Fire Elimination in Wood Frame Construction

Fire Elimination in Wood Frame Construction

Michael Feigin, Chief Construction OfficerAvalonBay Communities

AGENDA

THE CHALLENGE

HOW AVB RESPONDED TO THE CHALLENGE

THE COMPONENTS OF FIRE ELIMINATION

UNDERWRITING CONSIDERATIONS

WHAT’S NEXT?

3 EXPANSION MARKET

➢ 25+ YEAR FOCUS ON ATTRACTIVE COASTAL MARKETS

AVALONBAY AT A GLANCE

$31BTOTAL ENTERPRISE VALUE

291APARTMENT COMMUNITIES

$2.4BUNDER CONSTRUCTION(1)

20U.S. MARKETS

12.9%ANNUALIZED TOTAL SHAREHOLDER RETURN

SINCE IPO

5.2%ANNUALIZED DIVIDEND GROWTH

SINCE IPO(2)

Source: Company reports.Data as of December 31, 2018Initial public offering (IPO) occurred on November 11, 1993.Total shareholder return calculated as the change in the value of the period stated with all dividends reinvested.Dividend growth includes AVN & BYA dividends prior to merger.(1) Excludes projected Total Capital Cost for 15 West 61st Street of $620 million.(2) Includes 2019 dividend increase.

LEGACY MARKET

2018 NEW

CONSTRUCTION HARD COST

SPENDREGION

CA $115M17%

FL $5M1%

MA $120M17%

DMV $38M6%

NJ $132M19%

NY $148M21%

TX $4M1%

WA $120M18%

2018 NEW

CONSTRUCTION HARD COST

SPENDPRODUCT

TYPE

$514,993,939

$170,968,624

75%

25%

THE CHALLENGE

WOOD IS ALMOST THE PERFECT BUILDING MATERIAL.

IT’S SUSTAINABLE.

IT’S VERSATILE.

IT’S STRUCTURALLY STRONG.

IT’S INEXPENSIVE.

BUT…..WOOD BURNS.

WOOD FRAME CONSTRUCTION

FIRE CODE FOCUSES ON

NFPA 13 AND 13R

FIRE DETECTION

SLOWING THE PACE OF FIRE

PROTECTING THE COMPLETED STRUCTURE

A fire that starts during construction and prior to completion of life safety

systems almost always results in complete or almost complete

destruction of the property and a great threat to human life.

Large Construction Fires 2017 – March 8, 2019

1

2

3Maplewood, NJ

January 2017

1 Month Before the fire

1

2

3

Maplewood, NJ

February 2017

1 Day After the fire

Maplewood, NJ

February 2017

7 Months After the fire

“”

We will not have another destructive fire on an AVB

construction project.

CHANGE THE DISCUSSION

FIRE AVOIDANCE

FIRE SUPPRESSION

FIRE MITIGATION

FIRE CONTROL

FIRE ELIMINATION

FIRE ELIMINATION

PROGRAM: 4 CORE

COMPONENTS

ELIMINATE SOURCE OF FIRES

SECURITY

DETECTION

SUPPRESSION

ELIMINATE THE SOURCE OF FIRES

EXTREME HOUSEKEEPINGREMOVE FUNDAMENTAL FUEL SOURCE FOR FIRE

EVERY PROJECT EVERY MONTH

RATED 1 -10

ELIMINATE THE SOURCE

OF FIRES

NO DIRECT FIRED HEATERS ON JOB SITES.

ELIMINATE THE SOURCE

OF FIRES

ONLY USE INDIRECT FIRED, DUCTED HEAT SOURCE

FLAMELESS HEATER IN

ACTION

ELIMINATE THE SOURCE

OF FIRES

NO MORE HOT WORKS ON PLUMBING

SECURITY Enhanced

Perimeter

Fencing

SECURITY:STATE OF THE

ART HD PERIMETER

CAMERAS

COSTS LESS THAN SECURITY GUARDS

DOESN’T SLEEP OR TAKE BREAKS

FULL AREA COVERAGECENTRAL MONITORING OF MULTIPLE CAMERAS

HD 24/7 VIDEO PLUS MOTION SENSING

SPEAKER LIVE, REAL TIME WARNINGS

DETECTION:PILLAR

INDUSTRIES

DETECTS:TEMPERATURE, WITH SUDDEN INCREASE ALERTMOISTURE AND HUMIDITYAIRBORNE PARTICULATES

13 AVB ACTIVE SITES

MESH NETWORK OF 990 PODS

1 POD = 2,000 SQ. OF COVERAGE

AVERAGE PROJECT HAS ABOUT 100-150 PODS WHEN COMPLETE.

