Asking the Right Questions

When a client comes to me with a property they want to buy, sell, or redevelop, several questions come to mind. These questions generally fall into the categories of development, environmental, and regulatory. Over the years, I’ve compiled a standard list of questions, the answers to which help shape my strategy for assisting my client.  These questions also help focus my client’s attention on myriad issues they may want to consider. Getting on the same page early about the scope and desired outcome of a project can foster a smooth and productive relationship.

Development

    • What are the client’s goals and objectives for the property: sell, buy, short-term hold, or long-term hold?
    • Will the client redevelop the property or will the property remain status quo?
    • Will the client self-finance the purchase of the property or need financing from a lender?
    • What is the due diligence period for the purchase and sale of the property?
    • What is the land use of the property currently and into the future?
    • Will the buyer or seller pay for the investigation and cleanup of the property, if required?
    • What are the development plans for the property, slab on grade of subgrade parking, etc.?
    • Is there insurance money for a cleanup?
    • What is the client’s risk tolerance?
    • Is the client working with an environmental attorney?

Environmental

    • Is there a current Phase 1 Environmental Assessment (ESA) for the property?
    • Did the Phase 1 ESA identify environmental conditions at the property or adjacent to the property?
    • What is the history of the property?
    • Are there environmental and geotechnical reports prepared by others for the property?
    • Is there an immediate threat to human health and the environment from chemicals of concern at the property?
    • Is there potential for third-party liabilities associated with contamination originating at the property or from an adjacent property?
    • Is the contamination confined to one media of concern or several?
    • Is there residual contamination in soil and groundwater from a previous cleanup action?
    • Was a vapor barrier installed under the existing structure or structures?
    • Is there an offshore component to the property?
    • Will construction dewatering be required for development?

Regulatory

    • Will the client conduct an independent investigation and cleanup or require a regulatory closure for the property?
    • When should we bring a regulator into the process?
    • Does the client need protection from regulatory enforcement action or third-party liabilities afforded to them in an Agreed Order or Consent Decree?
    • What is the client’s timeline for regulatory closure relative to the purchase and sale of the property and development schedule?
    • Will the client accept an environmental covenant on the property, if necessary?
    • Is there any correspondence with a regulator regarding the property?
    • Is there a regulator-approved cleanup action plan for the property?
    • What regulatory agency is managing the project: Ecology, EPA, PLIA, etc.?

So the next time we get together and talk about your next project, let me help you cull the answers to these questions so that we can develop a strategy for success. As with all things, one question usually leads to another, but we’ll cross those bridges when we get to them.

Author: Tom Cammarata

The content of this post was distributed as part of SoundEarth’s monthly Sound Environmental Update newsletter. If you’d like to receive future newsletters via email, please click here

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The Lasting Importance of a Deliverable: How Company Reports and Documents Impact Your Brand

chart data desk 590022 webWhat exactly are the visuals of a company?

The website, presenting company profiles, photos, and projects.

The company offices, presenting the company culture and personality.

The in-person consultations and conversations, presenting the opportunity for clients to see and get to know you on a human level.

And then there are the company deliverables, presenting not only the detailed research and well-earned expertise of a company, in the form of reports, tables, graphs, and figures, but also the company brand and “signature.”

All the visuals contribute to the success of a company. However, the report deliverables remain long after projects are completed. Reports can be retrieved from the databases of regulators, organizations, and companies. Reports and project data can have a long history and a vivid memory. So, the company signature lives on. Does that signature reflect the company’s continuity, integrity, dependability, attention to detail, well-thought-out research, conclusions, and recommendations? Or is it more informal, a bit fragmented, disorganized, and inconsistent, sometimes including red-flag words that overstate or misrepresent information—denoting a guarantee, overdue responsibility, or absolute value, leaving the company vulnerable to liability claims?

SoundEarth recognizes the significance of document production on behalf of our clients. Our Project Quality (PQ) department has spearheaded the presentation of these deliverables through behind-the-scenes editing and production skills and expertise—with an eye for balance and beauty in print. High-quality company deliverables are expertly edited for accuracy, clarity, readability, and liability; uniformly formatted with specific color, font, and style palettes; and moved through numerous software programs and draft to final versions, before being presented to clients and regulators. Our team includes editors, QA/QC reviewers, and production coordinators with expertise to produce superior deliverables that have been noted by the Washington State Department of Ecology, developers, utilities, and attorneys throughout the Pacific Northwest.

And now, the PQ department not only supports SoundEarth’s geologists, engineers, chemists, and scientists, but offers training and coaching, technical editing, QA/QC, and template creation services to other companies.

Does your company signature need an upgrade? Let our senior editor structure a grammar/punctuation/sentence seminar to help your writers improve their ability to follow the rules, conventions, and preferences associated with formal English, covering what matters most in documents that directly relate to your company discipline. Our PQ department can also help your company develop report, letter, memo, and table templates to support your individual company style and signature across deliverables, and help with any large production needs you might have.

Contact: Hilda Ballard and Derra Moyers

Pre-Purchase Due Diligence: Are you adequately screening for Business Environmental Risks along with your standard Phase I Environmental Site Assessment?

You’ve probably been through a Phase I with an environmental consultant before, and while it seems like a straightforward process, there are additional Business Environmental Risks (BER) that most property purchasers want to consider.

A BER is defined in ASTM 1527:13 as “a risk which can have a material environmental or environmentally-driven impact on the business associated with the current or planned use of commercial real estate.”

