Chapter Meeting July 9, 2014

1. Five things every FM should know about the Value of Asset Evaluations/Condition Assessments Chapter Meeting July 9, 2014

2. Agenda Panel Introductions • Are there different kinds of Asset Evaluations (or Condition Assessments?) • What is included in the assessment? • What is the deliverable (and what should I ask for to be sure I get what I need?) • What are specific items that are hidden trouble for a building? • Costs, costs, costs! Other Questions

3. Introductions • Jolie Lucas, CFM, AICP, LEED AP • IFMA Chapter Member/Board Member • Certified Facility Manager • Certified Planner • Leadership in Energy and Environmental Design Accredited Professional • AECOM Planning Project Manager

4. Introductions • John Van Whervin, Associate AIA • AECOM Arch. Project Mgr. • Studio Lead, Facilities Conditions Assessments, Orange • Currently Project Lead for Los Angeles County Assessments (over 800 structures) • Former Facilities Director for Los Angeles Superior Court

5. Introductions • Mike Braund, PE, SE, Assoc. DBIA • Board member of Structural Engineers Association of San Diego (SEAOSD) • Chair of SEAOSD Existing Buildings Committee • State Chair 2012/2013 • National Standards Committee for Seismic Evaluation and Retrofit of Existing Buildings

6. Introductions • Bob Craig, Associate AIA • IFMA member • Electrical Inspector/Building Inspector (ICC) • EIFS Inspector (AWCI) • Certified Air Barrier Auditor • Registered Roof Observer • Construction Document Technician

7. Asset Evaluation. . . Or Condition Assessment? Asset Evaluation High level/Holistic Functional Assists in big picture decisions Typically important in management of larger portfolios/multiple departments/campuses Condition Assessment Specific Detailed Assists in developing capital improvement plan Universal to all facilities owner-managers

8. Asset Evaluation. . . Or Condition Assessment? Condition Assessment Global General Condition Identify Global Issues/Preventive Maintenance Condition Assessment Detailed Lifecycle Costs Specific System Analysis Condition Assessment Maintenance/Deficiency Deferred Maintenance Capital Improvement Plans Customized Populate existing database Candidate for Renovation or Demolition

9. What’s included in an evaluation/assessment? Depends upon Building Type and Client Needs

10. Asset Evaluation. . . Or Condition Assessment? The Key to Managing Risk is Knowledge: What are my hazards? What are my risks? What are my options? What are my plans?

11. What is the deliverable? Asset Evaluation: • Descriptive data • Photos • Floor plans

12. What is the deliverable?

13. What is the deliverable? Condition Assessment: • Qualitative description of state of building and its components, with costs for: • replacement of building and/or systems today and some point in future • Assists in preparing Capital Improvement Plans • Replacement of deficient systems today and some point in the future • Assists in preparing Deferred Maintenance Plans

14. What is the deliverable? Condition Assessment: • Descriptive data • Photos • Costs

15. What is the deliverable?

16. What is the deliverable? Specific Assessment (Roofing): • Scaled roof plan with notations and/or photos of special features or typical deficiencies • Previously known data (components, manufacturer, installation contractor, leak history, repairs, etc.) • Newly gathered data

17. What is the deliverable? Specific Assessment (Roofing): Attention: XXXXXXXXX Property: XXXXXXXXXXX XXXXXXXXXXX Dear XXXXXXXX, On XXXXXXXXX the roof of the above referenced building was inspected by XX Professional Roofing Services, Inc. This roof condition assessment report contains the following: •Description of the roof system and components. •Notes on any known historical roof problems. •Identification of any deficiency items and repair recommendations. •Identification of current or ongoing maintenance items. •Identification of preventative maintenance items. •Projected life span of the roof system. •Text and pictures to illustrate this roof assessment report. This is a comprehensive report, which addresses all of the key elements of the roof system. If we may be of any further service, please feel free to call. Sincerely, XXXX PM

18. What is the deliverable? Roofing Example: • PART 1      BACKGROUND INFORMATION         • PART 2      SPECIFIC NOTES AND DEFICIENCIES OF THE ROOF • PART 3      CONDITION REPORT • PART 4      RECOMMENDATIONS

19. What is the deliverable? Risk Strategies: Credit: FEMA

20. What is the deliverable? Seismic Survey:

21. What is the deliverable? Seismic Survey:

22. Poor Seismic Systems • Corrosion of critical structural elements • Hardscape deterioration • Lack of mechanical maintenance • “There’s no sense in replacing the carpet if the roof is leaking!” Hidden Troubles

23. DETERIORATION: Are there unsafe conditions? Is there deterioration present that could lead to bigger issues? Are there changes to my maintenance plan needed to limit future issues? Hidden Troubles

24. Hidden Troubles

25. Hidden Troubles Do I understand how my facility will perform in the event of an earthquake? The Building Code: “The purpose of the earthquake provisions herein is primarily to safeguard against major structural failures and loss of life, not to limit damage or maintain function.”

26. Operational Immediate Occupancy Typical Code Building Life Safe Collapse Prevention Unsafe Hidden Troubles Building Performance Levels

27. Hidden Troubles Seismic Risk A function of seismic hazard andbuilding performance Not if, when…

28. Costs, Costs, Costs!

29. Costs, Costs, Costs! Assessment Lifecycle, Maintenance, Replacement, and Risk Next Steps: Mitigate, Repair, Replace

30. Costs, Costs, Costs! Lifecycle Costs

31. Costs, Costs, Costs! Plant Replacement Value Deficiencies Equipment

32. Costs, Costs, Costs!

33. Costs, Costs, Costs!

34. Costs, Costs, Costs! Financial Seismic Loss Potential

35. Costs, Costs, Costs! Structural Studies: • Condition Assessments - $ • Preliminary Seismic Evaluations/ PML’s – $ • Post-Earthquake Planning - $$ • Building Inventory/ Portfolio Analysis - $$ • Seismic Program (after inventory) - $$ • Detailed Seismic Evaluations/ Retrofits - $$$+

36. Take Aways • Yes there are different kinds of Asset Evaluations and Condition Assessments. • To be of value, be sure the assessment includes what you need. • Think about how you will utilize the data and then ask for what you need. • Hidden troubles include deterioration, energy loss, and potential systems failure. • Doing nothing is NOT free.

37. How often should an assessment be done?

38. I can do this myself (can’t I?)

39. Other Questions?

40. Mike Braund, PE, SE, Assoc. DBIA mbraund@degenkolb.com (619) 814-7008 Robert Craig, Associate AIA, RRO, EIFS, ABAA Auditor bob@lohse2.com (858) 737-9141 Jolie Lucas, CFM, AICP, LEED AP jolie.lucas@aecom.com (760) 702-5005 John Van Whervin, Associate AIA john.vanwhervin@aecom.com (714) 567-2589

41. Other Questions Mitigating Seismic Risks: Develop standards for your facilities Assess the risks of all facilities Understand the consequences Address the problems systematically Create and adopt a post-disaster plan

42. Other Questions Original Building Moderate EQ Loss (21days) = $95M Major EQ Loss (70days) = $320M Basic Upgrade Upgrade Cost ($90/sf) = $20M Moderate EQ Loss (7 days) = $35M Major EQ Loss (30 days) = $131M Cost ROI at Major = 9.45 IO Upgrade Upgrade Cost ($130/sf) = $30M Moderate EQ Loss (0 days) = $0.4M Major EQ Loss (5 days) = $22M Cost ROI at Major = 9.93