To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Payment for Equipment Provided by Aladdin Temp-Rite LLC
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller, or designee, on behalf of the Health Services Department, to reissue payment due to loss and fraudulent redemption of original payment in the amount of $31,836.02 to Aladdin Temp-Rite LLC for the purchase of two (2) air curtain refrigerators.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure of up to $31,836.02 and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Aladdin Temp-Rite LLC is a global company that specializes in meal delivery system solutions for healthcare settings. They partner with healthcare providers to deliver a comprehensive range of state-of-the-art products and meal delivery systems using leading edge technologies, such as induction, convection, and conduction, to keep delivered meals at the peak of flavor and successfully undergone the Hazard Analysis and Critical Control Point (HACCP) management system and considered HACCP-safe until served. For over a decade, the CCRMC has contracted with Aladdin Temp-Rite LLC for patient meal delivery systems and related supplies, as well as other capital expenditures, such as refrigeration.
On November 13, 2024, the Purchasing Agent issued capital purchase order #31381 with Aladdin Temp-Rite LLC to purchase two (2) air curtain refrigerators in an amount of $31,837.
On March 25, 2025, CCRMC received Aladdin Temp-Rite LLC invoice #1692790 from the Food and Nutrition Services Department and submitted for payment. Payment #263712 was issued on April 9, 2025 and redeemed on April 17, 2025.
On April 28, 2025, Aladdin Temp-Rite LLC contacted CCRMC regarding the status of invoice #1692790 and staff provided the remittance advice for payment #263712. On May 2, 2025, the Auditor-Controller’s Office confirmed the payment had been stolen, altered, and fraudulently redeemed. Per protocol, they contacted Wells Fargo and initiated a fraud claim pending Wells Fargo’s investigation which typically takes 90 days.
On August 7, 2025, CCRMC was notified by the Auditor-Controller’s Office that Wells Fargo denied the fraud claim filed by their office for payment #263712. Based on prior recommendations for fraud protection products by Wells Fargo, which were not implemented, the County is responsible for all losses.
The vendor is entitled to payment for the reasonable value of its services provided under the equitable relief theory of quantum meruit. That theory provides that where a vendor has been asked to provide services without a valid (or otherwise unenforceable) purchase order, and the vendor does so to the benefit of the county, the vendor is entitled to recover the reasonable value of those services. The Department cannot pay the vendor for services rendered that exceed the purchase order limits. As such, the Department recommends that the Board authorize the Auditor-Controller to issue a one-time payment not to exceed $31,836.02 payable to Aladdin Temp-Rite LLC.
Aladdin Temp-Rite LLC is a member of the Vizient Group Purchasing Organization (GPO) and per Administrative Bulletin 600.3, GPO members are exempt from solicitation requirements.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, Aladdin Temp-Rite LLC will not be paid for refrigeration products provided to CCRMC and may impact future access to this vendor’s equipment, which is necessary to ensure patient meal tray temperatures are maintained for patient safety purposes.