Download - Utah Facilities January 2011
IN THIS ISSUE: Snow and Ice Management
2 I UTAH FACILITIES JANUARY 2011
4 I UTAH BUILDINGS FALL 2010
UTAH FACILITIES JANUARY 2011 I 5
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28Developing DowntownSalt Lake City forges ahead, despite economy,with several commercial building projects
Property ManagerTodd Maybe, senior property managerfor Zions Securities Company
Office Market OutlookPositive trend continues
Property Management CompaniesValuing a property management company,beyond profit and loss
BOMA Utah Newsletter
Snow and Ice ManagementWell-run snow management contractors
On the cover:Aerial view of City Creek development. Photo courtesy CCRI.
FEATURES
JANUARY 2011
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Publisher’s LetterUtah Buildings is now Utah Facilities
FlooringIndoor air quality and floor care
CareersKeys to recession-proofing your career
Fire Alarm SystemsUpgrading to new technology
ContractsThe anatomy of construction defects
Building ControlsControl systems can maximize efficiency
ConstructionCost of materials flat in Utah
Public HealthPreparing for a pandemic
Fall ProtectionBuilding owners are responsible for safety
JanitorialCleaning for the Holidays
LEEDIs LEED EBOM in your budget?
LegalTax consequences of a commercial loan workout
Energy-efficient windows capture energy savings
Think outside the cubein an office redesign
Energy-efficient windows capture energy savings
As you may have noticed, Utah Buildings is now Utah Facilities, Solutions forBuilding Owners & Managers. This is one of the many exciting changes coming tothe publication. We have changed the name to more accurately reflect the magazine’spurpose, which is to help building owners and managers make informed decisionsregarding the construction, modernization and management of their facilities. Inaddition, Utah Facilities will be published bi-monthly rather than quarterly, beginningwith this issue.
Involved in a variety of disciplines, facility managers play a significant role in therealization of business objectives as well as the daily operations of buildings and theorganizations that use them. Many of our readers are high-level decision makers,contributing to strategic planning. Considering the current economic climate, buildingowners and managers have a more difficult job than ever.
One year ago financial and real estate experts were telling us to sit tight and ride out2010 because we wouldn’t see any meaningful economic recovery until 2011. Now thequestion remains, will 2011 bring a rebound to the commercial real estate sector? Willbusinesses be willing to expand? Will entrepreneurs be able to launch new companies,and will Utah’s commercial real estate industry see positive growth in leasing and newdevelopment?
The outlook for commercial real estate seems to have improved from a year ago, butour enthusiasm should be tempered by the challenges that remain. The frustratingthing is that the future of commercial real estate is not completely within our control.Whether you are a property manager, building owner, builder or developer, yourproblems are bigger than real estate, and the answers are beyond the scope of thisindustry. Problems include jobs, inventory and lending.
Despite optimism about employment growth, nobody knows where the jobs are goingto come from. Empty storefronts and vacant offices continue to be a problem andmore inventory is coming online. Banks are facing regulatory pressure to clean upbalance sheets loaded with overvalued real estate. This trifecta causes many to believethat the other recessionary shoe may still drop. And this fear continues to hurt thecommercial real estate industry.
There is some good news. Though economists have toned down their estimates for2011, most dismiss the likelihood of a second recession. Employment in the publicsector has contracted, but the private sector has finally started to add jobs andconsumer confidence is up for the fifth straight month. 2011 may be the year that theprivate sector finally takes over for the public sector in attempting to drive growth.And if the new Republican Congress cuts government spending, many anticipate astimulative effect on the economy.
CONTACTPublisherTravis [email protected]
Managing EditorKelly [email protected]
Editorial AssistantBrooklyn Ashy
Art DirectorDoug Conboy
ContributingPhotographerDana Sohm
Contributing Writers
PublisherUtah Facilities
The publisher is not responsible for the accuracy of the articles in Utah Facilities. The information containedwithin has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumesliability for loss or damage as a result of reliance on this material. Appropriate professional advice should besought before making decisions.
Copyright 2010 Utah Facilities Magazine. Utah Facilities is a Trademark owned by Jengo Media.
Kyle C. JonesKynan WynneMark T. WoolleySean MurphyThomas CarlsonRich Thorn
Utah FacilitiesPO Box 970281Orem, Utah 84097Office: 801.224.5500Fax: 801.407.1602JengoMedia.com
PUBLISHER’S LETTER
6 I UTAH FACILITIES JANUARY 2011
Brent LaPorteD. Kevin DyrengDarin MellottEric BaxterJill RasmussenJohn AllinJosh Elder
Utah Facilities is a proudBOMA National Associate member.
UTAH FACILITIES JANUARY 2011 I 7
13526 South 110 WestDraper, Utah 84020Telephone: 801.990.1950
3284 East Deseret Dr, Suite 7St George, Utah 84790Telephone: 435.635.0205
2230 South Cole Rd, Suite 130Boise, Idaho 83709Telephone: 208.323.8088
Lighting Control Solutions
Energy SavingsWith a lighting control system installed by Utah Yamas Controls, you’ll seean immediate return on your energy-saving investment. Compared withother energy-saving technologies, a lighting control system can provideboth a lower initial capital outlay and a quicker payback.
Easy Installation (Great for Retrofits) Our Powerlink lighting control systems are housed in the lighting panelboard.No extra boxes to mount. No relays to wire. No complex panels to decipher.Installation takes no more time than mounting a standard lighting panelboard.
Code Compliance and LEED Certification The ASHRAE/IESNA standard encourages energy-efficient design for bothinterior and exterior lighting. Utah has recently adopted energy codes based on these standards. Efficient lighting control is required for certificationunder the Leadership in Energy and Environmental Design (LEED) initiative.
Lighting Control Solutions
Energy SavingsWith a lighting control system installed by Utah Yamas Controls, you’ll seean immediate return on your energy-saving investment. Compared withother energy-saving technologies, a lighting control system can provideboth a lower initial capital outlay and a quicker payback.
Easy Installation (Great for Retrofits) Our Powerlink lighting control systems are housed in the lighting panelboard.No extra boxes to mount. No relays to wire. No complex panels to decipher.Installation takes no more time than mounting a standard lighting panelboard.
Code Compliance and LEED Certification The ASHRAE/IESNA standard encourages energy-efficient design for bothinterior and exterior lighting. Utah has recently adopted energy codes based on these standards. Efficient lighting control is required for certificationunder the Leadership in Energy and Environmental Design (LEED) initiative.
8 I UTAH FACILITIES JANUARY 2011
Photo courtesy CCRI
UTAH FACILITIES JANUARY 2011 I 9
Between the City Creek Project, Gateway Five and
Six, 222 S. Main, the Hyatt Place Hotel, the
Performance Center on Main, the Utah Film and
Media Center, Broadway Park Loft, the O.C. Tanner
flagship store, the Leonardo, the Public Safety Complex,
the Frank E. Moss Courthouse, Harmons, and the
Questar Corporate Headquarters, downtown Salt Lake
City is rising.
“Salt Lake City is really coming into its own,” said
Jason Mathis, executive director of the Downtown
Alliance. “The challenges in the national economy have
created an opportunity for Salt Lake City to forge ahead.
It has given us a leg up on moving forward to become a
real regional capital.”
Looking toward the future, political, community and
religious leaders in Salt Lake City have strategically
planned the development of downtown Salt Lake City,
Mathis said. The City Creek project is the lynchpin in
the development of downtown, leading the way for other
projects like 222 South Main and the OC Tanner
Flagship store, he said.
“We affirm that a vibrant metropolitan center is an
important economic engine for the regional community
and supports economic development that energizes
downtown,” according to the 2010 Public Policy Guide
released by the Salt Lake Chamber. “A strong downtown
is essential for the economic strength of the entire region.”
Salt Lake City is growing its portfolio of commercial
office buildings with Gateway Five, a four-story, 65,000-
square foot building completed in 2009 by the Boyer
Company, plans for Gateway Six, the Questar Corporate
Headquarters and 222 S. Main, Salt Lake City’s first
LEED Gold Certified high-rise. Developed by Hamilton
Partners, the 460,00 square feet of 222 S. Main is nearly
60 percent leased, an indicator of the leasing climate in
Salt Lake City.
“We hope that we have made a positive contribution
to the overall tapestry of downtown,” said Bruce
Bingham, a partner with Hamilton Partners, in reference
to 222 S. Main. “Our office building is first class in every
way. We see downtown Salt Lake City as becoming
nothing but better and stronger as the years go by. …
Pound for pound, Salt Lake City has more going for it
than any other city in America.”
The residential component provided by City Creek is
also playing a major role in the development of the
Central City. Approximately 700 residential units will be
constructed in City Creek, including Richards Court and
Promontory. The Church of Jesus Christ of Latter-day
Saints’ role in the City Creek residential buildings is
serving to bring a new demographic of members of the
Church to Utah’s capital. Their participation is
portraying a safe, clean and comfortable downtown,
Mathis said.
“The residential component of City Creek is
wonderful,” said Jake Boyer, president of The Boyer
Company. “To get more people living downtown is a
positive for everybody in the downtown area.”
Other condominium projects, including the Broadway
Towers, the Westgate Lofts and the Patrick Dry Goods
Lofts, are also helping to bring young professionals and
retired baby boomers to the area, Mathis said. All of these
projects could potentially triple the population in
downtown, bringing with it significant change and
supporting the current development.
“The influx of residential living is an important
component to the growth of downtown,” said Danica
Farley, public relations representative for the Downtown
Alliance. “More residents will make the city more
vibrant, as they will be contributing economically to
downtown.”
The population growth will be welcomed with retail
and office space, introduced as needed, as well as with
better transportation to and from the city, within the city
and to the Salt Lake International Airport. Residents will
also be accommodated with the construction of a full-
service grocery store, the only one of its kind in
downtown Salt Lake City. The construction of the Utah
Performance Center and the conversion of the Utah
Theater into the Utah Film and Media Center will add
more entertainment venues to the downtown portfolio,
enhancing the nightlife for Utah residents.
“Each project is a big deal in its own way,” said
Mathis. “It is easy to get excited about each one of them.”
Salt Lake City will continue to develop its downtown
with proposals for a 1,000-room convention center hotel
next to the Salt Palace Convention Center, a streetcar line
that connects the Broadway District to The Gateway and
City Creek and a year-round public market that would be
akin to markets in other large cities.
“There is something different everyday,” Farley said.
“We see new businesses all of the time. There is such a
vibrancy and a great network of people who all work
together ...There has long been the foundation for this to
happen. With the right timing and the right people, it all
came together.” UF
Downtown stories start on page 10
10 I UTAH FACILITIES JANUARY 2011
Six Gateway will be the capstone
building to the Rio Grande
Street at The Gateway in Salt
Lake City’s downtown, completing a
multi-use project that began in
December 1999 with the $16.5 million
renovation of the Union Pacific Depot
and opened in 2001 in time for the
2002 Winter Olympics.
“The vision behind the project was
to provide a mixed-use environment
that would unite retail, office, cultural,
residential and entertainment space in a
location that would enliven the
downtown area and give people in Utah
a reason to pass regional suburban malls
and head downtown,” said Jake Boyer,
president of the Boyer Company, which
owns and manages the office buildings
at The Gateway. “Over the years, the
critics have been silenced by Gateway’s
success and its ability to bring people
and sales tax revenue back into
downtown Salt Lake.”
Six Gateway will add to the
continued success of the Gateway and
downtown Salt Lake City, Boyer said.
“Six Gateway is another addition to
a lot of great stuff going on in terms of
growth in our downtown,” said Boyer.
“The Gateway is an important part of
the downtown area.”
The Boyer Company carefully
considered what to build in the vacant
lot, contemplating the construction of a
Nordstrom or another large retailer on
the site. Eventually, the company
responded to the needs and demands of
the market and settled on building
more office space. Boyer was close to
moving forward on the project nearly
two years ago when the economy
collapsed. At that time, the company
and its investors decided to “put the
project on ice”and wait for the economy
to turn, Boyer said.
Now, a year and a half later, the
financial market has stabilized and
tenant interest has increased enough to
breathe new life into the project, Boyer
said. The Boyer Company is currently
negotiating leases with several
companies in hopes to secure an anchor
tenant and generate more leasing
interest. If all goes well, construction on
Six Gateway could begin as early as the
Six GatewayBuilding Owner:The Boyer Company
Building Type:Office Commercial
UTAH FACILITIES JANUARY 2011 I 11
end of 2010 with a year-long
construction schedule. The completion
of Six Gateway will bring the total
office space of The Gateway to
approximately 760,000 square feet.
“Six Gateway will further build upon
the success of the other office space
being built in the area,” Boyer said. “We
are excited about what it will do. We are
excited about The Gateway’s continued
success.”
The 105,000-square foot, five story,
Class A building will be the sixth and
final office building at The Gateway, an
open-air destination providing
shopping, dining and living in one
location. Positioned adjacent to the
newly built 128-room Hyatt Place hotel
and the Fidelity Investment building,
Six Gateway will have views of Rio
Grande Street and the Olympic Legacy
Plaza. Designed by Babcock Design
Group, Six Gateway will be similar in
design to the Union Pacific Station
with a red brick facade rather than the
stucco used on the other Gateway
buildings. The building will likely be
Leadership in Energy and
Environmental Design (LEED)
Certified and will have the most
advanced mechanical systems available.
“Once people see it coming out of
the ground, it will generate a lot of
interest,” Boyer said. “There is office
space to be found in downtown, but this
type of product in this type of
environment is not as common as you
might think. So it is pretty appealing.”
