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Executive Report

Memorable Years

People spend more time reflecting at the end of a year than at any other time. That’s a shame, since reflection is the way that people find meaning in the events that have crossed their lives. RIA is like other institutions, and RIA members are like other people. So…let’s get reflective.

RIA members with whom we work are vocal about their industry. They have high expectations for their associations (we realize that RIA is not the only game in town and that there are many specialized organizations serving our members). In fact, our members are just like customers everywhere in that they would like to have what they need when they need it. That has been a major driving force in restructuring RIA to create a department devoted to educational programming so the 40+ annual programs offered by RIA are operationally and administratively effective. As we get further into this transition, we find we are building a stronger foundation than we’ve ever had before; a foundation that will make development of future programs and services much more attainable.

Our industry is as varied, spontaneous, and challenging as any other…and then some! RIA has been increasing its communications and exchanges with allied organizations that affect our members’ businesses. In an era that demands effectiveness and efficiency, the strong motivation to provide value while conserving members’ dues encourages us to find common interests in order to launch joint efforts in the coming years.

Ultimately, however, associations are collaborative, consensus building institutions…and that means that they are ‘people’ organizations. RIA’s success is being built by some exceptional people. The Convention in March saw participation by some of the most respected professionals in the industry. The Fall Conference was rated by participants as the best ever staged. RIA’s leadership supported legislation to help the industry, adopted a customer-centered code of ethics, created and embraced a strategic plan for RIA’s future, and reinvented the association’s council and committee structure. (More on these developments next month.)

Most significantly, during the strategy development sessions, RIA’s leaders enabled the association to understand that, despite the diversity of our membership, all RIA members are specialists in returning property and lives to a previous and better condition. Members come together in RIA to help each other and to help the people of this industry perform their work with integrity and professionalism.

When we talk about people, we are really talking about an RIA family, and I would like to close with a comment about one of our family members. Just after Thanksgiving, five-year-old Elena Desserich received the news that she may not see her seventh birthday. Elena and her family have been at St. Jude Children’s Hospital in Memphis since November 29, trying to get some advantage over a fast-moving cancer. Read this item, then do something for one of our family: send Elena a get well card and include a $100 check for the foundation her family has set up to support St. Jude’s, the Make-A-Wish Foundation, and other services for children who have been chosen for the worst trials that life offers.

RIA members make things better by making things as they were. Elena reminds us that we can make the future better than today.

Don Manger

Executive Director

RIA NEWS

Breaking News
RIA Briefs
Toolbox Tips
Marketing Savvy
Product Spotlight
On Press Now

INDUSTRY NEWS

"CSU Team Predicts Active 2007 Hurricane Season"
"Cleanup of 9/11 Dust to Resume, E.P.A. Says, Despite Widespread Criticism"
"Mold Grows in Basement of Longworth"
"What's Hot, What's Not"
"RMS Publishes New Orleans Flood Risk Report"
"Legacy of Liabilities: A New Environment of Accountability"
"Carpet Extractors"
"Fire-Damaged Augsburg Lutheran Prepares to Celebrate Its Restoration"
"Judge Upholds Policyholders' Katrina Flood Claims"
"Mastering Mold"
"How to Overcome Underlayment Problems"
"Products Without Chemicals Gaining Momentum"
"Reinsurers Say Rates to Rise Jan. 1"
"Munich Re Sees Big Price Rise in Hurricane Business"
"Cleaning Up Meth Labs Costly"
"Risks in Architectural Applications of Nanotechnology"
"Forces of Nature"
"Pyrolysis - A Viable Recovery Theory"

RIA NEWS

Breaking News

IICRC Announces IEP Usage Settlement

In recent weeks, several members of the IICRC's S520 Standards Revision Consensus Committee resigned, including the committee chairman and three subcommittee chairs, just as the document is going through its final review by the Consensus Committee and seeking recognition as an ANSI standard. The resignations were potentially embarrassing for IICRC, the organization that serves as the S520 secretariat, and were cited by several sources to be the culmination of protracted disputes among S520 volunteers that cast a shadow over IICRC’s management of the S520 process.

In addition, two of the resignations have resulted in formal appeals being sent to the IICRC to address specific concerns that could affect the S520's certification as an ANSI standard. A lack of transparency in the process, as well as a conflict of interest involving some of the major players were two of the incidents cited in the appeals. The IICRC has 30 days in which to respond to any formal appeals.

One issue that has also raised concerns was inclusion of the trademarked terms "indoor environmental professional" or “IEP” in the S520 Standard and Reference Guide for Professional Mold Remediation. Although ANSI standards discourage or prohibit the inclusion of proprietary products within standards, IICRC applied to the U.S. Patent and Trademark Office for exclusive rights to the terms "indoor environmental professional" and “IEP”.

The discovery of the 2003 filing by S520 volunteers, some of whom claimed not being notified of IICRC’s action, generated concerns in the industry that the “IEP” term would be an exclusive property of IICRC and give IICRC’s certification unit market dominance over indoor environmental certification. In a statement issued Dec. 13, the IICRC released a plan that stipulates that IICRC will relinquish claim to exclusive ownership of the terms so that the terms can remain in the text of the proposed standard.

