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Executive Report

Good Hands? Or Fancy Footwork?

When the damage repair industry was just beginning, the old timers tell us that there was a working partnership between the insurer and the contractor. The insurer helped claimants through timely adjustment and payment of claims. The claims payments paid for competent, cost controlled repairs to stricken homes by qualified contractors. In some quarters, the partnership survives, but the cover story in September’s Bloomberg Markets magazine reports the sordid state of the P&C insurance industry’s abandonment of risk management in favor of money management.

The article, which can be accessed online at http://quote.bloomberg.com/news/marketsmag/mm_0907_story1.html, is titled, “The Insurance Hoax,” by David Dietz and Darrell Preston, and it hits three primary points. First, it describes how many insurers intentionally underinsure properties. Second is the insurer’s attempt to intimidate homeowners into accepting immediate cash settlements that are far less than the policy contract provides, and the third point is they intentionally deny valid claims in a plan to use the company’s economic clout against the policyholder’s precarious finances and emotions to force a settlement through stalling the client. The reward to the companies pursuing this type of intimidation is lower loss ratios and higher stock prices (plus big bonuses for management; we surmise). Ultimately, other insurance companies will be tempted to play the same game just to keep their share prices from lagging the industry leaders.

Dietz and Preston make the point that somewhere along the way these insurance companies changed their business model from the assumption and management of risk to that of being financial portfolio companies. There is nothing inherently wrong in changing a business model, but it is reprehensible for insurers to engage in what amounts to deceptive selling.

Just about anyone can become an insurer in the traditional mode. All it requires is some capital and an understanding of actuarial science and risk management, but to be an insurer as described in the Bloomberg article is like being the dealer in a poker game with the ability to change card rankings to your advantage after all bets are in and all cards are face-up on the table. That may be a better business model when you can find enough suckers to play, but news travels fast these days, and one hopes that a rising tide of property owners will invest their premiums with companies that deal a square hand.


Don Manger
Executive Director
Restoration Industry Association


RIA NEWS

RIA NEWS
Toolbox Tips
Product Spotlight
On Press Now

INDUSTRY NEWS

"Gray Lowers Hurricane Forecast to 4 Intense Storms"
"Bradley Lifts Quarantine at Former Meth Lab Site"
"Fluoropolymer Repellents"
"All Backed Up"
"Katrina Survivors Face New Threat: City Demolition"
"Airborne Asbestos Hazard Minimized, but Debris Shows Contamination"
"Island Reinsurers Expect Minimal Impact From Japan Earthquakes"
"The Recurring Spot"
"Science-Based Cleaning Methods That Improve IAQ"
"La. Official Says Asbestos Threat Handled Properly After Katrina"
"'We Are Acting Quickly'; FEMA Is Responding Responsibly to Trailer Air-Quality Concerns"
"Find the Right Drying Equipment"
"Schenectady Company to Analyze 9/11 Debris"
"Low-Moisture Equipment: Becoming the Machine of Choice"
"Stand Up to Floor Care Challenges"
"Bankers' Group Revisits Effects of Mold on Real Estate"


RIA NEWS

Breaking News

Harvard Survey Revealed 31% Refuse Hurricane Evacuations
The Harvard School of Public Health conducted a survey targeted to individuals living in hurricane risk zones of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Texas, to determine their level of preparation if a disaster strikes. The study found one in three people would not evacuate their homes with the government officials’ warning. Reasoning included feeling their house is well-built and already offers safety, overcrowded roads, dangerous conditions brought by evacuating, and not wanting to leave their pets behind.

The survey also revealed the biggest concern if forced to evacuate were the conditions of the evacuation shelters. Concerns included unsanitary conditions, not enough clean water, overcrowding, exposure to sick individuals, and a lack of medical care.

Insurance Contract Law Paper Published
The English and Scottish Law Commissions published their first consultation paper titled, “Insurance Contract Law: Misrepresentation, Non-Disclosure and Breach of Warranty by the Insured” last month. The paper focuses on consumer insurance, business insurance, consumer misrepresentation and restrictions concerning what information companies are able to reveal.

Ocean Changes Reveal Lower Hurricane Predictions
The latest estimates made by Colorado State University have lowered the number of predicted hurricanes for the 2007 season. Atlantic hurricanes decreased from nine to eight. Atlantic and Gulf coast storms were dropped from 17 to 15, and intense hurricanes shifted from 5 to 4.

