The Flood West Higgins

Transcription

1 The Flood West Higgins

2 8501 West Higgins Day 1 The total rainfall at O'Hare inches as of about 6:50 a.m. -- is the largest single-day rainfall since records began in At 4:15 a.m. Property Manager receives call for High Water Alarm on Loading Dock. Chief on Vacation in remote area with no cell phone access. 4:53 a.m. PM arrives at Building and finds Loading Dock completely under 9 feet of water. 5:00 a.m. Call to plumbers to pump out dock unaware of the 975,000 gallons of water in the sub basement of the building which contains all mechanicals.

3 The Kennedy Expressway

4 8501 West Higgins Day 1 5:05 a.m. Enter building and determine that mechanical room is completely under water but unable to assess potential issues due to lack of power. 5:30 a.m. Place call to JC Restoration - back logged due to high volume of incidents. They arrange for First Response to mobilize and commence drying efforts. Four adjacent buildings similarly affected (Marriott Hotel shut down) 6:00 a.m. Senior General Manager is notified and arrives at property. SGM in turns notifies VP, PM 7:00 a.m. Efforts commence to begin pumping out lower level. This event required detailed coordination between Plumbing Company and Restoration Company.

5 8501 West Higgins Loading Dock Original Water Line

6 Commonwealth Edison Vault ComEd electrical vaults are located on the loading dock area submerged!

7 8501 West Higgins Day 1 Assessment of damage could not begin till the water was out of lower level 17 hours process! Spent remainder of day and evening coordinating with Public Utility Company to take building off line. Arrange for multiple subcontractors, who are familiar with the building, to be available on Sunday for damage assessment. Engineering Staff of near-by Lincoln building put on stand-by for Sunday call out. PM sleeps at the building Mechanical Room floor

8 8501 West Higgins Day 2 Engineering Staff from other facilities begin to mobilize with Building Subcontractors to begin assessment of damages. First Response begins clean up process but unable to dry due to high volume of humidity from large quantities of water. House Electrician determines that while he is qualified he does not have the workforce to complete; recommends an electrician who can assess. Difficulty engaging Client Insurance Administration Client not on Lincoln policy. VP of Property Management arrives on scene

9 8501 West Higgins Day 2 Due to limited number of tenants, tenant call list divided between SGM and PM for all tenant communications. Unique tenant mix at the building Westwood College Day and Evening Classes First Midwest Bank Federally Regulated ECFMG one of three facilities in the US that provide medical school testing required to pass state boards. Determine that Building will not be open on Monday, Day 3. Coordinate additional guard service to assist at Tenant Lobby Table on Monday for those students, visitors and tenants who arrive.

10 8501 West Higgins Day 3 First Tenant Communications (written) is released. Tenants informed that building will be closed until at least a week and a half address Response.8501Higgins@LPC.com is established and other suburban staff monitors daily. Periodic access is arranged for tenants to pick up belongings Additional staffing provided Tim Incerto, Shannon Mangiameli, Robert Quast. Conference call with Client to determine if CM should be engaged. Begin to determine full extent of damaged equipment. Equipment included: HVAC Chiller New chiller installed in 2010 control board needs to be replaced Original chiller can not be repaired full replacement Original switchgear (1961) may need to be replaced MCC will also need to be replaced Interior ComEd transformers need to be replaced ComEd believes lead time to be several weeks

11 8501 West Higgins Day 3 Begin to determine full extent of damaged equipment. Equipment included: Emergency Generator Was underwater on dock water in gas tank Elevators Water in pits Contractor attempt at unjust enrichment VFD s All 4 need to be replaced two completed on Day 2 Pumps Total of 16 Several can be repaired others need to be replaced ComEd Transformers Inform us that they must be replaced lead time is November.

12 8501 West Higgins Day 3 Discussions start on temporary power to the building as it appears that we could be months without power. Electrician determines alternate way to feed building Meeting held with Insurance Adjuster, Consultant, JCR, Subcontractors and Building Management Insurance company immediately recognized magnitude of the loss and approved restoration. Funded $500, advance to begin work immediately. Bank informed that we will be closed at least 1 week tenant sets up temporary banking facility.