According to the statement, "Language will be developed and approved by the S520 Consensus Body for insertion into the IEP Chapter, or possibly the Foreword, which negates the ability to trademark the terms and the ability of anyone to use the terminology as a designation or certification. This language is intended to remove any economic incentive associated with use of the terminology, to the extent possible."

The proposal to relinquish the trademark was accepted by the IICRC Executive Committee during a follow-up conference call.

Hurricane Predictions Show Rise in Number

Despite a respite in hurricane activity this year, models for 2007 and on continue to forecast very active seasons for the next 5 years.

Risk Management Solutions (RMS) confirmed its earlier predictions concerning the number of hurricanes making landfall from 2007-2011. The company is predicting the Gulf Coast, Florida, and the Southeast will have 40 percent higher modeled annualized insurance losses, and the Mid-Atlantic and Northeast costal regions will see insurance losses climb as much as 30 percent higher.

In a related predication, the Colorado State University (CSU) Tropical Meteorology Project has issued a report indicating an active storm season in 2007.

"We believe 2007 will be an active season in the Atlantic basin," said William Gray, professor emeritus of atmospheric science at CSU in Fort Collins, Colo. The team expects hurricane landfall to be 125% of the 1950-2000 average and Atlantic Basin Net Tropical Cyclone activity to be 140% of the 50-year average.

Team analysts foresee 14 named storms, and expect seven will develop into hurricanes, with three of them possibly classified as category 3-5 on the Saffir-Simpson scale.

Clostridium Difficile Outbreak Instrumental in Nine Hospital Deaths

An outbreak of diarrhea caused by the clostridium difficile virus has been linked to nine deaths at Honor Mercier hospital in Quebec, Canada, since the initial outbreak at the end of July.

The infections started in the 200-bed hospital following renovations to eliminate a fungus in the walls, and reports say that despite thorough disinfecting with bleach, several floors of the building could still be harboring the bug.

As infections caused by clostridium difficile have been declining across Quebec, (down to 0.8% of admissions from 2.4% at the epidemic's height in 2004) there has been speculation that this is a new strain resistant to the methods normally used to eradicate the virus.

However, Mark Miller, a leading Canadian public health officer, believes that poor infection control is to blame. He believes the hospital has been hit with a strain that has circulated in Quebec since 2004. It is said to be 20 times more toxic than older strains of the virus and has been cited in the deaths of some 2,000 Quebec residents.

Affected patients are being isolated and furniture is not being moved from ward to ward. Curtains have been replaced and equipment is being sterilized, while workers are in the process of disinfecting the building.

Visitors have been restricted too: each patient is allowed just one visitor at a time and toddlers and infants have been barred. As in the U.K., visitors are being asked to be extra vigilant about personal hygiene and wash their hands thoroughly before entering and after leaving the hospital.

Source: The Cleanzine, http://www.thecleanzine.com/

ServiceMaster Co. Considered Possible Sale

ServiceMaster recently considered a possible sale, driving company shares up almost 7%. The company later announced that it was exploring alternatives to selling that would maximize value for shareholders.

With an estimated retail value of $3.5 billion, ServiceMaster commissioned Morgan Stanley and Goldman Sachs as financial advisers, while looking at alternatives to selling.

During a recent investor conference, the company said it would redirect efforts toward customer retention and would emphasize direct-mail marketing for the company’s brands: TruGreen Lawn Care, InStar Services Group, ServiceMaster Clean, Merry Maids, Furniture Medic, AmeriSpec, American Home Shield appliance warranties and Terminix pest control.

Chairman and Chief Executive Officer, J. Patrick Spainhour, said "Based on the actions we are taking this year and plan to take in the years ahead, our target is to achieve high single digit revenue growth, and earnings per share progressively increasing to the mid-teen level by 2009, with cash from operations growing and continuing to substantially exceed net income."

Illinois Senate Moves toward Increasing Minimum Wages

Governor Rod Blagojevich is expected to sign a bill forwarded by the Illinois Senate, intended to increase the state’s minimum wage to $7.50 an hour, making it one of the highest in the nation.

The proposal would increase the state’s current $6.50 an hour wage by $1 an hour and include annual increases to gradually raise the rate to $8.25 an hour.

DKI Ranked #75 by Franchise Times in Worldwide Sales

Franchise Times recently named Disaster Kleenup International, Inc. North America’s largest property damage restoration contracting organization. DKI earned the #75 slot on the Franchise Times Top 200 by Chains’ Worldwide Sales. The ranking is based on the size, sales and units DKI reported in 2006.

Worldwide sales reached $1.089 billion, and placed DKI ahead of traditional franchises such as restaurant chains like Krispy Kreme Doughnuts and Bennigan’s Grill and Taverns. McDonald’s again topped the list with over $50 billion in worldwide sales.

"Disaster Kleenup International is proud to be included on this illustrious list," commented Dale Sailer, president of DKI. "Over the last three years, our ranking has improved each year as we have continued to grow in size and sales, due to the hard work and dedication of our members and employees. We fully expect to keep rising in the rankings as our company expands its services to even more communities. The fact that we are the largest restoration contractor on this list reinforces DKI's position as The Source for Quality Restoration."

Tornado E-poll Yields Surprising Results on Green Cleaning

Recent increases in green cleaning’s recognition prompted Tornado Industries, Inc., to e-poll its 3,000 monthly newsletter subscribers, concerning changing trends in the industry.

