The First Facility Management Blog

Following a two-month soft patch, the Architecture Billings Index (ABI) rose almost two full points in July. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to 12 month lag time between architecture billings and construction spending.

The American Institute of Architects (AIA) reported the July ABI score was 47.9, up from a reading of 46.0 the previous month. This score reflects a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index dropped substantially from 57.7 to 53.1.

Key July ABI highlights:

• Regional averages: South (47.9), Northeast (47.2), Midwest (46.7), West (45.2)
• Sector index breakdown: commercial / industrial (50.4), institutional (47.9), multi-family residential (47.5), mixed practice (42.9)
• Project inquiries index: 53.1

“Business conditions at design firms remain quite volatile,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “While this recent uptick is encouraging, this state of the industry is likely to persist for a while as we continue to receive a mixed bag of feedback on the condition of the design market from improving to flat to being paralyzed by uncertainty.”

A confluence of trends has helped focus the private sector’s attention on efficiency retrofits. First, oil and natural gas price spikes in 2008 renewed concerns about volatility and long-term increases in energy prices. Second, amid concern about global climate change, many businesses now rank sustainability as a critical corporate objective. In that context, businesses are inclined to measure the value of energy retrofits both for their financial benefits and for their contributions toward sustainability goals.

A white paper released earlier this year by Johnson Controls provides an overview of financing options for facilities in the private sector. Authored by Peter White, director, private sector energy solutions at the company, “An Awakening in Energy Efficiency: Financing Private Sector Building Retrofits,” states that one of the greatest barriers to improving energy efficiency or adding renewable energy technology in buildings is the high capital cost of projects. Whether upgrading a chiller, installing a solar photovoltaic system, or implementing a bundle of improvements under a whole building retrofit, these types of projects require large up-front investments, followed by a long period of payback through savings in energy bills.

A 2009 survey by Johnson Controls and the International Facility Management Association (IFMA) illustrates the importance of capital as a barrier to energy efficiency projects. When more than 1,400 executives with budget responsibility for facilities were asked about the biggest barrier to energy efficiency, 42% cited capital availability (see chart below). These findings suggest that new financing models can make a huge impact in igniting more clean energy investments.

A Look At Financing Options

“An Awakening in Energy Efficiency” provides an overview of Performance Contracting — when the capital investment to make the improvements is paid for through the savings created over a set period, and the energy service company (ESCO) installing the improvements contractually guarantees a savings on energy consumption and improved system performance, or both.

At the end of the contract, when the improvements are paid for in full, the owner reaps substantially lower costs than if the retrofits had not been completed. Still, for all its success in public and not-for-profit entities, performance contracting has had limited appeal in the private sector, where organizations have financial priorities, expectations for return on investment, and risk profiles differ. For example, while public and non-profit entities may accept retrofits that pay back the capital investment in five to seven years or longer, private businesses tend to expect payback in two years or less.

Johnson Controls’ paper goes on to to discuss several emerging financing options for private sectors — Anchor Tenant Financing; Shared Savings Agreements (SSA); Capital Leases; Power Purchase Agreements (PPA); Property-Assessed Clean Energy (PACE) Bonds; Green Leases; On-Bill Financing; and Performance-Based Infrastructure.

To request a PDF of the paper, send an e-mail to tfm@groupc.com. Include “Private Sector Energy Efficiency” in the subject line. Or, download it here from the Johnson Controls Website.

We may not be traveling in flying cars or have talking robot maids as shown in the television cartoon “The Jetsons,” but commercial, institutional, and industrial facilities are about to get a lot “smarter” when it comes to electrical use. Under a national Smart Grid effort, ASHRAE and the National Electrical Manufacturers Association (NEMA) are jointly developing a standard that would provide a common basis for electrical energy consumers to describe, manage, and communicate about electrical energy consumptions and forecasts. A kickoff meeting to begin work on the proposed standard is taking place August 30-31 at ASHRAE Headquarters in Atlanta.

ASHRAE/NEMA Standard 201P, Facility Smart Grid Information Model, will define an object-oriented information model to enable appliances and control systems in homes, buildings, and industrial facilities to manage electrical loads and generation sources in response to communication with a “smart” electrical grid and to communicate information about those electrical loads to utility and other electrical service providers.

“Smart grids lead to smart meters lead to smart systems,” ASRHAE President Lynn G. Bellenger, P.E., said. “As the smart grid adjusts to suit load distribution and maintain power quality and reliability, one of the steps will be to communicate with building metering systems which, in turn, will communicate with building systems and equipment. This ties into demand response control to reduce peak demand. One day in the future, we likely will have real-time pricing with dramatic differences in power costs dependent upon the time of day or grid load.”

