REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Service Agreement with Haute Cuisine, Inc., Increasing the Contract Amount to $297,000 and Extending the Term for the Senior Center Lunch Program (F26-108)
Report
REPORT IN BRIEF
Staff requests approval of a Second Amendment to the Service Agreement with Haute Cuisine, Inc. to extend the agreement through January 25, 2027, and increase the not-to-exceed amount from $198,000 to $297,000. This amendment will allow the Senior Center Lunch Program to continue without interruption while staff develops a new competitive solicitation for the next multi-year agreement.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $250,000 in any one transaction.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
The Sunnyvale Senior Center is a 23,000-square-foot facility that includes a multi-purpose room, kitchen, lounge, fitness area, health counseling rooms, multi-use activity rooms, and administrative offices. The facility serves as a central gathering place for Sunnyvale seniors and hosts ongoing programs, special events, and community activities.
For many years, the City has provided a nutritious lunch program at the Senior Center, offering both nutritional and social benefits for older adults. Participants rely on this program as an affordable and consistent source of balanced meals and social connection.
In January 2024, the City entered into an agreement with Haute Cuisine, Inc. to provide food services for the Senior Center under IRFP I24-008 (Senior Center Lunch Program). The program supports the City’s goal of promoting community wellness and engagement among seniors.
In March 2025, the City approved a First Amendment under the City Manager’s authority, extending the term for one year, adding an option for an additional year, and increasing compensation to a not-to-exceed amount of $198,000.
Haute Cuisine has consistently delivered high-quality service, receiving positive feedback from participants and staff. In addition to providing daily lunches, the vendor caters paid Senior Center events and City-sponsored gatherings, demonstrating flexibility and responsiveness to community needs.
This extension will maintain service continuity and provide adequate time for a new solicitation process for the next multi-year agreement. Because the contract expires in January, there is insufficient time to conduct and complete a new solicitation. To maintain service with the current vendor beyond January 2026, it is necessary to exercise the option to extend the agreement for an additional one-year period. This Second Amendment to the contract increases the not-to-exceed amount to $297,000 and requires Council approval.
FISCAL IMPACT
Funding for the Senior Center Lunch Program is appropriated in Program 12000 - Recreation Services. The Senior Center Lunch Program operates on a cost-recovery basis. Participants pay the City directly for meals, and those revenues are used to reimburse the vendor, Haute Cuisine, Inc., for meals served. The City receives credit for the first 15 meals per day at no cost, which slightly offsets the program's administrative expenses. There is no net cost to the City to offer this program.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Approve Second Amendment to the Services Agreement with Haute Cuisine, Inc., increasing the contract by $99,000 to a new not-to-exceed total of $297,000 and extending the agreement term through January 25, 2027;
- Authorize the City Manager to execute the amendment in substantially the form attached to this report when all necessary conditions have been met; and
- Authorize the City Manager to increase compensation subject to budget availability through January 25, 2027 if pricing and services remain acceptable to the City.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
__ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Michelle Perera, Director of Library & Recreation Services
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Second Amendment to Service Agreement