Participants were asked if their customers have requested a change from traditional cleaning products to green cleaning products. Sixty percent responded "very few;" 20% indicated more than half; and 20% reported that a "quarter to about half" of their customers request environmentally preferable cleaning products be used in their facilities.

"It almost makes you wonder if green cleaning is of greater interest in the boardrooms of manufacturers and distributors than in the millions of facilities cleaned every day," said Jim Hlavin, head of Tornado's Business Development division. "However, we know the interest in green cleaning, sustainability, LEED certification, and similar measures are growing considerably. It is just beginning to blossom."

Lower Insurance Costs Create Good News for Consumers

In many parts of country, the price of homeowners’ insurance is declining. Automobile insurance prices are climbing at a slower rate than in previous years. Companies are spending less in 2006 than they did in 2005 to protect themselves against liability suits directed at management personnel, and to defend work-related injury suits. Life insurance premiums are also showing a decline in cost this year.

However, the declines are not reflective of the entire country. In areas prone to hurricanes and other natural disasters, homeowners are still paying higher insurance premiums. And, health-insurance rates continue to climb with escalating health-care costs.

Following the September 11 attacks, Americans were hit with sharp increases in insurance premiums. Recent declines could indicate that insurers are passing a small fraction of the reported booming profits on to policyholders.

Compiled from staff and wire service reports.

RIA Briefs

RIA Hires New Professional to Staff

RIA has added yet another outstanding member to its growing professional staff. Helen Liu joined the team this month in the newly formed accounting and finance department.

Born in China, Helen grew up in Seoul, Korea, and has lived in Maryland for more than 20 years. She has a unique background in accounting, biochemistry, and microbiology – spending 4 years in research and 9 in clinical labs before choosing to become a CPA 10 years ago.

Helen has worked in areas such as property management, residential construction, and land development, as well as public accounting. Prior to coming to RIA, she had been the project accountant for several builders, as well as controller for a local land developer.

She is a member of the Maryland Society of Accountants and will be setting up the department of accounting and finance at RIA. She is also interested in learning more about the science of restoration. Helen can be reached at helenl@RIA.org.

CIRI Names Dr. Spivak New SAC Chair

Dr. Steven Spivak has been appointed the new Chairman of the Cleaning Industry Research Institute’s (CIRI’s) Science Advisory Council (SAC) in 2007. Dr. Spivak will succeed Dr. Michael Berry, who completes his one-year term as chair.

“We’re also grateful – and fortunate – that we have someone of Steve Spivak’s qualifications to step into the chairmanship role, especially given his current affiliation and burgeoning activities with CIRI.”

Dr. Spivak brings a vast amount of knowledge in cleaning science to the position. He has served as a consultant and technical advisor with RIA for 30 years and has written the monthly "Technical Topics" column for RIA’s monthly, award-winning magazine, Cleaning & Restoration, for 25 years. He is a Professor Emeritus, Engineering with the University of Maryland, where he served for more than 30 years. He has participated and chaired a number of national and international panels, and was Chairman of the ISO Consumer Policy Committee for five years. Dr. Spivak has co-authored two books on standards and standardization, and is an Honorary Member of ASTM International.

“I’m excited by the opportunity to chair the SAC, building on the fine work that Mike Berry has done,” Spivak said. “This role allows me to bring together the two strands of my career – in-depth scientific research and practical cleaning knowledge – to benefit the industry. And I believe that CIRI, with its superb group of science advisors, is the perfect organization to blend existing and new scientific understanding with the day-to-day needs of cleaning professionals.”

Dr. Spivak will assume his role as SAC chairman on January 1, 2007. Dr. Berry will stay on as a science advisor, helping CIRI and the SAC prepare for its first symposium in late April 2007.

Helping is All in the Family

RIA members are used to helping those in a crisis, but sometimes that need hits a little bit closer to home. Many of you know Keith Desserich, who has served on the Environmental Council and been a regular contributor to Cleaning & Restoration magazine.

Five days after Thanksgiving, Keith’s five-year-old daughter, Elena, was diagnosed with a diffused brain stem glioma (tumor) after visiting Cincinnati Children’s Hospital for strep throat following the loss of her voice and dizziness. The prognosis is not hopeful and the tumor is inoperable. Life is lived in moments as the family makes the most of the precious time they have.

Elena is currently at St. Jude Children’s Hospital in Memphis where doctors are trying an experimental protocol to treat the tumor. There are good and bad days as she copes with the challenges from testing and radiation treatments.

The Desserich Family has set up a website at www.desserich.org, where they’re posting daily entries and photos of Elena’s journey. RIA is encouraging members to send Elena a get well card and make a donation to the Elena Desserich Hope Fund. , where they’re posting daily entries and photos of Elena’s journey. RIA is encouraging members to send Elena a get well card and make a donation to the Elena Desserich Hope Fund.

Cards can be sent to:

Elena Desserich

P.O. Box 157163

Cincinnati, Ohio 45215

Elena’s “Wish List” is also on the site with the list of activities she’d like to accomplish in the coming months. If you’re able to help, please let them know as soon as possible.

A trust for donations has been set up with a local bank. Contributions will be sent to St. Jude Children’s Research Hospital and used to set up a scholarship in Elena’s name.

