SHORELINE COMMUNITY COLLEGE

CAMPUS FOOD SERVICES AND CATERING

MANAGEMENT OPERATING CONTRACT

This contract is made and entered into at Seattle, State of Washington, by and between KAILI’s KITCHENSPECIALTY FOODS AND CATERING, INC., having its principal place of business at 15700 Dayton 16101 Greenwood Avenue North, Shoreline, Washington 98133 (hereinafcalled “CONTRACTOR”) and SHORELINE COMMUNITY COLLEGE, DISTRICT NUMBER SEVEN, having its principal place of business at 16101 Greenwood Avenue North, Seattle, Washington 98133 (called “COLLEGE”).

WHEREAS, the CONTRACTOR is engaged in the business of operating restaurants, cafeterias, hospital and school and retirement home food services, and concessions, and has developed plans, methods, techniques, processes, and routines for efficient and economical food service operation and management, and;

WHEREAS, the COLLEGE’S main operation is at the following location:

Shoreline Community College

16101 Greenwood Avenue North

Seattle, Washington 98133

WHEREAS, the COLLEGE desires to obtain the services of the CONTRACTOR to provide food service for its students, staff, and guests, primarily at the above stated location within the food service areas located in Building 900, otherwise known as the student union building, or from time to time at other catered locations as may be mutually agreeable;

NOW, THEREFORE, it is mutually covenanted and agreed as follows:

  1. COLLEGE’s Responsibilities

The COLLEGE agrees it shall be responsible for the following:

  1. Provide the space, facilities, equipment, equipment repair and replacement, and painting for the operation of the COLLEGE’S food services, which shall be under the control of the COLLEGE and shall be and remain the sole property of the COLLEGE.
  1. In addition to items listed on A, the COLLEGE will make available to the CONTRACTOR one designated parking spot in the staff parking lot directly south and adjacent to Building 900 and e-mail capability compatible with the COLLEGE’S existing system.

B.C.Pay for all utilities (gas, water, electricity, waste disposal) and fire insurance.

C.D.Maintain the floors in the kitchen, dining room, and serving areas.

D.E.Supervise maintaining the dining room and serving area in an orderly and sanitary condition in conjunction with the CONTRACTOR.

E.F.Oversee foodstuffs sold by Shoreline Community College Foundation operated espresso locations, COLLEGE Bookstore, and student groups as mutually agreed upon with the CONTRACTOR, who shall not unreasonably withhold agreement of reasonable proposals of the COLLEGE.

F.G.It is mutually agreed that the COLLEGE may close the cafeteria at any time by giving the CONTRACTOR reasonable notice of their intentions to do so for any reason they may feel is advantageous to the COLLEGE or for security, safety, or health reasons.

  1. CONTRACTOR’s Responsibilities

The CONTRACTOR agrees it shall be responsible for the following:

