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Thinking Integration

By Carol Park

Green construction and design is a hot topic and the future of the builder/architect industries. It is the next step in reducing our carbon footprint and saving our planet. Palm Springs-based Pro-Active Green Technology Land Development is leading the way in the movement toward sustainable design.

The company is raising the bar and setting the standards by reaching beyond Leadership in Energy and Environmental Design certification.

"I believe that LEED is not really a means of identifying efficiencies in the sense of building from ground up," Pro-Active President and Chief Executive Officer Ed Torres said. "LEED says if you insulate a house and you use double pane windows and save on waste you're building green. But I really feel that what [green] development and building should be moving toward is this building block scenario of technologies."

The integration of environmental elements, spiritual and personal well-being, healthy practices, water and energy saving systems, architectural designs and non-toxic building materials under one roof can create a 100% energy savings called E-ZEH and E-ZEB; Engineered Zero Energy Homes and Engineered Zero Energy Building.

Pro-Active's "Green Team" recently participated in an RFP on an affordable green housing development in Riverside that used the integration method and "the efficiencies far surpassed LEED platinum certification," Torres said.

Pro-Active, which handles entitlement and land development, currently focuses on zero energy home and building consulting and design. The company's "Green Team," a group of environmentally conscious businesses, work together under the Pro-Active banner to create and design energy efficient buildings.

The Team "understands the importance of the integration of technology and their place in the technological building scenario," Torres said. "With the consolidations of efficiencies and technologies we realized it's possible to build a zero energy building."

The Team combines photovoltaic systems with geothermal systems, uses structural insulated panels and other green elements to create Pro-Active's ideal green home or building.

"Green technology takes everything into consideration," Torres said.

The players

Green INQ; PermaCity Solar; o2 Architecture; Stantec Consulting; Premier Building Systems and The Toro Co. make up the Pro-Active "Green Team."

This Team of architects, engineers, suppliers and consultants work together to create the most efficient green home or building possible. The Team uses more than just one element of green technology to achieve energy savings.

"If one starts to understand the natural rhythm of the climate and add onto it with things like photovoltaic and geothermal systems and other technologies, we can achieve significant energy savings," said Lance O'Donnell, AIA and Principal of Palm Springs-based o2 Architecture. "It's not just about using systems to overcome bad design; it's about using design to achieve amazing results in terms of energy reduction."

O'Donnell designs buildings to maximize and compliment the efficiencies of the team's green technologies. His designs take advantage of sunlight and wind and strategically places green technologies to maximize efficiency.

"It's a gift what Lance does," Torres said. "He sees all the technologies together, he understands the integration process and that's a critical component of building on top of green technologies"

O'Donnell is recognized by the California Energy Commission as an innovative leader for incorporating regenerative principals in design projects.

Elk Grove-based Green INQ provides planning, design and construction management for installation of geothermal pump systems in a home or building. The geothermal system reduces energy costs up to 60% and maintenance costs up to 50%.

The system can provide simultaneous heating and cooling, allows for individual room control, has no air quality or fire safety issues, reduces duct work, makes hot water and has no outdoor equipment.

"We basically use the earth to heat and cool a building," said Craig Hoellwarth, Green INQ principal. "The geothermal system doesn't burn anything and is carbon neutral. Either we're taking heat out of the building or putting it back in the ground. The system is quiet and invisible; it's installed underground."

Long Beach-based PermaCity Solar sells, leases, owns and installs and maintains environmentally sound distributed power generation systems including solar electricity and solar thermal products.

PermaCity is headed by Jonathan Port. The company provides turnkey solar solutions including design, engineering, permitting and installation.

Canada-based Stantec Consulting provides planning, engineering, architecture, surveying and project management consulting. Founded in 1954, the firm offers its services through more than 60 locations in North America and the Caribbean.

Bloomington, Minn.-based the Toro Co. is a leading worldwide provider of outdoor beautification products, support services and integrated solutions. The company is committed to providing environmentally responsible products.

These innovative members of the Pro-Active "Green Team" are at the forefront of the green building movement. Their combined skills coupled with green technology advancements, helps them create buildings with zero utility bills and zero emissions.

