Builder Architect Edition

Quality Finishes

2008-03-27T09:00:00Z

Vero-Rialto authentic Italian plaster is renowned for its beauty and quality. Vero Italian plaster is used to cover residential, commercial and industrial buildings giving them a characteristic that goes beyond the everyday painted finish.

Vero-Rialto sets itself apart with top notch customer service and the myriad of authentic Rialto Italian plaster products it has to offer. With more than 400 standard colors Vero products can be used for interior and exterior finishes.

Orange-based Merlex Stucco Inc. is the parent company of Vero-Rialto. Susan VerBurg, president and chief executive officer of Merlex Stucco followed in her father's footsteps when she took over the company in 1992. Under her guidance and vision, Merlex expanded and years later VerBurg founded subsidiary Vero-Rialto. She was inspired with the idea after she took a trip to Italy and fell in love with Italian architecture. She was impressed with the lasting quality and beauty of Italian plaster.

VerBurg scoured Italy looking for a company she could work with to distribute Italian plaster. She took another trip to Italy in 1999 and found Trieste-based the Rialto Co. and merged with them. Orange-based Vero-Rialto was founded in 2001.

"Italian plaster has no sand or cement, its lime is like fine wine - aged for two years before it's even considered for use as plaster," VerBurg said. "So when you look at the plaster it looks like creamy cake batter. Italian plaster lasts, it won't crack and it is environmentally friendly."

Vero plaster covers many exclusive homes in the Shady Canyon community in Newport Coast. Vero plaster also covers homes and developments in the Inland Empire.

"We've been in the Inland Empire for years and we have full-scale service there," VerBurg said. "We've done some work in the Coachella Valley which was very exciting. I want to do more there; it's just a matter of time."

Vero operates light manufacturing facilities and a warehouse in Banning.

Imported from Trieste, Italy, Vero's plaster finishes are made from genuine seasoned slaked lime and fine Carrara marble aggregate.

Those fine ingredients give the plaster a look like no other.

"The possibilities with this plaster are just endless," VerBurg said. "It has a certain sense to it that isn't like any other wall; it has depth, it changes color from sunrise to sunset and it looks alive."

Vero, which means "truth" in Italian, strives to offer the finest products that will last through the ages. Unlike painted finishes which, when scratched, show the base wall surface, Vero Italian plaster products are thicker than paint and more durable.
"Our plaster won't crack even with salt and air; it has the ability to stand the test of time," VerBurg said. "It's like my father said, it's all about 'quality, quality, quality.' "

To find out more about Vero plaster visit www.vero-rialto.com or call Marco Valdez at 714-637-7341.

Rapanos Update

2008-03-29T10:00:00Z

(What this Supreme Court Ruling Means to Your Development)

By Thomas J. McGill, Ph.D.

Will your project require wetlands permits? If so, you may already have heard about Rapanos vs. United States but do you know exactly what it means to your ability to complete your project on time? This Supreme Court decision was created to narrow federal jurisdiction by clarifying what authority the federal government has regarding waters and wetlands of the US.

The Army Corps of Engineers (Corps) declared how they plan to interpret the Rapanos ruling in a joint guidance document they issued a short time ago. Basically, the Corps will continue to maintain jurisdiction over traditional navigable waters of the United States and wetlands adjacent to those waters. The Corps also identified some situations in which Federal Jurisdiction will not be asserted unless a "significant-nexus" to downstream navigable waters can be established. These situations can be grouped into three categories: (1) Non-navigable tributaries that are "not-relatively permanent", including ephemeral drainages and those intermittent streams that lack continuous flow (less than three months of the year); (2) Wetlands adjacent to tributaries that are "not relatively permanent"; and (3) Wetlands that are adjacent to, but "do not directly abut a relatively permanent" non-navigable waterway.

What does this all really mean?

Features that were traditionally considered jurisdictional are still jurisdictional.
Features that have water in them at least three months of the year and connect to a jurisdictional feature are also considered jurisdictional.
Other features won't be jurisdictional unless a "significant nexus" can be established to traditional jurisdictional waters.

Okay, so what is a Significant Nexus?

Significant nexus looks at the following parameters of a feature to determine if a water is jurisdictional. If they are present, a significant nexus exists.

Average rainfall, flow characteristics and watershed size;
Distance of the tributary to the traditionally navigable water;
Channel slope and dimensions; and
Capacity or potential of a channel to carry pollutants, nutrients, organic carbon, and sediment.

Does the Significant Nexus Rule reduce or increase the Corps jurisdiction?
While it is not yet known how broad the Corp's discretion is in ruling on significant nexus determinations, it appears that most ephemeral drainages will remain jurisdictional. However, "swales or erosional features" (such as gullies or small washes) or roadside ditches that lack permanent flow will no longer be jurisdictional.

Significant Nexus Form

Before submitting jurisdictional delineations, a 7-page "Jurisdictional Determination Form" developed by the Corps must be filled out to document that a feature is/is not jurisdictional. The EPA then will oversee the Corps Jurisdictional Determinations with the intent of providing consistency.

Until the Corps finalizes and releases some of its reviews, it is difficult to know with certainty if the Rapanos decision has served to effectively narrow federal jurisdiction - its original intent. I will be keeping an eye on it and suggest you do, as well. If you have questions regarding Rapanos or would like a specific topic addressed in a future column, please feel free to contact me at tmcgill@brandman.com.

Constructing a Vision

2008-03-30T11:00:00Z

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The road to success

By Carol Park

As a young man Mario Gonzales grabbed hold of his vision to become a developer and never let go. Years of hard work and a natural curiosity about construction paved the way to success for Gonzales.

As president and chief executive officer of Cathedral City-based GHA Communities, Gonzales develops affordable and luxury homes with quality and style. GHA is the largest privately-owned home building company in the Coachella Valley.

Born and raised in Chicago, Gonzales is the middle child of five siblings. He was an active young man and was an avid hockey player and wrestler. An entrepreneur at heart, he spent his time working odd jobs, sometimes selling flowers on street corners in downtown Chicago and sometimes he shoveled snow for a few extra bucks.