  1. Food Service
  1. Provide liberal portions of wholesome food at the lowest reasonable cost with prompt, courteous service, and reasonable diversity of menus.
  1. Provide food services for all COLLEGE sponsored functions such as banquets, parties, conferences, or other special events as requested by the COLLEGE on a right-of-first-refusal basis. Charges to the COLLEGE for such services shall be based on the direct cost of raw food, supplies, and labor required, plus management, overhead, or other indirect costs. Certain specified functions shall be provided at the CONTRACTOR’s expense as arranged in advance with the COLLEGE President or his/her designee to include at a minimum coffee and pastries at ten Board of Trustees’ meetings per year. Agreed upon functions shall be contained in an addendum to this contract. Arrangements for these functions shall be coordinated through the COLLEGE Foundation with appropriate, written documentation provided on a quarterly basis for expenses incurred by the CONTRACTOR.
  1. Ensure that no intoxicating beverages shall be kept or sold upon the premises of the COLLEGE without the express written approval of the COLLEGE and under permit of the State of Washington Liquor Control Board.
  1. Pay the costs for all food and beverage items; linens, towels, uniforms, table linens, and all laundry service; telephone expenses, Internet, and e-mail service; taxes and insurance; extermination and pest control resulting from CONTRACTOR negligence; transportation and vehicles required for operations; paper supplies including disposable plates, cups, and utensils; office supplies; and kitchen supplies including dish washing compound.
  1. Pay for all labor costs including salaries, wages, Social Security tax, unemployment insurance, other payroll taxes, and employee benefits payable to or on behalf of the CONTRACTOR. All employees (including students) shall be employed by the CONTRACTOR in his/her own name, and the CONTRACTOR shall hold the COLLEGE harmless from any and all claims, demands, or liability on account thereof.
  1. Employ students as needed, as available through COLLEGE offices of student placement and/or financial aid, to work as waiters, waitresses, cleaning personnel, or other help in accordance with State of Washington and federal minimum wage laws.
  1. Provide food service employees health examinations as required by state and local law.
  1. Consult with the COLLEGE in regard to the appointment, service, transfer, and dismissal of all CONTRACTOR management personnel serving on campus. All CONTRACTOR’s personnel shall be subject to COLLEGE regulations regarding personal behavior and use of COLLEGE facilities and shall be subject to dismissal at the request of the COLLEGE for serious violations thereof or for conduct inimical or offensive to the interest of the COLLEGE or its students.
  1. Include the COLLEGE in the selection of the on-site food service manager.
  1. Maintain the food service premises, furniture, fixtures, and equipment used by the CONTRACTOR in proper condition and repair; replacement of all loss breakage, and, at the expiration of the contract, surrender of same to the COLLEGE in as good condition as when received, ordinary wear and tear and acts of God excepted. However, the COLLEGE shall maintain all built-in equipment and provide routine custodial services.
  1. Replace the initial inventory of china, glassware, silverware, trays and all other movable kitchen and serving equipment originally furnished by the COLLEGE due to loss and breakage (see Attachment A). Inventory of the above items must be taken annually with copies of shortage lists provided to the COLLEGE. The CONTRACTOR must order replacement items from suppliers within thirty (30) days after inventory list is presented to the COLLEGE.
  1. Provide routine cleaning of food preparation and service areas. Busing of dishes and cleaning of tables in dining areas and cleaning emergency spills from floors (regular routine maintenance and cleaning of all floors shall be the responsibility of the COLLEGE).
  1. Maintain clean, dry floors in the food preparation and service areas at all times.
  1. Remove all trash and garbage to waste receptacles (COLLEGE provided).
  1. Set rates and prices for food and/or services in accordance with the rates and prices approved by the COLLEGE.
  1. Maintain accurate, complete, and separate books of accounts according to accepted standards of accounting, reflecting its operations at the COLLEGE, on a fiscal year basis (July 1 – June 30), together with appropriate supporting data and documents. These books must be available for audit by the State Auditor or COLLEGE representative.
  1. Collect all monies for sales of food services and vending machines under its control, and retail food store operations. The CONTRACTOR shall remit the COLLEGE’s share of the above by the fifteenth (15th) calendar day following the close of each month.
  1. Provide menus, upon request of the COLLEGE representative to the food services committee. Reasonable COLLEGE requests regarding menu content shall be met.
  1. Post hours of meal service as follows in advance for academic quarters. Determine hours of operations between regularly scheduled quarters based on staff and instructional needs as mutually agreed upon with the COLLEGE.

Fall, Winter, and Spring Quarters:

Monday through Thursday7:00 a.m. until 8:00 p.m.

Friday7:00 a.m. until 4:00 p.m.

Saturday8:00 a.m. until 1:00 p.m.

Summer Quarter:

7:00 a.m. until 2:00 p.m. Monday thru Friday

  1. Provide the following daily minimum menu pattern:

BREAKFAST – Choice of at least 3 juices, cereal, choice of 2 entrees (meat 5 times per week), and choice of 3 beverages (1 of which must be milk).

LUNCH – Choice of 3 salads (1 green), choice of 2 entrees, 2 vegetables, starch item, choice of 5 beverages (1 of which must be milk).

EVENING SERVICE – Hot grill items generally available from 4 to 8 p.m. Monday through Thursday, with selected cold sandwiches and salads, choice of 5 beverages (1 of which must be milk).

  1. Comply with the following raw food specifications:

Beef, Veal, and Lamb – U.S.D.A. Grade Choice; Pork and Poultry U.S.D.A. grade A (#1).