Historically, The Gateway has had
few vacancies and currently is leasing 98
percent of its office space. Its location
and amenities play a vital role in its
appeal, Boyer said. Its proximity to
Interstate 15, Trax, the commuter train
and the future light rail make The
Gateway offices ideal for many tenants,
Boyer said. With 13 full-scale
restaurants, a food court, a fitness
facility and the Hyatt Place hotel, the
amenities are hard to beat. Employees
have easy access to shopping, the
Olympic Legacy Parkway and other
downtown sites. Additionally, Boyer
said, The Gateway provides a safe
environment for its tenants and patrons.
“The Gateway is a place for people
to office, to live, to work, to shop and to
play,” Boyer said. “It is the whole
experience. A 24-hour, seven-day-a-
week experience.”
The Utah Performance Center on
Main will be a 2,500-seat theaterfor Broadway shows and other
community activities and events. As acontinuation of City Creek, thePerformance Center will “provide aneconomic catalyst on Main Streetthrough a state-of-the-art venue for artsenthusiasts that will present touringBroadway, local performances, andexceptional cultural experiences toengage, excite, unite and inspire,”according to the Salt Lake CityRedevelopment Agency.
A development team, which includesSwisher, Garfield, Traub as thedeveloper, VCBO Architecture and
Moshe Safdi as the architects and
Hamilton Partners as the private
developer, is moving forward on the
financing and feasibility of the
Performance Center. The proposed
facility will be approximately 148,000
square feet, with an estimated 150
performances per year and close to
300,000 patrons annually. The Center is
expected to have a yearly citywide
economic impact of $27.3 million.
In addition to the Performing Center,
Hamilton Partners plans to develop an
office building on the corner of Main
Street and 100 South. Still in the
conceptual design phase, the office
building is expected to be approximately
400,000 square feet with about 20
stories. Hamilton Partners will not begin
construction on the building until the
economy has stabilized and the market
has need of more office space, said Bruce
Bingham of Hamilton Partners.
“We believe that the office building
and Performing Center will be a
complement to the quality and design of
City Creek,” said Bingham.
Lisa Harrison Smith, deputy director
of communications for the RDA, said
the Utah Performance Center is still in
the early stages of development. Before
construction can begin, the RDA will be
working to finalize a plan of finance,
perform fiscal and economic impact
study, finalize operating models and
market analysis and analyze theater
impact on existing venues and arts
groups. Once the design has been
completed on the Center, construction
will take approximately 36 months.
Once approved and complete, the
Utah Performance Center will increase
the livability and viability of downtown
Salt Lake, Harrison Smith said. The
Center will draw visitors who will
patronage local restaurants and
businesses, acting as an economic driver
for the city, she said.
“The performing arts center will be a
centerpiece of Main Street attracting arts
lovers, building new audiences for all
downtown arts organizations, generating
stronger patronage for downtown
businesses, raising property values and
welcoming the region to Utah’s Capital
City,” according to the RDA.
The conversion of the Utah Theater
into the Utah Film and Media Center
will also complement the Performance
Center.The RDA, which owns the Utah
Theater, wants to phase this
development with street front retail or
development of art and cultural facilities.
UtahPerformanceCenteron MainBuilding Owner:Salt Lake City
Building Type:Arts and Culture Building
12 I UTAH FACILITIES JANUARY 2011
City Creek, a 20-acre mixed-use development project
sponsored by The Church of Jesus Christ of Latter-day Saints, is an integral part of the revitalization of
downtown Salt Lake City. The project, one of the biggestdevelopments in the United States with eight office towers, adepartment store-anchored regional shopping center, 700residential units and 5,000 underground parking stalls, isnearing completion after nearly 10 years since the project wasfirst conceived.
“We are in the final miles of a marathon,” said Mark B.Gibbons, president of City Creek Reserve, Inc., the downtownSalt Lake City redevelopment arm of the LDS Church.“Today we are probably at the 23-mile mark of that 26-milemarathon.”
On March 22, 2012, the 900,000 square-foot City Creekretail center, anchored by Nordstrom, located mid-block onWest Temple, and Macy’s, located on the east side of MainStreet, will open, concluding the final piece in the constructionof the three-block project. Managed mostly by TaubmanCenters, more than 80 retail stores, some open air and somelocated beneath a retractable roof, will flank Nordstrom andMacy’s, bringing more than 2,000 jobs to downtown. Thetotal retail square footage will be less than was available beforethe City Creek development began to better accommodateThe Gateway, allowing both projects to coexist and remain
viable to downtown, Gibbons said.A food court opened in the summer of 2009 and currently
has nine operating kitchens. Vendors include A Taste of RedIguana, Bocata, Chang Chun, Great Steak, McDonald’s,Roxberry Juice, Sbarro, Subway and Suki Hana. HarmonsGrocery Story is currently building a full-service grocery storyat 135 E. 100 South.
By reconfiguring the available retail space in downtown,CCRI hopes to revitalize the Center City and strengthenUtah’s economy, Gibbons said. More than 10 million visitorsare expected to visit City Creek per year, doubling the numberof yearly visitors to Temple Square, he said.
CCRI hopes the development and the addition of 800,000square feet of residential space will encourage populationgrowth in downtown. Approximately 700 residential units willbe built, some of which will be rentable properties. Theresidential buildings, Richards Court, The Regent at CityCreek and Promontory, should all be completed by mid-2011,he said.
The 2.1 million square-feet of office space will also be vitalin revitalizing downtown, Gibbons said. A six-story officebuilding is under construction on South Temple and isexpected to be complete by mid-2011. The KeyBank Towerhas been remodeled. The Deseret Building, also known as theFirst Security Building, has been almost completely restoredand is now “a beautiful jewel,” Gibbons said.
The entire development will encompass green space, waterfeatures and open walkways.The flow path of the south fork ofCity Creek, the lifeblood for the Mormon pioneers who firstarrived in the Salt Lake Valley in 1847, will be reintroducedinto the development as part of the seven acres of gardens andlandscaped open space. Walkways will follow historic routesfrom pioneer days, allowing mid-block access to residential,
T he General Services Administration will
own, operate and manage the newfederal courthouse which will be built on
the former site of the Historic Odd Fellows Hallon the block between 300 and 400 South and
Frank E. MossFederalCourthouse Building Owner:General Services Administration
Type:Commercial Office
Building Owner:City Creek Reserve, Inc.
Building Type:Mixed-Use
City Creek
Main Street and West Temple.A new federal courthouse was
necessary for Salt Lake City becausethe Frank E. Moss Courthouse doesnot have sufficient security nor does itmeet the new standards for federalcourthouses, said Al Camp, GSAproject manager on the courthouseproject.
The GSA will be responsible for the409,000 gross square-foot building,comprised of 10 stories of above-ground office space and two stories ofunderground parking. The buildingwill consist of 14 courtrooms, 16judge’s chambers, a floor for U.S.Marshal’s Services and space for otheradministrative uses, Camp said.
Planned to be built under theLEED (Leadership in Energy andEnvironmental Design) Goldstandards, the Federal Courthouse willhave high-efficiency boilers, chillersand glazing. The building controlsystem will also be comprised of themost up-to-date technology,minimizing the building’s energyconsumption.
“The whole building is kind of aspecial feature,” said SergeyAkhpatelov, associate with NaylorWentworth Lund Architects, thearchitectural firm on the project.
Okland Construction, who wasawarded the bid on the project, will
begin construction on the courthouseonce final approval has been given onthe funding. The building will take 38months to build. The U.S. FederalCourts will be moved into the newbuilding upon completion, at whichtime the Frank E. Moss Courthousewill be renovated to later house theBankruptcy Court and the U.S.Attorney’s Office.
“The economy is such that thebidding climate is favorable. It is theperfect time to build, from an owner’sperspective,” Camp said. “We areanxious to move forward on theconstruction funding and build it.”
office and retail elements of the community.To maximize the available open space, all parking at City
Creek will be underground. Approximately 5,000 stalls will beavailable for retail, residential and office parking. Gibbonsboasted about the innovative features of the parking garages,noting flat parking decks, columns which are only located at thetops of parking stalls and highly-automated parking machines.
Once completed, the entire development will revitalize
downtown Salt Lake City, ensuring a viable future for Utah’sresidents, Gibbons said. Not only will City Creek breathe newlife into Utah’s City Center, it will also “preserve and enhancethe world headquarters of the Church of Jesus Christ ofLatter-day Saints and respect the history and the heritage thatexists in that location,” Gibbons said. “It is a gift to this city,this community and this state by the Church of Jesus Christof Latter-day Saints.”
UTAH FACILITIES JANUARY 2011 I 13
14 I UTAH FACILITIES JANUARY 2011
Rendering courtesy EDA Architects
When The Leonardo opens
in the spring of 2011 in the
renovated Salt Lake City
Main Library, the building will operate
on updated mechanical and electrical
systems, contributing to the energy
efficiency of the more-than 50-year-old
structure, located at 209 E. 500 South.
The 113,000 square-foot building is
being converted into a museum for on-
site exhibits, workshops, classes and
teacher training that explore the
multidisciplinary worlds of science,
technology and art, courtesy of The
Leonardo, said Larry Migliaccio, The
Leonardo project manager. The
renovation of the building, which
began in July 2010, is being funded
through a $10.2 million bond. The
building will be completely remodeled
inside, while the exterior of the
building will be enhanced and
preserved.
“We are trying to upgrade systems
so they meet current building codes
and last another 50 years,” said Fred
Broberg, a mechanical engineer with
Colvin Engineering Associates and
senior project manager on The
Leonardo.
All of the old electrical systems will
be replaced with up-to-date, energy-
efficient systems, said Dave Whitton,
principal at Envision Engineering,
electrical consultants for The Leonardo
project. The transformers, which were
old and leaking, are being replaced with
new, pad mounted oil transformers.
New electrical panels will be installed.
And wiring devices will be replaced
with new switches and outlets.
A 30 KW photovoltaic system will
be installed on the roof to generate
additional energy for the building.
New, more energy-efficient light
fixtures will be used throughout the
building. Daylight harvesting, a control
system that reduces the use of artificial
lighting provided by interior electric
lamps by utilizing natural daylight
instead, will be implemented in offices
with perimeter windows.
TheLeonardoBuilding Owner:Salt Lake City
Building Type:Art, Culture and Science Center
Construction has begun on the six-floor, 171,000
square-foot Questar Corporate Headquarters, with
plans for tenants to occupy the space at 333 S. State
Street by February 2012.The shell and core of the building will
be complete in August 2011, at which time the building will be
turned over to Questar for tenant improvements.
Wasatch Commercial Management Inc. is developing the
new office tower, which will house 600 Questar employees, as
a new LEED Silver-certified building. In addition to the office
space, the ground floor of the building will have 6,500 square
feet of retail and restaurant space. Wasatch is partnering with
Zions Bank to build the $45 million building. Sub-contractors
on the project include EDA Architects, Inc., Dunn Associates,
Colvin Engineering Associates, Inc., EELD Associates,
Psomas Engineers and Arcsitio Landscape Architects.
Wasatch Commercial Management will manage the
Questar building in addition to the City Center building,
which occupies the same block, adding to its already extensive
downtown building portfolio of the Wells Fargo Center, the
Ken Garff building and 50 and 80 West Broadway buildings.
As general contractor and owner of the building, Wasatch
Commercial Management has a vested interest in ensuring
long-term durability while lowering life-cycle and
maintenance costs. Tait Ketcham, principal at
Dunn Associates, the
structural engineers for the Questar building, said the project
is a good example of value engineering, the process of finding
a system or product that saves money without sacrificing
function.
Communications between Wasatch and its architects and
engineers has been thorough and efficient, contributing to a
more economical build of the Questar building, Ketcham said.
For example, when the tenant, Questar, requested some design
revisions on the building, Wasatch was able to participate in
the discussions regarding the changes.
“They were able to coordinate with the sub-contractors to
implement those changes in a way that was quicker than the
former process of revising and submitting changes for
approval,” Ketcham said. “They were able to inform their subs
of upcoming changes sooner than what would have otherwise
been accomplished. Obviously as a design evolves, there are
changes that occur. With Wasatch building and owning the
building, they can comprehend the impact of those changes
more fully.”
Not only is Wasatch making the most of its position as
general contractor, the company is also making the most of the
current economic conditions in Salt Lake City. John
Dahlstrom, executive vice president of general council of
Wastach Commercial Management, said the timing of the
construction of the Questar building couldn’t have been better
with the City Creek development nearing completion and the
low cost of building supplies. And since the building will be
mostly occupied by Questar, the additional office space to
downtown Salt Lake City should have minimal impact on the
market, Dahlstrom added.
“We think the timing is perfect,” Dahlstrom said. “We hit
the building market at a time when a lot of projects were on
hold, and those that were being developed were reaching the
end of their development cycle. It is a favorable time in the
economic construction cycle in Salt Lake City to build at a
cost that we couldn’t have a year or two ago.”
UTAH FACILITIES JANUARY 2011 I 15
Additionally, the HVAC, mechanical,
plumbing and fire protection systems will
be completely updated in the building,
said Broberg. The HVAC system will
have new coils and controls. New
plumbing and piping fixtures and the
addition of overflow drains will bring the
building up to code, he said.
“We are replacing older equipment so
it will last longer. Putting in new controls
so it will control better,” said Broberg.
“We are updating it to meet current
building code, which is important for life
safety and ventilation.”
The combination of the new
mechanical and electrical systems will
contribute to the building acquiring
LEED (Leadership in Energy and
Environmental Design) Silver
Certification, a new requirement of all
Salt Lake City-owned buildings. In
addition, the seismic upgrades and the
abated asbestos will contribute to a
healthier and safer building for tenants
and visitors.
“Many changes will take place that
will not be visible to people who are
walking through the building,” Broberg
said. “But the building will function
better overall.”
