DEPARTMENT: Health
DEPARTMENT HEAD: Colleen M. Bridger, MPH, PhD
COUNCIL DISTRICTS IMPACTED: District 3
SUBJECT:
Authorizing an amendment to the Professional Services Agreement with the University of the Incarnate Word on behalf of its School of Osteopathic Medicine for a term ending September 30, 2020 to increase the compensation.
SUMMARY:
This Ordinance authorizes an amendment to the agreement with the University of the Incarnate Word on behalf of its School of Osteopathic Medicine (UIW) to increase the compensation to UIW by $16,000.00.
BACKGROUND INFORMATION:
Many neighborhoods in San Antonio lack access to grocery stores, but have abundant corner stores. Residents who lack personal transportation must rely on public transportation or walking to obtain their groceries. Food desert maps and other studies have identified areas of San Antonio that lack easy access to food that supports a healthy diet. In place of healthy food in these areas, there is an abundance of junk food and sugary beverages which contribute to high rates of diabetes and obesity. Integrating healthy food options into corner stores in these areas provides an opportunity to improve health outcomes by increasing access to healthy foods, including fresh fruits and vegetables in spaces that are already part of the local landscape. Healthy foods, for the purpose of this agreement, are defined as fresh or frozen, whole or cut fruits and fresh or frozen, whole or cut vegetables.
During the FY19 Annual Budget development process, District 3 Councilwoman Rebecca J. Viagran proposed establishing a healthy corner store initiative in District 3 in partnership with UIW’s School of Osteopathic Medicine and recommended funding for the project through a budget amendment. The Ordinance allowed for the execution of an agreement with UIW in an amount up to $45,000.00 for implementation of the pilot project through September 2019. In September 2019, an amendment to the agreement was approved by City Council to extend the project for an additional one year period and to amend the term of the agreement to begin October 1, 2019 and end September 30, 2020. The amendment also included an additional funding amount of $20,000.00, bringing the total contract amount to $65,000.00.
The proposed amendment to the agreement with UIW will provide an additional $16,000.00 in compensation to the contractor, bringing the total contract amount to $81,000.00. The additional funds will allow UIW to subsidize the purchase of produce for the Healthy Corner Stores Project and allow the corner store owners to continue purchasing produce at the current discounted 70/30 rate-the stores pay 70% of the produce bill and the program pays 30%. Additionally, the amendment will remove the previously established requirement for hiring a composting company. There is no longer a project need to compost the corner store produce that is not sold, as there is much less unsold produce left over each week. These funds will be reallocated to support the corner stores in purchasing produce.
ISSUE:
Metro Health is requesting approval of an amendment to the Professional Services Agreement with UIW to increase the compensation to UIW by $16,000.00 for the Healthy Corner Stores Project. The additional funding will allow the corner store owners to continue purchasing produce at the current discounted price through the end of the fiscal year. This supports the nutrition goals in Metro Health’s Strategic Plan. This also provides support during the COVID-19 pandemic which has put additional economic stress on the businesses and neighborhood served by the Healthy Corner Stores Project.
ALTERNATIVES:
If the amendment is not approved, Metro Health will not be able to provide additional financial support to the Healthy Corner Stores Project. If the funding amount is not increased to support the project, the participating corner stores will have to pay a greater percentage of the cost sharing for the remainder of the contract term. The corners stores would have to pay 90% of the produce bill and the program would pay 10%. This will place greater economic stress on the corner store owners and on the success of the project. Additionally, if the amendment is not authorized, UIWSOM will be expected to continue utilizing project funds to pay for composting services when there is no longer a project need for these services.
FISCAL IMPACT:
This ordinance authorizes an amendment to the Professional Services Agreement with the University of the Incarnate Word to increase access to healthy fruits and vegetables through healthy corner stores by increasing the amount up to $81,000.00 and for a term ending September 30, 2020.
Funding for the amendment to the agreement is provided through the FY20 General Fund Budget. Metro Health will not seek reimbursement for these services. The total budgeted amount for this contract will not exceed $81,000.00.
RECOMMENDATION:
Staff recommends approval to execute an amendment to the Professional Services Agreement with UIW for the Healthy Corner Stores Project.