Benton Harbor Bus Terminal Facility Assessment 2019.pdf

FACILITY CONDITION ASSESSMENT

PREPARED BY:

EMG | A Bureau Veritas Group Company 10461 Mill Run Circle, Suite 1100 Owings Mills, Maryland 21117 800.733.0660 www.EMGcorp.com

EMG CONTACT:

Andy Hupp Program Manager

800.733.0660 x6632 arhupp@emgcorp.com

EMG PROJECT #:

134271.18R000-003.017

DATE OF REPORT:

July 23, 2019

ON SITE DATE:

July 3, 2019

EMG Corporate Headquarters 10461 Mill Run Circle, Suite 1100, Owings Mills, MD 21117 www.EMGcorp.com p 800.733.0660 prepared for

State of Michigan DTMB 426 West Ottawa Street Lansing, Michigan 48933 Don Klein

FACILITY CONDITION ASSESSMENT

OF

BENTON HARBOR BUS TERMINAL

2412 M-139

BENTON HARBOR, MICHIGAN 49022

BENTON HARBOR BUS TERMINAL EMG PROJECT NO.: 134271.18R000-003.017

www.EMGcorp.com p 800.733.0660

TABLE OF CONTENTS

1. Executive Summary

Property Overview & Assessment Details Significant/Systemic Findings or Deficiencies Facility Condition Index (FCI) Immediate Needs Plan Types

2. Building & Site Information

3. Property Space Use & Observed Areas

4. Purpose and Scope

Purpose Scope

5. Opinions of Probable Costs Methodology Immediate Repairs Replacement Reserves

6. Certification

7. Appendices

1. Execu t i ve Summary

Property Overview & Assessment Details

General Information

Property Type Bus Terminal

Main Address 2412 M-139, Benton Harbor, Michigan 49022 Berrien

Site Developed 1991

Site Area 1.75 acres (estimated)

Parking Spaces 45 spaces in open lots

Building Area 1,400 SF

Number of Stories 1

Current Occupants 1

Percent Utilization 100

Date(s) of Visit July 3, 2019

Management Point of Contact State of Michigan DTMB, Don Klein

517-241-2191 phone

Kleind4@michigan.gov

On-site Point of Contact (POC) Jeanne Sharpe & Andy Powers

Assessment & Report Prepared By Sean Luxem

Reviewed By Al Diefert Technical Report Reviewer For Andy Hupp Program Manager arhupp@emgcorp.com

800.733.0660 x6632

Significant/Systemic Findings or Deficiencies

Historical Summary The building was originally constructed in the 1991. The building has undergone as-needed replacements throughout the years.

Architectural Building updates include window and door replacements and exterior LED lighting. Only typical lifecycle interior finish and exterior finish replacements are budgeted and anticipated.

Mechanical, Electrical, Plumbing & Fire (MEPF) The MEPF systems and infrastructure vary in age. HVAC components were replaced in 2016. Most piping is original throughout the building. The facility’s electrical infrastructure is considered adequate.

Site The concrete parking pavement requires replacement and is planned for replacement in 2019.

Recommended Additional Studies No additional studies recommended at this time.

Facility Condition Index (FCI)

One of the major goals of the FCA is to calculate each building’s Facility Condition Index (FCI), which provides a theoretical objective indication of a building’s overall condition. By definition, the FCI is defined as the ratio of the cost of current needs divided by current replacement value (CRV) of the facility. The chart below presents the industry standard ranges and cut-off points.

FCI Ranges & Description

0 – 5% In new or well-maintained condition, with little or no visual evidence of wear or other deficiencies.

5 – 10% Subjected to wear but is still in a serviceable and functioning condition.

10 – 30% Subjected to hard or long-term wear. Nearing the end of its useful or serviceable life.

30% and above Has reached the end of its useful or serviceable life. Renewal is now necessary.