"I was ambitious to work," Gonzales said. "I was always the entrepreneur in that respect."

When he was 15 years old he took a trip to California with his family and spent some time in Palm Springs visiting friends. That trip wooed the Gonzales family away from Chicago and in 1978, his family moved to Palm Springs. He was 16 years old.

Bella Clancy Estate Villas, Rancho Mirage, CA

"My parents wanted to get out of the cold; they were tired of it," Gonzales said. "So we moved to California and I went to Palm Springs High School during my sophomore year. Back home, I was basically confined to a building at school, but here there was a wide open campus and a lot of freedom and blonde headed girls. I had a lot of fun."

But fun would soon turn into a desire to work. Motivated by the growing wealth and opportunity in Palm Springs, Gonzales decided to drop out of high school and set his sights on earning his own living.

"After I dropped out of high school I went to work," he said. "I wanted to earn my own money and get my own car. So I entered into a work program and let the athletic side of my life go to the wayside. I'd work a lot. I started out as a trench ditcher for a friend's plumbing contractor. I'd earn $50 to dig a trench so I started giving friends $25 to dig a trench while I dug my own."

Eager to learn and work, Gonzales didn't mind the physical labor involved with construction. He learned how to frame and learned about concrete while he worked for a local developer and later for a local concrete firm.

Gonzales learned the concrete business while he worked for cement contractor Francis Markley Corp. in the Coachella Valley. At the time, Francis Markley did a lot of cement work for PGA West. While he worked for Francis Markley he got to see the development process and how construction worked.

"That's how I got into the construction industry," Gonzales said. "I always had an interest in the entire process of building and eventually I got a taste of the construction trade when I worked with general contractor Tony Bonanno. He treated me like a son and I got to play with dry wall and electrical and I got to use different tools and learned the process of general contracting."

Then one day he met John Wessman, a commercial and residential developer that inspired Gonzales. Wessman is Gonzales' mentor.

"He did a lot of cool stuff, a lot of detailed and fun stuff," Gonzales said.
Years later, the two forged a business alliance, Wessman Gonzales. Over the years, the two have built many homes in the Coachella Valley.

When Gonzales was 19 he built his first house on Chimayo Road in Thousand Palms for a gentleman he met while working.

"Building that home forced me to learn the process of construction; getting a blue print and having it drafted in a form acceptable to the city and generally putting the pieces together," Gonzales said.

Bella Clancy pool

Then around 1980, Gonzales was laid off from Francis Markley Corp. But with his experience he had the foundation he needed to start on his own. That's when Gonzales decided he would go into business for himself. He obtained his general contractor's license in 1984. He started cementing patios and driveways with a foundation here and there. Essentially, he became competition for Francis Markley Corp. and ended up one of the top five concrete contractors in the mid-1980s. Gonzales cemented more than 175 tennis courts while he worked as a cement contractor.

As Gonzales' business grew he crossed paths with Richard Morreale, a builder who did custom homes.

"I got a really good lesson in home building while I was a concrete contractor from him," Gonzales said. "He was a hands-on developer and he built the 'Bella Monte' community in Palm Springs. That was my first knowledge of how you can order cool things from places like Mexico and add finer things like fountains to homes. He and I became friends. I learned a lot from him."

Eventually, Gonzales was tapped to become vice president of Palm Springs-based Six Kids Development Construction in 1985. Together, they built condo projects and triplexes.

Escala home, Rancho Mirage, CA

Then Gonzales phased out of Six Kids Development and in 1988 he formed Mario Gonzales Enterprises Inc. Under that name he phased out of doing third-party concrete work and began building his own projects and cementing them himself.

After a few years and after working with the Starkey Co., Gonzales bought a building in Cathedral City where he set up shop and maintained his business.

"It was quiet in the early 90s and then in 1996 I started GHA Enterprises Inc.," he said. "Originally, it stood for Gonzales Herrera and Associates, but I bought them out in 2000 and changed the name to Gonzales Homes and Associates."

Today, Gonzales does business under the GHA Communities name and has built multiple custom homes and housing tracts. GHA homes are priced from $300,000 to more than $2 million.

GHA developments include the Las Colinas development in Indio, the 169-home Cimmaron Cove community in Cathedral City, the 59-home Foxdale community in Desert Hot Springs and the 57-home Escala community in Rancho Mirage.

More bang for the buck

An experienced builder, Gonzales knows that homes are built with a standard. But for Gonzales that wasn't enough. He wanted to raise the bar and add classier elements to the homes he built. He puts more than just thought into each of his developments. Gonzales caters to the unique, artistic style of the Coachella Valley. To help accomplish that, he adds flare to his homes by bringing in architects from Orange County or out of state.

"Design is important for me," Gonzales said. "We don't use the same product, it's always different. Part of our big thing is craftsmanship, reliability and service, it's our motto. We like things that look like they belong, we're not afraid to use fun colors. We have a good reputation and I think we've done our job, from office to design to the walk through and the buying process."

MJ Knitter, president and chief executive officer of Irvine-based Knitter & Associates Inc. knows firsthand that GHA Communities goes above and beyond the standard.

"We did projects with GHA that were affordable homes but they were still built with nice amenities and countertops," Knitter said. "I think Mario is used to doing custom homes so when it comes to production homes he finds a way to work the finer details into them."

Knitter has worked with Gonzales for years and has watched him grow from a one man operation to a successful builder.

Escala pool

"We've enjoyed the relationship we've had with Mario and I wish him continued success," Knitter said.

Although Gonzales has been successful, it wasn't an easy road. He had to learn and develop and execute his projects well in order to earn a good reputation that would allow him to survive in the construction industry.

"The ability to execute properly is important," Gonzales said. "A lot of people can plan things and plans are important to the recipe, but you got to be able to cook it. Execution is important."

Building with class

Although Gonzales has built hundreds of homes and multiple developments, he has one particular favorite he's working on right now; the Campanile community in Cathedral City.

