Friday, July 24, 2009

Legislature Approves Redevelopment Heist of $2.05 Billion; Governor Expected to Sign

Today, the State Legislature passed a devastating take of $2.05 billion in redevelopment funds as part of a 30-bill package that allegedly will close most of the State's current budget deficit.  The State intends to take $1.7 billion in FY 2009-10 and another $350 million in FY 2010-11, which will be deposited in county "Supplemental" Educational Revenue Augmentation Funds (SERAF) to be distributed to meet the State's Prop 98 obligations to schools.  In separate legislation, AB 27 4x, the Senate approved the City of Industry plan to securitize future redevelopment tax increment, but the bill was not taken up in the Assembly.
The Legislature also voted to borrow $1.9 billion from local governments under Prop. 1A, but Senate-approved legislation to borrow $2 billion in local gas tax funds was sent to the inactive file in the Assembly.  The Governor is expected to sign all bills in the budget package.
In response to the unconstitutional taking of redevelopment funds, CRA's legal team has begun preparation of another lawsuit to challenge the State's action.
A table of each agency's estimated redevelopment fund loss for the current fiscal year is posted on the CRA website,, under Hot Topics.     
Provisions Taking $2.05 Billion from Local Agencies
The provisions implementing the $2.05 billion taking of redevelopment tax increment are contained in AB 26 4x and are summarized as follows:
The structure for the redevelopment take is similar to that in last year's budget trailer bill, AB 1389, which attempted to take $350 million from local communities.  The Department of Finance will determine each agency's ERAF payment by November 15 of each year. The formula for calculating the amount each agency must surrender is based half on net tax increment (net of pass-throughs) and half on gross tax increment.  The legislation states that the calculations for FY 2009-10 and FY 2010-11 both will be based for some unknown reason on old State Controller's Office Tax Increment data for FY 2006-07.  (The table we posted earlier this week on our website used more current 2007-08 data.)  
Payments are due by May 10 of the applicable year. Agencies that do not make their payment by the May 10 deadline suffer the "death penalty" and must increase their housing set aside to 25%.
If an agency is unable to pay its required amount because of existing indebtedness, it must adopt a resolution by December 31 of the relevant year.  The legislative body of the redevelopment agency must report to the county auditor by March 1 how it intends to fund the payment.  
The agency can use any available funds to make the SERAF payment.  For FY 2009-10, the agency may "suspend" all or part of the required allocation to its low and moderate income housing fund in order to make the payment.  The Housing Fund must be repaid by June 30, 2015.  If the agency fails to repay the Housing Fund, the required allocation of tax increment to the Housing Fund is increased to 25% for as long as the project area continues to receive tax increment.
A separate, but overlapping (and confusing), section of the bill permits an agency to borrow the amount required to be allocated to the Housing Fund in order to make the SERAF payment.  This provision apparently applies to fiscal years 2009-10 and 2010-11.  It requires a finding that there are insufficient other funds to make the SERAF payment.  (There is no parallel requirement to make findings for the "suspension" in FY 2009-10.)  Amounts "borrowed" from the current year allocation to the Housing Fund under this section must also be repaid by June 30, 2015.  
In an effort to get around the finding in CRA's successful lawsuit against the State overturning the ERAF shift last year, the funds must be deposited into a county Supplemental ERAF and distributed to K-12 school districts located in any project area of the agency in proportion to the average daily attendance of the district.  The funds distributed to schools from the SERAF must be used to serve pupils living in the project area or in housing supported by redevelopment funds.  The total amount of SERAF funds received by a school district is deemed to be local property taxes and will reduce dollar-for-dollar the State's Prop 98 obligations to fund education, the real purpose of the legislation.
The funds in the Supplemental ERAF can not go to cities and counties to compensate them for the Vehicle License Fee swap and Triple Flip as is the case under ERAF.  
An agency that fails to make payments to ERAF must increase the set aside for their Housing Fund to 25% for the remainder of the redevelopment project area's life, in addition to suffering the "death penalty."
The local legislative body may lend the ERAF payment to the agency and in that case, the agency is authorized to repay the legislative body from tax increment.  The legislative body is also authorized to make the payment on behalf of the agency.  The provisions of existing law which permit a joint powers authority to sell bonds and loan the proceeds to redevelopment agencies in order to make ERAF        payments are also available for the 2009-10 and 2010-11 payments.  
Agencies are entitled to a one-year extension on their AB 1290 time limits if they make timely ERAF payments.  This extension does not trigger pass-through payments under Health and Safety Code Section 33607.7.  
The obligation to make the ERAF payment is subordinate to obligations to repay bonds and other indebtedness.  An agency may pay less than the amount required if it finds that it is necessary to make payments on existing obligations required to be committed, set-aside or reserved by the agency during the applicable fiscal year.  An agency that intends to pay less than the required amount in order to pay existing obligations must adopt a resolution prior to December 31, 2009, listing the existing indebtedness and the payments required to be made during the applicable fiscal year.  
An agency failing to timely make its ERAF payment-even if it must do so to pay existing obligations--is subject to what we call the "death penalty."  An agency subject to the death penalty may not adopt a new redevelopment plan, amend an existing plan to add territory, issue bonds, further encumber funds or expend any moneys derived from any source except to pay pre-existing indebtedness, contractual obligations and 75% of the amount expended on agency administration for the preceding fiscal year.  This penalty would last until the required payments have been made.  
More Details Are Forthcoming
CRA will be providing more information about its legal challenge to this latest attempt to take redevelopment funds.  It violates  Article 16, Section XVI of the State Constitution because funds would not flow to redevelopment agencies for the purpose of paying debts and obligations.
Members can learn more about this legislation and possible legal actions to be taken by attending CRA's Legal Issues Symposium in Sacramento, August 5-6.  To register online, click here.