The deficiencies and lifecycle needs identified in this assessment provide the basis for a portfolio-wide capital improvement funding strategy. In addition to the current FCI, extended FCI’s have been developed to provide owners the intelligence needed to plan and budget for the “keep-up costs” for their facilities. As such the 3-year, 5-year, and 10-year FCI’s are calculated by dividing the anticipated needs of those respective time periods by current replacement value. As a final point, the FCI’s ultimately provide more value when used to relatively compare facilities across a portfolio instead of being over-analyzed and scrutinized as stand-alone values. The table below summarizes the individual findings for this FCA:

Immediate Needs

Plan Types

Each line item in the cost database is assigned a Plan Type, which is the primary reason or rationale for the recommended replacement, repair, or other corrective action. This is the “why” part of the equation. A cost or line item may commonly have more than one applicable Plan Type; however, only one Plan Type will be assigned based on the “best” fit, typically the one with the greatest significance.

Plan Type Descriptions

Safety An observed or reported unsafe condition that if left unaddressed could result in injury; a system or component that presents potential liability risk.

Performance/Integrity Component or system has failed, is almost failing, performs unreliably, does not perform as intended, and/or poses risk to overall system stability.

Accessibility Does not meet ADA, UFAS, and/or other handicap accessibility requirements.

Environmental Improvements to air or water quality, including removal of hazardous materials from the building or site.

Retrofit/Adaptation Components, systems, or spaces recommended for upgrades in in order to meet current standards, facility usage, or client/occupant needs.

Lifecycle/Renewal Any component or system that is not currently deficient or problematic but for which future replacement or repair is anticipated and budgeted.

Plan Type Distribution (by Cost)

2 . Bu i ld ing & S i te In fo rmat ion

Systems Summary

System Description Condition

Structure

Masonry bearing walls and wood-framed roof Good

Façade

Exposed CMU with aluminum windows Good

Roof

Primary: Hip construction with metal finish

Secondary: Flat construction with single-ply TPO/PVC membrane Fair

Interiors

Walls: Ceramic tile, painted gypsum board, brick veneer

Floors: Ceramic tile

Ceilings: ACT, painted gypsum board

Good

Elevators

None

Plumbing

Copper supply and cast iron waste & venting

Electric water heater

Systems Summary

HVAC

Individual split system Good

Fire Suppression

Fire extinguishers Good

Electrical

Source & Distribution: Main panel with copper wiring

Interior Lighting: T-8, LED

Fire Alarm

None --

Equipment/Special

Security cameras Fair

Site Pavement Concrete roadway with areas of concrete sidewalks and curbs Fair

Site Development Property entrance signage Fair

Landscaping & Topography

Limited landscaping features

Low to moderate site slopes throughout

Utilities Municipal water and sewer system

Local utility-provided electric

Site Lighting Pole-mounted: LED

Building-mounted: LED

Ancillary Structures

None --

Accessibility Presently it does not appear an accessibility study is needed for this property

Key Issues & Findings

Concrete pavement

Systems Expenditure Forecast

The graph below indicates the capital expenditure needs of each year (reference left axis). The purple line forecasts what would happen to the FCI over time, assuming zero capital expenditures (reference right axis).

Needs by Year with Unaddressed FCI Over Time

3. Proper ty Space Use & Observed Areas

Unit Allocation

All 1,400 square feet of the property are occupied by MDOT. The space is comprised of the bus terminal building.

Areas Observed

The interior spaces were observed in order to gain a clear understanding of the property’s overall condition.

Other areas accessed included the site within the property boundaries, and the exterior of the property.

Key Spaces Not Observed

The roof was not directly observed due to slope.

4 . Purpose and Scope

Purpose

EMG was retained by the client to render an opinion as to the Property’s current general physical condition on the day of the site visit.

Based on the observations, interviews and document review outlined below, this report identifies significant deferred maintenance issues, existing deficiencies, and material code violations of record, which affect the Property’s use. Opinions are rendered as to its structural integrity, building system condition and the Property’s overall condition. The report also notes building systems or components that have realized or exceeded their typical expected useful lives.

The physical condition of building systems and related components are typically defined as being in one of five condition ratings. For the purposes of this report, the following definitions are used:

Condition Ratings

Excellent New or very close to new; component or system typically has been installed within the past year, sound and performing its function. Eventual repair or replacement will be required when the component or system either reaches the end of its useful life or fails in service.