In response to these decreased predictions, the forecasting team said, “Sea-surface temperature anomalies have cooled across the tropical Atlantic in recent weeks, and there have been several significant dust outbreaks from Africa, signifying a generally stable air mass over the tropical Atlantic.” However, the team still anticipates an above average hurricane season.

U.K. Flood Losses Continue to Rise
Risk Management Solutions Inc. (RMS) foresees the current flooding in the United Kingdom costing more than the flood damages brought about in the U.K. in June, which totaled more than $1.54 billion in insured losses. Factors for higher flood costs are due to more claims and business interruptions such as the loss of power and running water. The Newark, Calif.–based risk modeling firm is estimating losses to total over $2 billion due to these additional circumstances. The RMS believes these floods to result in a serious re-examination of flood insurance availability.

IAQA Class Deadline Approaching
The Indoor Air and Quality Association, Inc. (IAQA) is hosting a Mold Legislation class on Tuesday, Aug. 21, 2007, designed to regulate and license providers of home inspection, mold remediation and mold assessment services. Maurice Baum, PIH, CHMM, CMC will speak on Florida’s new mold legislation and how the law affects an individual. The course will take place between 8:30 a.m. and noon at Broward Community College in Davie, Fla., and cost $85.00 per person. For more information, call the IAQA at 877-663-5336.

Hurricane Prediction Marks September as Above Average
The hurricane season is most severe between Aug. 20 and Oct. 14, with Sept. 10 as the high point. Additionally, September has been ranked the month with the greatest number of storms as determined by the U.S. National Oceanic and Atmospheric Administration (NOAA), and this year seems no different. The following predictions have been made by three forecasting teams. Colorado State University predicts 15 Atlantic storms, NOAA between 13 and 16, and London-based Tropical Storm Risk foresees 14.7 storms.

On a positive note, Jeff Masters of online weather company Weather Underground, said in reference to these predictions that heavy Saharan dust is blocking the sun’s light from heating the ocean; resulting in less fuel for storms.

State Farm and White House Oppose Wind Coverage
About 50,000 homeowners in Florida will be out of luck next year when State Farm Insurance cancels approximately 50,000 insurance policies for windstorm coverage beginning Jan. 1, 2008. Those with insurance for this year will still be covered during the current hurricane season.

State Farm spokesman Justin Glover said it was “a very tough decision for us to make, but it is part of our decision to remain in this market.” Currently, their market consists of around one million policyholders, and the company is recognized as the largest private home insurer in the state.

Additionally, the Bush administration is opposed to allowing the National Flood Insurance Program to include windstorm coverage as well. However, this decision is now causing a major barrier to the program’s expansion.

Robert P. Hartwig, president and chief economist for the Insurance Information Institute said, “The administration supports leaving wind coverage to the well-developed private market for such insurance and not creating a federal program for wind losses.”

From staff and wire reports.

RIA Briefs

Cleaning & Restoration Magazine Success Skyrockets
Patti Harman, the editor-in-chief of Cleaning & Restoration magazine, recently announced that the publication received four awards recognizing the magazine’s editorial and printing successes. An Honorable Mention was given for the best overall editorial in the September 2006 issue. Two Silver Awards were given for the best feature article and the best feature writing for Harman’s article on the notorial archives in New Orleans. Lastly, a special recognition award was given in the Grand Award category for outstanding achievement in custom publishing for the November 2006 issue.

C&R competed against many larger organizations including the Walt Disney Company, Rodale Press, the National Association of Realtors, American Airlines, Aetna Customized Communications Group, Toyota Motor Sales and the Public Relations Society of America in the area of custom publications.

“Thank you to each of you for the role you play in making Cleaning & Restoration the outstanding publication it is today. This is most certainly a team effort and I congratulate each of you on these accomplishments,” said Harman in an e-mail to the magazine’s staff and contributing writers.

RIA Visits Member Companies
The RIA staff traveled around the states of Maryland and Virginia during the end of July for a 5-day tour of several member companies. The visits allowed the RIA staff to become more informed on the different areas of expertise within the industry, while receiving a first-hand look on how to better provide the services that members need from the association.

Companies who took part in this event include The Carpet Cleaner, Ayoub Carpet Service (ACS), Begal Enterprises, Inc., Rolyn Companies, Inc, Evans Garment Restoration Mid-Atlanticplant, Royal Plus Inc., and PBI Restoration Resources. The staff was exposed to various equipment and procedural methods, Oriental rug cleaning, an interactive carpet cleaning session, warehouse tours, restoration methods, and projects currently being handled by the various companies.