The renovation of The Leonardo is
expected to be complete in the spring of
2011, with an opening date scheduled for
April 15. Ascent Construction is the
general contractor on the project. AJC
Architects were the designers on the
renovation.
“This will be a show piece for the
residents of Salt Lake City and is
expected to be a draw for tourism,” said
Migliaccio, who works for Parsons
Brinckerhoff.
Questar CorporateHeadquartersBuilding Owner:Wasatch Commercial Management Inc.Building Type:Commercial Office and Retail
Construction has begun on the
43,410 square-foot CityCreek Center Harmons, the
only full-service grocery store in SaltLake City’s central business district.
“This will be the first grocery storeto really be right downtown,” saidFrank Lundquist, vice president ofstore development for HarmonsGrocery Stores. “I think there is adefinite need for a grocer down there.”
Harmons had been looking for asite to build a downtown store whenthe Church of Jesus Christ of Latter-day Saints invited the grocer to be apart of the City Creek development,offering the site at 135 E. 100 Southfor the construction of the building.
“We’re certainly grateful to the LDSChurch for seeking our local grocerychain for this opportunity,and we’ve beenresearching, planning and testing thelatest trends in fresh foods, services andprocesses in the grocery industry sincethe announcement of this store nearlyfour years ago,” said Bob Harmon, co-owner and vice president of Harmons.
As part of the City Creek Center,Harmons will provide downtownresidents with signature fresh foods,including artisan bread, a carving
station with hot entrees, Italian gelatoand a large delicatessen full of freshly-prepared foods, said Lundquist. Theground level of the grocery will housefresh foods, a pharmacy, a floraldepartment, a deli, a pizza oven, agourmet cheese island, salad and olivebars, a custom meat counter, a producedepartment and other groceries. Theupper level will consist of a 18,412square-foot mezzanine with a creditunion, a Temper gourmet cookingproduct section and a cooking school,much like the Bangerter Crossingstore, he said. An upscale seating areawith a fireplace, couches, tables andchairs and Wi-Fi access will beavailable to customers.
Due to limited surface parking indowntown, a parking garage, fullyequipped with elevators, will be builtabove the store — an unusual featurefor a grocer in Utah.The parking garagewill mimic those found above grocerystores in San Francisco and LosAngeles. Two hundred stalls will beavailable for Harmons customers, withthe remainder being reserved for theLDS Church. Lundquist said theenclosed parking structure will be
especially beneficial during rain or snowstorms, helping to keep customers andtheir groceries dry. He suspected thatmanagement of the garage wouldrequire a slightly different skill set thanmanagement of the typical field parkingfound at other Harmons.
Harmons City Creek will look quitedifferent from the traditional Harmonsstores. The company has decided toforgo its traditional solid brick design,replacing the facade with expansiveglass exteriors, complying withdowntown ordinances, Lundquist said.
The design and construction teamon the downtown Harmons includesOkland Construction, Skidmore,Owings and Merrill, LLC, PrescottMuir Architects, City Creek Reserve,Inc, MHTN Architects, SpectrumEngineers and ProfessionalEngineering Services. Construction onthe City Creek Harmons is expectedto be complete by late 2011.
“Harmons is doing its part to boostthe local economy through the CityCreek project, and we appreciate thecommunity’s enthusiasm and supportof our locally-owned downtown store,”said Harmon.
Building Owner:Harmons
Building Type:Commercial Grocer
Harmons
16 I UTAH FACILITIES JANUARY 2011
UTAH FACILITIES JANUARY 2011 I 17
N early 10 years ago, Layton Construction Company
started Interior Construction Specialists, Inc. to
meet the needs of commercial tenant improvement,
renovation and remodel markets. Their services have been
especially beneficial for owners and tenants of Salt Lake
City’s downtown office buildings who are trying to stay
competitive in a market where a significant amount of new
office space is being introduced, said Alan Rindlisbacher of
the Layton Companies.
“The bottom line is there is activity going on in downtown
and it is opening up opportunities for tenant improvement,”
Rindlisbacher said. “It is all part of the fact that downtown is
rising.”
As Hamilton Partners secures new tenants in its Boston
Building in downtown Salt Lake, tenant improvement work
is being completed throughout the entire building, as well as
a core upgrade including HVAC and seismic work. Recently,
EDA Architects relocated to the Boston Building after 20
years in the Broadway Center. The 7,400 square feet now
occupied by EDA was renovated to show the history of the
downtown office building. Demolished interiors were from
an earlier era where all elements of the building’s structure
were hidden behind drywall and dropped ceilings. The space
now has exposed floors, beams, columns and masonry and
includes 40 workstations, multiple collaborative breakout
spaces along with large conference spaces.
“The move to this historic structure symbolizes EDA’s
continued commitment to the downtown community,”
according to EDA’s website.
PriceWaterhouseCoopers, an accounting firm, is also moving
into space that was recently renovated by Interior Construction
Specialists in the One Utah Center on Main Street. The 4,700
square feet of office space will be completed by early January 2011.
Organizational changes associated with KSL TV, KSL
Radio and the Deseret News led to the renovation of two
floors of the Triad Center. Build-out is also occurring on two
additional floors of the Triad Center.
In the past decade, Interior Construction Specialists has
completed nearly $500 million in renovations and tenant
improvements. That work comprises a long list of “small
projects” that have added up to big business for tenants such
as American Express, CB Richard Ellis, Discover Card
Services, Ernst & Young, Holme Roberts & Owen and
Squatters Pub Brewery. UF
Keeping Up with the Jones’Building Owners Turn to Tenant Improvements,
Renovations to Stay Competitive
Interior of EDA Architects officespace in the Boston Building.Photo courtesy Chris Knoles
of The Layton Companies
CommunicationKey toEffectivePropertyManagement By Kelly Lux
Todd Maybe, Senior PropertyManager for Zions Securities
Company. Photo by Dana Sohm.
Todd Maybe was introduced into
the property management world
at a young age. His father, who
was a building manager in downtown
Salt Lake City, would bring the young
Maybe to work with him and show him
the chillers and the high speed motors
that kept the buildings operational.
During these outings, Maybe learned to
love building equipment and systems.
“I’ve been around this stuff for a long
time,” said Maybe, who is now the
senior property manager for Zions
Securities Company LLC. “Buildings
intrigue me.”
Maybe was employed as a master
electrician in the 1980s when his father
invited him to work at the JCPenney on
310 S. Main in Salt Lake City as a
building engineer. Maybe accepted,
wanting to come in from the cold.
Eventually, Zions Securities offered
Maybe his father’s job managing the
JCPenney Building. Maybe had been
anticipating the offer and had prepared
himself by going back to school and
getting his bachelor’s degree in business
management. Maybe would later
become the senior property manager for
Zions Securities.
“I wanted to get rid of my suit and
put my Levi’s back on and actually take
care of the equipment side, where you
can see what is broken and you can go in
and take care of it and see the results of
your work,” Maybe said.
18 I UTAH FACILITIES JANUARY 2011
UTAH FACILITIES JANUARY 2011 I 19
“I am very interested in what makes
the buildings tick and the structure of
buildings.”
Primarily over the management of
the 500,000 square-foot Triad Center,
located at 55 N. 300 West in Salt Lake
City, Maybe manages the operations
staff for each building at the Triad
Center and works with another
property manager who oversees
additional properties owned by Zions
Securities. The complex nature of the
commercial property of the Triad
Center can be challenging at times,
Maybe said. The Triad Center consists
of the BYU Salt Lake Center, the LDS
Business College, the Devereaux
House, the Carriage Cafe and two
other office buildings, as well as
parking facilities, creating a challenging
mix to manage.
“It is such a big mixed-use property
and there are so many different people
involved that I sometimes feel like I
am the juggler keeping the stack
together and keeping it moving,”
Maybe said. “I just have to make sure
that everyone is aware of the changes
and that we make sure we consider
everyone who is involved.”
As an older facility built in 1984,
Maybe said the Triad Center is
undergoing a series of upgrades,
including restoration work,
modernization of elevators, fire system
upgrades and new, energy-efficient
mechanical systems. All of these
changes require Maybe to maintain
communications with all tenants,
keeping them involved and aware of
what is going on in their buildings.
These upgrades are part of Maybe’s
focus on preventative maintenance. He
believes that foresight in determining
what systems need to be maintained
and what systems need to be upgraded
is the best way to protect the building
owner and their assets.
“It is just putting that five-year plan
together and making sure that you put
forward the work and the effort to make
sure it is the best solution to fix problems
or upgrade systems,” Maybe said.
Besides maintaining the building,
Maybe feels it is also important to keep
tenants happy.
“I want to make sure the property
looks nice, that people are treated fairly
and honestly and that the tenants are
respected,” Maybe said. “We make sure
we take care of our tenants and that
they are happy with the services they
get from us. … I wouldn’t be in
business if the tenants didn’t want to be
in my property, if I didn’t treat them
fairly and provide them with the
services that they need.”
This management style may be part
of the reason why the Triad Center is at
full leasing capacity. The economy has
had little impact on the property,
Maybe said. Operating as an
educational center has also played a
role in the buildings’ success and its
future, which is to convert the entire
Triad Center into an education facility.
During this transition, Maybe plans
to continue with operations as usual at
the Center. And, as the president-elect
of the Building Owners and Managers
Association of Utah, he will continue
to look for new opportunities to
improve his skills and gain knowledge
about the industry.
Maybe believes that participation in
BOMA, or any similar organization,
can be a great benefit to property
managers. BOMA provides oppor-
tunities for building owners and
managers to exchange ideas and
perspectives. Maybe calls it education
without the cost of tuition.
“It goes way beyond being a
member of an organization and having
lunch,” Maybe said. “It is school in
itself. It is a place where you can better
yourself and improve your skills.” UF
property manager
20 I UTAH FACILITIES JANUARY 2011
Office demand picked up
during 2010, but remainedat subdued levels. Looking
ahead to 2011, it’s expected thepositive trends will continue andsteadily improve. Much like 2010,the first half of 2011 will be affectedby a handful of large transactions.The Cottonwood submarket isprobably the most dramatic exampleof how large transactions can inflatemarket indicators.
When several tenants move intotheir recently leased space during thefirst half of 2011, Cottonwood ClassA vacancy is estimated to fall toaround 3 percent. This year,Cottonwood’s performance will bemost affected by Fusion-io, arelatively new company that isdeveloping solid state storageproducts. Their expansion at theCottonwood Corporate Center willtotal almost 118,000 square feet, orroughly 8 percent of Class A space inthe entire submarket. Although thisrebound is exemplary, not all
submarkets will achieve anywherenear that level of success in 2011.
A few key developments will aidrecovery on a market-wide basis overthe next year. First, most office spaceinventory will be on the market by thebeginning of 2011, including formersingle tenant properties. Additionally,the duration of the “Great Recession”and accompanying problems in thefinancial sector caused a tremendousrestriction in credit availability. As aresult,many projects were not funded,preventing large amounts of newsupply from entering the market.Without new office construction,demand will increase for existingspace, allowing the market to morequickly reach supply and demandequilibrium. Vacancy rates can beexpected to decrease this year andasking lease rates will stabilize. Highdemand areas are even likely toexperience upward pressure on askinglease rates by the second half of theyear. Furthermore, favorabledemographics, which cushioned the
state’s economy from reaching lowerlevels, will amplify positive trendsduring the coming year.
Current economic forecasts for2011 give reason to be optimistic.Arthur Jones, senior economist at CBRichard Ellis Econometric Advisors(CBRE-EA), expects job growth inSalt Lake to outpace 2010 levels andaccelerate during the second half of2011. Professional service sectors,which drive office growth inparticular, will show a markedimprovement during the coming year.By the second quarter of 2012,CBRE-EA expects a total of justmore than 16,000 new office jobs tobe created before normalizing athistoric trend levels. Office product inSalt Lake will benefit more thanother markets due to a local economythat is strongly oriented towardprofessional services.
Although Salt Lake’s economyboasts many favorable attributes thatwill help it recover, a dramaticturnaround in demand for office space
Office Market Outlook for 2011Positive Trends Expected to Continue, Improve SteadilyBy Darin Mellott
Photo by Dana Sohm
should not be expected. However,conditions will continue to improve andoutperform national averages. Many ofthe same business strategiesimplemented during 2010 will berequired in 2011.
From a property managementperspective, not much changes accordingto Gary Coker, managing director ofAsset Services at CBRE.No matter whatthe general economic outlook, Cokersaid, “Sound property managementfundamentals are always important, butin a downturn, we place an even strongeremphasis on tenant relations andretention.” CBRE building managersstrive to find and employ the most costeffective methods to maintain assets.According to Coker, “Our managersfocus on lowering operating expenses,which become even more critical topreserve asset values during a downturn.”
From a leasing perspective, landlordsneed to remain aggressive. Althoughdemand trends are encouraging, largeamounts of shadow and former singletenant space entered the market over thelast year. For that reason, vacancycontinues to remain at elevated levels inspite of a return to positive absorption.Incremental improvements in demandwill not translate into decreasedcompetition for landlords during the near-term due to an excess amount of inventoryalready on the market in most areas.
Moving forward, new spaceutilization techniques will be a drag ondemand. One of the most dramaticexamples nationally, is the accountingfirm Deloitte’s new headquarters in SanFrancisco. Although the company plansto increase its current workforce by 10percent, total square footage occupiedwill shrink by roughly 40 percent.Similarly, in Salt Lake City, investmentfirm Goldman Sachs is on the cuttingedge of creating more efficientworkspaces. Goldman will be locatingan estimated 1,250 employees in154,000 square feet of office space, or123 square feet per employee. Deloitte’splans allocated almost exactly 100square feet per employee.
