Dry Rot Problems - A systems approach Part 2 by Dave Finley

1. 3RD MUTUAL DRY ROT PROBLEM
A SYSTEMS APPROACH
PART TWO

2. A SYSTEMS APPROACH PART TWO
• 2.1 The Dry Rot Paradigm
• 2.2 Data Analysis
• 2.3 A Pilot Program
• 2.4 Trade-Off Studies

3. 2.1 THE DRY ROT PARADIGM
• The Dry Rot Dichotomy
• The Legacy Dry Rot Program
• Major Repairs Remaining
• What Can Be Done?
• Prevention/Remediation
• A New Dry Rot Paradigm
• Why No Model Metrics
• A New Metric

4. THE DRY ROT DICHOTOMY
• Paint Issues
– Facia, Outlookers, Eaves, Trellises, Minor Beams
• Mostly Cosmetic
• Minor to Moderate Costs
• Common to All Model Types
• Detected By PTP (Prior To Paint)
• Examples
– CDS (Cul De Sac) 212, 2011 Mid-Cycle, 2012 Mid-Cycle

5. THE DRY ROT DICHOTOMY (cont)
• Major Repair Caused By:
– Cracked Stucco, Parapet Leaks, Joints, Overlaps
• Structural
• Catastrophic/High
• Design/Construction Flaws Model Specific
• Detected By Other Than PTP
• Examples
– Villa Paraiso, Garden Villa Types, LH21 Types

6. THE LEGASY DRY ROT PROGRAM
• Grew Out Of Paint Program
• Program Is Building Centric
• PTP Began As Paint Preparation
• 10 % Of Buildings Inspected/Painted Per Year
• Simple And Logical

7. BUT
• 90% Not Inspected Per Year
• Up To 9 Years Between Problems Detected
And Corrections Made
• Waits For PTP to Report Dry Rot Damage
• PTP Does Not Look For Internal Problems
• Major Problems Managed Ad Hoc
• Does Not Use Model Metrics
• Poor Spore Control Practices

8. WHAT HAPPENED
• Major Problems Found Late
• Models With Known Major Problems
– Garden Villa Types-Leaks At Flashing Overlaps,
Water Collection At Support Joints
– LH21 Types-Cracked Stucco/Parapet Leaks
– Villa Paraiso-Cracked Stucco/Parapet Leaks
• Unknown Other Model Problems
• Dry Rot Damage Severe

9. MAJOR REPAIRS REMAINING
• You Can Ignore the Problem But You Cannot
Ignore the Consequences
• Significant Damage Already Done
• What We Currently Know-Cost Remain Total
– Garden Villa Type 53 $1,000,000. 52 $52,000,000.
• Garden Villa 19
• Casa Dorado 2
• El Mirador 15
• Villa Capri 10
• Villa Puerta 7

10. MAJOR REPAIRS REMAINING (CONT)
– LH21 Type 28 $100,000. 21 $2,100,000.
• Villa Nueva 15
• Sierra 7
• Aragon 6
– Villa Paraiso 109 $ 50,000. 108 $5,400,000.
• How Can We Protect Our Remaining
Buildings?

11. EFFORT TO DATE
• Repair Work Started
• Engineering Design Fixes Identified
• RFP to Contractors For Current Year Buildings
• Waiting For PTP To Report Candidate
Buildings

12. WHAT CAN BE DONE?
• Can A Preventative Program Stop Fungus
Spread And Any Further Damage?
• Can A Temporary Fix Stop Further Damage?
• Will a Temporary Fix Reduce Costs?
• Can We Stop Fungus from Infecting Building
With No Dry Rot?
• Can We Identify Other Models With Systemic
Problems?

