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Facilities Management essay
 
← Hotel Facilities Management: Cooling Systems and Ventilation SystemsPublic Relations in the Beauty Industry →

Facilities Management. Custom Facilities Management Essay Writing Service || Facilities Management Essay samples, help

Overview of the situation

We will prioritize the projects basing on the analysis of the Desert Volcano Lodge performance in 2012. In the last quarter of 2012, many repair issues originated, so the existing capital project plan needs revision.

For the year 2012, the Desert Volcano Lodge has improved its performance relative to occupancy (+6.9%), ADR (+9.4%), and RevPAR (+14%) comparing to 2011. The Desert Volcano Lodge performance is better than for the competitive properties.

We consider the 2013 aim is to improve the performance of 2012.  The reconstruction and repair work will include the windstorm damages repair, the renovations for compliance with Americans with Disabilities Act (ADA), the facilities improvement for safety and guests’ comfort issues.

Specific problems

Windstorm damages repair

Allen Building Consulting gave the recommendations for the issues of storm damage repair, safety and ADA compliance. Table 1 presents the recommendations for storm damage repair and its analysis. In Table 2, we listed recommendations for cost allocation.

 

Table 1

Storm damage repair recommendations

Issue

Recommendation

Allen Building Consulting repair, cost

Allen Building Consulting replacement/renovation, cost

Asset management firm

Roof

Spot repairs

$2,000

Roofing replacement

$90,000 (asphalt shingle)

 $135,000 (metal roofing)

Roofing replacement

West side exterior walls

Spot repairs

$500

Tuckpointing the entire building

$40,000

Tuckpointing the entire building

Interior damage

Wall and ceiling repair

$2,500

n/a

Wall and ceiling repair

Landscape and outbuilding damage

Shed repair

$6,000

Snow blower repair

$1,200

n/a

Shed and snow blower repair

 

 

Table 2.

Cost allocation recommendations

Issue

Estimated cost (EC)

Insurance deductible (ID)

Covered by insurance

(CI = EC – ID)

Interior damage

$2,500

$1,000

$1,500

Outbuilding damage

$7,200

$1,000

$6,200

Total

 

$2,000

$7,700

 

The Western Partners have to pay $2,000 as insurance deductible to interior damages repairs. Since the masonry of the building has never been maintained, it is reasonable to allocate the capital investment for this issue. The entire building tuckpointing requires $40,000. We recommend installing reliable metal roofing system instead of roof spot repair. This would allow making further investment in room renovations and improvements for the next periods. The estimate for roof replacement is $135,000. This amount will be included in the Capital Project Plan (CPP) for 2013, along with the tuckpointing expenses.

Although Allen Building Consulting gave notice about a possible rise in insurance premium of 3-4%, we recommend filing a claim as insurance covers $7,700, while possible premium rise is $2,700 at maximum.

The Hotel Management should include costs for landscape renovation since this is not covered by insurance. Landscape renovation is operational cost and will not be included to CPP. We suggest allocating $1,500 for landscape renovation during the next 3 years.

The repair issues discussed in this section influence the facility performance and resort occupation. We strongly recommend Western Partners to address these issues in 2013 to improve the resort performance at the level of 2012.

 

Safety issues

The Allen Building Consultant identified a slippery floor issue in the lobby area. As for 2013, we do not recommend renovations in this field, due to many other renovation commitments. This may be included in the CPP for 2014.

We advise replacement of the kitchen hood systems as recommended by Fire Department.

 

ADA compliance

We recommend performing the alternations for ADA compliance. These are swimming pool lifts installation, public restrooms alternation and guestroom bath changes.

 

Proposed CPP analysis

Room renovations

Table 3 presents the analysis of the items that the High Country Management defined as renovation priority.

 

Table 3

Rooms renovation items

Item

Cost

Include in CPP for 2013

Soft goods for 17 guest rooms

$37,400

            Yes

Guestroom window replacement

$25,000

Yes

Handicapped guestroom bath changes

$20,000

Yes

Guestroom baths - curved shower rods

$15,000

No

New televisions (165 ea)

$36,300

No

New rollaway beds (5 ea)

$3,000

Yes

New PTAC's (75 ea)

$40,000

No

New microwaves (10 ea)

$3,000

Yes

 

The room renovation is necessary to ensure quality service and improve the resort performance. However, some renovations are out of scope for 2013 since much repair works are demandable.

The replacement of windows in guestrooms is not only a renovation, but also an energy-efficient issue. The bath upgrade in guestrooms of the old building is ADA compliance. We consider reasonable to install new rollaway beds since customers complain about existing, so this will be the contribution to performance improvement. Since microwaves repair is only $460 cheaper than new microwaves, we approve the microwaves replacement.

Curved shower rods would only add upscale appearance to bathrooms. Since there were no complaints from customers about the shower rods, we consider change superfluous. New televisions are out of scope for 2013. Although PTAC’s are old, they function and do not require repair. We recommend excluding the PTAC’s replacement from CPP.

It is unreasonable to invest $76,300 for PTAC and televisions when roof replacement is needed.

Soft goods renovation is $37,400 for 17 rooms, or $2,200 for one room. If it is necessary to meet the proposed CPP plan limit, we may recommend renovation for 10, 15, or another quantity of rooms.