Both Deloitte and Goldmanrepresent a dramatic departure from the200 square feet per employee average
currently used to calculate space needs.Interestingly, companies will now be ableto lease space in newer buildings that canhandle increased density, feature greentechnology and boost prestige, all whilepaying lower rent on a per employeebasis. First Vice President TabCornelison at CBRE commented aboutrecent trends saying, “Whenorganizations evaluate their office needs,they are focused on employing the mostefficient and creative office designsavailable. Additionally, tenants areexpecting deep discounts due to thegenerally subdued state of the economy.”
The year 2011 will not usher in thesame type of euphoric growth that wasobserved in commercial real estateduring the last decade. Barring anyexternal economic shocks, 2011 will bemuch like 2010 with incrementalimprovement, but at an accelerated rate.Aside from a few large movements,underlying trends will be lessimpressive. Consistently robustabsorption will only return as the jobmarket recovers. Furthermore, tenants
will require less square footage as officespaces are designed to be more efficient.Lease renewals during the coming yearwill be signed in many cases byorganizations that emerged muchleaner from the recession. As a result,space inefficiencies created by workforce contractions will be correctingthemselves, further dampening growth.Continued challenges facing the marketwill require landlords in particular tomaintain an aggressive approach totheir business.
Darin Mellott is a research analyst atCB Richard Ellis. Additional contributionand editorial review by StephanieMarthakis, research manager at CBRE.CB Richard Ellis offers strategic adviceand execution for property sales andleasing; corporate services; property,facilities and project management;mortgage banking; appraisal andvaluation; development services;investment management; and researchand consulting.Visit their website atwww.cbre.com/slc. UF
UTAH FACILITIES JANUARY 2011 I 21
office market outlook
22 I UTAH FACILITIES JANUARY 2011
Conserving natural resources
and improving the indoor
environment of retail locations
to make it more advantageous for
customers to visit is a common interest
among building owners. The causes of
poor indoor air quality are better
understood today, yet options that lead
to better air quality are sometimes
overlooked. Not only are basic design
elements, such as ventilation systems,
critical, but architects, designers and
facility managers need to also recognize
the impact of building materials and
cleaning processes.
The choices we make for carpet
cleaning can impact these
environmental concerns and should be
taken into consideration. Along with
the focus of using environmentally-
friendly (green) cleaning products, it is
also important to review the amount of
water used during cleaning and the
amount of organic particles (mold
spores) released into the air due to
excessive moisture in the carpet.
Dusts and bio-aerosols are common
contributors to ongoing poor indoor air
quality. (Bio-aerosols can be pollen,
bacterial, fungal or mites.) Therefore, it
is essential that buildings be kept clean
and dry. Poor cleaning practices will
contribute to the accumulation of dusts
and biological debris.
Inadequate frequency of cleaning or
incorrect cleaning can result in poor
indoor air quality due to soil
contaminates that build up in the
carpet without proper removal.
Airborne particulates and organic
growth increases as the soil levels grow.
The introduction of substandard
cleaning chemicals can trap and attract
soil more rapidly.
For decades, the popular choice for
carpet cleaning has been hot water or
steam extraction,
which utilizes a
high volume of
water and
detergent solution
to rinse the soil
from the carpet.
This method takes
an extended time
to dry and the
moisture left behind can breed mold and
mildew spores that may be released into
the indoor environment. Some
extraction chemicals can also cause rapid
re-soiling due to the detergent residue
left in the carpeting after it dries. This
method should only be used for
restorative purposes and be followed by
fans that dry the carpet as quick as
possible.
Another alternative is dry
compound “powder” cleaning. This
absorbent mixture, resembling wet
sawdust or powder, is spread over the
carpet. A machine brushes the mixture
into the carpet to absorb the dirt.When
the mixture dries, it is vacuumed out.
This method does not have over-
wetting or moisture concerns, but
certain soil levels might not be fully
removed and powder particulates are
sometimes left in the carpet and may be
released into the indoor environment.
This method usually requires an annual
hot water extraction to remove any
powder or excessive soil residues.
A technology that is gaining strength
for retail spaces is low moisture
encapsulation cleaning. Encapsulation
utilizes a specialized polymer
technology that removes soil from the
carpet fibers and encapsulates or
surrounds it in a crystalline coating that
dries brittle for easy removal with a
HEPA filter vacuum. This method
utilizes a foam/spray application with
brush or pad agitation which minimizes
the water required for effective cleaning.
The following are the most
noteworthy benefits of encapsulation
carpet cleaning:
• Powerful Polymers: These
detergent polymers encapsulate
and suspend ground-in dirt. The
polymers also enhance the
efficiency of routine vacuuming,
allowing for continued removal of
residual soils after the initial
application. This preserves the
appearance of the carpet fiber
long term with less disruption.
• Stain Resistant: Encapsulation
solutions also contain stain
resistors that provide superior
protection from acid dyes
commonly found in food and
other items.
Proper Floor CareImproves Air QualityBy Thomas Carlson
Indoor Air Quality• The levels of some pollutants in
indoor air have been found to beconsiderably greater than inoutdoor air.
• The average person spendsapproximately 90 percent of his orher time indoors.
• OSHA estimates 30 percents ofcommercial buildings have indoorair quality problems — potentiallyaffecting about 21 million people.
• Surface Tension Modifiers:
These chemicals enhance the
product’s efficiency and are
particularly effective in removing
oils and greasy dirt found in many
commercial carpets.
• Continued Protection: Correct
cleaning frequently, utilizing high
quality encapsulation products,
can keep the carpeting looking
great with little visual
degradation between cleanings
due to the soil and stain resistant
properties that are introduced
with each cleaning.
• Water Conservation:
Significantly less water is used for
encapsulation cleaning versus
conventional hot water extraction,
which enables use of carpeted
areas sooner. This keeps the
carpeted areas accessible to
customers and also eliminates
problems which can be caused by
lingering moisture.
• Indoor Air Quality: Creates
fresher, healthier environments
by reducing odors and soiling
caused by either excess water or
sticky residues. Organic
compounds such as oils,
particulates, mold, mildew and
fungus are encapsulated and
many times eliminated from
existing contaminated carpet.
• EPA (dfe) designed for the
environment “Green”: dfe
Certified encapsulation carpet
cleaning products will not harm
the environment. They are free of
hazardous air pollutants that can
negatively affect indoor air quality.
In addition, the product contains a
light, clean, fresh scent as opposed
to unpleasant chemical odors,
which are emitted from traditional
carpet cleaning solutions.
With Indoor Air Quality (IAQ)
being an area of increased government
and building occupant concern, it is
apparent that the focus on cleaning will
be equally important for health reasons
as well as appearance levels. An
efficiently planned, regular maintenance
program for your commercial carpet will
create a more pleasant environment for
your customer, prolong carpet fiber life
and improve carpet appearance. The
correct carpet cleaning methods will
help conserve natural resources and
provide a clean indoor environment for
your patrons.
Thomas E. Carlson, president of
Commercial Service Solutions, has nearly
three decades of experience in all aspects of
the carpet industry, including production,
installation and maintenance. UF
UTAH FACILITIES JANUARY 2011 I 23
flooring
Keys to Recession-Proofing Your Careerin Property Management
24 I UTAH FACILITIES JANUARY 2011
careers
A s the nation struggles through
the current recession, theunemployment rate remains
unstable, threatening the stability ofmany property manager’s careers.Proactive measures like increasing yourjob performance and setting goals canhelp to recession-proof your career.
“To recession-proof your career,do anhonest self-assessment, accept the truthand move forward to change your futureand your career,” said Michael Cowley,president of CE Maintenance Solutions,at the Facility Decisions Conference &Expo in Las Vegas. Property managerswho want stability in their careers shouldanalyze their job performance throughhonest critiques, performance appraisalsand peer evaluations, he said.
Honestly assessing your career is thefirst step to solidifying your employmentduring unstable times, Cowley said. Askyourself whether you are below average,average or above average, he suggested.Most people feel they are above average.The reality is, however, that most peopleare average, meaning you get to work ontime, complete assignments, do what isexpected and do it well, he said. Strivingto be above average, going above andbeyond the call of duty, will place youabove your peers.
“Ask what makes you special. If youwant to grow, you have got to be special,”Cowley said. “That is the key topromotion.That is the key to your future.”
Cowley offered several suggestionson how to become an above averageemployee: continue your education,volunteer for assignments, joinprofessional organizations or becomea teacher.
Put some effort into increasing yourknowledge about your profession,Cowley said. He suggested takingcourses, attending training seminars andeducational conferences and signing upfor Webinars.Read books and magazinesrelative to your industry, he added.
“There is a bunch out there. Thereis a bunch you can learn,” Cowley said.“Pursue higher education. It will giveyou information and skills to learn andto grow.”
Offer to do something outside ofyour normal assignments and dutieswithout being asked, Cowley suggested.Help with meetings. Volunteer to speakat conferences. Do something thatmakes you uncomfortable, he said.
“Your boss will be surprised andimpressed,” he said. “He will know hecan depend on you.”
There are hundreds of professional
organizations available for property
managers to join. Find one that is right
for you, Cowley said. Choose one that
allows you to network with peers in your
profession who will understand your
world. Networking allows you to gain
knowledge and develop new ideas. It can
also open up new job opportunities.
Teaching courses or seminars on
property management is the best way to
learn more about your profession, he
said. You learn more as a teacher than
you do as a student.
“Be a teacher of your profession, not
a student. Be a player, not a pretender.
Be a leader, not a follower,”Cowley said.
“Teach a class in your facility or
maintenance organization to share your
knowledge. Assist those entering the
profession by becoming a mentor.”
Distinguish yourself from your peers
by always looking toward the future and
investing in your career, he said.
“Step out of your comfort zone, take a
long look in the mirror,and begin planning
for your future,” Cowley said. “Mainte-
nance needs and expertise will always exist,
so if you have the credentials and the drive,
the profession will need you.”UF
W ith the constant techno-
logical advances in our
world, it’s not surprising
when we are told that our laptop
computers are simply too old to
upgrade or repair and that our
Smartphones are simply antiquated.
We are then forced to break into our
wallets and spend a few hundred or a
few thousand dollars on the new and
improved version. For the most part, we
all have come to accept this in our lives
and budget accordingly. But what
about other types of equipment that
utilize processors or electronics, are
they any different? And what about
technology that protects life and
property?
Fire alarm systems have been
around in some form for many years.
Like anything else that is electronic or
technology based, alarm systems
started out in a simple form with
simple functions and have evolved into
what can be a complicated system of
panels, devices and technical building
integration. Fire alarm systems utilize
circuit boards and processors, just like
your laptop and smart phones. And just
like those pieces of technology, they
can wear out or become antiquated to
the point that they are simply too
difficult or impossible to repair or even
find parts for.
Fire alarm systems are generally
designed to last 10 to 15 years. They
can last longer with proper
maintenance and/or limitation on
expansion, but maintenance is vital.
Once these systems get a certain age,
the technological advancements simply
outpace the demand for the old parts or
support. It is common for major
manufacturers to simply stop
supporting the old technology. In most
cases, the old technology cannot meet
the new code requirements or the spec
requirements of the engineer. (This is a
common practice for all types of
electronics
and software; try
getting a 15-year-old
laptop repaired.) It then can
become problematic to repair older
systems and even more difficult to
expand an existing fire alarm system.
Even if you’re lucky enough to scrape
enough of the older parts together,
sometimes the labor involved to piece
these devices together outweighs the
material savings.
If your building employs an older
fire system, and you’re considering an
expansion or remodel, you should hire
an inspection company to evaluate the
system and see if an upgrade is
required.
Try to make decisions based on
future needs. If you think you will have
frequent remodeling or changes, then
you will want to start any major fire
alarm upgrades early in the plan. Keep
in mind, those old devices such as horn
strobes and smoke detectors will
probably not be compatible with a
newer system. There are many listings
that fire alarm systems are required to
have, and that means you cannot always
mix and match devices and rarely can
you mix and match brands that are not
designed to work with each other.
Also, when deciding to install a new
system or renovate an existing system,
take time to research the manufacturer
of the product. There are many brands
but only a handful of major
manufacturers. If you make the
wrong decision, you could be left
with a brand with such strict
limited distribution that you end
up only having a single choice in
fire alarm contractors and service
providers in your area.
The most important decision you can
make is to ensure that your fire alarm
system is properly maintained and
inspected on at least an annual basis.
This is all in accordance with the code
requirements.There is not much point in
having a fire alarm system that does not
operate in the event of an emergency.
Well-maintained systems are the smart
choice when developing your building
maintenance and budget plan.Fire alarm
systems are your first line of defense in
an emergency situation. Prudent and
practical maintenance will not only
ensure proper operation but will help you
get the maximum life out of your
valuable investment.
Josh Elder is the
R/S/I manager for
Firetrol Protection
Systems, Inc.
He can be reached at
801.485.6900. UF
UTAH FACILITIES JANUARY 2011 I 25
Technological Changes in Fire Alarm SystemsRequire UpgradesBy Josh Elder
fire alarm systems
26 I UTAH FACILITIES JANUARY 2011
As I am writing this article, I can
already hear a few of you ownerand management types asking
yourself, “Why do I need to know aboutconstruction defects? Isn’t that someoneelse’s responsibility?” Or perhaps, “Thatsure does not effect me!”Neither responsecould be further from the truth. Thecorrect response should be, “What is aconstruction defect, and how does thisaffect the building I own and/or manage?”
Today, with the rising costs ofenergy, the need to conserve and beenvironmentally conscious, along withthe cost and benefit of any real propertyimprovement, it is paramount to havean understanding of constructiondefect elements and of applying themto your portfolio, as this providestremendous benefits and should be anintegral component of your operationsand risk management.
