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HomeMy WebLinkAboutHA34000 - Lease Agmt - Laundry Svcs 4 Certain HA PropertiesPALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: AUTHORIZE RPM COMPANY TO ENTER INTO A LEASE AGREEMENT WITH WASH MULTI FAMILY LAUNDRY SYSTEMS IN ORDER TO PROVIDE LAUNDRY SERVICES TO CERTAIN HOUSING AUTHORITY PROPERTIES SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING DATE: NOVEMBER 13, 2014 CONTENTS: RPM LETTER DRAFT LEASE AGREEMENT Contract No. HA34000 Recommendation By minute motion, authorize RPM Company to enter into a lease agreement with Wash Multi Family Laundry Systems LLC, (WASH) in order to provide laundry services to the Housing Authority properties more commonly known as Las Serenas and California Villas. Executive Summary Staff desires to negotiate a lease agreement with a laundry service provider in order to provide laundry services to Las Serenas and California Villas. The modified lease agreement will require WASH install all new water efficient front loading washing machines and new dryers as well as provide the Authority with laundry room improvements in an amount not to exceed $ 12,300. The new machines will use approximately half of water of the current top load machines which will save approximately 13 gallons of water per wash load. The Housing Commission reviewed the recommendation at its regularly scheduled meeting of November 12, 2014. Background RPM Company is authorized to enter into agreements as necessary to provide certain services to the Housing Authority properties. At staffs request, RPM Company requested information from various laundry service providers for service at Las Serenas and California Villas regarding new front loading washing machines for the purpose of upgrading the equipment and maximizing water conservation in the process. In June 2010 the Authority Board agreed to enter into a modified lease agreement for ten other Housing Authority Properties with a WEB Corporation, now known as Wash Multi Family Laundry Systems. All new machines were installed at each of those properties in exchange for the modified agreements. We are already seeing the affects of reduced costs due to water savings. Staff Report RPM Company Laundry Services (California Villas and Las Serenas) November 13, 2014 Page 2 of 3 Staff requested proposals from laundry service providers and received the following responses: WASH California Villas Las Serenas COINMACH California Villas Las Serenas Terms 5 Year — no auto renewal; 90% over $0.986 per machine per day 5 Year — no auto renewal; 90% over $0.986 per machine per day Terms 5 Year — no auto renewal; 90% over $1.0848 per machine per day 5 Year — no auto renewal; 90% over $1.0848 per machine per day Machines Cost 14 Speed $1.25/Wash Queen energy $0.75/Dry efficient frontload washers & 7 stackable frontload dryers Improvements Bonus Dryer venting $8,800 replacement and flooring 8 Speed $1.25/Wash Flooring and $3,500 energy efficient $0.75/Dry Paint frontload washers and 8 stackable frontload dryers Machines Cost 14 LG energy $1.25/Wash star frontload $0.75/Dry washers & 7 stackable frontload dryers 8 LG energy $1.25/Wash Paint, flooring, $3,120 star frontload $0.75/Dry and countertops washers and 8 stackable frontload dryers Improvements Bonus Paint, flooring, $6,380 and countertops The agreement will be for a five-year term and the wash and dry cycle prices will remain at $1.25 Wash and $0.75 Dry which is consistent with the current rates at other properties although they slightly vary by property. The commission structure will be $0.986 per machine, per day plus 90% of the residual income. The property keeps the remaining 10% which is used to offset the Authority's costs. WASH will be required to provide or reimburse the Authority for laundry room improvements in a not to exceed amount of $12,300 as part of the new contract. Such improvements will include new ducting, flooring, paint, and plumbing improvements. Both Las Serenas and California Villas are currently on a month -to -month contract with Coinmach, however based on the lower commission levels per machine, staff recommends authorizing RPM Company to enter into a lease