“NEMA and the members of their smart grid and high-performance buildings councils see the creation of this standard as a strategic element in driving development of a nation-wide smart electrical grid while increasing energy efficiency, occupant productivity and cost-effectiveness in safe secure buildings,” Jim Lewis, manager, High Performance Buildings, NEMA, said.

The standard is part of ASHRAE’s supporting efforts for the Smart Grid Interoperability Panel, a public-private partnership initiated by the National Institute of Standards and Technology to speed development of interoperability and cyber security standards for a nationwide smart electric power grid.

The proposed ASHRAE/NEMA standard will coordinate with work by the North American Energy Standards Board to develop a basic energy usage data model standard and create a facilities data model that provides additional energy usage data elements for commercial and industrial buildings. This includes lighting, heating, HVAC and other electrical loads.

Facility managers in schools can implement lighting energy savings and facilitate improved, flexible learning environments by installing Class Pack Lighting Systems from GE Lighting and Lithonia Lighting. The first step is to visit www.BetterLightingBetterSchools.com, a Website that provides a range of information on how schools can improve their lighting energy efficiency.

The site features a lighting audit request form tied to the introduction of energy efficient Class Pack Lighting Systems. By installing Class Pack Lighting Systems, schools can reduce annual lighting related energy costs up to 50%.

“We want to help school districts across the country understand the significant opportunity that today’s energy efficient lighting systems can provide,” says Jason Raak, a marketing manager with GE’s lighting business. “Recent new product advancements make current high performance lighting far superior to systems installed just five years ago, and payback periods are shorter than ever.”

Qualified school representatives can use the BetterLightingBetterSchools Website to request a school or district-wide energy audit (restrictions apply). Visitors to the site will see a host of supporting statistics and other details on how school executives can lower the cost to renovate facilities by using NEMA premium ballasts and CEE qualified HPT8 lamps, which in many regions can defray initial costs through utility rebate eligibility.

The new Class Pack Lighting Systems combine high light output, full spectrum fluorescent lighting with a ballast system that delivers customized lighting levels in a two-lamp platform. There are three options to meet aesthetic requirements: SP8 School-standard lens option; ES8 Crisp, white louver; and RT8 Volumetric for a progressive look. With fewer, longer longer life components, it minimizes maintenance and lamp replacement costs. The Systems are designed for installation after school is out for the day or during summer renovations.

“We think BetterLightingBetterSchools.com provides school districts with many of the resources needed to make smart financial decisions about lighting and energy savings,” says Monik Mehra, director of marketing, Lithonia Lighting. “It’s a vital tool at a time when school districts have to do more with less, while striving to improve the quality of their students’ learning experience.”

The U.S. Environmental Protection Agency (EPA) wants to alert consumers that there has been an increase of individuals or companies who offer to control bedbugs with unrealistic promises of effectiveness or low cost.

Because bedbug infestations are so difficult to control, there have been situations where pesticides that are not intended for indoor applications have been improperly used or applied at greater rates than the label allows. While controlling bedbugs is challenging, consumers should never use, or allow anyone else to use, a pesticide indoors that is intended for outdoor use, as indicated on the label. Using the wrong pesticide or using it incorrectly to treat for bedbugs can make people and animals sick.

Bedbugs can cause itchy bites on people and pets. Unlike most public health pests, however, bed bugs are not known to transmit or spread diseases. Pesticides are only one tool to use in getting rid of bedbugs. A comprehensive approach that includes prevention and non-chemical treatment of infestations is the best way to avoid or eliminate a bedbug problem. While more information can be found on EPA’s website, a few examples of non-chemical methods of control include:

• Removing clutter where bedbugs can hide
• Using mattress covers designed to contain bedbugs
• Sealing cracks and crevices
• Vacuuming rugs, and upholstered furniture thoroughly and frequently, as well as vacuuming under beds (take the vacuum bag outside immediately and dispose in a sealed trash bag)
• Washing and drying clothing and bed sheets at high temperatures (heat can kill bedbugs)
• Placing clean clothes in sealable plastic bags when possible
• Being alert and monitoring for bedbugs so they can be treated before a major infestation occurs

This comprehensive method of pest control is called integrated pest management (IPM) and includes a number of common sense control methods. If you need to use pesticides, follow these tips to ensure safety and that the product works:

• Before using any pesticide product, READ THE LABEL FIRST, then follow the directions for use.
• Check the product label to make sure it is identified for use on bedbugs. If bedbugs are not listed on the label, the pesticide has not been tested for bedbugs and it may not be effective.
• Any pesticide product label without an EPA registration number has not been reviewed by EPA to determine how well the product works.
• Make sure that the pesticide has been approved for indoor use.

