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Lockwood K-12 staff warn food-service contract may be unsustainable as reimbursements lag costs
Summary
Staff said Chartwells' food-service renewal and commodity pricing, combined with falling qualification rates, have left the district paying more than reimbursements cover; staff will review community-eligibility thresholds and pricing before a May 30 contract decision.
Staff told the committee that the food-service contract with Chartwells is up for renewal and that changes in commodity-pricing indices and community-eligibility thresholds could materially affect district costs. They said declining free/reduced counts mean the program is costing the district more to sustain.
Diane gave reimbursement detail: she reported a 64.37% reimbursement rate for certain meals and said the remainder earned a supplemental 90¢; staff noted that roughly 46% of meals were being covered only by the supplemental rate, making the program cost-inefficient.
Staff said they would examine whether the district should pursue community-eligibility options (which must be decided prior to contract/pricing deadlines) and work with Kelly on pricing and eligibility, with an eye toward presenting a recommendation to the board after verifying numbers.
No contract award or change was approved at the meeting; staff will return with updated numbers and eligibility recommendations.
