corporate sustainability report - Arizona Environmental Strategic

T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
CORPORATE SUSTAINABILITY REPORT
KITCHELL CORPOR ATION | 2010 - 2011
K I TC HE LL I 1 7 0 7 E. H ighlan d I P ho enix, A Z 85016 I 602- 222- 5 3 0 0
Conservation and Pollution Prevention
1. Trip reduction program participation
and innovation
Kitchell Corporation, located in Phoenix, AZ, participates
in a trip reduction program each year, reporting survey
results and other statistical data to Maricopa County. In
May of 2010 and 2011 nearly 79.70% of building occupants at Kitchell Contractor’s office at 1707 East Highland
responded to the survey, totaling 320 people. Of those
respondents, forty-one (41) people carpool, five (5) people ride their bike and/or bus, and ten (10) people drive
an electric or CNG/alternative fuel vehicle, have a Compressed Work Week, take the Light Rail or Telecommute.
Based on this survey, 22% of the building occupants participate in Kitchell’s trip reduction program. An estimated 277,456.40 miles were saved over 2010 – 2011. As a
goal we would like to increase participation by 2-3% each
year until we reach the County goals for a large business.
In order to help make this program a success, Kitchell provides incentives to employees who participate in the trip reduction program. Incentives include covering half the cost
of a bus or light rail ticket, a monthly prize drawing for a
$50 American Express Gift Card, and an annual social event
for trip reduction program participants where lunch is provided and additional prizes are awarded.
Kitchell feels that by supporting our employees in their efforts to be green and reduce their individual impact on the
environment, we are also helping our community and supporting the emissions reductions goals for our region.
T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
2. Programs to reduce regulated discharges to the environment
Kitchell Environmental Services (KES), an arm of Kitchell
Corporation was formed in response to an increasing need
for environmental stewardship. Kitchell recognized that
various regulatory requirements were increasingly affecting the construction industry. Kitchell recognized the need
to have a specialized team within the company who would
focus solely on ensuring compliance with environmental
regulations, especially dust and stormwater pollution prevention. KES spearheads initiatives to surpass the minimum
requirements of environmental regulators by implementing company-wide environmental standards for operations.
KES had a team of five in 2010 and 2011 (downsize of five (5)
people from 2009), to support the company in environmental compliance.
The key focus
of Kitchell
Environmental
Services is to
manage the
following three
regulated
discharges to the
environment for
Kitchell Corporation.
A. The Stormwater Pollution Prevention Management. This involves consulting, inspections, permitting,
preparation of the SWPP
book and plans, best management practices (BMP) installs and other maintenance.
In 2010 - 2011, KES not only provided environmental services to job teams internally, but they provided environmental services externally as well to other companies in the
Phoenix area. Our services include Stormwater Pollution
Prevention (SWPP), Dust Control and Construction Waste
Management. During 2010 - 2011, Kitchell had an environmental presence on over 100 projects in the Phoenix area,
as well as projects in California, and New Mexico.
Not only does Kitchell monitor its own environmental discharges, but we help mentor and assist other companies
with their regulated discharges. Other companies we assist and mentor include KB Homes, Shea Homes, Ashton
Woods, Richmond American Homes, APS, and various other
small General Contractors when needed.
B. Dust Control. This involves
consulting, water trucking,
street sweeping, BMP installs,
signage, preparing the dust
plan and permit, water logs,
training and other related
services.
C. The Construction Waste
Management Program. This
involves a big picture approach to reducing waste and
diverting it from the landfill.
KES provides consulting and
hauling services to job teams.
In
2010 - 2011, Kitchell demonstrated environmental leadership by focusing much of the KES team’s attention to reducing
regulated discharges from entering the atmosphere. Specifically, particulate matter that is 10 microns (PM-10) or smaller are
regulated heavily in the Maricopa County non-attainment area.
Dust is a dirty word in the construction industry. A considerable
amount of time, planning and labor is devoted by Kitchell employees in preventing dust generation. During the 2010 - 2011
inspection period, sixteen (16) Kitchell construction projects
were inspected 35 times. Of those inspections Kitchell received
zero Notice of Violations (NOV’s) or Notice To Corrects (NTC’s)
for anything emissions related or administrative related. During
this two year inspection period Kitchell Contractor’s was 100%
compliant with all their permits that regulate air compliance.
