board of trustees online meeting april 29, 2020€¦ · more than 1k/month. upcoming releases in...
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Board of Trustees Online Meeting April 29, 2020
Housekeeping
• Online Meeting – Everyone Can Talk and Discussion is Encouraged
• Please Mute Yourself When You are Not Talking to Reduce Background Noise
• Reminder – Don’t Put Us on Hold or We’ll Hear Your Recording/Background Music!
Opening Business
• Call to Order & Roll Call• Antitrust Statement (Page 3)
• Approval of the Minutes (Pages 4-10) – Suggested Motion: The RMC Research & Education
Foundation Board of Trustees hereby approves the minutes of the Trustees meeting held on October 6, 2019.
Administration Committee• Nomination to Complete an Unexpired Term
– Christopher Schenone, US Concrete (2020)
– Motion: The RMC Research & Education Foundation Board of Trustees hereby approves the slated nominee as presented and recommended by the Administration Committee.
Administration Committee• Nomination for 2020 Treasurer
– Rodney Grogan, MMC Materials (2020)
– Motion: The RMC Research & Education Foundation Board of Trustees hereby approves the slated nominee as presented and recommended by the Administration Committee.
Financial Management Reports
• Review and Approval of 2019 Audit (Pages 11-27)
− Motion: The RMC Research & Education Foundation Board of Trustees hereby approves the 2019 Audit report as presented and recommended by the Finance Committee.
Financial Management Reports
• Budget v. Actual March 31, 2020 Financial Report (Pages 28-29)
- Suggested Motion: The RMC Research & Education Foundation Board of Trustees hereby approves the Budget v. Actual March 31, 2020 financial report as presented.
Financial Management Reports
• Investment Management Update (Pages 30-31, and Slide Presentation)
- Charles Schwab Investments – Mark Thatcher & Shad Lamm, Cypress Wealth Services
Long-Term Financial & Crisis Planning
Pledge Redemption & Fundraising$2,432,317
Investment Income$840,000
Collected as of 4/23/20$284,418
Receivables Through 12/31/20
$1,865,866
New Fundraising Cash Still Needed
$282,033
Notes:• Deferred Payments Already
Requested ($125,800)• Ripple Effect on the Industry,
and Subsequently Fundraising and Pledge Income, Still Unknown
• Previous Recession Experience Was That Pledges Were Eventually Paid
2020 BUDGETED INCOME SNAPSHOT
Investment Income as of 3/31/20($2,905,891)
Positive Considerations:• Avg Bear Market 1.4 Years• 50-50 Split Provides Plenty of
Cash/Time to Ride This Out• Up Nearly 20% at 12/31/19• Previous Recession
Experience Was Positive
Negative Considerations: • $3,745,891 Delta as of
3/31/20• Likely a Longer Time to
Achieve a Fully Funded Endowment
SPENDING LEVERS THAT CAN BE IMPLEMENTED TO MITIGATE NEGATIVE IMPACTS
Program Spending$1,400,000
Halt New Program Spending
$117,280 Still Unallocated for 2020
Suspend Authorized Programs Not Yet Under
ContractFire Rating System - $40KLife 365 Online - $7,390
Halt Other Programs at Percent Complete
Approximately $225K Through 2022
Defer, Renegotiate or Give 1 Year Notice to MIT CSHub
- Up to $3M
SPENDING LEVERS THAT CAN BE IMPLEMENTED TO MITIGATE NEGATIVE IMPACTS
Variable Expenses
Travel, Meetings and Office Supplies – Will Save Approximately $20K
Incentive Compensation –Tied Directly to Income
Goals
Variety of Options with 2 Staff People Salaries,
Benefits, Incentive Comp, Parking, etc.
