March 2013 - BOMA Greater Minneapolis Newsletter

March 2013

At a Crossroads

Crucial Regional Transit Decisions Ahead The Twin Cities region has fallen far behind in transit development in relation to comparable cities, even as young people are demonstrating increased preference for urban lifestyles with mass transit. This has ramifications for all of us, ranging from our own commute times, to the vigor of our regional economy, the quality of talent we can attract and retain for our companies, and the businesses we can attract and retain as tenants.

What are we going to do about it?

Our speakers will be Will Schroeer, Director, Infrastructure for Economic Development with the Minneapolis and St. Paul Regional Chambers of Commerce and Dan MacLaughlin, Executive Director of Commuter Connection and the Downtown Transportation Management Organization. Mr. Schroeer will tell us about the choices we must make and the price of inertia.

Mr. MacLaughlin will tell us about services specially designed for property managers to help tenants with their commuting options.

By Kevin Lewis, BOMA Executive Director On Friday, February 8, the Minneapolis City Council unanimously approved an ordinance to require commercial buildings to benchmark and disclose their annual energy consumption. The new law will apply to all commercial buildings over 50,000 square feet, and includes tracking of both energy and water consumption.

Thursday, March 21 7:45 am sign-in and breakfast buffet opens 8:15 - 9:15 am program WHERE: Golden Valley Country Club 7001 Golden Valley Rd in Golden Valley COST:

Minneapolis City Council Approves Mandatory Benchmarking and Disclosure Ordinance

Members:$42 ($37 if you register by noon on Friday, March 15) Nonmembers: $49. Same day registration: Members $45, Nonmembers: $55.

Register

online at www.bomampls.org or by sending an email to events@bomampls. org. Cancellations must be received 24 hours in advance. Substitutions honored.

Generously sponsored by:

Minneapolis is now the seventh U.S. city and the first in the Midwest to pass a mandatory benchmarking and disclosure ordinance. The program will be phased in over the coming years and by 2016 will be applied to an estimated 470 privately owned buildings and about 160 public buildings.

BOMA has been lobbying against this ordinance since last spring, meeting on a number of occasions with Council Member Elizabeth Glidden and other City officials.

Continued on page 2.

This month, click on each of our advertisers’ ads to find the link to enter a drawing for a

$50 gift card.

Last month, Amy Remely won a $50 gift card for being one of our online readers.

Watch for a new drawing every month only in our online newsletter!

President’s Message 2 Birdsafe 3 BOMA Int’l Conference 3 Kilowatt Crackdown Awards 3

BOMA Int’l Winter Meeting 4-5 Welcome New Members 6 Legislative Update 6-7 BOMA Greater Minneapolis

Nuclear Plant Tour 8 TOBY Winners 9 January Meeting Re-cap 10 Lessons Learned 12 •

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President’s Message

By Dave Dabson

BOMA Greater Minneapolis www.bomampls.org 121 South 8th Street, Suite 610 Minneapolis, MN 55402-2825 Phone: 612-338-8627 Fax: 612-340-9744

BOMA Association It should be no surprise that BOMA Greater Minneapolis has been on the annual BOMA International Chair’s stump circuit the past three years with Joe Markling of CBRE the latest to visit and engage one of BOMA’s most successful local associations. Not only are we the 7th largest local association in the Federation, I can tell you with confidence after attending the latest Winter Business Meeting that our association is held in high regard for an active membership base, terrific staff leadership and results to be proud of. At our February Membership meeting Joe delivered a powerful message on the important role BOMA International plays in representing the interests of our industry and some key talking points on demonstrating the value of BOMA to those who may challenge participation and support.

Thank you Joe for attending our luncheon and Toby Awards!

is by promoting more member to member communication using BOMA’s network to address issues in common to “neighborhoods.”

How about a meeting of BOMA members impacted by the proposed Southwest light rail line? Those having a stake in the proposed I-494 expansion in the northwest suburbs may have a good reason to get together for breakfast and discuss how BOMA could help convey needs of property owners? BOMA’s network is all that is needed to gather and address these important issues.

Bring issues that are important to you, your property or your ownership to BOMA through a grassroots effort. Let BOMA Greater Minneapolis be the fertile soil that gives this effort a base from which to grow. The organization is Better by YOUR Association!