RIA Fall Conference Plant Tour Confirmed
RIA has announced that American Technologies will be hosting a plant tour and BBQ Friday, Oct. 26, 2007, at their corporate office in Orange County. Held in conjunction with the Association's Fall Conference Series & Exhibition in Garden Grove, Calif., from Oct. 24 -27, 2007, the tour is an optional event for RIA members only who have registered at least one person for the environmental or restoration conference. The cost for the plant tour is $75 for members who register by Sept. 14th and $125 after that date. Round-trip transportation will be provided to and from the conference host hotel to the plant. For more information, visit www.restorationindustry.org.

RIA members can still take advantage of the early-bird prices for the conference and save $100 per attendee if they register by 9/14/07. Non-members will save $200 if they register by the deadline. Visit http://www.restorationindustry.org/programs/conference07/
Convention07.htm
for details.
Reservations at RIA's Headquarters Hotel, Hyatt Regency Orange County, may be made until 9/14/07 by visiting. https://resweb.passkey.com/Resweb.do?mode=welcome_gi
_new&groupID=84463
.

A Look into September’s Courses

RIA Contents Restoration Course
Where: Utah Disaster Cleanup - Salt Lake City, UT
When: Sept 6-7
What: This comprehensive seminar on personal property restoration provides hands-on demonstrations and teaches students how to evaluate different degrees of damage and select methods for safe and effective restoration. Restoration theory provides a basis for selecting techniques appropriate for specific situations. Students learn about nine material categories: wood, glass, ceramics, textiles, polymers, metals, paper, composites and electronics. Restoration equipment and materials will be demonstrated and a resource list of specialty suppliers will be provided. There are no prerequisites for registration, bur prior restoration experience is strongly recommended.

RIA Certified Mechanical Hygienst (CMH) School
Where:Hilton Philadelphia Airport - Philadelphia, PA
When: Sept 17-20
What: This school is designed to provide an education in the multi-faceted disciplines that are involved with the operation, maintenance and refurbishment of air distribution systems in both residential and commercial facilities.

RIA Certified Mechanical Hygienist CEC Course
Where: Hilton Philadelphia Airport - Philadelphia, PA
When: Sept 17-18
What: This school is designed to provide an education in the multi-faceted disciplines that are involved with the operation, maintenance and refurbishment of air distribution systems in both residential and commercial facilities.
RIA Mold Remediation Supervisor (MRS) Course
Where: Wonder Makers, Inc. - Kalamazoo, MI
When: Sept 24-25
What: The focus is on education rather than training because the project supervisor must have skills in choosing from a variety of techniques and requirements to best suit a particular project. The course drams heavily on case studies and thinking exercises as well as group dynamics and integration of cost factors into mold remediation. The heaviest emphasis is on risk assessment, selection of containment and decontamination unity options, communication of information to technicians and clients, and a deeper understanding of the various standards of care in the industry. Pre-requisite course for CMP designation. Mold Remediation Supervisor Course and the Advanced Rug Repair Course.

Upcoming Educational Courses
RIA will be offering many educational courses throughout the rest of the year. Stay tuned for more information on the October courses next month. If you have questions, please contact RIA at 443-878-1000.

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Cleaning Tips for Smarties & Dummies
By Steve Spivak, Ph.D.

Surely you have some “smarties” or information seeking customers who desire to know more about carpet care, cleaning and maintenance. You may even have a “dummy” customer who cannot seem to understand the concepts you are explaining such as the need for vacuuming, spot and stain removal, and overall carpet cleaning. Their questions seem endless and your answers unfulfilling.

On the other hand, perhaps you’ve hired an eager new carpet cleaning technician who is looking for a quick read to learn about basic carpet maintenance or you’re intrigued by my discussions in Cleaning & Restoration, by the Cleaning Industry Research Institute or others regarding Cleaning Green, i.e., environmentally sensitive cleaning services.

No matter the case, here come two new books in the “xxx- for Dummies” series. Now just ask yourself if this is something you should be considering, or offering as an alternative to your earth-friendly facility managers, building owners and customers? Books are pocket size at four by six inches and are as follows:

Carpet Cleaning Tips for Dummies by Elizabeth Goldsmith, from Wiley Publishing with the Carpet and Rug Institute plus others, ISBN 978-0-470-14862-4. More information is available on request from the Carpet and Rug Institute, http://www.carpet-rug.org/.

