The First Facility Management Blog

Testwell Labs handled steel and concrete testing for projects around NYC, including the new Yankees Stadium (Photo: NY Times)

Yesterday (10/30/08), top executives, including company President, V. Reddy Kancharla and 11 others, from Testwell Laboratories of Ossining, NY were indicted for corruption charges related to falsified or incomplete test results. The company was responsible verifying the integrity for concrete and steel used in major building projects in and around the New York City area. High profile clients include the Freedom Tower at the World Trade Center site and the new Yankees Stadium–both currently under construction.

From The Associated Press:
Manhattan prosecutors have been investigating charges for months that Testwell falsified test results for projects or billed companies for tests it never did, a law enforcement official told The Associated Press, speaking on condition of anonymity because the indictment had not been released publicly. The company’s president, V. Reddy Kancharla, and other company officials are also named in the indictment. Charges will include corruption, fraud, and racketeering over a five year period.

So far, no structural integrity issues have been detected due to the “dummied” results (as many as 1,200 tests at 102 projects, according to a report in today’s New York Daily News), but random checks will be scheduled at affected building sites. Some industry experts think the doctored results may just degrade the long-term integrity of the materials, possibly causing the “structures to deteriorate faster.” (NY Daily News)

The company dominates the testing marketing in the New York metro area, and it holds approximately $12 million in pending contracts around the city. If convicted, the executives could face between 8 1/3 to 25 years in prison.

Some of your office mates may have decided to release their inner child and dress up for Halloween today. Sure there are pirates, political candidates, and ghosts as possibilities. However, how many of them decided on a workplace theme costume? 

The following, courtesy of Careerbuilder.com, is a list of 10 office related stylings that may scare people more than any mask ever would.

1. A Day Off: Using black lettering, write Nov. 7, 2008 or Dec. 1, 2008 on an orange shirt. When people ask what you are, say, “A day off!”

2. Running Late: Show up to the office with messy hair and disheveled clothes with your pajamas showing underneath.

3. Vending Machine: Dress in black and fasten snacks to yourself with the cost of each item displayed. To be really evil, place an “out of order” sign on the real vending machine and charge your co-workers for your snacks. When they pay, make sure you throw their snacks on the ground as the vending machine does.

4. Office Gossip: Make up fun stories about your co-workers. Fasten the stories to yourself and put the name of your favorite grocery store tabloid on a hat. Hang around the watercooler and invite people to read the latest news.

5. Pink Slip: No one ever wants to be served the dreaded pink slip at work. Wear a pink slip over your work clothes and chase your co-workers.

6. Post-it Note: Wear all yellow. When people say “Trick or treat” at your cube, pass out real Post-it notes.

7. Red Tape: Buy red tape and tape it all over your clothes and cubicle. When people ask what you are, make them cut through some red tape to get the answer.

8. Leftover: Wrap yourself in aluminum foil and give yourself an aluminum swan hat. Place a sign on your chest that says, “Anything left after 4 PM Friday will be thrown away!”

9. Happy Hour: Wrap a tie around your head and carry around an empty (yes, empty) martini glass with you throughout the day. At 5 PM, scream, “Happy hour!”

10. Headhunter: Carry a mannequin or doll head around with you, holding it by the hair.

From the staff at TFM, have a happy and safe Halloween.

As part of its work, the California Energy Commission operates a Research Development and Demonstration (RD&D) Division, which oversees the Public Interest Energy Research (PIER) Program. The PIER program focuses on a number of energy areas, including Building Efficiency. This research aims to decrease building energy use by developing or improving energy-efficient technologies, strategies, tools, and building performance evaluation methods.

Periodically, PIER will publish informational briefs based on its research, which is often conducted with a variety of organizations with funding from the California Energy Commission’s Public Interest Energy Research (PIER) Program. The briefs are written and prepared by E Source.

PIER recently released a brief on research on the efficiencies of various types of uninterruptible power supplies (UPSs) for data centers under a variety of operating conditions. The study, titled “Uninterruptible Power Supplies: A Data Center Efficiency Opportunity,” also proposed an efficiency label for UPSs and estimated the current energy use of the existing stock of UPSs and the potential savings if efficiency standards were in place.

Collaborators on the project included Lawrence Berkeley National Laboratory and its subcontractors, EPRI Solutions, and Ecos Consulting.

The report can be downloaded free of charge at this link. Registration required.

To help reduce energy use and help the environment the City of San Leandro, CA recently approved a contract with Siemens Building Technologies, to build a 330 kilowatt cogeneration facility at the city’s water pollution control plant (WPCP). Expected to save 60% in plant energy use, the new power plant has the potential to reduce CO₂ emissions by 1,500 tons per year, or the equivalent of planting 1,500 new trees. The new facility represents a major step in helping the city meet its goal of reducing San Leandro’s greenhouse gas emissions by 25% below 2005 levels by 2020.

