Gholson - 34036 Grouse Lane Evergreen, Colorado Photo by owner - - PowerPoint PPT Presentation

Gholson - 34036 Grouse Lane Evergreen, Colorado

State Farm insured the Gholson property in Evergreen, CO with an all peril policy: 06-GH-6826-2.

Photo by owner 2-3-07

Gholson - 34036 Grouse Lane Evergreen, Colorado

The February 2, 2007 fire destroyed the garage, mudroom, 1st floor bath suite, and breeched the

Photo by owner 2-3-07 Photo by owner 2-3-07

y , y g g , , , main dwelling structural assemblies causing serious damages.

Gholson - 34036 Grouse Lane Evergreen, Colorado

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Western view of garage debris field. Structural remnants of mudroom and 1st floor bath suite in background.

Photo by owner 2-3-07 Photo by owner 2-3-07

Gholson - 34036 Grouse Lane Evergreen, Colorado

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Photo by owner 2-3-07 Photo by owner 2-3-07

Photos show mudroom debris field. Firefighters pulled down popcorn ceiling to extinguish fire in the attic

• area. State Farm’s subcontracted asbestos testing firm, Foothills Environmental, did not test the popcorn

texture ceiling debris. This ceiling debris was greater than 32 square feet and considered to be a presumed asbestos spill hazard (due to age). This debris should have been classified as a major asbestos spill unless proven to be non–ACM (asbestos containing material). This debris was removed by State Farm’s Preferred Service Provider (PSP) American Restoration between 2-12-07 and 3-30-07 American Restoration completed Service Provider (PSP), American Restoration between 2-12-07 and 3-30-07. American Restoration completed the removal despite the lack of proper testing and failed to dispose of the debris as ACM. American Restoration failed to pull the required Jefferson County debris removal permit and the proper Colorado Department of Public Health and Environment (CDPHE) asbestos abatement permit. American Restoration is not listed in the state records as a licensed asbestos General Abatement Contractor (GAC).

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos shows the north facing view of mudroom debris field. Missing closet sheetrock shows view into first

Photo by owner 2-3-07 Photo by owner 2-3-07

floor bath suite. Firefighters removed popcorn textured drywall ceiling to extinguish attic fire. The presumed ceiling ACM debris littering the floor was not properly tested for the absence of asbestos by State Farm’s asbestos testing subcontractor, Foothills Environmental. This material should have been treated as a major asbestos spill in accordance with Colorado Regulation 8, Part B.

Gholson - 34036 Grouse Lane Evergreen, Colorado

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Photo by owner 2-3-07 Photo by owner 2-3-07

Left hand photo: Burnt mudroom ceiling debris with presumed ACM popcorn texture littering floor. Right hand photo: First floor bath area with burnt ceiling debris with presumed ACM popcorn texture littering floor. Ceiling debris was not adequately tested by State Farm’s subcontracted asbestos testing firm, Foothills

• Environmental. This material should have been treated as a major asbestos spill in accordance with Colorado

Regulations.

Gholson - 34036 Grouse Lane Evergreen, Colorado

First floor bath suite showing popcorn texture ceiling debris littering the bathroom area. Area of concern was greater than 32 square feet. The popcorn ceiling texture was a presumed ACM hazard. State Farm’s sub-contractors should have treated this area as a potential major asbestos spill. Please note the adjoining powder room area located within the confines of the main structure This open connecting room had greater than 32 square feet of popcorn texture ceiling pulled down by firefighters

Photo by owner 2-3-07

• structure. This open, connecting room had greater than 32 square feet of popcorn texture ceiling pulled down by firefighters.