 

Equipment

This section analyses the expenses for the equipment used outside the guestrooms (Table 4). Some of the items are operations expenses, and the table indicates that.

The items identified as operational expenses should be included in operational expenses (repairs & maintenance expenses).

 

Table 4

Equipment expenses

Item

Cost

Capital or operational expense

Include in CPP for 2013

Guest coin-op laundry equipment

$4,500

Capital

No

Waterpark ozone system

$15,000

Capital

No

Kitchen grill

$1,800

Operational

Yes

Fire system - kitchen hood

$11,000

Capital

Yes

Sewage ejection pumps

$1,500

Operational

Yes

Guestroom corridor ice machines (5 ea)

$12,000

Capital

Yes

 

Customers do not complain about guest coin-op laundry equipment, so we consider calling off this investment. Waterpark ozone system (chlorine system replacement by ozone) is a local initiative; the old system functions properly. For 2013, due to repair works, this is annulled.

Kitchen grill and sewage ejection pumps can be designated as operational expenses since they are under the capital expenses threshold. However, we do recommend repairing these items in 2012.

Fire systems replacement is a part of the safety issue recommended by Fire Department. Many guests use ice machines, so these have to operate properly, and their repair is almost 60% of the new item price, so investment for the new ice machines is more efficient.

 

Premises Renovation Projects

The High County Management proposes several renovations. Some of them are ADA alternation; one is repair of the faulty structures while others are interior renovations. Table 5 lists the summary of the projects and recommendations.

Porte cochere repair is necessary as the structures are falling, and this is a safety issue. Partially, this is the appearance update. The main reason we insist on money allocation to this issue is safety.

We recommend swimming pool lifts installation and public restrooms alternations. These projects are due because of ADA regulations.

 

Table 5

Premises renovation projects

Item

Cost

Include in CPP for 2013

Porte cochere

$20,000

Yes

Swimming pool lifts

$18,000

Yes

Public restrooms alternations

$50,000

Yes

Elevator interior

$19,000

No

Restaurant soft innovation

$40,000

No

 

Elevator interior and restaurant soft innovation are appearance issues. Hotel performance did not show any decrease in 2012, we presume that customers still value resort amenities. These innovations may be addressed in the next period since the other priorities are set for 2013.

 

Recommended operational costs

We recommended some issues to be addressed as operational costs in 2012. Kitchen grill and sewage ejection pump repair have been  reallocated from CPP. We recommend including landscape renovation as it was damaged during the storm. We present data in Table 6.

 

Table 6

Recommended operational costs

Item

Cost

Kitchen grill repair

$1,800

Sewage ejection pumps repair

$1,500

Landscape renovation

$1,500

Total

$4,800

 

Summary

Analysis of the current situation of the Desert Volcano Lodge proves that proposed by High Country Management 2013 CPP requires revision. This is mainly due to storm damages and cost misallocation.

We reallocated the kitchen grill and sewage ejection pumps repair to operational costs.

Storm damaged the roof, caused water infiltration into interior walls, damaged guestrooms, landscapes and outbuilding. We recommend installing new metal roofing and tuckpointing the entire old building instead of spot repairs. If Western Partners plan to hold the resort, this is a reasonable investment. For the other damages, file an insurance claim, pay $2,000 deductible and insurance will cover $7,700 for the interior and outbuilding repair. Western Partners will have to allocate $1,500 for landscape renovation as operational cost for 3 years, approximately.

We suggest approving the items that are ADA compliance (swimming pool lifts, public restrooms alternations, handicapped guestroom bath changes) and Fire Department recommendations (fire system).

The other items in the Revised 2013 CPP are items that provide performance improvement. We reconsidered the items proposed by High Country Management and chose the items with the highest priority. The details are discussed in the appropriate sections of the report.

We aimed at meeting the total of High Country Management CPP.  Table 7 presents the Desert Volcano Lodge revised 2013 Capital Project Plan.

 

Table 7

The Desert Volcano Lodge: Revised 2013 Capital Project Plan

Item

Original Installation

Date

Cost

Comments

Metal roofing system installing

1985

$135,000

Metal roofing provides benefits for the property, reasonable long-term investment

Tuckpointing the entire building

n/a

$40,000

Tuckpointing prevents water infiltration into the interior walls.

Porte Cochere

1993

$20,000

Replacement of the falling structures, update appearance

Swimming pool lifts

n/a

$18,000

ADA compliance

Public restrooms alternations

n/a

$50,000

ADA compliance

Soft goods for 16 guest rooms

2003

$35,200

Performance improvement. The amount was reduced to meet the CPP total, only 16 rooms will be renovated.

Guestroom window replacement

1985

$25,000

Performance improvement, energy-saving issue

Handicapped guestroom bath changes

1985

$20,000

ADA compliance

Guestroom corridor ice machines (5 ea)

1981/2003

$12,000

Performance improvement

Fire system - kitchen hood

1979

$11,000

Fire Department recommendations

New rollaway beds (5 ea)

1983

$3,000

Performance improvement

New microwaves (10 ea)

1985

$3,000

Performance improvement

Contingency

 

$2,000

 

Total

 

$374,200

 

 

The revised CPP will restore the areas damaged by storm, significantly renovates the old building and improve performance of the resort in 2013.

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