Transcripts For KPIX 60 Minutes 20180122 : vimarsana.com

KPIX 60 Minutes January 22, 2018

It always is. Kroft i take the fact that youre still giving interviews that youre aging better than you thought you would. I think thats perfectly true. Each book feels like my last book, and then i think, like a dedicated alcoholic, that one more wont do me any harm. Kroft David Cornwell is not a functioning alcoholic, but hes created a stableful of imperfect characters over the years as john la carree, a name he does not answer to. To its an abstraction that exists in his writing studio and on the cover of his books, like a spys name on a phoney passport. Looking after la carree, keeping myself young, keeping the critical nature of life whizzing in my head, thats being la carree. Im steve kroft. Im lesley stahl. Im scott pelley. Im bill whitaker. Im anderson cooper. Its a lot easier to make decisions when you know what comes next. 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Wertheim its a story as old as cities themselves prosperity comes to town and triggers a building boom. In modern San Francisco, rows of skyscrapers have begun lining the downtown streets and recasting the skyline, monuments to the triumph of the tech sector. Leading this wave, the Millennium Tower. 58 stories of opulence, it opened in 2009 to great acclaim, then the tallest residential building west of the mississippi. Though priced in the millions, the inventory of posh apartments moved quickly. Yet for all its curb appeal, the building has quite literally one fundamental problem its sinking into mud and tilting toward its neighbors. Engineering doesnt often make for rollicking mystery, but San Francisco is captivated by the tale of the Leaning Tower and the lawsuits its spawned. As we first reported this past fall, its a story positioned albeit at an angle somewhere between civic scandal and civic curiosity, an illustration of what can happen when zeal for development overtakes common sense. foghorn when the fog rolls in over San Francisco, the skyscrapers live up to the name. The transamerica pyramid, long the gem of this skyline, now dwarfed, quaint as a cable car. The new Salesforce Tower stands as the tallest building in town. Nearby, facebook just took out the citys largest lease on this building. And across the way, the Millennium Tower at 301 Mission Street, 645 feet of reinforced concrete wrapped in glass. Inside the 550 million construction, as advertised lavish condominiums flush with amenities, attracting tech barons and venture capitalists. San francisco royalty, former 49ers quarterback joe montana, bought here. Pat dodson its a wonderful location. Wertheim so did jerry and pat dodson. Eight years ago, they paid 2. 1 million for a twobedroom and planned to live out their retirement enjoying the sweeping view from the 42nd floor. Pat dodson everything i had read indicated that it was the best building in San Francisco. It had won numerous awards. It had particularly won awards for construction, which was very important if youre thinking of moving into a high rise. Wertheim initially no buyers remorse . Pat dodson absolutely not. Jerry dodson no, not at all. I mean, in fact, buyer euphoria. Wertheim one feature the dodsons hadnt counted on. These devices are what . Jerry dodson theyre stress gauges. Wertheim dozens of stress gauges dot the walls of the Millennium Towers basement. They measure in millimeters the slow growth of cracks along the columns that rise up from the buildings foundation. Jerry dodson theres enough of them, a spider web of cracks, that you have to be concerned about whats going on underneath. Wertheim these cracks are one of the only visual clues that theres anything profoundly wrong here. These are the rounds you do now . Jerry dodson yeah, ive been told by structural and geotechnical engineers that i should be watching. Wertheim both an engineer and a lawyer, dodson makes daily rounds of the basement looking for signs of deterioration. Its a routine hes kept since the Homeowners Association called a meeting of residents in may of 2016. Pat dodson they just said we should be there and made us sign in, which alerted us at that time that there was something serious. Wertheim so, what was the nature of that meeting . Pat dodson it was the first time we were told that the building was sinking and was tilting. Wertheim engineers have tracked sinking here since the day the foundation was poured in 2006. Nothing unusual about that. Heres what is unusual their data shows the Millennium Tower sinking 17 inches so far and tilting 14 inches to the northwest. Aaron peskin let me ask you this what do you think is going on . Why is this happening . What can be done about it . Wertheim once news got out, local politicians seized on the story. Engineer i dont know. Wertheim and the very engineers celebrated for the buildings design suddenly were being compelled to explain why the building was moving. Woman if youd like to speak, please do approach the mic. Wertheim when the millennium hearings opened to public comment, it brought some livelier moments. Man i think whats needed here in the city by the bay, where everybody thinks everythings okay, but they might want to hear what