Green future

As environmental awareness increases, consumers are beginning to demand greener products. Green building will be worth up to $38 billion and make up to 10% of residential construction activity by 2010, up from $7.4 billion in 2005, according to Harvey Bernstein, Vice President of Industry Analytics and Alliances for McGraw-Hill Construction.

With that in mind, Pro-Active hopes to help design homes and buildings that are solar ready so that when an owner wants to retrofit he can do so with minimal costs.

"There's no reason not to pre-structure homes to be solar ready, it's not that expensive and the benefits are well worth it," Torres said.

Green homes use up to 20% less energy than homes built to California's exacting Title-24 requirements. For every green-built home, there is an annual reduction of 267,413 pounds of carbon dioxide and 70 pounds of nitrous oxide. Those homes also reduce water usage by at least 20,000 gallons a year when compared with non-green homes.

Structural insulated panels, known as SIPs, are the next step in the future of green building, Torres said.

"I believe 10 years from now no one should be building a home with sticks, or what builders call stick framing, it should all be engineered because when you use structural insulated paneling, all the walls are solid; the strength of the structure has become secure and all the plumbing has to be inside of the walls," Torres continued. "And if you're going to do that much work you need to put on solar and geothermal systems. It would be insane not to because you've dramatically changed the way energy efficiencies are used for that building. The building industry needs to make these types of changes."

The team "is not looking at solutions for just our time," O'Donnell added. "We're looking at the long term."

Green billing

As global warming, pollution and other environmental concerns gain more awareness, bills have been passed to help provide incentives to be green while other bills are still in the congressional queue.

House of Representatives bill 5351, the Renewable Energy and Energy Conservation Tax of 2008, seeks to extend the tax deduction for energy efficient commercial buildings through 2013. The bill also seeks to increase the residential tax credit to $4,000 from $2,000. The bill also calls for the removal of existing limitations that prevent public utilities from claiming the commercial tax credit.

The bill would also extend the tax credit for the production of electricity from renewable resources to 2011. It would also authorize the issuance of qualified energy conservation bonds to finance local government conservation and greenhouse gas reduction projects with a cap of $3.6 billion on the issuance of such bonds.

The bill, sponsored by Congressman Charles Rangel (D-NY), was passed by the house in February and was read by the Senate twice before it was referred to the Committee on Finance.

Should that bill pass, it would be a boon for builders and developers, homeowners and public utilities.

"It's a win-win for everybody," Hoellwarth said. "There's opportunity for developers to make money and for homeowners to save money."

But more needs to be done, Torres said.

"If someone asked what I would do, I would take a trillion dollars and invest it in renewable energies in the U.S.," Torres said. "We also have to prepare and pre-design buildings for conversion to green technologies down the road; that's where I think the government should start moving toward. The government should give the building and development community the incentive to include prewired and pre-designed homes so retrofitting is less expensive and more attractive."

History of excellence

Torres is no stranger to the building industry or green technology. Raised in Long Island, New York, he has more than 25 years of business development experience. He Co-founded Palm Springs-based Contempo Homes Inc.

Torres developed 72-acres sited for 170 in Palm Springs while he headed Contempo as Chief Executive Officer. Those homes incorporate distinct architectural designs and green technology known as ContempoGREEN and EcoModern.

Then, after someone bought Contempo in 2005, Torres sold his holdings in the company and was appointed Chairman and Chief Executive Officer of Environmental Service Professionals in 2006. He also sits on the Building Industry Association Board of Directors and is the President of the Palm Springs Economic Development Corp.

Torres also hopes to get involved with Well in the Desert, a hunger fighting program in Palm Springs. He offered to help the charity build a 5,000-square-foot building for its program.

"I believe in empowering people," Torres said. "I believe in the law of circulation; the more that you can give is the more you can receive to give back."

Torres, who lived in Los Angeles for most of his adult life, moved to Palm Springs in 2001 to semi-retire.

"Los Angeles was getting to be a bit too much, too busy and too stressful," he said. But retirement didn't suit the active great uncle of 54-nieces and-nephews.

His foray into the home building industry and green technology movement began after he realized he owned a midcentury Alexander home in Palm Springs. His curiosity and love of the design spurred him to start Contempo Homes so he could recreate those Alexander houses.