The gated Campanile community is 50% complete and will consist of 285 homes in six neighborhoods along with some commercial space. The pedestrian friendly community will have three villages with floor plans between 1,982 square feet up to 3,370 square feet. The villages will be designed with Spanish, bungalow and traditional styles. Campanile will also feature a large active common area that will include a large pool and spa, a recreation building, outdoor fireplace area, a small play area for children, public restrooms and large bell towers.

Each of the three Campanile villages will feature a landscaped Paseo area complete with a gazebo, benches or small barbecue areas.

Also planned for the Campanile development is 4.5-acres of community commercial buildings. Those buildings will house a day care facility, a small community store, a dry cleaner, video stores and more.

"I'm pretty proud of Campanile, it's probably one of the first hybrid urbanism projects in the Coachella Valley that's on the plate or in development," Gonzales said. "Its concept is loaded with product. This was an aggressive move to introduce this type of project and it's been successful."

Gonzales expects the Campanile project to be completed in a couple of years. Had it not been for the downturn in the economy and the subprime mortgage meltdown, Campanile would have been 90% completed, he said.

So for now, Gonzales plans to ride out the current housing market crisis and prepare for the next wave of development.

"Right now, we're in acquisition mode, we're looking to position ourselves with property, people and lenders so that we can be ready when the cycle comes back," he said.
Despite the economic slowdown, Gonzales will continue adding to his large and ever growing portfolio which includes luxury homes, villas and condominiums. He has developed multiple projects including the Monterey Estates in Rancho Mirage and the Montage Santa Rosa in Indio.

St. Baristo luxury townhomes, Palm Springs, CA

"I like the quaintness and feel of Montage. It was a step up and that development took me to a higher level where homes were being sold for more than $1 million. It was like going from a low-end Mercedes Benz to a high level Mercedes," Gonzales joked.

While Gonzales welcomes success he also knows that growth can be a challenge. While growing from a 100 home developer to a 500 home developer at the company's peak, he found it difficult to adjust to the growth. Gonzales overcame that obstacle after he surrounded himself with good people who helped him through the growing pains.

"My philosophy is to build a well greased machine and having good people around makes that easier," he said. "It's not about the money; it's the people that make the business."

Today Gonzales stays vigilant about current designs and products so that he can stay competitive and meet and overcome the challenges that businesses face every day. As part of that vigilance, Gonzales plans to start tapping into the "green" movement, he said.

Agua Dulce home, Desert Hot Springs, CA

Reaching out

While Gonzales is a busy man, he still finds time to give back to the community. He recently completed work with Operation Safe House which started in Riverside and now has reach in Thousand Palms.

Operation Safe house helps runaway teenage girls.

Gonzales is also on the construction facilities board for his daughter's school. He also donated 100 bikes to the YMCA last year and helped feed the poor. Gonzales also sponsors local soccer and football teams.

"It's important to participate in the community and give back," he said. "I think we're going to start a charity or something soon that will help the community."

Gonzales has a son and a daughter and is engaged. He plans to get married soon. Gonzales also plans to keep running GHA Communities. His son, Alexander is following in his father's footsteps. Alexander heads Gonzales Construction. Mario also has high hopes for his 9-year-old daughter.

"My daughter is unbelievable," he said. "She'll probably take this company by the horns someday. She wants to work in the office with me and go out to projects. She's an amazingly sharp kid."

Man of the hour

His work in the community and his quality developments and superb customer service garnered him the title of Builder of the Year 2007. Gonzales was honored with the award by the Building Industry Association, Desert Chapter.

"I'm very lucky to be part of the American dream," Gonzales said.

The Villages of Campanile, Cathedral City, CA

LEEDing the way

2008-04-26T07:00:00Z

By Carol Park

Following a tradition of excellence and innovation, Orange-based Merlex Stucco Inc. is proud to present Poly Prep green, its newest product in a line of quality adhesives and coatings.

Materials used in Poly Prep green are 90 percent extracted within 100 miles of Orange. That makes the adhesive qualified for LEED credit. Poly Prep is also made with 10 percent recycled content.

"I knew that going green was going to be the next big thing in our industry and having renewable and recyclable resources was going to be important," said Susan VerBurg, Merlex Stucco president and chief executive officer. "We're working very hard on building all of our products into green products."

Poly Prep is a coating and adhesive for EPS shapes. When those shapes are coated with Poly Prep, they have a higher strength and a high bond. Poly Prep is versatile and can be applied by hand or machine. The coating comes in one bag and all that needs to be added is water.

"It's easy to use," VerBurg said.

Although Poly Prep is used mainly as a coating and adhesive, it can be used as a base coat for stucco or lime plasters to ensure a perfect finish.

"It's not the normal thing to do, but it has been done," VerBurg said. "Poly Prep can also be used as another coat to apply Merlex Stucco's Santa Barbara Finish; it gives a better look with the smooth coat stucco."

Poly Prep can be used in tilt up buildings, precast panels and concrete blocks. The adhesive will be the first of many green products Merlex plans to offer in the future.
"We've always been a leader in introducing new colors and new products and keeping our company up-to-date and always looking for new ways and new products to enhance our industry," VerBurg said. "We're dedicated to that."

Merlex is one of the largest suppliers of stucco, waterproofing and restoration materials in Southern California. Merlex also boasts one of the finest color labs in the industry. Merlex can match any color as long as there is a physical sample.

The company was founded in 1963 by Susan's father, Merle VerBurg.

Not only has Susan followed in her father's footsteps, she expanded the company in 2001 when she founded subsidiary Vero-Rialto. Vero provides the finest Venetian plaster products.

Today, Merlex Stucco operates light manufacturing facilities and a warehouse in Banning and Pacoima as well as its main offices in Orange.

"We are very committed to our products and services," VerBurg said. "We are always looking for smarter, better ways to do business but not at the expense of the quality of our products."

To find out more about Poly Prep green visit www.merlex.com or call Nick Brown at 714-637-1700. Or you can e-mail Merlex Stucco at service@merlex.com.