The Elena Desserich Hope Fund

P.O. Box 157163

Cincinnati, Ohio 45215

Each card brings a smile to her face and each dollar brings St. Jude’s researchers that much closer to finding a cure. Show them how much RIA members care.

RIA is Looking for a Few Good Leaders

Interested in improving your industry? Then consider investing your time and talents in your trade association. RIA is looking for members who have what it takes to help lead this industry and association to the next level. We’re looking for people with vision, who have the ability to see the big picture, are able to think strategically, can identify what needs to be done, and are willing to take an active role in making it happen. If this sounds like you, contact RIA's executive director, Don Manger at donm@RIA.org for a leadership application.

“Solutions” are Just Around the Corner

RIA’s 62^nd Annual Convention and Exhibition, Solutions, is just over three months away. Scheduled for March 13-17, 2007, at the Buena Vista Palace & Spa in Orlando, Florida, the event offers over 55 hours of continuing education and an outstanding exhibition featuring the tools cleaners and restorers need. A new team pricing structure makes it easier than ever for companies to bring multiple employees so they can benefit from the information first-hand.

One of the many highlights promises to be the continuation of the RIA Drying Debate, affectionately known as the Donnybrook, from the fall conference in Denver. The Best Applications for Drying Debate will examine today’s drying options: dessicants, LGRs and heat technology in a spirited discussion of the pros and cons of each application. For a full list of sessions and to register, visit the RIA website (www.RIA.org) and click on the Convention link.) and click on the Convention link.

It’s not too early to make your flight reservations to the land of Mickey Mouse either. Flights to this popular destination book quickly, so don’t wait too long to make your travel arrangements.

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Toolbox Tips

Pesky Protein Fires

By Martin L. King, CR, ASA

Protein fires involve residues generated during the slow carbonization of meat or poultry. The residues are invisible, but emit a rancid, obnoxious odor. To an inexperienced observer, it appears to be simply an odor problem. This often leads to nonproductive attempts to “deodorize” the site. Then someone proposes sealing and painting the walls and ceilings as the answer. After their vapors dissipate, the rancid smell returns. What’s going on?

Part of the problem lies in variable interpretations of odors. Expectations play a role in odor perception, as does the ability to recognize a particular scent. Odors may be intermittent, or the complaining owner’s sensitivity may be greater than that of the contractor or adjustor, leading him to conclude that the odor resides in the owner’s imagination. Just because you don’t smell it doesn’t mean other nostrils won’t.

The root of the problem lies in the fact that you cannot effectively eliminate some odors unless you remove the source that emits them. A careful evaluation of the site is an essential first step for any protein fire. A starting place is often the air system. Removing the filter and sealing it in plastic for 24 hours will reveal upon opening it off site whether or not the air return, and perhaps the supply ducts, require washing. The quantity of material consumed and the length of time it smoldered are significant. Combustion products from a smoldering fire move slowly and respond to small pressure differences.

Experienced restorers follow a progression of steps until the problem is resolved. Protein residues are much more damaging and persistent than their appearance would suggest. The owner’s nose (not the contractor’s), is the key, so it makes sense to involve that device in working out the problem. It also helps if the insurance adjustor has experience with protein fires. If he says the house “just” needs deodorizing, he hasn’t had that experience…yet.

Martin L. King, CR, ASA, is an RIA technical advisor and author of the RIA Fire Guidelines. For more information on dealing with protein fires, order RIA’s consumer flyer by the same name online at Brochures.

Marketing Savvy

Maximizing Your Marketing Budget

Marketing is a crucial component to your overall business plan, but how can you really get a “bang for your buck?”

Here are some quick and easy tips:

Know what you’re selling and target your efforts to specific products
Create a buzz by using online social networks like MySpace
Keep your website fresh with updated information
Trade links or banners with affiliated firms and suppliers
Partner with local community groups on projects
Leave business cards and complimentary coupons at businesses around the city
Search Engine Optimize your website
Run sales on popular services/inventory that are fairly inexpensive
Create different coupons for different campaigns and track the results
Issue a press release every month on your business/accomplishments
Use word-of-mouth to promote your company

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Product Spotlight

RIA Apparel Half Price Sale

RIA is having a half price sale on all men’s and women’s apparel.

Men’s Full Zip Fleece

Our full zip micro-fill fleece jacket is available in classic navy or red featuring the RIA logo. The fleece fabric is anti-pilling and finishing touches include twill taping inside the neck, outside zipper pockets, neoprene binding keeps out drafts, wrists and waistband are trimmed with Lycra. Features zipper pulls on front zipper and pocket zippers. 100% microfilament polyester fleece.

Originally $45.00 Now $22.50

Men’s Sport Polo Shirt

This comfortable and attractive polo shirt features the RIA logo. The baby pique sport shirt features hemmed sleeves, 3 button placket with pearl buttons, side vents are double-needle stitched. The shirt is 60% cotton and 40% polyester. Available in classic navy and white.

Originally $35.00 Now $17.50

Men’s Cool Mesh Sport Polo Shirt

Versatility is key when you want a shirt that can take you from a corporate setting to an active lifestyle. Our Cool Mesh Sport Polo Shirt is ring spun 100% combed cotton fabric. The shirt features the RIA logo and includes a 3-button placket with horn tone buttons, side vents for a great fit and double needle stitching for additional durability. The shirt is available in white with khaki and navy trim.