Alexander homes are designed with high vaulted ceilings, slanted folded plate roofs and straight lines. The father-son team of George and Robert Alexander were the original architects of those beautiful homes that were once owned by Elvis Presley, Debbie Reynolds and Dean Martin.

But the problem, Torres said, was that Alexander homes used a lot of glass and they didn't meet today's energy efficient standards. So he looked around for a solution and found a flyer from the Department of Energy about zero energy homes.

After he read the flyer he knew he wanted to build a zero energy home.

"So I called the department and asked if they could direct me to a builder who was doing this and they said it was conceptual," Torres recalled. "So I started thinking...I called about 100 builders and some were only building solar and some used geothermal and not the other. Then I ran into Lance O'Donnell and told him that I believe we can have an indoor/outdoor midcentury home by using technologies to create efficiencies that will allow for that openness."

O'Donnell agreed. After that, Torres moved forward with building the Alexander homes.

"What I got out of that experience was that I discovered some technologies," he said. "So I started having meetings; I brought in geothermal, solar, and all of these guys and said 'okay, let's talk about building a zero energy home and how we can make it happen.'"

The reaction to his meetings, Torres said, was great.

So he took his green technology integration ideas and ran with them. He joined the Building Industry Association and began talking to people about green building. He went to conferences to promote his ideas and contacted potential members for his team. He researched and did his due diligence until finally he was met with enthusiasm from other builders and organizations. Today, Torres continues his innovative thinking and practices with his Pro-Active "Green Team."

"Green building wasn't new," he said. "But it was new when I brought them all together under one structure and magnified the efficiencies."

Torres is now focused on consulting on the development and design of green buildings. He hopes others will jump on the bandwagon and take up the green mantle.

"I would challenge that every new school to be built with all possible technologies to be a living classroom," Torres said. "I feel that every school should have solar and geothermal systems and be designed with the latest technologies so future generations can learn and understand and appreciate moving into that kind of environment."

June 2008 Issue

Building Industry Assn., Desert Chapter

By Fred Bell

By now I think we all know that the credit crunch is for real and is creating turmoil in the housing industry. It has unsettled the confidence of investors on Wall Street and consumers on Main Street. Market analysts and the media have piled on, sounding a death knell for the housing industry. Tag lines insinuating that there's no mortgage money, foreclosure rates are skyrocketing nationwide and home values are in a free-fall with no bottom in sight abound.

I'll set the record straight in a moment, but first I want to show why there is light at the end of the tunnel. Housing has always been a cyclical business and the industry worked its way through tough times before. The right policy decisions can get us through this period as well. The leadership at the Building Industry Association is acutely aware of the breadth and increasing depth of the problems in the mortgage markets. We have turned the focus of civic leaders to stabilizing housing in order to avert a full-fledged economic recession.

Results have been seen on several fronts: The Fed has cut interest rates six times since September -- a cumulative total of 3 percent -- to stabilize financial markets and increase liquidity in the credit markets. The central bank has also taken unprecedented action to make funds available for investment banks squeezed for credit. The President has signed into law a bill to eliminate taxes on forgiven mortgage debt. The House and Senate have each passed FHA reform, and we are hopeful that it will soon be enacted. The Administration has implemented "Hope Now," an initiative intended to prevent foreclosures. Federal regulators are providing FHA, Fannie Mae, Freddie Mac and the Federal Home Loan Banks more flexibility to address the subprime crisis. Congress has approved an economic stimulus package that will temporarily raise the FHA loan limit and the conforming loan limit for Fannie Mae and Freddie Mac through year-end. Locally, we have seen cities taking action to reduce the carrying costs of excessive building fees.

Congress and our State and local leaders need to go beyond the stimulus package to jump-start the housing market and keep the economy moving forward. Here's what lawmakers need to do: Provide tax credits and other incentives to stimulate home sales and help reduce the inventory of unsold homes. Adopt comprehensive reform legislation for Fannie Mae and Freddie Mac to enable these financial institutions to provide badly needed liquidity to the mortgage market. Modernize FHA to assist first-time and moderate-income home buyers. Expand the mortgage revenue bond program to help strapped borrowers refinance existing mortgages. Allow businesses to carry back net operating losses for five years to save jobs and help them weather the economic storm an allow withdrawals from IRAs for the purchase of a first home. Taking these actions will pay huge dividends for housing and the entire economy.

