a number of
initiatives have been jointly undertaken by Versa and the Centre.
1. A continuous quality improvement program has been implemented
with audits being done regularly, checking such items as food
temperature, sanitation, occupational health, and menu planning.
2. Versa staff sit on the Centre's joint OH & S committee to ensure
uniformity in addressing health and safety issues in the Centre.
3. Versa has supported hiring personnel from the Downtown Eastside
where their skills and abilities meet qualifica-tions to work in
the food service industry.
4. Policies and procedures have been developed to ensure that all
staff perform to a standard and conduct themselves in an
appropriate manner. Policies and procedures developed by the
Centre to meet required standards of service are supported by
Versa management and staff.
5. Versa introduced and maintains Food Safe Level I certifi-cation
for its staff.
6. Versa has provided expert advice to the Centre in develop-ing the
kitchen equipment replacement program which has enhanced food
preparation, and servicing. Over a five- year period, 12 large
equipment items have been acquired.
7. Versa has consistently been under budget for food opera-tions by
making cost-effective purchases from a network of food suppliers.
8. Menus have been routinely upgraded to supply a wide variety of
selections, as well as nutritious and hearty meals. A recent
Centre survey indicated client response to the cafeteria services
was positive.
Options for Evelyne Saller Centre
Two options are advanced for Council's consideration:
A. Negotiate the contract with Versa Services or
B. Issue a Request for Proposal.
With option A, the City would not go to proposal call but continue
with Versa Services, which has proven to be effective in providing a
high volume of meals to the Centre on a daily basis.
Food costs, excluding labour, have remained stable for the past five
years.
Versa Services, management and staff, has worked well with the
Centre's management in serving a difficult clientele by co-operating
in the implementation of fair policies and practices to support
disadvantaged people.
Versa Services has responded positively to requests for changes that
improve the meal service to clients. Versa will even cater to a home-
bound client with special needs. Versa also provides frequent
supervisory inspections and consultation to the management of the
Evelyne Saller Centre.
The Ministry of Social Services which funds 100% of the Centre's meal
service operations supports negotiation of the contract with Versa
Services.
With option B, Council would be authorizing notice to terminate the
current contract with Versa Services and go to proposal call. Versa
Services would, in turn, notify their employees of possible layoffs
and or transfers, where qualification and seniority permits.
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