Green Cleaning for Dummies by Steve Ashkin [of Green Seal notoriety] with David Holly, also by Wiley [www.wiley.com] in its Dummies series. Green for smarties or dummies is published in conjunction with ISSA (‘jan-san’ market). See http://www.issa.com/ for more information. The authors note: “[It] demystifies and simplifies the green cleaning process, by providing information on selecting green chemicals, green equipment, green paper and other green cleaning tools and supplies.”

Save the dates! Two forthcoming conferences, including the greening of detergency and cleaning or restoring using green methods, are planned. One is by the Soap & Detergent Association, November 5 -7, in the Washington, DC area. Following that will be RIA’s pre-conference seminar day “Going Green” on March 12, 2008, in the Dallas-DFW area. This is immediately preceding RIA’s 2008 convention & exhibition. Be there!

Marketing Savvy
Planting a Successful Marketing Relationship
By Jessica Krznaric

Planting the seed for a new business relationship takes time to grow. Once planted, showing the client you are able to create a successful product with a powerful brand, takes time to blossom. While waiting for growth spurts, successful partnerships must transpire. If not handled carefully, a drought will result in a guaranteed failure. Below are helpful tips to maintain successful partnerships and beat out the competition.

Mother always said to say thank you. Whether a new client or in the final stages of a marketing campaign, send a hand-written card to say, “Thanks.” Generosity is rare now a days and the act of hand-written messages have almost become extinct.

Profile your prospects. Keep records about each client and jot notes of the client’s likes, dislikes, marketing views, hobbies, and whatever else you can gather from emails and phone conversations. Relating on a non-business level is needed for successful partnerships.

Replace “I” with “You.” It is not all about you. Focus on your client’s needs and understand what your client wants. How can your client benefit from gaining your business?

The 24-hour rule. Respond to all voicemails and emails within 24 hours or less. A fast response lets your client know you are easy to get a hold of and you have time for them.

Rewards aren’t just for kids. Gift cards, free tickets to sporting events, discounts, fruit baskets, and holiday cards demonstrate a charitable act to show you care. Sending food baskets to the office creates a friendly buzz and will help get your name remembered.

Switch shoes. Put yourself in your client’s shoes. If the situation was reversed, what types of services would satisfy your business needs? Use these ideas to better the services you offer others.

A few other tips to keep your name in front of your customer are:
  • Force action through marketing. Make someone want to check out your website or want to tell their friends about it.
  • Use direct marketing with style. A plain white envelope is not likely to get noticed over a bright yellow one.
  • Create a nonstandard business card.
  • Give out promotional products with purchases. Unique objects that list your company information, such as umbrellas or mugs, are great ways to stay in your client’s head.

Jessica Krznaric is the Communications Specialist for RIA.
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Product Spotlight

Carpet Guide
Want a cost-effective, on-the-job reference and a useful training aid? The Carpet Guide fills the bill with detailed illustrations, sample swatches and concise text. Explaining the many facets of fibers and construction found in popular floor coverings, you too can master the skills of better selecting the most efficient methods for carpet and rug maintenance and cleaning. Presented in a vinyl binder, the Carpet Guide, is built to last.

Members: $175.00 each
Non-Members: $275.00 each

Carpet Swatch Set
This reference set contains a wealth of information as well as visual elements, which help your crew to quickly recognize various carpet structures. The Carpet Swatch Set provides 20 samples of swatches for carpet classification including texture, style, face and backing fibers, and surface coloration. Prevent cleaning errors and reduce replacement costs by correctly identifying carpet fibers before cleaning begins.

Members: $125.00 each
Non-Members: $225.00 each

Order Both: Carpet Swatch Set & Ready Reference Carpet Care Guide and Save $55.00
Members: $245.00
Non-Members:$345.00
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On Press Now

Here’s a look at what’s coming in the September 2007 issue of RIA’s award-winning publication, Cleaning & Restoration.

Ethical Team Communication
By John Fox

Take a look at the classic sales-service dilemma and how ethical communication is a two-way agreement between sales and service. Learn the difference between talking and listening, and how each set of skills is needed for healthy communication.

Building Brand Awareness
By Keri Jones

Brand building and marketing go hand in hand when creating an effective marketing campaign. Trying to get an idea or product recognized by consumers is achieved through brand awareness, which can be done by following the three laws of branding – The Law of the Name, the Law of the Shape, and the Law of Color.