13. PREVENTION/REMEDIATION
• Early Detection of a Problem
• Analyze Problem
– What Models Need Help
– Which Buildings are Candidates for Prevention
– Which Buildings Offer Greatest Savings
• Stop Fungus
– Dry Out Infected Areas
• Prevent Further Leaks
– Seal Roofs and Parapets, Add Flashing
• Prevent Leaks to Undamaged Buildings
• Start Pilot Program to Investigate Cost Savings

14. A NEW DRY ROT PARADIGM
• Create A Program With Feedback That Reduces
Dry Rot Damage
• Feedback Information Gathered On Models To
Fix Problems More Timely
• Design fixes That Reduce Future Damage
• Continue PTP And New Paint Program
• Include An Early Detection Process
• Set Priorities For Maximum Cost Savings
• Start Pilot Programs to Confirm Cost Savings

16. WHY NOT USE MANOR METRICS?
• A List Of Building Numbers With Costs Not
Informative
• Easiest Way To Normalize Building Size And
Cost
• Track Systemic Model Problems And Costs
• Easy To Relate To- How Residents Are Charged
• Create A Manor Centric Data Base
• Add Model Type to Dry Rot Reports
– Model Type, Manors/Building, Detected By, and

18. THE NEW METRIC
• Cost Per Building/Number Of Manors Per
Building/Cycle( Time Between
Paintings)/Month
• If Costs Go Up – Metric Goes Up
• If Number Of Manors Go Up – Metric Goes
Down
• If Cycle Time Goes Up – Metric Goes Down
• If Cycle Time goes Down – Metric Goes Up

19. THE NEW METRIC (CONT.)
• Normalizes Building Size
• Closely Follows Square Feet Paint
• A Better Tool For Cost Estimating
• Compares Building Size and Model Types

20. 2.2 DATA ANALYSIS
• CDS 212 Pilot Program
• 2011 Mid-Cycle Repair Bid
– 64 Building/18 Model Metrics
– CDS 212 23Building/9 Model Metrics
– 6 Building/2 Model No Dry Rot Found
– Metric By CDS and Map of Distribution
• 2012 Mid-Cycle Repair Bid
– 81 Building/22 Model Metrics
– 51 Building/6 Model No Dry Rot Found

21. CDS 212
• Pilot Program To Estimate Mid-Cycle Costs
• CDS 212 24 Buildings, 160 Manors
• Cost/ Program Confusion
– 14 Buildings At $98,185.00 Or
– 23 Buildings At $40610.00
• CDS 212 Mostly Large Buildings
• Used to Estimate Costs of Mostly Small
Buildings

24. 2011 MID-CYCLE PROGRAM
• 100 Buildings Painted in 2006 (Old Paint)
• 23 Buildings Repaired in CDS 212
– Actual Costs Available
• 64 Buildings Outsourced For Dry Rot Repairs
– Cost Bid Received, Contract Let, Only Estimated
Costs Available, Repairs in 2015
• 6 Buildings Found No Dry Rot
• 9 Year Cycle (Time Between 2015-2006)

25. 2011 MID-CYCLE ANALYSIS
SUMMARY
• 64 Buildings 18 Models 231 Manors
– Average For Metric $4.60/m/c/m
– 4 Models with high Metrics – Casa Rosa (3), Casa
Rosa (2), Cabrillo (3), Villa Fuente (3)
– 10 Building Have Problems
– High Metric- B-5483 $28.92/m/c/m Cabrillo (3)
• CDS 212 23 Buildings 9 Models 154 Manors
– Average For Metric $2.44

26. 2011 MID-CYCLE (CONT)
• Paint Cycle 100 Buildings 25 Models 577 Manors
Average for Metric $2.49/m/c/m
Distribution of Metrics by CDS Shown But Not
Complete
What do we Do With The L- Buildings?