Lastly, congratulations to this year’s TOBY Award winners! Your dedication to your fellow property teammates, tenants and owners is admired by all and we wish you success in the Regional judging over the next few months. We hope to see you advance to the International competition with winners to be announced in San Diego this summer.

Joe’s 2012-2013 BOMA Chair term is focused on a theme of “Better by Association” which I fully endorse as my personal experience in being involved with BOMA throughout my career. At every level, be it by submarket, city or region and beyond, the connections that are fostered through BOMA’s network are powerful and productive. Our association has always excelled at communicating at a high level the priorities and issues we are working on for our members. Where we can improve

The BOMA Newsletter

Sheila Miller, Editor and Publisher Statements and opinions expressed herein do not necessarily represent the opinion of BOMA or its membership. Articles may be reprinted only by written authority of the editor.

DISCLAIMER: All advertisements are accepted and published by the publisher upon representation that the Agency and/or Advertiser is authorized to publish the entire contents and subject matter thereof. The Agency and/or Advertiser will indemnify and hold harmless the publishers, the employees and agents of the publisher from any loss or expense from claims or suits based upon contents of any advertisement including claims or suits for defamation, libel, violation of rights of privacy, plagiarism and copyright infringement.

Officers President: David R. Dabson, RPA, CCIM, CPM Piedmont Office Realty Trust, Inc. Vice President: Theodore J. Zwieg, FMA, RPA Brookfield Properties Corporation Secretary/Treasurer: Jon A. Kuskie, Zeller Realty Group Directors Elizabeth K. Anderson, RPA, Hines Brian J. Burg, RPA Cushman & Wakefield/NorthMarq Real Estate Services Susan J. Goldstein, Xcel Energy Michael A. Hagen, The 614 Company Tanya J. Hemphill, RPA, CCIM, CPM Investors Real Estate Trust Kimberly K. Ihle, RPA, CPM, CBRE Linne M. Lemke, Plantscape, Inc. David A. Marquis, Target Corporation

Mandatory Benchmarking continued from page 1.

Our position has been consistent as detailed in the October 2012 edition of the BOMA newsletter.

of Minneapolis stated several times that there is no intent to introduce any standardization of these ratings in the future.

On January 28 this year, BOMA President Dave Dabson, Government Affairs Committee Chair Jim Durda and Executive Director Kevin Lewis testified before the Regulatory, Energy & Environment Committee at a Public Hearing.

At the hearing, representatives from the City

Moving forward, BOMA will remain engaged with the City to offer input on how the rules will be developed and enforced, and to minimize the negative impact on our members. Watch for updates in future newsletters. t

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March 2013

BOMA Greater Minneapolis

Jeffrey C. Steinke, RPA, Ryan Companies U.S. Inc. J. Michael Thornton, RPA, Frauenshuh David K. Wright, FMA, RPA U. S. Bank Corporate Real Estate Kevin Lewis, Executive Director Printed on 100% recycled paper, 30% post-consumer recycled content.

Save Energy • Save Money • Save Birds

CALENDAR

Project BirdSafe March 15 - May 31

In 2007 BOMA’s Board of Directors endorsed the BirdSafe Program. We encourage members to participate.

Migrating birds can be drawn in to the lights in our cities when they are flying over at night. Once there, many are killed or injured in collisions with buildings. Minnesota building owners, managers and tenants can dramatically reduce these collisions, while saving money and energy, by participating in BirdSafe Lights Out. By voluntarily turning off certain lights at night they are also helping the Twin Cities live up to our growing reputation for bird-friendliness. In 2011 Minneapolis and Saint Paul

were jointly recognized by the US Fish & Wildlife Service as Urban Bird Treaty Cities, along with only 18 others throughout the nation.

You can help!

What to do?

Turn off architectural lighting • Extinguish spot and floodlights.

• Down-shield exterior lighting or limit to ground level.

• Turn off interior lighting especially on upper floors.

• Substitute task lighting whenever possible.

• Reduce lobby and atrium lighting wherever possible.

When to do it?

• March 15 to May 31 and again August 15 to October 31.

• Between midnight and dawn.

To sign up, visit http://mn.audubon. org/lights-out-program or call 651739-9332 x11. t

Awards Ceremony If your building participated in the 2012 Kilowatt Crackdown Challenge, we invite you to bring your management and engineering team to celebrate our collective energy savings and learn who this year’s winners are. Minneapolis Mayor R.T. Rybak and St. Paul Mayor Chris Coleman have again been invited to present the awards. All competitors will receive a certificate of participation. Three buildings in each city will be awarded prizes for the highest energy savings in their size category and one building from each city will be awarded the Kilowatt Cup. In addition, there will be a “Most Valuable Tenant” award presented in each city.