Originally $35.00 Now $17.50

Women’s Full Zip Fleece

This jacket features the same soft micro-fill fabric as our men’s full zip jacket. Styled especially for ladies, feminine fit, shorter length The jacket has zipper pulls on front zipper and pocket zippers. The fleece fabric is anti-pilling and finishing touches include twill taping inside the neck, zip close slash pockets, wrists and waistband are trimmed with Lycra. Available in navy featuring the RIA logo. Originally $45.00 Now $22.50

Women’s Cool Mesh V-Neck

The unique styling and breathable mesh knit fabric make this shirt suitable for active and professional use. Made from ring spun combed cotton, into a 6.6 ounce mesh knit fabric, it's then garment washed for a soft look and feel and reduced shrinkage. Features the RIA logo and is available in white or navy.

Originally $35.00 Now $17.50

Women’s Scoop Neck T-Shirt

Our scoop neck tee is a blend of 95% cotton and 5% spandex which offers a comfortable and flattering fit for all sizes. Available in white and features the RIA logo.

Originally $35.00 Now $17.50

Order here: http://www.RIA.org/resourcelibrary/marmaterials.cfm#training

These and other RIA products can be found at http://www.RIA.org/resourcelibrary/marmaterials.cfm.

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On Press Now

Here’s a look at what’s coming in the January 2007 issue of RIA’s award-winning publication, Cleaning & Restoration.

Effective Cleaning and Health - Part 1

By Dr. Michael A. Berry

Today’s indoor environments play host to a variety of dangerous infections. Without a basic understanding of microbiology-based issues such as HIV, anthrax and mold, we are limited in solving the problems, and protecting our clients and ourselves.

Foundation Building

By Phil Rosebrook, Jr.

A strong building demands a well-built foundation, but companies often overlook the value of implementing good business habits. These include: properly handling finances, understanding profitability, developing a good structure for communication, and appropriately applying management practices. Does your company have what it takes to grow successfully?

Restoration Under Fire

By Patricia L. Harman

The hurricanes in Florida and along the Gulf Coast spawned a number of unscrupulous businesses offering their “restoration” expertise to property owners. Sometimes, even the “good guys” get caught in the fallout. Here is the story of one RIA member who learned this lesson the hard way.

Tufted Rugs

By Armen Dohanian, Jr., CRS

Hard surface floors are growing in popularity, and as a result, loose rugs have become more common. An entire line of tufted rugs in a variety of designs and colors are now available, but when one of these rugs comes in for cleaning, what dangers do they hold?

Ethical Relationships - Part 1

By John Fox

When hiring, training and terminating employees, there are ethical and unethical approaches. And in all three areas, employers have a fiduciary and moral responsibility to their employees. With the right tools, an employer has the ability to make positive changes in a company’s environment.

Columns

Commentary

The Value of Cleaning

Technical Topics

Thinking Green, Cleaning Green ? Part 1

Restoration Corner

Creative Documentation

Environmental Matters

Quality Control for Mold Remediation ? Making Quality Your Goal

Legal Briefs

Employer Aspirin for FMLA Intermittent Leave Headaches

Marketing Notes

Where Do We Go From Here?

Business Briefs

The Role of Ethics & Business Practices

Not a subscriber? Then visit http://www.RIA.org/buyersguide/index.cfm.

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INDUSTRY NEWS

"CSU Team Predicts Active 2007 Hurricane Season"
Business Insurance (12/08/06) Parekh, Rupal

Colorado State University's Tropical Meteorology Project forecasters predict an active hurricane season next year that will produce 14 named storms, seven of which will become hurricanes. Of these hurricanes, three are expected to be Category 3, 4, or 5 storms. They report a 64 percent chance that a major hurricane will impact the U.S. coastline, which is far above the 52 percent average for the last 100 years. While the 2004 and 2005 hurricane seasons were more active than most, the team notes that they were "well within natural bounds of hurricane variation." The team also states that changes in ocean salinity--not global warming--are likely responsible for increased hurricane landfall during those two years.
(Web Link)
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"Cleanup of 9/11 Dust to Resume, E.P.A. Says, Despite Widespread Criticism"
New York Times (12/07/06) DePalma, Anthony

The Environmental Protection Agency (EPA) is proceeding with the last phase of a remediation program intended to remove contaminated dust from apartments and offices in Lower Manhattan near the site of the 2001 terrorist attacks on the World Trade Center. If residents and commercial property owners choose to participate in the voluntary cleanup program, their units will be tested for such contaminants as asbestos and lead; they will not be charged for any necessary cleanup. The EPA did not proceed with a larger-scale program proposed last year that would have included properties outside Lower Manhattan because of the lack of methods available to determine whether contaminants came from the World Trade Center. The new program will focus only on properties below Canal Street; and while it will permit the retesting of cleaned units, it is still deemed "inadequate" by many residents and community groups. Dr. George Gray of the EPA's Office of Research and Development believes basic household cleaning likely removed much of the contaminated dust, but Suzanne Mattei of the New York chapter of the Sierra Club insists that contaminated carpets and other items should be replaced. With only $7 million remaining from a Federal Emergency Management Agency cleanup grant, EPA regional administrator Alan Steinberg says it is uncertain how many units can be cleaned this time around. In 2002 and 2003, $30 million was spent to test 4,200 apartments in the area.
(Web Link)
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"Mold Grows in Basement of Longworth"
The Hill (12/06/06) Kucinich, Jackie

