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HomeMy WebLinkAboutBackground ReportBackground The Senior Nutrition Program at the George H. Waters Nutrition Center offers one on - site (congregate) nutritionally balanced meal per day for senior adults sixty (60) years and older. The Nutrition Center Program also provides a "Home Delivered Meals Program." Approximately one (100) hundred seniors receive meals through the Home Delivery Program, seven days a week for which there is no charge only a "suggested contribution." To reiterate the goal of each program is to promote better health, to reduce or prevent isolation though coordinated congregate, home delivered meals and supportive services. Staff and Volunteers who deliver meals thru the Home Delivery Program also offer an important opportunity to check on the welfare of the homebound and offer a positive social contact. City Funding Though the Nutrition Center has been providing this excellent nutritional program, the Nutrition Center has a history of operating in the red. For many years, the City has provided annual funding to the Nutrition Center. Below is a listing of the city funding amounts provided to the Nutrition Center during the last six (6) years. FY 06 $340,017 FY 07 $224,315 FY 08 $363,513 FY 09 $341,904 FY 10 $320,589 FY 11 $366,260 Assumption of Contract Number 533563 Staff is requesting the City Council consider the assumption of the obligations of Contract Number 533563 to a third party including all operational food service management responsibilities. The new operator will assume the County of San Diego Contract No. 533563 and assume all operational duties of the Nutrition Center. If an experienced nonprofit provider can be found, they may be able to: 1. Restructure program service delivery method; thereby reduce operating costs, including labor costs and utility expenses. 2. Utilize their existing core business methods, to improve procedures and production. 3. Compete for nutrition grants to offset program funding deficiencies. If a nonprofit is contracted to assume the county contract, they would be able to continue providing nutritious meals, keep up with increasingly complex regulations, and perhaps even make a profit. Even though there are many reasons to consider the assignment of the contract to a third party, there are also some negative aspects that need to be considered. Some of the disadvantages of contract assignment include: 1. Employees may see that jobs are being outsourced, and they may see their jobs being lost. This can cause general uneasiness, which can lead to lower morale and less productivity. 2. Loss of control on the way service is managed and how decisions are made. 3. Loss of customers because they feel disconnected to the new provider and the city is no longer performing this function. If authorized, this action will result in the County of San Diego releasing the City of National City from all future obligations under Contract No. 533563. The new operator will assume all obligations of the County of San Diego Contract No. 533563.