Green in the Desert

2008-04-27T08:00:00Z

By Justin Dunning

As energy prices continue to rise and concerns about global climate change continue to mount, the builders, utilities, and public officials of Riverside and San Bernardino counties are coming together to develop sensible green building programs that balance saving resources and concerns about housing affordability. During 2007, the Imperial Irrigation District, the County of San Bernardino, the cities of Riverside and Corona, and more all launched green building programs making the Inland Empire a model for collaboration between local government and the building industry.

While many people have heard of green building, there is often confusion about what exactly being "green" means. Over the past few years, three green building programs have come to the forefront in California: California Green Builder, Green Point Rated, and LEED for Homes. The programs share many common elements and all provide builders a framework to work within while building green. Of the three programs, California Green Builder has had its largest success with single family production homes, while the Green Point Rated system has enrolled more multifamily and custom home projects. The LEED for Homes program came out of its pilot phase in late 2007, and has positioned itself as the most aggressive and involved of the programs.

While building green often adds to the cost of building a home, there is some help available. All of the above programs require homes to be built 15% above current Title 24 energy efficiency standards. This is the same level of energy efficiency required to qualify for a $500 per home incentive through Southern California Edison's California New Homes Program (CANHP.) For builders in the Imperial Irrigation District (IID) there is an even larger incentive possible. In 2007, IID partnered with California Green Builder to provide an incentive for builders going green. Builders who are certified by California Green Builder can receive up to $1700 per home from the utility. The Hoffman Company's Martana at Polo Estates project, located in Indio, is the first project to qualify for this program. The BIA of the Desert played a key role in bringing California Green Builder and IID together, and their actions signal a growing commitment of builders in the area towards building green.

Beyond the utilities, there are several jurisdictions in the inland empire that are offering non-monetary incentives for builders who go green. On June 11, the city of Riverside passed a historic ordinance providing incentives for builders participating in California Green Builder program. On August 27, the County of San Bernardino launched a similar program. The City of Corona has also adopted a voluntary program and several other cities have passed resolutions in support of green building and are considering adopting green programs as well. Much like the situation with IID, these programs are the result of the building industry being pro-active and engaging the local jurisdictions. The BIA of Riverside and the Baldy View BIA were integral to the passage of the City of Riverside and County of San Bernardino ordinances, respectively.

What, then, is a non-monetary incentive? In the case of the Riverside program, the city offers the following: early release of electric meters, priority field inspections, guaranteed plan check timelines, priority overtime inspections, and fast tracked electric and design, and a fast tracked water timeline. Many of these incentives are ways to move the "green" builder to the front of the line. They incentives do not add any financial burden to the city, but at the same time can save the builder valuable days during the construction process. The county of San Bernardino and City of Corona programs are very similar.

The overall awareness of green has grown tremendously over the past two years. Incentive programs like the ones mentioned above are key to allow builders to deliver resource saving houses that the average buyer can still afford. Whether they are interested in saving the environment or just saving on the utility bill, the number of homebuyers interested in green is growing. The builders, jurisdictions, and utilities of the Inland Empire are working together to ensure that the demand for green is met.

Green Complexes

2008-04-28T09:00:00Z

Thomas J. McGill, Ph.D.

Much has been written recently about the incorporation of green building standards into new development and the potential for "green" laws and ordinances that affect everything from the use of internal climate controls to the types of plants used for landscaping. I have recently spoken to a number of developers who - particularly in the current economic climate - are wondering how they will be able to meet payroll while becoming green.

The good news is Southern California isn't Northern California. Unlike San Francisco where the city's goal is to reduce their CO2 footprint by over 50 percent, thus impacting every business from paint shops to gravel quarries to residential and commercial developers, Southern California cities seem to be more in touch with local economic realities, while still encouraging sustainable development in line with current and pending legislation.

The bad news is that these laws are getting more difficult to meet. Clearly, no one would like to see the return of "smog days," but how does someone realistically comply? Just considering the following simple steps will help you go a long ways towards integrating green concepts into your land planning decisions.

The first way is through preservation of the native plant communities on a proposed project site, where possible. This is most easily done by working with an arborist or biologist who can identify those natural environmental features which can be incorporated into your development footprint. These features should be chosen to enhance the visual appearance of your site and perhaps provide some amenities for the end user. Whereas the traditional approach is to design to develop or clear the entire proposed project site, then bring in ornamental vegetation and artificial water features, considering what is already in place can save developers considerable money and create ecologically-friendly, aesthetically-pleasing and, yes, appropriately green developed site.

Next, within the actual construction phase, substantial savings may be realized through the reuse of demolition materials for things such as the base of parking lots, using permeable paving materials to lessen water runoff, promoting the use of soil for natural filtration, and eliminating paints, stains and finishes that contain "volatile organic compounds" (VOCs) that excrete the gases that create smog and pollute indoor air. Numerous products are available on the market.

Southern California may never see construction like San Francisco's Federal Building which intentionally lacks both heating and air conditioning, has elevators that stop on every third floor so employees must traverse at least one flight of stairs, and has situated their cafeteria across the street to encourage walking, but, honestly, would we really want to? Incorporating principles of sustainability and environmental stewardship into your next project (such as encouraging your architect to design building placement that minimizes the impact the sun will make to lessen reliance on the artificial air-conditioning system that - especially here in the desert - you are still going to want to use) will result in a green project that you - and your accountant - can be proud of.

From Golden to Green

2008-04-29T10:00:00Z

By Lou Ochoa

California is rapidly leaving behind its "Golden State" image and quickly going green. While "green" usually describes money, envy or even a political party, the word is now associated with the environment and the heightened awareness that is transforming the way we live our lives.

It is no surprise that California is on the forefront of this new shift and perhaps nowhere is this more evident than in the homebuilding industry in Riverside County. For decades, California's homebuilders have pushed for increased energy efficiency requirements and built generations worth of new homes that are dramatically more environmentally friendly than their predecessors.