The U.S. Department of Health and Human Services, in an Oct. 26 memo to the Architect of the Capitol (AoC), made recommendations for the immediate removal of five kinds of mold growing in the basement of the Longworth House Office Building in Washington, D.C. Despite being told to hire a qualified contractor to apply an anti-microbial solution to stop the molds' growth and remove contaminated items, the AoC has not completely eliminated the mold. AoC spokeswoman Eva Malecki says bleach has been used to hinder further growth, and duct tape has been used to seal the contaminated room. Malecki adds that a contractor has been hired to complete the cleanup "over the next several weeks." Tests performed by Aerotech P&K noted that Stachybotrys chartarum was among those found in the Longworth basement. Indoor Air Quality Association executive director Glenn Fellman, who attributes the infestation to moisture from Capitol Power Plant utility tunnels, believes the absence of mold remediation rules is likely responsible for the slow cleanup process.
(Web Link)
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"What's Hot, What's Not"
Floor Covering News (12/04/06) Vol. 21, No. 20, P. 10; Babinski, Sara

While oak is still the most popular type of hardwood flooring, homeowners are increasingly opting for woods known as domestic exotics. These include maple, ash, hickory, pecan, walnut, beech, birch, and cherry. Demand for foreign exotic woods, including Santos Mahogany and Tigerwood, is on the rise due to their unique color. Consumers typically base their decisions on color, with mid-tones and honey-colored woods remaining the most popular. However, homeowners are also growing more interested in lighter colors to brighten and enlarge rooms and darker colors to add drama to spaces. Wider strips of three inches to seven inches or more are gaining favor, as are handscraped floors and other surface treatments designed to give the wood a rustic appearance. Hardwood floors are now being customized to reflect the homeowner's personal taste, and in many instances, woods of different colors and species are being used in conjunction with stone.
(Web Link)
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"RMS Publishes New Orleans Flood Risk Report"
Claims (12/06)

According to a new report from Risk Management Solutions, the risk of floods in New Orleans will increase over time. "Flood Risk in New Orleans: Implications for Future Management and Insurability" points out that the city is sinking due to its location on delta sediments near the edges of an oceanic basin. Rising sea levels due to changes in the climate and stronger hurricanes predicted near the Gulf of Mexico will also play a role. RMS President and CEO Hemant Shah notes that other coastal cities must contend with the same risks as New Orleans.
(Web Link)
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"Legacy of Liabilities: A New Environment of Accountability"
Business Insurance (12/04/06) Roberts, Sally

Environmental insurance is likely to play a larger role at some companies than it has in the past as risk managers, executives, in-house attorneys, accountants, and others gather up data on environmental liabilities, which will now be disclosed under the Financial Accounting Standards Board (FASB) Interpretation 47 of FASB 143. Companies have to transparently account for all environmental cleanup costs, including the fair market value of those costs that have not been incurred. As disclosures and possible financial restatements from previous years are made, companies have to be prepared for potential shareholder and other litigation. Some environmental liabilities could be removed from balance sheets, but risk managers will have to carefully consult accountants and legal counsel before suggesting the removal of any liabilities to ensure they are in compliance with current regulations. Meanwhile, environmental insurance could become a significant asset at firms given that many directors and officers' (D&O) insurance and general liability insurance policies exclude environmental liability coverage. Environmental cost cap coverage can help companies insure any unknown liabilities beyond a currently assessed liability amount, while carve back or endorsement coverage can be added to D&O policies to ensure that environmental unknowns are covered when disclosures are questioned.
(Web Link)
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"Carpet Extractors"
Cleaning & Maintenance Management (11/06) Adams, Danna

There are a number of things carpet cleaners can do to keep their carpet extractors in good shape. They should use a mild detergent to clean the machine's body before applying a protectant. They would also be wise to keep the machine clear of areas that are too hot or too cold to avoid cracks and leaks. An acid-based descaler should be used frequently to flush the machine, eliminating lime and mineral deposits that can hinder performance. They can extend the life of the machine's wheels by lubricating them, and the hose will also last longer if it does not come into contact with pavement. Additionally, users should not put heavy items on the extractor's lid, and wand filters and motor brushes should be replaced as necessary. Finally, any leaks around the pump and seal should be fixed immediately to avoid major damage.
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"Fire-Damaged Augsburg Lutheran Prepares to Celebrate Its Restoration"
Toledo Blade (OH) (12/09/06) Yonke, David

The $2.5-million restoration of Augsburg Lutheran Church in Toledo, Ohio, took 19 months to complete. A 2005 electrical fire caused smoke damage, cracked the stained-glass windows, and melted the walls and ceilings. The church established a restoration committee comprising a dozen church members to formulate rebuilding plans. Committee member Heather Meyer notes that "this was a perfect opportunity for us to make some changes we normally wouldn't be able to do." In addition to a pane-by-pane restoration of the stained-glass windows, the project involved upgrading the worship space and offices and installing a sophisticated sound and video system. The rededication service was slated for Dec. 10.
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"Judge Upholds Policyholders' Katrina Flood Claims"
New York Times (11/29/06) Treaster, Joseph B.