Thursday, April 4

8:00 – 8:30 a.m. sign-in and breakfast 8:30 – 10:00 awards ceremony

BOMA International Conference & Expo San Diego Convention Center San Diego, California

June 23-25, 2013 Join the BOMA Greater Minneapolis delegation headed for San Diego this spring! If your world is commercial real estate, travel with us for the most important national business and career-building conference of the year.

• Learn the latest information to stay ahead of changing market conditions at the most comprehensive educational conference in the industry.

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Visit over 400 exhibits from leading manufacturers and suppliers to find the innovative products, technology solutions and service offerings to help you do more with less.

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Expand your professional connections at collaborative networking events.

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Learn from top achievers how to maximize your success during the inspiring General Sessions.

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Earn continuing professional development credits to strengthen your resume and enhance your career.

(Though not eligible for Minnesota’s real estate CEUs, these credits are applicable to your BOMI designations.)

This conference is packed with learning opportunities designed to increase operational performance, reduce costs and boost NOI. Look for complete details at www. bomaconvention.org. t

Where: Fifth Street Towers 150 South Fifth Street, third floor Cost: Free to all competitor teams, but advance registration is required.

Register

online at www. bomampls.org or by sending email to events@bomampls.org.

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BOMA International’s Winter Business Meeting

By Kevin Lewis BOMA Executive Director

In mid-January BOMA President Dave Dabson, Vice President Ted Zwieg and I had the privilege of representing BOMA Greater Minneapolis at the BOMA International Winter Business Meeting in Honolulu, Hawaii. Yes, the allure of the warm sun was enticing, but much to my chagrin, the program was jam packed with committee meetings, general sessions, educational programs, regional luncheons, a town hall meeting and a Board of Governors Meeting.

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The conference included celebrations of a number of successful BOMA International programs.

Recent BOMA 360 Performance Program designees were recognized. To date, more than 530 buildings across 56 markets have earned the BOMA 360 designation. (BOMA Greater Minneapolis has 16, in case you were curious – or want to join their ranks!)

companies were honored for having met all seven goals.

Among those recognized were these companies represented in our Twin Cities market:

Also recognized were participants in the 7-Point Challenge, which concluded in 2012. The Challenge, first issued in 2007, was designed to help incentivize voluntary, market-driven efforts to reduce energy consumption by 30% across portfolios, in comparison to an “average” building. Twenty

Liberty Property Trust was also recognized for being most innovative in its approach to energy conservation. They created a program called the Liberty Energy Efficiency Partnership, or “LEEP,” an internal program to work with tenants who control their own energy bills.

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Brookfield Office Properties; Liberty Property Trust; Shorenstein Realty Services Wells Real Estate Funds

BOMA Greater Minneapolis

The BOMA Town Hall Meeting allowed members from across the country to discuss BOMA’s priorities for the upcoming year and beyond.

Several small groups were formed to discuss strategies for membership growth and shared vision for BOMA. Ideas were proposed for refining education, mentorship programs and networking to better support the individual member.

(Continued on next page.)

At the Board of Governors Meeting, BOMA International Chair, Joe Markling, gave the Chair’s Report.

Markling called on those present to assume leadership roles, stay up-todate on industry trends, mentor the next generation and continue the hard work to strengthen the BOMA brand. As Markling explained, “We are all made better through the ability to share ideas, perspectives and best practices within the BOMA community.”

One powerful statistic included in BOMA International’s Year in Review report at the Board of Governor’s meeting was that BOMA’s victories on code issues have resulted in savings of $3.50 per square foot for each existing commercial building in the country!

You can find the Year in Review Report here: http://www.bomampls. org/boma/pdf/BOMA2012.pdf.

You’ll find this document to be a great addition to any budget documents you’ll use to justify BOMA dues to your decisionmakers.

For me, the most compelling element of the Winter Business Meeting was the Government Affairs Committee Meeting. This nearly four-hour session included sub-committee meetings of the BOMA PAC Council, the Energy & Environment Committee and the State Government Affairs Committee.

energy benchmarking which was subsequently passed by the Board of Governors.

