CONSENT AGENDA FEBRUARY 18, 2016 CONSENT AGENDA i BOARD ACTION I move to ...

138 Pages·2016·1.78 MB·English

CONSENT AGENDA
FEBRUARY 18, 2016
TAB DESCRIPTION ACTION
BAHR – FOOD SERVICE CONTRACT WITH
1 Motion to Approve
ARAMARK EDUCATIONAL SERVICES
PPGA – BOISE STATE UNIVERSITY – MICRON
2 Motion to Approve
FACILITY NAMING
PPGA – BOISE STATE UNIVERSITY – MICRON
3 Motion to Approve
SCHOOL NAMING
PPGA – ALCOHOL PERMITS – PRESIDENT
4 Information Item
APPROVED REPORT

BOARD ACTION

I move to approve the Consent Agenda as presented.

Moved by _________ Seconded by __________ Carried Yes ______ No ______

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CONSENT AGENDA ii
CONSENT AGENDA
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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
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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.

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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 _____

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ATTACHMENT 1

BOISE STATE UNIVERSITY

FOOD SERVICES CONTRACT BETWEEN
ARAMARK EDUCATIONAL SERVICES, LLC AND
BOISE STATE UNIVERSITY

RFP #TS15-058

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CONSENT AGENDA
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ATTACHMENT 1

Effective Date: July 1, 2016
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CONSENT AGENDA
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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

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CONSENT AGENDA
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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
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