Thursday, July 23, 2009

CALL TO ACTION -- Budget Deal Catastrophic For Cities: Relies On Enron Style Accounting



Our League members in the Capital literally emailed 5 minutes ago, that there are Democratic members that have some concerns about the local government take in the proposed budget and that "it's blowing up." We need your calls into your Legislators offices ASAP. (see talking points below)

And if you get any feedback you can share, our lobbyists would find that very valuable.

Thank you for you help with this.


Subject: CALL TO ACTION -- Budget Deal Catastrophic For Cities: Relies On Enron Style Accounting

Importance: High

This may be our last chance to stop the horrific budget deal the Governor and legislative leaders have come up with. Our League lobbyists are telling us that some legislators are concerned about the cuts to local government, BUT THEY NEED TO HEAR FROM YOU. PLEASE CALL TODAY, AND ASK OTHERS TO CALL, AS WELL!

Budget Deal Catastrophic For Cities:

Relies On Enron Style Accounting                                    

The Legislature is expected to vote TODAY on a budget package that will put cities at grave risk. The plan, put together by the Governor and legislative leadership earlier this week, attempts to close California's $26.3 billion deficit with what can only be described as Enron-style accounting gimmicks.

The budget provisions include unconstitutional grabs of local gas tax and redevelopment funds as well as a Proposition 1A loan of property taxes to give the appearance of a balanced budget. The League has not seen actual budget language yet.  However, all indications suggest that the current budget proposal:

1.    Recklessly borrows $1.9 billion of local property taxes

2.    Illegally takes $2 billion of local gas tax (HUTA) funds

3.    Illegally takes $1.7 billion of local redevelopment funds

These "budget solutions" are nothing more than illegal and reckless Enron style accounting gimmickry that threatens vital city services to the tune of $5.4 billion.

California is at a crossroads.  The Legislature needs to enact an honest, balanced state budget that respects the will of the people, not a budget full of bad debt and illegal gimmicks.

Take Action NOW to


ACTION:  What you can do TODAY.

