Utah Facilities September 2011

2 I UTAH FACILITIES SEPTEMBER 2011

4 I UTAH BUILDINGS FALL 2010

SEPTEMBER 2011

DEPARTMENTS

17 19 20 22 24 30

Advocacy Full disclosure of commercial real estate sales pending legislation

Commercial Cleaning Set your standards high

Fire Alarm Using cellular communications

Labor Law Building owners responsible for legality of workers

Energy Efficiency Reap the benefits of an energy efficient building

Flooring Restore existing carpet instead of replacing

Tenant Relations

28

Seismic Upgrades

14

FEATURES

8 12

Healthcare Facilities HCI adapts existing space for new technology

Property Manager Jamie Galileo, Larry H. Miller Sports & Entertainment

On the cover: Huntsman Cancer Institute. Photo by Dana Sohm.

UTAH FACILITIES SEPTEMBER 2011 I 5

PUBLISHER’S LETTER “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way...”

-Charles Dickens, A Tale of Two Cities The opening line from “A Tale of Two Cites” seems to echo the sentiments of many in Utah’s construction and commercial real estate community. Most folks seem to agree that the economy continues to be in bad shape. There is a lack of financing, decreased leasing activity and large unemployment numbers, all of which are hurting construction. Some economists have said the recession is over but the commercial real estate industry has many more months, and probably years, before it recovers.

On the other hand, Utah is faring better than most of the nation, and there is a variety of large, non-residential projects under construction. James Wood, director of the David Eccles School of Business at the University of Utah said, “Non-residential construction is holding up better than we thought. There’s a lot of building going on – I can look out my window and see $400 million in new construction projects.” Wood shares his insights in our first ever annual magazine, Building Utah, included in this issue of Utah Facilities.

Building Utah features numerous project articles and interviews representing a cross section of Utah’s struggling, yet resilient, commercial construction industry from office to heavy highway. These projects and others in the works are encouraging signs that Utah is heading in the right direction. According to the Economic Development Corporation of Utah, the state is experiencing a record number of site visits and company relocations. So while it may not yet be the best of times, it appears that it’s no longer the worst of times.

And finally, we are pleased to announce the launch of our new website, www.UtahFacilities.com. There you will find hundreds of articles, photos and videos to help you make informed decisions regarding construction, modernization and management of your buildings. The site also features the only comprehensive Buyer’s Guide for building owners and managers. Like the magazine, the new website is sure to become a “must read” for local real estate professionals.

CONTACT Publisher Travis Barrington travis@jengomedia.com

Managing Editor Kelly Lux kelly@jengomedia.com

Advertising Brian Andersen brian@jengomedia.com

Editorial Assistant Kristen Hutchings kristen@jengomedia.com

Art Director Doug Conboy

Contributing Photographer Dana Sohm

Contributing Writers Thomas Carlson Justin Farnsworth Dan Kilgore Richard Kramer Ron Moore Stephen M. West

Utah Facilities Publisher Utah Facilities

Utah Facilities is a proud partner of:

Copyright 2011 Utah Facilities Magazine. Utah Facilities is a Trademark owned by Jengo Media.

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PO Box 970281 Orem, Utah 84097 Office: 801.796.5503 Fax: 801.407.1602 UtahFacilities.com The publisher is not responsible for the accuracy of the articles in Utah Facilities.

The information contained within has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumes liability for loss or damage as a result of reliance on this material. Appropriate professional advice should be sought before making decisions.

UTAH FACILITIES SEPTEMBER 2011 I 7

A Complex Pro Huntsman Cancer Institute Adapts Existing Space for New Equipment

By Kelly Lux

I

mproving the quality and effectiveness of care provided to patients with cancer is the main philosophy behind the further development of the Huntsman Cancer Institute, part of the University of Utah healthcare system. The entire hospital, including its 30,000 square-foot remodel and 180,000 square-foot expansion under the direction of Okland Construction, is geared around patients and their families with the primary goal being comfort and satisfaction.

“We are seeing that throughout the healthcare industry in major facilities, patients and families are coming first,” said Jon Erdmann, the principal in charge with Architectural Nexus. The Huntsman Cancer Institute was no exception. The $75 million expansion

will include 50 more inpatient beds, expanded clinics for exam and treatment rooms and a new location for the hospital’s infusion center. The addition of new, cutting-edge technology will also add to the patient comfort in the hospital’s expansion and remodel.

Specifically, the installation at the Huntsman Cancer Institute of the $5 million IMRISneuro, a 1.5 Tesla magnetic resonance scanner, as part of a fully-integrated imaging suite was done with the patients’ care and comfort in mind, said Erdmann. The $1 million imaging suite, which totals approximately 1,175 square feet in the remodeled portion of the Huntsman Cancer Institute, allows for timely, high resolution MR images before,

8 I UTAH FACILITIES SEPTEMBER 2011

during and after an operation without moving the patient from the surgical table. The suite is one of only approximately 30 in the United States and the only one in the Intermountain West, said Ben Tanner, COO of the Huntsman Cancer Institute.