Overcome a Talent Shortage: Create a Gen-X Friendly Workplace to Retain Key Talent
By Deanne DeMarco

As Baby Boomers near retirement, Gen-Xers are expected to take their place in the workforce. Today’s workers have different needs and employment requirements, and organizations will need to adapt their work environments and requirements in order to attract the Xers and avoid extinction.

Covering All the Bases: Selecting a Creative Agency
By Melissa Crowe

Selecting the right ad agency is a critical decision that could quickly alter the current success of your marketing campaign. Learn how to select an agency that best fits your business, along with seven marketing strategies that will help you to achieve a logo that screams “look at me!”

Columns
Commentary
Making Your Mark
Technical Topics
Branding by You and by RIA: How Well Does it Work?

Business Briefs
Meeting and Maximizing Employee Expectations
Legal Briefs
The Occupational Safety and Health Review Commission Strikes down OSHA’s Multi-Employer Policy
Marketing Notes
Review to Win!

Environmental Matters
Lead Hazards During Remediation or Restoration – Part 1

One-on-One With…
Mohammed Iftkhar, WLS
*debut column

Not a subscriber? Then visit http://www.restorationindustry.org/buyersguide/index.cfm.
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INDUSTRY NEWS

"Gray Lowers Hurricane Forecast to 4 Intense Storms"
Insurance Journal (08/08/07)

Colorado State University hurricane researcher William Gray expects 15 named storms--two of which occurred early in the hurricane season--in the Atlantic Ocean this year. Of the eight hurricanes predicted, Gray thinks four will be intense. Prior to the start of the 2007 hurricane season, Gray forecasted 17 named storms, with five out of nine hurricanes expected to be intense. Gray attributes changes in the hurricane forecast to such things as lower water temperatures in the Pacific Ocean and dust from the Sahara Desert holding down temperatures in the Atlantic Ocean--not global warming. According to Gray, there is a 68 percent chance of an intense hurricane making landfall in the United States this year, with a 43 percent chance one will reach the East Coast and a 44 percent chance one will hit the Gulf Coast.
(Web Link)
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"Bradley Lifts Quarantine at Former Meth Lab Site"
Chattanooga Times Free Press (TN) (08/06/07) P. B1; Cook, Dick

In Cleveland, Tenn., an apartment owned by the Cleveland Housing Authority is no longer under quarantine by the Bradley County's Sheriff Department, as all traces of methamphetamine contamination have been removed by a state-certified contractor. State lawmakers passed legislation in June 2004 that lets sheriff's departments put former meth labs under quarantine, with the quarantine lifted only when state Department of Environment and Conservation cleanup standards have been met and a certified hygienist has tested the property for any remaining signs of contamination. Detective Mike Hughes, environmental officer for the Bradley County Sheriff's Department, says drug units only remove drug manufacturing paraphernalia. "That doesn't count what's evaporated and gotten into the walls, the furniture, the rugs. That's why we have to have a certified hygienist come in and clean it up and test to make sure it's safe," Hughes explains. There is no such state law in Georgia, according to Walker County Sheriff Steve Wilson, who says officials can recommend--but not require--that property owners undertake an extensive cleanup. However, Wilson notes that some counties and municipalities have regulations discouraging the occupation of contaminated homes, citing a law in LaFayette that keeps a home's utilities off until it passes inspection. There are 54 former meth labs in Walker County listed in a registry of the federal Drug Enforcement Administration.
(Web Link)
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"Fluoropolymer Repellents"
Cleanfax (08/07) Vol. 22, No. 8, Ullah, Aziz

Fabrics treated with fluoropolymer repellents are resistant to water and oil, with those applied to carpets intended to make it easier to remove soils. These products contain carbon atoms linked to fluorine atoms, which work similar to umbrellas in repelling water. By reducing the fabric's surface energy, fluoropolymer repellents prevent the penetration or wicking of water and oils and keep dry soils from sticking to the fibers. They make it easy for soils to be removed during spot cleaning, but several factors must be taken into consideration to ensure their effectiveness. The concentration of the fluoropolymer applied to the carpet is important, with Fabpro Manufacturing President Aziz Ullah recommending the application of 0.1 weight percent to 0.4 weight percent of fluoropolymer solids over 50 percent to 70 percent of the surface. The fabric's geometry also is crucial, as application is easier on carpets with flatter, smoother surfaces. However, stain-resistant carpets should not be treated with cationic fluoropolymer repellants; anionic protectors are recommended because they are compatible with the chemicals applied by the manufacturer to resist stains. Fluoropolymer repellents are applied via pad, spray, or foam, but experts discourage their use on high-pile knit fabrics due to the potential for distortion. Additionally, Ullah cautions against the use of such additives as softeners, lubricants, and wax-type repellents with fluoropolymers because they reduce resistance to dry soils.
(Web Link)
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"All Backed Up"
Claims (08/07) Vol. 55, No. 8, P. 49; Herrmann, Don; Moon, Ralph E.