Independent testing of the popcorn texture in the powder room determined 3% chrysotile asbestos content. The powder room area alone constituted a major spill per Colorado Regulation 8, Part B. Due to the unobstructed opening between the bath suite and powder room, one would have to conclude the bath suite was a contiguous part of the major asbestos spill area. State Farm’s sub-contractors mishandled testing and removal of ACM debris.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo shows damaged popcorn ceiling texture in the laundry room. The damage was caused by firefighting efforts to save the house. This ceiling texture was tested by State Farm’s consultant, Foothills Environmental, and determined to be non-asbestos containing. However, other popcorn textured ceilings located in the house were tested popcorn textured ceilings located in the house were tested by Foothills Environmental and consistently showed 3% chrysotile asbestos content. The bulk ceiling sample should have been retested given the conflicting results in the other areas. This area was deemed by State Farm’s claim adjusters to This area was deemed by State Farm s claim adjusters to be a non-asbestos contaminated area despite adjacent areas with contiguous air space being quantified as a major asbestos spill per Colorado Regulation 8, Part B. State Farm’s claim adjusters lack proper certification to make such a determination. State Farm’s PSP contractor American Restoration failed to treat contents removed from this area as asbestos contaminated during site operations

• n 2-9-07.

The structural abatement contractor, Certified Insulators, did treat the abatement of this area and the entire main portion of the house as a major asbestos spill condition. Certified Insulators removed popcorn textured ceilings and associated debris throughout the entire house as ACM in a manner consistent with Regulation 8, Part B. Certified Insulators performed this work from 4-2-07 through 4-11-07 with the required clearance testing completed on 4-11-07

Photo by owner 2-3-07

with the required clearance testing completed on 4-11-07. Please note that Certified Insulators was an owner selected contractor and not a State Farm PSP contractor.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Left hand photo: View from 1st floor powder room with open access to bath suite Untested burnt ceiling debris littering

Photo by owner 2-3-07 Photo by owner 2-3-07

Left hand photo: View from 1st floor powder room with open access to bath suite. Untested burnt ceiling debris littering the floor of the powder room and bath suite. Right hand photo: Shows textured ceiling damages with confirmed 3% asbestos content littering counter and floor. This debris was not properly tested by State Farm’s subcontracted testing firm, Foothills Environmental. This main house area alone qualified as a major asbestos spill per Colorado Regulations.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo by owner 2-3-07

Kitchen debris field showing fire damage in exterior and interior wall cavities. Firefighters removed extensive drywall (backsplash and dishwasher pocket areas) to extinguish fire in structural cavities. This potential ACM debris was not adequately tested by State Farm’s sub-contractor, Foothills Environmental. This area should have been treated as a potential major asbestos spill or tested to prove non-ACM status.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Kitchen debris field showing fire damage in exterior and interior wall cavities. Firefighters removed extensive drywall (backsplash and dishwasher pocket areas) to extinguish fire in structural cavities. This potential ACM debris was not adequately tested by State Farm’s sub-contracted asbestos testing, Foothills Environmental. This area should have been treated as a potential major asbestos spill or tested to prove non-ACM status.

Photo by owner 2-3-07 y

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo by owner 2-4-07 Photo by owner 2-4-07

State Farm’s central claims reporting office on 2-2-07 referred State Farm’s PSP contractor, American Restoration, to the

• loss. Mr. Terry Aumiller, owner of American Restoration, first surveyed the loss on the morning of 2-3-07. Photos above

show fan-driven pellet heating unit (right) located in the main floor living room and the fan driven space heater in the main floor laundry room (left). Mr. Aumiller helped set these devices up to heat the damaged house during his initial inspection

• n 2-3-07. The forced air circulation associated with these heating devices further extended friable asbestos contamination

throughout the house, although there is good reason to believe the entire house was already asbestos contaminated. Mr. g g g y Aumiller, who appears to be cognizant of asbestos hazards, should have advised the owners that the house needed to be properly asbestos tested upon his initial examination. State Farm’ s claim adjuster, Mr. Aumiller, and the owners met and surveyed the entire house on 2-5-07. At the end of the meeting, State Farm’s adjuster Mr. Tim Thomsen asked Mr. Aumiller, “Do you think this house needs to be asbestos tested.” Mr. Aumiller replied, “Yes”. Mr. Thomsen immediately called Foothills Environmental to arrange the asbestos t ti M A d G l f F thill E i t l d t d li it d b t t ti i b lk li