Fixed Expenses
Current Program Highlights• Respiratory Protection and Plant Safety Videos – Now Available• PavementDesigner.org – Over 40K Design Runs; Use Evident in All 50
States and Internationally• Guide to Concrete Overlays of Asphalt Parking Lots – Revised Version
Available Electronically; 112K CY at Value of $12.4M to RMC and $28.6M to Concrete Construction
• Guide to Concrete Trails – Since August 2019, Training in MN and SD; Webinars; 600 Print Copies Sold Out; Hundreds More Distributed Electronically
• Build With Strength and PaveAhead Free Webinars Featuring Foundation Research and Tools
• “Day in the Life of a Mixer Driver” – More Than 58K Views; Averages More Than 1K/Month
Upcoming Releases in 2020• Impact of Extended Mixing Time on Concrete Durability and
Performance (90 Minute Rule)• Thermal Performance Comparison Between ICF and
Wood/Steel Frame Assemblies for Both Heating and Cooling• Improving Specifications to Resist Frost Damage in Modern
Concrete Mixtures• Improving the Reliability of Resistivity/Conductivity Tests as an
indicator of Concrete Permeability – Interim Report Available• Concrete Strength Model to Optimize Concrete Mixtures• Online Safety Series Video - Best Safety Site Delivery
Conditions at the Job Site
MIT Concrete Sustainability Hub
Crowdsourced Data for Sustainable Infrastructure
State Specific Pavement Network Analyses
Neighborhood-specific Albedo Analyses
Streamlined LCA/LCCA Platform
Pavements
Research
Implementation
Building and Community-Specific Resilience Assessments for Rating Systems
Whole Building and Whole Life Streamlined LCA for Architectural Tools
Pathways to Achieving Architecture 2030 and Net-Zero 2050 Goals
Buildings
Research
Implementation
Potential Impacts of a Price or Limit on Carbon for the Cement and Concrete Industries
Mapping of Waste Streams and Concrete Production Sites to Enable Circular Economy Strategies
Identifying the Drivers and Solutions to Construction Industry Productivity Declines
Potential for Carbon Dioxide Uptake in Concrete Structures
Cement & Concrete Industry
Research
Implementation
Slide 19
MIT Research Policy Results Project Results
Building LCA
Hazard Mitigation
Albedo Policy Projects (RMX Total ~ 2013 k-CY)
⦁ 2012 ⦁ Building LCA framework
⦁ IgCC LCA and EPD Credit⦁ IgCC EPD Credit
⦁ 2013 ⦁ Comparative LCAs ⦁ LEED v4 LCA Credit⦁ LEED v4 EPD Credit⦁ Green Globes LCA Credit⦁ Green Globes EPD Credit
⦁ 2014 ⦁ Streamlining Building LCA Tool ( 2020)
⦁ Architect Survey
⦁ Incorporate hazard resistance into LCA/LCCA ( 2020)
⦁ Concrete impact factors in Athena LCA software and Tally software
⦁ 2015 ⦁ Building LCA Tool (2020)
⦁ Albedo pavements impacts on buildings ( 2020)
⦁ LEED v4 Resilience Pilot Credit (tentative)⦁ NRMCA EPD Program accepted by LEED⦁ NRMCA IW EPD accepted by LEED
⦁ Capitol Tower (35)⦁ CA High Speed Rail (500)⦁ Atlanta Falcons Stadium (40)
⦁ 2016 ⦁ Beta Streamlined LCA Software Tool
⦁ Critical issues in comparative LCAs
⦁ Breakeven hazard mitigation
⦁ Green Globes analysis
⦁ GA: Fire safety ordinance, Sandy Spring, Tucker GA⦁ Green Globes UHI Credit reinstated (tentatively)⦁ NJ: Introduced fire safety legislation to limit wood
frame construction
⦁ 1063 Block Replacement (13)
⦁ SFO Expansion (100)⦁ Facebook (200)⦁ Google (200)⦁ One Bromfield (70)
⦁ 2017 ⦁ Streamlined energy software tool
⦁ ASCE guides recommend full life cycle LCA⦁ Defeat EPD bills in OR⦁ Defeat CLT bills in WA, OR, ME⦁ MD, FL, CA: Introduce fire safety legislation to limit
wood frame construction⦁ CA: Introduce energy, resilience regulation
⦁ LA Rams Stadium (30)⦁ Circa (75)⦁ Sound Transit Seattle (500)
⦁ 2018 ⦁ Regional building code analyses
⦁ Regional resilience analyses
⦁ Regional albedo analyses
⦁ Potential responsible sourcing certification for concrete accepted by LEED
⦁ Potential fire safety legislation in 10 locations
⦁ 200 additional projects converted through NRMCA Concrete Design Center (480)
⦁ 2019 ⦁ Commercial Streamlined LCA software tool
