Board approves Sodexo amendment with $500,000 guarantee and management‑fee credit clause
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Summary
The board approved an annual amendment to the district’s five‑year food‑service contract with Sodexo that includes a $500,000 annual guarantee and a provision to credit up to the $186,000 management fee if guarantees fall short.
The Middletown School Board approved an amendment to the district’s five‑year food‑service contract with Sodexo that staff said includes a $500,000 guarantee and an administrative management fee that can be returned to the district if guaranteed revenue targets are not met.
“...this year, the guarantee the nice thing about Sodexo food service is they have a guarantee of profit that we'll earn each and every year, and it was set at $500,000 for this year. And, also, the, the administrative fees that they charge, I think that was a $186,000. And what's nice about the guarantee is it say they come in a $100,000 short, they've only earned us $400,000, they'll give us up to a $186,000 of that management fee back to us,” Mr. Bertram, staff member, explained during the meeting.
Why it matters: the amendment governs revenue guarantees and the district’s financial protection if food‑service revenue falls short of projections. Board members described Sodexo as a long‑term partner and said they had not needed to collect management‑fee credits during Mr. Bertram’s 11 years of service.
Board action: the board moved the Sodexo amendment forward and approved it during the meeting’s business items. Recorded votes in favor included Mrs. Scribe, Mrs. Ramsey Hunter, Mr. Moore and Mrs. Stewart.
Background: the district holds a five‑year food‑service contract that is amended annually to adjust fee schedules and guarantees. The amendment approved at the meeting retains the revenue guarantee structure and the administrative fee arrangement.
Ending: staff said the district has not had to invoke the fee‑credit clause in recent history but noted the clause provides a safeguard if revenues fall short.