In reality, there are four elements ofconstruction defect avoidance: contracts,design defects, product defects andinstallation or labor defects. As there isnot space in this article to cover themeach in detail, nor to cover specificconcerns on individual properties, I willexplore each element briefly in this andin a subsequent article.
ContractsSome experts leave out the first
element of contracts simply because theysee it as another dimension to the overallprocess,which is not construction relatedand therefore not a defect. Throughoutmy career I have seen and experiencedmany cases where the element of thecontract would have completely avoidedthe end result of other defects anddeficiencies, had the contracts beenproperly thought through, prepared,executed and followed.
Using construction terminology orsymbolism, the contract is the keystoneor foundation for all the other elements.It should represent the entire agreementbetween the parties, outlining suchthings as the standard for any work being
proposed, the payment for those servicesand materials and a scope of work foreach and every aspect of the work to becompleted. It also should include theguidelines for completion, time lines ofthe proposed work, work conditions andpayment provisions, as well as anypenalties for non-completion or timedelays affecting the contract.
Recently, I was engaged in the resolveof a conflict due to inadequate contractdocuments. Although the issues weremany and complex, the root of each coreissue pointed to the original contract,which lacked clear and specificperformance details as well as adequatelanguage detailing which party was to dowhat and when it had to be performed orcompleted. In essence, the parties failedto clearly state the objectives andoutcomes sought and were not on thesame page. They were going downcompletely different paths, neither ofwhich would appease both sides to theagreement. Work was not completed ascontemplated, deadlines andopportunities were missed and eachparty blamed the other for the failure.
I am continually amazed by thenumber of projects I encounter, whichhave no written contract. Many others,such as the example I have given above,have weak or non-existent performanceelements with no clear understanding asto who will do what. This is a recipe forproblems down the road.
It is to your benefit to engage yourlegal council early in the process to makecertain you are covering the necessaryelements in any contract prior toexecuting it. Dollars spent now will yieldsavings in the future.
DesignDesign represents the construction
drawings and plan specifications whichdetail the proposed work andimprovements. It is just as important inremodeling and mechanical upgrades asit is for new construction. The designprofessional preparing the documents
must be familiar with the project andmust make certain the specifications andplan details can be built according to anymanufacturers specifications andperformance guidelines.
This is often missed or glossed overby some design professionals. Somepractitioners state that this responsibilityfalls to the team or company who isdoing the actual work; nothing,however, is further from the truth.Design guidelines and documents mustinclude the details and the specificationsnecessary to clearly outline both theintent and the application particular tothe environment of the project.Engaging a design professional andrequiring a complete set of constructiondocuments with sufficient detail is thesurest method to ensure problems andpotential defects are limited orpreempted.
Adhering to the first two elements,that of well-prepared contracts anddetailed design documents, greatlyreduces liability and exposure should anylegal action occur later.The other defectsof product and installation will becovered in my next article.
By applying these principals on eachand every project, from a new build totenant improvements or whole structuremechanical and other upgrades, thelongevity and durability of the structureincreases and the operating costs arelowered. This might well provide a greatcost benefit to you as the owner ormanager.
Mark T. Woolley is the founder andpresident of Buildtec Solutions, an industryconsultant, specializing in constructionrelated issues, including defect avoidance.Mark represents owners, contractors andinsurance firms as well as their legaladvocates in resolving defect issues andclaims. He can be reached [email protected] or801.550.9996. UF
contracts
The Anatomy of Construction DefectsWell-prepared contracts and detailed design documents reduce liabilityBy Mark T. Woolley
UTAH FACILITIES JANUARY 2011 I 27
Cash is king when it comes to
valuing a property manage-ment company, according to
Don Drysdale, managing member ofDrysdale Valuation PLLC.
“A company can have all kinds ofearnings, their income statement canlook good, but they can still be cashpoor, even if their profit and lossstatements look good,” Drysdale said.
The value of a company depends onthe cash flow as well as the risk associatedwith the business, Drysdale said.Valuation companies will carefullyconsider a company’s cash flow, looking atthe past and the present and assessing thefuture.The future state of the company isimportant in determining risk.
“We are careful in looking at cashflow because the past doesn’tnecessarily equal the future,” Drysdalesaid. “We make sure there aren’t issuesand items that would change thefuture cash flows.”
A company with an equal amount ofcash flow but less risk than anothercompany will have a higher overall value,Drysdale said.Unfortunately for propertymanagement companies, the risk is fairlyhigh either way due to the current state ofthe economy, or what Drysdale called
macro-environmental factors.“We can see that the economy, these
external factors, have had a huge impacton the value of companies in the realestate industry,” Drysdale said. “And wecan’t ignore that.”
Property management companies, aswell as any real estate-related business,have lost value because they are perceivedas more risky than they were five yearsago, Drysdale said. Fortunately, there areways for these companies to retain theirvalue and reduce their risk.
Valuations can be done for a numberof reasons, said Drysdale. But no matterwhat the reason, Drysdale says anycompany, even property managementcompanies, can benefit from avaluation. A valuation company canassess the value of a company andprovide options for property managersin terms of increasing value.
“If done properly, business valuationscan provide a wealth of information tothe business owner, things they may nothave even thought about,”Drysdale said.“We can help business owners increasethe value of their property. We can comein and assess the business and providethe business owner with a whole host ofways and manners that they can improve
their business — make it more valuable.”The owner of a property manage-
ment company can trim the costs oftheir operations and increase efficiency,Drysdale said. An owner can be moreselective in their tenants, leasing tobusinesses that show more long-termhealth and provide adequate cash flow.Consider paying bills on time insteadof early, suggested Drysdale. Inaddition, owners always have theoptions of increasing prices and cuttingcosts, he added.
“There are other things that can bedone,”Drysdale said.“Sometimes it takessome creativity to look at those things.”
Valuation companies that have abusiness valuation credential andmembers who are knowledgeable as wellas specialized will be more beneficial ingiving direction to property managerswho wish to increase the value of theircompany, Drysdale said.
“Valuing a business is not a science,”Drysdale said. “You can’t just run someformulas and calculations and say, hereis the value.There is a level of art that isnecessary. In reality it is a craft, muchlike a surgeon. You need the technicalknowledge as well as the skill.” UF
Value of a Property Management CompanyDependent Upon Cash Flow, RiskBy Kelly Lux
Commercial buildings
account for 19 percent of
energy consumed in the
United States, according to
the American Council for an Energy
Efficient Economy (ACEEE).
Although most of the energy used by
commercial buildings goes toward space
conditioning and lighting, installing
energy-efficient windows in new
construction or retrofits can help reduce
energy use and costs.
An opening in your commercial
building’s envelope (its outer shell) is
called fenestration, a term that
includes windows, skylights and doors.
The amount of energy lost through
windows can be significant. According
to ENERGY STAR, it is estimated
that nearly 30 percent of a commercial
building’s energy dollars are simply
going “out of the window.” Since there
are usually numerous windows in most
buildings, they represent a large source
of unwanted heating and cooling loss.
Energy-efficient windows can
improve the overall comfort and
energy efficiency of a commercial
property and provide cost-saving
benefits for many years. Energy-
efficient windows have lower heat loss,
less air leakage and warmer window
surfaces that improve comfort and
minimize condensation. In addition,
they can provide increased light and
lower heating and cooling costs.
Two or three layers of glass and
invisible reflective coating provide
insulation and repel the sun’s heat
while stabilizing your building’s indoor
climate. Savings realized from
installing energy-efficient windows
can be significant if the window
replacement rectifies issues such as
long-term air leakage.
To find energy-efficient windows,
simply look for the ENERGY STAR
logo or look for efficient windows with
a U-value of 0.30 or lower. For
guidance, you can always check with
your local window provider.
Installing new, energy-efficient
windows will improve your building’s
energy performance and may improve
its appearance, functionality and
efficiency. In addition, various tax
credits and rebates are available for
installing energy-efficient windows.
Check with your local utility to see if
there are rebate programs available to
help you offset the cost of installing
energy-efficient windows and stop
throwing your money out the window.
For more information about energy
eff iciency, technical assistance and how to
take advantage of rebates for natural gas
equipment, contact Questar Gas
Company about their ThermWise
Business program at ThermWise.com or
800.323.5517. Additional resources and
incentives may be available for electric
equipment by visiting
rockymountainpower.net/utsave. UF
28 I UTAH FACILITIES JANUARY 2011
✔ Select windows with low U-values tomaximize energy benefits.
✔ Look for the National Fenestration RatingCouncil (NFRC) label; it means thewindow’s performance is certified.
✔ Select windows with air leakage ratingsof 0.3 cubic feet per minute or less.
✔ Remember that new windows must beinstalled correctly by a reputable,qualified installer to avoidair leaks around the frame.
Tips to choosingthe right type
of energy-efficientwindowfor your
commercialproperty:
UTAH FACILITIES JANUARY 2011 I 29
Today’s buildings are designed
to maximize the productivity
of the people who work
inside. Modern building codes ensure
there is plenty of quality light,
adequate fresh air to keep workers alert
and healthy, and climate control
systems to keep the people efficiency
factor as high and productive as
possible.
Most buildings are equipped with
some sort of control system to tie all of
the pieces together and make the
building operate effectively. For the
most part, the control system does its
job silently in the background. Only in
the event of a problem do we tend to
turn our attention to the building
controls.
Control systems have many built-in
tools to help manage buildings better,
but many of these tools are seldom
used. Quite often these tools already
exist in the building’s control system.
We don’t even have to buy them. The
control system is programmable and
can be easily modified and customized
to suit management needs.
Equipment Utilization ReportsReporting capabilities of a building
control system are powerful. Monthly
utilization reports offer statistics from
the building that managers seldom see.
These reports can show the fraction of
equipment usage by month or year.
Equipment usage can be tracked
against baselines. Most control systems
have reporting capability included
with the software.These reports can be
customized to include daily run-times,
which allow for easy performance
comparisons between periods. Month-
to-month or year-to-year comparisons
are easy to create. Weekend, holiday
and other unoccupied period
performance can also be evaluated.
Sub-MeteringHave you ever invested in an
energy-saving strategy and wondered
what actual savings were realized?
Sub-meters installed inside the
building can answer these questions.
Control systems can provide real-time
data to show what portions of energy
consumption are currently allocated to
lighting, HVAC and other building
systems. Energy usage goals can be set
and the daily and hourly achievement
of these goals can be measured by a
variety of sub-metering techniques.
Sub-meters also define what fraction
of energy bills are used for lighting,
outside lighting, snow melt, HVAC,
manufacturing process and other
systems to help us identify over-usage
and building deficiencies. Sub-
metering is also frequently used to
track utility bills for accuracy.
Tenant or Department BillingWith run-time monitoring and
sub-metering systems in place, it can
be possible to evaluate which areas of a
building are using the most energy.
Energy budget dollars can be divided
and allocated to the responsible party.
This can create incentives for
departments to be more energy
conscious and budget minded. In
tenant leasing situations, profit centers
can be created by negotiating leases to
include tenant billing for after hours
usage of building systems. Monthly
billing reports can be generated by the
control system.
Energy DashboardAn energy dashboard is a window to
the control system that shows building
occupants the current performance of a
building. Energy goals are displayed
and real-time achievement of these
goals can be monitored. Typically, the
energy dashboard is located in a place
where all persons who do business there
are able to see it — a lobby or common
entry area are favorite places. In
addition, the energy dashboard can
describe energy features and other
characteristics of the building and show
graphically how each system is
functioning. If solar or wind energy is
generated on-site, the energy dashboard
can describe the process. LEED points
or Energy Star achievement levels can
also be displayed.
Building AlarmsAlarms are something building
control systems do well, but typically
the alarm information is not delivered
to the right person or in the right way.
Many times the control system
generates such a high number of
alarms that the alarm notification
system gets ignored. Alarms in a
building are only good if they are
customized to the building operator’s
needs.
Is it appropriate to send an alarm if
the CO2 level in a space rises above
1500 ppm? Does a valid alarm
condition occur when a space
temperature rises above 80 degrees?
Every building is different and its
operators respond in different ways.
Alarms need to be prioritized and can
easily be configured to be a more
effective tool. Today’s control systems
can now easily generate emails and text
messages to notify operators about
certain conditions. Energy alarms can
also be created to send a message when
a pump or air handler which is
supposed to shut down at night
continues to run for a 24-hour period.
30 I UTAH FACILITIES JANUARY 2011
Control Systems Maximize Efficiencyof Building OperationsBy D. Kevin Dyreng
SummaryControl systems in buildings are
powerful. Their capabilities are often
underutilized. Many of the tools they
have and, in most cases, that we already
own, can be used to our advantage. We
just have to know what the tools are
and how we can use them effectively.
Kevin Dyreng,
energy services
manager for Utah
Yamas Controls, has
been in the controls
industry for more
than 30 years. He is a
certif ied energy
manager and has served on the board of
the Utah Chapter of Energy Engineers.
He specializes in commissioning
buildings and energy management
through controls optimization. UF
UTAH FACILITIES JANUARY 2011 I 31
building controls
32 I UTAH FACILITIES JANUARY 2011
UTAH FACILITIES JANUARY 2011 I 33
MissionBOMA Utah is the standard of excellence,providing best in class industry leading practices,strong education, local advocacy and friendlynetworking unity.