agreement for laundry services as described above with WASH. WASH, as part of their reimbursement for improvements, will be replacing the venting system. Coinmach did not include the G'HOGSINGUANET MOORE\HOLSING'd'ALS1 DESERT HOUSING AC7HORIIY\ALL PROPERTIES \LAI-NDRY`.RPM ('O\1PANY LAUNDRY PROVIDER WASH) I I-13-14 DOCX Staff Report RPM Company Laundry Services (California Villas and Las Serenas) November 13, 2014 Page 3 of 3 venting system improvements in their proposal. Fiscal Analysis The fiscal impact to the Authority will be a cost savings due to reduced water consumption as well as a reduction in cost for capital repairs to the laundry room. Submitted by: et M. Moore, Director of Housing JMM:vat oval: n M. Wohlmuth, Executive Director Reviewed: (2, Paul S. Gibson, Director of Finance II►'ied BY HOUSG AUTH ON Il-l3-I14 VERIFIED BY: (ZDK r lwl Original on file with City Clerk's Office G \HOUSINGUANET MOORE\HOUSING\PALM DESERT HOUSING AUTHORITYW.L PROPERTIES \LAUNDRY\RPM COMPANY LAUNDRY PROVIDER WASH 11-13-14 DOCX September 23, 2014 Janet Moore Director of Housing City of Palm Desert — Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 Request: Modify lease agreement with Wash Multifamily Laundry Systems for Las Serenas and California Villas Dear Janet Moore, RPM Company recommends and would like to request a change to the current Coinmach month to month leases for laundry services to those Housing Authority properties known as Las Serenas and California Villas. Both properties laundry equipment are extremely dated. We would like to approve Wash laundry Systems per their proposal, to provide new water efficient front load washing machines on risers and new dryers in addition to the much needed laundry room improvements such as flooring, paint, countertops, vanity with wash basins and new venting for dryers. Wash Laundry systems proposal includes the much needed correction to the dryer venting system at California Villas. The suggested improvements with the venting system will provide more efficient drying time for residents. Also enclosed is a third party Allen Michaels Construction's recommendation to correct venting which is currently restricting air flow. Our current laundry service provider, Coinmach reported there are no venting issues. The following proposals and improvements are provided by Coinmach and Wash Multifamily laundry Systems. Respectfully, Teresa Vakili Contract No. HA34000 DSM: KR/NM/PB Location #: CA7513329 Doc ID: LR-147914-M8D8 LEASE This LEASE AGREEMENT is entered into this day, OCTOBER 22, 2014, by and between the PALM DESERT HOUSING AUTHORITY, acting as Lessor, (hereinafter referred to as "Lessor"), and WASH Multifamily Laundry Systems, LLC (hereinafter referred to as "Lessee"). Lessor does hereby lease to Lessee, and Lessee does hereby accept, the exclusive possession of all common laundry room(s) located on the real property and improvements of 141 units, located at 77107 CALIFORNIA DRIVE, PALM DESERT, CALIFORNIA 92211, and commonly known as CALIFORNIA VILLAS, which real property and improvements are herein referred to as the "property." Lessor warrants and represents that only 0 residential units on the property arc plumbed with their own washer or dryer connections. 1. Representation of Lessor. Lessor does hereby warrant and represent that it is the owner of the property, or the authorized agent thereof, acting with full authority to enter into this Lease, and further, said owner or representative thereof warrants and represents that there is no other lease, license, or other instrument granting the same or similar right in and to the laundry room(s) on the property as provided herein. 2. Exclusive Use and Possession of Leased Premises. Lessor does hereby lease to Lessee the now existing and hereafter created common laundry room(s) on the property, which room(s) is/are described as encompassing approximately 450 square feet, for its use as a laundry room(s). Said room(s) is/are hereinafter referred to as the "Leased Premises". Lessee shall used the Leased Premises solely for the purpose of installing, maintaining and operating laundry equipment as provided herein. 