What the media is not reporting is that there is no credit crunch for qualified buyers taking out conventional loans for under $417,000. This is where the bulk of all home loans are made. The reason why this market continues to operate normally is because loans up to this amount can be purchased by Fannie Mae and Freddie Mac have the implicit guarantee of the federal government. While underwriting standards may have tightened for all loans, credit-worthy home buyers should have no problems finding conventional, conforming mortgages at very attractive rates. Getting the word out that mortgage money is available at very attractive rates is vital to boosting consumer confidence.

Foreclosures are high but limited in scope. A close examination of the facts shows that for a VAST MAJORITY of the country, there is no foreclosure crisis. While foreclosure rates have increased this year, almost all American home owners are making their mortgage payments on time. It's also important to note that a high percentage of foreclosed loans to date have been among speculators or investors who were looking for quick profits and just walked away from their investments when the housing market cooled.

As for the myth that home values around the country are in a free-fall, let's stick to the facts. Karl Case, who distributes the monthly S&P/Case-Shiller Home Price Index along with Robert Shiller, was recently quoted in National Mortgage News as saying: "There's no question there's no (housing) bubble in 43 states. Case added that home prices have remained relatively flat in most places, even though some of the larger markets are struggling. Nearly all the markets that posted the largest average decline in home prices during the past year have appreciated in value by more than 80 percent since January 2000, according to the latest S&P/Case-Shiller home price statistics. It makes sense that the most super-heated housing markets are now experiencing the most serious market corrections.

There is absolutely no question that over time, home values will stabilize and then move upward with the next recovery. To argue that home values will continue to decline and never recover, one would have to make a convincing case that it will cost less to build a new home five years from now than it does today. That's not going to happen. Despite today's housing slowdown, the price of building materials continues to go up due to worldwide demand and upward pressure on commodity prices. Look at population and household growth; the increasing scarcity of available land. The costs of getting land entitled will continue to go up because of more and more restrictions and fees being added by local governments. Over time, all these factors will continue to drive up the cost of housing.

With home builders appropriately cutting back on new supply to meet current market conditions, they are offering great incentives to boost sales. This is a boon to home buyers. But six months or a year from now, as the supply-demand equation rebalances, builders may stop offering these incentives. When it comes right down to it, Americans have only two options. They can rent a home or they can buy a home. Most people prefer to own the place where they live and raise their family. For credit-worthy buyers, the option to purchase is still very viable and makes a great deal of sense.

June 2008 Issue

Preventative care

By Carol Park

It's invasive, it can grow in 24 hours, often times it goes unseen and unchecked; mold is the silent indoor air quality killer that impacts you and your family's health, decreases property value and costs you thousands of dollars in ongoing health issues, maintenance and repairs.

Palm Springs-based Environmental Service Professionals Inc. offers a program that will help prevent mold growth and give building and home owners peace of mind.

ESP's Certified Environmental Home Inspector program taps a team of inspectors certified in traditional home inspections, moisture inspection, annual mold and moisture maintenance, environmental testing, allergen screening, neighborhood environmental reports, energy inspections known as a home energy tune-up and radon testing.

The CEHI program not only helps to ensure mold free living for owners, it also mitigates risks for the builder, insurance company and the mortgage lender.

"Builders are accountable for 10 years worth of defects (In California) on a home, they are liable," ESP Inc. Chairman and Chief Executive Officer Ed Torres said. "A house is really only ever inspected during a transaction. What we propose is that every year the home is inspected so that when a problem arises, the cost of repairs is reduced and the risk is mitigated down to a 12 month cycle. That report would go to the builder, to the insurance company, the consumer and the mortgage lender annually. Thus allowing the builder to reduce its builder's risk insurance over a 10-year period because now they have a home being inspected by a third party every year to detect problems in the earliest stages possible and then correct them."

Once a home is assigned a CEHI inspector it never loses that person. Even if the home is sold or repossessed, the same inspector will stay with it. That inspector through ESP database keeps records and reports on any changes, updates and repairs done on the home.

