Lack of options keeps food vendor at Iola schools

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Local News

May 29, 2019 - 10:10 AM

A lack of interest from food service companies means USD 257 will stick with OPAA to provide meals, despite criticism about the service.

The district was required this year to open its food service contract for bids, a process that must be done at least every five years, according to Judy Baker, USD 257 Food Service Coordinator and liaison with OPAA. The contract runs annually.

USD 257, working with Kansas Department of Education officials, invited 13 companies to submit bids to manage the district’s food services. Just four companies responded, with two of them declining to submit bids. A third company submitted an initial bid but did not respond to the state’s follow-up questions, taking them out of the running.

That left OPAA as the sole bidder, offering to continue its services at a significant cost increase of 35 cents per meal. USD 257 continues to negotiate for a better price, Baker and Superintendent Stacey Fager told board members at a meeting Tuesday.

“OPAA’s bid was a little higher than we anticipated,” Fager said. “They said they haven’t been successful turning a profit in the Iola district. I wasn’t aware of that.”

Dan Willis, board president, asked if Baker was satisfied OPAA had made improvements after receiving complaints about the service and its menu options.

The hiring of Sharon Lindsey in January to run OPAA’s program in Iola made a big difference, Fager said. She’s worked with the district to offer menu items that are more likely to appeal to students and therefore increase the number of students who eat the meals.

“She’s been really proactive in finding ways to eliminate waste,” Fager said. “If we didn’t have Sharon, I would be very frustrated at this point.”

The federal government’s easing of some restrictions, such as a requirement that only whole wheat bread and buns could be served, also has helped the service offer a more appealing variety of food, Baker added.

And when the district opens its new elementary school, as projected for the 2021-22 school year, the district can send its food service out for bids again. Baker and Fager speculated food management companies were turned off by the number of schools served by USD 257. 

Consolidating the three elementary schools into one, especially with a new, modern kitchen, could attract more bidders or persuade OPAA to offer a better deal or better salaries to local employees, they said.

Despite continued financial negotiations with OPAA, Baker proposed just one change to the cost of meals. She asked the board to increase the cost of elementary meals by 5 cents, to $2.85. That will keep cost increases more consistent, with a 10-cent increase as children move through buildings. When elementary students move to the middle school, lunch prices jump to $2.95. When they move to high school, lunch prices are $3.05.

 

School project update

Board members continue to be divided on whether to accept a premium on the school construction bonds, should financial bidders offer one.

The district has until June 10 to decide. That’s when bids will be opened to sell bonds for the $34.5 million project. Financial analysts with George K. Baum & Company said it’s possible bidders could offer $1 million or as much as $3 million as a premium xxx. 

If that happens, the district needs to decide what to do with the money. They could use it as a contingency fund to offset unexpected construction costs, or they could lower the bond and reduce the tax rate. It’s also possible they could take the money for contingency and then use it later to pay part of the debt early, if it isn’t needed for construction. 

“You need a cushion. If you’ve ever done construction, you know things come up,” board member Jennifer Taylor said. “It doesn’t obligate you to use it for that.”

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