1.    CALL YOUR ASSEMBLYMEMBER AND SENATOR and tell them that enough is enough.  It's time that they reject the current budget proposal and adopt a real budget solution that doesn't break the law and mortgage our children's future by recklessly borrowing and stealing from local government.

Legislators are scheduled to meet with their caucuses at 12 p.m. TODAY (July 23).  Please call them between 9 a.m. and 12 p.m.

2.    FORWARD THIS CALL TO ACTION TO PEOPLE WHO CARE ABOUT PROTECTING CITY SERVICES AND URGE THEM TO DO THE SAME. This may be our last push before the Legislature votes on the budget so please MAKE IT COUNT!


Reject borrowing.  It is fiscally irresponsible and reckless to borrow from local government. Cities simply cannot afford to bail the state out of its chronic budget mess and the state is incapable of paying the loan back, plus interest, when it matures in three years. 

Reject the illegal gas tax take.  Taking $2 billion of local gas tax funds that are used to repair our streets and traffic signals, power our street lights and reduce traffic hazards is not only reckless, but illegal.  More than 180 cities have passed resolutions authorizing their city attorneys to assist with a lawsuit.  Make no mistake about it, cities are ready and will go to court the day after the budget is signed to block this unconstitutional raid.

Reject the illegal redevelopment take.  Robbing cities of their local redevelopment funds that are used to remove blight, build affordable housing and revitalize communities is not only wrong, but blatantly and recklessly disregards what the courts have already determined is unconstitutional.  The California Redevelopment Association has vowed to once again take swift legal action if redevelopment dollars are taken.


+ + + + + + + + +

Ben Wong

League of California Cities

Regional Public Affairs Manager

Los Angeles County Division - Executive Director

P. O. Box 2336

West Covina, CA 91793-2336

213-300-VOTE (-8683) Cell

213-559-8989 Fax

916-658-8200 Phone




Working together to restore and protect local control for cities through education and advocacy to enhance the quality of life for all Californians


AIA/LA opposes Redevelopment funding cuts in California Budget

July 22, 2009
Speaker of the Assembly Karen Bass
Assembly District #47
California State Capitol
Sacramento, CA 95814
Tel: (916) 319-2047 Fax: 916-319-2147
Dear Assembly Speaker Bass:
On behalf of the Board of Directors of the Los Angeles Chapter of the American Institute of Architects (AIA/LA), we are writing to express opposition to the proposed budget under consideration by the California Legislature.  AIA/LA is acutely aware of the budget and economic challenge that exists. However, we cannot support a budget which delays economic investment and job recovery in our cities and California. In particular, by cutting $1.7 billion from statewide community redevelopment funds the budget as proposed will severely delay economic growth, revenue growth, and the leveraging of local dollars into new projects and jobs. 
Redevelopment projects are vital to the recovery of the Los Angeles region. By siphoning $72 million from the Los Angeles' redevelopment budget, the State will preclude hundreds of millions of dollars in private investment, forgo the creation of thousands of design and construction related jobs, and exacerbate an 11.4% unemployment rate. Additionally, given that redevelopment projects encompass blighted areas, the burden of these cuts fall disproportionately on under-served Los Angeles communities including Crenshaw, South Los Angeles, the Eastside, and the Northeast San Fernando Valley. This is just not fair nor reasonable.
Architects know there is no easy solution to this crisis. Architects know that all will have to accept cuts and sacrifice. But, it seems penny-wise and pound-foolish to cut the very funds that in both the short-term and long-term create revenue streams for local, county, and state government.
With a sense of confidence in California's bright future we ask you to consider a broader range of revenue enhancements and to eliminate from the budget reductions to what are in essence investments in our collective economic and environmental futures.
Should you or your legislative assistants have questions please do not hesitate to contact Will Wright, Director of Government & Public Affairs for AIA Los Angeles via phone at 213.639.0777.
Very truly yours,
John E. Kaliski, AIA
AIA Los Angeles

Putting Washington to Work for Architects: A Mid-Year Federal Update from the AIA

The American institute of ArchitectsThe American Institute of Architects

Dear Will Wright,

As our nation grapples with the most challenging economic climate in a generation and real environmental issues, the AIA staff and many very involved members have spent the first half of 2009 fighting for policies that not only reflect the values we hold dear, but will create and preserve jobs for architects across the country.

