Craig D. Sheehy, CPM
Thomas Properties Group, Inc. (TPG) developed the Joe Serna Jr. / Cal/EPA Headquarters Building project as a Public-Private partnership with the City of Sacramento. The 25-story, 950,000 square foot office building was completed in early 2001 and is located in downtown Sacramento. It is still the city’s largest commercial high-rise real estate development project. The building is recognized nationally as one of the most energy efficient and sustainable commercial office developments in the country.
As operators of this 950,000 square foot project, TPG has incorporated state of the art green building practices. All janitorial, maintenance, tenant improvements, and equipment replacements are carried out incorporating practices and materials that improve air quality, reduce energy usage, and maximize resource re-utilization, reduction, and recycling.
Cal/EPA’s mission for the headquarters building is to “reduce their environmental footprint in and around the building.” TPG has found that this building has become a perfect laboratory to determine if these practices can work in a class A environment. Because implementation of these practices significantly reduced operating expenses, TPG found out that these practices were not only good for the environment, but also good for business.
The first green building practice TPG rolled out was their recycling program. California Integrated Waste requested that TPG put together this type of program, and in 2001, they did. The program, called “Gone Today – Here Tomorrow – Recycle” turned the staff’s normal trash can into a mixed paper/recycle bin and gave each tenant their own small desktop garbage can. In addition to the paper/recycle bins, the offices have 210 three-in-one bins that collect white paper, cans, bottles and glass, and mixed paper.
Cal/EPA is already accustomed to removing bottles, cans and plastic from the waste stream. By eliminating the wet garbage from the desk-side container there is no need to line it with a plastic bag. We create a “pulp” receptacle, the contents of which are entirely recyclable. With the size of this building, TPG eliminates approximately 1,700 cases of plastic bags annually from the waste stream.
TPG’s average cost per ton of material disposed of at the landfill is approximately $50; therefore, the diversion of 202.7 tons of material saves their operation $10,135 annually. The elimination of garbage can liners in each office space eliminates $65,000 in annual purchases. Likewise, the use of reusable cloth bags in the centrally-located recycling bins saves $27,000 per year. TPG originally budgeted for trash removal three times per week. The cost for removal is the same if the bin is full or half-full. Managing their waste stream, they have been able to cut trash removal pick-ups to less than twice a month. The average cost for waste removal in downtown Sacramento is $0.06 per square foot. With limited pick-ups and the development of the recycling program, Cal/EPA is actually making money in the waste account.
In the latter part of 2000, Thomas Properties Group began exploring new and creative ways to reduce energy usage. TPG put together a plan to have the janitorial staff clean mostly during daylight hours (when occupants are in the building working), thereby reducing the amount of after-hours lighting needed.
Currently, the janitorial staff cleans during the day rather than at night, thus preventing all of the lights from being turned on at night to allow for cleaning. The schedule is set up so that the day crew comes in at 11:00 am and begins the dusting, cleaning, and silent vacuum cleaning of the building. This work also includes the removal of recycled materials, and is completed around 5:00 pm. From 5:00 pm to 6:00 pm the janitorial staff removes the wet garbage, and from 6:00 pm to 8:00 pm they clean restrooms, only using core lights.
At 6:00 pm, all staff lighting is shut off. Interior restroom and corridor lights are left on so that these areas can be cleaned, which is completed by 8:00 pm. The carpet cleaning and floor maintenance are performed by a five-person utility crew from 5:30 pm until 2:00 am.
As a result of this change, TPG has reduced energy consumption by approximately 8%, which has led to utility savings of $100,000 annually.
TPG and Cal/EPA are committed to minimizing waste from their building, and through the Waste Reduction Program, they are continually looking for creative, cost effective ways of making the building’s operations more resource efficient. Worm bins were introduced to the building in 2001 and have been proven to be a huge success. These worms are kept in small plastic containers with lids that fit neatly under a desk or a side chair. The worms live in a bedding material made of fiber, peat moss, and other organic materials. Their diet consists of leftover fruit and vegetable scraps that are buried in the bedding material. Staff who participate are lovingly called “Worm Wranglers” and tend to the worms’ needs. A worm’s needs are few: a little moisture, regular feedings, and an occasional change of bedding. The by-product of this process, worm castings or worm manure, is used as a nutrient-rich soil amendment in the landscaping around the building.
TPG also promotes Large-Scale Vermicomposting in the on-site cafeteria. The staff utilizes a vermicomposting system to reduce the amount of organic materials generated during food preparation in the cafeteria. This bin is located inside the loading dock; the cafeteria workers can easily transport the material collected each day. This organic material collected each day is placed in the bin for processing by approximately 30,000 worms. The finished product, worm castings, is again used in the landscaping around the building.
TPG have estimated that the vermicomposting program is diverting approximately 10 tons of waste from landfills each year.
Indoor air quality has always been a big concern for TPG, and they are committed to minimize the introduction of chemicals into the building that would affect air quality. The Cal/EPA building only uses low or zero V.O.C. and non-odorous chemicals for cleaning.
In 2003, TPG introduced waterless urinals into the building. This pilot program encompasses the restrooms on four floors, and has been very successful in utilizing less water and reducing maintenance work orders for stuck valves and continuous running water. They believe that when they install these urinals throughout the building, they will save over 1,000,000 gallons of water annually and experience a significant reduction in repair costs.
Thomas Properties Group has begun collecting data on reduced absenteeism at this building and comparing it with data collected from previous Cal/EPA locations. Reduced absenteeism has a direct correlation with increased productivity, as staff members actually working will produce more work than staff at home. Carnegie Mellon University studies have shown productivity increases of up to 18% in High Performance Green Buildings. With the salaries of staff being the largest expense for an employer, a 5% increase in productivity equates to an annual $20 per square foot savings for the tenant.
TPG’s bottom line savings are approximately $1.50 per square foot less than downtown Sacramento averages. That is almost $1,500,000 per year. Once you put a 7% capitalization rate, a $17,000,000 value has been added the building.
Craig D. Sheehy, CPM is the Director of Property Management at Thomas Properties Group, Inc., he may be reached at www.tpgre.com. Thomas Properties Group, Inc. believes that there is a growing and unmet demand for properties that are built or retrofitted to be high performance green buildings, and that are equipped with advanced lighting, heating and cooling technology, which research shows increase employee productivity. TPG is forming a Limited Partnership to raise $500 million of equity, which will have buying power of about $1.5 billion. The Partnership will develop new properties and renovate existing properties (primarily office and some residential) into high performance, energy efficient, green buildings.