Sodexo Food Service Program Update

Date:               May 21, 2014

To:                   Michael Green, Superintendent

Subject:           Annual Food Service Update

From:               Stacy Brown, Director of Business Services

 

Jamie will be here to give a presentation to the Board on the food service program, and some changes for next year; including, the changes to food requirements for food served outside of the National School Lunch Program. 

I will be presenting a request to increase lunch prices for next year.  This is required as a part of the Healthy Hunger Free Kids Act, which requires districts to ensure that the paid meal prices are in line with the free and reduced reimbursement rate, to ensure that the National School Lunch and Breakfast program is not subsidizing the paid meals.  The required weighted average price for next year is $2.65.  Our current prices are $2.00 at the elementary level and $2.35 at the secondary level, for a weighted average of $2.14.  Because we are still below the required weighted average, we must increase our prices at least enough to increase our weighted average by $.10.  For this reason, I recommend that the Board approve an increase of paid lunch prices to $2.10 at the elementary level and $2.45 at the secondary level.  Breakfast prices will remain $1.35 for elementary and $1.50 for secondary.

Also, on the subject of lunch prices, I would like to have a discussion regarding the reduced lunch price.  Currently, breakfast is free at all grade levels for students who qualify as reduced.  Lunch is free for grades K-3 and $.40 for grades 4-12.  I recommend that we eliminate the $.40 charge for grades 4-12 reduced lunches.  In 12-13, total local food service revenues were $167,000.  Of this amount, $4,000 was collected for reduced lunches in grades 4-12.  Currently, local food service revenues are estimated to be approximately $181,000.  Of this amount, $4,500 has been collected for reduced lunches in grades 4-12.  I believe this will increase participation, especially at WMS and WHS.

I will also be presenting the Sodexo pro forma budget for 14-15.  I would like to discuss the plan for next year with regard to meal prices, cost per meal and District guarantee.  Per OSPI, cost per meal is allowed to be increased in accordance with the CPI.  Sodexo is requesting an increase to the cost per meal from $1.67 to $1.705.  This is an increase of 2.1% and is in less than the CPI.  With the changes discussed above including increased paid lunch prices, elimination of reduced fee for 4-12, estimated participation and increased cost per meal, the District guarantee is $4,873.  This will be year 3 with Sodexo.  Per OSPI requirements, we are allowed to renew for 5 years without going back out to bid.  Once I give Sodexo the thumbs up on the pro forma, they will present a contract amendment, which I will send to OSPI for approval, and then present to the Board for approval (probably early this summer).

Please let me know if you have any questions.