System Components

PODs

PODs collect environmental

metrics and relay wirelessly to

the Gateway

Gateway

Gateway collects POD data and

relays to the cloud based

platform via cellular

Cloud Platform

Pillar Platform overlays environmental

data on floorplans to provide a real

time view into jobsite conditions

Alerts

Pillar pushes alerts to cell and

email when dangerous

conditions are detected

Work Days

Weekends

Stable Temp

Stable Humidity

Data Outputs

SUPPRESSIONMFIRE

ESSENTIALLY RENDERS WOOD FIREPROOF.

A SPRAYED OR DIPPED (3 SECOND) APPLICATION FOR WOOD.

MUCH LESS EXPENSIVE THAN ALTERNATIVES.

SUPPRESSIONMFIRE

DOES MFIRE REALLY WORK?

DOES MFIRE AFFECT THE STRUCTURAL INTEGRITY OF WOOD?

DOES MFIRE INCREASE MOISTURE CONTENT OF THE WOOD?

IS MFIRE SAFE FOR WORKERS AND RESIDENTS?

UNDERWRITING CONSIDERATIONS

HOT WORKS

HOUSEKEEPING

SECURITY

DETECTION

SUPPRESSION

HOT WORKS

HOW ARE YOU LIMITING HOT WORKS ON YOUR PROJECT?

WHAT ARE YOUR HOT WORKS PROGRAM REQUIREMENTS?

ISSUE HOT WORKS PERMIT.

PROPER TRAINING AND CERTIFICATIONS.

PROPER EQUIPMENT.

AREA CLEAN, NO COMBUSTIBLES.

FIRE WATCH AND FIRE EXTINGUISHERS.

ARE YOU USING ANY OPEN FLAME HEATERS?

HOUSEKEEPING

DO YOU HAVE A WRITTEN HOUSEKEEPING POLICY AND PROGRAM?

DO YOU MAINTAIN RESPONSIBILITY FOR YOUR HOUSEKEEPING PROGRAM, OR DO YOU DELEGATE TO SUBS?

HOW DO YOU TRACK THE SUCCESS OF YOUR HOUSEKEEPING PROGRAM? HOW OFTEN? HOW DO YOU REPORT RESULTS? WHAT DO YOU DO WITH THE RESULTS?

SECURITY

DO YOU USE SEMI-PERMANENT OR PERMANENT FENCING TO SECURE YOUR SITE?

WHAT IS THE MAXIMUM NUMBER OF ENTRY POINTS THAT YOU ALLOW?

DO YOU HAVE PERIMETER CAMERAS? ARE THEY CENTRALLY MONITORED? DO YOU GET REAL TIME ALERTS?

DO YOU HAVE SECURITY GUARDS ON SITE? WHERE AND WHEN?

DETECTION

DO YOU HAVE A FIRE WATCH ON SITE? WHEN ARE THEY ON DUTY? DO THEY HAVE FLIR SENSORS? ARE THEY CERTIFIED OR TRAINED? WHAT IS THE CRISIS PROTOCOL?

DO YOU USE ANY TYPE OF SENSOR ON SITE TO ACTIVELY MONITOR CHANGES IN TEMPERATURE? WHEN ARE THEY INSTALLED? DO THEY PROVIDE 100% SITE COVERAGE? DO THEY PROVIDE INSTANT ALERTS IF TEMPERATURE EXCEEDS A CERTAIN THRESHOLD?

SUPPRESSION

DO YOU USE OSB BOARDS OR TRUSSES?

DO YOU USE FIRE RETARDANT TIMBER OR ANY OTHER FIRE PROTECTION OTHER THAN WHAT IS REQUIRED BY CODE?

DO YOU USE ANY APPLIED FIRE SUPPRESSANT OR PROTECTOR?

WHAT’S NEXT?

LOCAL LEGISLATIVE EFFORTS TO BAN OR SEVERELY LIMIT LIGHT GAUGE WOOD FRAME CONSTRUCTION.

FOCUS ON AMENDING FIRE CODES WITH STRICTER REQUIREMENTS AND ENHANCED PROCESSES.

LOCAL FIRE OFFICIALS AND BUILDING DEPARTMENTS CRACKING DOWN.

EFFORTS BY ALTERNATIVE MATERIAL SUPPLIERS (CONCRETE AND STEEL) TO FORCE A MOVE TO NON COMBUSTIBLE MATERIALS.

FOCUS ON THE ROOT CAUSE OF

FIRES

HEAT AND FLAMES ON CONSTRUCTION SITES – ELIMINATE OR CONTROL

THIRD PARTY INTERVENTION – SECURITY

TIMELY NOTIFICATION – DETECTION

PROVEN WOOD PROTECTION

FIRE ELIMINATION