Clearly, your first call for information, engagement, advocacy and education is right here at BOMA Greater Minneapolis, however, I

Attendees representing BOMAs from across the country compared notes about the government affairs issues they’re engaged with in their regions. It was sort of a “watch out!” segment for all. The most noteworthy action item was the passing of a new policy position on

BOMA Greater Minneapolis

encourage you to also use BOMA International as a resource on the national level. Their website is full of information that you’ll find helpful. t

Waiting for the Board of Governor’s Meeting to begin.

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Welcome New Members!

Regular Members

Kristi Zelenka, Liberty Property Trust

Engineers Association

Travis Bramer, Cushman & Wakefield | Northmarq

Justin Hop, Transwestern Associate Members

Tracy Hover, Rohn Industries Recycling

Andrew Marchant, Interstate Companies

Scott Gilbertson, Prevolv

Keri Kindelspire, Anderson-KM Builders

Christian Fritzberg, Peoples Electric Company

Jeff Olsen, Superior Painting Services Co.

Stephen Cieslukowski, Brothers Fire Protection

Gail Essen, Siemens

Christopher Nelson, Xpedx

Don Letsch, Countryside Heating & Cooling

Brian Elliott, The Bainey Group Inc.

Jenny Blomgren, Alete Cleaning Services

Legislative Update

By Douglas M. Carnival, Partner McGrann Shea Carnival Straughn & Lamb The Governor’s budget was released on January 22nd to much anticipation.

His proposals and how the DFL Legislature reacts to them will be the centerpiece of the 2013 Legislative session. The Governor’s two-year budget plan would increase spending from $36.8 to $37.8 billion in the upcoming biennium.

To pay for this increased spending and to cover the projected $1.1 billion budget deficit, the Governor has proposed a major tax package for consideration. His proposal covers property taxes, sales taxes, corporate taxes, income taxes, cigarette taxes and transit taxes.

PROPERTY TAXES The business community has been seeking property tax relief for a number of years since the statewide property tax has crept up consistently for the last ten years. During the time that the Republicans controlled the legislature, proposals were considered to phase out the statewide commercial

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industrial property tax. However, Governor Dayton was unwilling to accept those proposals. He has now, in his budget plan, recommended freezing the state wide property tax for the next two years followed by an increase at half the rate of inflation in subsequent years. This is a far cry from what the business community has been seeking. In addition to the commercial industrial property tax plan, the Governor also proposes to provide a rebate of $500 to every Minnesota homeowner and farmer in an effort to reduce their property taxes.

INCOME TAXES The Governor has followed through on his campaign promise to increase income taxes on the top 2% of Minnesota earners. His proposal would create a new tax bracket of 9.85%, on top of the current top rate of 7.85%. This would apply to couples with taxable income of $250,000 or more and single filers with $150,000 or more.

SALES TAX The portion of the Governor’s tax proposal which has the most farreaching impact is in the area of sales taxes. Governor Dayton has taken a controversial step of proposing both a sales tax on clothing and on services. He would extend the current sales tax to clothing items of $100 or more. This issue has been debated in Minnesota for many years but no governor has previously recommended taxing clothing. Beyond taxing clothing, the Governor would also impose a tax on practically all services rendered in Minnesota.

This controversial idea would be applicable not only at the retail level for services such as haircuts and auto repair but also at the “businessto-business” level. As a result, accounting, legal, advertising and real estate services would be taxed for the first time. Very few states tax services and the only one to

tax business-to-business services, Florida, quickly repealed the tax six months after it was passed some years ago. Taxing business-tobusiness services creates a number of unintended consequences and results in poor tax policy. It causes disparity between those services purchased locally and those which may be provided from distant business centers like Chicago, New York, and Los Angeles. Minnesota companies can purchase these services from out of state location and avoid the tax. This would result in serious damage to Minnesota businesses competing for that work.

Further, taxing these type services creates an unfair advantage to larger corporations that can provide services such as legal, accounting and advertising “in-house” thereby avoiding the tax. Small businesses that cannot afford to have in-house legal, accounting and advertising staffs would have to pay sales tax

on services they would receive from local Minnesota providers.

Lastly, taxing business-to-business services creates “tax pyramiding.”

For example, if an accounting firm provides services to a law firm which provides services to an advertising firm which provides services to a Minnesota retailer, like Target, sales tax would be applied at every step along the way. This would compound the sales tax paid by consumers and increase the price of products sold at retail.a Numerous business organizations and even the two metropolitan newspapers have come out vocally in opposition to any business-tobusiness sale tax.

sales tax reduction when the entire package is implemented. Many question whether, when, all things are considered, this will result.