An inspection paper trail reduces risk for the builder who might otherwise pay for a repair he is not responsible for, Torres said. For example, a homeowner might replace a toilet in the house using a local plumber. The replacement is noted by the CEHI inspector with photographs. Down the road, should something go wrong with that toilet and mold should grow, the builder knows that he is not responsible for repairs because he knows that the homeowner used a local plumber to replace the toilet.

CEHI annual standardized inspections (cover over 57 points of the home) and reports reduce liability for the builder because there's full disclosure, Torres added.
Homeowners can purchase the CEHI program for $250-a-year on a 10-year contract or for $275 without.

The investment is well worth it, Torres said. The program consolidates inspections into one and uses one certified person to do the job which cuts costs and saves time for both the owner and the inspector.

Silently harmful

Preventing mold from growing can save families from mold-related health problems that include hay fever-like symptoms, difficulty breathing and for people with immune suppression, infection from molds.

About 37 million Americans suffer from chronic sinusitis, an inflammation of the membranes of the nose and sinus cavity. Most of those cases are caused by fungus, according to a Mayo Clinic report. The clinic is a non-profit medical practice and group.
Mold is a type of fungi. Molds produce and release millions of spores small enough to be air-, water-, or insect-borne. Molds grow best in warm, damp, and humid conditions. Mold spores can survive harsh environmental conditions, such as dry conditions, that do not support normal mold growth. Molds can also produce toxic agents known as mycotoxins.

Mycotoxins can cause disease and death in humans and animals.

People at greatest risk for mold-related health problems are individuals with allergies, asthma, sinusitis, or other respiratory conditions, as well as infants and children, elderly people, pregnant women and people with weakened immune systems, according to the U.S. Department of Labor's Occupational Safety and Health Administration.

Mold has also been linked to Organic Dust Toxic Syndrome, a flu-like illness caused by high levels of exposure to glucans which are small pieces of the cell walls of molds, according to the U.S. Environmental Protection Agency. Glucans can cause inflammatory lung and airway reactions and can affect the immune system when inhaled.

People sensitive to mold may experience symptoms that include a stuffy nose, irritated eyes, wheezing or skin irritation. Mold can also cause allergic reactions.
Molds can be found almost anywhere; they can grow on virtually any substance, providing moisture is present. There are molds that can grow on wood, paper, carpet, and foods, according to the EPA.

The health risk list goes on-and-on.

"Preventing mold growth is like getting an oil change for your car or getting a physical exam," Torres said. "We do it to maintain our cars and keep our health so we can prevent something from happening. We spend at least nine hours a-day in our homes and we never question the air that we breathe or ask how it could affect our families."

Preventative measures

Mold is often caused by condensation of moisture on surfaces because of excess humidity, lack of ventilation, or low temperature. It is also caused by water leakage and infiltration of water from outside sources such as sprinklers.

The EPA suggests ways to prevent mold is to reduce indoor humidity to 30%-60%, vent bathrooms, dryers and other moisture-generating sources to the outside. Use air conditioners and de-humidifiers, increase ventilation and use exhaust fans for cooking, dishwashing and cleaning.

The EPA also suggests that mold is cleaned with detergent and immediately dried. Any wet surfaces or furnishings should also be thoroughly dried within 24-48 hours.

"We live in an environment of mold," Torres said. "Most molds are not visible because they are behind the wall so you have to look anywhere there is moisture; underneath your sink, behind your washer and dryer, air ducts, showers, sinks, toilets, sprinklers and other places. If you have smells or odors, if you notice there are stains, you likely have a moisture, mold and air quality problem."

With the CEHI program, inspectors check all those places and then some. The inspector provides homeowners with an easy-to-read report that includes recommendations for areas of concern. Should environmental testing be required, CEHI inspectors are certified to collect samples.

ESP's CEHI program is endorsed by the National Association for Moisture Management.

Controlling moisture in your home is the most critical factor for preventing mold growth, according to the Centers for Disease Control and Prevention. The center suggests that homeowners clean up mold if found and fix any water problem such as leaks in walls, the roof or plumbing.

Insurance companies paid out about $3 billion for mold related claims in 2002 and the problem is growing. ESP hopes to offset that cost with its inspector program.

The CEHI program ensures that a home maintains a higher value because it is being inspected annually. Those inspections mean mold growth is caught within one year and taken care of.

"Most importantly the consumer can have peace of mind for their family, health and home knowing that there is no type of air quality issue that would be affecting their family in a health related situation," Torres added.