Eggs and Dairy Products – U.S.D.A. Grade A; Frozen Food – Fancy, Choice, or Standard quality according to use of same.

All other foodstuffs shall be of comparable quality.

  1. Vending Machines:
  1. Provide, without cost to the COLLEGE, a sufficient number of new or used automatic food, and/or beverage vending machines (in excellent appearance and operating condition) in locations approved by the COLLEGE. Keep these machines in operation 24 hours per day, 7 days per week, supplied as required to provide, under normal conditions, to students, faculty, and staff, sufficient amounts of food and/or beverages of good quality, prepared and dispensed in conformity with all applicable federal, state, and local laws, and health and sanitation standards. Such vending machine foods and beverages shall be available for purchase at such reasonable prices and sizes per portion as mutually agreed upon by the COLLEGE and the CONTRACTOR. The CONTRACTOR may, with the approval of the COLLEGE, subcontract the vending machine operation.
  1. Ensure that the design of all vending machines compliments the areas in which they are located.
  1. Install additional machines as may be required to permit prompt and convenient serving of food and beverages.
  1. Remove and/or replace any of the machines as mutually agreed. The COLLEGE assumes no responsibility for these machines, but shall exercise reasonable care to permit only authorized CONTRACTOR personnel and/or CONTRACTOR’s subcontractor personnel to remove or repair any of the machines. The CONTRACTOR shall be responsible for cleanliness of all vendor machines.
  1. Provide, adjacent to all vending machines, equipment of appropriate size and design for the collection of waste, such as soft drink cans and candy wrappers, from vending machines.
  1. COLLEGE Food Related Programs
  1. Cooperate with the COLLEGE’s instructional program and staff for food-related programs such as dietetic technology in the sharing of cafeteria facilities and equipment appropriate to program needs.
  1. Assist COLLEGE food-related programs by making the kitchen facilities and equipment available at mutually agreeable times and dates.
  1. Make storage and refrigerator space available in the cafeteria for Shoreline Community College Foundation-sponsored activities and ventures, which includes refrigeration for espresso stand supplies.
  1. Acknowledges that espresso stands are allowed to sell miscellaneous food items.

a)The general supervision and operation of food services conducted upon THE COLLEGE’S premises under CONTRACTOR’S control; the hiring and training of personnel; the purchasing, preparing, and service of food, food products, confections, edibles, and non-alcoholic beverages; and the purchasing of the operating supplies and services necessary to provide food service, such as, but not limited to, paper goods, cleaning supplies, and laundry services;

b)All administrative duties and expenses, including the keeping of accounts; the paying of all compensation of federal, state, and local payroll taxes applicable to employees provided by CONTRACTOR; the paying of the cost of food, food products, confections, edibles, and non-alcoholic beverages delivered to THE COLLEGE’S premises, upon the order of CONTRACTOR; the paying of all other direct operating costs and expenses, such as, but not limited to, paper goods, cleaning supplies, laundry services, insurance premiums; the paying of all lawful taxes and license fees which may be imposed by federal, state, or local governing bodies in connection with the activities of CONTRACTOR hereunder; and the procuring of such licenses and permits as may be required to conduct its business hereunder, all of which shall be paid for by CONTRACTOR from the funds received by it from sales upon THE COLLEGE’S premises; pursuant to the specific terms of this Contract;

c)Maintaining kitchen and serving equipment in a sanitary condition at all times;

d)Providing liberal portions of wholesome food at the lowest reasonable cost with prompt, courteous service and reasonable diversity of menus;

e)Requiring employees to wear appropriate sanitary apparel and some type of distinguishing uniform while on duty which is mutually acceptable by THE COLLEGE; also provide food service employees with health examinations required by state and federal regulations;

f)Offering food services and vending machine service week days during the four (4) instructional quarters of the year, unless otherwise agreed upon additional operating days. Operating hours shall be posted each quarter. Vending machines only will be available during vacation periods;

g)Consulting with THE COLLEGE in regard to the appointment, service, transfer, and dismissal of all CONTRACTOR management personnel serving on campus. All CONTRACTOR’S personnel shall be subject to dismissal at the request of THE COLLEGE for serious violations thereof or for conduct inimical or offensive to the interest of THE COLLEGE or its students.

h)Keeping or selling no intoxicating beverages on the premises of THE COLLEGE (except minimal amounts used in food preparation) without the express written approval of THE COLLEGE and under permit of the State of Washington Liquor Control Board;

i)Cooperating with THE COLLEGE’S instructional program and staff for food-related programs such as dietetic technology in the sharing of cafeteria facilities and equipment appropriate to program needs;

j)Assisting COLLEGE food-related programs by making the kitchen facilities and equipment available at mutually agreeable times and dates.