“No other system offers the same degree of safety for both the patient and the surgical environment,” according to an IMRIS press release.

“IMRISneuro does not require the patient to be transported for scanning, so the optimum position for neurosurgery is never compromised.

Clinical workflow and surgical access to the patient is not impacted.”

Architectural Nexus of Salt Lake City was tasked with designing the imaging suite in the existing

ocedure

Photo by Dana Sohm

healthcare facility. The suite includes an operating theatre, a diagnostic facility and a control room. The MR scanner moves from one room to the other, providing state-of-the-art, multi-functional capabilities to the hospital’s neuroscience facility, according to IMRIS. “As the design team, we worked with IMRIS to design the space and get it constructed to their requirements,” said Doug Banks, the project architect with Architectural Nexus.

Located on the third floor of the Huntsman Cancer Institute, the space, which was made up of two rooms, was completely gutted down to the structural framework, said Banks. New 24-inch deep, steel beams had to be

built in the structure in order to support the transfer of the 13,000 pound magnet. The walls, floor and ceiling of the suite were lined with copper to create a radio frequency shield.

Three rooms were built into the space. The diagnostic room where the MRI machine will be most of the time is 365 square feet. The operation room, which is connected to the diagnostic room by retractable doors, is 650 square feet. The control room, which was the most undersized of all of the rooms, is 160 square feet, said Banks.

“With an existing facility, you are constrained by the existing construction of the structure. The existing spaces limit the size or shape of the room. So that makes it

challenging,” Banks said. “With a new facility, you could plan for a layout that might accommodate the equipment better. In this project, we had limitations on all four sides of us.

Fortunately, we had a space that we could move into fairly easily.”

In addition to working with a finite space, a quench pipe had to be navigated through three floors of the hospital to create an emergency escape route for the helium that keeps the MRI unit cool. The mechanical contractor, A&B Mechanical, spent numerous hours tracing a route for the 12-inch, heavy steel pipe through three floors of mechanical systems, Banks said.

The decision to create the IMRIS

continued on page 10

UTAH FACILITIES SEPTEMBER 2011 I 9

continued from page 9 suite at the Huntsman Cancer Institute was driven by the hospital’s patient care model, said Banks.

However, in order for the hospital to get the maximum value out of the equipment, the doors of the suite will be closed most of the time, and the MRI unit will be used on patients who are not currently undergoing surgery.

Due to the cost and amount of use associated with the IMRIS, few hospitals will have the need or the means for an IMRIS suite, Banks said.

“Because of the cost of the equipment and expertise of the surgeon and mission of this particular facility, not every hospital would end up going this route,” Banks said. “The decision will be driven by the patient care model of the healthcare facility.”

Since the Huntsman Cancer Institute, one of the major cancer research centers in America, has a fairly large neurosurgery program, specializing in brain tumors, the IMRIS suite was more feasible for the hospital than it would be for other healthcare facilities in the region,

Photo courtesy Architectural Nexus

Tanner added.

“We are a research institution on the leading edge of implementing and developing new technology,” said Tanner. “We felt this new technology would be a great benefit to our brain tumor patients.”

The construction of the IMRIS suite was completed in July. Testing and training occurred during August.

Tanner said the suite will be open for operation in early September. The expansion and remodel is scheduled for completion in October. UF

Huntsman Cancer Institute Remodel and Addition Project Information Project Size: 175,000 square feet Budget: IIB - $84,000,000 Anticipated Completion: Scheduled Fall 2011 Project Team Architectural Nexus Principal-in-Charge/Principal Planner – Don Finlayson, AIA, ACHA Planner – Scott Larkin, AIA, ACHA Project Architect/Project Manager – Jon Erdmann, AIA Job Captain – Chris Broders Project Designer – Nathan Murray, AIA Interior Designer – Hilton Ripplinger, LEED AP Landscape Architect – Daniel Roberts, ASLA

Shortly after the Huntsman Cancer Hospital’s Phase IIA completion in 2004, a master plan and program were crafted for further growth of phase IIB. The program for Phase IIB developed a statistical base to create a balanced workload for the facility resulting in the compelling design of the current phase nestled further into the mountainside. This latest addition, due for

Reaveley Engineers Structural Engineer – Mike Buehner, S.E. Van Boerum and Frank Associates, Inc. Mechanical Engineer – Jeff Watkins, P.E. Spectrum Engineers Electrical Engineer – Jeffrey Richards, P.E. Contractor – Okland Construction

10 I UTAH FACILITIES SEPTEMBER 2011

Photos courtesy Okland Construction

completion in Fall 2011, brings the inpatient beds to 100 and includes a comprehensive women’s breast care clinic, outpatient clinic and expanded surgical and radiology suites.

Additionally, this phase provides a new 36 bed infusion suite with million dollar views of the Salt Lake Valley and Ochre Mountains.