However, the 'greening' hasn't stopped there. Three years ago, homebuilders, working with engineers, scientists and conservation specialists, created the California Green Builder Program (CGB) - now the most successful green building program in the state. To date, over 6,781 new CGB certified homes are scheduled to be built, with 1,431 already completed. These homes alone eliminate over 270,000 pounds of greenhouse gases and nearly 30 million gallons of water annually.

CGB is officially recognized as an environmentally-friendly green building design program by California Public Utilities Commission, the California Energy Commission and California League of Cities. The program's rigorous standards require participating new homes to exceed California's already strict energy efficiency standards by 15 percent and divert at least 50 percent of construction waste through recycling. It also requires that wood products be harvested from sustainable forests and significant water conservation.

In the Inland Empire water is the most precious natural resource. Like a farmer's crop, there must be water available for new communities to grow strong. Recognizing this, Riverside County BIA (BIA) became one of the first advocates for Metropolitan Water District's California Friendly water conservation program. The countywide adoption of California Green Builder bolsters current water conservations efforts and helps ensure dramatic water savings in new communities. Under CGB guidelines each new home must include innovative plumbing systems and new designs for landscaping and irrigation or participate in the California Friendly conservation program. Each new green built home must save a minimum of 20,000 gallons of water per home per year.

In addition to producing quantifiable results, CGB was designed to ensure that implementation by cities and homebuilders is seamless - a key to keeping home prices low and program participation high. Getting more homebuilders and cities to adopt CGB has been a top priority for the BIA. According to the Western Riverside Council of Governments (WRCOG), more than 400,000 new homes are needed to meet the population growth over the next fifteen years. BIA believes this is an excellent opportunity for the homebuilding industry and local government to work together to promote green building practices without sacrificing the dream of homeownership by driving up new home costs.

Together, we're already achieving success. Mayor Ron Loveridge and the City of Riverside recently became the first city in the state to create an incentive-based CGB program. In June, the city council adopted the program and provided participating homebuilders with guaranteed processing timelines, overtime inspections and priority electrical design. These incentives will expedite the process of building a green home, saving time and keeping CGB-built homes competitively priced.

Success of CGB is rooted in participation. Riverside's action was the first step in the greening of Riverside County, but it's important to adopt common, incentive-based standards throughout the county that will allow homebuilders to offer environmentally friendly homes with quality amenities at the most reasonable cost. A uniform program makes the application of green standards faster and broader because it keeps the cost of construction and design lower than under multiple standards. As a next step, BIA is now working with WRCOG and many local governments to adopt CGB as the standard for green building in Riverside County to ensure that Riverside is joined by its neighbors in promoting green building.

As the growth of Riverside County continues, the adoption of CGB by local governments will help ensure that the progress we've made together to protect the environment will continue. Through CGB, Riverside County homebuilders are leading the way in greening of our Golden State.

Lou Ochoa is the immediate past president of the Building Industry Association of Southern California's Riverside Chapter.

LEEDing the way in green practices

2008-04-30T11:00:00Z

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Sustainable design

By Carol Park

The road to success starts with a plan, and California-based WWCOT Architects began that journey when it first started as a small architecture firm in 1964.

Since its humble beginnings, WWCOT Architects has brought innovation, versatility and quality to the design industry.

Today, the 160-person firm has offices in Riverside, Palm Springs, Santa Monica, Modesto and Shanghai, China.

The Beacon Building at Helms in Culver City, CA, was renovated with the environment in mind and has several sustainable features, including a photovoltaic system that supplies energy from sunlight while shading cars in the parking lot.

Leaders in the sustainable design movement, the growing firm will open a two-story, 20,000-square-foot LEED certified office building in Palm Springs by the end of the year.
LEED stands for Leadership in Energy and Environmental Design. The certification is awarded by the U.S. Green Building Council. When a building is LEED certified it means that the building has been verified, by a third-party, as an environmentally responsible, profitable and healthy place to live or work.

LEED certification comes in different levels; platinum, gold or silver.

"The office will be the first LEED certified building in Palm Springs," said Chris Mills, AIA. "Sustainability is a hot button issue right now and it is something that we all need to realize. We have to do it; we need to do it because it's the right thing to do for the environment and for everyone on the Earth and it's got to start somewhere."

WWCOT designs a variety of public building types, including K-12 schools, such as Coral Mountain Academy in Coachella, CA.

Mills is a partner at WWCOT. He is a 46-year resident of Palm Springs and serves on the city council.

Mills' family roots in Palm Springs reach back to 1933 when his grandparents moved to the area. His mother went to high school in the city and Mills would have been born there, but there was no hospital at the time. He was born in Loma Linda.

After high school, Mills left the Inland Empire and went to school in Arizona where he earned his degree in architecture. He always knew he wanted to be an architect, even as a young boy.

"Ever since I was in third grade, I always wanted to be one," he said. "I don't know why, I always drew houses and buildings so I never had a doubt in my mind."

Mills once owned his own architectural firm in Palm Springs. But after years in the industry, Mills decided he wanted to merge with a larger firm. In May 2006, he achieved that goal and merged with WWCOT Architects and created WWCOT | Mills Architects, the Palm Springs office of the larger architecture firm.

The Indio Teen Center, one of several WWCOT-designed public buildings in California's Coachella Valley, provides a cohesive design that contributes to the prominence of city's public services program.

"I was a one-architect office with six employees and I was responsible for everything," Mills recalled. "So I was looking for an opportunity to merge. I wanted to connect with a firm that was a strong design-oriented firm and a firm that I felt could meld with me and my staff. I also felt that the Coachella Valley was growing and that there really needed to be a larger and stronger firm here that would be able to do larger more intricate and involved projects. The fact that WWCOT had an office out here at the time made it work out even better."

"We were competition to each other, but we believed in the same practices and had the same goals," said Pamela Touschner, FAIA, a partner of WWCOT. "Quite frankly, it just made sense to pool our resources and merge."

Touschner is the managing partner for the Palm Springs office. She joined WWCOT in 1993 and worked at the Santa Monica office. Touschner later moved to Palm Desert to be with her husband and to open the firm's Riverside office.