3. Quiet Enjoyment. Lessee may use and possess the Leased Premises to the exclusion of all others, and enjoy the quiet and peaceful enjoyment thereof. 4. Term. The term of this Lease shall be for a period of FIVE (5) year(s), commencing on JANUARY 1, 2015. 5. Rent. Lessee agrees to pay Lessor as Rent, for the use and possession of the Leased Premises, an amount equal to the greater of $5.00 per month, or a percentage of Lessee's gross income from Lessee's washers and dryers (collectively, the "Equipment") in the Leased Premises based on the average per machine daily gross income (double -load machines to be counted as two) as follows: ZERO PERCENT (0%) of a base amount equal to the first $0.986 per machine per day plus NINETY PERCENT (90%) of all monies in excess of such amount, less any applicable gross receipts, sales, use, value added, or similar excise taxes paid by Lessee. The Lessee shall install and maintain TWENTY-EIGHT (28) machines (which shall constitute the total number of machines for purposes of calculating the rent) unless Lessor and Lessee otherwise agree in writing. 6. Equipment. Lessee shall, at its sole expense, install the Equipment in the Leased Premises, and the title to the Equipment shall remain at all times that of the Lessee, and at the conclusion of the term of this Lease, or any extension thereof, Lessee shall remove the Equipment remaining on the Leased Premises. Custom PDIIA Lease apprv'd dgk 8-3-10 77107 CALIFORNIA DRIVE, PALM DESERT, CALIFORNIA 92211 (OCTOBER 22. 2014) a) Lessee shall be responsible for all property taxes, including but not limited to personal, possessory, or real, on the Equipment. b) Lessor agrees to promptly report the need for service to the Equipment. Lessee agrees to repair the Equipment within forty-eight (48) hours (excluding weekends and holidays) of notification by Lessor or any of its representatives. c) Lessee agrees to maintain the Equipment in good working order except when unable to do so during necessary repairs or replacements or for any other reasons beyond Lessee's reasonable control or prevention. 7. Insurance. During the Term hereof, Lessee shall insure against liability for bodily injury and property damage caused by Lessee's negligent acts or omissions up to the amount of $ 1 0,000,000 per occurrence and annual aggregate and the Lessor shall be named as an additional insured under the policies, In addition, Lessee shall indemnify and hold Lessor and the Agency harmless from claims of liability caused by the willful or negligent acts or omissions of Lessee. 8. Utilities and Maintenance. Lessor will provide all utility service necessary for proper operation and maintenance of the Equipment. Lessor shall perform all necessary janitorial and maintenance services for the Leased Premises, including but not limited to, maintaining the Leased Premises in good repair and cleanliness, and the Lessee hereby grants to the Lessor a revocable license to come onto the Leased Premises to perform such services. Lessor warrants that the Leased Premises comply with all federal, state, and local requirements. The Lessee shall not be responsible for property damage or personal injury due to lack of or inadequacy of a floor drain in the Leased Premises. 9. Assignment or Transfer. This Lease shall he binding upon the parties hereto, their respective heirs, personal representatives, successors, assigns, or transferees. The Lessee may not assign or sublet this Lcasc without the prior written consent of Lessor, which may be granted or withheld in the sole discretion of Lessor. If any litigation results in connection with this Lease, the successful party shall be entitled to reasonable attorneys' fees. 10. Home Office Approval. This Lease, and any modification and/or addendum(s) to this Lease, shall require written approval of Lessee's Home Office before becoming effective, and shall immediately become effective upon such approval, with notification to Lessor. If this Lease is not approved by Lessee's Home Office on or before JANUARY 1, 2015, this Lease shall terminate and be of no further force or effect. 