During the 2010 - 2011 inspection period, fourteen (14) Hardison Downey construction projects were inspected 29 times.
Of those inspections Hardison Downey received zero Notice
of Violations (NOV’s) or Notice To Corrects (NTC’s) for anything
emissions related or administrative related. During this two year
inspection period Hardison Downey was 100% compliant with
all their permits that regulate air compliance.
We can apply EPA AP-42 emissions reductions to give approximate estimates based on controls and compliance rates. Overall
both Kitchell construction companies were able to accomplish a 100% compliance rate with emissions related activities in 2010 - 2011. Based on the rate calculated by the Senior
Environmental Manager, Cameron Flower, it is estimated that
the total surface area (142.15 acres) disturbed by construction
on all projects could have potentially caused 187.64 tons of PM10 pollution in one year (based on Maricopa County calculations for uncontrolled emissions).
By implementing the dust control measures on all Kitchell company jobsites, we were able to reduce our emissions by 90% for a
total emissions reduction of 168.87 tons of PM-10 per year. This
equates to only producing 18.77 tons of PM-10 pollution on all
projects over a two year period, versus potentially discharging
187.64 had we not been complying with our air permits.
In addition to dust control, Kitchell construction companies
demonstrate leadership in stormwater pollution prevention.
Kitchell companies received a 100% compliance rating for SWPP
measures. In other words, there were zero violations related to
SWPP in 2010 - 2011. Each of our sites over one (1) acre has a
Stormwater Permit from a regulating authority; this was AZDEQ,
California Water Board or the EPA. We had twenty (20) projects
in Maricopa County permitted by AZDEQ, one (1) project in California permitted by the California State Water Board, and nine
(9) projects monitored by the EPA. All the projects were required
to put together a comprehensive stormwater pollution prevention plan (SWPPP), conduct self-inspections, perform frequent
maintenance and installation of best management practices
that prevent pollution, erosion and other contaminants from
entering stormwater run-off.
Kitchell also helped assist companies such as Arizona Public Service, Richmond American Homes, Shea Homes, Ashton
Woods & KB Home in their environmental compliance efforts
with SWPPP, by assisting them in receiving zero violations with
regard to stormwater runoff as well.
3. Implementation of a waste program or
waste reuse practices
In 2010 - 2011, KES continued its Construction Waste Management Program for all construction projects at Kitchell.
The goal is to reduce construction waste and divert it from
the landfill by recycling and/or reusing products that would
typically be waste. Separate bins are placed on site for each
recyclable item including wood, metal, cardboard, office/
household recyclables, concrete and drywall. This program
was originally launched on three large projects at Kitchell:
Scottsdale Fashion Square, Phoenix Children’s Hospital and
Barrett Honors College. Since then Kitchell has continued
these efforts on all projects regardless of size. At a minimum
our goal as a company is to require the job teams to recycle
50%, (non-LEED projects), for any LEED projects we require
job teams to be at 75%, and will require them to see if it is possible to achieve an Innovation in Design point for recycling
95% or greater. In 2010, Kitchell Contractors recycled nearly
79.40% of the waste from its projects from going to a landfill, and in 2011 the recycled rate was 71.50%. This equates
to approximately 17,433.45 tons recycled from its projects
in 2010 – 2011 while 5,603.43 were taken to a landfill. This
was measured off every project in 2010 – 2011. The recycled
loads
consisting of either wood, drywell, cardboard or inert material. Although we met our goal, we believe we can do better
in the coming years and are making a push as a company to
improve our recycling efforts on projects.
Also, as a goal for 2013 and beyond, Kitchell wants to incorporate Hardison Downey’s projects as part of our recycling effort. We plan on reporting on their efforts in 2013,
with goals to achieve at least 50% recycling on all Hardison
Downey Projects.
