HomeMy WebLinkAboutC34830 - 5yr Renewal - Laundry Services Contract No. HA34830
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
REQUEST: AUTHORIZE RPM COMPANY TO ENTER INTO A FIVE YEAR
LEASE RENEWAL AGREEMENT WITH WASH MULTI FAMILY
LAUNDRY SYSTEMS IN ORDER TO CONTINUE PROVIDING
LAUNDRY SERVICES TO CERTAIN HOUSING AUTHORITY
PROPERTIES
SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING
JESSICA GONZALES, MANAGEMENT ANALYST - HOUSING
DATE: NOVEMBER 12, 2015
CONTENTS: RPM Letter
WASH Laundry Services Proposal
Sample Agreement
Recommendation
By minute motion, authorize RPM Company to enter into a five (5) year lease renewal
agreement with Wash Multi Family Laundry Systems LLC, (WASH) in order to continue
providing laundry services to the Housing Authority properties more commonly known
as Candlewood, Catalina Gardens, Desert Pointe, Laguna Palms, La Rocca Villas,
Neighbors, One Quail Place, Palm Village, Pueblos and Taos Palms.
Commission Recommendation
The Housing Commission will review this item at its meeting of November 4, 2015.
Staff will provide a verbal report upon request.
Executive Summary
Staff desires to enter into a five (5) year lease renewal agreement with WASH to
continue providing laundry services to Candlewood, Catalina Gardens, Desert Pointe,
Laguna Palms, La Rocca Villas, Neighbors, One Quail Place, Palm Village, Pueblos
and Taos Palms. The renewal lease agreement will maintain the current cost at $1.25
for wash and $0.75 for dryer and provide install of new water efficient front loading
washing machines and new dryers in two (2) years.
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 a proposal for renewal option from WASH for service at Candlewood,
Catalina Gardens, Desert Pointe, Laguna Palms, La Rocca Villas, Neighbors, One Quail
Place, Palm Village, Pueblos and Taos Palms to continue providing laundry services.
Staff Report
WASH Laundry Services (Candlewood,Catalina Gardens,Desert Pointe,Laguna Palms,La Rocca Villas, Neighbors,
One Quail Place,Palm Village,Pueblos and Taos Palms)
November 12, 2015
Page 2 of 3
WASH has provided two (2) renewal options and RPM is recommending option No. 2.
The renewal lease agreement option recommended will provide a five (5) year term, will
maintain the current cost at $1.25 for wash and $0.75 for dryer and provide install of
new water efficient front loading washing machines and new dryers in two (2) years.
WASH installed all new machines at each of the Properties in exchange for the modified
five (5) year agreements in 2010. Additionally, WASH completed laundry room
improvements such as new ducting, flooring, paint, and plumbing improvements.
The renewal lease agreement terms and prices are consistent with current laundry
services rates. The commission structure will be that the Authority property will receive
90% of the monies after $19.35 per machine per month.
Based on no increase in the current wash and dry prices, staff recommends authorizing
RPM Company to enter into a five (5) year lease renewal agreement for laundry
services as described above with WASH.
Fiscal Analysis
The fiscal impact to the Authority will be the same lease cost and continued savings due
to reduced water consumption.
Submitted by: Department Head:
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Ica Gonza es anagement Analyst- Housing anet . Moore, Director of Housing
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apartment management services
October 22,2015
Janet Moore,Director of Housing
City of Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert,CA 92260
RE: Renewal of the lease agreement with Wash Multifamily Laundry Systems and Carlos Ortega Villas
Dear Ms.Moore:
The current lease agreements with multiple Housing Authority Properties and Wash Multifamily Laundry
Systems are due to expire December 1, 2015. Wash Laundry Systems installed brand new front load,
energy efficient washers and dryers, including some improvements such as paint and flooring to our
laundry rooms December 2010. Enclosed you will find Wash Laundry Systems renewal options 1&2.
RPM Company recommends the renewal with option 2 which will maintain the current cost of wash at
$1.25 and the dryer at $ 0.75. Option two (2) also offers brand new machines in just two years. The
renewal of the agreement between the Housing Authority and Wash will cover the following properties:
Candlewood Neighbors
Catalina Gardens One Quail Place
Desert Pointe Palm Village
Laguna Palms Pueblos
La Rocca Villas Taos Palms
In addition, I would like to request we add a new agreement for Carlos Ortega Villas, scheduled to open
December 2015 to this group,this will keep agreements consistent with the majority of the portfolio.
Respectful ,
eresa Vakili
LODI REGIONAL OFFICE PALM DESERT REGIONAL OFFICE ONTARIO REGIONAL OFFICE
1420 s.mills avenue,suite m 72-600 fred waring 3333 e.concours building 7,suite 7101
lodl,ca 95242 palm desert,ca 92260 ontario,ca 91764
209 333 3400• fax 209 333 3430 760 6741139• fax 760 674 1189 909 944 3200• fax 909 944 3299
SAMPLE
LEASE
This LEASE AGREEMENT is entered into this day, DATE, by and between the PALM
DESERT HOUSING AUTHORITY,acting as Lessor, (hereinafter referred 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# units, located at 12345 Jane
Street. Palm Desert, CA 92260, and commonly known as Name, which real property and
improvements are herein referred to as the "property." Lessor warrants and represents that only 0
residential units on the property are plumbed with their own washer or dryer connections.
l. 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 # 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 DATE.