11. Non -Competition Clause. Lessor agrees that during the term of this Lcasc, Lessor shall not furnish, provide, lease, rent, or in any manner cause to be installed, or enter into any agreement with anyone other than Lessee to furnish, provide, lease, rent, or in any manner cause to be installed any washers and/ or dryers in any residential unit ("unit") and/or common laundry facility on the property. Lessor agrees that washer and/ or dryer connections shall not be added in any unit. Any breach of this paragraph shall result in Lessee being immediately entitled to damages of $4.16, multiplied by the number of units in which a breach occurred, multiplied by the number of months remaining on this Lease at the time of each breach. Additionally, a breach 2 Custom PDHA Lease apprv'd dgk 8-3-10 77107 CALIFORNIA DRIVE, PALM DESERT, CALIFORNIA 92211 (OCIOBI:K 22. 2014) of any portion of this paragraph by Lessor shall entitle Lessee to terminate this Lease at Lessee's option. 12. Validity of Provisions. The invalidity or illegality of any provision shall not affect the remainder of this Lease. No delay on the part of any party in exercising any right herein shall be deemed to be a waiver thereof, nor shall any waiver of a right preclude any further exercise thereof. 13. N/A 14. N/A 15. On or before JANUARY 1, 2015, Lessee to replace the existing laundry equipment with FOURTEEN (14) new Speed Queen Front -load washer(s), and SEVEN (7) new Speed Queen stack dryer(s). Initial washer price to be $1.25. Initial dryer price to be $0.75. Any increase in such prices shall be subject to the prior written approval of the Lessor, which shall not be unreasonably delayed or withheld. 16. Lessee warrants that the Equipment will be protected by non-resettable coin counters and that the Lessor will receive with each rent check an account history and accountability statement that includes: collection date; days since last collection; gross income collected from washers, gross income collected from dryers; total year-to-date gross income, and total year-to-date Lessor's share of gross income. Lessee shall run a report that compares the income collected from the Equipment with each counter reading recording and provide proof of such upon the request of the Lessor. 17. Default. Lessee shall be in default if it fails to perform any of the obligations under the Lease. Upon default, Lessor shall provide Lessee with written notification describing the default. Lessee shall have thirty (30) days from the date it receives the notice describing the default to cure such default. If Lessee fails to cure the default within thirty (30) days, then Lessee shall be in breach of the Lease and Lessor may terminate the Lease without further notice or opportunity to cure. 18. Notices. All notices shall be sent via certified mail, registered mail; or nationally recognized courier service (i.c. Fedex, United Parcel Service; etc.) to the addresses set forth on the signature page hereof. 19. Termination. Either party to the Lease may terminate this Lease upon thirty (30) days prior written notice (i) if during any period of three consecutive months, the usage of the Equipment does not meet the minimum usage, if any; that is required by this Lease; (ii) in the event of total or partial destruction, for whatever reason, of the Leased Premises, the property, or the Equipment; (iii) in the event of repeated damage to the Equipment caused by vandalism, malicious mischief or the intentional act of any persons; (iv) upon commencement of any action or proceeding for condemnation in exercise of the right of eminent domain, or upon the passage of title to a condemning agency, or all or part of the property; (v) upon Lessee or Lessor insolvency; (vi) if Lessor it its sole and absolute discretion, either changes the use of the property from residential to a use in which laundry facilities would not be available for a period of at least four (4) years or transfers the Property and such transfer will result in such a change of use; or; 3 Custom PDIIA Lease apprv'd dgk 8-3-10 77107 CALIFORNIA DRIVE, PALM DESERT, CALIFORNIA 92211 (OCTOBER 22, 2014) (vii) Lessee's failure to cure any default within the prescribed time period in this Lease. In the event of termination, Lessor shall return to Lessee a pro rata return of the remodeling costs referenced in Section 13 and 14 hereof paid by Lessee. 