HomeMy WebLinkAboutRPM - Laundry Svcs for HA PropertiesPALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: AUTHORIZE RPM COMPANY TO ENTER INTO A MODIFIED
AGREEMENT WITH WEB MULTI -FAMILY LAUNDRY SYSTEMS IN
ORDER TO PROVIDE LAUNDRY SERVICES TO THE HOUSING
AUTHORITY PROPERTIES
SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING
DATE: JUNE 24, 2010
CONTENTS: WEB PROPOSAL
Recommendation
By minute motion, authorize RPM Company to enter into a modified agreement with WEB
Multi -Family Laundry Systems (WEB) in order to provide continued laundry services to the
Housing Authority properties.
Commission Recommendation
The Housing Commission has reviewed the recommendation at its regularly scheduled
meeting of June 9, 2010. The Housing Commission recommended that the Housing
Authority authorize RPM Company to enter into a modified agreement with WEB.
Executive Summary
Staff desires to negotiate a modified agreement with WEB Multi -Family Laundry Systems
in order to provide laundry services to ten Housing Authority properties. Such modification
will allow the current multiple agreements to be combined into one agreement. This will
allow the Authority to require that WEB install all new water efficient front loading washing
machines and new dryers as well as provide the Authority with approximately $15,000 in
laundry room improvements. The new machines will use only half (12.8 gallons vs. 26.1
gallons) of water of the current top load machines which will save 13 gallons of water per
wash load.
Background
RPM Company is authorized to enter into agreements as necessary to provide certain
services to the Housing Authority properties. At staff's request, RPM Company requested
information from our main laundry service provider regarding new front loading washing
machines for the purpose of upgrading the equipment and maximize water conservation in
the process.
(Jane M. Moore
Director of Housing
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Paul S. Gibson
Director of Finance
Staff Report
RPM Company WEB Proposal
June 24, 2010
Page 2of2
Previously each of the properties all have had their own laundry agreements which has
resulted in varying contract terms. Staff desires to consolidate the terms into one
agreement, thereby extending the terms of some existing agreements and renewing others
in exchange for a combined agreement which will provide for brand new front loading
washing machines and brand new dryers at ten of the Housing Authority properties. Two
properties, California Villas and Las Serenas are in contract with another vendor until 2012
and 2014, respectively. Upon expiration the contracts will be placed on month -to -month
terms. Terms and conditions of these two contracts will be reviewed at that time for
appropriate action.
The agreement will be for a five-year term with rates of $1.00 -$1.25 per wash cycle and
.75 cents per dry cycle. This is consistent with the current rates tenants are charged
although currently they slightly vary by property. WEB's commission structure is $25.00
per machine, per month plus 10% of the residual income. The property keeps the
remaining 90% which is used to offset the Authority's costs. Estimated annual payments to
the Authority are $75,000. WEB has also agreed to provide a $15,230 allowance for
laundry room improvements. Such improvements will include new flooring, paint, and
plumbing improvements. The current contracts vary from $21.00 per machine to $28.00
per machine and up to 50% of the residual income with no allowances for improvements.
Staff recommends authorizing RPM Company to modify the agreements. The modification
will allow the current multiple agreements to be combined into one agreement in exchange
for all new water efficient front loading washing machines and new dryers as well as
provide the Authority with approximately $15,000 in laundry room improvements. The new
machines are estimated to save 13 gallons of water per wash load. The current average
per household is 2 loads per week which would save approximately 700,000 gallons of
water per year or the equivalent of filling an olympic size swimming pool.
Fiscal Analysis
The fiscal impact to the Authority will be a cost savings due to reduced water consumption
as well as a reduction in capital repairs of approximately $15,000 for the laundry areas.
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RPM
Ms. Teresa Vakili
Palm Springs Housing Authority Properties
I) Candlewood, 74-000 Shadow Mountain
2) Catalina Gardens, 73-600 Catalina Way
3) Desert Pointe, 43-805 Monterey Way
4) Laguna Palms, 73-875 Santa Rosa Way
5) Neighbors, 73-535 Santa Rosa Way
6) One Quail Place, 72-600 Fred Waring Dr.
7) Pueblos, 73-695 Santa Rosa Way
8) Taos Palms, 44-830 Las Palmas
9) La Rocca Villas, 42-135 Golden Tagle Lane
10) Palm Village, 73-650 Santa Rosa Way
Web's Exclusive Services:
Proposal For-
.
Laundry Service
• AM machines will be equipped with non-resettable coin counters.
• Regularly scheduled collections will be monitored by a computerized audit of these counters.
• You'll receive a full accounting of laundry room activity in detail in the Web Accountability Statement and
History (W.A.S.H.) report.
• Web will provide $ I0,000,000 liability insurance over the laundry room.
• Web will install, maintain and service the laundry equipment at no additional charge.
Option
' Option I
Term Commission Equipment Vend Bonus
60 months 90% commission after New front load washers $1.25ash 1 $15,505 Bonus for
$25.00 per machine per and new dryers. $.75 dry laundry room
month improvements
Catalina Gardens and Pueblos vend prices will be increased to $1.00 wash and $.75 dry / 45
minutes per load.
Thank you for allowing me the opportunity to submit this proposal. This proposal is valid for 60 days from May
24, 2010. Please let us know if you need more time to make a decision.
Please fill out the attached form and send it back to me and I'll see that the contract is typed and sent to you
for your review and signature.
You may reach me on my cell phone at (714) 273-8023 or at my office at (714) 685-7739.
With Web Laundry Service you will receive the best laundry service available. We help you provide your
tenants with a pleasant, trouble -free laundry room.
As you district sales manager I look forward to doing business with you and having a long and mutually
beneficial relationship.
• Date:
Page 1
6/8/10