Unlike Mississippi court decisions regarding flood coverage for homes and businesses in the wake of Hurricane Katrina, New Orleans federal Judge Stanwood R. Duval Jr. ruled that insurers should be held accountable for flood damage related to breached levees in New Orleans because the policies failed to distinguish between flooding caused by high winds and those caused by human error. The judge examined the language of the policies and deemed it ambiguous, which he interpreted to mean that man-made flood disasters were covered. State Farm and The Hartford Insurance Co. were the only two insurers to clearly eliminate all flood coverage from their insurance policies. Insurance Information Institute Chief Economist Robert Hartwig noted that the decision runs contrary to other decisions, and the insurance industry is confident that the appeals court will reverse the decision. If the decision is not reversed, the insurers are liable for billions more in claims above the $41 billion they have already paid out to storm victims. Policyholders in Louisiana indicate the little money they received from insurers for wind damage was not enough to rebuild their homes, and they are hopeful that the ruling will stand. Meanwhile Mississippi federal Judge L.T. Senter indicated that insurers will face a number of other lawsuits regarding flood damage in the state because insurers denied all claims without first determining if a portion of the damage was caused by wind and then exacerbated by flooding. Trials are expected to determine which portion of the damage is insured under homeowners' policies.
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"Mastering Mold"
Healthcare Financial Management (11/06) Vol. 19, No. 11, P. 33; Hansen, Wayne

There are several things health care administrators must do when undertaking a mold remediation project in a hospital to ensure that mold is safely removed and its growth curtailed, according to Hansen Cornel Consulting Group co-founder Wayne Hansen. They must first formulate a plan to remove the fungal and bacteriological contaminants by considering the hospital's workflow, then take care to determine how access routes can be changed during the course of the remediation project and break down the project based on location. Only then can administrators solicit bids from contractors, basing their selection on the contractor's training and experience in the hospital sector and the qualifications of the contractor's workers. They would be wise to verify that the contractor carries the appropriate insurance, request bid bonds to guarantee the project's completion, and hire certified industrial hygienists or environmental assessors to keep tabs on the project. When the remediation team has been put together, entry points to the remediation areas and barriers to patient areas must be erected. Following the removal of the mold and other contaminants and the application of antifungal and antibacterial agents, the contractor should replace the drywall and ceiling tiles, deep clean the ceiling cavity and air conditioning system, and use a vacuum with a high-efficiency particulate air (HEPA) filter to clean the work area.
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"How to Overcome Underlayment Problems"
Floor Covering News (11/20/06) Vol. 21, No. 18, P. 19; Iannaco, Louis

Underlayment is key to the successful installation of hardwood or laminate flooring, and if improperly installed, acoustic noise levels can reach unacceptable levels for many customers. Pak-Lite marketing manager Bob Cummings notes that psycho-acoustic levels can be crucial to flooring success, especially when customers are seeking to be rid of the "clicky, plastic sound" of laminate floors. Properly installing underlayment first involves the examination and cleaning of the subfloor. "Your finished floor is only as good as your substrate or subfloor," says Dayton Superior national program manager Robert Fastow. A second step would be to extend the edges of the underlayment two inches beyond the measured floor size to compensate for baseboards and other protrusions--with the excess cut on-site--and to ensure that the underlayment reaches the edges of the walls and doorways. Thirdly, installers should be educated enough to understand that masking tape is not an appropriate sealant against moisture if underlayment is ripped or damaged and in need of repair before laminate or hardwood is laid down. Some groups, such as INSTALL, have developed programs to educate installers about solutions for substrate that is not level or in need of repair, while manufacturers also offer best-practice guidelines to help with installation. Some companies are even posting tips on their Web sites and developing new materials to cut down on acoustic nuisances.
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"Products Without Chemicals Gaining Momentum"
East Valley Tribune (AZ) (11/25/06) Laxson, Toni

Carpet cleaning businesses have noticed a significant shift in the market toward more natural, chemical-free solutions. EcoClean President Gerard Windstein says, "The market has evolved, especially on the carpet-cleaning side." Windstein stopped using chemical-based products more than 10 years ago due to skin irritations and kidney infections. He says people questioned his decision to switch to chemical-free products, noting that they are more difficult to clean with than traditional solutions. However, mainstream supermarkets are beginning to stock natural cleaners to meet demand for irritant- and fume-free products. Sandee Escene of Drugstore.com notes that consumers have realized that the chemicals in laundry detergents, floor cleaners, and shower cleaners are absorbed into their skin.
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"Reinsurers Say Rates to Rise Jan. 1"
BestWeek (11/20/06) No. 47, P. 1; Cavanaugh, Bonnie Brewer