“Any way you look at this project is a win-win,” says San Leandro mayor Tony Santos. “We are cutting the city’s energy costs and reducing the city’s impact on global warming; reusing a waste product, namely, grease; and using only funding that is specifically dedicated for this purpose, preserving our general fund monies for critical city programs. It is exciting to be at the forefront of cities taking on this type of project and look forward to all the benefits it will bring.”

The $5.6 million agreement with Siemens includes design, construction, and maintenance for the cogeneration system. Project costs will be covered by WPCP enterprise funds, which according to San Leandro officials are collected annually from city sewer service fees and will be used for maintaining and improving the plant. The new facility will also take advantage of applicable rebates, including a $255,000 self-generation incentive program (SGIP) rebate from local utility Pacific Gas & Electric (PG&E).

“The city of San Leandro has put themselves at the forefront of municipal sustainability and energy efficiency by embarking on this innovative renewable energy project,” says Mike Kearney, sr. director, U.S. energy & environmental solutions for Siemens Building Technologies. “Through the conversion of waste to energy, this new cogeneration plant not only takes advantage of local resources, it is kinder to the environment—through reduced greenhouse gas emissions—and will operate at a lower cost.”

The WPCP treats an average of 6 million gallons per day of municipal and industrial wastewater and is the largest single consumer of electrical energy of all city facilities. Currently, the plant uses PG&E supplied energy to run wastewater treatment operations. The plant also produces some 96,000 cubic feet per day of methane gas (a greenhouse gas shown to be 21 times more potent than CO₂), most of which is burned off and not reused. The new co-generation facility will now use all the methane gas to fuel specially designed reciprocating engines (large internal combustion motors) to spin generators that will produce the electricity needed to power the plant and treat the wastewater. 

In addition, the heat produced by the reciprocating engines will be recycled in effect and used to raise the temperature of the water needed in the treatment process. This system is efficient because it uses normally discarded methane to create both electrical energy and heat; hence, the term cogeneration.

The proposed facility features three major components: three 110 kilowatt generators that produce 285 kilowatts of continuous electrical energy needed to power the plant; a gas conditioning facility that cleans and cools the methane from the WPCP’s digester (making it suitable to fuel the reciprocating engines); and a grease receiving station that will accept additional waste grease from commercial waste haulers to enhance the digester process and increase methane gas production. With the new system, not only will the city be recycling grease from companies throughout the local area, it will improve the performance and efficiency of the generators while generating revenue from grease disposal fees.

Prior to construction, the project will require review and approval by the city’s Community Development Department and permits from the Bay Area Air Quality Management District. Construction on the facility should begin in late summer 2009, after the necessary permits and reviews have been completed.

The U.S. warehouse market contracted during the third quarter of 2008, posting a slight drop in occupied space and a sizeable increase in vacancy, according to Colliers International, a real estate services firm. This ongoing notable weakness suggests that the industrial real estate market will continue to be impacted by recessionary conditions.

A combination of weak demand and rising completions pushed the Q3 vacancy rate up 27 basis points to register 8.71%. Market polling results showed that 42 markets surveyed by Colliers posted a rise in vacancy, while 14 markets posted a decline.

In terms of new supply, 41.6 million square feet (msf) was completed during the July through September period — down from the 43.9 msf injected during Q2. Year-ago third quarter completions came in at 44.9 msf.

Industrial developments under construction dropped noticeably during the third quarter, registering 107.1 msf of space. This compares with 124.4 msf at the end of the second quarter and 153.5 msf for the year-ago quarter.

Absorption remained negative during Q3 2008. Occupied space contracted by 0.4 msf. This, however, is an improvement from the negative 9.8 msf recorded in Q2. For the same period last year, absorption measured 36.1 msf.

The debilitated industrial market comes as little surprise in light of the slide in many demand drivers — highlighted by the September ISM manufacturing index, which registered 43.5 (well below the psychological “50″ level), suggesting the manufacturing sector is currently undergoing a significant contraction. In addition, construction, housing, the auto sector, and the retail sector all continue to battle strong downward pressure.

“The warehouse leasing market keeps struggling in the face of a rapidly slowing economy,” remarked Ross Moore, executive vice president and director of market & economic research at Colliers International. “Manufacturing, and in particular the auto sector, were key sources of weakness — with output dropping dramatically over the past few months. Exports remain a bright spot; however, this is sure to change with the increasing possibility of a global recession and the expected decline in demand for products destined for ex-U.S. markets. In addition, retailers have been paring inventories, and this serves as yet another drag on the warehouse market. Colliers predicts industrial leasing conditions will remain sluggish through at least the midpoint of 2009.”

Rents for industrial space were marginally lower during the third quarter, with a 0.7% decrease, bringing the national average to $5.59 per square foot (psf). This leaves us virtually unchanged from the year-ago period, with rents dropping just $0.01 psf.