The economic collapse of 2008 and the inauguration of a new president have spurred policymakers to propose major reforms to stimulate the economy, improve the nation's energy security, rebuild America's infrastructure, and reform the health care system. In each of these debates, the AIA has served as the credible voice for architects before Republicans and Democrats alike and made sure that our leaders understand and use our expertise in solving the critical issues facing the nation.

Together we are making a real difference: our nation's leaders are listening to architects like never before.

While together we have moved the ball forward on many key issues, there is much more work to be done. The AIA's advocacy efforts will continue, but in order to truly speak as one AIA about the values important to all architects, we need members like you to take part in the advocacy process at the grassroots level. If you would like additional information about how to get more involved to advocate for your profession, please contact Adam Melis, Director of Advocacy Outreach.

You can also keep reading the Angle for the latest news and information about the AIA's federal advocacy agenda. Follow the AIA Federal Relations team on Twitter @aialobbyist. And do not hesitate to contact Andrew Goldberg of the AIA federal advocacy team with questions or comments.

Here are some of the AIA's key accomplishments in the first half of 2009:

Putting America Back to Work: The AIA's Rebuild and Renew Plan for Restoring our Economy and Greening our Communities

From the moment they took office, the new president and Congress have focused on turning around the economy. The AIA has been at the center of the debate, ensuring through its Rebuild and Renew campaign that any economic recovery plan must invest in our communities.

In February, after nearly four months of intense debate, President Obama signed the American Recovery and Reinvestment Act of 2009 into law. The law contains a number of critical policies, directly advocated for by the AIA, which will put architects and their firms back to work rebuilding and renewing their communities, including:

  • Allowing states and school districts to use billions of dollars to modernize, renovate, and repair schools;
  • Investing $8.5 billion for green and affordable housing projects, lowering homeowners' energy bills;
  • Providing billions of dollars to states and communities to make energy-efficient upgrades to buildings and communities; and
  • Offering billions of dollars in investments in mass transit systems and the construction and renovation of inter-modal transit facilities.
  • During the stimulus debate, the AIA brought together more than 80 organizations from across the political spectrum to advocate for school modernization and green buildings. Congress received more than 11,000 messages from your fellow AIA members in support of building-related provisions, ensuring that when the final bill was drafted, the AIA was at the table.

    The final economic recovery bill will create or save as many as 14,000 architect jobs. But we know that economic recovery will be a long, painful process. So the AIA is also working to encourage the federal government to loosen the tight credit markets which are putting financing for construction projects in jeopardy.

    Greening America's Homes

    One of the AIA's top priorities—and one of the three issues AIA members brought to their elected representatives during 2009 Advocacy Week—is passing legislation to encourage the design and construction of energy-efficient residences. Over the past two years, the AIA has worked with Congressman Ed Perlmutter (D-CO), an honorary member of AIA Colorado, to craft the GREEN Act. This legislation helps consumers build, buy, or remodel their homes to make them more energy-efficient—and use architects to do it. Thanks to the support of thousands of architects who called on Congress to pass this bill, last month the House of Representatives approved the GREEN Act.

    The AIA has also worked to create new, and expand existing, tax incentives for the design of green buildings. Legislation enlarging the Energy Efficient Commercial Buildings Tax Deduction has been introduced in both bodies of Congress, and the AIA is leading efforts to advance a bill to provide incentives for the design of energy efficient commercial buildings located near transit facilities.