OTHER TAXES The Governor has suggested reducing the corporate tax rate from 9.8% to 8.5%. However, he does so by removing two of the current deductions which benefit major corporations doing business in Minnesota. He has recommended raising the Cigarette Tax by $0.94 per pack, bringing it in line with the comparable tax in the State of Wisconsin and imposing a .25% sales tax increase in the metro area for transit. t

The Governor has proposed as part of his comprehensive sales tax overhaul, to reduce the rate from 6.875% to 5.5% contending that most Minnesotans would see a net

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BOMA Board Tours Xcel Energy Prairie Island Nuclear Plant

By Mike Thornton, Frauenshuh Inc. BOMA Board of Directors and Member of the BOMA Communications Committee Members of the BOMA Board of Directors recently had the opportunity to participate in a “once-in-a-lifetime” tour of the Prairie Island nuclear facility at the invitation of Board Member Sue Goldstein of Xcel Energy.

The Prairie Island Nuclear Plant, located near Red Wing, is owned and operated by Xcel Energy and has been in service since 1973, currently providing approximately 30% of the total electricity used by Xcel Energy’s upper Midwest customers.

Prairie Island is among Xcel Energy’s lowest-cost sources of electricity generation and does

not produce any greenhouse gas emissions in the process. It is one of two nuclear facilities in Minnesota, the other being the

Monticello nuclear facility, also operated by Xcel Energy.

The first impression of the facility is that, as one would expect, security is paramount. Authorized

visitors must pass through three separate levels of security checks to obtain a security clearance prior to gaining escorted visitor access to enter the facility. The Nuclear Regulatory Commission (NRC) has very strict rules governing public and employee access to the facility which, of course, Xcel Energy follows to the letter to avoid any possibility of a breach of security.

Board members were also impressed with the multiple redundancies built into all safety and energy operations. Some members commented that their concerns regarding the overall safety of nuclear power generation are dispelled due to the very high

number of safety procedures, precautions and redundancies in place throughout the facility in all phases of the operation.

The control center also impressed board members with its abundance of gauges, dials and other instruments, all taking on a “Star Trek” appearance and begging the question “what do all these dials do?”

The tour coincided with a restart of the entire plant after a scheduled Page 8

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outage for refueling so Board members were able to glimpse a portion of the incredibly detailed, step-by-step process required for completion of such an undertaking.

NRC inspectors are stationed at each nuclear plant to provide continuous, independent oversight and monitoring of programs at the Prairie Island plant. The operations staff work a regular five-week schedule and then work the sixth week in training to constantly upgrade not only their technical skills but also refresh on rules, regulations, and safety procedures. Prairie Island participates in the nuclear power plant group that self-regulates to apply stricter standards to operation issues than required by the federal government.

Board members came away from the tour impressed with the operation of the facility and its focus on safety and security as well as with the overall operating capabilities of the facility and its staff.

Thank you to Xcel Energy and Sue Goldstein for inviting the Board on a most interesting tour! t

Congratulations TOBY Winners 2013 Seven Minneapolis area properties have been awarded the prestigious TOBY Awards in their competitive categories locally. The winners now advance to the regional level of the competition and then, if successful there, they will advance to the International level where winners will be announced at a gala in San Diego, California on June 25. Each management team is shown here with BOMA International President Joe Markling and TOBY Committee Chair Ted Campbell.

Accenture Tower

Southdale Office Centre

In the Earth Award category, the winner is Accenture Tower, owned

by CalSTRS and managed

by CBRE.

In the Suburban Office Park (Mid-Rise) category, the winner is Southdale Office Centre, owned by Southdale Office and managed by Colliers International.

Target Plaza

Capella Tower

In the Corporate Facility category, the winner is Target Plaza, owned

by Target Corporation and managed by Target Corporate Real Estate.

In the Over 1 Million Square Feet category, the winner is Capella Tower, owned by Minneapolis 225 Holdings, LLC and managed by Ryan Companies.

Fifty South Sixth

In the 500,000 - 1 Million Square Feet category, the winner is Fifty South Sixth, owned by Hines Global REIT 50 South Sixth LLC and managed by Hines.