⦁ Potential resilience legislation in 5 locations
⦁ 2020 ⦁ Potential full life cycle LCA in green building standards
Impact – Buildings
Achievement vs. Product Substitutes (Buildings)
Policy Before MIT MIT Findings and Developments Benefits After MIT• LEED v4 adopts LCA
credit• LEED did not have an LCA
credit and favored high recycled content and renewability
• LEED v4 now places more emphasis on conducting whole building LCA
• Concrete can contribute to LEED LCA credit since using high volume SCMs lowers impacts significantly
• LEED v4 EPD adopts credit favor prod w/ EPDs
• LEED did not have an EPD Credit
• Gives credit to products with EPDs • Concrete can contribute considerably to the LEED v4 EPD credit
• NRMCA uses energy savings & reduced env impacts to demonstrate concrete's advantages
• There was no efficient way for NRMCA to conduct energy and LCA for buildings
• MIT supports concrete design center with energy analysis and LCA so NRMCA can conduct energy analysis and LCA for buildings to demonstrate long term savings to developers
• Developers will select concrete over wood and steel construction
• ASCE guides and white papers recommend cradle to grave LCA
• Little guidance on sustainable construction from ASCE
• NRMCA has co-authored several ASCE guides and white papers encouraging the use of cradle to grave LCA to evaluate projects with references to MIT work
• Engineers will use cradle to grave LCA methodologies to improve environmental performance of projects and favor concrete
• LEED V4 Resilience Pilot Credit
• Difficulty in demonstrating the value of designing resilient structures
• MIT BEMP demonstrates the value (and cost savings) for building beyond code
• Standards such as LEED are adopting resiliency standards such as RELi and USRC which favors concrete / resilient construction
• Performance-based specifications (PBS)
• Difficulty in demonstrating the value in using PBS
• MIT is showing that the pathway to low-carbon concrete is using PBS to spur innovative products that enhance performance and reduce carbon footprint
• Engineers and architects are adopting PBF
MARKET SHARE OF FLOOR AREA FOR CONCRETE, STEEL AND WOODSource: Dodge Data and Analytics
10%15%20%25%30%35%40%45%50%
Share of Floor AreaAll Story Heights
Concrete Steel Wood
• For the first time, Concrete leads the way with over 1/3 of market share
• The first turnaround coincides with launch of MIT CSHub reports in 2011
• A second acceleration began with launch of Build with Strength in 2016
• An additional 15 million yd3 of concrete since 2016
• $1.7 billion of revenue for the concrete industry since 2016
MARKET SHARE OF FLOOR AREA FOR CONCRETE, STEEL AND WOODSource: Dodge Data and Analytics
0%
10%
20%
30%
40%
50%
60%
Share of Floor Area1-3 Stories (63% of market)
Concrete Steel Wood
0%
10%
20%
30%
40%
50%
60%
Share of Floor Area4-7 Stories (25% of market)
Concrete Steel Wood
0%
10%
20%
30%
40%
50%
60%
70%
80%
Share of Floor Area8+ Stories (12% of market)
Concrete Steel Wood
CUMULATIVE PROJECTS CONSULTED AND CONVERTED (direct impact)
0
50
100
150
200
250
2015 2016 2017 2018 YTD
Projects Consulted (561 total)
Consulted Target
01020304050607080
2015 2016 2017 2018 YTD
Projects Converted (197 total)
Converted Target
Slide 24
Research Policy Results Project Results
Life Cycle Cost Analysis & Asset Management Policy Changes Projects
(Cem Total ~ 449kT)
2012 ⦁ LCCA Price project model ⦁ MD: 10 lane-miles⦁ NC: I-85 / I-485 / Intx.(100kT Cem)⦁ SC: Pavement (RM 3.1k CY)
2013 ⦁ FHWA LCCA Updates ( 2020)⦁ GAO / OMB studies on LCCA / HH. OMB Clarification on
Discount Rates⦁ MIT & NvDOT evaluation LCCA of Boulder City Bypass
2014 ⦁ Initial cost impacts on LCCA ⦁ CO DOT LCCA Cost Updates⦁ SDDOT LCCA Study
⦁ FL: Pt Everglades i (7.2kT CEM)⦁ NC: Pavement (140kT Cem)⦁ SC: Pavement RM (5.4k CY)
2015 ⦁ Comparative LCCA Scenario Analysis⦁ Price Projection Implementation
⦁ CALTRANS Network Analysis Studies ⦁ NV: Boulder City Bypass / Interchange Ph-1 (10kT Cem)
⦁ SC: Pavement (11.7 kCY)