A standard Phase I does not evaluate BERs and treats these as out-of-scope items. So unless you specifically authorize additional review beyond the standard Phase I, you leave your transaction open to costly BER surprises.

These surprises can include that your newly-purchased property has asbestos-containing materials, mold, lead in drinking water, radon, or land use restrictions prohibiting future development such as the presence of wetlands, endangered species, or cultural and historic resources.

Industrial Property BERs

For our clients purchasing industrial properties with active facilities, there are additional BERs to consider. Operational compliance with air, stormwater, and wastewater regulations are an important consideration in the overall purchase price. For example, an inadequate stormwater treatment system or lapsed air permit can spell trouble in terms of fines or capital investment requirements for a new operator-owner. A pre-purchase review of needed permits to support a facility expansion or change of industrial activities is also critical to determining the investment value of the target property.

SoundEarth’s cross-functional due diligence team has deep understanding of compliance requirements for both operating and former industrial sites. Our team is available to help make sure that you get the critical BERs evaluated for your target property—before you seal the deal.

Common Business Environmental Risks

The list below identifies BERs that ASTM considers out-of-scope for Phase I ESAs.

– Asbestos-containing building materials

– Biological agents

– Cultural and historic resources

– Ecological resources

– Endangered species

– Health and safety

– Indoor air quality unrelated to releases of hazardous substances or petroleum products into the environment

– Industrial hygiene

– Lead-based paint

– Lead in drinking water

– Mold

– Radon

– Regulatory compliance

– Wetlands

 

Author: Annika Wallendahl

The content of this post was distributed as part of SoundEarth’s monthly Sound Environmental Update newsletter. If you’d like to receive future newsletters via email, please click here. 

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Have you ever thought “Geez, getting an air permit in Washington State is way too complicated?”

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The Washington Air Regulations are up for public comment and updating. There are two opportunities to comment open right now but closing soon!

This rulemaking is of interest to:

– Industrial and commercial business owners

– Air quality consultants

– Local governments

– Environmental, business, and civic organizations

– General public

Proposed changes to Controls for New Sources of Toxic Air Pollutants WAC 173-460  

– Updates the list of toxic air pollutants

– Recalculates some of the threshold values (acceptable source impact levels, small quantity emissions rates, and de minimis emission values)

– Comments are due by midnight on Tuesday, July 23, 2019. Click here to submit your comments online. 

Exploratory rulemaking for additional changes to Controls for New Sources of Toxic Air Pollutants

– Ecology is looking input on possible changes to its at its air quality program

– These rules are not open for revision very often, so it is a good opportunity to provide input.

– Comments are due by midnight on Thursday, August 8, 2019. Click here to submit your comments online.  

SoundEarth Strategies Acquires EHSI; Environmental Consulting Firms Pursue Expansion Through Strategic Partnership

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SEATTLE, April 25, 2019— SoundEarth Strategies, Inc. (SoundEarth) has acquired EHS-International, Inc. (EHSI). Both companies offer environmental consulting and engineering services. The acquisition is the latest in SoundEarth’s execution of its growth strategy, focused on expansion into new markets through recruitment and acquisitions.

“Our firms really complement each other very nicely,” said Al Davis, CEO at SoundEarth. “Both companies have built success around providing excellent client service, and that will continue to be our top priority.

“EHSI has a strong reputation with the federal government, schools and public agencies. We look forward to growing our partnership in these and other market sectors.”

“It was important for EHSI to find a partner that shares our company values and vision,” said EHSI President Larry Toimil. “This acquisition ensures the long-term future for EHSI. As EHSI graduates from the minority disadvantaged program with this partnership, we look forward to providing more service lines and expanding our reach as a small business.”

The companies will continue to function as separate entities and will continue to operate with their clients, employees and systems.

In addition to pursuing government and public agency work via its acquisition of EHSI, SoundEarth has increased its focus on the industrial sector through strategic hiring from industry and by opening an office near the Tideflats in Tacoma, Washington.

“We certainly anticipate more of these types of transactions in our future,” Davis said. “There are a number of areas where we’ve identified opportunity to diversify our service offerings, our client base, our geographic reach—we’re beginning to develop services in wetlands and climate change, and expanding our stormwater program. Opportunities for adding an office in Portland, Oregon, are very interesting to us.”

Both headquartered in Seattle, SoundEarth and EHSI provide environmental consulting services throughout the Puget Sound region and Pacific Northwest states. Their service offerings include site investigations and remediation, regulatory advocacy and permitting, hazardous materials surveys, due diligence, litigation support, stormwater management and compliance, industrial hygiene services, construction management, air quality, and health and safety planning.

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About SoundEarth Strategies, Inc.

SoundEarth Strategies, Inc. provides an integrated mix of environmental and engineering consulting services in support of land development projects, corporate real estate portfolios and industrial facilities. Harnessing decades of experience with complex and often large-scale projects, the company approach is rooted in providing efficient, high-quality results tailored to each client’s and project’s needs. Founded in 2001, SoundEarth has offices in Seattle and Tacoma.

About EHS-International, Inc.

EHS-International, Inc. is a small business specializing in environmental consulting and industrial hygiene that serves the Pacific Northwest and federal facilities nationwide. EHSI is a recognized leader in environmental assessments, remediation and hazardous materials management. Specialty services include indoor air quality and construction management services.