UTAH FACILITIES SEPTEMBER 2011 I 11

Photo by Dana Sohm

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M

anaging EnergySolutions Arena in Salt Lake City may seem like a glamorous job – working closely with the Jazz and helping to facilitate high-profile concerts – but to Jamie Galileo, the vice president of Facilities Services with Larry H. Miller Sports and Entertainment, the job is more about the challenge of management and working behind the scenes.

“I think facility managers are just that: facilitators,” Galileo says. “They enjoy a challenge, don’t like the spotlight and enjoy serving others as part of a team. I love what I do and am fortunate enough to still be doing it.”

Galileo cares for EnergySolutions Arena, the Spring Mobile Ballpark and the Zions Bank Basketball Center and provides support services on an asneeded basis for other sports and entertainment facilities owned by Larry H. Miller Group of Companies. He was offered the job in Facilities Services by Doug Knudsen, his predecessor, while taking a tour of the then Delta Center. Prior to becoming maintenance manager for the Delta Center, Galileo had been working for America West Arena, now US Airways Center in Phoenix, in their engineering department. He had acquired that job through his work with a general contractor and electrical contractor in Arizona who were contracted to do

facilities management for the Airways Center. After completing some tenant improvements, Galileo was hired on by America West Arena. Thus began his career in facilities management in the sports industry.

The 750,000 square-foot EnergySolutions Arena is where Galileo focuses most of his attention on a dayto-day basis. He enjoys the challenges and the variety in managing the facility.

“The challenge, and part of the interest, is that no day is ever the same,” Galileo says. “Planning is critical, but flexibility is priority. For example, on 72-hours notice, we moved from a non-event weekend with arena football set to relocating a concert from another venue to EnergySolutions Arena. While these occurrences are the exception, smaller versions of this example are the norm, across multiple facilities on the same day and at the same time.”

Galileo also enjoys working with associates, patrons and vendors.

Depending on the season or the event, Galileo manages between 150 to 250 people. His philosophy on overseeing so many people in such a large venue: “Treat people with dignity and respect, work hard, have some fun, expect people to act like adults and hold them accountable.”

The Great Recession has played a key role in Galileo’s management of

EnergySolutions Arena. More than ever, Galileo and his staff are looking for ways to improve productivity and lower costs. Energy retrofits and designing around energy efficiency are high on his list of priorities, along with anything that impacts customer satisfaction, Galileo says.

“Given the economic conditions, we are doing what we can, when we can,” Galileo says.

Galileo is also doing what he can to stay up-to-date in the industry. The internet, he says, has completely changed the game, and he uses it to keep current on managing entertainment facilities. Galileo is also a member of the International Facility Management Association as well as the International Association of Venue Managers. These, he says, are great resources for keeping him up-to-date on technologies, regulations and trends in the industry.

“My future plans are to keep learning,” Galileo says. “You can never stop. Being a continuous learner not only keeps you current and employed, I believe it helps your overall morale and outlook on the future.”

As for the future of the facilities Galileo manages, “We will continue to improve our properties to keep them current, relevant, appealing, cost effective and profitable.” UF

UTAH FACILITIES SEPTEMBER 2011 I 13

Project Team Owner: Troy Gifford General Contractor: Badham Construction Architect: Marks Designs Structural and Civil Engineering: LEI Engineering Mechanical and Electrical Engineering: Royal Engineering Plumbing: Southwest Plumbing Fire Sprinkler: Quality Fire Protection, Inc. HVAC: Stewart’s Heating Electrical: Uintah Refrigeration and Electrical LLC

Seismic Upgrades to a Century-Old Building Renovation of Old Provo Craft Building Requires Significant Structural Upgrades Photos by Dana Sohm

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By Kelly Lux

T

he brick walls, the wood floors and railings and the vintage passenger and freight elevators will remain key elements in the renovated Provo Craft and Novelty Store building in Provo. The gutted and fully-restored building, however, will have a few new additions as well once crews have fully converted the building into an upscale restaurant and night club.

“You could turn around and build a brand new building. From start to finish, you know exactly what you are getting,” said Troy Gifford, owner of the historic building. “But with a building like this, you start tearing into it and you find things that have been left behind. You can’t build this.”

Once complete, the more than 100 year-old building on 300 West and Center Street in Provo will open as The Madison, a restaurant and night club, after being vacant for more than five years. The once four-story building has been converted into a two-story building with two mezzanines. One level will host the Center Street Bistro Restaurant and a full bar. The second floor will feature a cowboy bar complete with country western dancing.

The renovation of the building, transforming it from a retail building to a restaurant and club, required some substantial upgrades. Perhaps the most significant but unseen upgrade in the $2 million renovation were the seismic upgrades. Under the direction of LEI Engineering, the building was brought up to seismic code for close to $150,000, said Hank Thropp, The Madison project manager with Badham Construction, the general contractor on the project.

The seismic upgrades started with the front of the existing building, which was constructed with double-wythe unreinforced masonry. The street-facing side of the structure was open with only masonry pilasters between the windows, said Eric Murray, a staff engineer with LEI Engineering. Unreinforced masonry structures, such as the Roberts Craft building, have proven to perform poorly in seismic events, making the structural remodel a necessity, said Murray.