In addition to construction site recycling, Kitchell also recycles office materials and equipment. Kitchell Equipment
Services recycles or reuses old furniture and equipment
from projects when they are finished. The equipment is redistributed to other jobsites, sold to an outside entity, donated for reuse, donated for recycling purposes, or as a last
resort, disposed of responsibly. All reusable materials are
stored until a job team can take them. Recyclable items that
are not reusable, such as broken metal filing cabinets, are
recycled. Our Fleet Services division also recycles old auto
parts, oil, tires and any other material that can be reused or
recycled. Aluminum cans and paper are also recycled.
T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
Education and Mentoring
1. Mentoring other organizations regarding
process improvements and pollution prevention approaches and techniques
In 2010 - 2011 Kitchell companies participated in various training sessions, planning meetings and discussions that enabled
other companies to prepare for and implement pollution prevention techniques. Kitchell has a long standing relationship
with the Association of General Contractors (AGC) Arizona
Chapter and gave advice to many of AGCs other members and
AGC leaders. Kitchell also attended meetings with the Home
Builders Association of Central Arizona to discuss policy adoption and implementation of new Maricopa County regulations.
In total, KES staff spent approximately 60 hours per year (2010
and 2011) providing input and advice at no charge to various
entities throughout Arizona
Kitchell has employees that are involved in the following nonprofit organizations, these employees donate their time and
effort mentoring and giving back their knowledge to the community.
1. In 2010 and 2011 Kitchell was on the board of the Western Chapter of the International Erosion Control Association
(WCIECA) serving as both a board member and Vice President.
2.
In 2011 Kitchell has been the serving as Chairman of the
AZ Chapter AGC Environmental Committee.
3.
In 2011 Kitchell has been serving on the National Steering Committee of the Associated General Contractors of America (AGC). In this role Kitchell has been contributing to key legislative regulatory issues regarding clean water and clean air for
the construction industry.
4.
In 2010 Kitchell spoke at the EPA Region 6 MS4 Operators Conference about air quality issues in Maricopa County.
5.
In 2010 and 2011 Kitchell has written articles for a couple of trade magazines on the importance of Environmental
Management programs and their ability to assist companies in
compliance and on the importance of construction recycling.
6.
In 2010 at the invitation of Maricopa County Air Quality
Department, Kitchell went to Washington DC for the 2010 Clean
Air Excellence Awards to participate in receiving an Excellence
Award for the Maricopa County Dust Control handbook, where
Kitchell was a key contributor in 2009.
T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
2. Providing to the public an annual report documenting environmental performance
This report will be made available to the public via the Kitchell website for the 2010 and 2011 reporting years.
Organizational Environmental Policies
1. An environmental management system
(EMS) and audit program
Kitchell has been working in collaboration with a StormProMax, a software vendor that has developed and implemented a program that has served as an EMS for the construction
industry. Our EMS currently has the ability to track, report,
and record keep various compliance and sustainability performance measures that the construction industry faces
on a daily basis. We have the capacity to email reminders
for inspections, email reminders for corrective actions that
are due, track permits, track compliance and assist with the
overall operational component of environmental compliance for the construction industry.
Currently our EMS and audit program is managed by Kitchell Environmental Services Staff. Since Kitchell is a construction company, the majority of the environmental impacts
are related to air quality and water quality. The staff of Kitchell Environmental Services, audits each job-site on a weekly
basis in order to ensure permit conditions are being met per
Federal, State, and Local requirements. Kitchell goes above
and beyond what is required in the permits, due to the com-
mitments of upper management. The results on a regulation end have been very successful. Through bi-monthly
site visits, Kitchell as a company was in compliance with
100% of their regulatory inspections. In order to achieve
this success, Kitchell corrects issues prior to receiving regulatory inspections. Towards the end of 2008, into the beginning of 2009, KES employees would find that sites were
65% compliant (on average) with required regulations
each inspection. Through self-inspection we were able to
bring our compliance rate to about 80% each inspection,
helping minimize our risk and exposure from regulatory inspections. Our goals for 2010 and 2011 were to have our bimonthly self-inspection compliance rate up to 90% by the
end of 2011. At the end of 2011 we were able to achieve
this, which in turn helped us achieve a compliance rate of
100% by the regulatory agencies in 2010 and 2011. As of
2010, all Kitchell projects were utilizing our EMS inspection
software and compliance reminders to track our goals.
As of 2012 we plan on incorporating our newest company
Hardison Downey in the EMS software to help assist this operating unit with its compliance and sustainability goals.