    Making Health Care Work For All of Us

    Congress and the administration agree that making health coverage more accessible and affordable is a top priority, even as they disagree on how to change it. As health care costs surge, the AIA is working with its allies in the small business community to urge Congress to pass legislation that will provide more affordable health care for American businesses and workers. The AIA is also educating lawmakers about the benefits of well-designed hospitals and health care facilities, showing that architects are part of the solution.

    Building 21st Century Schools

    We know the benefits that energy-efficient, high-performance schools bring to students, teachers, and the environment. And thanks to your efforts, our nation's leaders are getting the message. Legislation that the AIA has championed to direct nearly $6.4 billion to school districts across the country to modernize existing schools was approved by the House of Representatives in May.

    The House also approved legislation backed by the AIA to help architecture and engineering schools develop programs to ensure their graduates are ready to design the sustainable buildings and communities of the future.

    Knocking Down Barriers to Small Firms

    The AIA has taken the lead in reforming a procurement rule that creates unnecessary burdens on firms that work with the federal government. By allowing retainage to be held on design fees, this rule allows federal agencies to withhold up to 10 percent of the fees design firms charge for performing architectural and engineering services, placing a crippling, unnecessary burden on small firms attempting to design federal buildings.

    After bringing the issue to the attention of the Small Business Administration and Capitol Hill in 2008, the AIA is working with federal officials in 2009 to see the rule changed so that architects will be paid for the work they do as they do it.

    Building a 21st Century Transportation System

    Our transportation system is broken, with crumbling infrastructure, sprawl, and congestion choking our economy. But reform is on the way. The AIA is working with Congress to advance legislation that would begin the process of rebuilding and renewing our nation's infrastructure.

    In June, the House Transportation Committee released a bill that echoes the results of the AIA's 2008 study, Moving Communities Forward. It recognizes what we architects already know: that well-designed transportation systems make livable, prosperous communities. The legislation includes polices that would integrate planning and design into transportation projects and community development, which in turn strengthens both, creating great places that are sustainable, economically vibrant, and safe.

    While the House is moving quickly to advance this legislation, the Obama administration and some in Congress want to wait another 18 months before pursuing this bill. Given the desperate need for transportation reform and the potential for putting people back to work, the AIA is calling on Congress and the White House to act now.

    Leading in Times of Disaster

    Highlighting the vital role that architects play in helping communities recover and rebuild after catastrophes, the House Homeland Security Committee called on the AIA to advise it on ways that FEMA and state and local emergency response agencies can utilize the talents of design professionals to help assess building damage, create temporary housing, and lead the rebuilding process.

    As Erica Rioux Gees, AIA, told the Committee in July, "Architects and their allied design and construction professionals are ideally and uniquely suited to help FEMA, state and local emergency management agencies, and communities address these challenges." For more information on how the AIA helps communities in times of need, visit the Communities by Design Disaster Assistance Web page.

    Designing for Diplomacy

    Putting architects back in the position of leaders on design, the AIA released a major new report this month to help the State Department design and build 21st Century embassies. The report, Design for Diplomacy: New Embassies for the 21st Century, calls on the Department to integrate embassy security with design excellence. It includes 59 recommendations made by the AIA's 21st Century Embassy Task Force, an unprecedented collaboration of more than 50 leading architects, engineers, landscape architects, ambassadors, diplomats, Foreign Service personnel, public art experts, and art and architectural historians.

    The AIA is sending the message that design excellence demonstrates that the U.S. can provide diplomatic facilities that are secure, sustainable, and symbolize America's vitality, enduring strength, decency, and innovation.

    Protecting and Revitalizing the U.S. Capitol

    The AIA's efforts to ensure that the next Architect of the Capitol is a licensed architect picked up steam as key Congressional leaders expressed their support this spring for ensuring that the next Architect is licensed. AIA members from across the country have made the case to their elected leaders, including Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid, that the Architect of the Capitol needs to be licensed, and the AIA will continue fighting to ensure that the stewardship of the U.S. Capitol remains in the hands of someone with the education, training, and experience that only a licensed architect can bring.

