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03CONSENT.Pdf CONSENT AGENDA FEBRUARY 18, 2016 TAB DESCRIPTION ACTION BAHR – FOOD SERVICE CONTRACT WITH Motion to Approve 1 ARAMARK EDUCATIONAL SERVICES PPGA – BOISE STATE UNIVERSITY – MICRON Motion to Approve 2 FACILITY NAMING PPGA – BOISE STATE UNIVERSITY – MICRON Motion to Approve 3 SCHOOL NAMING PPGA – ALCOHOL PERMITS – PRESIDENT Information Item 4 APPROVED REPORT BOARD ACTION I move to approve the Consent Agenda as presented. Moved by _________ Seconded by __________ Carried Yes ______ No ______ CONSENT AGENDA i CONSENT AGENDA FEBRUARY 18, 2016 THIS PAGE INTENTIONALLY LEFT BLANK CONSENT AGENDA ii CONSENT AGENDA FEBRUARY 18, 2016 BOISE STATE UNIVERSITY SUBJECT Food service contract with Aramark Educational Services REFERENCE April 2006 Idaho State Board of Education (Board) delegated approval authority to the Executive Director of the State Board of Education for the food service contract with Aramark Educational Services, LLC (Aramark) July 2006 Executive Director for the Board approved food service contract with Aramark APPLICABLE STATUTE, RULE, OR POLICY Idaho State Board of Education Governing Policies and Procedures, Section V.I.6.b BACKGROUND/DISCUSSION On July 1, 2006, Boise State University (BSU) entered into a five year contract with five optional one year renewals with Aramark. The current food service contract with Aramark expires on June 30, 2016. The food service contract is an exclusive contract to provide food service to BSU community. It encompasses dining services for residents, commuters and visitors, as well as catering, vending and concessions. The food service provider works as a partner with BSU to maximize quality while holding costs for students and customers to an acceptable level. BSU issued a request for proposals (RFP) in January 2015. Proposals were received in March 2015 from Aramark and Compass, both major national college food service providers. The goals of the RFP were to increase financial return to BSU, increase student and client satisfaction, and ensure prudent management in regards to the environmental, economic and social sustainability of dining services. The bid process utilized a best value procurement strategy and Aramark was selected based on quality, expertise and price. BSU conducted the clarification phase with Aramark in May 2015. In January 2016, Boise State issued a Letter of Intent to Award to Aramark. The contract is estimated to generate approximately $14 million in annual sales, of which $3 million is revenue to BSU. Projections may vary due to current and future construction projects that are directly linked to food service on campus. Revenues are a combination of commissions paid by the food service vendor for retail, catering, vending, concessions and net revenues generated from board dining. BSU and Aramark work collaboratively to make every effort to improve on CONSENT - BAHR – SECTION II TAB 1 Page 1 CONSENT AGENDA FEBRUARY 18, 2016 projected sales, which in turn increases revenue to BSU. Revenues from the contract support operations and programs in Student Housing, Student Life, the Student Union Building, the Taco Bell Arena, Athletics and the College of Business and Economics. Future projects may include a Residential Honors College facility through a public-private partnership with an anticipated completion date of August 2017. BSU will facilitate discussions between private management and contractor for potential agreements. The procurement process conducted through Boise State’s Department of Purchasing has been methodical and extensive. BSU is confident this process will result in a contractual relationship with the provider who best meets BSU’s needs. The terms agreed upon include: 1. Contract term is 5 years with optional 5 one-year renewals. 2. Aramark will operate Boise State University board dining, retail, catering, concessions, vending, and alcohol sales. 3. Aramark will pay Boise State a commission on all sales except for board dining, in which they are paid a per patron fee based on the specified dining plan. 4. Boise State provides an estimated $470,000 in flexible spending for dining options to boarding dining students a year. 5. Aramark will be responsible for all costs of food service operations. 6. Total revenue in FY17 to the university is estimated to be $3 million. 