T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
L E A N
C O N S T R U C T I O N
2. Implementation of sustainability practices
Late in 2011, Kitchell began its Lean journey. By embracing the ideas in Lean Construction we are able to better
deliver value to our clients.
Lean Construction is a philosophy and really a management style that was born from the principles of lean manufacturing that Engineer Ohno started at Toyota after World
War II. Lean itself is a customer-centric methodology to
deliver value to a customer through the EFFECTIVE use of
resources, engagement and respect for people and continuous improvement.
At Kitchell we are embracing a Lean culture by developing
a mindset and a view that directs us to look for ways to:
•
Eliminate Waste.
•
Increase Flow.
•
Prevent Defects and
•
Flow resources where they are required at the correct time, quality level and quantity required.
Eliminating waste is truly the first fundamental step that
needs to be taken on the Lean journey. Kitchell has found
that if we can eliminate waste, not only is the project more
sustainable during construction, but also after construction. There are seven (7) key types of waste that are addressed in delivering a lean construction project.
On the Chandler Regional Hospital Tower we have currently under construction we are incorporating tools like the
Last Planner System and the 5S’s to reduce or eliminate
these seven types of waste.
1.
Correction Waste
2.
Over Production Waste
3.
Inventory Waste
4.
Motion Waste of People
5.
Waiting Waste
6.
Transportation Waste of materials
7.
Over Processing Waste
ELIMINATING WASTE
In addition to the tools previously mentioned, STANDARDIZATION is a great way to eliminate waste. As such the project team (both in design and construction) has focused on
pre-fabrication of the like construction elements on the
project. This includes all patient bathrooms, patient headwalls and the mechanical/plumbing/electrical overhead
racks. These parts of the building will be pre-fabricated
off-site and then set in place by a crane or other means so
as to eliminate waste on the project.
By standardizing and prefabricating as much as possible in
a warehouse, we have tighter control of all the processes.
We can ensure first time quality to eliminate rework, we
can tightly control inventory as it flows from station to station in the prefab process eliminating wasted material that
would be thrown away, By creating the flow through the
warehouse we eliminate wasted movements by the workers, and we can reduce damaged materials going into the
landfill by eliminating the need for large amounts of stored
material onsite. All the work is being done local to the jobsite to reduce trip times and length of time on the road. By
controlling the processes we can also order all materials to
length and reduce the amount of wasted physical material
that would otherwise be scrapped on a jobsite.
The CRMC project was started in 2012. The new patient
tower at the Chandler project is scheduled to be completed in 2014 with remodel work in the existing hospital scheduled to last into early 2015. Most of the project’s
construction will take place in 2013 and 2014.
Through implementation of Lean tools to eliminate waste
two of the project’s goals are
•
to reduce the cost of work by at least 2% thus reducing the project cost from 77.5M to 76.0M
•
to reduce the scheduled duration by 6% from the
original schedule of 39.5 months to 37 months.
Based on the lessons learned and successes at this pilot
project, Kitchell plans to use this model as a way to deliver more projects to Owners in the years to come.use this
model as a way to deliver more projects to Owners in the
years to come.
&
Other Topics to Report
1. Environmental Leadership activities not
covered earlier.
In 2010 Kitchell acquired hardison/downey construction
inc., a well-established commercial contractor with a strong
presence in tenant improvements and student housing. The
acquisition enabled h/d to grow its capacity for work, and
for its founders to position the company for a solid future
as part of the family of Kitchell companies. h/d has demonstrated its position as a significant contributor to Kitchell’s
balance sheet, and its close-knit culture and values mirror
the environment established by Sam Kitchell decades ago.
The h/d office is located just two miles north of Kitchell’s
Highland office. The Sustainability Report for 2010 and 2011
is a reflection of the environmental efforts off all construction companies owned by Kitchell.
2. Include any potentially adverse matters
concerning your environmental performance
NONE: Although a better Economy would help our overall.
efforts.
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T O G E T H E R , B U I L D I N G V A L U E E V E R Y D AY.
K I TC HE LL I 1 7 0 7 E. H ighlan d I P ho enix, A Z 85016 I 602- 222- 5 3 0 0