As a young girl, Touschner was discouraged in her endeavors to become an architect. But she persevered and earned a degree in architecture from Temple University in Philadelphia in 1985.

"I was told that I couldn't be an architect because I'm a girl," she said. "Well, I took up the challenge to prove a point and it turned out that I really liked it. I was lucky in that respect."

Touschner's passion, confidence and drive earned her respect in the architecture world. She is the immediate past president of the American Institute of Architects' California Council and currently serves as a regional director on the National AIA Board. She is chair of the Riverside County Regional Medical Center Foundation and co-chair of the ACE Mentoring Program in the Coachella Valley. That program provides opportunities for high school students to learn about design and construction careers.

"Hard work and confidence in what you are doing is important," she said. "That will help in shaping your career and your life."

Innovative and creative designs

WWCOT designs include public buildings, corporate interiors, master planning, residential and commercial developments, healthcare buildings and designs for companies in China.

WWCOT participates in competitions to design buildings for Chinese developers, but the firm's main business is in the United States. WWCOT has designed several projects throughout the Coachella Valley, including the recently completed 211-unit Palermo multifamily development and the 22-unit Palomino condominium project in Palm Springs.

With the desert as a stage, Mills designed Palermo to meld with the natural setting.

"Buildings are designed to fit the location," Mills said. "I don't like lines that separate or buildings that have a feeling of indoor and outdoor, they have to blend. I don't like to put a window in the wall; I like the wall to be the window."

Palermo is a resort-style gated community developed by Palm Springs-based developer Enterprise California.

A gated community of townhomes and villas, Palermo boasts a beautiful view of the majestic San Jacinto Mountains as a backdrop. The homes range from 1,275 square feet to 1,375 square feet and feature rich colors and textures of the desert with lush lawns and resort-style amenities.

The development is located at North Indian Canyon Drive and East San Rafael Road.
WWCOT prides itself on its commitment to excellence in design, economic discipline and quality control. The firm works closely with its clients to understand their needs and develops architecture that is innovative, on-time and on-budget.

"As an architect, I feel that I owe the client something special, something that fits their needs not just from a functional standpoint but from an aesthetic one too," Mills said. "WWCOT believes that architecture is art and no two [buildings] should be the same or they are not special."

Green practices

Dennis Tanida, AIA, is managing partner of the Riverside office of WWCOT. He is also the president of the American Institute of Architects' Inland Empire chapter and a board member of the U.S. Green Building Council.

The 211-unit Palermo multifamily development in Palm Springs, CA, was designed to blend the indoor and outdoor and capitalize on views of the San Jacinto Mountains.

With his experience, knowledge and understanding of green building, Tanida leads the firm's sustainable design efforts.

"I've been interested in sustainable design for 30 years," he said. "Back in high school I designed a house using solar energy for my physics class."

Since then, Tanida graduated from the University of Southern California with a degree in architecture. He went on to work at Welton Becket Inc., now Ellerbe Becket, and helped in the design of the Ronald Reagan State office building in downtown Los Angeles. That building was designed to reduce energy costs.

WWCOT's new office building in Palm Springs, the Ramon Office Building, is also designed to be sustainable, Tanida said. One of the building's green components will be its parking lot. The lot is being built with recycled asphalt from a nearby road. The building is also one of nearly a dozen LEED certified projects WWCOT is designing, Tanida said. Most of those projects will be LEED silver certified with one being gold.

As a leader in the sustainable design movement, WWCOT has designed the Ramon Office Building, Palm Springs' first LEED-certified office building and the new location for WWCOT | Mills, the firm's local office.

As part of an effort to practice sustainability, Tanida chairs the firm's sustainable task force.

"Two members from each office collectively represent WWCOT's sustainable task force. We meet regularly to discuss issues of sustainability and to talk about being stewards of sustainable design," he said. "We want all of our offices to be green so we are developing resources and reference material that the entire firm can use."

WWCOT's Riverside office is practicing a green lifestyle. After Tanida took a trip to Japan and experienced their green lifestyle, he brought that mindset back to Riverside. Now employees at the office recycle and are conscious of the environment.

"Sustainability is a lifestyle change; it's very hard for a lot of people to live green. We live in such a throwaway society where things are packaged in crazy ways. We waste so much and don't recycle," Tanida said. "Even though we are bombarded by the media about green living, people still don't get it. So it's part of our mission to educate people. That's why I'm on the U.S. Green Building Council. Their mission is to educate as well."

Sustainable design means more than just saving energy, it means using recycled materials that aren't trucked in from hundreds of miles away. It also means buildings are constructed with the environment in-mind. That means the building uses natural resources such as sunlight.

"People talk about reducing our carbon footprint but what does that mean? It can be confusing, so what we try to do at WWCOT is design sustainable buildings," Tanida said. "We are cognizant of what materials are being used because sustainable design isn't all about energy. It's about creating an environment that is healthy. It may cost a little more, but the return on investment is greater; people will be happier and healthier, which results in higher productivity. It's not about the bottom line anymore, it's about the triple bottom line; economics, the environment and people."

"Dennis will help lead the firm into a green future, and his interest and passion for sustainability is an asset to WWCOT," Touschner said.

Touschner and Tanida worked together long before they met at WWCOT. The two once worked at Welton Becket when they were fresh out of college. Touschner left Welton Becket before Tanida and the two lost touch until they met again at a convention in Philadelphia years later.

"We talked and got reacquainted," Tanida said. "I realized she was with WWCOT. Pam's husband went to school with me at USC and we were friends, so we were somewhat connected. A couple of years later, I thought about changing offices. It turned out WWCOT needed someone for the Riverside office. Pam and I got together and talked. I joined the firm in 2001."

Tanida is no stranger to the building industry. He grew up working with his father in construction. The exposure piqued his curiosity about design. He pursued that interest with fervor and ended up with a degree in architecture.

One of the green design components of the Ramon Office Building is its parking lot, which will be built using asphalt recycled from a nearby road.