20. Lessee to pay Lessor a one-time only payment of additional rent for laundry room improvements which includes paint, new flooring and base cove, in the amount of FIVE THOUSAND TWO HUNDRED FIFTY DOLLARS ($5,250.00) within 30 days after Lessee's Home Office has approved this Lease and Lessee's equipment has been installed. 21. Lessee to pay Lessor a one-time only decorating allowance to be used for the dryer venting improvements in the laundry room of TI IREE THOUSAND FIVE HUNDRED FIFTY DOLLARS ($3,550.00) within 30 days after Lessee's Home Office has approved this Lease. [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK] 4 Custom PDI IA Lease apprv'd dgk 8-3-10 77107 CALIFORNIA DRIVE, PALM DESERT, CALIFORNIA 92211 (OCTOBER 22. 2014) Lessee: WASH MULTIFAMILY LAUNDRY Lessor: PALM DESERT HOUSING AUTHORITY, SYSTEMS, LLC A PUBLIC BODY District Sales Manager By: RPM COMPANY Its: AGENT APPROVED: WASII Multifamily Laundry Systems, LLC., LESSEE By: IIOME OFFICE: 100 N. SEPULVEDA BLVD.. 121" 'I'F.RESA VAKILI FL., EL SEGI.JNDO. CA 90245 Its: VICE PRESIDENT Date: PAY RENT TO: By: Its: Date: Name: PALM DESERT HOUSING AUTHORITY C/O: CALIFORNIA VILLAS Address: 77107 CALIFORNIA DRIVE (OFFICE) PALM DESERT, CA 92211 5 Custom PDIIA Lease apprv'd dgk 8-3-10 va/JLW LEASE DSM: KIZ/ NM/ I'13 Location #: CA7513433 Doc ID: LR-147939-J8J2 This LEASE AGREEMENT is entered into this day, OCTOBER 22, 2014, by and between the PALM DESERT HOUSING AUTHORITY, acting as Lessor, (hereinafter referred to as "Lessor"), and WASH Multifamily Laundry Systems, LLC (hereinafter referred to as "Lessee"). Lessor does hereby lease to Lessee, and Lessee does hereby accept, the exclusive possession of all common laundry room(s) located on the real property and improvements of 150 units, located at 73-315 COUNTRY CLUB DRIVE, PALM DESERT, CALIFORNIA 92260, and commonly known as LAS SERENAS, which real property and improvements are herein referred to as thc "property." Lessor warrants and represents that only 0 residential units on the property are plumbed with their own washer or dryer connections. 1. Representation of Lessor. Lessor does hereby warrant and represent that it is the owner of the property, or thc authorized agent thereof, acting with full authority to enter into this Lease, and further, said owner or representative thereof warrants and represents that there is no other lease, license, or other instrument granting the same or similar right in and to the laundry room(s) on the property as provided herein. 2. Exclusive Use and Possession of Leased Premises. Lessor does hereby lease to Lessee the now existing and hereafter created common laundry room(s) on the property, which room(s) is/are described as encompassing approximately 450 square feet, for its use as a laundry room(s). Said room(s) is/arc hereinafter referred to as the "Leased Premises". Lessee shall used the Leased Premises solely for the purpose of installing, maintaining and operating laundry equipment as provided herein. 3. Quiet Enjoyment. Lessee may use and possess the Leased Premises to the exclusion of all others, and enjoy the quiet and peaceful enjoyment thereof. 4. Term. The term of this Lease shall be for a period of FIVE (5) year(s), commencing on JANUARY 1, 2015. 5. Rent. Lessee agrees to pay Lessor as Rent, for the use and possession of the Leased Premises, an amount equal to the greater of S5.00 per month, or a percentage of Lessee's gross income from Lessee's washers and dryers (collectively, the "Equipment") in the Lcascd Premises based on the average per machine daily gross income (double -load machines to be counted as two) as follows: ZERO PERCENT (0%) of a base amount equal to the first $0.986 per machine per day plus NINETY PERCENT (90%) of all monies in excess of such amount, less any applicable gross receipts, sales, use, value added, or similar excise taxes paid by Lessee. The Lessee shall install and maintain SIXTEEN (16) machines (which shall constitute the total number of machines for purposes of calculating the rent) unless Lessor and Lessee otherwise agree in writing. 