The Secaucus, NJ-based company’s new name is Panasonic System Solutions Company. This change is meant to reflect its ability to deliver a broad range of customer driven end-to-end technology solutions. 

“In today’s business environment, integrated solutions reach across multiple departments and disciplines. Panasonic is in a unique position to deliver fully integrated solutions across professional and consumer product lines which provides us with an opportunity to work even more closely with customers and reseller partners. Our new corporate identity as Panasonic System Solutions clearly communicates this new direction,” said J.M. Allain, President of Panasonic System Solutions Company. “What hasn’t changed is Panasonic’s commitment to the ongoing development of innovative video surveillance and security systems solutions that deliver interoperability, optimum functionality and scalability to meet the immediate and future needs of the market.”

The food manufacturer dedicated a 1.2 megawatt fuel cell power plant at its bakery facility in Bloomfield, CT earlier this month. Manufactured by FuelCell Energy, located in Danbury, CT, the fuel cell is now the biggest power source for the Pepperidge Farm’s 260,000 square foot manufacturing facility.

The initiative was supported in part by the Connecticut Clean Energy Fund (CCEF), a ratepayer fund administered by Connecticut Innovations Inc., which provided a grant of $3.5 million to Pepperidge Farm (parent company Campbell Soup Company) to offset part of the cost of construction last year.

This is the second fuel cell power plant installation at the Bloomfield plant, which opened in 2003. A smaller, FuelCell Energy 250-kilowatt fuel cell was commissioned for the site in January 2006, also with assistance from CCEF.

The company stated that, on its own, the new fuel cell is supplying about 57% of the total electrical needs for the bakery. Combined with the smaller fuel cell, this installation fulfills 70% of the plant’s electricity needs. Both fuel cells operate 24/7 at the plant that operates three shifts, six days a week. Additionally, excess heat from the new fuel cell is being used to support bakery processes, which helps reduce fuel needs for plant boilers.

“Pepperidge Farm is making excellent use of all the attributes of the fuel cell,” said Lise Dondy, President of CCEF. “Not only are they deriving a significant portion of their required electricity, but they are also effectively utilizing the fuel cell’s thermal output to enjoy the added benefit of being able to operate with a decreased dependence on less efficient resources.”

“We are pleased that Pepperidge Farm relies on DFC(R) fuel cells to achieve its sustainability goals,” added Richard Shaw, Director Business Development for FuelCell Energy. “By using our ultra-clean, highly efficient DFC(R) fuel cells, Pepperidge Farm stands to significantly reduce power costs while lowering emissions and increasing power reliability.”

“We are already seeing the benefits of this investment in our bakery, and it supports the clean energy goals of both our home state of Connecticut and our parent Campbell Soup,” said Robert Furbee, Pepperidge Farm senior vice president, operations. “It signifies not only a great business initiative but also a great partnership among Connecticut entities committed to pursuing clean, alternative energy sources for the state — Pepperidge Farm, the Connecticut Clean Energy Fund, and FuelCell Energy, Inc.”

The Animal Medical Center Hosts Housewarming for Luxury Living on Bark Avenue, Beaker Street, and the Uppurr West Side

Internationally renowned architects William Pedersen, Sandi Pei, and Bartholomew Voorsanger’s latest creations—an original, luxury doghouse, birdhouse, and cat condo—will be unveiled to guests as auction items for this year’s Top Dog Gala to benefit The Animal Medical Center (AMC). As one of just two non-profit animal hospitals in the United States, The AMC is New York City’s largest facility with over 50,000 patient visits per year and 87 veterinarians on staff serving the tri-state area with routine care, emergency services, and treatment for pets suffering from unusual or complex diseases.

The one-of-a-kind, extravagant pet homes will be on view to the public for the first time on Monday, November 10, from 8:15 AM – 10:30 AM at the Park Avenue Armory in New York, NY. EBay bidding begins for an auction culminating live at The Rainbow Room for The AMC’s annual Top Dog Gala on November 18, 2008. The architects will express their unique visions, as high-profile guests enjoy the ultimate housewarming party for the furry and feathered.

Each lavish pet home was inspired by an existing property. William Pedersen’s doghouse (pictured above) is appropriately named “One Jackson,” as it was motivated by one of Pedersen’s favorite projects, One Jackson Square, a luxury residential condominium building in Manhattan’s Greenwich Village neighborhood. Sandi Pei’s birdhouse was inspired by the pavilions designed for Tianfu Square in Chengdu, China and by the pre-revolutionary tradition in the city of gentlemen bringing their caged birds to any of the many temple enclosures or to the crenulated walls surrounding the city. The style and excitement of a Harley Davidson was the muse for “Cat’s Cradle,” as can be seen with its metal material combined with eye-popping colors of metallic tangerine and lime green (pictured below).

