Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Agreement with Encore Textile Services, LLC dba Emerald Textiles Services, LLC to Provide Laundry-Linen Rental Services
RECOMMENDATION:
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Adopt a resolution authorizing an amendment to the agreement with Encore Textile Services, LLC dba Emerald Textiles Services, LLC, extending the term of the agreement by two years through January 31, 2027, and increasing the amount of the agreement by $1,446,500, to an amount not to exceed $2,746,500.
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BACKGROUND:
In April 2021, San Mateo Medical Center (SMMC) completed a Request for Proposals (RFP) for laundry-linen rental services. Emerald Textiles was determined to be the best fit based on its range of services. On January 25, 2022, this Board approved an agreement with Emerald to provide laundry-linen services for the term of February 1, 2022 through January 31, 2025, in an amount not to exceed $1,300,000. On March 23, 2022, the parties amended the agreement to reassign the original agreement from Emerald Textiles to Encore Textile Services, LLC dba Emerald Textiles Services, LLC (Emerald). On November 25, 2024, the parties amended the agreement to increase the amount of the agreement by $25,000, to an amount not to exceed $1,325,000.
DISCUSSION:
SMMC has a continuing need for laundry-linen rental services since it has been determined to be more cost effective to rent linens and have them cleaned by the vendor than to take this service in-house. During the term of the current agreement, demand for Emerald’s services increased due to the relocation of SMMC’s Environmental Services team from the previous administration building, which eliminated access to washers and dryers. Consequently, all patient clothing, cloth cubicle curtains, and mop heads have been transitioned to Emerald for laundering services. SMMC is recommending that this Board approve an amendment with Emerald, extending the agreement for an additional two years, with the associated funding increase, as outlined in the original RFP.
This amendment is coming to this Board late due to prolonged negotiations with the vendor.
At the end of the term of this agreement, SMMC plans to either issue an RFP or purchase services from a participant of SMMC’s chosen Group Purchasing Organization vendor, Vizient.
County Attorney has reviewed and approved the resolution and amendment as to form.
The resolution contains the County’s standard provisions allowing amendment of the County fiscal obligations by a maximum of $25,000 (in aggregate).
The County’s Contract Compliance Committee has approved a waiver request for a five-year term for this agreement.
It is anticipated that clean linen will be delivered on time 100% of the time.
PERFORMANCE MEASURE:
|
Measure |
FY 2024-25 Estimated |
FY 2025-26 Projected |
|
Percentage of clean linen delivered on time |
100% |
100% |
EQUITY IMPACT:
Emerald’s continued laundry-linen services will positively impact equitable health outcomes because delivery of laundry-linen services at SMMC, a public safety net hospital, addresses community need. Within the past 18 months the largest cohorts of specialty care patients at SMMC were female (53%), Hispanic or Latino (57%), and primarily Spanish speaking (54%).
FISCAL IMPACT:
The term of the amended agreement is February 1, 2022 through January 31, 2027. The amendment increases the amount payable under the agreement by $1,446,500 to an amount not to exceed $2,746,500 for the five-year term. Funds in the amount of $301,354 are included in the SMMC FY 2024-25 Adopted Budget. Funds in the amount of $723,250 are included in the SMMC FY 2025-26 Recommended Budget. Similar arrangements will be made for future years.
Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care is covered by the County’s General Fund contribution to SMMC and is within the existing annual appropriation.