Mastering inspection

ESP Inc. (OCTCBB: EVSP) is the first publicly-traded company established to consolidate the highly-fragmented home inspection industry and to specialize in environmental inspections.

Environmental Service Professionals, Inc. (ESP) through its subsidiaries has offered environmental inspection services that include mold and moisture intrusion since 1994. These services identify issues that can have an acute or chronic negative impact on the indoor air quality of commercial and residential buildings. The Company has established national protocol standards developed in consensus with industry leaders to certify current home and environmental inspectors. The branding of this Program is ESP's Certified Environmental Home Inspector ("CEHI") and will be operated under the Environmental Safeguard Professionals Business Unit, to meet the emerging demands required throughout North America

ESP is the first company of its kind to support a pro-active comprehensive annual inspection called the Mold and Moisture Management Program.

Torres was appointed to the growing company in 2006 after he sold his holdings in a company he Co-Founded and headed; Contempo Homes.

He has more than 25-years of business development experience. Torres lived most of his life in Los Angeles before he moved to Palm Springs in 2001.

Torres participated in the formation of the Joint Employers Group, a professional employer organization in 1996. He oversaw the organizations marketing and sales division and was instrumental in increasing its revenue from $100,000 in 1995 to $65 million in 2001. Then he arranged for the sale of the organization to ITEC, a publicly traded company in the human resources industry.

Since joining ESP, Torres has headed the company's efforts to expand and capture and integrate the fragmented home inspection industry.

So far, ESP has acquired National Professional Services, Allstate Home Inspection and the International Association of Managers in its consolidation endeavor.

ESP's division, Environmental Safeguard Professionals Inc. handles the inspection side of the business, Torres said.

The goal of the CEHI program is to consolidate the existing (approximately 40,000) independent home and environmental inspectors in the United States and approve them to deliver Certified Environmental Home Inspectors (CEHI) services under the ESP brand, he continued.

"We cover 42 states right now, by the end of the year we will cover all 50 states," he said. "ESP will be at $300 million in five years and those are pretty conservative numbers."

ESP expects its CEHI program will generate $915,315 in revenue by the end of the year, up from $7,826 in January.

Inspectors who sign on with ESP will be covered by the company in liability (E&O Insurance) and will work as independent contractors under the ESP name. ESP will also provide group health benefits, centralized scheduling, standardized reports, computerized field systems, database maintenance, bare minimum of paperwork, a certified hygienist staff and national marketing programs.

"We take care of our inspectors," he added. "They use our propriety software, we have a national call center at their disposal and we do all the paperwork. We provide them with all the support structure. It's better than a franchise."

Then, if an inspector wants to retire or leave the business, he has an annuity of homes that he inspected. That book of business, Torres said, is worth a great deal of money.

Meanwhile, ESP launched an ad campaign to create awareness of in-home mold related issues. The campaign will ask one simple question:
"Do you know if your home is healthy for you, your children and your family?"

The campaign includes 1,500 news spots on broadcast and cable networks.

ESP works with realtors, mortgage lenders and insurance companies to offer the CEHI program. But finding these stake holders of a home wasn't an easy task, Torres said.

"It was difficult to identify who the stake holders are," he recalled. "We first had to identify them and then find out the common ground and common issue between them all. We realized it was risk and found out where it was coming from and thus was born the CEHI program. Our job now is to mitigate risk; we are in the business of mitigating risk."

Torres hopes to encourage the mortgage industry to offer an incentive to homebuyers, in the form of a discount, to enroll in the CEHI program. That discount, Torres said, would pay for the cost of a 10-year, $250 CEHI contract.

Offering such an incentive "allows the mortgage banker to carry paper on an asset that stays valuable because it's being maintained by a third party inspector," Torres said.

"All ESP's CEHIs are Certified Moisture Management Professionals [that] protect the insurance, lending, real estate and building industries from liability and the consumer against unhealthy living conditions," said National Association for Moisture Management President Rick LaPierre. "NAMM's 'Partnership for Prevention' with ESP will be one more positive step in preventing, protecting and promoting for all stakeholders in this very important issue."