In an un-reinforced masonry building, the brick walls tend to separate from the floor and roof during an earthquake, likely causing the walls to collapse, Murray said. To address this concern, LEI designed new attachments between the existing walls and the roof and floor systems. Steel channels and/or steel angles were installed underneath joists and screwed into the joists. The steel angles were then attached to the walls with all thread anchor bolts that were drilled and epoxied into the walls.

“These measures should prevent wall separation and add stability to the structure during an earthquake,” said Murray.

A four-story, steel-braced frame near the front of the existing building was also designed by LEI. To keep the front of the building as open as possible, this portion of the structure needed to be laterally strengthened, Murray said. The new frame connects to the roof and floor systems and provides stiffness at the front portion of the structure. The steel frame will be independent of the existing masonry

walls and will bear on a new strip footing poured inside the perimeter of the existing building.

In installing the steel-braced frame, two spaces in the flooring at the front of the building were opened up and cement holdings were poured, preparing for the installation of the steel columns. These columns stretch from the crawl space to the roof above the fourth floor, improving the lateral movement of the building, said Thropp.

“We created a diaphragm so everything works together,” Thropp said. “Before, if the building had started to move, it would have collapsed like a house of cards. We had to make it so the ends of the building were all tied in together.”

Additionally, horizontal beams were reinforced with steel channels and angles. Two I-beams were built into the top-floor ceiling, replacing two loading-bearing posts and opening the floor up for dance space. Horizontal beams, which were originally placed loosely in pockets of the brick walls,

continued on page 16

UTAH FACILITIES SEPTEMBER 2011 I 15

continued from page 15 were secured and tied into the rest of the building.

Construction crews also had to install two new stairwells, necessary for egress purposes in the building, which has an occupancy limit of 2,100 people. Putting the stairs in the building was like trying to fit a ship in a bottle, Thropp said.

Gifford plans to maintain as much of the original character of the building as possible. The hardwood flooring that was removed will be repurposed. The plaster will be chipped away to expose the original brick of the building. The handrails will remain, although they must be updated to meet code. And the passenger and freight elevators will be fully-operational for guests.

“I want to show everything we can,” said Gifford. “I love old buildings, I just don’t like redoing them too much.”

From an owner’s perspective, renovating the Provo Craft Building has had many challenges, and building

Troy Gifford, owner of The Madison, oversees the extensive renovations of the Provo Craft Building. new would have been less stressful, said Gifford. However, the historical character of the building could never have been recreated, and Gifford thinks this aspect will make The Madison all the more successful.

“If I would have known what I know now, I wouldn’t have done the

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building,” said Gifford. “It is just a lot more work, especially with the steel and seismic upgrades. Every time you turn around a corner there is something else there. But they don’t build them like this anymore. Back then, they knew what they were doing.” UF

advocacy

Full Disclosure of Commercial Real Estate Sales Pending Legislation

By Stephen M. West

T

he Full Disclosure Bill would mean all individual commercial real estate sales will be reported to the State of Utah. This full disclosure will include all details related to the sale. The mandated sale reporting would be extensive, similar to a full HUD sale report. Fines and penalties will be issued for failure to report the information in accordance to the required format and deadline.

The system would be expensive to build and maintain. The legislation would require software development, new policies, procedures and training and new government staff to control and maintain the database and to enforce the new rule. The reporting would also prove to be costly for property owners. These additional costs would need to be paid by tax increase, likely to commercial property tax rates, or by a new tax, likely a sales tax on a real estate sale.

The commercial sale data will not be an effective tool for improving the fairness of assessments. The annual commercial property sales are too few

in number to develop a valid benchmark for the county and are only valid for the sold property.

Commercial properties in the same geographic area can be completely different, making the disclosure ineffective. Also, mass assessment systems and software for commercial property are designed and driven by property income information and not sales data.

The Full Disclosure legislation could damage Utah’s reputation for being a business-friendly state. The legislation requires more government rules, regulations and reporting and increased taxation. With the same law as neighboring states, Utah would have no strategic difference to attract real estate investments.

Rep. Gage Froerer indicated he had support to pass the Full Disclosure Bill. Real estate professionals negotiated to have the bill delayed for a year. This will give the real estate community time to develop a proposal to improve the fairness of commercial assessments.

BOMA and IREM could instead expand their databases, adding reporting for counties not along the Wasatch Front. Markets that are already in the database would increase, including properties in all segments of commercial real estate.

By using these databases, a new database will not need to be created, making it a more cost-effective solution and eliminating the need for an additional tax. In this case, meaningful population information would be provided without harming an individual property’s strategic information. The improved data will improve assessments overall. And Utah’s image as a business-friendly state will be protected, encouraging investment in commercial real estate.