• testing. Mr. Andre Gonzalez, owner of Foothills Environmental, conducted limited asbestos testing via bulk sampling

method later that day. Mr. Gonzalez issued the Foothills Environmental Report dated 2-7-07 to State Farm’s Mr. Thomsen (Marked Exhibit A). The Foothills report makes what can only be termed as an erroneous and contradictory conclusion based on their asbestos test results and compelling photographic evidence of the damage dynamics. The Foothills report fails to clearly and properly classify the identified damages as a major asbestos spill in accordance with Colorado Regulation 8, Part B.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos shows extensive sheetrock damages and debris littering the second floor kids room. Firefighters chopped holes in walls and ceiling to ventilate and extinguish fire in structural cavities. Sheetrock damages shown extend to interior wall between second floor bathroom and kids room. The Foothills testing

Photo by owner 2-4-07 Photo by owner 2-4-07

determined that the damaged popcorn textured ceiling in the kids room contained 3% asbestos. This damaged area alone should have been classified as a major asbestos spill in accordance with Colorado Regulation 8, Part B. American Restoration removed contents from this room on 2-9-07 without concern for asbestos contamination, worker safety (PPE), and without a proper Colorado GAC license.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Left Photo: Looking through mudroom entry door shows plastic sheeting laid across floor of the main floor living room. Right Photo: Shows damaged popcorn textured ceiling (3% asbestos content) in main floor living room with plastic tucked in ceiling assembly pocket

Photo by owner 2-9-07 Photo by owner 2-9-07

tucked in ceiling assembly pocket. The State Farm commissioned asbestos testing report dated 2-7-07 was not immediately released to the Gholsons. Mr. Aumiller, the owner of American Restoration informed Mr. Gholson in a 2-7-07 phone conversation that the dwelling damages involved the release of asbestos. Mr. Aumiller, State Farm’s PSP contractor, indicated that the asbestos was on the floor and did not get into closets. His company, American Restoration, could cover the floor with plastic sheeting and salvage fire damaged contents for restoration. This information was patently false and reckless by all standards. g g p y y American Restoration sent two workers to the home on 2-8-07 to cover floor areas and some ceiling areas with plastic film as shown. American Restoration’s Project Manager, Mr. Matt Rakoczy, and four workers showed up at the loss on the morning of 2-9-07 to inventory and remove contents form the home. The American Restoration employees did not wear proper Personal Protective Equipment (PPE) to enter home as required by OSHA Regulations.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos show content items being staged by American Restoration personnel on the plastic covered floor of the

Photo by owner 2-9-07 Photo by owner 2-9-07

Photos show content items being staged by American Restoration personnel on the plastic covered floor of the asbestos contaminated family room on 2-9-07. The interior of dwelling, based on Foothills test results and Colorado Regulation 8, Part B standards, was a major asbestos spill. The structure was not properly contained with placement

• f mandated negative air equipment. Proper worker decontamination facilities were not established. Besides the

American Restoration employees put at serious health risk, workers from American Restoration’s subcontractors (RescueTech and Sunshine Cleaners & Laundry) freely entered the major asbestos spill site without proper PPE to remove asbestos contaminated content items on 2-9-07 remove asbestos contaminated content items on 2-9-07.

• Mr. Gholson, who had been mislead by Mr. Aumiller’s representation of the asbestos hazards, asked Mr. Corey

Matthews, the owner of RescueTech, if he knew there was asbestos in the house. Mr. Matthews replied, “Yes. It’s no big deal,. We run into this every day.” Mr. Matthews proceeded into the house without PPE and began removing damaged electronic items from the house, including the asbestos contaminated family room.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Left photo: Shows empty main floor family room entertainment area. RescueTech removed electronic equipment and CDs/DVDs from wall rack. Right photo: Shows content items being staged by American Restoration personnel in corner of family room. Damaged popcorn ceiling above contained 3% asbestos per the Foothills Environmental testing report dated 2- 7-07. The entire ceiling damage in the living room alone was greater than 32 sq. ft. and constituted a major asbestos spill under Colorado Regulation 8 Part B