13 8501 West Higgins Week One On-going Communications with tenants Weekend of 7/28 install temporary chiller and temporary generator Still unaware of reopen date as all power must be wired to generator On-going Communications with Client Multiple building inspections Due to shared-loss policy multiple inspections with numerous consultants for both insurance companies in an effort to determine cost and which policy will prevail All overnight deliveries and mail services informed that building will be closed at least a week Daily on-site meetings with restoration company PM and SGM are rotating schedules for overnight coverage at building

14 8501 West Higgins Week One Morning of August 4 th SGM and PM are awakened by the sounds of storms (and a ringing phone) we have water AGAIN! Luckily only several inches.

15 8501 West Higgins Ongoing Building reopens after 20 days on August 11, 2011; however there still is no access to lower level for the tenants. New Issues continue daily particularly with ComEd Weekly progress meetings As of today (6 months later) the building is still being run on temporary power. Anticipate cut over s in next two weeks.

16 Risk Management Accounting Building Owner & Investors Crisis Team Building Legal Team LPC & Building Personnel Building Staff Colliers Leasing Team Restoration Elevator CFD HVAC Electric Restoration Contractors Crisis Team Commander Tammy City & State Officials Water Mgmt Other Contractors Other City Officials Bank Visitors Students Tenants (15) Service Providers Extra Resources Tenant Contacts/Employees Insurance Cancellation of Services Tenant Visitors Insurance Adjuster Insurance Consultant

17 8501 West Higgins Ongoing New Chiller End of 1 st quarter Final claim End of 3 rd quarter (1 year after) Temporary Power pulls

18 Lessons Learned West Higgins - Flood

19 Crisis Management: Lessons Learned Terms of Engagement/Restoration Contractor Management agreement permits LPC to contract for emergency situations. Understand difference between emergency actions to mitigate loss and restoration efforts. Union versus non-union contractors. Hire a restoration contractor that has the financial wherewithal to handle the size of the loss. Pre-Plan of property. Do not hire restoration contractors that do not have experience working on casualty losses paid by insurance.

20 Crisis Management: Lessons Learned Building Operating Systems Strong understanding of building systems: Generator HVAC System Life Safety Equipment Smoke detection systems. Exercise kill switch for switch gear equipment. Know ComEd and other vendor emergency contacts. Quick access to plans and drawings of base building. Understand resources available for rush orders (i.e. filters). Ample supply of flashlights, two-way radios, and chargers/batteries.

21 Crisis Management: Lessons Learned Operational / Restoration Fire Plan book (with floor plans). Quick access to as-built drawings of tenant spaces, common areas, and mechanical rooms. Consider Who is responsible for reviewing restoration contractor s work? Who determines building is safe to re-open or tenants to re-occupy?

22 Crisis Management: Lessons Learned Tenant Communication Frequent, open, factual assessment of damage, and restoration period. Preparation / Review PR firm support Ownership review Legal team review Personal communication and written communication (electronic). Alternate addresses for emergency contacts (not tied to company s server that may be down). The logistics of tenant communication is a critical function. A significant amount of time and energy to get the appropriate list perfected. Situation is fluid; Do not prematurely commit to a reopening date and/or overpromise restoration milestones. Manage tenant expectations. Optional: Notification Sys. (ex. Send Word Now)

23 Crisis Management: Lessons Learned Tenant Relations Personal contact with individuals onsite at time of fire crisis. Tenants have a tremendous amount of questions. Be consistent. Do not attempt to answer questions before you are ready. Do not assume primary tenants will communicate with subtenants. Personal contact with key (large tenants) decision markers. Host tenant information meetings after building is re-opened. Respond to tenant concerns of safety.

24 Crisis Management: Lessons Learned Call Center Single point of contact for tenants: Established an address for emergency response. Established one phone number to direct tenants, their insurers, and their contractors. Manned by same individuals for conformity and consistency with tenants. The call center was a great resource of facilitating information to/from tenants. Critical to keep the call center informed. o The information about a crisis situation is fluid. Maintain a log of calls and inquiries for future reference.

25 Crisis Management: Lessons Learned You cannot manage a crisis situation alone. Mobilize crisis team. Assign responsibilities based on individuals strengths. Organization & prioritization of demands is essential. Industry Relationships Management Leases saved electronically for easy distribution Insurance Legal Team Forensic Accountants Abstract casualty loss provisions of tenant leases. Consider hiring additional consultants? Prepare for possible future litigation: Document, document, document. Maintain surveillance camera footage. Take photographs. Better to say you don t know versus providing a less than fully informed response. Abstract loan documents: Casualty loss requirements Escrow account and insurance payout process.