7. Aramark has committed an investment of $8.3 million in capital and other investments and sponsorships over the life of the contract, 10 years. Investments to Boise State University: ● Capital Investment Grants: $2 million years 1-5 ● Capital Investment Grants: $2 million years 6-10 ● Board Dining: $450,000 ● Albertson’s Stadium and Taco Bell Arena Concessions: $500,000 ● Retail: $2.4 million years 1-5 ● Retail: $1 million years 6-10 IMPACT The quality, variety and perceived value of the food service on campus are all important components to the success of the associated programs and BSU as a whole. Continuing to improve each of these aspects of the contract will enhance revenue-generating capability and better serve the campus community by providing quality food service to students, faculty, staff and visitors. CONSENT - BAHR – SECTION II TAB 1 Page 2 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENTS Attachment 1 – Proposed Contract Page 5 STAFF COMMENTS AND RECOMMENDATIONS Staff recommends approval. BOARD ACTION I move to authorize Boise State University to enter into a food service contract with Aramark in conformance with the contract in Attachment 1. Moved by __________ Seconded by __________ Carried Yes _____ No _____ CONSENT - BAHR – SECTION II TAB 1 Page 3 CONSENT AGENDA FEBRUARY 18, 2016 THIS PAGE INTENTIONALLY LEFT BLANK CONSENT - BAHR – SECTION II TAB 1 Page 4 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENT 1 BOISE STATE UNIVERSITY FOOD SERVICES CONTRACT BETWEEN ARAMARK EDUCATIONAL SERVICES, LLC AND BOISE STATE UNIVERSITY RFP #TS15-058 CONSENT - BAHR – SECTION II TAB 1 Page 5 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENT 1 Effective Date: July 1, 2016 CONSENT - BAHR – SECTION II TAB 1 Page 6 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENT 1 TABLE OF CONTENTS Page 1. Parties ……………………………………………………………………………………………………………………….4 2. Scope of Work ……………………………………………………………………………………………………………4 3. Quality Control Plan …………………………………………………………………………………………………..39 4. Contract Terms and Conditions ………………………………………………………………………………….49 5. Annual Pricing Submissions ………………………………………………………………………………………..52 Exhibit 1 – Menus and Pricing …………………………………………………………………………………………..55 Exhibit 2 – State of Idaho Terms and Conditions ……………………………………………………………… 116 Exhibit 3 – Smallwares, China, Silver, and Glassware Inventory …………………………………………125 CONSENT - BAHR – SECTION II TAB 1 Page 7 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENT 1 This Food Services Contract (the “Food Services Contract”) is entered into effective the 1st day of July, 2016, between Aramark Educational Services, LLC (“Aramark” or “Vendor” or “Contractor”) and Boise State University, a state of Idaho public institution of higher education. Scope of Agreement University issued its Request for Proposal in respect to University Dining Service (RFP #TS15-058) (the “RFP”) to establish a contract for exclusive management and operation of dining services on the Boise State University main campus. The RFP, Aramark’s Proposal in response to the RFP, including the Risk Assessment attached thereto and the Q&A submitted in connection therewith (the “RFP Response”), are incorporated herein. This Food Services Contract, together with the Modified State of Idaho Terms and Conditions, comprise the entire agreement between the Parties (the “Agreement”). Any inconsistency between or among any of the above incorporated documents will be decided in the following order of precedence: 1. The Food Services Contract; 2. Modified State of Idaho Terms and Conditions; 3. The RFP; and 4. The RFP Response. 1. PARTIES 1.1 ARAMARK EDUCATIONAL SERVICES, LLC (“Aramark”, “Vendor”, “Contractor”) 1.2 BOISE STATE UNIVERSITY (“Boise State”, “University”) 2. SCOPE OF WORK University issued a Request for Proposal in respect to University Dining Services (RFP #TS15-058) (“RFP”) in respect of which Aramark was awarded the contract. This Food Service Contract Agreement comprises the agreement among the parties. The initial term of the Agreement will be for a period of five (5) years, commencing July 1, 2016, through June 30, 2021. Subject to Section 4.1, the term of the Agreement may be automatically extended for five (5) one (1) year renewals. For financial reporting purposes, the financial reporting year is a period of twelve months commencing July 1 of one year and ending on June 30 in the immediately succeeding year. The maximum duration of this Agreement, including initial term and extensions, shall be ten years. 2.1 BACKGROUND/SCOPE OF SERVICES EXPECTATIONS AND REQUIREMENTS The Boise State University (herein referred to as the University) is contracting for the exclusive management and operation of dining services on its main campus except as described within or exempted by the Vendor. The University is awarding this project to Aramark based on the requirements in the RFP solicitation. The University’s goals of this contract are to: 1. Increase Financial Return to the University 2. Increase Satisfaction (University, Student, and University Clients) 3. Ensure prudent management in regards to sustainability of Dining Services CONSENT - BAHR – SECTION II TAB 1 Page 8 CONSENT AGENDA FEBRUARY 18, 2016 ATTACHMENT 1 environmentally, economically, and socially 2.1.a. The Vendor shall require employees and volunteer
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