Photo by owner 2-9-07 Photo by owner 2-9-07

under Colorado Regulation 8, Part B. PAC believes State Farm’s asbestos testing report of 2-7-07 prepared by Foothills Environment was patently evasive and deliberately withheld from the Gholson's. State Farm’s PSP contractor American Restoration knowingly (or should have known) misrepresented asbestos hazards in an effort to “snatch” asbestos contaminated contents for additional restoration profits while reducing State Farm’s loss exposure. The PSP benevolent relationship between State Farm and American Restoration was clearly structured to the detriment of the Gholson’s. American Restoration and its subcontractors lacked y proper training, provisions, and certifications to engage in the removal of asbestos contaminated contents which they could not satisfactorily clean, determine to be asbestos free, and safely return to the Gholson’s. PAC believes the conduct described to be reckless, negligent, and irresponsible in nature.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo shows large section of damaged family room ceiling covered with plastic sheeting. Large sections of popcorn texture were torn from ceiling by firefighters A bulk sample tested by State Farm’s subcontractor Foothills Environmental showed 3% asbestos

Photo by owner 2-9-07

torn from ceiling by firefighters. A bulk sample tested by State Farm s subcontractor, Foothills Environmental, showed 3% asbestos in the popcorn texture. The damaged family room ceiling area was greater than 32 sq. ft. and should have been classified as a major asbestos spill in accordance with Colorado Regulation 8B. Foothills Environmental failed to adequately test many areas of the house with clear and obvious damages involving probable asbestos containing materials. The failure of Foothill Environment to clearly declare the entire house a major asbestos spill based solely on their reported results raises serious ethical and regulatory

• issues. Foothills Environmental prepared and issued the 2-7-07 report directly to State Farm, bypassing the owners who are

responsible for proper handling of the asbestos spill under the regulations. State Farm’s pat financial relationship with Foothills Environmental is believed to have interfered with proper collection of comprehensive test data and dissemination of an accurate report, detailing the site as a major asbestos spill in accordance with Colorado Regulations. PAC believes Foothills Environmental had a primary duty to fully test and accurately report the major asbestos spill situation to the owners, not State Farm. We are deeply troubled by the sequence of events that transpired. PAC believes the Gholson’s were deliberately mislead though State Farm’s PSP/subcontractor arrangements. Many parties were subjected to unnecessary health risks through what can only be termed as reckless, negligent , and irresponsible behavior.

Gholson - 34036 Grouse Lane Evergreen, Colorado

The slightly different view of the previous photo shows a close up view of the damaged family room ceiling with popcorn texture dangling above Foothills 2 7 07 testing report indicated the family room ceiling texture contained 3%

Photo by owner 2-9-07

popcorn texture dangling above. Foothills 2-7-07 testing report indicated the family room ceiling texture contained 3%

• asbestos. The peeled surfaces and fractured edges released asbestos containing texture particles that littered the
• house. The fire and firefighting efforts (foot traffic, hoses, smoke exhaust fans, etc.) are believed to have propagated

the friable asbestos fibers throughout the house. The entire main structure, ancillary structure (mudroom, bath suite), and garage debris field house should have been declared a major asbestos spill in accordance with Colorado Regulation 8B. PAC believes Foothills Environmental had enough test data, despite the limited data presented, to k th j ill d l ti make the major spill declaration. Please note that the customary raw testing data that usually is supplied with the asbestos testers report was not forwarded in State Farm transmittal dated 2-12-07 sent to the Gholson’s. The 2-7-07 Foothills asbestos testing report

• nly included the narrative section and omitted the raw testing data and certified asbestos testing laboratory results.

PAC requests for this information have not been timely met by State Farm.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos show content items being staged for “pack out” by American Restoration personnel on 2-9-07. Note plastic

Photo by owner 2-9-07 Photo by owner 2-9-07

Photos show content items being staged for pack out by American Restoration personnel on 2 9 07. Note plastic sheeting covering floor per American Restoration’s owners instructions relating to “asbestos is only on the floor”. American Restoration failed to set up proper containment controls (critical barriers, negative air machines, decon facilities, etc.) and workers did not wear proper PPE. American Restoration lacks the state GAC certifications and licenses to “snatch” the asbestos contaminated contents. American Restoration lacks the facilities and controls to decontaminate, clean, and certify the return of the damaged content items as “asbestos free”. Despite these limitations American Restoration returned the so called cleaned content items to the Gholson rental property PAC limitations, American Restoration returned the so called cleaned content items to the Gholson rental property. PAC believes that American Restoration’s actions were reckless, negligent, and irresponsible. We believe that American Restoration’s actions have subjected the Gholson family to potential serious health risks. American Restoration has failed to respond to PAC and Gholson requests for detailed information concerning their improper actions. Please refer to Exhibits C,D, E, and F-1 for a full list of content items handled by American Restoration personnel on 2-9-07.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos show content items in second floor kids room on 2-9-07. Note asbestos containing popcorn texture crumbs littering the floor of the kids room State Farm’s sub-contracted asbestos testing firm Foothills Environmental determined the

