TO: Board of Supervisors
FROM: Jennifer Palmer, Director of Housing and Homeless Services
REPORT BY: Alex Carrasco, Staff Service Analyst
SUBJECT: Housing Authority Laundry Budget Adjustment
RECOMMENDATION
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Director of Housing & Homeless Services requests approval of a Budget Adjustment to purchase 12 commercial washing machines and 12 dryer units (4/5 vote required):
1. Increase Transfer Out Appropriation $39,500 (Fund 5060, Org 5060000, Obj 57900) offset by available fund balance;
2. Increase Transfer In Revenue $39,500 (Fund 5060, Org 5060501, 5060502, 5060503, Obj 49900);
3. Increase Donations Revenue $32,000 (Fund 5060, Org 5060501, 5060502, 5060503, Obj 47500);
4. Increase Household Expense Appropriations $64,000 (Fund 5060, Org 5060501, 5060502, 5060503) to purchase laundry equipment; and
5. Increase Maintenance-Equipment Appropriations $7,500 (Fund 5060, Org 5060501, 5060502, 5060503) for maintenance of the laundry equipment.
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EXECUTIVE SUMMARY
Today’s action will increase the appropriation for Household Expenses and Maintenance-Equipment by $71,500, with offsetting revenue by available fund balance and a donation from Cinco de Mayo Golf, Inc., and the Napa Valley Migrant Farm Worker Housing Committee. Each of the three county-owned Farmworker Centers’ laundry rooms would receive equipment.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Housing Authority Fund 5060 Org 5060501, 5060502, and 5060503 |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Recommendation made in consideration of available fund balance. County will purchase equipment with offsetting revenue from donation and laundry revenue. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
There will be ongoing maintenance of the equipment. |
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Consequences if not approved: |
Lodgers and staff residing at farmworker centers will be inconvenienced with traveling off site for an amenity they come to depend, especially given their heavy workload. Additionally, it may be difficult to find another donor willing to contribute nearly 50% of cost. |
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County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
The three (3) County owned Farmworker Centers (Centers) provide lodgers with safe and affordable housing eleven (11) months out of the year. During their stay, lodgers enjoy access to amenities such as onsite laundry facilities. Each Center has four (4) top loading, coin-operated, washing machines and four (4) gas, coin-operated, dryers. At this time, a majority of the twelve (12) washing machines and twelve (12) dryers are outdated in need of regular repair, or in some cases no longer repairable.
The Housing Authority has a now-expired lease and revenue-sharing agreement (Agreement No 180089C) with Coinmach (now CSC ServiceWorks). Due to service-territory changes and associated staffing shortages, Coinmach is unwilling to renew a service agreement. Housing Authority staff released a Request for Proposal (RFP) the provision of twelve (12) new commercial washing machines and dryer units, including revenue sharing agreements and maintenance contracts. There were no respondents. Staff have subsequently reached out directly to numerous Bay Area laundry equipment service providers and struggled to identify any vendor able to provide the necessary services due to staffing shortages and the rural location of the centers. As a result, and the urgency of restoring on-site, affordable laundry service for lodgers, staff analyzed the cost-benefit of purchasing commercial units, collecting all revenues directly, and utilizing increased revenues to offset a single maintenance-only service contract with a local service technician.
Housing Authority staff presented the Housing Commission with three estimates from local and regional vendors. Housing Commissioners voted unanimously to recommend the Housing Authority proceed with purchasing. Once purchased, the equipment will lead to decreased water and electrical usage given that the new equipment is water/energy efficient. Cinco de Mayo Golf Inc. and the Napa Valley Migrant Farm Worker Housing Committee have generously agreed to donate fifty (50) percent toward the purchase of the new laundry equipment.
Today’s action recommends the purchase of new laundry equipment and budget adjustments to recognize expenditure and offsetting revenue.