Contact InfoTo learn more about BOMA Utah or to join,please visit our website atwww.BOMAUtah.orgor contact us [email protected],801-710-2590PO Box 13697Ogden, Utah 84412
Inside2010 Sponsors
The Outstanding Buildingof the Year Information
Emergency Preparedness
BOMA Utah Information,Officers, Board of Directors
and Committee Chairs
Calendar of Events
EER Information
Thursday, January 13, 2011Monthly LuncheonMark Bouchard, senior managing director,CB Richard Ellis, Salt Lake City
January 23-26, 2011BOMA International Winter Business ConferenceLake Buena Vista, Fla. (Walt Disney World)
February 10, 2011Monthly LuncheonThe Outstanding Building of the Year (TOBY) Awards
Calendar
34 I UTAH FACILITIES JANUARY 2011
The Outstanding Building of the Year Award: It Could Be Yours! Be a member of Utah’s real estate elite by entering your property in The Outstanding Building of the Year (TOBY) competition.Be a local, regional and international winner and get recognized!
Who Should EnterBuilding owners and managers who want to showcase their property andmanagement teams should enter their building(s) into this year’s competition.Go to www.BOMA.org to view BOMA International’s TOBY requirements andfor general information about categories, eligibility, portfolio specifications,submissions registration information and content and judging and buildinginspection forms.To facilitate owners and managers in preparing their properties for thecompetition this year, BOMA has implemented a number of significant changesto the judging process.The TOBY committee and BOMA Utah strongly encourage your team to preparea portfolio in conjunction with preparing your property. All entries must completethe local application form (available now) and register their building online withBOMA International.Guidance provided by the TOBY Committee and BOMA has proven to beextremely valuable to our Utah entrants and will continue in 2010/11. To assistyou in your winning efforts, we will be happy to work with you and your buildingteam throughout the process.Become part of the elite group of owners and managers in Utahwho have won the TOBY, proving their dedicationand commitment to commercial realestate and having the vision tocontinue to improve the standards towhich we all strive to achieve.
About TOBY AwardsThe prestigious TOBY Award is bestowed asthe highest mark of excellence foroutstanding building management and is themost all-inclusive program in the commercialreal estate industry. All facets of a building’soperations are thoroughly evaluated duringthe judging process by a panel comprised ofindustry professionals.The evaluation criteria for the TOBY Awardsinclude tenant relations programs,community involvement, emergencyevacuation procedures and continuingeducation for building personnel. Winners ofthe local competition advance to regionaland international competitions.
QuestionsIf you have questions about the TOBYs,contact Renee Schmid, TOBY chair,at [email protected] 801.506.5005or TOBY Vice Chair Dave Shepardat [email protected] 801.237.8955.
The Outstanding Building of theYear (TOBY) Sponsors
Visionary Sponsor - Varsity Contractors, Inc.Silver Sponsor - ISS Facility Services, Inc.
Bronze SponsorsCB Richard EllisRBM Services, Inc.Securitas Security Services USAUtah Disaster Kleenup
Supporting SponsorsOtis ElevatorQwest CommunicationsRoderick EnterprisesUtah Facilities
April Luncheon SponsorAmerican Shredding, Inc.
2010 BOMA/Securitas Golf Tournament
Tournament Sponsor - Securitas SecurityServices USA
Breakfast Sponsor - Varsity Contractors, Inc.Welcome Gift Sponsor - Spectra FlooringLunch Sponsor - ComcastRaffle Sponsor - RBM Services, Inc.Golf Cart Sponsor - Commercial Service SolutionsGold Sponsor - G4S Secure SolutionsSilver Sponsor - Centimark CorporationDrink Sponsor - The Lawn ButlerPutting Green - Utah Disaster Kleenup
Contest Hole Sponsors5Star Family of ServicesAmerican Shredding, Inc.Big-D ConstructionMechanical Service & SystemsSchindler Elevator Corporation
Hole SponsorsAmerican Building MaintenanceBELFOR Property RestorationBell Janitorial Supply, Inc.Carrier BSS/Otis Elevator Co.CB Richard EllisCCI MechanicalDaw Construction GroupDouble Take Commercial
Carpet CleaningDynamond Building MaintenanceJacketta SweepingRiverPark Management
& DevelopmentRoto Aire Filter Sales & ServicesSecuritas Security Services USAThyssenKrupp ElevatorWestern Waterproofing
Company, Inc.
Generosity of Sponsors have made 2010 a Great Year for BOMA UtahAs 2010 draws to an end, we must thank and recognize our sponsors for their continued support throughout the year. It isbecause of this generosity BOMA Utah is able to continue its growth and provide quality programs and events.
2011 TOBY Sponsors to date:
UTAH FACILITIES JANUARY 2011 I 35
More reasons why BOMA Utah is the Standard of ExcellenceThis has been a whirlwind year for BOMA Utah. Membership renewal rate was 90 percent this year. We held our TOBYAwards in February with six local buildings competing. March was the tour of the 222 S. Main Street building and ourannual vendor only brunch. April was a member social with a scavenger hunt and lots of fun times. In May, our VendorExpo consisted of more vendors and booths than ever before. In August, we held the 2010 BOMA/Securitas GolfTournament. It was the biggest and best in BOMA Utah’s history, raising $5,200 for the Road Home and our first BOMAHelping Hands work day. Partnering with the Road Home to donate upwards of $47,000 in materials and volunteer timewas a definite highlight of the year.
We can’t forget the unsung heroes: our members serving on various boards and committees with BOMA International;the Pacific Southwest Region and Utah’s Private Sector Homeland Security Steering Committee and Council. We’veexpanded our online presence to Facebook, LinkedIn and Twitter. We’ve worked hard to make BOMA Utah known in thereal estate community through the Utah Facilities Magazine, a quarterly publication soon to be bi-monthly.
Don’t forget our first medical office buildings seminar or the Kearns Building winning the Regional TOBY Award andadvancing to the international competition. We have a new website. And our leadership and committees put forthcountless hours to ensure BOMA Utah remains the “Standard of Excellence.”
With everything that BOMA has accomplished this year, it’s time to pass the torch on to new leadership. We are pleasedto announce the 2011 BOMA Utah officers, board of directors and committee chairs:
President: Jim Derrick, Miller Management CompanyPresident-Elect: Todd Mabey, Zions Securities CorporationVice President: Lorrie Ostlind, Hines GS Properties, Inc.Secretary/Treasurer: Casey Killian, Varsity ContractorsPast President: Dave Jones, City Creek Reserve, Inc.
Board of Directors:Scott S. Bennion, Commerce Real Estate SolutionsJon H. Carlson, Lincoln Harris CSG Gary L. Coker, CB Richard EllisEric S. Pauly, CentiMark CorporationDavid D. Penrod, Zions Bancorporation - Zions BankRussell Shinrock, Securitas Security Services USA, Inc.
Committee Chairs:Community ServicesChair: Ali Williams, SimplexGrinnellVice Chair: Brett Parry, Harris Companies
Disaster Preparedness/Business ContinuityChair: Eric Fairbanks, Utah Disaster Kleenup
EducationChair: Rick Rice, Zions Securities Corporation
GolfChair: Jerry Pace, CCI MechanicalVice Chair: Terrell Sparks, RiverPark Management& Development
Local AdvocacyChair: Stephen West, Cottonwood Management ServicesVice Chair: Paul Porter, Bell Janitorial Supply, LC
Medical Office BuildingsChair: Jon H. Carlson, Lincoln Harris CSGVice Chair: Chris R. Day, The Boyer Company
MembershipChair: Eric S. Pauly, CentiMark Corporation
ProgramsChair: Casey Killian, Varsity Contractors
Public RelationsChair: Travis Barrington, Utah Facilities MagazineVice Chair: Kelly Lux, Utah Facilities Magazine
TOBY (The Outstanding Building of the Year)Chair: Renee Schmid, Roderick EnterprisesVice Chair: Dave Shepard, Qwest
Becoming involved in a committee is one of the best ways to enhance your BOMA experience. Committee participationprovides countless networking and leadership development opportunities. Participating on a committee is also arewarding way to gain a better understanding of the association.
To sign up for a committee or learn more about one, please contact the BOMA Utah office at 801.710.2590 or emailShelli at [email protected]. You may also visit our website for a complete listing of each committee.
36 I UTAH FACILITIES JANUARY 201136 I UTAH BUILDINGS SUMMER 2010
Connect with BOMA Utah – Join us on Facebook, Linkedin and Twitter
BOMA Utah leading the charge in Emergency Preparedness
Various agencies from across Salt Lake County know the importance of BOMA Utah and the critical role our members canplay during an emergency. The Salt Lake County Emergency Office Center (EOC), Salt Lake City Emergency Management andthe Utah Department of Public Safety, Homeland Security Division, along with BOMA Utah, have begun implementing apublic-private emergency preparedness notification plan and strategy for protecting occupants.
While it’s rational to assume that Salt Lake City and surrounding areas are not a key terrorist target, Utah is vulnerable to otherthreats, including severe snowstorms, tornadoes, dangerous floods, energy black-outs, fires and earthquakes. To betterprepare for such disasters, the Utah ShakeOut Earthquake Exercise is scheduled for April 2012. The Utah ShakeOut isdesigned to enhance the capabilities of Salt Lake County, local jurisdictions and Salt Lake Valley residents to effectively respondto and recover from a catastrophic earthquake occurring along the Wasatch Front.
BOMA Utah, along with city, state and federal agencies are creating a plan to boost communications and strategic thinkingin the midst of an emergency. In doing so, the state is at the forefront of creating an integrated disaster plan. The private-public cooperation has been undertaken to develop strategies for shelter, evacuation and early warning.
Our goal is to strengthen communication between our members who own properties and local emergency response officials. It isalso important that we know and communicate well with our neighbors, especially in coordinating emergency plans and procedures.
One communication capability that exists within the Salt Lake Valley is the Public Information Emergency Response (PIER)System. The PIER System is an all-in-one, web-based solution for crisis communications management, mass notification, publicand media relations and business continuity. Our members arestrongly encouraged to register on PIER, under the BOMA Utahgroup, at www.utahemergencyinfo.com/go/mailinglist/2515/
Currently, BOMA Utah has representatives that sit on the PrivateSector Homeland Security Coordinating Council as well as the Lt.Governor’s Private Sector Homeland Security SteeringCommittee. We have been asked to join the newly created SaltLake Valley Steering Committee and recently participated in theSalt Lake Valley Venue Evacuation workshop and FEMA RegionVIII ShakeOut tabletop exercise.
As part of our continued effort, we will begin to update our onlinemember database and will ask every member to provide detailedinformation regarding buildings owned/managed by members,key tenants, 365-24/7 contact information for every facility,vendor services provided, key personnel, etc. This is critical andnecessary information from our members if we are to succeed.
Property/facility managers, if you are not currently a member ofBOMA, you will be missing out on some of the most importantplanning and disaster preparedness programs in the industry, asno other real estate organization in the state of Utah has beenasked to participate on any level.
Think it through for a moment. Your building is being evacuated.Your neighbor’s building is evacuating. Are youroccupants/tenants all congregating to the same area? How areyou accounting for your employees and tenants? Do you have amemorandum of understanding with various buildings? How willyou be notified of an after-hours emergency? Do you have a 72-hour kit at your office and what does it consist of? Do you shelter-in-place or evacuate? And who makes that call?
It’s not if a disaster will occur and impact businesses, it’s a matterof when. Fire drills and other preparedness drills seeminconsequential when deadlines are pending. However, buildinga dynamic communications plan, knowing where to go and whatto do, is a serious matter in the event of an emergency andBOMA Utah will be your source for that information.
Measuring building operating performance has neverbeen easier. The online EER allows you to track incomeand expense performance of assets in hundreds ofmarkets with just a few quick mouse clicks. Customsearches allow you to examine specific types of assets,such as MOBs, corporate facilities, all electric buildingsand building characteristics, including building age,height and tenant types.
Share Data. Improve Performance. AchieveExcellence. That’s what EER is all about.
UTAH FACILITIES JANUARY 2011 I 37
The cost of construction materials
in Utah have stabilized while
contractors in other states
nationwide are feeling the squeeze of
rising prices for key construction
materials.
Nationally, prices for materials used
in construction jumped by 0.6 percent
in October and 4.8 percent over the
past 12 months, while the price for
finished buildings remained flat,
according to an analysis of the October
Producer Price Index figures released
by the Associated General Contractors
of America. So not only is the
construction industry facing declining
demands and dramatic layoffs, but now
the industry must pay more for key
materials while charging the same for
finished products, according to the
AGC of Utah. These factors will likely
cause many builders to struggle like
they have never struggled before, which
could add to the already staggering
17.3 percent unemployment rate for
the sector nationally.
In Utah, the cost of most
construction materials have flat-lined,
said Glenn Beckstead, chief cost
estimator for MHTN Architects.
Labor is flat.The cost of construction is
flat. Oil has stabilized. Only copper and
steel have gone up slightly, he said.
Scott Parson, CEO of Staker Parson,
said the cost of concrete and asphalt has
declined slightly as the demand for
these materials has dropped, creating an
over-supply of the products.
“There’s intense competition for
available construction materials because
residential, commercial and trans-
portation construction opportunities
are down,” Parson said. “And when that
happens, pricing will decline.”
Concrete prices remained
unchanged nationally from the previous
month and are down from a year ago.
Prices for asphalt paving mixtures and
blocks dropped 0.5 percent in October
but were still 4.8 percent higher than
last year. Across the nation, lumber and
plywood prices declined 0.9 percent
since September but rose 6.7 percent
during the past 12 months.
The price of diesel fuel is up 7.2
percent since September and 20
percent since October 2009. Steel mill
products have increased in price by 1.4
percent since September and 12
percent over the past 12 months.
Nationally, contractors will likely
feel the squeeze of rising materials
prices, the AGC predicted. In Utah,
Parson suggested that those who are
looking to build and who have the
resources should build now while the
cost of materials is low.
