West Milford Cafeteria Outsourcing: An Improvement?

Economic & Operational Efficiency?

BOE meeting May 21, 2013www.slideshare.net/WMfood

Do You See Improvement ?

Source: Cafe Revenue-Disbursement Reports-2 Years.pdf received 4/23/2013

District Managed09-10

District Managed10-11

Pomptonian11-12

Pomptonian12-13 Mar

Revenue $ 1,168,978.27 $ 1,091,900.12 $ 1,141,203.77 $ 736,296.49

Expenses $ 1,216,988.42 $ 1,219,294.20 $ 1,308,703.81 $ 955,200.43

Profit/Loss $ (48,010.15) $ (127,394.08) $ (167,500.04) $ (218,903.94)

Food Cost $ (418,440.35) $ (440,611.46) $ (327,339.59)

Pomp Fee $ (82,485.15) $ (63,029.12)

FSS S+B $ (49,233.41)

Key Financial Data

Cafeteria Revenue and Disbursements memos indicate:

2009-2010 yearly losses of $48,010 (without Pomptonian, includes all District employee salaries and benefits)

2010-2011 yearly losses of $ 127,394 (without Pomptonian includes all District employee salaries and benefits)

2011-2012 yearly losses of $167,500 (with Pomptonian includes all District employee salaries and benefits)

2012-2013 (Sep-Mar) losses of $218,900 (with Pomptonian includes all District employee salaries and benefits).We could easily surpass last year’s total by 60%+ !

Key Financial Data (cont’d)

Almost all 2011-2012 Cafeteria Revenue and Disbursements reports "summarize" the increasing loss is due to management fees paid to Pomptonian.

All 2012-2013 Cafeteria Revenue and Disbursements "summarize" that the increasing loss is due to lower revenue due to lower food sales. The use of Pomptonian has not increased the number of

lunches being served, even with the BOE significantly lowering the lunch prices in 2012-13.

The District has paid Pomptonian Management fee of $82,485 in 2011-12 and $63,029 through March of 2012-13 (estimated to be on track at $82,000 again by year-end).

Do You See A Positive Change ?

Source: Cafe Revenue-Disbursement Reports-2 Years.pdf received 4/23/2013

Key Facts

Cafeteria Workers same pay 2008-2011 Voluntary wage freezes and increase in

benefits contribution

Pomptonian 2011-2012, renewed 2012-2013 Supposedly better purchasing power for food $0.0948/$3.25 HS lunch (2.9%) in 2011-2012 Recommended Price decrease for 2012-2013 $0.0967/$2.75 HS lunch (3.5%) in 2012-2013 Why No-Cost first year (~ $82k Mgt costs)?

Operational Issues

Under federal and State Law, even with outsourcing food Services, the District “Local Education Agency” (LEA) is still responsible for the Oversight and Supervision of Food Service Operations.

Operational Questions

Questions By contract, if the Supervisor of Food Services is not an employee

of the District, the expense of replacing this employee will increase Pomptonian’s operating costs. How much will this increase be?

Who supervises/manages district employees without a Supervisor of Food Services?

Will all District cafeteria employees be replaced by Pomptonian employees? (This seems to be the direction.)

Who does State reporting, Free/Reduced Lunch Program, etc.? (This can not be done by a private company.)

Who will assume these duties and responsibilities if there is no Supervisor of Food Services position?

Operational Questions (cont’d)

Questions At what cost and loss of efficiency will someone else in the District

assume these duties?

What training, experience or expertise does any other employee have in Food Services?

Based on the facts, what are the economical and operational efficiencies that justify eliminating the position of Supervisor of Food Services and continuing to pay Pomptonian a management fee to operate at higher losses than keeping our food services in-house?

What plan/proposal has been presented to provide Food Services after July 1, this year?

Until the Board has answers to all of these questions, it would be premature and ill-fated to eliminate the position of Supervisor of Food Services at this time.

Conclusion

Revenue: Expenses: 2012-March 2013 Loss ~$219k !

BOE Internal memos of Cafeteria Revenue and Disbursements do not support the Superintendent’s Recommendation to eliminate the Supervisor of Food Services Position for reasons of efficiency and economy, nor does it support the Superintendent’s recommendation that the District will be able to continue to adequately provide food services to the students after the elimination of the position.

This doesn’t even seem to make economic sense, let alone address operational issues. Please take a closer look at all the facts and financials figures before making a decision that will eliminate not only the Supervisor of Food Services position, but also many options the District currently has for providing Food Services to our children.