EPA is involved in a number of activities to assist in managing the bedbug problem. The agency hosted a bedbug summit in April 2009, and more recently, the agency has been participating in an interagency task force on bedbugs that, among other actions to date, has:

• Issued a joint statement from CDC and EPA to highlight the public health impacts of bedbugs
• Identified currently registered pesticides that may be effective against bedbugs and is working with the Agricultural Research Service to test the pesticides for efficacy in their labs
• Begun coordinating programs for IPM techniques to address bedbugs
• Facilitated information exchange between the federal agencies to promote efficient, effective use of resources

Click here to read TFM’s coverage of bedbugs in a conversation with an entomologist who attended EPA’s April 2009 event on the topic.

On August 12, 2010, the U.S. Department of Labor’s Occupational Safety and Health Administration announced that BP Products North America Inc. will pay a full penalty of $50.6 million stemming from the 2005 explosion at its Texas City, Texas, refinery that killed 15 workers and injured 170 others. The agreement resolves failure-to-abate citations issued after a 2009 follow-up investigation. In addition to paying the record fine, BP has agreed to take immediate steps to protect those now working at the refinery, allocating a minimum of $500 million to that effort.

“This agreement achieves our goal of protecting workers at the refinery and ensuring that critical safety upgrades are made as quickly as possible,” said Secretary of Labor Hilda L. Solis. “The size of the penalty rightly reflects BP’s disregard for workplace safety and shows that we will enforce the law so workers can return home safe at the end of their day.”

Under the agreement, BP immediately will begin performing safety reviews of the refinery equipment according to set schedules and make permanent corrections. The agreement also identifies many items in need of immediate attention; the company has agreed to address those concerns quickly and to hire independent experts to monitor its efforts. Additionally, the agreement provides an unprecedented level of oversight of BP’s safety program including regular meetings with OSHA, frequent site inspections and the submission of quarterly reports for the agency’s review. Finally, in a step toward workplace safety corporate-wide, BP agrees to establish a liaison between its North American and London boards of directors and OSHA, which will allow the agency to raise compliance problems at the highest level.

“Safer conditions at this refinery should result from this arrangement, which goes far beyond what can normally be achieved through abatement of problems identified in citations,” said Assistant Secretary of Labor for OSHA Dr. David Michaels. “Make no mistake, OSHA will be watching to ensure that BP complies with the agreement and safeguards its workers.”

In September 2005, OSHA cited BP for a then-record $21 million as a result of the fatal explosion at its Texas City refinery in March of that year. Upon issuance of the citations, the parties entered into an agreement that required the company to identify and to correct deficiencies. In a follow-up investigation in 2009, OSHA found that although the company made many changes related to safety, it failed to live up to several extremely important terms of that agreement. As a result, OSHA cited BP for “failure to abate” violations with penalties totaling a record $50.6 million that BP now has agreed to pay.

During that same 2009 investigation at the Texas City refinery, OSHA also identified 439 new willful violations and assessed more than $30 million in penalties. Litigation before the Occupational Safety and Health Review Commission regarding those violations and penalties is ongoing and is not impacted by today’s settlement.

To read materials related to the agreement, visit this link.

What happens when the activities of a madcap group of overworked, frustrated architects is chronicled in the form of an old fashioned black and white comic strip? The result is a clever Web offering called Architexts. While originally created for the amusement of architectural professionals, some facility managers (and others in related fields) may also find it humorous. [Click on image to enlarge.]

From the Website:

Architexts tells the story of a fictitious mid-sized architectural firm called Franklin + Newbury Architects, Inc. Their experiences are mostly based on real life experiences of architectural professionals. Franklin + Newbury Architects, Inc. is a fairly typical firm. The projects aren’t all that exciting: tenant fit-outs, small commercial renovations, feasibility studies… not much new construction. The lack of exciting design work makes the young production staff jaded and cynical. They struggle with their seemingly mundane jobs and constantly finding ways to amuse themselves to get through each day. They have antipathy for the bosses, who don’t seem motivated to pursue more exciting projects.

