Please review and approve the attached contract with Sodexo to manage the district's food service program. This is a renewal (year 2 of 5) of the contract which was rebid for 17-18. The contract includes an expected (guaranteed) loss of $141,000. If the program loses more than this, then Sodexo will reimburse the district for the difference. The pro forma and contract is based on district labor and other miscellaneous costs of $482,400. We settled with SEIU after the original pro-forma was completed and the salaries and benefits will be considerably more than this amount. Instead of changing the pro-forma and contract (the format had already been approved by OSPI and by Sodexo legal) this will be taken into account when calculating the guarantee at the end of next year. Sodexo is very interested in bringing that number down and will be working in 18-19 to increase participation and determine how else to make the program less costly. Please let me know if you have any questions.