Stephen M. West is senior property manager for Cottonwood Management Services. He is also the chair for BOMA Utah’s Advocacy Committee. He can be reached at 801.365.6217 or swest@cottonwoodpartners.com. UF

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commercial cleaning

Set Your Standards High Certified Cleaning Companies are Worth the Extra Cost

By Ron Moore

S

tandards. Every industry has them. It is what sets the bar at an appropriate height, helping to create a certain barrier to entry, weeding out those who aren’t serious about operating a “real” business.

The cleaning industry is particularly susceptible to newcomers.

Anyone with a mop bucket, an old pickup truck and his wife’s vacuum can open a janitorial company. There are, however, certain things building service contractors do to set themselves apart from the crowd. It’s called certification. It is something facilities managers should look for when trying to choose a provider that actually knows what they are doing.

Several good standards are out there. One of those is offered by ISSA. Everyone in the cleaning business is familiar with ISSA, the Worldwide Cleaning Industry Association. Not everyone, however, knows that ISSA has guided and administers a process to help cleaning organizations set up a management system that ensures quality, efficiency and overall customer satisfaction. It is called CIMS, the Cleaning Industry Management Standard.

Managing a successful cleaning company, be it a building service contractor or an in-house custodial/ cleaning department, requires hard work, dedication and, perhaps most importantly, a thorough understanding of the customer’s service requirements.

Whatever standard is used, it should be thought of as a blueprint to develop customer-centered, quality organizations.

Does it really matter? And why should I bother? Yes, and because in the long run you’ll be so glad you did. With the many cleaning companies out there, this is that advanced degree on the

resume that sets the candidate apart.

Hiring a certified organization means you have partnered with a cleaning company that takes their work seriously and has paid the price of painful change and continuous improvement.

Most standards and certifications demand dedication to quality and meeting customer requirements. They are based on management principles that are found in all successful organizations. They are not just for large companies with large budgets, but for companies of any size. Some standards require adherence to a particular process or product. Others don’t. Organizations should be allowed flexibility in choosing the most effective ways to meet their customer’s needs. Hire companies that have their management ducks in a row and who have refined their procedures and processes to create a system. Not many go in to McDonald’s for the fine dining. People do, however, go in there because they are familiar with the system and know the product will be consistent, regardless of where they are in the world.

Any cleaning industry standard should focus on some or all of the following elements: • Systems, including a written janitorial plan, that consistently deliver quality.

• Fulfillment and follow up to ensure the customer’s satisfaction. No news is NOT good news. A system for “inspecting what is expected” must be developed.

• Human resources, including recruiting, hiring and training of cleaning personnel. All janitorial companies draw from the same labor pool. Those that stand out have the best hiring and training practices. Even a mediocre employee can excel in an orderly, focused, systematized culture.

All of the above depend on one thing – leadership. If management is not committed, nothing will happen.

Choose the company with the strongest leaders. Management has to be very clear in its definition of what the standard is. If operating standards aren’t clear, people will search and test for a performance standard they think is acceptable.

Cleaning is a business. Most in the industry take great pride in what they do. Cleaning companies play a major role in maintaining the value of large and important assets. Building owners and managers may pay a little more for the services of a certified company, but in the long run, it is worth it. It is the best value. No one would go to a doctor who wasn’t certified, just because he had a stethoscope and was cheaper than a real doctor.

Certification of some kind provides third party verification that helps companies prove their claim that they are indeed better than anyone else and helps facility managers sort through the mess and find the best partner.

Ron Moore is president of RBM Building Services, Inc. He can be reached at 801.373.2424. UF

• Health and safety of worker and customer. Yes, you must pay attention to OSHA, EPA, MSDS Sheets, etc.

UTAH FACILITIES SEPTEMBER 2011 I 19

fire alarms

Cellular Communications for Fire Alarms Fire Alarm Systems Can Now Report to Cellular Lines

By Richard Kramer

T

he requirements for fire alarm signaling have been will defined by the National Fire Protection Association (NFPA) 72 National Fire Alarm Code. It defines the application, installation, location, performance, inspection, testing and maintenance of fire alarm systems, fire warning equipment and emergency warning equipment and their components, as well as the means for signal initiation, transmission, notification, annunciation and the levels of performance and reliability of the various types of fire alarm systems.

Until the 2010 revision to the NFPA 72, building owners needed to have at least one dedicated Plain Old Telephone System (POTS) line. And a second line was also required (either a non-dedicated phone line or cellular).

Many companies have two dedicated POTS lines, costing up to $100 each per month.

A number of businesses have either switched or are planning to switch over to VoIP phone systems. Those businesses who have switched have usually had to keep two POTS phone lines in order to meet the monitoring requirements of their fire alarm systems. Some businesses may not have even noticed that their fire panel is no longer reporting to their central monitoring station, as they did not know most VoIP systems won’t work with their fire alarm systems.

This revised code allows for cellular communicators to be the sole means of communications. Businesses are now able to save significant money each month. While there is an installation cost for the new equipment, it won’t take long for most businesses to realize these savings after paying for the equipment.