Sewage backups can create health and environmental hazards, as numerous toxic chemicals, human pathogens, organic debris, pesticides, and other materials are found in sewage. It is important for cleaning and restoration professionals to ensure concrete surfaces that come into contact with sewage are restored to their pre-loss condition. Cleaning standards for concrete that focus on the prevention of biological contamination have been put forth by the Institute of Inspection, Cleaning, and Restoration Certification. Concrete surfaces should be cleaned first, meaning that sludge is removed and the surfaces are rinsed and pressure washed. Once the surface is thoroughly cleaned, it should be dried, with biocides and antimicrobials applied last. Post-restoration testing should be undertaken by independent environmental professionals to ensure that the concrete is in its pre-loss condition. While pores and cracks in concrete could allow bacteria to thrive for months after the event, experts point out that concrete's temperature extremes and high pH are not conducive to bacterial growth.
(Web Link)
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"Katrina Survivors Face New Threat: City Demolition"
Wall Street Journal (08/09/07) P. A1; Brooks, Rick

This year, officials in New Orleans expect to raze 10,000 properties damaged by Hurricane Katrina that they have deemed to be a "serious, imminent and continuing threat to the public health, safety and welfare" for being structurally unsound, vacant, or infested with mold. Over 1,700 such properties were listed in the New Orleans Times-Picayune in July, along with warnings that they would be torn down after 30 business days. However, many homeowners are claiming their homes have been demolished without receiving any warning letter from the city or seeing any sign posted on the property. Some insist they possess building permits indicating repairs are underway, and others say their homes sustained only minimal storm damage. Brenda Breaux, the city's chief deputy attorney, says the city is in the process of beefing up its Web site to allow homeowners to track the status of their properties and to provide details on the steps homeowners must follow to remove their homes from the demolition list. The Federal Emergency Management Agency has thus far covered the $6,000 to $10,000 per-home demolition costs, but the city is expected to pick up the tab beginning in September.
(Web Link)
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"Airborne Asbestos Hazard Minimized, but Debris Shows Contamination"
New York Times (07/20/07) P. B6; DePalma, Anthony; Buckley, Cara

New York City Mayor Michael Bloomberg says long-term illnesses tied to asbestos released into the air when a steam pipe exploded near Grand Central Terminal on July 18 are unlikely. Asbestos was not found in the dozen air samples collected by the city Department of Environmental Protection, according to Bloomberg, and only 14 of 56 debris samples tested positive for asbestos. While most of the samples showed asbestos contamination under 1 percent, two samples revealed substantial asbestos levels because they likely contained pipe insulation. The Department of Environmental Protection says the amount of asbestos in samples taken from 41st Street and Lexington Avenue and 150 East 42nd Street and Lexington and Third avenues was 8 percent and 16 percent, respectively. Cleanup following the blast involved the fire department washing the outside of buildings in the area surrounding Grand Central Terminal and street sweepers equipped with high-efficiency filters vacuuming the debris. Additionally, buildings at risk of contamination will be forced to have their ventilation systems and interior spaces inspected for asbestos, with certified contractors paid for by Con Edison--the utility company in charge of the steam pipes--hired to clean any contamination prior to their reopening. There are concerns about the long-term health of cleanup workers in the so-called "frozen zone," as police officers and contract workers were seen removing their respirators to get relief from the midday heat.
(Web Link)
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"Island Reinsurers Expect Minimal Impact From Japan Earthquakes"
Royal Gazette (Bermuda) (07/19/07) Wright, Alex

IPC Holdings Ltd. CEO Jim Bryce predicts that the two earthquakes that hit Japan in July will not significantly affect reinsurance and insurance firms in Bermuda. Payouts to Japanese insurance firms are expected to be minimal because the areas struck by the quake had little residential housing and few businesses. Bryce did warn further natural disasters were likely across the globe, but their impacts on Bermuda insurance and reinsurance firms would be hard to predict. IPC recently issued a profit warning for the second quarter.
(Web Link)
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"The Recurring Spot"
Cleanfax (08/07) Vol. 22, No. 8, Cross, Jeff