6. Equipment. Lessee shall, at its sole expense, install the Equipment in the Leased Premises, and the title to the Equipment shall remain at all times that of the Lessee, and at the conclusion of the term of this Lease, or any extension thereof, Lessee shall remove the Equipment remaining on the Lcascd Premises. Custom PDHA Lease apprv'd dgk 8-3-10 73-315 COUNTRY CLUB DRIVE, PALM DESERT, CALIFORNIA 92260 (OCTOBER 22. 2014) a) Lessee shall be responsible for all property taxes, including but not limited to personal, possessory, or real, on the Equipment. b) Lessor agrees to promptly report the need for service to the Equipment. Lessee agrees to repair the Equipment within forty-eight (48) hours (excluding weekends and holidays) of notification by Lessor or any of its representatives. c) Lessee agrees to maintain the Equipment in good working order except when unable to do so during necessary repairs or replacements or for any other reasons beyond Lessee's reasonable control or prevention. 7. Insurance. During the Term hereof, Lessee shall insure against liability for bodily injury and property damage caused by Lessee's negligent acts or omissions up to the amount of $10,000,000 per occurrence and annual aggregate and the Lessor shall be named as an additional insured under the policies, In addition, Lessee shall indemnify and hold Lessor and the Agency harmless from claims of liability caused by the willful or negligent acts or omissions of Lesscc. 8. Utilities and Maintenance. Lessor will provide all utility service necessary for proper operation and maintenance of the Equipment. Lessor shall perform all necessary janitorial and maintenance services for the Leased Premises, including but not limited to, maintaining the Leased Premises in good repair and cleanliness, and the Lessee hereby grants to the Lessor a revocable license to come onto the Leased Premises to perform such services. Lessor warrants that the Leased Premises comply with al] federal, state, and local requirements. The Lessee shall not be responsible for property damage or personal injury due to lack of or inadequacy of a floor drain in the Leased Premises. 9. Assignment or Transfer. This Lease shall be binding upon the parties hereto, their respective heirs, personal representatives, successors, assigns, or transferees. The Lessee may not assign or sublet this Lease without the prior written consent of Lessor, which may he granted or withheld in the sole discretion of Lessor. If any litigation results in connection with this Lease, the successful party shall be entitled to reasonable attorneys' fees. 10. Home Office Approval. This Lease, and any modification and/or addendum(s) to this Lease, shall require written approval of Lessee's Home Office before becoming effective, and shall immediately become effective upon such approval, with notification to Lessor. If this Lease is not approved by Lessee's Home Office on or before JANUARY 1, 2015, this Lease shall terminate and be of no further force or effect. 11. Non -Competition Clause. Lessor agrees that during the term of this Lease, Lessor shall not furnish, provide, lease, rent, or in any manner cause to be installed, or enter into any agreement with anyone other than Lessee to furnish, provide, lease, rent, or in any manner cause to be installed any washers and/ or dryers in any residential unit ("unit") and/or common laundry facility on the property. Lessor agrees that washer and/ or dryer connections shall not be added in any unit. Any breach of this paragraph shall result in Lessee being immediately entitled to damages of $4.16, multiplied by the number of units in which a breach occurred, multiplied by the number of months remaining on this Lease at the time of each breach. Additionally, a breach 2 Custom PDIIA Lease apprv'd dgk 8-3-10 73-315 COUNTRY CLUB DRIVE, PALM DESERT, CALIFORNIA 92260 (OCTOBER 22. 2014) of any portion of this paragraph by Lessor shall entitle Lessee to terminate this Lease at Lessee's option. 12. Validity of Provisions. The invalidity or illegality of any provision shall not affect the remainder of this Lease. No delay on the part of any party in exercising any right herein shall be deemed to be a waiver thereof, nor shall any waiver of a right preclude any further exercise thereof. 