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Home My WebLink AboutPD16-380 - Supplement - Summit Food Services LLC - Kent Corrections Facility Food Services Negotiation Letter - 09/06/2022 09/06/22 Kent City Corrections Facility 1230 Central Ave S Kent, WA 98032-7426 Re: Inflation and Contract Notice Dear Kent City Corrections Facility: Summit Food Service, LLC (“Summit”) and Kent City Corrections facility (the “County”) have been parties to an Agreement, which commenced on 11/25/2016 (the “Agreement”). In accordance with that Agreement, Summit has proudly provided food services to the County since that date. As you are likely aware, food, fuel and labor costs continue to rise to new historically and unpredictably high rates. You may also be aware that this has had a disproportionate impact on both the food service industry and on the corrections industry. Summit prides itself on offering you a quality service at a reasonable price. Due to hyperinflation in the marketplace, however, Summit can no longer continue to provide services at the current pricing, which was contemplated prior to our current inflationary environment. Please note that we have made repeated attempts to try to find solutions that would allow for Summit to continue to provide services to the County. Despite our attempts, we have not been able to reach any such solution. We do understand that due to budgets and other regulations, sometimes (even with inflation the way it is today), clients cannot always afford to provide increases. Similarly, Summit cannot afford to provide services at a loss to our clients. For that reason, please allow this letter to serve as Summit’s respectful notice that we have no choice but to exercise our right to terminate the Agreement between the Parties, effective December 5, 2022. Please know, that Summit will do whatever we can to ensure a smooth transition and would welcome the opportunity to participate in the next proposal process. We value you as our client and sincerely regret that the external market forces have pushed us into this position. Please do note that if, prior to December 5, 2022, the County wishes to explore alternate options that could be effectuated by that date, Summit remains open to doing so. For example, we have been busy working on an inflation resistant menu, that will meet your nutritional requirements, but at a lower price. By electing this option, it would reduce your price impact. Our sincere hope is that providing this letter, we will have the opportunity to have the necessary discussion with the City to ensure we are able to continue our on-going successful partnership. If you have any questions or need any further information about these options, you can contact Tim Bucknell at 971-218-3032 or via email timothy.bucknell@summitfoodservice.com Best Regards, Tim Bucknell, District Manager Summit Food Service 1 McCormick, Melissa From:King, Jalene Sent:Friday, December 16, 2022 10:59 AM To:City Clerk Subject:FW: Summit letter Attachments:Kent Inflation Notice Letter revised 2022-09-27.docx Categories:Contracts Please add this inflation/termination letter to the Summit Food Services file #PD 16-380. An extension to January 31 is on the way. Thank you, ~ JK – x5890 From: McCuistion, Diane <DMcCuistion@kentwa.gov> Sent: Friday, December 16, 2022 10:46 To: King, Jalene <JKing@kentwa.gov> Subject: FW: Summit letter The letter states December 5th but the email below agrees to and extended date of December 31st. Thank you, Diane McCuistion, Commander Corrections | Police Department 1230 Central Avenue South, Kent, WA 98032 Direct Line 253-856-5964 | Fax 253-856-6961 dmccuistion@kentwa.gov CITY OF KENT, WASHINGTON KentWA.gov Facebook Twitter YouTube Instagram From: Barry Goold <Barry.Goold@summitfoodservice.com> Sent: Wednesday, October 26, 2022 4:00 PM To: McCuistion, Diane <DMcCuistion@kentwa.gov>; Tim Bucknell <timothy.bucknell@summitfoodservice.com>; Hughes, Bijan <BHughes@kentwa.gov> Cc: Mike Cozart <mike.cozart@summitfoodservice.com>; Kasner, Jarod <JKasner@kentwa.gov> Subject: Re: Summit letter EXTERNAL EMAIL Commander McCuistion, Thank you for your time today and the update, and per our conversation with Tim he did explain your three points. 2 First would like to restate that we have been long-time partners in providing food service at your facility and do wish to find a solution that would allow us to continue to provide services to the city. Tim will be working on a new menu option and pricing. He has already gotten in contact with our dietary team to put options together for you. My understanding is that he will have that for you by next Wednesday if not sooner. We are fine with the extension of the date to be moved to December 31 st (December 5th original date end) , however, starting on December 6th, 2022, we will be moving to the pay scale pricing that was submitted on the current menu. We can no longer operate in the negative, and as stated in our letter, due to hyperinflation in the marketplace on food, fuel and labor cost the adjustment must be made. As a true partner, I know you would understand as a business that we can't be operating in the negative to provide you with the food service program that we currently do at a loss to our company. I thank you for meeting with Tim today, looking forward to a solution that will fit both the City and Summit and can be a win/win relationship and ongoing partnership. Any questions or concerns, please let me know or you can contact VP Mike Cozart at 801-317-7016 Barry Goold Director of Operations NW Summit 208-407-1343 barry.goold@summitfoodservice.com 3 From: McCuistion, Diane <DMcCuistion@kentwa.gov> Sent: Wednesday, October 26, 2022 3:23 PM To: Tim Bucknell <timothy.bucknell@summitfoodservice.com>; Hughes, Bijan <BHughes@kentwa.gov> Cc: Barry Goold <Barry.Goold@summitfoodservice.com>; Mike Cozart <mike.cozart@summitfoodservice.com>; Kasner, Jarod <JKasner@kentwa.gov> Subject: [EXTERNAL] RE: Summit letter Hi Tim, Per our phone conversation we’re requesting additional information:  An updated price document, for our current menu  A new menu option and pricing  A date extension to December 31st on the termination letter Again, thank you for your time. Regards, Diane McCuistion, Commander Corrections | Police Department 1230 Central Avenue South, Kent, WA 98032 Direct Line 253-856-5964 | Fax 253-856-6961 dmccuistion@kentwa.gov CITY OF KENT, WASHINGTON KentWA.gov Facebook Twitter YouTube Instagram From: Tim Bucknell <timothy.bucknell@summitfoodservice.com> Sent: Friday, October 21, 2022 9:12 AM To: McCuistion, Diane <DMcCuistion@kentwa.gov>; Hughes, Bijan <BHughes@kentwa.gov> Cc: Barry Goold <Barry.Goold@summitfoodservice.com>; Mike Cozart <mike.cozart@summitfoodservice.com> Subject: Summit letter EXTERNAL EMAIL Good morning Commander and Bijan, I am reaching out asking where we are with the request for amendment we made. On 9/27 I sent the adjusted letter to you and haven't received any response. I visited with Commander McCuistion last Thursday the 13th and it was relayed to me that the request is in front of the city. December 5th, is the hardline date that is in the letter for us terminating the agreement if we don't come to some sort of agreement before. I just need some kind of communication or direction on where the city is looking to prepare for whatever the decision is. As stated in the letter, I don't want to see our partnership dissolved and am willing to do what needs to be done without continuing Summits financial hit, I just need some direction on where you are going. It takes me a week to draw up a formal amendment and get it to you if that is the direction you want. Thank you for your attention to this, I want what's best for us all, I just need to make sure the time is available to complete the tasks. Regards, 4 Tim Bucknell Summit Food Service District Manager, Oregon and Washington 971-218-3032 timothy.bucknell@summitfoodservice.com