The original purpose of having two phone lines was to provide redundancy in case of a communications problem.

But at the time the older code was approved, phone lines came in from different directions. Currently, both phone lines normally come in from the same phone trunk line, so in reality there is no real redundancy.

Current POTS lines also only check in once a day. The new cellular technology lets the monitoring center know within five minutes of any failure of the communications path. The signals are sent using a GSM communicator specifically designed for UL commercial fire installations.

This provides better security for the fire alarm system monitoring.

The cellular communicator should be compatible with most fire panels as it uses contact ID format. Older fire alarm systems may require a panel upgrade, depending upon how the older panel communicates with the central monitoring station. Ask your fire alarm company about your fire alarm system and it’s compatibility with the new technology.

The Authority Having Jurisdiction (AHJ) or fire marshal should be made aware of the change of status if you decide to go with the new cellular.

This should be done by whoever services your fire alarm. But as this is new technology, many fire marshals have not seen it before. Once they go through the specification sheets and read the portion of the revised code, rarely is there a problem.

Many businesses are not aware that in addition to the NFPA 72 fire code, state law requires any business

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with a sprinkler system to be monitored. This is even for buildings that are not occupied.

State law also requires that fire alarm systems be inspected yearly. Fire alarm systems are really life safety systems. There are more things than buildings and equipment that are at risk from a fire. People’s lives can be in great danger, so it is imperative that a fire alarm system not only be monitored but inspected and maintained. The liability is too great not to do everything correctly.

Richard Kramer is the commercial sales manager for ADT Security Services in Utah. He can be reached at 801.799.5625 or rkramer@adt.com. UF

UTAH FACILITIES JULY 2011 I 21

Building Owners Can Be Held Responsible for Illegal Workers

By Dan Kilgore

O

ne of the challenges in the janitorial and cleaning industry is the blatant use of illegal labor. Many reputable janitorial contractors providing cleaning services to the commercial and industrial sector utilize precautionary measures to ensure the individuals in their employ have proper documentation to work and pay taxes in the United States. In other words, their employees are legal.

Unfortunately, many janitorial contractors do not take these precautionary measures. Those who do not abide by the labor laws create an uneven playing field, putting not only themselves at great risk but also the building owners.

The motive for not taking the necessary steps to make sure all their employees are legal is simply money.

A janitorial contractor who is using illegal labor might do a number of things to fraudulently reduce his costs and evade paying the required taxes and Worker’s Compensation. The illegal workers might receive a wage that is below the market and, in many cases, legal limit. The illegal workers might be paid in cash to avoid employer’s contribution to taxes such as FICA and federal and state unemployment insurance. A contractor might hire a person with a valid Social Security Number and then 1099 him each year (treating him as a sub-contractor),

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allowing him to piggyback in illegal workers. By paying cash or issuing a 1099 to an employee, the contractor is able to under report his Worker’s Compensation exposure. These and other practices enable the contractor to illegally reduce his cost of operation by up to 30 percent.

The practice of using illegal labor can be infectious. Many building owners and property managers hire these contractors who are using illegal labor because they are, knowingly or unknowingly, enticed by the low price offered to them to clean their buildings.

The cleaning industry is a highlycompetitive, low-margin, high-volume environment where companies are

labor law differentiated from the competition by the quality of their cleaning and the level of their customer service.There simply is not room for these large variations in price. When you see a 20 to 30 percent lower bid, it should automatically throw up a red flag.

Building owners or property managers should ask, “Is there a reason to care if your janitorial vendor is using illegal labor?” The answer is obviously, yes. If a contractor is identified as using illegal labor, the building owner will also be held responsible.

As this practice has continued to expand, jail time for the building owner is becoming increasingly more likely for egregious offenders. There is also a significant financial exposure. The IRS and other federal and state taxing entities can, and most likely will, file claims against the building owner for all the unpaid taxes, the discrepancy between what was paid and minimum wage and any unpaid overtime. All of these are compounded by fines, fees, interest and other punitive penalties.

Another large liability exposure to the building owner comes from the fact that most of these contractors using illegal labor are either under insured or carry no Worker’s Compensation policy at all. All medical facilities that provide care to a person injured at work that does not have a valid Social Security Number are required to report this to U.S. Immigration and Customs Enforcement (ICE).

The answer to this problem is simple but not easy. Building owners and property managers need to protect themselves by not being enticed by a low price to extend contracts to contractors who do not comply with the all state and federal labor laws. Require your janitorial contractor to regularly provide proof of legal work status for all those working in your building and a valid Worker’s Compensation policy. The promise of short-term savings is definitely not worth the risk of being caught on the wrong side of the law.

Dan Kilgore is the CEO of Simply Right, Inc. Contact him at dan@simplyright.com.

UF

UTAH FACILITIES SEPTEMBER 2011 I 23

energy efficiency

Reap the Benefits of an Energy Efficient Building

E

nergy efficient or green buildings are beneficial for the environment. Individual owners, tenants or business proprietors should be aware of hidden benefits of energy efficient buildings when selecting a space or when considering an energy efficiency upgrade.