    The AIA's government advocacy program is driven by you, and it needs your support and participation to succeed. By staying involved year round—responding to action alerts, calling and meeting with elected officials, participating in ArchiPAC—you help yourself and all architects have a voice on important issues. If you are already active in these areas— thank you for all you are doing. If not, then please consider becoming more involved! Send an e-mail to the AIA'sGovernment Advocacy team to learn how you can get involved.

    For More Information

    AIA Federal Advocacy Agenda
    Contact your members of Congress on key issues


    Peter J. Arsenault, AIA, NCARB, LEED-AP
    2008-2009 National Vice President, The American Institute of Architects
    2008-2009 Chairman, AIA Board Advocacy Committee


    The American Institute of Architects
    1735 New York Avenue, NW
    Washington, DC 20006


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    Monday, July 20, 2009

    Assembly Bill (AB) 758 - Skinner

    Home Energy Efficiency Bill to Save Money, Reduce Carbon Emissions

    At the beginning of July, the California State Senate Energy, Utilities and Communications Committee (EU&C) passed Assembly Bill (AB) 758, legislation that will make existing buildings more energy efficient and less expensive to operate. The bill, sponsored by Global Green USA and authored by Assembly Member Nancy Skinner (D- Berkeley), will require the California Energy Commission (CEC) to develop an energy efficiency program for all existing residential and commercial buildings.

    Energy use in buildings is the largest single global warming pollution source in the United States accounting for 48% of all greenhouse gas emissions nationally. AB 758 would require the California Energy Commission to establish a regulatory proceeding, by March 1, 2010, to develop and implement a comprehensive program to achieve energy savings in the existing residential and commercial building stock that falls significantly below current Title 24 building standards. The bill would also require the California Public Utilities Commission (PUC), by January 1, 2011, to authorize each electrical corporation to provide a targeted number of low- or no-cost energy efficiency audits each calendar year. Learn More.

    Thursday, July 16, 2009

    POC Meeting - July 14 Notes

    Dear AIA/LA POC:

    Thank you for attending the POC meeting on Tuesday, July 14th.  I'm including meeting notes for your review.  Additionally, it was requested that I forward the following information on Integrated Project Delivery for your consideration:

    AIA/LA Political Outreach Committee
    Tuesday, July 14 (6pm)
    Meeting Notes

    In attendance:  Steve Johnson, Jann Williams, Ric Abramson, John Kaliski, Michael Stein, Brett Shaw, Paul Danna, Stuart Magruder, Christophe Cornubert, Shiraz Tangri, Merry Norris and Will Wright

    Items Discussed:

    1.  Legislative Day at City Hall is Friday, October 16, 2009
    2.  Issue Briefs to be further developed for Board review include:
    The overall central theme for 2009 slate - The Value and Impact of Design (preamble upon which all other issue's will relate to)
    A.  Architects Serve the City, advocate for more architects to be placed on city commissions
    B.  Project Delivery Methods - an expanded set of available project delivery methods and alternatives will better allow for enhanced design and provide best value to the public sector
    C.  Procurement of Professional Services - a continuation of last year's issue brief, updating it to reflect the era of a new City Attorney
    D.  Implementing Distributed Power Generation - identifying opportunities to remove the net metering cap and advocating for a Feed-In-Tariff policy
    E.  Lessons Learned from the Economic Stimulus Package - What does it mean to anticipate Capital Improvements?  How can City of LA take better advantage of all the 'visions' it currently has?  Or is a new, more comprehensive vision needed??  

    What exactly are the capital improvement projects that the City of LA wants to do, but are currently unfunded?  An emphasis on community-building infrastructure.  Current gov't emphasis on programs, not projects.  Is there is a complete lack of vision?  Especially when compared to  Sarkozy's Vision Plan for Paris.