The production staff is made up of designers and drafters ranging from recent graduates in their early 20s who still have high expectations for their careers and the profession, to more experienced designers in their mid-30s who would like to work in a better firm, but feel stuck. Your office may not be like Franklin + Newbury Architects, Inc. but we are sure you will be able to relate to the situations and hijinks that occur.

Here’s one more sample, just perfect for a Friday in the summer (when everyone else has left the office…)

[Again, click on image to enlarge.]

McCarthy Building Companies, Inc., along with 33 subcontractors and suppliers, recently completed construction of a 25,000 square foot athletic facility for GOALS (Growth Opportunities through Athletics, Learning and Service) youth program. Called “The GOALS Dreamscape,” the athletic facility is located in north central Anaheim, CA adjacent to GOALS existing headquarters.

The GOALS Dreamscape facility

“Almost half a million dollars of in-kind technical services, labor, equipment, and building materials were contributed in order to bring this new venue from a dream to a reality,” said GOALS executive director Dave Wilk. “The outpouring of generosity combined with the quality of construction especially in these tough economic times has been an amazing experience for our staff, volunteers, and of course, the children.”

Donated entirely by local businesses and the city of Anaheim, which provided the land, along with support and guidance from the United States Tennis Association and Southern California Tennis Association, the athletic facility features: two full-size, lit tennis courts; a 6,000 square foot artificial turf arena for multiple sports; 100 meter warm up walking/jogging track surrounding arena; 440 meter circumferential walking/jogging fitness track; a fruit and vegetable “GOALS Garden” which will be planted and tended by GOALS children; an adjoining indoor workout center for aerobic and anaerobic fitness; and a 1,500 square foot “mini court” for additional sports play.

Children receive direction from lacrosse coaches at the new Dreamscape facility.

“The project began in 2008 when the City of Anaheim agreed to give GOALS the chance to attract development support for a vacant parcel of nearby land,” explained Wilk. GOALS board member Tom Tait from Tait and Associates provided more than $65,000 of engineering and architectural support to propel the project. McCarthy donated more than $120,000 to the project and formed the subcontracting team that provided another $150,000 in goods and services. The team went on to complete the facility within eight months. The U.S. Tennis Association worked with AmeriCorps Vista volunteers to create the design of the tennis courts.

Said Tait, “The GOALS program was conceived with one act of kindness by Disneyland over 17 years ago, and this initial benevolence has become contagious among the GOALS staff and volunteers as well as through the longtime support of companies like McCarthy and the subcontractors who have helped make this project a reality.”

The project’s contributors, dubbed “The Dream Team” by GOALS, included: McCarthy Building Companies, The City of Anaheim, Tait & Associates, United States Tennis Association, Southern California Tennis Association, SOCALGEO Soil Engineering, The Murray Company, Ahern, J.B. Lumber, Anaheim Disposal, Bapko, Berg Electric, Premiere Engineering, United Rentals, Nolan’s Equipment Rentals, Crown Fence, Conco Pumping, Cal Portland, GPS Painting, J&M, CEMEX, Catalina Pacific/Cal Portland, Rebar Engineering, Western Paving, White Cap, Shaw & Sons, Athletica, Preferred Paving, H&E Rentals, NJP Sports, Zaino Tennis Courts, PlexiPave, LA Steelcraft, Precision Surfacing, Schmitz Foam Products, DOMO Turf and FlexSand.

The ASIS Foundation, in partnership with the Brownyard Group, has re-established the W.H. Brownyard Meritorious Award. The award, first founded in 1987, is presented to an individual who performed a heroic or meritorious act in the face of adversity. The 2010 award will be presented at the ASIS International 56th Annual Seminar and Exhibits (ASIS 2010) on October 14.

“Security officers play a critical role in the protection of life and property, and in many instances serve as an organization’s first line of defense,” notes ASIS Foundation President David C. Davis, CPP, senior manager, business unit security, Northrop Grumman. “The ASIS Foundation is honored to acknowledge professionals who have demonstrated outstanding commitment and skills in the performance of their duties with this award and to support their future enrichment.”

“When my father – Bill (William) Brownyard – proposed the idea for this award, it was because he saw that security guards didn’t receive the recognition they deserved,” says Brendan Brownyard, CEO, Brownyard Group. “There are many security guards who provide great protection, reduce losses, and often thwart danger and tragedy by taking heroic action. We’re proud to recognize their service.”

Nominations for the Award are open through August 31, 2010. Questions can be directed to Ruth Connelly. The award winner receives a commemorative plaque and an all-expenses-paid trip to ASIS 2010.