Good Satisfactory as-is. Component or system is sound and performing its function, typically within the first third of its lifecycle. However, it may show minor signs of normal wear and tear. Repair or replacement will be required when the component or system either reaches the end of its useful life or fails in service.

Fair Showing signs of wear and use but still satisfactory as-is, typically near the median of its estimated useful life. Component or system is performing adequately at this time but may exhibit some signs of wear, deferred maintenance, or evidence of previous repairs. Repair or replacement will be required due to the component or system’s condition and/or its estimated remaining useful life.

Poor Component or system is significantly aged, flawed, functioning intermittently or unreliably; displays obvious signs of deferred maintenance; shows evidence of previous repair or workmanship not in compliance with commonly accepted standards;

has become obsolete; or exhibits an inherent deficiency. The present condition could contribute to or cause the deterioration of contiguous elements or systems. Either full component replacement is needed or repairs are required to restore to good condition, prevent premature failure, and/or prolong useful life.

Failed Component or system has ceased functioning or performing as intended.

Replacement, repair, or other significant corrective action is recommended or required.

Not Applicable Assigning a condition does not apply or make logical sense, most commonly due to the item in question not being present.

Definition of Exceedingly Aged A fairly common scenario encountered during the assessment process, and a frequent source of debate, occurs when classifying and describing “very old” systems or components that are still functioning adequately and do not appear nor were reported to be in any way deficient. To help provide some additional intelligence on these items, such components will be tagged in the database as Exceedingly Aged. This designation will be reserved for mechanical or electrical systems or components that have aged well beyond their industry standard lifecycles, typically at least 15 years beyond and/or twice their Estimated Useful Life (EUL). In tandem with this designation, these items will be assigned a Remaining Useful Life (RUL) not less than two years but not greater than 1/3 of their standard EUL. As such the recommended replacement time for these components will reside outside the typical Immediate Repair window but will not be pushed ‘irresponsibly’ (too far) into the future.

Scope

The standard scope of the Facility Condition Assessment includes the following:

Visit the Property to evaluate the general condition of the building and site improvements, review available construction documents in order to familiarize ourselves with, and be able to comment on, the in-place construction systems, life safety, mechanical, electrical, and plumbing systems, and the general built environment.

Identify those components that are exhibiting deferred maintenance issues and provide cost estimates for

Immediate Costs and Replacement Reserves based on observed conditions, maintenance history and industry standard useful life estimates. This will include the review of documented capital improvements completed within the last five-year period and work currently contracted for, if applicable.

Provide a full description of the Property with descriptions of in-place systems and commentary on observed conditions.

Provide a high-level categorical general statement regarding the subject Property’s compliance to Title III of the Americans with Disabilities Act. This will not constitute a full ADA survey, but will help identify exposure to issues and the need for further review.

Obtain background and historical information about the facility from a building engineer, property manager, maintenance staff, or other knowledgeable source. The preferred methodology is to have the client representative or building occupant complete a Pre-Survey Questionnaire (PSQ) in advance of the site visit.

Common alternatives include a verbal interview just prior to or during the walk-through portion of the assessment.

Review maintenance records and procedures with the in-place maintenance personnel.

Observe a representative sample of the interior spaces/units, including vacant spaces/units, to gain a clear understanding of the property’s overall condition. Other areas to be observed include the exterior of the property, the roofs, interior common areas, and the significant mechanical, electrical and elevator equipment rooms.

Provide recommendations for additional studies, if required, with related budgetary information.

Provide an Executive Summary at the beginning of this report, which highlights key findings and includes a

Facility Condition Index as a basis for comparing the relative conditions of the buildings within the portfolio.

5 . Op in ions o f P robab le Cos ts

Cost estimates are attached throughout this report, with the Replacement Reserves in the appendix.

These estimates are based on Invoice or Bid Document/s provided either by the Owner/facility and construction costs developed by construction resources such as R.S. Means, CBRE Whitestone, and Marshall & Swift, EMG’s experience with past costs for similar properties, city cost indexes, and assumptions regarding future economic conditions.