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 $19.35
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 EIGHT (8) 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.
a) Lessee shall be responsible for all property taxes, including but not limited
to personal, possessory, or real, on the Equipment.
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Custom PDHA Lease apprv'd dgk 8-3-10
SAMPLE
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 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 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 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 , 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
of any portion of this paragraph by Lessor shall entitle Lessee to terminate this Lease at Lessee's
option.
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Custom PDHA Lease apprv'd dgk 8-3-10
SAMPLE
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. On or before , Lessee to replace the existing laundry equipment with
( ) new front-load washer(s), ( ) new stack dryer(s), and ( ) new
single dryer(s). Initial washer price to be$1.25. Initial dryer price to be$.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.
14. 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.
15. 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.
16. Notices. All notices shall be sent via certified mail, registered mail; or nationally
recognized courier service (i.e. Fedex, United Parcel Service; etc.)to the addresses set forth on
the signature page hereof.
17. 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;
(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.
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Custom PDHA Lease apprv'd dgk 8-3-10
SAMPLE
Lessee: WASH MULTIFAMILY LAUNDRY Lessor: THE PALM DESERT-HOUSING
SYSTEMS,LLC AUTHORITY
By: RPM COMPANY
District Sales Manager
Its: AGENT
APPROVED: WASH Multifamily Laundry Systems,
LLC.,LESSEE By:
HOME OFFICE: 100 N. SEPULVEDA BLVD., 12TH TERESA VAKILI
FL.,EL SEGUNDO,CA 90245
Its: VICE PRESIDENT
By:
Date:
Its:
PAY RENT TO:
Date:
Name: PALM DESERT HOUSING AUTHORITY
C/O:CATALINA GARDENS
Address: 73600 CATALINA WAY(OFFICE)
PALM DESERT,CA 92260
Tax ID: 95-2859459
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Custom PDHA Lease apprv'd dgk 8-3-10
Ili e
ILaundry Services Proposal multifamily laundry systems
RPM 4, ,
Ms. Teresa Vakili •
,,,,,,, --..' �_
(760) 674-1139 jrn
teresavakiii@rpmcompany.net °` `
Dear Teresa,
Thank you for the opportunity to present this proposal for laundry room services. We would be honored to be your
laundry service provider of choice.
For more than 65 years,property owners and managers have trusted WASH to provide unsurpassed service and su-
perior laundry room operations. If you're comparing us with other laundry providers,here's what makes WASH differ-
ent(and better!):
Everything we do begins and ends with a continual commit-ment to best-in-class ser-
vice.
Sew*
elWe offer peace of mind when it comes to financial transactions.WASH ensures the
Mo„, security of your revenue every step of the way.
isOver 45,000 locations, servicing a total of over 2.5 million people, have placed their
Tniu trust in WASH.
E3We offer more choices that suit your needs. WASH will work with you to find just the
°pttont right blend of products and services for your property.
t'r� WASH's commitment to customer service, technical assistance,and our dedicated
%"°`" employees provide unparalleled support.
Perhaps our best selling point is the relationship we have with our customers. On average, our
customers stay with us for 19 years!
With this proposal,it is our goal to provide you with all the information that you need to make a confi-
dent decision to contract with WASH Multifamily Laundry Systems. If you should require any additional
information, please don't hesitate to contact me.
Best regards,
Keith'Rokosz
714-273-8023
krokosz@washlaundrv.com
WASH Multifamily Laundry Systems, LLC
100 N.Sepulveda Blvd.. 12'h Floor I El Segundo,CA 90245 1800.421.6897
1
Laundry Equipment Options 74002-74004 Shadow Mountain Dr., Palm Desert
10/21/2015
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New Speed Queen Laundry Equipment Proposal Option
Option Term Commission Equipment Vend Price
Lessor to receive 90%(ninety (2) Front Load Washers $1.25 Wash
1 5 years percent) of the monies after$26.10 (1)Top Load Washer $1.00 Dry
per machine per month (3) Single Dryers
WASH Multifamily Laundry Systems,LIC
100 N.Sepulveda Blvd., 12'h Floor I El Segundo.CA 90245 1800,421.6897
2
74002-74004 Shadow Mountain Dr., Palm Desert
Laundry Equipment Options
10/21/2015
11. it'Q
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Speed Queen.
Existing Laundry Equipment Proposal Option
)
Option Term Commission Equipment Vend Price
Lessor to receive 90% (ninety (2) Front Load Washers $1.25 Wash
2 5 years percent) of the monies after$19.35 (1) Top Load Washer $0.75 Dry
per machine per month (3) Single Dryers
WASH Laundry will replace the machines with new machines one time after twenty four (24) months
from the commencement date.
WASH Multifamily Laundry Systems, LIC
100 N.Sepulveda Blvd., 12-h Floor 1 El Segundo.CA 90245 1 800.421.6897
3