DATE: April 4, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator
SUBJECT:
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Consideration of Resolution 2017-23, a Resolution to Authorize Purchase of a Replacement Dishwasher at Cool Springs Conference Center. (04/13/17 FINANCE 4-0)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the purchase of a replacement dishwasher at the Cool Springs Conference Center
Background
The Cool Springs Conference Center is adjacent and connected to the Cool Springs Marriott hotel. The Center’s 18 year old dish washer has been increasing in downtime due to breakdown, repair costs ($5K last year) and increased inefficiencies in labor. A new machine may be purchased for $62,000, of which 80%, or $49,600 would be paid from the capital fund. Alternatively, the current machine may be rebuilt for $23,000. However, a new machine utilizing newer technology is more energy efficient and uses less chemicals (see attached documents).
Financial Impact
As part of the contract with the Conference Center management, an amount equal to four percent of all revenues is put aside each month to allow for complete renovation on the five year cycle. That amount, which has been escrowed, will be used to fund the capital improvements. While replacement of the dishwasher was not budgeted in FY 2017, it is staff recommendation for approval of the purchase due to the deteriorating condition and age of the current machine. Current balance in the capital improvement fund is approximately $96,997.
Recommendation
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Staff recommends approval of Resolution 2017-23, authorizing the City Administrator to approve on behalf of the City the purchase of a replacement dishwasher at the Cool Springs Conference Center.