Opinions of probable costs should only be construed as preliminary, order of magnitude budgets. Actual costs most probably will vary from the consultant’s opinions of probable costs depending on such matters as type and design of suggested remedy, quality of materials and installation, manufacturer and type of equipment or system selected, field conditions, whether a physical deficiency is repaired or replaced in whole, phasing or bundling of the work (if applicable), quality of contractor, quality of project management exercised, market conditions, use of subcontractors, and whether competitive pricing is solicited, etc. Certain opinions of probable costs cannot be developed within the scope of this guide without further study. Opinions of probable cost for further study should be included in the FCA.

Methodology

Based upon site observations, research, and judgment, along with referencing Expected Useful Life (EUL) tables from various industry sources, EMG opines as to when a system or component will most probably necessitate replacement. Accurate historical replacement records, if provided, are typically the best source of information.

Exposure to the elements, initial quality and installation, extent of use, the quality and amount of preventive maintenance exercised, etc., are all factors that impact the effective age of a system or component. As a result, a system or component may have an effective age that is greater or less than its actual chronological age. The Remaining Useful Life (RUL) of a component or system equals the EUL less its effective age, whether explicitly or implicitly stated. Projections of Remaining Useful Life (RUL) are based primarily on age and condition with the presumption of continued use and maintenance of the Property similar to the observed and reported past use and maintenance practices, in conjunction with the professional judgment of EMG’s assessors. Significant changes in occupants and/or usage may affect the service life of some systems or components.

Where quantities could not be or were not derived from an actual construction document take-off or facility walk-through, and/or where systemic costs are more applicable or provide more intrinsic value, budgetary square foot and gross square foot costs are used. Estimated costs are based on professional judgment and the probable or actual extent of the observed defect, inclusive of the cost to design, procure, construct and manage the corrections.

Immediate Repairs

Immediate repairs are opinions of probable costs that require immediate action as a result of: (1) material existing or potential unsafe conditions, (2) failed or imminent failure of mission critical building systems or components, or (3) conditions that, if not addressed, have the potential to result in, or contribute to, critical element or system failure within one year or will most probably result in a significant escalation of its remedial cost.

Replacement Reserves

Cost line items traditionally called Replacement Reserves (equivalently referred to as Lifecycle/Renewals) are for recurring probable renewals or expenditures, which are not classified as operation or maintenance expenses.

The replacement reserves should be budgeted for in advance on an annual basis. Replacement Reserves are reasonably predictable both in terms of frequency and cost. However, Replacement Reserves may also include components or systems that have an indeterminable life but, nonetheless, have a potential for failure within an estimated time period.

Replacement Reserves generally exclude systems or components that are estimated to expire after the reserve term and are not considered material to the structural and mechanical integrity of the subject property.

Furthermore, systems and components that are not deemed to have a material effect on the use of the Property are also excluded. Costs that are caused by acts of God, accidents, or other occurrences that are typically covered by insurance, rather than reserved for, are also excluded.

Replacement costs are solicited from ownership/property management, EMG’s discussions with service companies, manufacturers' representatives, and previous experience in preparing such schedules for other similar facilities. Costs for work performed by the ownership’s or property management’s maintenance staff are also considered.

EMG’s reserve methodology involves identification and quantification of those systems or components requiring capital reserve funds within the assessment period. The assessment period is defined as the effective age plus the reserve term. Additional information concerning system’s or component’s respective replacement costs (in today's dollars), typical expected useful lives, and remaining useful lives were estimated so that a funding schedule could be prepared. The Replacement Reserves Schedule presupposes that all required remedial work has been performed or that monies for remediation have been budgeted for items defined in the Immediate Repair Cost Estimate.

6 . Cer t i f i ca t ion

State of Michigan DTMB (the Client) retained EMG to perform this Facility Condition Assessment in connection with its continued operation of Benton Harbor Bus Terminal, 2412 M-139, Benton Harbor, Michigan 49022, the “Property”. It is our understanding that the primary interest of the Client is to locate and evaluate materials and building system defects that might significantly affect the value of the property and to determine if the present Property has conditions that will have a significant impact on its continued operations.