Tenant Benefits For a tenant/business owner who is leasing a space in a green building, the benefits extend beyond utility bill savings and a reduction in carbon footprint, possibly including a more comfortable environment, improved workplace productivity and a healthier atmosphere. Employees tend to take fewer sick days, experience increased job satisfaction, decreased stress and better office relationships.

Studies have verified that workplaces in green buildings enhance productivity.

In a survey of employees who moved from conventional office buildings to LEED-Certified buildings, survey participants reported that the average number of absent work-hours per month due to allergies and asthma

dropped from 1.12 to .49. The average number of work-hours survey participants reported being affected by allergies and asthma declined from 16.28 to 6.32, or a 60 percent decrease.

Because a growing number of people prefer to work for and shop at businesses that make smart environmental decisions, tenants/business owners may also experience increased sales and customer loyalty when housed in sustainable green buildings.

Owner Benefits For a building owner, the benefits of an energy efficient facility include the lower utility costs and reduction in carbon footprint, which can result in higher occupancy levels and higher rents. This is important to landlords who are still looking to decrease vacancy rates resulting from the recent economic downturn.

An industry report from commercial services real estate firm CB Richard Ellis noted that there are tangible business benefits to going green, including higher occupancy and larger rent premiums, which both result

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in positive return on investment. The report showed that green buildings boast higher occupancy levels and higher rents than the general market.

In addition, the tenants, occupants and patrons of green buildings are most satisfied with features such as daylight and window views, access to public transportation, healthy indoor air quality and energy conserving lighting controls, according to the report.

Energy Efficient Improvements Building owners can make their rental spaces more environmentally friendly by choosing materials such as low-VOC finishes and energy-efficient systems and appliances when upgrading the space. The overall work environment for the employee is primarily improved by providing employees with greater access to daylight and areas conducive to employee collaboration, maintaining consistent temperatures and providing employees with greater climate control and maintaining consistent airflow and lighting levels and overall cleaner, fresher air.

continued on page 26

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energy efficiency continued from page 24 Many of these improvements are linked to the heating and cooling system and the use of energy-efficient equipment. One thing is clear, with the apparent benefits for both the owner and the tenant; an energy efficient building makes good business sense, all across the spectrum.

To learn more about energy efficiency, visit www.eere.energy.gov and www.energystar.gov. For more information about energy efficiency, technical assistance and how to take advantage of rebates for natural gas equipment, contact QuestarGas Company’s ThermWise program representatives at ThermWise.com or call 1.800.567.3460. Additional resources and incentives may be available for electric equipment by visiting rockymountainpower.net/wattsmart. UF

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Marketing to Office Tenants in a Down Economy

By Justin Farnsworth

‘D

o more with less� is a phrase heard more and more frequently. In the commercial real estate industry, with operating budgets becoming tighter over the last few years, property managers have an even greater role in marketing their buildings to prospective tenants. Here are a few tips that are low cost, but have a high impact in making the building as marketable as possible.

First Impressions are Critical When a prospective tenant walks through the door, they need to be greeted by staff members who are friendly, well dressed and accommodating. Make sure uniforms are clean and pressed and that reception and/or security desks are neat and clean. Have refreshments in vacant spaces or the management office.

During the building tour, be sure to take the prospective tenant to the management office for a five- to 10minute meeting with the property manager. Property managers take pride in the services they provide their existing tenants and can be an extremely valuable resource for highlighting all of the excellent amenities and services that can be expected as a tenant in the building.

Property managers can also help alleviate any potential concerns by explaining what to expect during the day-to-day operations.

past the deficiencies when envisioning their future space. Have janitorial staff vacuum and dust all vacant spaces each week. Check for and replace stained/damaged ceiling tiles regularly.

Any sign of a water leak can be a major concern for a potential tenant. Replace any light bulbs or light fixtures that are not working. Keep all blinds turned at 45 degrees. This will allow tenants to see the view, but will minimize energy consumption from solar load. If time permits, open all of the blinds to allow the maximum amount of natural light in the space.

Keep Vacant Spaces Clean Vacant spaces should always be kept clean and never used for storage. If a space is dirty, cluttered or in disrepair, a tenant can have a difficult time seeing

Building Cleanliness Should be Top Priority When the floors are sparkling and windows are free of fingerprints, it shows the management team is diligent

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tenant relations in maintaining the building. If a building is older, but clean, it can still show much better than a new building that is not maintained. Work with janitorial staff to ensure they are paying attention to the details and following the scope of work in the contract. Train management and engineering staff to pick up trash when they see it, and report any areas that need attention to the janitorial staff.

Keep Operating Expenses Low Without Cutting Services Prospective tenants like to see that a building is run efficiently with low costs.

However, their expectations for dedicated service will also be high. Maximizing every dollar is critical to stay competitive in the marketplace. Leverage existing personnel and experience as opposed to hiring outside vendors. Require that building engineers are trained to complete minor repairs to HVAC, electrical and other building systems.