13. N/A 14. N/A 15. On or before JANUARY 1, 2015, Lessee to replace the existing laundry equipment with EIGHT (8) new Speed Queen Front -load washer(s), THREE (3) new Speed Queen stack dryer(s), and TWO (2) new Speed Queen single dryer(s). Initial washer price to be $1.25. initial dryer price to be $0.75. Any increase in such prices shall be subject to the prior written approval of the Lessor, which shall not be unreasonably delayed or withheld. 16. Lessee warrants that the Equipment will he protected by non-resettable coin counters and that the Lessor will receive with each rent check an account history and accountability statement that includes: collection date; days since last collection; gross income collected from washers, gross income collected from dryers; total year-to-date gross income, and total year-to-date Lessor's share of gross income. Lessee shall run a report that compares the income collected from the Equipment with each counter reading recording and provide proof of such upon the request of the Lessor. 17. Default. Lessee shall be in default if it fails to perform any of the obligations under the Lease. Upon default, Lessor shall provide Lessee with written notification describing the default. Lessee shall have thirty (30) days from the date it receives the notice describing the default to cure such default. If Lessee fails to cure the default within thirty (30) days, then Lessee shall be in breach of the Lease and Lessor may terminate the Lease without further notice or opportunity to cure. 18. Notices. All notices shall be sent via certified mail, registered mail; or nationally recognized courier service (i.c. Fedex, United Parcel Service; etc.) to the addresses set forth on the signature page hereof. 19. Termination. Either party to the Lease may terminate this Lease upon thirty (30) days prior written notice (i) if during any period of three consecutive months, the usage of the Equipment does not meet the minimum usage, if any; that is required by this Lease; (ii) in the event of total or partial destruction, for whatever reason, of the Leased Premises, the property, or the Equipment; (iii) in the event of repeated damage to the Equipment caused by vandalism, malicious mischief or the intentional act of any persons; (iv) upon commencement of any action or proceeding for condemnation in exercise of the right of eminent domain, or upon the passage of title to a condemning agency, or all or part of the property; (v) upon Lessee or Lessor insolvency; (vi) if Lessor it its sole and absolute discretion, either changes the use of the property from residential to a use in which laundry facilities would not be available for a period of at least four (4) years or transfers the Property and such transfer will result in such a change of use; or; 3 Custom PDIiA Lease apprv'd dgk 8-3-10 73-315 COUNTRY CLUB DRIVE, PALM DESERT, CALIFORNIA 92260 (OCTOBER 22. 2014) (vii) Lessee's failure to cure any default within the prescribed time period in this Lease. In the event of termination, Lessor shall return to Lessee a pro rata return of the remodeling costs referenced in Section 13 and 14 hereof paid by Lessee. 20. Lessee to pay Lessor a one-time only payment of additional rent for laundry room improvements which includes paint, new flooring and new counter tops, in the amount of THREE THOUSAND FIVE 1IUNDRED DOLLARS (S3,500.00) within 30 days after Lessee's Ilome Office has approved this Lease and Lessee's equipment has been installed. (THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK) 4 Custom PDIIA Lease apprv'd dgk 8-3-10 73-315 COUNTRY CLUB DRIVE, PALM DESERT, CALIFORNIA 92260 (OCTOBER 22. 2014) Lessee: WASH MULTIFAMILY LAUNDRY Lessor: PALM DESERT HOUSING AUTHORITY, SYSTEMS, LLC A PUBLIC BODY By: RPM COMPANY District Sales Manager Its: AGENT APPROVED: WASII Multifamily Laundry Systems, LLC., LESSEE 13y: I1OME OFFICE: 100 N. SEPULVEDA BLVD., 12111 TERESA VAKILI FL., EL SEGUNDO, CA 90245 By: Its: Its: VICE PRESIDENT Date: PAY RENT TO: Date: Name: PALM DESERT HOUSING AUTHORITY CIO: LAS SERENAS Address: 73-315 COUNTRY CLUB DRIVE (OFFICE) PALM DESERT, CA 92260 5 Custom PDHA Lease apprv'd dgk 8-3-10