Environmental Costs and Ethical Issues. Mark Johnson, controller of St. Johns Hospital, is reviewing capital proposals for next year's capital budget. The proposals have been put together by the managers responsible for their respective areas. He is concerned that the figures in several proposals do not seem to reflect some sensitive factors. The proposals include:

Building expansion: A new wing will use a site that included a vacant gasoline station. Mark is aware of problems at other similar sites with underground contamination from leaking storage tanks. Cleanup costs have ranged from several thousand to nearly half a million dollars at other sites. The only cost shown in the proposal is demolition costs to remove the building.
Equipment acquisition: A new diagnostic machine is being requested by the Endocrinology Department. The machine uses radioactive isotopes. The proposal includes costs of handling these radioactive wastes as part of the hazardous materials management policies. Mark, however, knows that this machine will significantly increase the hospital's involvement with these materials and will change its status for handling and storage. He does not know what these additional requirements are. These costs are not mentioned.
Parking lot improvement: Expansion of the parking area will include removal of several older homes, owned by the hospital and rented to low-income families. Several community organizations have voiced concerns about losing more quality housing in the area. One group threatens to protest the loss of housing. No mention of this is given in the proposal.
\section*{Required:}
1. Mark has asked you for suggestions as to how the issues he has raised regarding these proposals might be incorporated into the decision-making process.
2. He is also interested in preventing these omissions in the future. Prepare an addition to the capital investment policy manual that would ensure specific consideration of such issues