27. 2011 Mid-Cycle Analysis Painted 2006
Repaired 2015
Models Units Buildings Manors High Low Avg. Problem Buildings
Cordoba 4 1 4 $ 1.66
Valencia 4 2 8 $ 4.02 $ 3.19 $ 3.61
Monterey 8 1 8 $ 2.18
Casa Linda 6 3 18 $ 1.22 $ 0.82 $ 1.06
La Princessa 2 2 4 $ 6.75 $ 5.56 $ 6.16
La Reina 3 1 3 $ 6.08
La reina 4 1 4 $ 1.35
El Doble 3 1 3 $ 3.13
Casa Rosa 3 13 39 $ 18.01 $ 0.91 $ 5.52 B-5509 B-5501
Casa Rosa 2 6 12 $ 24.69 $ 1.16 $ 7.81 B-5514 B-5469
Villa Nueva 21 1 21 $ 6.14
Cabrillo 3 9 27 $ 28.92 $ 0.70 $ 7.33 B-5492 B-5479 B-5483 B-5465
Cabrillo 2 4 8 $ 8.98 $ 1.55 $ 4.17
Cabrillo 1 2 2 $ 4.55 $ 2.40 $ 3.39
Villa Fuente 2 3 6 $ 20.33 $ 2.14 $ 12.17 B-5477 B-5492
Villa Fuente 1 4 4 $ 6.00
Casa Milano 6 8 48 $ 9.21 $ 2.11 $ 2.29
La Quinta 6 2 12 $ 4.39 $ 4.05 $ 4.22
$ 114,858.00 64 231 $ 4.60

28. CDS 212
Cordoba 4 1 4 $ 10.24 B-2222
Valencia 4 2 8 $ 5.89 $ 2.27 $ 4.08
Monterey 8 4 32 $ 3.81 $ 0.92 $ 2.11
Casa Linda 6 1 6 $ 0.21
San Sebastion 3 4 12 $ 9.33 $ 4.95 $ 7.56
Seville 4 1 4 $ 10.64 B-2225
Monterey 12 2 24 $ 0.62 $ 0.29 $ 0.91
Casa Contenta 8 5 40 $ 2.84 $ 0.41 $ 1.76
Castilla 8 3 24 $ 1.34 $ 0.61 $ 0.80
$ 40,610.70 23 154 $ 2.44
El Mirador 22 5 110 No Dry Rot Found
Casa Linda 6 1 6
93 501
La Princessa 3 2 6
La Reina 2 1 2 Mising from Paint Cycle
Casa Rosa 2 1 2
El Mirador 22 3 66
7 76
$ 155,469.00 100 577 $ 2.49

29. CDS-226 $ 2.03
CDS-329 $ 4.57
CDS-354 $ 4.57
CDS-374 $ 8.78
CDS-373 $ 1.28
CDS-375 $ 5.53
CDS-361 $ 7.52
CDS-362 $ 3.36
CDS-369 $ 7.20
CDS-368 $ 3.37
CDS-366 $ 7.46
CDS-365 $ 2.64
CDS-364 $ 10.90

31. 2012 MID-CYCLE PROGRAM
• 140 Buildings Painted in 2007 (Old Paint)
• 81 Buildings Outsourced For Dry Rot Repairs
– Cost Bid Received, Contract Let, Only Estimated
Costs Available, Repairs in 2015
• 51 Buildings Found No Dry Rot
• 8 Year Cycle (Time Between 2015-2007)

32. 2012 MID-CYCLE ANALYSIS
SUMMARY
• 81 Buildings 22 Models 279 Manors
– Average for Metric $2.41/m/c/m
– 3 Models With Slightly Higher Metrics – Casa Rosa
(2), Cabrillo (2), San Sebastion (3)
– All Small Buildings
• Paint Cycle 140 Buildings 22 Models 533
Manors
– Average Metric $0.98/m/c/m