Competitively bid service contracts every two to three years to ensure pricing is fair.

Compare expenses to other office buildings in the area using tools such as BOMA’s Experience Exchange Report.

These tools can provide invaluable data to analyze expense areas that are higher than the market.

Make Sustainability a High Priority Sustainability is becoming a higher priority with large corporate tenants and government entities. With some diligence, many buildings can qualify for Energy Star. This government program offers free tools to track utility usage and shows the building is committed to saving energy. Recycling is another way to show a commitment to the environment. Most major waste removal companies have single stream recycling available that will allow recyclables to be mixed together (plastic, cardboard, paper and aluminum). Take advantage of low- and no- cost energy-savings projects. Many low-cost projects (i.e. installing a variable frequency drive) can have payback periods of less than 18 months.

A recent study by the CBRE

Sustainability Group revealed that, on average, LEED buildings bring higher than average market rent. Obtaining LEED Certification is something all owners should consider as part of their long-term property plan.

Offer a Multitude of Building Amenities Telecommunications are the backbone of most modern companies.

Having a selection of providers will ease concerns for a potential relocation. If parking is tight at the building, secure off-site facilities within one to two blocks for overflow purposes. One of the most common complaints that tenants convey about a building is lack of parking.

Keep Tenant Improvement Package Offerings High This will convey to tenants that the owner is continually investing in the building and the tenant’s future success.

This will also prevent substandard materials and finishes from being used which could diminish the perceived and actual value of the building.

Overall, trends in the marketplace are pushing tenant incentive packages higher in an effort to increase demand for office space. Placing an emphasis on high-impact and low-cost marketing strategies will help build value without requiring building owners to forfeit as much revenue with free rent offerings.

Careful planning and strategic value engineering practices are critical to maximize the value of each dollar spent improving a space. While an unlimited budget is ideal, it is not a reality for most building owners, especially in today’s economy. With diligent planning, property managers can have a dramatic impact on attracting new tenants to a building. As a result, building value can be increased significantly without considerable cost to the owner.

Justin Farnsworth is a real estate manager at CB Richard Ellis, Salt Lake City. Editorial review by Stephanie Marthakis, research and marketing manager at CB Richard Ellis, Salt Lake City. Visit www.cbre.com/slc for more information. UF UTAH FACILITIES SEPTEMBER 2011 I 29

flooring

Restore Existing Carpet Instead of Replacing

By Thomas Carlson

I

n this difficult economy, facilities professionals are looking for alternatives that will sustain a high level of appearance while meeting ever shrinking building maintenance budgets. When carpet begins to look warn and replacement is necessary, consider restoring the existing carpet.

If the existing carpet is not badly damaged and simply looks ugly, it might be a better choice to restore instead of replace. Utilizing the correct cleaning solutions and procedures to restore the carpet not only increases the longevity but also minimizes the costly disruption of replacement, improves indoor air quality and saves landfills from the carpet and trash that would be disposed of in a full replacement.

Soiled, matted carpet looks flat and reflects light, causing dull colors. Soil is a combination of dirt and binders (oil, soap residue, sugar, fat, grease, etc).

These binders hold the dirt to the fibers and cause a build up that slowly sticks the fibers together and helps contribute to a matted, ugly appearance. When carpet is heavily

matted or bound with soil, periodic maintenance cleaning does not penetrate the fibers enough to keep it looking good. High traffic or frequent spill areas begin to look flat and lifeless. The standard cleaning process does not produce the desired results, and over time, the carpet looks so bad many may feel it needs to be replaced.

Improper general maintenance that spreads soil around produces an even appearance but it contributes to the build up in the carpet. Restoration which can be a three- to five-step process penetrates and removes the dirt out of the carpet while also lifting the pile of the face yarns. This promotes diffusion of light in the fibers resulting in richer, brighter colors and more consistent texture.

When correct cleaning chemicals and proper procedures are utilized, the results have a significant impact on the visual appearance of the facility while saving the high cost of replacement.

Carpet replacement is approximately $3.33 to $5 per square foot for a quality commercial broadloom or carpet tile product. Do the math: 5,000

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square feet at $4.25 per foot is $21,250. Restorative carpet cleaning is priced around 20 to 25 cents per square foot. The math on that is a little easier on the bottom line: 5,000 square feet at 23 cents per foot is $1,150.

A proper, periodic maintenance program combined with restoration when the carpet appearance declines can make a significant impact on budgets by extending the carpet life and holding off the major expense and disruption of replacement. Correct maintenance planning in a building to incorporate multiple cleaning methods and frequencies that meet soil and traffic levels in different areas can extend the need for carpet replacement for many years.

Thomas E. Carlson, president of Commercial Service Solutions, has nearly three decades of experience in all aspects of the carpet industry. He can be reached at 877.277.2532. UF

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Utah Facilities P.O. Box 970281 Orem, UT 84097-0281 CHANGE SERVICE REQUESTED

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