The founders

Chester A. Widom, FAIA, George Wein, AIA, and Adrian Cohen, FAIA, created the name of WWCOT Architects when they acquired O'Leary Terasawa in 1998.

The firm's history reaches back to 1964 when Widom opened shop as a small architecture firm specializing in construction and multifamily and single-family housing design.
Founding partner Widom is well-known as a premiere architect. For more than 40 years, he has designed and created buildings that have captured the imagination and inspired a new generation of architects. Widom was heavily involved in the design of the Sierra Tower in Los Angeles.

Apart from his duties at the firm, Widom currently serves on the executive committee of the American Institute of Architects College of Fellows.

Adrian Cohen is managing partner of WWCOT. He has more than 33 years of experience in the industry. Cohen and Widom's vision and drive are the foundations of the firm's continued success.

Cohen has served as president of the Guardians for the Jewish Home for the Aging. He has also held various positions with the AIA California Council and AIA Los Angeles Chapter.

With Widom and Cohen at the helm and with the support of their associates and partners including Tanida, Touschner and Mills, the firm's momentum and growth has no end in sight.

WWCOT plans to continue its push in sustainable design and hopes to be at the forefront as a leader and a teacher.

"I would hope we would become a leader in good and sustainable design," Tanida said. "Hopefully, with research and [development] on the theory of regenerative design we can do this work and teach others how do develop those types of projects. It's hard to predict what the next 10 years will bring but I'm open to the future; let it come."

WWCOT designed the Valley Bomb Squad and Training Facility in Granada Hills, CA, to become a LEED-certified facility, representing Los Angeles County's dedication to incorporating sustainable features in its public buildings.

A Lasting Relationship

2008-05-29T10:00:00Z

By David Quinn

Exterior pavements - driveways, walks and patios- are often a last thought to the Home Builder and yet they are one of the first items viewed by a potential Home Buyer. As a paving stone manufacturer for more than 20 years in Southern California, Angelus Block Co., Inc. is here to help Home Builders improve that view. Home Builders looking to differentiate their projects, add value, character, curb appeal and offer a 'green' solution, should look at Angelus paving stones.

Using Angelus paving stones allows a Home Builder to extend the living space outside the walls of the home adding function and value. These outdoor spaces can easily be defined by shape, pattern, color or texture with very little added costs versus other paving methods. They can also bring continuity to a site and enhance the design of the home or development. A Tuscan designed project for example would lose its character with gray concrete but with many of the paving stone products offered by Angelus the look and ambiance of the design can be retained.

One of those products is Angelus' new Slate Stone®. Achieving the appearance of natural slate in texture and color, the Slate Stone® line can be installed at a considerable savings compared to natural stone. Available in four different sizes the Slate Stone® product can be installed in several layouts including a random look which is very popular in today's market. These new shapes add to an extensive collection of shapes and colors and expand Angelus' line of tumbled products that offer a variety of natural stone looks.

Angelus not only produces products that mimic nature they are producing 'green' or environmentally friendly products. The SF-Rima® is designed for use in a permeable paver application letting rainwater flow through the pavement and into the ground. A permeable paving stone system also increases water quality by reducing pollutants and lowering water temperature in storm-water that eventually flows into rivers and the ocean.

In addition to manufacturing the SF-Rima® permeable paving stone, Angelus' has began using recycled materials in their manufacturing process. Using recycled materials in their line of paving stones is the start as Angelus' looks at expanding its use into their block products. Angelus' even introduced their newest Paving Stone Catalog and Architectural Binder using paper with 30% post consumer waste and are recyclable.

By creating durable and long lasting products Angelus continues to be a leader in Southern California. Many of the first pavers manufactured by Angelus' are still in use today which is why Angelus Paving Stones is introducing their new tagline "A lasting relationship in every step". Further affirming their commitment in the paving stone market, Angelus' newest paving stone facility in Oxnard is scheduled to start production in 2008. This new facility will allow Angelus to better serve the Los Angeles, Ventura, Santa Barbara and San Luis Obispo counties.

To find out more about the benefits of Angelus Paving Stones, visit angeluspavingstones.com or call (951) 328-9115.

Rilington Communities

2008-05-30T11:00:00Z

Larger Image

A Solid foundation

By Carol Park

Cathedral City-based Rilington Communities founder and CEO Mickie Riley got into the construction business despite his father's advice to stay out of it.

Focused and driven, Riley knew he wanted to own a business. But his father, a house painter and carpenter by trade, advised him to stay out of the construction industry.
So Riley moved to San Diego from Northern California in 1971 and worked at a restaurant hoping he would learn the culinary craft and eventually open his own eatery.

"When I came to San Diego, I thought about owning a restaurant business but I soon realized that wasn't why I moved to paradise," Riley recalled. "I didn't want to be locked in a restaurant all day. I was making more money on the side pouring concrete and building patios than I was at the restaurant."

Brighton Ridge -- San Marcos, CA

So Riley quit the restaurant business and went to work for a construction company despite his father's advice. Riley learned the ropes of the construction industry while he worked for three companies between 1972 and 1989.

"I went through all aspects of the construction business," he said. "I went from a framer to an equipment operator, from a customer representative to a superintendent and from a project manager to the point where my last position was as a Senior Vice President for a company in Santa Monica."

Riley struck out on his own and founded Rilington Communities in 1989. Together with his wife Hansi, Senior Vice President, the Riley's built up the company from an office he built on his land in San Diego.

"She helped me through the years not only as a partner professionally but also personally," Riley said. "She's my rock and she's instrumental in the business."

At first, Riley and his wife worked on problem projects and helped companies finish developments. As time passed, Rilington Communities gained a reputation for quality and service.

Prado -- Coachella, CA

"We want to deliver the best house for the best prices and build a home for a family not just a house," Riley said.

"Rilington's commitment to design and value engineering makes them a pleasure to work with," Dahlin Group Principle Nancy Keenan said. "Rilington creates a unique look and feel for each community,"

California-based architect firm the Dahlin Group worked with Rilington Communities on several housing developments in San Diego and the Coachella Valley.

