Aramark submitted a letter indicating they are interested in renewing for an additional one-year term; however at an increase to the service fee of 3%, resulting in an increase of $35,977.61 plus HST to the annual amount. Administration is of the opinion that the requested increase is reasonable considering three years has elapsed.
As part of an agreement made in 2017, CUPE Local 543 was advised on January 13, 2020 that Administration will be pursuing an extension to Aramark’s contract, and provided information regarding the fee increase on February 10, 2020. CUPE Local 543 was given the opportunity to make a written submission within 30 days. The written submission was received on March 30, 2020, and given consideration by the department. After reviewing the submission, the department is recommending the extension to Aramark’s contract.
Due to the COVID-19 pandemic, council meetings went to an electronic format in March 2020. As a result, bringing the extension to council was deferred, and an interim 6-month extension was approved on April 15, 2020 by way of CAOP 51/2020. The interim extension ends on December 4, 2020. This report seeks approval for a one-year extension to December 2021.
Risk Analysis:
Proceeding with the renewal of the contract at the requested service fee increase will result in an increase to the operating budget.
Should Council decide not to proceed with the renewal of contract, the contract will need to go out to tender, and there is a risk that the price will increase. An additional interim extension will be required to allow time for the procurement process.
Changes to the current delivery model for caretaking services may have a short-term negative impact on the quality of service and the ability to maintain proper infection control practices, including control of the spread of COVID-19.
Financial Matters:
The current operating budget for caretaking services at Huron Lodge is $1,199,253.64 plus HST. The annual operating budget for those services will need to be increased by $35,977.61 plus HST to support the increased fees.
Consultations:
- Alina Sirbu, Executive Director, Long Term Care
- Adrian Busa, Manager, Facility Operations
- Tracey Ou, Financial Planning Administrator, Facilities
- Alex Vucinic, Manager, Purchasing
Conclusion:
Administration recommends proceeding with the one-year renewal of the caretaking services contract with Aramark Canada Ltd, including an increase to the service fees of 3%.