There are several things carpet cleaners can do to minimize recurring spots, which often disappear while cleaning is underway only to return once the fabric dries. Cleaning professionals would be wise to use encapsulant preconditioners and acid-side rinsing agents, the latter of which helps eliminate residues from do-it-yourself products used by customers. Fabric protectors also should be applied to hinder absorption, enabling spots to be eliminated before they reach the carpet backing and spread. To keep the backing dry and minimize wicking, experts recommend low-moisture cleaning methods and the use of air movers. Other products that can help remove recurring spots include anti-soiling treatments and powdered poultices that allow soils to be easily removed by vacuum. Cleaning professionals also might want to place a folded white cotton towel on the spot after cleaning and add a weight to it, permitting the towel to pick up any residues.
(Web Link)
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"Science-Based Cleaning Methods That Improve IAQ"
Cleaning & Maintenance Management (07/07) Vol. 44, No. 7, Holmes, Jessica

Research by the U.S. Environmental Protection Agency reveals that indoor air is up to five times as polluted as outside air, which generates concerns about indoor air quality (IAQ) when the fact that people remain indoors a majority of the time is taken into account. Poor IAQ can be tied to pollen, dust mites, fungal spores, dander, industrial and vehicle emissions, and volatile organic compounds (VOCs) in flooring and furniture. These particles can be found imbedded in carpets, resting on hard surfaces, and floating in the air, with headaches, asthma, and allergy attacks among the side effects of inhalation. Experts insist IAQ can be improved when a standardized cleaning system that involves daily vacuuming and dusting of carpets, hard floors, light fixtures, desks, and other surfaces is implemented. Building managers should make sure HVAC systems are sealed, water leaks are fixed to curtail mold growth, and low VOC cleaners are used. Vacuums also are a crucial component of the cleaning process, as the model in use can eliminate allergens or help to kick them up into the air. A study by the University of North Carolina-Chapel Hill found that allergen emissions were not detectable when a backpack vacuum with four-level filtration and the Carpet & Rug Institute's Green Label was used. Experts recommend vacuums with multi-stage filtration systems, with 99.9 percent of particles of at least one micron captured by high-quality filtration systems and 99.97 percent of those as small as 0.3 microns trapped by HEPA filtration systems.
(Web Link)
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"La. Official Says Asbestos Threat Handled Properly After Katrina"
Associated Press (07/13/07) Burdeau, Cain

A Government Accountability Office (GAO) report says the U.S. Environmental Protection Agency and the Louisiana Department of Environmental Quality (DEQ) did not adequately monitor the cleanup of asbestos-contaminated debris from Hurricane Katrina, putting residents, volunteers, and cleanup workers at risk. John Stephenson of the GAO's natural resources and environment office says the agency is most concerned about demolitions undertaken by residents, as monitoring was evident at government-sponsored demolitions. DEQ Secretary Mike McDaniel insists monitoring of demolition and cleanup projects was adequate, underscoring the fact that debris cleared from buildings thought to contain asbestos was wet down to prevent airborne particles and bagged before being disposed at landfills. Additionally, the DEQ says over 20,000 samples collected during demolition projects did not indicate any asbestos contamination.
(Web Link)
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"'We Are Acting Quickly'; FEMA Is Responding Responsibly to Trailer Air-Quality Concerns"
USA Today (08/02/07) P. 11A; Paulison, David

Federal Emergency Management Agency (FEMA) administrator David Paulison defends the agency's response to concerns about indoor air quality in trailers occupied by hurricane victims. Paulison says over 100,000 trailers were made available following the 2005 hurricanes, and complaints about formaldehyde exposure have come from only a small number of residents. He notes that FEMA established a toll-free number for concerned occupants, handed out over 70,000 flyers offering information about formaldehyde exposure, and ceased the deployment of additional trailers. Additionally, the agency is working with industrial hygienists, epidemiologists, medical toxicologists, and environmental health scientists who are studying the trailers and the role played by their design, relative humidity levels, and other factors. Regulatory standards governing indoor air quality in travel trailers have yet to be implemented, but Paulison suggests that long-term air quality conditions in trailers will be the subject of tests down the road.
(Web Link)
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"Find the Right Drying Equipment"
Cleanfax (08/07) Vol. 22, No. 8, Burton, Brandon