Today, Riley is a veteran of the construction industry. With more than 35 years experience, Riley's innovative style has made him a leader in the industry.

Riley, a family man and a dog lover, named his company by combining his dog's name with his last name.

"It's a little strange how I came up with the name, but I had a Belgian German Sheppard named Remington and we were going to name the company Riley, but builders and developers have egos and we didn't want to have an ego," he joked. "So as I was sitting there petting my dog, I came up with Rilington."

Since Rilington Communities' humble beginnings, the firm has built houses in Palm Desert, Temecula, San Marcos, Indio and Fallbrook.

Today, Rilington Communities is run by Riley, his wife, son-in-law, daughters and sons. Rilington's core business is entry level and move up single family detached houses. The company is a Green builder and committed to do all Green building, Riley said.

"We feel strongly about this," he said. "I'm a developer but I'm also conscious of the environment. We have to be responsible; it's our planet."

Dolce -- Palm Desert, CA

Riley's son-in-law, Wesley Ahlgren, is spearheading the company's Green efforts. Ahlgren is Vice President of Corporate Affairs at Rilington Communities.

Riley is close to his six children. Riley built his business with his family in mind. Four of his children work at the company while the other two help when they can.

"Our business is our family," Riley said. "I don't want to forget my roots and how I started, I never want to lose focus on what's important; faith, family friends and health."

The entrepreneurial spirit took hold of Riley at a young age. He started a lawn mower business when he was a young boy. He rented lawn mowers from the parents of his friends for a small sum, paid his friends to mow lawns, collected the fees and turned a small profit. He was 12-years-old at the time.

"I realized, there's opportunity as long as you take it," he said. "From that point forward I was always doing stuff, I always had a business. Even in high school I would make some money by building a patio cover."

Brighton Ridge -- San Marcos, CA

Crossing over

Although the company is based in Cathedral City, Rilington Communities is relatively new to the Inland Empire. The firm was based in San Diego until it moved to Cathedral City in 2005.

"Right around 2002 I had a real serious concern that the market was difficult in San Diego at best because of approvals, competition from larger public companies, regulations, entitlements and a variety of other reasons," Riley said. "So, although we were doing well we decided to relocate where there was a future for our business. We didn't intend to move away from San Diego, but when we came to the desert, we liked it and made the decision that we would build here."

When the company moved to Cathedral City, it brought 45 employees and a plethora of knowledge, skills and experience to the local community.

At first, Riley and Hansi wanted to commute from their home in San Diego to Cathedral City. But as time passed, the couple found themselves spending more and more time in the Coachella Valley.

"If you were to have asked me if I would live here full-time five years ago I would have said no," Hansi Riley admitted. "But when we came here, we liked the subtle things; we liked the availability of services, the tennis, golf and the resort type atmosphere. We loved the weather. We liked the people, we liked the opportunities and we still feel this is the best place for us to be personally and business wise. San Diego may be a paradise, but we love the Coachella Valley, it's like being on vacation everyday here; we were enamored."

Branching out

"In 2008, Rilington, like all other builders, public and private, faces serious market challenges," Riley said. New construction is almost at a standstill but Mickie Riley sees this as an opportunity. He has formed the Rilington Development Service Division to handle bank foreclosures and build-outs. This new division is in response to a qualified need in the industry.

The new division is a full service fee builder and development management company. The division focuses on four core areas; traditional fee building, project completion, project hibernation and REO services.

To survive a company "has to be flexible and respond to the market and come up with solutions," Riley said. "What's going to happen is there will be a lot of people that are going to end up with property that they won't know what to do with. So we will offer as many services they will need through the Rilington Development Service Division."

The real estate industry is cyclical, Riley continued. When the industry went south in the early 1990s Riley learned how to deal with a downturn.

He also learned how to be versatile. When framing sub-contractors were in short supply in 2005, Riley formed a framing company under the Rilington banner to handle the rapid pace of growth, Ahlgren said.

"That same year as water truck fees increased exponentially, Rilington bought its own water trucks and hired its own drivers," Ahlgren added.

That tenacity, positive thinking and perseverance has kept the company running strong.
"If I've learned anything, it's a sort of Abraham Lincoln philosophy; failure breeds success," Riley said. "I'm a calculating risk taker; I take it but I pay attention to it with an abundant amount of tenacity. I've also learned that when you hit a wall, don't stop, don't let a change in the market stop you. You got to respond because it could spring into other opportunities."

Riley is optimistic about the future despite the slow economy and the near standstill in the construction industry.

"It's a very exciting time," he said. "I'm doing fantastic; there's an empty canvas, you can pick colors and paint. Things are not easy, things are tough, but there's nothing but opportunity and nothing but bright things ahead."

Fruits of labor

Over the years, Rilington Communities won several awards including a "Builder of the Year" award from the Building Industry Association in 2006, numerous sales awards, PRISM Awards and ADDY awards. Last year Mickie Riley was recognized with the Building Industry's "Industry Leader of the Year Award".

The company also continues to support the YMCA and American Heart Association. Rilington Communities also actively supports and participates in the Women Running Wild event, a breast cancer race and walk held annually in Palm Springs every April. The event raises money for the Suzanne Jackson Breast Cancer Fund. That fund provides free breast cancer screening services to women in the Coachella Valley.

"We feel it's our obligation and duty to be involved and to give back to the community," Hansi Riley said. "Because of our diversification efforts and our ability to adapt to the changing market we plan to continue and expand our community involvement once the market turns back around, we're in it for the long haul."

Dolce -- Palm Desert, CA

Doing Your Part to Help Solve California's Water Crisis

2008-06-26T07:00:00Z

"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.

Pavers

2008-06-27T08:00:00Z

- 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.

Understanding the Mortgage Credit Crunch

2008-06-28T09:00:00Z

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.

Mold free living

2008-06-29T10:00:00Z

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."

Ed Torres, Chairman and Chief Executive Officer, ESP, Inc.

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 home inspector

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.

These are mold indicators that are not only prevalent in the desert, but also across America.

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.

ESP utilizes accredited laboratories

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.