Capital Expenditure

Capital Expenditure
Project description
Assignment # 1: Proposal for a Capital Expenditure
10% of final mark (marked out of 50)
Base this assignment on a 100 bed LTC facility. The central kitchen prepares a “choice” menu from scratch and serves 4 dining areas.
Information on various pieces of equipment will be scanned to FOL ( after the CRFA trip). This information is to be used to complete this assignment.
The Capital Budget for the upcoming year has been approved. You are assigned the task of preparing a report to Council/Board requesting approval for the purchase/replacement of needed equipment for the kitchen.
1. The kitchen was built in 2003. All equipment was purchased “new” for the build.
2. All equipment warranties have expired.
3. Over the past years you have completed repairs on the following equipment at the specified costs.
a. Dishmachine – replaced motor in 2006 for $2800.00; thermometers replaced for $350.00; door seals replaced for $750.00.
b. Robot Coupe – have 3 units. One was replaced in 2007 for $1600.00. Staff use all 3 daily.
c. Cleveland steamer – has had a total of $3600.00 worth of repairs ranging from door seals to heating coils.
d. Combi oven – replaced fan motor; seals; timer and various other repairs totaling $4800.00. Recently staffs are complaining of uneven heating/cooking; and a burning smell is coming from the unit.
e. Service carts- (3 tier carts) – have been used daily.
f. In the walk-in freezer several items do not fit on the shelving units provided. More racks for storage are needed.
g. Staffs have requested a larger Hobart floor mixer.

The Capital Budget approved for the department this fiscal year is only $22,000.00.

1. Determine your plan of action for replacing/repairing the equipment. Include reasons for your decisions along with total cost ( show your calculations) (25marks)

2. Prepare a report to the Board/Council requesting approval for purchasing needed equipment along with the supporting documentation supporting your proposal. (use a formal report format) (25 marks)