The next step was to create a software program for CEHI program members that would ask the right questions of the inspector. ESP had to create a software system that would incorporate not just one inspection but all the inspections. With the software, the CEHI program incorporates home, energy and mold inspections into one report. The inspector only has to fill out one form, not three, Torres said.

With all those components put together, ESP is positioned to grow exponentially.

"I see ESP becoming the leader of a national inspection standard process and capturing at least 25% of the market share of inspecting transactions," Torres said. "My goal is for ESP to do 3 million home inspections a year. I know that this is going to catch on because people are becoming more-and-more aware of the issue."

To learn more about ESP Inc. visit www.espusa.net or www.evsp.com.

June 2008 Issue

"Ask Not What Water Can Do For You..."

By Kent Norton, AICP, REA

As we are all painfully aware these days, California's water supply is limited but its population is still growing. Forecasters believe that the state, which currently has 38 million residents, will have 48 million by 2030. When you combine these growth projections with the delta smelt issue, drought conditions along the Colorado River, and increased demand for water from growing states such as Nevada and Arizona, the California water situation appears grim at best.

To help to alleviate some of the pressure, last August Governor Schwarzenegger has called for a statewide 20 percent "across the board" water conservation effort. Further, under terms of a federal court decision, the Department of Water Resources is cutting its initial allocation for water deliveries in 2008. The initial allocation was already expected to be lower because of dry conditions in the Sacramento and San Joaquin regions where the rivers feed water from the Sierra Mountain Range to the Sacramento-San Joaquin Bay-Delta and to State Water Project pumps. The question is - will there be enough?
A recent letter to the Governor, the Southern California Leadership Council, which includes former Governors Deukmejian, Wilson, and Davis, identified "the combinations of the extended drought in the Colorado River Basin, the failure to implement timely and effective improvements in California's water supply infrastructure, and the recent court interference in the Bay-Delta operations" as the primary reasons for the current water crisis. However, the letter indicated, "environmentally benign infrastructure improvements" can help improve the storage, capture and conveyance of water and further emphasized that, "California business leaders are united in their shared perspective that this may be a once in a generation opportunity to resolve differences among stakeholders in the best solution to the Bay-Delta."

This is certainly something to think about for those of us involved with in development in southern California. No one really knows how much water is or will be available to support development. While the state Department of Water Resources reliability report, which gives cities an idea of how much water they can expect to receive through the State Water Project in wet, dry and "average" years, it is simply an average, there are no uniform standards in place for estimating water supplies. The good news is that water districts, entrepreneurs and developers are beginning to understand the need for change and are getting creative. Over a third of residential water in California is consumed outdoors, mainly when homeowners water their lawns. The County of Riverside passed Ordinance 859 which requires water conservation for new home builders. In response, many developers and developments such as The Preserve in Chino and Dos Lagos near Corona have been able to drastically cut potable water use by reducing landscaping, installing drought-tolerant plants, using "smart" irrigation controls, and installing parallel pipe systems to deliver recycled water for outdoor use. It is increasingly clear that conservation and reuse initiatives should be strongly emphasized in development.

June 2008 Issue

- An Optional Upgrade or the New Standard?

By Charissa Farley

It has been an interesting and fascinating study to observe the evolution of exterior hardscapes over the last ten to twenty years and the development of the usage of interlocking pavers. Interlocking paving stone systems have been used since the ancient roads of Rome, throughout Europe, and even in the early United States, ship ballasts were used to pave early streets on the east coast. But for some reason, this method of construction was not often used in the United States until as late as the 1970s. Ten to twenty years ago in the Coachella Valley they were only a few highly visible interlocking paving jobs; downtown Palm Springs, The Gardens at El Paseo, and the most spectacular -- Bighorn Country Club; a project with approximately 7 miles of interlocking pavement streets 24 feet wide.

As marketing strategies were developed to educate potential users of interlocking pavers the market was segmented into commercial and residential uses. The commercial market was and still is approached mainly through design professionals. The interlocking paving industry has a wealth of education programs designed for Architects and Landscape Architects to help provide them with all the information they need to specify pavers confidently. The manufacturers have become quite adept at providing new materials, colors, shapes and textures so that projects can become personalized through their hardscapes.