One Southwest Crossing

In the 100,000 - 249,999 Square Feet category, the winner is One Southwest Crossing, owned by One Southwest Crossing and managed by Colliers International.

Wells Fargo Plaza

In the Renovated Building category, the winner is Wells Fargo Plaza, owned

by Invesco and managed

by Zeller Realty Group.

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Meeting Re-Cap

January Annual Market Outlook

By Audrey Rohrbach, Colliers BOMA Young Professionals Class of 2009 January’s Annual Market Outlook featured a distinguished panel of speakers who danced their way to the podium to the music of the latest viral internet sensation “Gangnam Style.” The theme was “Twin Cities Style!” Panelists included Kathy Schmidlkofer from Greater MSP, Dan Gleason from Cushman & Wakefield / NorthMarq, Erin Wendorf from CBRE, and program moderator Russ Nelson, principal with Nelson Tietz & Hoye. The panel set the bar high for 2013 upcoming meetings, not only because of their unique dance abilities but also their depth of knowledge and promising outlook of 2013 and beyond. Here’s what they told us: Kathy Schmidlkofer told us that the Twin Cities region is currently the 44th largest global economy and sixth largest nationally with nearly $200 billion in GMP (gross metropolitan product). Factors in our momentum include our flourishing financial services, health and life sciences industry, our food and agribusiness sectors, and the number of companies that have chosen to make our region their corporate headquarters.

As these sectors continue to grow we’ve seen the addition of 28,000 jobs in 2012 and Greater MSP is working towards adding a total of 100,000 jobs by 2016.

Additionally as a result we have seen more than 2% increase in construction starts and are currently leading the US in this category, signaling to outsiders that the Twin Cities has emerged from the recession and has what it Page 10

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takes to grow beyond.

Dan Gleason continued to paint a portrait of prosperity. He told us that over the last two years there has been positive absorption in the suburban market entirely focused on Class A office. This has been due to tenants taking advantage of competitive Class A rates and upgrading from their previous Class B & C locations.

This narrowing of the playing field has challenged Class B owners to re-evaluate the services they offer and to make renovations and add amenities that are traditionally associated with Class A. These changes coupled with less availability of Class A space will positively help the absorption rates of Class B.

investment anticipated to begin in our region over the next few years, including: • • • • • •

Vikings stadium St. Paul Regional Ballpark Central Corridor Southwest Corridor Road infrastructure improvements Expansion at the U of M

Thanks to those BOMA members who danced “Twin Cities Style” out of the meeting at the end.

Erin Wendorf focused in on the CBD market and echoed the themes of the suburban office market with a downtown flare.

Class A vacancy downtown is currently 11.5%. Again Class A in the CBD dominated the absorption and vacancy has returned to prerecession levels, leaving Class B & C with the double the vacancy rates at 26% & 24% respectively.

One glimmer of hope for Class B & C properties is that 2012 was the first year since 2005 that they’ve seen positive absorption rates and it’s anticipated this will only continue to improve. Within Class A it’s a “Tale of Two Cities” where much of the positive absorption has been seen above the 20th floor.

There is more than $8 billion in private and public capital

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This will help secure the Twin Cities market as a leader in the construction industry and create an air of excitement among residents and onlookers, proving the Twin Cities is a prosperous place to live and work. t

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Here’s their rehearsal video on YouTube: http://youtu.be/hegcUKinrtk

Lessons Learned from a Building Fire

By Mike Thornton, Frauenshuh Inc. BOMA Board of Directors Member of the BOMA Communications Committee At BOMA’s fall seminar, Charlie Gravelle of Frauenshuh HealthCare Solutions described his experience in dealing with a fire and the subsequent investigations that occurred in one of his previously managed buildings in Edina.

Ultimately the investigation revealed that the fire originated in one private office in a multi-lawyer suite in a multi-tenant building. A tenant had forgotten to extinguish a candle. The fire destroyed the private office where it began as well as many offices immediately surrounding it and it caused smoke damage throughout the entire building.

The paramount takeaway is that, once a fire occurs, the fire chief is in charge of the building and not the property manager.

The Edina Fire Department was on the scene and immediately took charge of the entire building as if it was a crime scene, bringing in its own internal investigation team. This team completes a detailed investigation and looks at the fire to be sure there was no “criminal” source of the fire.