Reinsurance companies are expected to have a banner year after the mild hurricane season, but insurance industry executives are reluctant to speculate on how high January reinsurance renewals will be. On the other hand, many industry experts point out that additional capacity would be available in the traditional market for primary carriers. Insurance broker Benfield notes that property-casualty rates could rise as much as 20 percent in January, and those hikes are lower than those a serious hurricane season would have wrought. Members of the Reinsurance Association of America wrote about $13 billion in net premiums in the first part of the year, which is slightly lower than the $13.2 billion underwritten in 2005. Reinsurers initially raised premiums for portfolios along the U.S. coast by 200 percent to 300 percent, but those hikes are less likely this coming renewal season. Meanwhile, experts point out that traditional reinsurance firms will see increased competition from the capital markets, which have issued generous amounts of catastrophe bonds and reinsurance sidecars. However, rate increases are still likely given that hurricane severity is not expected to decline in the next several decades, according to forecasters.
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"Munich Re Sees Big Price Rise in Hurricane Business"
Business Insurance (12/08/06)

Munich Re reported that reinsurance rates for property-casualty catastrophe insurance policies would continue their upward trek, rising approximately 30 percent in January. Reinsurance premiums rose 30 percent on policies renewed in July as well. Analysts were also curious about whether premiums charged to other reinsurance players in the market would also rise, even though hurricane claims for 2006 were calm. Meanwhile, reinsurance costs for regions outside the U.S. were likely to remain stable, noted Munich Re's Torsten Jeworrek. The reinsurance firm still holds an A-plus rating from Standard & Poor's; and it will renew up to $12 billion in property-casualty business this January, though Munich Re stipulated that it would walk away from unprofitable lines.
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"Cleaning Up Meth Labs Costly"
North Forty News (12/01/06) Olson, Steven

Doug Griffith of Bio-Clean of Colorado says it will cost at least $20,000 to clean up a home that once served as a methamphetamine lab. Meth contaminates every surface with which it comes into contact, as such chemicals as muriatic acid and lithium are used to make the drug. Drapes, carpets, carpet pads, furniture, kitchen cabinets, and microwaves are just some of the items that must be replaced due to contamination. Walls and floors have to be cleaned so that no more than 0.5 micrograms per 100 square centimeters is deemed contaminated by future tests, but Griffith expects lawmakers in Colorado to follow the lead of other states and lower the standard to 0.1 microgram.
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"Risks in Architectural Applications of Nanotechnology"
Nanowerk.com (11/09/2006) Elvin, George

Self-cleaning windows, light-emitting walls, self-healing concrete, and flexible solar panels are just some of the building materials made through the use of nanotechnology. There are concerns about the risks these nanomaterials pose to the health of building occupants, especially as nanoparticles from air filtration systems, cleaning products, and coatings become airborne. Nanoparticles can also be absorbed into the skin through countertops, handrails, door pulls, and cabinets. Additionally, wastewater can introduce nanoparticles into the outside environment. Dr. George Elvin of Ball State University's College of Architecture and Planning says architects and others in the building industry need to keep abreast of research on the health and environmental risks of nanomaterials. While building owners want to capitalize on the benefits of these materials--especially when there is no evidence of bodily or environmental harm--Elvin notes that asbestos was at one time marketed as an advanced building material.
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"Forces of Nature"
Security Products (11/06) Vol. 10, No. 11, P. 54; Niziolek, Tom

The Marco Island Marriott Resort is a luxurious 700-plus-room beachfront resort hotel located on Marco Island, Fla., one of the state's more prestigious Gulf communities. Due to its location, every autumn the island resort must prepare for the threat of tropical depressions, tropical storms, and the occasional hurricane. During a 2005 renovation of the hotel, the decision was made to spend $7 million to replace all the existing glass in the complex with laminated "hurricane" glass. There was not enough time to complete the glass upgrade before hurricane season arrived, so the decision was made to implement a temporary solution that called for a coat of blast-protection film to be sprayed on existing glass in the complex, thereby preventing shards of glass from becoming airborne missiles. The project managers examined numerous offerings from several vendors. They chose a two-pronged solution that not only binds glass shards, but ensures that the window frame stays adhered to the building envelope, minimizing the amount of wind and rain that gets inside the envelope to damage rooms and interior furnishings. Just months after the glass project was completed, powerful Hurricane Wilma hit the island, but the Marriott suffered little property damage. The film on the windows stopped most of the glass from shattering and prevented broken shards from flying; and the system also kept the majority of window units in their frames, preventing major damage to interior spaces.
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"Pyrolysis - A Viable Recovery Theory"
Claims (11/06) Vol. 54, No. 11, P. 38; Stutman, Robert A.; Smith, Kevin P.; Kelly, Richard C.

Companies involved in lawsuits related to fires have begun to explore theories of liability stemming from pyrolysis, a physical process that causes materials to break down when exposed to high temperatures for extended periods, which are nevertheless below the material's normal ignition point. Since the compounds formed in the disintegration process are more volatile, the material may then ignite even though it has not been exposed to the temperatures that would normally be required for ignition. A recent ruling in a Colorado restaurant fire case has concerned some analysts that pyrolysis is no longer a viable theory for fire-related liability, but legal experts note that careful research can still support pyrolysis theories. In Truck Insurance v. MagneTek 360, the Tenth Circuit Court of Appeals ruled that plaintiff's experts' testimony stating that pyrolysis had caused the fire was inadmissible because the testimony was not based upon field research, but based upon textbooks and articles about pyrolysis. As a result, companies that use pyrolysis theories will still be able to have them considered in court as long as they are based on research, which can specifically pinpoint evidence of pyrolysis at the site of the fire.
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December 2006