Now is an excellent time to build a
project since building owners will get a
lot for their money. Beckstead would
agree, saying that most projects are
coming in with 25 to 35 percent lower
costs than two years ago.
“If you have the money to build
right now, it is a great market,”
Beckstead said.
Construction costs in Utah will
likely remain flat through 2011 but
could increase as the rest of the country
sees rising prices, Beckstead predicted.
Optimists are forecasting a 1 to 3
percent inflation rate, which would
mean things are looking better
economically, he said.
“We hope it happens. But it won’t be
until March before we have a better
understanding of what the trends are,”
Beckstead said.
Rich Thorn is the
president and CEO of
Associated General
Contractors of Utah, a
position he has held since
1982. Rich can be
reached at 801.363.2753. The AGC of
Utah is the state’s oldest and largest non-
residential construction trade association
representing more than 500 members
who perform the majority of all non-
residential construction in the state. UF
38 I UTAH FACILITIES JANUARY 2011
When the H1N1 flu virus
started to spread across theUnited States, Zions Bank
already had the policies and proceduresin place to minimize the impact of apotential influenza pandemic,according to Brian Garrett, senior vicepresident and director of businesscontinuity for Zions Bank. Handsanitizer was placed throughout theapproximately 150 branches of ZionsBank. Employees were reminded ofgood health practices, to wash theirhands with soap and water, to covertheir mouths when sneezing orcoughing and to stay at home if theywere sick. Zions made sure tocommunicate with its employeesregarding the outbreak, informingthem of any special precautions thatneeded to be taken.
A pandemic such as H1N1 (Swineflu) could result in lost business revenueand high employee absentee rates,according to “Pandemic Influenza: AreYou Prepared,” a resource availablethrough BOMA International. Multi-tenant buildings are especiallysusceptible to influenza outbreaks,making it imperative for building
owners to implement containmentmeasures that will limit the spread ofthe disease.
Communicating with building
tenants and employees is essential in
preparing for and preventing a flu
outbreak in a commercial building, said
Theron Jeppson, a health educator for
communicable diseases at the Utah
Department of Health. Building owners
should take the initiative to share
educational information on preventing
the spread of germs, posting reminders
in common areas, break rooms and
bathrooms. Much like the procedure
followed at Zions Bank, hand sanitizer
stations should be placed in several
locations throughout a building,
especially near doors and bathrooms.
“People don’t have to do a whole lot
to keep from getting sick and to stop
the spread of germs,” Jeppson said.
“Many things can be done behind the
scenes by building owners to help
prevent the spread of disease.”
Maintaining a clean building isessential to preventing an outbreak of avirus, Jeppson said. Janitorial staffshould focus on keeping hand railings,
door knobs, desks and countertopssanitized. Employers should createpolicies encouraging employees to stay
Building Owners take Precautionsto Prepare for Influenza PandemicBy Kelly Lux
Preparing fora Pandemic
• Develop a plan with buildingmanagement before a pandemicoccurs.
• Appoint a representative tocoordinate the plan with buildingmanagement.
• Make sure plans and policies areunderstood by management,tenants and employees.
• Keep an open line ofcommunication betweenmanagement, tenants andemployees before and during apandemic.
• Increase health measures inyour building by coordinatingwith the janitorial staff/vendor.
• Encourage tenants andemployees to practice sanitarypersonal hygiene.
at home if they are sick, he said.Building owners should develop a planfor safe and healthy business practicesin case an outbreak does occur.
Working with human resources,facility management, security andexecutive management, Garrett saidZions Bank was able to develop abusiness continuity and emergencypreparedness plan addressing influenzapandemics. The bank identifiedemployees who could work fromhome, offices that could operate on asplit shift to reduce the number ofpeople working in high density workspaces and other points of failure in theworkplace. A plan was also put in placeto minimize the number of customerswho enter the building during times ofoutbreaks by utilizing the drive-thrufor most of the bank’s business.
Additionally, a system was createdto monitor the sick time being used byemployees within each Zions branch.This way, Garrett said, measures couldbe taken in the affected buildings tostop the spread of the virus within theindividual branches as well as theoverall company.
Communication will be the key toensuring policies and procedures arefollowed during a pandemic, Garrettsaid. Zions has memos andnotifications which can be easilymodified and sent out to employees
and customers as needed. Garrett alsokeeps a comprehensive list of contactinformation for employees, suppliersand vendors in his office and his car foreasy accessibility during an emergency.
“Getting ahold of people is goingto be the way you are going to be ableto get things done,” Garrett said.“You can live or die by yourcommunications.” UF
UTAH FACILITIES JANUARY 2011 I 39
public health
W e’ve all seen them hanging
from the side of a buildingand thought to ourselves,
“Man, I would never do that. Thoseguys must be crazy.”
Well, to be honest, some of themare, but most are not. The fact is, theprofession of washing windows onhigh rise buildings is actually very safewhen all of the standards andregulations are followed properly. Ofcourse, it still takes a tremendousamount of courage to climb over theside of a building and into aboatswain’s chair or to power that stagedown when there is nothing separatingyou from the ground other than a thinaluminum floor.
So how do these folks do it? Whatmakes them secure enough to make acognitive decision to walk off of aperfectly good rooftop and into thinair, where, for the next hour or so, theywill be suspended from lines as thin asyour thumb, all the while cleaning theglass of your office or condo building?
The answer is, or should be, safety.Safety is the most important factor
when any suspended maintenancework is being performed. Who isresponsible for this safety, and whatdoes working safely really mean?
The first question is being asked allacross the United States every day withrespect to window cleaning,particularly window cleaning donefrom a boatswain’s chair. Up until now,there was no clear definitive rule withrespect to boatswain’s chair work underFederal OSHA. Federal OSHA doesaddress cleaning windows using a
powered platform. While some ofthose rules can be applied to chairwork, there are so many areas ofuncertainty that Federal OSHA hasmade proposed changes to Sub Part D– Walking Working Surfaces wherethey include some rules with respect tothis common form of window cleaning.
The new document and the existingANSI Standards clarify that it is theresponsibility of the building owner toprovide anchorages for these windowcleaning professionals to attach their
40 I UTAH FACILITIES JANUARY 2011
Building Owners Responsible for Safetyof Window CleanersBy Brent LaPorte and Kynan Wynne
suspension and safety lines. This isimportant when the workers areutilizing boatswain’s chairs becausemore often than not, they are riggingdirectly to the rooftop anchors for boththe suspension and safety lines. Therules and regulations both state thatthe suspension (the line supporting theworker) and safety lines (used in theevent the suspension line fails) shouldbe attached to separate andindependent anchorages.
The standard form of anchorage isa rooftop anchor attached to thebuilding’s structure that has beenideally installed during construction.We do know, however, that mostbuilding’s do not have thesepermanent rooftop anchors. Thus, thewindow washing professionals arerequired to make do with whatstructure is available on the rooftop.We cannot expect a window washingcontractor to obtain permission to drillthrough the roofing and down into thestructure and attach a rooftop anchoras, quite simply, they are not qualifiedto perform this type of work.Therefore, it is incumbent upon theowner of the building to ensurerooftop anchors are available forworkers to attach to prior tocommencing their work.
The next burning question,assuming we have rooftop anchors orsome other form of structure, is howare these workers to attach safely?
Many buildings, maybe even yours,have some form of window washingsystem installed. Unfortunately, moreoften than not, they are not incompliance with today’s rigidstandards and proposed regulations.We often see derelict davit bases at anunprotected roof edge. These davitbases were originally designed to beused for suspended stages. However, asyou know, most window cleaningoperations are performed using aboatswain’s chair. So, how do thewindow washers work safely if thereare no independent rooftop anchorsavailable? The workers do what theymust to ensure they can complete thework as safely as possible. This doesnot mean they complete the work in
compliance with all the codes andstandards. It means they do what theymust, which, at times, really is crazy.They will attach to vent stacks, stairrailings or cinder blocks piled on theroof, none of which are designed totake the applied loads of a fall.
Further, if these davit bases areexisting at the roof edge, often thewindow washers will attach a tag linebetween the davit bases and attachboth the suspension and safety lines tothis line. The problem is the tag linehas not been engineered, and in theevent of failure of this line, bothsuspension and safety lines areattached to the same “anchorage.” Thefailure of one line leads to acatastrophic failure of this un-engineered system, resulting in seriousinjury or death of the worker.
Now, realizing this is a lot ofinformation to take in, I expect youhave a lot of questions about the codesand standards. What is required? How
do I know? Etc. The test is simple.Take a walk out onto your rooftop andask yourself, “If I had to, would I attachmy entire life to that anchorage?” Ifthere is any doubt in your mind at all,contact a rooftop anchor designprofessional and have your buildingassessed for compliance and safety.
Once you have the buildingassessed and certified and whensomeone asks you if those windowcleaners are crazy, you can confidentlyanswer, “Not as crazy as you think.”
Kynan Wynne has 22 years in thewindow cleaning industry, seven yearsin the fall protection industry, and is aformer president of the InternationalWindow Cleaning Association. Wynne iscurrently the vice president of RooftopAnchor, Inc. Brent LaPorte has 21 yearsof experience in the fall protectionindustry and is currently RooftopAnchor’s national sales consultant. Theycan be reached at 801.839.2900. UF
UTAH FACILITIES JANUARY 2011 I 41
fall protection
These days, the word cubicle has
become synonymous with prisoncell. You’ve seen the photos and
movies that depict a large office spacewith tall gray panels as far as the eye cansee. We can all agree that no one wantsto work in a space like that.Furthermore, with distractions such asFacebook, YouTube and the 2 p.m.cubicle nap, excessive privacy isn’talways a good thing.
Well then,what are the alternatives? Ifyou’re looking for a new office space orrevamping an existing one, there are a lotof creative ways to make the most of yoursquare footage while maintaining privacy.
Don’t Be Such a SquareFirst, get rid of the idea of a 6x6
cubicle with a little doorway. When youbegin to reconfigure your open areas,consider keeping some of that openness.Today’s panel systems can make use offiling and other storage units as divisionsbetween workstations. Instead of panelwalls that completely surround theworker’s space, use a combination ofshort panels and other dividers to givedivision of space and only as muchprivacy as is needed. Adjacentworkstations can be separated by a shortpanel or translucent screen. You’d besurprised. Employees in these open
workstations adapt to theirsurroundings, lowering their voicesaccordingly. For workers that spend a lotof time on the phone, higher panel wallscan be used sparingly while maintainingthe benefits of a spacious floor plan.
In addition to rethinking the overallfootprint of a workstation, there arenewer schools of thought concerning theactual desk or work surface. The L-shaped wraparound work surface wasdesigned for a bulky CRT monitor inthe corner, but today’s flatscreenmonitors require less space. Often, asingle rectangular or wedge-shaped worksurface is all that is necessary, leaving
42 I UTAH FACILITIES JANUARY 2011
Think Outside the Cube in an Office RedesignBy Sean Murphy
more space for storage that can keepbooks and files off of the desk.There area lot of options here. A reputable officefurniture dealer can show you the ropes.
Less is MoreToo often, what’s new is also what’s
expensive. In the case of rethinking thecubicle, this is not necessarily the case.Fewer bulky walls and less raw materialare better for your wallet and better forthe environment. New quality officefurnishings are usually at least 80percent recyclable, and use fewerresources to manufacture. You canactually fit more people in your spacewhile reaching “green” goals and savingmuch-needed capital.
There are other savings, too. Lowerpanel walls allow for more natural lightto find its way into the inner reaches ofyour space, reducing the need forexcessive overhead lighting. Someworkstation dividers leave open spaceunder the desk, improving air circulationand cutting material cost. You can alsoget rid of those under-desk filingpedestals and opt for a single storagetower with several types of filing andshelf space. Another benefit of today’spanel systems is that storage space canbe added later on an as-needed basis.
Spaces that Work Twice as HardWalls are coming down. More and
more companies are opting for moreopen workstations in lieu of largeenclosed offices. One of the benefits ofa large enclosed office is that the
employee can collaborate privately with
coworkers, clients and vendors. That
dialogue is essential to making your
office work, so small informal meeting
places are a necessity in your new open
space plan. Instead of having three-
person meetings in your boardroom,
create a few small quiet spaces in your
office where employees can sit down
for 15-minute collaborations. Instead
of a small conference room with high-
back leather chairs, consider breaking
up the cubicle farm with a café table
and stools or a small cluster of firm-
sitting lounge chairs. These spaces are
multifunctional and encourage idea
sharing. What’s more, a short walk to
an impromptu meeting area will lessen
fatigue and improve focus when
employees return to their desk.
You’re only as strong as your weakest
link. Don’t let an uninspired office
interior hinder your potential. A
contemporary office environment will
attract higher-caliber tenants. With a
little searching you can find someone to
buy your used cubicles (some
companies buy used panels to refurbish
and resell). You can also sell or donate
your old furniture to a start-up
company or charity. So tear down those
walls and create an efficient space for
your tenants to flourish!
Sean Murphy is a space planner with
ROSI Office Furniture in Salt Lake City.
He can be reached at [email protected]. UF
UTAH FACILITIES JANUARY 2011 I 43
space planning
Communication Keyto Juggling People,Cleaning PrioritiesDuring the HolidaysBy Jill Rasmussen
F rom pre-planned detail cleaning to unexpected
disasters, property managers can struggle to find time
to enjoy the holiday season. Tenant staffing levels
become low during the year-end holiday break, making it the
perfect time to perform detail cleaning without interrupting
business.