The conclusions and recommendations presented in this report are based on the brief review of the plans and records made available to our Project Manager during the site visit, interviews of available property management personnel and maintenance contractors familiar with the Property, appropriate inquiry of municipal authorities, our Project Manager’s walk-through observations during the site visit, and our experience with similar properties.

No testing, exploratory probing, dismantling or operating of equipment or in-depth studies were performed unless specifically required under the Purpose and Scope section of this report. This assessment did not include engineering calculations to determine the adequacy of the Property’s original design or existing systems.

Although walk-through observations were performed, not all areas may have been observed (see Section 1 for specific details). There may be defects in the Property, which were in areas not observed or readily accessible, may not have been visible, or were not disclosed by management personnel when questioned. The report describes property conditions at the time that the observations and research were conducted.

This report has been prepared on behalf of and exclusively for the use of the Client for the purpose stated within the Purpose and Scope section of this report. The report, or any excerpt thereof, shall not be used by any party other than the Client or for any other purpose than that specifically stated in our agreement or within the Purpose and Scope section of this report without the express written consent of EMG.

Any reuse or distribution of this report without such consent shall be at the Client and the recipient’s sole risk, without liability to EMG.

Prepared by: Sean Luxem, Project Manager

Reviewed by:

Al Diefert, Technical Report Reviewer for Andy Hupp, Program Manager arhupp@emgcorp.com

800.733.0660 x6632

7 . Append ices

Appendix A: Photographic Record

Appendix B: Site Plan

Appendix C: Pre-Survey Questionnaire

Appendix D: Replacement Reserves

Appendix E: Equipment Inventory List

Appendix A:

Photographic Record

BENTON HARBOR BUS TERMINAL EMG PROJECT NO: 134271.18R000-003.017

#1 FRONT ELEVATION

#2 SIDE ELEVATION

#3 REAR ELEVATION

#4 SIDE ELEVATION

#5 PROPERTY SIGNAGE

#6 METAL ROOF

#7 CONCRETE PAVEMENT

#8 CONCRETE SIDEWALKS

#9 SITE BENCH

#10 FLAGPOLE

#11 LED POLE LIGHT

#12 METAL HALIDE FIXTURE

#13 LED LIGHT FIXTURE

#14 CAMERA

#15 ALUMINUM WINDOWS

#16 EXTERIOR ALUMINUM DOORS

#17 EXTERIOR STEEL DOOR

#18 CONDENSING UNIT

#19 FURNACE

#20 WATER HEATER

#21 ELECTRICAL SYSTEM

#22 CERAMIC TILE WALL FINISH

#23 CERAMIC TILE FLOOR FINISH

#24 INTERIOR PAINTED CEILING

FINISH

#25 INTERIOR ACT CEILING FINISH

#26 INTERIOR STEEL DOOR

#27 DRINKING FOUNTAINS

#28 TOILET

#29 URINAL

#30 LAVATORY

#31 HAND DRYER

#32 CEILING FAN

#33 COUNTER

#34 FIXED SEATING

Appendix B:

S i te Plan

Site Plan

Project Name:

Benton Harbor Bus Terminal

Project Number:

134271.18R000-003.017

Source:

Google Earth

On-Site Date:

July 3, 2019

Appendix C:

Pre-Survey Quest ionnaire

FCA (Commercial) Pre-Survey Questionnaire

June 2015 Update

This questionnaire must be completed by the property owner, the owner's designated representative, or someone knowledgeable about the subject property. If the form is not completed, EMG’s Project Manager will require additional time during the on-site visit with such a knowledgeable person in order to complete the questionnaire. During the site visit, EMG's Field Observer may ask for details associated with selected questions. This questionnaire will be utilized as an exhibit in EMG's final report.

