DATE: July 18, 2023
TO: Board of Supervisors
SUBMITTED BY: John Zanoni, Sheriff-Coroner-Public Administrator
SUBJECT: Amendment I to Agreement with Trinity Services Group,
Inc.
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute the First Amendment to Agreement 21-504 with Trinity Services Group, Inc. for meal services for the Sheriff-Coroner-Public Administrator’s Office and Probation Department detention facilities, which will raise the annual price per meal cap in exchange for additional enhanced meals at Sheriff’s Office Jail facilities, effective upon execution with no change to the term of January 1, 2022 through December 31, 2026, and increasing the maximum by $3,608,641 to a total of $46,225,642.
REPORT
There is no additional Net County Cost associated with the recommended action. The recommended amendment would allow for Trinity Services Group, Inc. (Trinity) to offset costs associated with rising food, transportation, and wage costs. In exchange for raising the cap on annual increases to the price per meal in the Agreement, for meals provided to the Jail facilities, Trinity has agreed to provide additional enhanced holiday meals to Jail inmates, as well as enhanced quarterly catering meals to staff at the Jail facilities. The cap on annual increases to the price per meal for services provided at the Juvenile Justice Campus will remain unchanged. As part of negotiations and based on volume for the Juvenile Justice Campus needs, with an average daily population of under 100 youth vs. 2,800 adults at the jail, Trinity has proposed not to increase meal rate above the current pricing that was approved in January of the current agreement. The adjustments to offset the costs will be in line with the National Consumer Price Index (CPI) or will be negotiated by both parties, but will not exceed 9% in a calendar year.
ALTERNATIVE ACTION(S):
Your Board may choose not to approve the recommended amendment to the agreement. However, the vendor would be unable to offset the increased meal costs, possibly resulting in having the County to rebid the detention facility food services agreement. There is no practical alternative under the circumstances, as the Sheriff’s Office and Probation believe there is no greater cost-effective alternative.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The Sheriff’s Office have sufficient appropriations included in their respective budgets (Sheriff-Coroner-Public Administrator Org 3111) for costs associated with increased meal costs.
The requested increase in the amount payable to Trinity is a 5% increase from current pricing (which had already been increased on January 1, 2023 by 4% in accordance with the Agreement) to offset the increased costs associated with purchasing food items needed for preparing meals for County detention facilities. Sufficient appropriations will be included in future recommended budgets.
The following illustrates the estimated costs for the term of the agreement with Trinity:
• Year 1 CY 2022 $ 7,868,254
• Year 2 CY 2023 $ 8,387,558
(6 months at 4% increase as allowed by current agreement
plus 6 months at an additional 5%)
• Year 3 CY 2024 $ 9,142,439 (9% Max)
• Year 4 CY 2025 $ 9,965,259 (9% Max)
• Year 5 CY 2026 $10,862,132 (9% Max)
Total $42,617,745
It should be noted, for the FY 2023-24 budget request, the increase will be approximately $628,000 and sufficient appropriations and estimated revenues to cover this increase will be included in the budget request.
DISCUSSION:
On December 14, 2021, your Board approved the existing agreement with Trinity Services Group, Inc. to provide meal services for the Sheriff’ Office and Probation Department detention facilities.
Approval of the recommended amendment would allow Trinity Services Group, Inc. to request a meal service pricing adjustment of up to 9% per year (5% for 2023, as the rates have already been increased by 4% in accordance with the Agreement) to offset increased food costs.
The current agreement for food services with Trinity includes Fresno County’s Probation department and the Sheriff’s Office. The recommended action will only impact the Sheriff’s Office Jail facilities.
The recommended increase will allow Trinity Services Group, Inc. to request an increase in meals cost in line with the CPI or as negotiated by both parties, but the rate increase will not exceed 9% in a calendar year. If Trinity and the Sheriff’s Office cannot agree on a rate increase between the CPI and 9%, the Agreement provides that the lesser of the two (CPI or 9%) will apply.
In exchange for raising the cap on annual increases to meal prices in the Agreement for meals provided to the Jail facilities, Trinity has agreed to provide additional enhanced holiday meals to Jail inmates, as well as enhanced quarterly catering meals to staff at the Jail facilities. The annual increase to meal prices cap for meals provided at the Juvenile Justice Campus will remain unchanged from a maximum of CPI or 4% per year.
As part of negotiations and based on volume for the Juvenile Justice Campus needs, with an average daily population of under 100 youth vs. 2,800 adults at the jail, Trinity has proposed not to increase meal rate above the current pricing that was approved in January of the current agreement.
The recommended amendment also removes the provision of the Agreement that currently allows Trinity to terminate without cause with 30 days’ notice.
REFERENCE MATERIAL:
BAI #24, December 14, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment I to Agreement
CAO ANALYST:
Samantha Buck