June 11, 2020 Directors Report

OUTDOOR RESORT - PALM SPRINGS OWNER’S ASSOCIATION BOARD OF DIRECTORS STAFF REPORT

Board Meeting Date:

June 11, 2020

New

X

Unfinished

Discussion

Consent Agenda

Agenda Item: Description:

Laundry Equipment - $99,097 (Budgeted - Reserves) Replacement of Machines at Multiple Locations

Submitted By:

Byron Jessie, Facilities Manager

Date: June 4, 2020

Background: Over the past several years the existing laundry equipment has declined requiring more and more frequent repairs and increasing machine downtime, and ultimately unhappy Owners. This coupled with not having the latest technology regarding efficiency, has increased the operating expense substantially with more expected in the future. Most of the machines range in manufactured years from 2008-2013 and the average lifespan for commercial laundry equipment is 5-8 years, compared to the Reserve Analyst estimates of 10 year. As its useful life begins to wane, a machine typically starts to exhibit mechanical and electrical problems. This usually means an investment of time and money for repairs and parts. Sometimes a quick fix can put the appliance back into circulation for many more hours of use. Other times, one problem may occur after another. While it can become a bit of a guessing game, it’s safe to say that the older and more worn a machine becomes, the more likely it will need repairs and new parts. In addition, broken or not fully functioning equipment can quickly cause problems with providing clean laundry. Replacement of the old equipment will provide benefits beyond improved reliability and reduced service costs. I contacted PWS, the nation's premier distributor, developer, and broker to the commercial laundry industry, which is a "one-stop shop" offering an extensive range of products and services under one roof, to assist. Each machine will also be integrated with the existing Smart Card system, through Smart Vend for convenience, and each machine will be outfitted with new card hardware. In accordance with the 2021 Anticipated Reserve Expenditure list there is a provision for every piece of laundry equipment, except for the front-loading washers at main laundry/satellites, to be replaced within the upcoming fiscal year starting July 1, 2020. This can easily be done within the budgeted amount of $99,087 since we have gotten preliminary numbers for $84,000 including tax, card readers and installation. I would additionally propose that we include and replace at this time all the front-loading LG washers in main laundry/satellites as they have started to exhibit a pattern of frequent repairs and the LG washers are not as durable as the Speed Queen machines. If we include these machines it would increase the cost by $17,400 and I would put the overall expense at an amount not to exceed $102,000. Motion(s) for Consideration: To approve an expenditure in an amount not to exceed $84,000, from Reserves, to replace the laundry equipment as listed in the 2021 Reserve Study. OR To approve an expenditure in an amount not to exceed $102,000, from Reserves, to replace all the laundry equipment at all locations in the Resort. Designated Funding: Reserves

Board Action:

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