Name of Institution: MDOT

Name of Building: Benton Harbor Bus Terminal Building #:

Name of person completing questionnaire: Andy Powers

Length of Association With the Property: 1 year Phone Number: 517-242-9956

Site Information

Year of Construction? 1991 No. of Stories? 1

Total Site Area? .95 Acres

Total Building Area? 2,000 sqft

Inspections Date of Last Inspection List of Any Outstanding Repairs Required

1. Elevators N/A

2. HVAC Mechanical, Electric, Plumbing? 1/24/2019 Furnace Maintenance done

3. Life-Safety/Fire? Unknown

4. Roofs? October 2018 Repairs made to soffit. Roof not vented properly per contractor.

Key Questions Response

Major Capital Improvements in Last 3 yrs. New HVAC in June 2016 Planned Capital Expenditure For Next Year? Parking lot will be recemented 2019 Age of the Roof? Part of a 2013 renovation What bldg. Systems Are Responsibilities of

Tenants? (HVAC/Roof/Interior/Exterior/Paving) All repairs under $2500. Basic Maintenance and upkeep.

Mark the column corresponding to the appropriate response. Please provide additional details in the Comments column, or backup documentation for any Yes responses. (NA indicates “Not Applicable”, Unk indicates “Unknown”)

QUESTION Y N Unk NA COMMENTS

ZONING, BUILDING DESIGN & LIFE SAFETY ISSUES

Are there any unresolved building, fire, or zoning code issues?

x

Is there any pending litigation concerning the property?

Are there any other significant issues/hazards with the property?

Are there any unresolved construction defects at the property?

x Roof ventilation, parking lot, one basin not cleaned out.

Has any part of the property ever contained visible suspect mold growth?

Mark the column corresponding to the appropriate response. Please provide additional details in the Comments column, or backup

Is there a mold Operations and Maintenance Plan?

Are there any recalled fire sprinkler heads (Star, GEM, Central, and Omega)?

Have there been indoor air quality or mold related complaints from tenants?

GENERAL SITE

Are there any problems with erosion, storm water drainage or areas of paving that do not drain?

x Area around the building gets very wet. Water does not drain away from the building well. Would like to investigate eves or landscape options.

Are there any problems with the landscape irrigation systems?

BUILDING STRUCTURE

Are there any problems with foundations or structures?

Is there any water infiltration in basements or crawl spaces?

Has a termite/wood boring insect inspection been performed within the last year?

BUILDING ENVELOPE

Are there any wall, or window leaks?

Are there any roof leaks? x

Is the roofing covered by a warranty or bond?

Are there any poorly insulated areas?

Is Fire Retardant Treated (FRT) plywood used?

Is exterior insulation and finish system (EIFS) or a synthetic stucco finish used?

Mark the column corresponding to the appropriate response. Please provide additional details in the Comments column, or backup

BUILDING HVAC AND ELECTRICAL

Are there any leaks or pressure problems with natural gas service?

Does any part of the electrical system use aluminum wiring?

Do Residential units have a less than 60-Amp service?

Do Commercial units have less than 200-Amp service?

Are there any problems with the utilities, such as inadequate capacities?

ADA

Has the management previously completed an ADA review?

x A new review is advised.

Have any ADA improvements been made to the property?

Does a Barrier Removal Plan exist for the property?

Has the Barrier Removal Plan been approved by an arms-length third party?

Has building ownership or management received any ADA related complaints?

x Per Greyhound Ticket agent.

Does elevator equipment require upgrades to meet ADA standards?

PLUMBING

Is the property served by private water well?

Is the property served by a private septic system or other waste treatment systems?

Is polybutylene piping used? x

Are there any plumbing leaks or water pressure problems?

x None that have been reported.

Additional Issues or Concerns That EMG Should Know About?

1.

2.

3.

Items Provided to EMG Auditors

Yes No N/A Additional Comments?

Access to All Mechanical Spaces x Access to Roof/Attic Space x Access to Building As-Built Drawings x Site plan with bldg., roads, parking and other features x Contact Details for Mech, Elevator, Roof, Fire Contractors: x List of Commercial Tenants in the property x Greyhound Lines Inc.

Previous reports pertaining to the physical condition of property.

x

ADA survey and status of improvements implemented. x

Current / pending litigation related to property condition. x Any brochures or marketing information. x

4/9/2019

Signature of person Interviewed or completing form Date

Appendix D:

Replacement Reserves

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Appendix E:

Equipment Inventory List

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