1. GLENDALE COLLEGE CAFETERIA

2. OPERATING DEFICIT Historically College has supported Cafeteria Operations  Last year Cafeteria was in the black 1991-92  Audit finding since 1998-99 Problem throughout the State College commitment to providing food service for students

3. OPERATING STATEMENTS (in $ thousands) 2004-052005-062006-072007-082008-09 Food Sales1,1711,1431,033947777 College Support80120217130120 Total Revenue1,2511,2631,2501,077897 Food Cost481496481388311 Salaries and Benefits 663687682635510 Other Expenses89101875373 Total Expenses1,2331,2841,2501,076894 Net Profit18(21)013

4. REASONS FOR DEFICIT Staff Salaries and Benefits  Salaries above market  Retirement  Full medical Increased competition College budget cuts Cafeteria layout Recession

5. ACTIONS TAKEN Student Surveys Menu and portion sizes Reduced product inventory Vendor comparisons Franchising (Subway) Consultant Review Accepting Credit Cards Reduced staffing Offload Expenses

6. ACTIONS PLANNED Partnership with Culinary Arts Remodel of upstairs cafeteria

7. FUTURE OF CAFETERIA Continue to try to improve operations to make Cafeteria more self sufficient with the understanding that it will always need College support. Eliminate food services entirely. Downsize operations. Outsourcing opportunities

8. RESTRICTIONS OF ACTIONS CSEA bargaining agreement  No contracting out classified work Education Code  88020.5 Food Service positions are part of the classified service  88003.1 Contracting for services performed by classified employee to achieve cost savings is permissible if: Contractor pay rates are at industry levels and do not undercut district pay rates. Contract does not cause displacement of district employees.