2016 ⦁ Network LCCA / Asset Management (AM) ( 2020)⦁ Inter-Industry Competition ( )
⦁ MN DOT LCCA Updates / MN DOT PVI User Costs⦁ CA-UCPRC: Research on PCC overlays
⦁ CO: C-470 Express Lanes (65k Cem)⦁ SC: Pavement (6.3k CY)
2017 ⦁ PVI into LCCA () ⦁ NC DOT Asset Management ()⦁ IA DOT Asset Management ()⦁ KY Competition Impacts⦁ Mass LCCA legislation⦁ ACPA/PCA Nossaman Comp. Init.⦁ FAA Discount Rate Policy ()
⦁ CO: I-25 Corridor (70k Cem)⦁ KY: Pennyrile Pkwy (37k Cem)⦁ KY: Bluegrass Pkwy (25kK RM CY)
2018 ⦁ Asset Management / Diversity studies ( 2020)⦁ Allocation Modeling
⦁ AL Competition / Legislature ()⦁ NC Competition / Legislature ()⦁ WV Competition / ADAB ()⦁ FHWA Pavement Policy Updates ()
⦁ CA: Southeast Connector (45k-in Design)⦁ WV: Coalfields Expwy (~30k ST)⦁ MassDOT Concrete Intersection Program
(3 projects / 7 intersections) ( 2021)
2019 ⦁ Iowa AM Studies ⦁ ALDOT ADAB Projects (~925k SY Potential)
2020 ⦁ Streamlined LCA/LCCA⦁ State specific pavement network analyses and
online dashboard tools
Impact – Pavement (Economic studies)
MIT Research Policy Results Project Results
Life Cycle Assessment Policy Changes Projects(Cem Total ~ 449kT)
2012 ⦁ LCA model framework⦁ 1st Generation PVI Model
⦁ CA – MIT Research Highlighted ( 2020) ⦁ MD: 10 lane-miles⦁ NC: I-85 / I-485 / Intx.(100kT Cem)⦁ SC: Pavement (RM 3.1k CY)
2013 ⦁ Use Phase Studies / Uncertainty analysis ⦁ FHWA Sustainable Pvmts TWG ( 2020)⦁ CALTRANS / CARB ( 2020)
2014 ⦁ 2nd Gen. PVI Model ⦁ PVI in FHWA LCA Guidelines⦁ Integration of MIT PVI into CARB scoping doc.
⦁ FL: Pt Everglades i (7.2kT CEM)⦁ NC: Pavement (140kT Cem)⦁ SC: Pavement RM (5.4k CY)
2015 ⦁ Comparative LCA Scenario Analysis ( 2020)⦁ PVI model Comparison & field testing ( 2019)⦁ Network level PVI ( 2020)
⦁ FHWA Sust. Pvmt. Framework ( 2020)⦁ CALTRANS Network Analysis Studies
⦁ NV: Boulder City Bypass / Interchange Ph-1 (10kT Cem)
⦁ SC: Pavement (11.7 kCY)
2016 ⦁ Albedo effects ( 2020) ⦁ FHWA CO2 rulemaking⦁ NC DOT Network PVI ()⦁ Green Globes UHI Credit reinstated (tentatively)⦁ MN DOT PVI User Costs
⦁ CO: C-470 Express Lanes (65k Cem)⦁ SC: Pavement (6.3k CY)
2017 ⦁ TX: Air attainment issues in Austin/Houston ⦁ CO: I-25 Corridor (70k Cem)⦁ KY: Pennyrile Pkwy (37k Cem)⦁ KY: Bluegrass Pkwy (25kK RM CY)
2018 ⦁ Asset Management / Diversity studies (2020)
⦁ Phoenix UHI⦁ CA & WA EPD requirements
⦁ CA: Southeast Connector (45k-in Design)⦁ WV: Coalfields Expwy (~30k ST)⦁ MassDOT Concrete Intersection Program
(3 projects / 7 intersections) ( 2021)
2019 ⦁ GHG Mitigation / BAU LCA Studies ( 2020)⦁ CARBIN / Crowdsourcing IRI ( 2020)
⦁ CA: Sierra Club Response⦁ FHWA PVI Model research to include in Investment
Guidelines
⦁ ALDOT ADAB Projects (~925k SY Potential)
2020 ⦁ Streamlined LCA/LCCA⦁ Neighborhood-specific albedo analyses
Impact – Pavement (Environmental studies)
Achievement vs. Product Substitutes (Pavements)
Policy Before MIT MIT Findings & Developments
Benefits After MIT
Pavement Vehicle Interaction (PVI)
• PVI Deflection / structure impacts on vehicle fuel efficiency were considered negligible
• Pavement structure impacts Excess Fuel Consumption (EFC)
• Concrete pavements have lower EFC vs. asphalt pavements
• Results applicable to environmental & cost analysis
• Adopted by FHWA in several Sustainable Pavement Publications• Working on including in LCCA• Results have been used in California (CARB, CALTRANS) and other DOTs (MN,
VA, NC)• Used in Industry response on FHWA Legislative Rulemaking on CO2 / GHG• Potential EPA applications• FHWA is reviewing PVI Models to include in Pavement Investment Decision
Making
Life Cycle Cost Analysis (LCCA)
• LCCA practices assume all materials have similar inflation rates
• Asphalt and concrete have differentinflation rate, which can bias results
• Outlined a process to account for different inflation rates
• Developed “price projection” models that agencies can use
• Improves Cost Estimates in LCCA• Clarifies high actual cost of using asphalt & shows concrete has less "risk“• OMB / GAO reports directed FHWA to update its guidance to “fully