When carpet cleaners and water damage restoration specialists determine what drying equipment is necessary, they need to take several things into consideration. Humidity greatly impacts the drying process, and spaces need to be dehumidified to minimize water damage. Airflow also is important, and carpet cleaners face the challenge of maintaining airflow without a great deal of power. The ideal airmover circulates more air at lower amps, does not require several extension cords, and can be transported without hassle. Cleaning professionals need to consider temperature as well, keeping in mind that warm air is needed to facilitate evaporation but can impede dehumidification. Experts say reducing amp draw from airmovers and dehumidifiers provides a good balance. Finally, cleaning professionals should carry moisture sensors, non-invasive moisture meters, invasive moisture meters, and thermo hygrometers to thoroughly measure moisture for the purpose of documentation.
(Web Link)
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"Schenectady Company to Analyze 9/11 Debris"
Times Union (07/18/07) P. C1; Churchill, Chris

The U.S. Environmental Protection Agency (EPA) is entering the final phase of cleanup from the Sept. 11 terrorist attacks by testing homes and businesses for contaminants. Property owners in Lower Manhattan who signed up for the inspections will be served first, but agency spokeswoman Mary Mears says it remains to be seen whether the $7 million earmarked for the voluntary program will be sufficient. Several companies have been tapped by the EPA to test for asbestos and airborne pollutants, but Schenectady, N.Y.-based Northeast Analytical Inc. is the only firm hired to test for lead and polynuclear aromatic hydrocarbons. Properties found to be contaminated will be cleaned by professionals at no cost to the owner.
(Web Link)
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"Low-Moisture Equipment: Becoming the Machine of Choice"
Cleaning & Maintenance Management (08/07) Vol. 44, No. 8, P. 1; Simpson, Jeff

Carpet cleaners hired to clean carpets in apartments with quick tenant turnaround must balance the need to effectively reduce soil and ensure the carpet will last a few years with the need for a fast drying process. When carpets are severely soiled, cleaning professionals often loosen soils with the bonnet and shampoo methods, then eliminate the soils via hot water extraction. Experts say many cleaning professionals are trading in old extractors that release upwards of four gallons per minute for low-moisture extractors that put out only one gallon of water per minute. These newer extractors can reduce dry time to about 30 minutes, depending on the model, versus 48 hours or more with older machines. The most sophisticated low-moisture extractors are systems that incorporate pre-heating, top-mounted vacuums to boost airflow, and lighter wands. According to U.S. Products Vice President of Research Steve Williams, "With all of these components working in harmony, not only do the carpets dry faster--helping to prevent contamination problems--but also less solution used usually means less cleaning chemical used, an essential element of green cleaning."
(Web Link)
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"Stand Up to Floor Care Challenges"
Cleanfax (08/07) Vol. 22, No. 8, Cross, Jeff

To gain a competitive edge, carpet cleaners increasingly are broadening their service options and purchasing a host of new tools to speed up the cleaning process. Hot-water extraction tools are designed for heavily soiled areas, with additional vacuum slots and spray jets employed to quickly remove soils. Encapsulation machines, meanwhile, focus on the appropriate levels of agitation needed to do the job. Cleaning professionals also are equipping themselves with sprayers, applicators, and tile and grout cleaning tools, as well as enhancing their knowledge of carpet cleaning chemistry.
(Web Link)
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"Bankers' Group Revisits Effects of Mold on Real Estate"
Realty Times (07/26/07) Heavens, Al

While concerns over mold and its potential impact on indoor air quality no longer rank among the top concerns of commercial and residential property buyers and sellers, they are still being addressed by groups such as the Mortgage Bankers Association. In July, officials with the industry organization updated a white paper on the effects of mold in commercial and multifamily buildings "to reflect the most current information on mold mitigation, standards for conducting mold assessments, legal issues and insurance issues." Mold and dampness can damage buildings and their contents and result in a loss of market value due to perceptions that the property is no longer fit for habitation. Besides the loss in market value, mold can cause a reduction in cash flow via lost rents, clean-up costs, and litigation from tenants, buyers, or people who claim to have been injured as a result of the presence of mold.
(Web Link)
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© Copyright 2007 INFORMATION, INC.

NewsBreak is another valuable service of Restoration Industry Association.
Masthead photos courtesy of VanDam & Krusinga and Insurance Restoration Services.

August 2007




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RIA NewsBreak is an executive summary of noteworthy articles pertaining to the cleaning and restoration industry distributed monthly to the RIA membership. Our editorial staff monitors nearly 7,000 newspapers, business publications, Web sites, national and international wire services, and other periodicals and summarizes significant articles into an easy-to-read summary.

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