The residential market is constantly evolving. As in any aspect of design the trends change and pavers are no exception to this. Ten years ago we used to use solid color non-tumbled pavers in the field and a contrasting border. Now with the influx of Old World/Mediterranean architecture, pavers simulate the same look as rock with tumbled and textured tops and variegated colors that range from highlights of golds, beiges, and terra cottas to undertones of browns, greys, and charcoals. Geometric or repetitive patterns which used to be standard are now often replaced with an Old World look which is random and non-linear. The paver manufactures are continually developing new looks mid-century modern, contemporary and the latest architectural trends.

And, just like in fashion, the residential paver trends trickle from the "celebrities" down. The residential market for pavers years ago was primarily in custom homes valued at over a million dollars. But that has changed. Over time builders and developers discovered that their customers wanted the look of million dollar estates as well. It became customary to use pavers at the front entrances of communities - and they discovered - the more elegant the paver - the more elegant the statement about their projects. They also regularly offered pavers as an option, a desired product, and a source of revenue for the design center.

About this time something interesting happened. During the time of the Yangtzee River Dam project in China, when concrete became more scarce, and as a result, the price of concrete increased, and particularly poured-in-place concrete, our region took a unique strategy. As the housing market was booming, we lowered our prices, and increased our volume. Pavers now could beat the price of stamped concrete and now can rival the price of grey concrete. (Additionally, there are now sustainability studies that show that over the lifetime of the hardscape, pavers are less expensive then asphalt.*) It was a self-fulfilling prophecy! When a builder could sell his product faster as a result of using pavers as their hardscape, at a comparable price, it soon became the standard.

It didn't stop there. Pavers as a standard for high-end homes now became accessible for all homes and the perspective of builders and homeowners as to what was standard in a home at different prices ranges has changed significantly. It is not unusual now to see pavers in new homes priced at the half a million dollar price range. KB Homes project in Coachella offered pavers as an option in their homes priced in the $300,000 range.

Due to extensive advertising and marketing, homeowners are also better educated on pavers, and a steady segment of our industry has become individual homeowners who are looking to increase the value of their home, and their curb appeal, by dramatically changing their home's first impression by tearing out their old concrete or asphalt driveway and replacing it with pavers. Pool companies and landscapers now as a standard promote pavers in their projects as well.

And finally, homeowners associations and management companies, especially now, when everyone is concerned about their properties losing value, are actively pursuing ripping out all of their old streets and common areas (which require maintenance as often as every one to two years -- and still look sub-standard) and replacing them with pavers. We have large photographic murals of communities with pavers streets and we challenge those considering doing large scale paver projects to imagine what those photos would look like with asphalt!

And where is the industry headed? There is a new and evolving market that has nothing to do with "pretty pavers" and it is offered as potentially the "least expensive option". As the federal government mandates storm water management issues to counties and municipalities the interlocking pavement industry has introduced a pavement system that collects water underneath the pavement a allows it to percolate into the subsoil or be diverted before it collects pollutants such as oil, cleaning products, pesticides, etc. and thus avoids the necessity of retention tanks or other costly methods of dealing with this issue. Permeable pavements are 'green' and may qualify for LEED credits. Assemblyman Krekornian recently introduced a bill mandating permeable pavements in all hardscapes in some new housing projects.

We are always trying to stay on the forefront of where our industry is heading: paver design as it relates to architectural trends and preferences; color design and integrity; diversity of product within communities; engineering issues in residential street use; education and standards for municipalities, counties, and state agencies; cleaners, sealers and polymeric sands; and even soil stabilization through "green" enzymes for increased compaction, possible efflorescence mitigation, and dust control.

Charissa Farley is the President of Farley Interlocking Paving, a paving installation company, and The Paving Stone Place, a paving stone showroom and distributor. Her company helped create the colors "Bella" by Belgard (used at Griffin Ranch) and "Desert Blend" by Ackerstone. They have won three National Concrete Awards and participated in the hardscape design for the front entries at both the newly remolded Rancho Las Palmas by KSL and Andalucia by The Drummond Company. They are the largest distributor/installer in the Coachella Valley and have installed over a million square feet of pavers including Toscana, Griffin Ranch, Andalucia, Bella Clancy, St Baristo, The Villas in Old Palm Springs, Brava, Legacy, The Hideaway, The Tradition.

June 2008 Issue