Photo by owner 2-9-07 Photo by owner 2-9-07

the floor of the kids room. State Farm s sub contracted asbestos testing firm, Foothills Environmental, determined the popcorn texture in this room contained 3% asbestos. Asbestos damages in the kids room alone should have triggered a major asbestos spill determination.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos show content items in second floor kids room on 2-9-07. Note asbestos containing popcorn texture crumbs littering the floor of the kids room. State Farm’s sub-contracted asbestos testing firm, Foothills E i t l d t i d th t t i thi t i d 3% b t A b t d i th

Photo by owner 2-9-07 Photo by owner 2-9-07

Environmental, determined the popcorn texture in this room contained 3% asbestos. Asbestos damages in the kids room alone should have triggered a major asbestos spill determination.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo by owner 2 9 07 Photo by owner 2 9 07

The sun porch, because of construct details, was probably the only room in the house that was not asbestos contaminated immediately following the fire on 2-2-07. Photos show content items moved from living room to the sun porch. Mr. Aumiller on 2-3-07 helped move these items without informing Mr.

Photo by owner 2-9-07 Photo by owner 2-9-07

Gholson of the potential asbestos spill issues.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo by owner 2-9-07 Photo by owner 2-9-07

Photos show views of plastic sheeting covering floor in main floor living room and hallway. The plastic sheeting was placed by American Restoration personnel on 2-9-07 because so called friable asbestos was

• nly on the floor and covering would eliminate the hazard. The left hand photo shows probable asbestos

containing sheetrock debris on top of plastic sheeting. The right hand photo shows asbestos containing ceiling texture crumbs on uncovered floor under piano area. The actions of State Farm’s PSP contractor, ceiling texture crumbs on uncovered floor under piano area. The actions of State Farm s PSP contractor, American Restoration, were patently wrong and exposed their workers and the Gholson’s to an unacceptable health risk. PAC believes American Restoration’s flawed efforts would not have occurred without State Farm’s adjusters complicit involvement.

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photos show views of the garage, mudroom, and bath suite area after American Restoration completed debris removal operations. American Restoration personnel completed the debris removal between 2-12-07 and 3-30-07. American Restoration completed the removal despite the lack of proper testing and did not dispose of the debris as ACM material American Restoration failed to pull the required Jefferson County debris removal permit and the proper

Photo by owner 4-24-07 Photo by owner 4-24-07

ACM material. American Restoration failed to pull the required Jefferson County debris removal permit and the proper CDPHE asbestos abatement permit. American Restoration is not listed in the state records as a licensed asbestos General Abatement Contractor (GAC).

Gholson - 34036 Grouse Lane Evergreen, Colorado

Photo by owner 4-24-07

CONCLUSION

PAC believes State Farm’s sub-contractor relationship with Foothills Environmental and PSP relationship with American Restoration allowed deliberate manipulation of the major asbestos spill situation for mutual financial benefit. We further believe State Farm’s adjusters direction and control of asbestos testing interfered with the Gholson’s ability to obtain timely, accurate information and advice to address the asbestos mitigation efforts in an appropriate manner. We believe the State Farm claim adjuster’s misguided effort to control the loss and would-be financial exposure, directly interfered with Gholson’s first party (ownership) responsibilities under Colorado Regulation 8B. We believe State Farm’s claim adjusters involved with this loss used ( p) p g j State Farm’s superior financial position to overstep policy duties and regulatory boundaries to control the financial outcome of this loss. We believe this action was without regard to the safety of their Insured, the Gholson’s, and many other unsuspecting parties that entered the loss prior to April abatement. We trust that State Farm, as a responsible company, will fully investigate this matter and take appropriate actions. We believe the Colorado Department of Public Health and Environment (CDPHE) needs to fully investigate this matter and take appropriate action to deter future behavior of this type, as the circumstances that transpired put the public health and welfare at risk and such conduct must not be tolerated.