33. 2012 Mid-Cycle Analysis Painted 2007
Repaired 2015
Models Units Buildings Manors High Low Avg. Problem Buildings
Cordoba 4 3 12 $ 6.75 $ 1.30 $ 4.07
Valencia 4 5 20 6.58 0.62 $ 2.59
Monterey 8 4 32 3.21 0.38 $ 1.97
Casa Linda 6 2 12 $ 0.29
La Reina 3 2 6 8.19 6.41 $ 7.30 B-3233
Casa Rosa 3 10 30 5.98 0.67 $ 3.11
Casa Rosa 2 3 6 16.72 0.62 $ 8.15 B-3527
Cabrillo 2 4 8 $ 10.61 B-3524 B3532
Monterey 12 2 24 $ 0.38 $ 0.16 $ 0.27
Casa Contenta 8 1 8 $ 0.21
El Doble 4 1 4 $ 2.05
El Prado 2 2 4 $ 1.18 $ 0.86 $ 1.02
Villa Francesca 3 8 24 $ 9.29 $ 0.48 $ 2.80
Villa Lugano 6 4 24 $ 3.55 $ 0.22 $ 1.10
El Prado 3 1 3 $ 0.79
Villa Francesca 2 3 6 $ 1.20 $ 0.52 $ 0.97
Casa Marino 2 1 2 $ 1.00
Casa Siena 2 4 8 $ 1.43 $ 0.90 $ 1.17
Casa Lorenzo 2 10 20 $ 5.36 $ 0.77 $ 1.50
Casa Palma 2 4 8 $ 1.18 $ 0.75 $ 1.08
Casa Monaco 2 3 6 $ 1.59 $ 1.18 $ 1.32
San Sebastion 3 4 12 $ 9.78 $ 4.15 $ 7.52 B-2167 B-2201
$
50,337.00 81 279 $ 2.41

34. Casa Linda 6 4 24 0
Monterey 12 1 12 0
Casa Contenta 6 6 36 0
Corboba 4 1 4 0
Cabrillo 3 1 3 0
Cabrillo 2 1 2 0
Villa Lugano 6 2 12 0
El Prado 3 2 6 0
Casa Monaco 2 6 12 0
Casa Siena 2 4 8 0 No Dry Rot Found
Casa Palma 2 15 30 0
Casa Lorenzo 2 8 16 0
51 165 0
132 444 $ 1.18
Casa Linda 6 1 6
El Doble 3 1 3
Villa Puerta 24 3 72 Missing from paint cycle
Casa Rosa 3 1 3
El Prado 3 1 3
Casa Sienna 2 1 2
8 89
140 533 $ 0.98
2

35. 2.3 DRY ROT PILOT PROGRAM
• Dry Rot Pilot Program
• LH21 Type
• Garden Villa Type
• Villa Paraiso
• Quantifying Dry Rot Damage
• Early Detection Program
• What Do WE Need?
• PTP/Paint Procedures
• Contractor Role in Dry Rot Program

36. DRY ROT PILOT PROGRAM
• Proposed Pilot Program
– Paint New Paint in Test
– Repair Procedures Started With 2011 Mid-Cycle
– LH 21
– Garden Villas
– Villa Paraiso
• We Need Good Ideas
• Look for Novel Approaches
• We Need to Train People
• We Need a Champion to Manage Program

40. QUANTIFY DRY ROT DAMAGE
• Calibrate Damage By Using Test Strips Or Dry
Rot Sensors
• Test Undamaged And Damaged Buildings
• Rank Damage Of Buildings Of Like Models
• Look For Structural/Safety Issues
• Identify Candidate Buildings

42. WHAT DO WE NEED?
• New Tools to Speed Up Repairs
• Better Procedures for Spore Control
• Better Processes Speed Repairs
– Training
– Teams
• New Detection and Localization Methods
– Test Strips, Special Sensors
– Ultra-Sonic Detectors (Not Ready at this Time)
• More Pilot Programs

44. CONTRACTOR ROLE IN DRY ROT
PROGRAM
• Contractors Have Various Capabilities, Labor Rates and Skill
Levels
– Low Skill (Wayne,
– Moderate Skill (Foster,
– High Skill (
• Cultivate Contractors to Provide Competitive Bids for All
Skill Levels
• Low Skill is Appropriate for Most 2011 and 2012 Mid-Cycle
Repairs
• Can We Split Bids Into Skill Levels Involved?
• All Contractors Busy-We May Compete With United
• Coordinate 3rd
, GRF, and United Dry Rot Efforts

