District picks contracted food service

In a unanimous vote, without discussion, the Stanwood-Camano School Board approved entering into contract negations with Chartwells, a food service management company.

The district was required to re-open the food service contract to bids because of a change in federal regulations.

As there was only one viable option, entering into the negotiation process with Chartwells seemed logical, said Ken Christoferson, school board member.

Christoferson said he is reserving his decision on the food service contract until the final contract is presented.

Chartwells was the only food service management company that responded to the district's request for proposals as of the May 29 deadline, according to a July 14 memo from Gary Platt, district executive director of business and operations. The four in-house manager candidates either did not meet qualifications or could not be considered because of contractual restrictions.

For an in-house food manager, the district wrote a job description and advertised the position in its normal venues, Platt said. The position was open for at least two weeks.

As of June, the district's food service program was $28,201 in the black. However, the payroll costs for July and August will likely bring the program to a net loss of $107,000 to $112,000 for the year, Platt said.

Projected losses for the food service program for 2008-2009 was $192,470.

By the end of August, the school district will have lost $370,000 to $375,000 in the four years it has used Chartwells. With the original estimated loss for the 2008-09 school year, the deficit would have reached almost half of a million dollars.

In four years, three experienced a loss, and the saving grace of the fourth was a reimbursement from Chartwells. The company had predicted a gain when the district experienced a loss.

One of the benefits the district has cited concerning a management company is the guaranteed gain or loss included in the contract.

In the three years prior to the switch to Chartwells, the district's food service program gained profits of $35,171.

Before the school district went with a food service company, the district was losing money each year, said Roger Myers, school board president. With Chartwells, it has lost less, he said.

However, the opposite was reflected when comparing the in-house manager period from 2002-03 school year to 2004-05, when the district had an overall gain of $35,171, and the first three years of Chartwells, from 2005-06 to 2007-08, when the district had an overall loss of $262,954.

When asked about whether or not the district lost more money in food service prior to the 2002-03 school year, the earliest year the NEWS received data for, Platt responded that he didn't know.

In the final contract, the district will be looking for an estimated $133,830 loss for the upcoming school year.

The hiring committee suggested conditions to the acceptance of Chartwells' proposal.

Among them was a study of the food service program completed by Jan. 31, 2010, that identifies changes needed to eliminate the projected net loss.

The district has never formally required Chartwells to do this before, Platt said.

The district will request that someone other than the local food service manager to determine what it would take to make the food service budget neutral or in the positive.

The committee also suggested requiring up to 10 hours of training during the school year. Chartwells has offered training, but the committee felt the district needed to be more specific, Platt said.

The food service director and kitchen managers for elementary and middle schools are supposed to meet to examine options to improve menus. Chartwells will also complete a safety review of the district's operations and help simplify the daily reports to the state.

Although the board believes district staff does a good job running schools, the district isn't an expert in restaurants, which is why a food service company makes sense, Myers said.

In addition, the district experienced more personnel issues while an in-house manager operated the program, he said.

The district could increase its revenue by raising food prices, however, it's not something they are prepared to do, Myers said.

"Kids need nutrition in order to do good school work," he said.

Higher costs could mean some students would no longer be able to afford the meals, he said.

The food service program is something the board plans to take up at one of its next two retreats, Christoferson said.

Items examined at retreats are brought to board meetings, he said.

The district receives a monthly report on the food service budget, Christoferson said.

Julie Dean, school board vice-president, said the district followed an objective process to look at the options for providing a cost effective program.

"I believe Chartwells can work well with the district to provide economical, nutritious meals and meal plans," she said.

The Stanwood/Camano NEWS printed an investigative piece on the school district's food service program, entitled "At a loss," in its June 2 edition. The story is available at www. scnews.com by searching the newspaper's archives.

Staff Reporter Kristi Pihl: 629-8066 ext. 125 or kpihl@scnews.com.