Based on its recent analysis of the energy service company (ESCO) industry, Frost & Sullivan is pleased to recognize Honeywell with the 2008 North American Frost & Sullivan Award for Green Innovation of the Year. With its renewable energy profiling model, Honeywell is marking its path as a participant in innovation by helping its customers identify and implement renewable energy solutions that are not only environmentally sound, but also fiscally responsible. 

“Honeywell is the first organization to introduce an all-encompassing renewable energy profiling model that allows it to isolate where the markets are for specific renewable energy technologies that provide strong economic drivers for its customers,” explains Frost & Sullivan consulting analyst Devin Castleton. “This provides an optimum advantage for customers who are not only motivated by environmental stewardship but also by economic value.” 

The general concept behind the profiling model is the benchmarking of the variables of a renewable energy project for every location in North America, thus calculating which renewable technologies are most viable and provide the quickest payback. Honeywell can then offer a number of ways to finance the suggested projects, including performance contracts and power purchase agreements, in which Honeywell owns the asset and sells the power to the client. 

The different variables Honeywell considers for its customers include renewable fuel availability, local electricity, gas prices, heating and cooling degree days, rebates and incentives, and deal structures. After examining all of these variables, Honeywell models them against a collected database of more than 55,000 potential customers—colleges and universities, hospitals, and federal and state governments, and other organizations—across North America. 

The database gives Honeywell an accurate vision and analysis of any energy project, with any customer, at any location. Honeywell can provide not only  guidance on which renewable technology a customer should use given a set of unique variables, but also a financial forecast derived from the intricate details the profiling model calculates. 

Honeywell uses the data in the profiling model to create a renewable energy scorecard for each customer. This tool illustrates and evaluates the impact of several technologies and provides the customer with a full range look at the different types of renewable energy resources available, along with financial modeling parameters for each technology. 

“The renewable energy scorecard is a data driven solution to a complex issue,” says Kent Anson, vice president of global energy for Honeywell Building Solutions. “It’s important that environmental stewardship makes good business sense too. Our profiling model and the scorecard take the guesswork out of the equation.” 

The renewable energy scorecard is part of an ongoing effort at Honeywell to help its customers maximize the use of renewable technologies and cut energy costs. Over the past three years, the company has helped a variety of customers install biomass, solar, and geothermal technology. 

These projects are expected to reduce annual carbon emissions by 21 million pounds and nitrous oxide emissions by 187,000 pounds, which is equivalent to removing more than 6,500 cars from the road. The switch to a renewable energy source also is expected to help these customers trim millions from their utility bills. 

Honeywell’s commitment to further developing and utilizing green energy, and helping its customers apply it feasibly, demonstrates a set of best practices that have been recognized by Frost & Sullivan research. Frost & Sullivan presented Honeywell with the 2008 Green Innovation of the Year Award, and expects the company to further its role as an innovative market leader in the long term. 

“Ultimately, the model does exactly what it was designed to do—identify renewable energy technologies that will contribute to the preservation of the environment and the reduction of energy resources that pollute the air and emit harmful greenhouse gases,” continues Castleton. “Honeywell’s model helps initiate projects that will have a lasting, positive impact on the next generation of residents.” 

Each year, Frost & Sullivan presents this award to the company that has demonstrated unique product design and development initiatives, aligned with a sustainable and environmentally conscious objective within its industry sector. The award signifies the company’s identification of a unique and revolutionary solution with significant environmental benefits, while presenting tremendous market potential simultaneously. It also signifies that the company’s overall business strategy is sound and poised for success. 

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices.

The rate of workplace injuries and illnesses in private industry declined in 2007 for the sixth consecutive year, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) reported late last week. Nonfatal workplace injuries and illnesses reported by private industry employers declined from 4.4 cases per 100 workers in 2006 to 4.2 cases in 2007.

“The 21% decline in the workplace injury and illness rate over the past six years and a 4.5% decline over the past year show the effectiveness of the strategy of targeted enforcement coupled with prevention through compliance assistance to promote a culture of safety at the workplace,” said Secretary of Labor Elaine L. Chao.

Assistant Secretary of Labor for Occupational Safety and Health Edwin G. Foulke Jr. said, “Today’s injury and illness results demonstrate that OSHA’s balanced approach to workplace safety encompassing education, training, information sharing, inspection, regulation, and aggressive enforcement is achieving significant reductions in workplace injury and illness throughout the country. This report shows that employees are now safer in the workplace than ever before. This success validates our efforts, and we are redoubling this commitment to make workplaces even safer.”

OSHA operates a vigorous enforcement program, having conducted more than 39,000 inspections in fiscal year 2007 and exceeding its inspection goals in each of the last eight years. In fiscal year 2007, OSHA found nearly 89,000 violations of its standards and regulations.