45. 2.4 TRADE-OFF STUDIES COMPLETED
• Painting Cycle vs Repairs
• How Are Buildings Selected
• Best Practice
• Best Practice vs Epoxy Fill
• Fungicide vs Pre-Painted Wood

46. HOW ARE BUILDINGS SELECTED?
• 3RD
Mutual Has 1405 Buildings With 6102 Manors
• Buildings Selected Each Year Are a Mix Of Large
And Small
• 10% Based On Square Feet Of Painting Surface
• Approximates 6102/10 Manors Per Year
• Efficient For Painting Program
• Selected Buildings 81 To 317 Per Year
• Buildings Revisited Every 10 Years

47. PAINTING CYCLE VS REPAIR COSTS
• Painting Costs
– 6102 Manors 610 Manors/Yr
– 10 Year Cycle
• PTP $1,031,008.
• Paint $1,698,484.
• Total $2,729,492. = $37.29 /Manor/Month
• Repair Costs
• Estimate $183,000. = $2.50/Manor/Month
• Major Repairs Not Included

48. PAINTING COSTS/REPAIR COSTS
• Paint this Year
– 2015 10 Year Cycle
– 2011 9 Year Cycle Repairs to Complete 2015
– 2012 8 Year Cycle Repairs to Complete 2015
• Paint This Year
– 2015 10 Year Cycle
– Defer 2011 Mid-Cycle to 2016 for 10 Year Cycle
– Defer 2012 Mid-Cycle to 2017 for 10 Year Cycle
– What To Do With Repaired But Unpainted Building

49. PAINTING COSTS/REPAIR COSTS
• Save Costs of Mid-Cycle or Split Cycle Painting
• Save Costs of 2011 / 2012 Mid-Cycle Repairs
• Invest Savings in Prevention
• After 2015, 2011 Mid-Cycle / 2012 Mid-Cycle
Completed Only 5 Years of Old Paint, 2018,
2019, 2020, 2021 and 2022
After 2022 Extend Paint Cycle to 11 Years

50. DRY ROT REPAIR “BEST PRACTICE”
• Four Steps to Dry Rot Repair
– 1. Cut Away Infected Wood
– 2. Spray Area Around Cut With Fungicide
– 3. Replace with New Wood
– 4. Dispose Infected Wood
• Fungicide
• A dilute Solution of Boric Acid and Water (like soapy
Water)
• When solution dries, leaves Borate Crystals which
interferes with some paints

51. TRADE-OFF FUNGICIDE VS PRE-
PAINTED WOOD
Fungicide
Positive
Effective
Low Cost
Negative
Interferes With Paint
Contractors Require
Clause Denying
Responsiblity
Pre-Painted Wood
Positive
May be Effective When
Combined With
Improved Procedures
Less Paint Problems
Negative
Higher Cost

52. TRADE-OFF “BEST PRACTICE” vs EPOXY
FILL
• Best Practice
– Skill Level-Unskilled
– Tools Required- Hammer
– Time Required-Fast
– Overhead- Low
– Spore Control-Good
• Epoxy Fill
– Skill Level- Must be
Trained
– Tools Required- Wire
Brush, Sander, Epoxy
– Time Required-Slower,
need 15-20 Min. to dry
– Overhead-Higher
– Spore Control-Poor

53. BEST PRACTICE/EPOXY FILL
• All Contractors Interviewed Use Best Practice.
They Consider It Faster (Time is Money)
Therefore Lower Cost.
• There May Be Cases Where Cost (In Time or
Inconvenience) Of Epoxy Fill is Effective.
• Ornate/Carved Wood Such As Banister Posts
are Candidates For Epoxy Fill.

54. PCM ORGANIZATION FOR DRY ROT
Not a Good Organization For Dry Rot Program
Two Bureaucracys Fighting For Budget
No One In Charge Or Responsible
mgmt

56. A SYSTEMS APPROACH
PART THREE
What Choices Should We Make
How Should We Be Organized?
What Recommendations Should We Make to
PCM?
What Long Term Decisions Must Be Made?
How Should Budgets Be Allocated?