Prioritizing RequestsHigh traffic and busy schedules during the holiday season
make it difficult for property managers to address complaints
and foresee issues that might arise. Property managers often
have to juggle different personalities among tenants and
cleaning priorities in their buildings. Managing a building is
one thing, but it takes an entirely different skill set to manage
people.
Michael Jordan, facility manager for Marriott
International, manages several buildings with more than 400
employees. At year-end, he receives many cleaning requests
concurrently, making it difficult to please everyone. Jordan
said he has learned to prioritize requests and communicate
his responsibilities with Marriott employees, helping them to
understand his time frame in processing their demands.
“I try to resolve a problem with conversation,” Jordan said.
Property managers who are faced with conflicting
priorities and too many cleaning requests at one time can
explain that they understand the problem, have a solution and
can commit to completing the project within a reasonable
time frame.
“I’ve learned to treat people as my customer,” Jordan said.
“Everyone has a vested interest in different things. I have to
make them feel important or give them a good reason why
their request is not important at that particular time.”
44 I UTAH FACILITIES JANUARY 2011
Detail Cleaning PlanImplementing a detail cleaning
plan to prevent complaints is a great
start to a new year. Working with a
well-managed janitorial company can
help ease many year-end burdens.
Building a good relationship with your
janitorial company allows you, as a
property manager, to rely on the
janitorial company to manage detail
cleaning projects.
“It’s nice to know that I can rely on
our janitorial company to carry out the
terms of the contract,” Jordan said. “It’s
important to check references to make
sure the vendor you hire is going to do
what they say.”
Vendors that don’t follow through
with the terms of the contract don’t last
long.The dirt speaks for itself. If people
see dust, they assume they are breathing
dirt in the air and working in a
unhealthy building. Employees tend to
notice visible dust on lights, air ducts,
base boards and in their work areas.
“It’s all about perception,”Jordan said.
“If employees see a vendor performing
detail cleaning, then they feel like the
company is investing in them.”
Detail cleaning can boost morale,
increase appreciation and decrease
turnover if it is witnessed by employees,
Jordan said. When a business takes
action to improve the work
environment, people feel valued. People
feel more comfortable when they know
their work environment is clean and
sanitized, especially during flu season.
Marriott focuses on sanitizing
restrooms and eating areas to help
employees feel comfortable. Detail
cleaning is scheduled twice a year to
clean air ducts and glass, for high
dusting and vacuuming, and for
complete sanitizing of restrooms and
eating areas.
Cleanliness is best communicated to
tenants and employees through action.
Temporarily relocating people into
different work areas for large carpet
cleaning projects communicates that the
property manager cares about its tenants
and their workspace. If a project is
scheduled after-hours or on a weekend,
it’s important to notify tenants or
employees before the cleaning.
Vendor Communication Open communication with vendors
is essential for a good working relation-
ship. Building a good relationship with
vendors can decrease the bottom line
because “they are more willing to do
things they would not normally do,”
Jordan said. For example, Marriott
worked directly with its vendor to
implement a recycling program at no
extra cost.
Communicate with your vendors so
they are aware of their responsibilities.
Vendors should know you expect them
to plan ahead, foresee problems and
communicate daily.
“Our vendors inform me when
there are security issues like doors that
won’t lock or strange people lurking in
the parking lot,” Jordan said. “They
have even helped us prevent disasters
when they told us they smelled smoke
and found a water leak.”
When it comes to juggling people
and priorities, property managers can
benefit from taking time to find a
sharp janitorial company to rely on.
Jill Rasmussen and
her husband, Roger
Rasmussen, are
co-owners of All Pro
Cleaning, a janitorial
building services,
water damage and
restoration services, carpet and
upholstery cleaning, tile and grout
cleaning and air duct cleaning located in
Sandy, Utah. Contact Jill at
801.330.8585. UF
UTAH FACILITIES JANUARY 2011 I 45
janitorial
Every year property managers,
property owners and
businesses with parking lots or
sidewalks have to go through an
exercise most dread: soliciting pricing
from snow contractors. This exercise
often feels like just that — an exercise.
Most purchasers of snow and ice
management services believe anyone
can do that kind of work. It’s easy. And
besides, aren’t these fellows just
individuals who can’t find real jobs?
Being in the snow and ice
management business requires a
substantial capital investment in
equipment, materials and labor. If the
company you hire does all their work
with their own forces and equipment, it
is likely they are not a large entity and
are limited in their experience. It is not
good business for a snow contractor to
own all the iron associated with
providing exemplary service. Leasing
equipment is the norm all over North
America as opposed to investing capital
in equipment which may, or may not,
be utilized year-round.
Good companies understand their
costs and are focused on working hard
to lower their cost, especially in light of
the current economic times. And yet,
some purchasers of this necessary
service still try to insist the contractor
own all the equipment.This pushes the
contractor’s costs higher and higher,
resulting in increased costs to the
property manager.
Another area of concern for snow
and ice management is insurance
coverage. Too often contractors are not
savvy in this important area, resulting
in under-insured or inadequately
insured businesses. Yes, every purchaser
of this service demands a certificate of
insurance with some specific limits of
coverage. And, unfortunately, some
contractors supply certificates that have
been doctored for purposes of saving
money. Never allow the contractor to
supply you with this important
document. Always insist the certificate
46 I UTAH FACILITIES JANUARY 2011
Well-Run Snow Management ContractorsMake Better PartnersBy John Allin
come from the insurance broker or
agent. Even then, one is not out of line
by making a quick phone call to the
contractor’s agent to confirm all the
data is correct and accurate.
Contractors who supply snow and
ice management services should be
versed in the technology available to
them to properly protect the
property owners and managers they
service. In today’s advanced
technological age, snow contractors
can allow their customers access to
real-time data to ascertain when
their property was serviced, what
services were provided, and (in some
cases) what charges have been
incurred performing these services.
Make sure your contractor knows
the physiology of how salt works. In
fact, 500 pounds of rock salt per acre is
adequate. Studies show as little as 100
pounds per acre will do the job. It is
the rare snow contractor who invests
more than $65,000 in a single piece of
equipment that can distribute rock salt
at low distribution rates. Snow
contractors normally utilize slide-in or
under-tailgate spreaders, which can be
calibrated not lower than 300 pounds
per acre. Talk to prospective
contractors about their knowledge of
distribution rates, how salt works, how
long it takes to react when applied.
One important thing to note: If your
parking lot is still white the day after a
storm, it is likely due to over
application of rock salt, and is
definitely NOT because the contractor
was trying to make you happy.
There is a science to everything.The
same holds true with snow and ice
management contractors. A well-run
company making a viable profit makes
for a better partner in your overall risk
management. Let’s face it, if someone
slips and falls on your property, nobody
wins (except maybe the lawyers). And it
is incumbent upon the entity in charge
of the site to ensure that the site is safe.
Most property owners and managers
cannot correctly do the work
themselves. They want to pass the risk
on to the snow contractor. However,
realistic expectations are required so the
contractor can do the work, ensuring
those who visit your sites are safe.
John Allin is a full-time consultant for
Innovative Property Maintenance in
Utah. His former company, Snow
Management Group, did all of the snow
and ice management for the 2002 Winter
Olympic Games held in Salt Lake City.
He can be reached at 814.452.3919 or at
UTAH FACILITIES JANUARY 2011 I 47
snow and ice management
A s a building owner or property
manager, two primary busi-
ness goals are to maximize net
operating income and provide tenants
with a comfortable, well-functioning
building. In recent years, the U.S.
Green Building Council’s LEED for
Existing Buildings Operations &
Maintenance (LEED EBO&M)
rating system has been used
successfully on hundreds of buildings
to help meet these business goals.
LEED EBO&M provides building
owners, property managers and
operators with guidance on how to
incorporate green building operational
practices, offers standardized methods
to rate building performance and acts
as a third party evaluation platform to
recognize achievements. The rewards
for completing this process include
reduced operating expenses, and a
green differentiator to maintain and
attract existing and prospective tenants.
The rating system is fairly simple in
its layout. Any building seeking
certification must meet both basic
prerequisite requirements and accrue
points from a variety of
optional credit strategies. Basic
requirements include: verifying
minimum water and ventilation system
performance thresholds, conducting a
baseline energy analysis of the
buildings systems to identify cost-
savings opportunities and establishing
building operational guidelines to
encourage sustainable purchasing,
waste management and cleaning
practices. Additional credit strategies
could focus on: exterior site features
and maintenance practices, water and
energy using systems performance,
material purchased for building
operations and tenants, waste and
recycling performance or indoor
environmental quality improvements.
The cafeteria style rating system allows
project teams to customize their
certification program based on building
ownership requirements, budget and
building infrastructure attributes.
Evaluation criteria are different for
every project, usually balancing
operational cost savings, marketing
impact and tenant satisfaction. In the
commercial real estate market, most
teams focus on LEED strategies with a
good simple payback that
yields a quantifiable return on
investment. For instance, it
may sound like common
sense to optimize when air
conditioning and lighting turn on and
off each day in different areas of the
building, but these quick payback
opportunities and years of operational
cost savings often remain untapped.
Many building improvements yield
simple project cost paybacks of less
than two years and thousands of dollars
of annual savings. On one LEED
project, scheduling changes like these
required approximately $13,000 of
controls contractor programming
assistance but yielded an estimated
$104,000 of annual operating savings.
There are also strategies that create
financial payback while simultaneously
improving tenant conditions, such as
addressing issues with HVAC system
economizer cycles. When working
properly, these cycles should optimize
outside air use for climate control and
minimize use of the system’s mechanical
compressors. But these economizers
often operate incorrectly, using excessive
energy and creating poor indoor air
quality. Correcting this helps your
bottom line and provides a positive,
tangible story to share in releasing
negotiations and in conversations with
potential tenants.
Even though
the benefits are
clear, you’ll still
need to be aware
Should a LEED EBOM CertificationFigure Into Your Next Fiscal Year?By Eric Baxter
48 I UTAH FACILITIES JANUARY 2011
UTAH FACILITIES JANUARY 2011 I 49
LEEDof and justify the costs of a LEED
certification program. Basic costs
incurred on all projects will include
registering the project and paying for
the independent third party review of
your certification submission. Other
costs could include outside consulting
assistance, investments in equipment
infrastructure and small changes to
procurement practices. Many of your
service subcontractors (window
washing, landscaping, pest manage-
ment, cleaning, etc.) are willing to
move to greener operational practices
for little or no cost premium to keep
your business.
Buildings with more than 20,000
square feet typically find a good
balance of costs-to-savings potential,
and an assessment process will solidify
what strategies make the most sense.
Smaller buildings can still find savings
and improved occupant experiences
with the same strategies larger
buildings use, but certification costs
may not make sense for them. On
many projects a $50,000-$100,000
working budget range is a good
placeholder to start planning your
project before you assess for energy
saving opportunities in your building
systems.
Overall project costs range from as
little as $0.10 per square foot to $1 per
square foot. Though most projects
begin with a focus on cost savings,
many building owners discover equal
value in quick payback measures and in
operating and maintaining their
facilities to a higher level of
performance — a great benefit for
their tenants, marketing , occupancy
rates, the environment and, yes, their
bottom line.
Eric Baxter is the existing buildings group
director at Brightworks Sustainability
Advisors. He can be reached at
50 I UTAH FACILITIES JANUARY 2011
Many who have successfully
negotiated a reduction of
their loan obligations have
been caught by surprise when they
receive a 1099 showing ordinary income
equal to the debt reduction. This is
generally known as cancellation of
indebtedness (COD) income and is
explicitly identified in the definition of
“gross income” in Section 61(a)(12) of
the Internal Revenue Code. Borrowers
need to understand the tax consequences
of each of the proposed options as part of
the decision-making process.
While a detailed treatment of COD
income is beyond the scope of this
article, an overview of some of the key
concepts and provisions may prove
helpful. Borrowing money from a
lender does not result in taxable income
because the receipt of the money is
offset by the obligation to repay the
loan. However, if the repayment is for
less than the amount owing, the
borrower obtains an economic benefit.
As is common in tax matters, the
Internal Revenue Code sets forth a
number of exceptions to the
recognition of COD income.
Two of the most frequently used
exceptions are a discharge of debt when
the taxpayer is insolvent or is discharged
as part of a Chapter 11 bankruptcy and
a discharge involving indebtedness on
the taxpayer’s personal residence. While
insolvency would normally sound
promising, the determination of
insolvency is made at the taxpayer level.
Accordingly, for any entity taxed as a
partnership (such as most LLCs), the
determination takes place at the owner
level rather than the entity level. The
owners would have to be insolvent to
take advantage of that exception.
Additionally, the exceptions do not
offer a “free lunch.” The borrower pays
the price with a reduction in basis or
other relevant tax attributes.
Finally, Congress has provided
additional but temporary relief by
allowing the taxpayer to elect to
recognize COD income over a five-
year period. To qualify, there must be a
“reacquisition of an applicable debt
instrument.” The term “reacquisition”
includes complete forgiveness of the
debt or any of the following: a purchase
for cash or other property, an exchange
of one debt instrument for another, an
exchange of debt for stock or
partnership interests, or a contribution
of debt to the capital of a company.
Property owners will need to
understand the practical impact of
these tax considerations in order to
fully assess the desirability of their
workout options and to avoid surprise
COD income at a time when they may
be least able to pay. Consultation with
tax professionals is strongly advised.
Kyle Jones is an
attorney with the law
firm of Fabian &
Clendenin and is a
shareholder in Fabian’s
Business Organization,
Tax and Transactions
practice group. He can
be reached at 801.531.8900 or
Know the Tax Consequencesof a Commercial Loan WorkoutBy Kyle C. Jones
legal
UTAH FACILITIES JANUARY 2011 I 51
Utah FacilitiesP.O. Box 970281Orem, UT 84097-0281