    Action Items/ Next Steps:

    1.  Send to the AIA/LA POC the article on Integrated Project Delivery written by Zigmund Rubel, AIA
    2. Meet with Jane Usher to discuss City Attorney Trutanich's thoughts on expanding the toolbox of available Project Delivery Methods that City can utilize.
    3.  Further discuss with Roger Sherman his idea to establish a joint website with City of LA's Mayor's Office highlighting recent, ongoing and future significant and high quality public projects commissioned by major cities of the world.  Identify and pursue potential grant opportunities to fund this proposed project.  Work with Roger Sherman's resources at  UCLA to help make this project happen.
    4.  For the July 21 AIA/LA Board Meeting - have the following prepared for their cursory review:
    NAME OF ISSUE, one or two sentences detailing concern
    PROPOSAL, two to four sentences detailing the rudiments of the proposal
    5.  The "Discussion" and further elaboration of the proposal will be drafted in subsequent weeks, ready for POC review at the Tuesday, August 11th meeting.

    (Please let me know if I am overlooking anything that we may have discussed.)

    REMINDER - our next meeting is:

    AIA/LA Political Outreach Committee meeting
    Tuesday, August 11 (6pm)
    AIA Los Angeles
    3780 Wilshire Blvd., Suite 800
    Los Angeles, CA  90010


    Jun 11, 2009 
    By: Zigmund Rubel, AIA, Anshen+Allen Architects

    Harnessing the collaborative power of technology requires an integrated team. As we look at embracing building information modeling, or BIM, there is no clear structure of who owns the model nor which model governs in a particular situation. There are two basic model types--design and fabrication--each of which has a different purpose, although they share the desired outcome of facilitating the design and construction of a project. 

    However, the models need to be compatible to give the project the value they both have. In our new world of accountability and predictability, we need the constructor and the designers working together to reduce reactivity and allow us to model once and get the detail right from the outset. In order to leverage the unique skills of the architect as "generalist," it is logical to expand the team with a specialist focused on building- and system-specific know-how. Assembling an integrated team is the first act of integrated project delivery, or IPD. 

    The logical benefit of this technological application to project delivery is added value. We have found that projects that are delivered with collaborative methodologies last longer and cost less to operate. IPD leveraging technology can ensure that energy performance is met. Preliminary data from the Energy Star program indicates that buildings with an Energy Star rating can garner higher leasing rates than those with no rating, according to RICS research.

    All IPD projects are custom responses to their unique requirements. There are some projects that can be done effectively and efficiently in a design bid and build environment. These projects need a market response to prescriptive requirements. Some of these projects may not be using BIM to its fullest potential. IPD is best applied to projects where there is flexibility in process, BIM with those where speed and cost containment are greater concerns. 

    Collaboration is a fundamental requirement of integration. Harvesting technology for the design and construction process requires collaboration because it is still evolving. Research from the Construction Industry Institute has shown that collaborative projects have fewer claims, shorter schedules and more job satisfaction. Building information modeling can only be leveraged by those who are using it. Anyone considering putting a team together should consider the benefits of integration and how it can further enhance a team's performance and outcome when delivering their project. 

    Zigmund Rubel is a principal at Anshen+Allen Architects. He is on the AIA California Council IPD Steering Committee and was one of the contributing authors to the AIA/AIACC IPD Guide.

    Building Information Modeling & Integrated Project Delivery - An Advantage to Your Business in a Challenging Economy

    The design and construction industry is changing for the better. Companies that have embraced BIM and IPD are reaping benefits on the design, delivery and operation of every project. Tangible, measurable and repeatable results.

    The 2009 Business of BIM Conference, will be held September 21-22, 2009, in San Francisco and is presented by McGraw-Hill Construction. This event will provide you with an in-depth look at McGraw-Hill's research on the specific business aspects of BIM and IPD, with a focus on benefits, emerging contracting strategies, and actual case studies.
    Click here to register.