  1. Carry a comprehensive General Liability Policy with minimum limits of one million three hundred thousand dollars ($1,300,000) including premise, contractual, contractor’s protective, products, and automobile. SHORELINE COMMUNITY COLLEGE, DISTRICT NUMBER SEVEN will be named as additional insured, and the policy will contain covenant giving the district thirty (30) days written notice before cancellation, reduction, or other modifications of coverage. Certificates of Insurance will be sent to the COLLEGE when the contract is signed.
  1. Comply with all statutes, lawful ordinances, regulations, and requirements--federal, state, and local--applicable to its activities herein.
  1. Keep accurate records and accounts of all monies received, disbursements made, and expenses incurred in connection with its operation of the food service herein. The COLLEGE shall have the right to inspect and audit, at any time during reasonable business hours and at the principal place of business of the CONTRACTOR, such books and records as pertain to the food services of the COLLEGE.
  1. Furnish to the COLLEGE, within a reasonable time following the end of each calendar month of the academic school year, statements of all monies received, disbursements made, and expenses incurred during the preceding calendar month, in connection with its operation of the food service hereunder. Expenses will include the agreed upon eight percent (8%) of gross receipts, excluding taxes, for the purposes of determining the profit derived from the CONTRACTOR’s operations hereunder.. Vending commissions are credited to the operating statement.
  1. Ensure that the CONTRACTOR is an equal opportunity employer and covers all its employees under Workman’s Compensation Insurance and State Industrial Insurance and Medical Aid.

III.Compensation

  1. All monies received from sales by the food services provided by the CONTRACTOR shall be paid to the CONTRACTOR.
  1. CONTRACTOR guarantees the COLLEGE an administrative services fee of five percent (5.0%) of gross receipts of the food services until March 31, 20012002. Thereafter, the administrative services fee will equal eight percent (8%) of the gross receipts. The administrative services fee shall be paid to the COLLEGE within thirty (30) days of end of each calendar month.
  1. Vending commissions will be divided evenly between the CONTRACTOR and the COLLEGE. CONTRACTOR shall pay to the COLLEGE its proportionate share within thirty (30) days of receipt of payment from vendor(s).
  1. CONTRACTOR shall bill the COLLEGE promptly for all authorized catering and/or charge sales which shall be payable within thirty (30) days of invoicing. A finance charge of one and one-half percent (1½%) shall apply to all unpaid, authorized and billed invoices beyond thirty (30) days of billing. Catering is authorized only after receiving signed approval by the appropriate Vice Presidents, the Vice President of Business Operations, and the COLLEGE President on a COLLEGE authorized approval form.

IV.Miscellaneous

A.The selling price of all prepared foods, food products, beverages, services, and menu items shall be presented to the Vice President for Student Services for review and approval for the COLLEGE. Such pricing shall be reasonable and fair to the extent possible to maximize benefits to the COLLEGE, students, faculty, staff, and the CONTRACTOR. Pricing shall be reviewed from time to time for the purpose of reaching mutual agreement on selling price changes. At least annually, comparative pricing shall be performed on similar food service operations in the local vicinity. If mutual agreement on price increases is not reached, an overall increase not to exceed five percent (5%) shall prevail and may be imposed by the CONTRACTOR.

B.The COLLEGE shall have a food services committee to appraise and evaluate the operations of the CONTRACTOR. The COLLEGE reserves the right to have designated representatives review, inspect, and evaluate the operation and condition of the food service facilities at any time with respect to the quantity and quality of food sold and served, the methods of service, the prices of a la carte selections, the hours of meal service, and generally with respect to the safety, sanitation, and maintenance at levels satisfactory to the COLLEGE.