Board President Angel Faxon speaks during the June 23 School Board meeting at Bliss Educational Services Center. (City-Times photo)

By Sara Marls

The Stevens Point School Board this month will again consider whether to approve a 2.3 percent increase to the 2014-15 contract with Chartwells, the district’s food services vendor.

The contract amendment calls for an increase of just under $84,000 to the overall contract cost. Last year the district budgeted about $2.8 million for food services, which includes the cost of food, cafeteria personnel, kitchen equipment, as well as administrative fees for Chartwells. The district has budgeted just under $2.9 million for food service for 2014-15 which marks the fourth of a five-year contract with the company.

According to Chartwells, the increase is necessary because of the company’s “… access to large rebate incentives, streamlined online ordering program, access to a wide variety of high quality standardized recipes, and greater access to resources needed to help us comply with the Healthy, Hunger-Free Act (HHFKA) of 2010 and the National School Lunch Program of 2012 (NSLP).”

The board opted in June to postpone any movement on the Chartwells contract, instead asking Business Services Director Tom Owens to come back in July with a copy of the initial contract, as well as a representative of the company to answer for the increase.

“It’s not like they actually grow the food; it’s not like the price of fertilizer went up or something like that,” said Board Member Jeff Presley. “They provide a service. Why is it going up 2.3 percent?”

Board Member Chris Scott, who said she has seen several Chartwells contracts during her 12 years on the board, said costs typically vary from year to year reflective of food and staffing costs. 

Owens told Board Members in June he did not know the cost of the total contract offhand, leaving several members hesitant to approve the increase. Owens also pointed out the exact dollar amount of many of the district’s contracts aren’t finalized immediately due to the state’s budgeting requirements, which call for inclusion of the third- Friday count of all public school students each September- a vital element of the budgeting process of which he said the board is already aware.

“So you want us to approve this without us having the total cost of the contract?” Asked Board Member Lisa Totten. “This is not a good habit to be in.”

Owens did say amendments to the contract were not uncommon, pointing out the board approved the same increase last school year.

Board Member Trish Baker told Owens she felt the whole point of entering into a contract with any company was to avoid unforeseen cost increases, and at the very least the increases should have been built into the original contract.

“That strikes me as an odd contract,” Baker said. “What’s the point of the contract if it goes up every year, or if you don’t know what (percentage) it’s going to go up every year? Maybe it would be helpful for us to see the whole contract. I’m new- I haven’t seen it.”

The contract, which is available on the district’s website, was approved by district officials in September of 2011 and outlines a first year projected cost of $2.3 million with about $163,000 in rebates and discounts. The contract also indicates costs for the life of the contract are projected and not guaranteed.

“Those are discounts and reimbursements that are a result of the buying power of Chartwells, and the discount they have acquired with vendors is a result of their capacity,” Owens said, adding the district wouldn’t be eligible for similar discounts with another company. “The total amount of those discounts is more than the cost of the increase.” 

But some Board Members weren’t convinced and asked for more information this month before approving the increase.

“Numerous times we have a contract and we’re supposed to agree and approve a contract when we don’t have the full contract in front of us,” said Board Member Kim Shirek. “We got to quit doing this. I’m with Trish- what is a five- year contract good for if they’re just going to keep raising (the cost) anyways. The reason we do a long contract is so we can lock in those prices. I’m going to vote no until we get that contract in front of us.”

In June the board approved the preliminary 2014-15 school district budget of $96.5 million, which does include the Chartwells increase. 

The board agreed to postpone the matter until a Chartwells representative can be present in July. The board meets again July 14.