On June 26, 2001, your Board approved an Agreement with Golden State Services to provide laundry and linen services to San Mateo Medical Center. Golden State Services was selected after a Request for Proposals process conducted early that year. The agreement was subsequently amended to include Burlingame Long Term Care.
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Golden State Services provides linen and laundry management at San Mateo Medical Center and Burlingame Long Term Care. Golden State Services will process 2,083,910 pounds of soiled linen per year at both facilities. The cost per pound is 0.3325 for a maximum cost of $692,900.07 for the first year, $720,616.07 for the second year, and $749,440.71 for the third year. Management fees will cost $266,232 for the first year, $276,881 for the second year, and $287,956 for the third year. $30,000 will cover ancillary services such as sewing, mending, and steam-pressing. The bulk processing service fee per dry weight pound processed will increase no more than 4%, based on the Consumer Price Index. This increase will take effect on the second and third year of the agreement. The fees for all other services remain the same.
Golden State Services will provide four full-time employees at San Mateo Medical Center and another four fulltime employees at Burlingame Long Term Care.
A waiver of the Request for Proposals process is being requested at this time due to the following reasons: 1) Golden State Services has been providing laundry and linen services to SMMC since 2001. In addition to improving the quality of San Mateo Medical Center’s processed linen, Golden Gate Services has assisted in transitioning Burlingame Long Term Care, 2) Contracting with Golden State Services has reduced our linen expenses by $140,000 during the term of the previous agreement. This new agreement will reduce management fees by $1,570.82 per month for both facilities, saving San Mateo Medical Center $56,549.52 for the three-year term, and 3) SMMC Materials Management has compared linen service to that provided at Sutter Health. Sutter Health generates 25,000,000 pounds per year and pay $.01 over the rate Golden State is charging in this agreement.
County Counsel and Risk Management have reviewed and approved this agreement.
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This Contract keeps the commitment to Responsive, effective and collaborative government and goal number 20: government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. The agreement contributes to this commitment by providing laundry and linen services to San Mateo Medical Center and to Burlingame Healthcare Center.
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The term of this agreement is July 1, 2004 through June 30, 2007. The maximum amount of the agreement is $3,024,026. Funds are included in San Mateo Medical Center’s FY2004-05 Recommended Budget. Funds will be included in future year budget requests.
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