incorporate” GAO Cost Guide’s Best Practices, which provides specific guidance on accounting for inflation
• SD DOT LCCA inflation study. Recommended SD DOT update LCCA & project planning processes
• CO DOT & MN DOT have updated cost estimating practices to account for project size
• Competition message is having impact with states and given them a reason to consider alternate bidding for concrete
• Asset management shows long term solutions lower network costs and improves network performance
• Competition and Asset management both play well into new MAP 21 Asset Management Requirements
LCCA –Initial Costs
• Agencies used static cost estimates for unit costs, which often over-estimated concrete pavement actual costs
• Initial costs varies by project size• Incorporating competition between
industries lowers agency’s costs
LCCA -Asset Mngmt(AM)
• Asset management meant low-cost, short-term (asphalt) pavement solutions
• Short term solutions are inefficient and cost more in the long run
• Long term solutions need to be part of the mix of pavement choices used by DOT
Albedo
• Asphalt / academics showing lighter pavements "bad" in urban setting. Reflected light increases Building Energy Demand (BED) to cool
• MIT provided a scientific rigorous defense of "light colored surfaces“ and its positive impacts on Urban Heat Island (UHI)
• Response was able to keep "light colored" as a sustainability credit in Green Building Institute rating system
• Has shown that BED impacts are small and overall impact will be favorable to concrete
• Has shown pavement albedo impacts are large and are significant part of the pavement’s total LCA results
28
MIT CSHub Communications
FOCUS: MIT CSHub-Branded Content Creation & Sharing• Interactive Dashboards on the
CSHub Website• New Format for Research
Summaries and Briefs• YouTube Video on Albedo• MIT News Articles
29
MIT CSHub Communications
FOCUS: Social Media Engagement
• Sharing Research• Research Briefs and Summaries• Scientific Articles• Video and Written Content
• Engaging with the Public• Earned Media • Presentations • Events
• Educating the Industry and the Public• Concrete’s role in society • Technological Advances and Innovation
30
MIT CSHub Communications
FOCUS: Earned media• Stories in The Wall Street Journal,
New York Times, USA Today, CNBC, Grist and other publications
31
MIT CSHub Communications
FOCUS: Presentations and Webinars• Testimony on Capitol Hill
» Bipartisan Policy Center
» Select Committee on the Climate Crisis
» House Subcommittee on Environment and Climate Change
• Industry Presentations and Education» Embodied Carbon in Buildings
conference hosted by Boston Society of Architects and MIT
» Buy Clean America Summit
• Webinars» 8 Webinars, 337 attendees, and
1,300 YouTube views
Project Proposals for Consideration(Summary – Pages 32-33 and Project Proposals Link)
• Motion: The RMC Research & Education Foundation Board of Trustees hereby rejects Projects 20-01, 20-02, 20-03, 20-04, 20-05, and 20-07 as recommended by the Advisory Council and Program Committee
• Motion: The RMC Research & Education Foundation Board of Trustees hereby approves Project 20-08 for $20,280 over 12 months as recommended by the Advisory Council and Program Committee
• Motion: The RMC Research & Education Foundation Board of Trustees hereby tables Projects 20-06 and 20-09 until we obtain more information and/or matching support as recommended by the Advisory Council and Program Committee
Next Meetings• Recommend an Online Meeting This Summer for
a Financial Update – August 19, 20, 25 or 26
• Potential Locations for Fall Meeting- NRMCA ConcreteWorks and PCA Fall Meetings (September 25-
29, 2020) – Denver, CO
- MIT CSHub IAC and TAG Fall Meetings – October 8-9, 2020 –Cambridge, MA
- Another Online Meeting
Other Business
• The Floor is Open for Any Other Business to Be Brought Before the Board
Adjournment
Thank you for your service on the Board
of Trustees