In this case, the fire department thought the fire was suspicious and wanted to be sure a complete investigation was performed. They preserved the scene, putting their own locks on the individual office door where the fire originated and they controlled access to the entire building. The fire department wants to complete its own investigation without hearing anyone’s theories to muddy the process; they also need to preserve evidence that will enable them to draw their own conclusions. The attorneys in the office were allowed into the suite once to retrieve their personal effects and business papers and were closely monitored during the process.

Investigators looked at all building systems, including electrical and HVAC systems, checking all possible sources and systematically eliminating them from consideration.

Burn patterns and soot were closely examined for any evidence of suspicious origin.

The fire department completed its investigation by the end of the second day, eventually focusing on the candle as the cause of the fire. It would not allow any insurance investigation to begin until its investigation was 100% complete.

Once the fire department concluded its investigation, insurance investigators representing building ownership, the tenant where the fire originated and nine other tenants began their respective investigations. There were a total of seven investigators representing ten tenants. They performed many investigative tasks as a group since they knew each other; that helped Charlie coordinate many activities and minimize the potential inconvenience.

investigations were complete. Plus, they are working on behalf of their client and information gathered in the course of the investigation is privileged.

Insurance reports were never shared with Charlie but were used to subrogate claims, actions in which Charlie had no involvement. The property owner was involved in all claims filed by tenant against tenant as they were actually filed by tenant against the landlord who had the relationship with the tenant where the fire took place.

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Not disturb anything in the office suite and office where fire started.

Insurance people instructed Charlie to: • Allow them into the suite to perform their investigations; • Allow them into other areas of building to do their investigations.

Simply put, the property manager’s role in such an event is to enable the fire and insurance experts to perform their duties and provide any assistance as directed by those agencies. t

In summary, the Fire Department instructed Charlie to: • Consider the premises as a crime scene; • Not enter the premises; • Board up the window which was broken due to fire heat; • Create negative pressure throughout the space to exhaust smoke smell from building to outside; • Expect other insurance investigators to have access into the space;

Insurance investigators took tons of photos and examined everything throughout the office and suite to be sure fire was not caused by an electrical short or some other building equipment malfunction.

They interviewed everyone who officed in or near the source of the fire. They controlled who entered the suite allowing access only to insurance investigators and those directed by the insurance investigators to have access.

As the property manager, Charlie had very little control and only minor involvement in any of the investigations.

The insurance investigators installed a padlock on the door to the office where the fire started. Charlie was given instructions on who could and could not enter the suite. He provided building plans and fielded a lot of questions from all investigators, one investigator often duplicating the previous investigator’s questions. At the conclusion of the investigation, any reports Charlie received from the insurance investigators were “courtesy” and not official. Investigators would not provide official information until their

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MARCH 6 14 21

Engineers Association CANCELLED Board of Directors Meeting Membership Meeting

APRIL 3 11 18

Engineers Association Meeting Board of Directors Meeting Membership Meeting Annual Meeting

MAY 1 9 16 27

Engineers Association Meeting Board of Directors Meeting Membership Meeting Holiday - Office Closed

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ENGINEERS ASSOCIATION MEETING Understanding ASHRAE Standard 188P —The Prevention of Legionella Dreaded words no facility manager wants to hear: Legionnaires’ disease. Just one case of Legionnaires’ disease can shine an unwanted spotlight on your building’s water system and wreak havoc by creating disruptive emergency disinfection, legal liability and potentially huge expense. According to published research, up to 70 percent of all building water systems are contaminated with Legionella, the bacteria that cause Legionnaires’ disease.

This session will cover the purpose of the Proposed AHSRAE 188P standard including: • What facilities are affected • Which water systems within the building are affected • Suggestions for implementing a Legionella HACCP Plan

To respond to this growing threat to public health, the American Society of Heating, Refrigerating and AirConditioning Engineers, Inc. (ASHRAE) released ASHRAE Standard 188: Prevention of Legionellosis Associated with Building Water Systems. The new standard provides a comprehensive set of practices that facility managers can follow to help prevent Legionellosis.

11:30 am sign-in and networking 12:00 - 1:30 pm lunch and program

Wednesday, April 3 WHERE: Windows on Minnesota 50th floor of IDS Center COST:

Members:$42 ($37 if you register by noon on Friday, March 29) Nonmembers: $49. Same day registration: Members $45, Nonmembers: $55.

Register online at www.bomampls.org or by sending an email to events@bomampls.org.

must beMinneapolis received 24 hours in advance. Substitutions honored.

• Cancellations BOMA Greater