ive got to say. Wertheim this, after all, being San Francisco a city once described as 49 square miles surrounded by reality. Aaron peskin has a certain vitality himself. A longtime city supervisor, he starts most days with a swim in the bay, then meets constituents at a north beach coffee shop where the Millennium Tower is a popular topic. Peskin is leading hearings into what is causing the trouble. You subpoenaed some of the engineers involved with Millennium Tower. Why . Peskin we dont generally like to subpoena people. That power has not been used by the San Francisco board of supervisors for some quarter of a century. Wertheim 25 years, youve never issued a subpoena before . Peskin thats correct. Wertheim when you got them in here, what did you learn . Peskin their answers were less than satisfactory. Nobody has owned up to why this building is not performing. Wertheim some homeowners arent waiting around to find out. Andrew faulk and frank jernigan, who worked at google when it was still a startup, got all the answers they needed when they rolled a marble across their floor. Jernigan we didnt do it but once, and this is what we got. We were shocked when that thing stopped, turned around and started rolling back. Faulk back to where the building is tilting. Wertheim the northwest side. Jernigan i thought, we dont know if this buildings going to stand up in an earthquake. And so, i became severely frightened of that. Faulk and we got out. We left. We left really most all of our belongings. We just left. Wertheim the couple sold their apartment last year, and moved to a twostory home in the Pacific Heights neighborhood. Jernigan we sold it for approximately half of what it was valued at before this news came to light. Wertheim you lost seven figures. Jernigan yes. Wertheim . On the sale of this apartment . Jernigan yes. Faulk thats right. Jernigan i would say we lost 3 million to 4 million. Wertheim speaking of astronomical figures. bell half a world away, in a suburb of amsterdam, San Franciscos sinking tower came across the radar of petar marinkovic, an engineer who works with the European Space agency to track earthquakes. Using signals from a satellite 500 miles above the earth, marinkovic measures ground movements around fault lines. In 2016, he happened to be studying the bay area when something caught his eye. This is obviously downtown San Francisco. What do the green dots represent . Marinkovic green dots represent stable, no displacement or no significant displacement. Wertheim stable structures . Marinkovic stable structures, yeah. Wertheim and the red dots . Marinkvoc few red dots means somethings going down. Somethings settling. Somethings subsiding. Somethings sinking. Wertheim did you know what it was . Marinkovic no. Wertheim had you heard of Millennium Tower before this . Marinkovic no. Wertheim ever been to San Francisco . Marinkovic no. Wertheim what can you tell us about the rate of sinking . Marinkovic its in the ballpark of. Between 1. 5 to two inches a year. Wertheim 1. 5 to two inches a year . Marinkovic yeah, yeah. Wertheim and theres nothing to suggest the sinking and tilting are slowing down, much less stopping. But is it dangerous . As recently as this past summer, the city of San Francisco and its engineers asserted the building is safe even in the event of an earthquake. Even so and this is a central theme to this saga there are as many opinions about the trouble at the Millennium Tower as there are engineers in the bay area. Jerry cauthen theres a lot of things about this building that are unprecedented. Wertheim Jerry Cauthen, one of those local engineers, did not work on the tower but has worked on nearby projects. Some sinking for buildings is acceptable, right . Cauthen some is. They actually anticipated that over the life of the building, it would sink about four to five inches. Thats like a hundredyear life. Wertheim this is double and triple that. Cauthen yeah. I dont think they. They obviously didnt anticipate anything like this, close to it. Wertheim by they, cauthen means millennium partners, brandname developers with high end skyscrapers all over the country. Cauthen says their big mistake was building Millennium Tower out of concrete instead of steel. Cauthen concrete is often cheaper. And its just as good, but it is a lot heavier. And so, you got to design your foundation and your subsurface to support that higher weight. Wertheim what lies beneath the surface at 301 Mission Street is critical to the story. It fell to millenniums geotechnical engineers to analyze the ground below and design an appropriate foundation. They went with a foundation driven 80feet deep into a layer of dense sand, and the city approved the plan. Larry karp is a local geotechnical engineer. He did not work on the tower either but specializes in bay area soil conditions. What is under the ground here . Karp what is under the ground here at the surface is rubble from the 1906 earthquake, brick and sand and debris. Everything you could imagine is down here. Wertheim you have to go 200 feet below the Millennium Tower, through layers of history in the ground below landfill from the time of the gold rush, sand, mud and clay to reach solid rock or bedrock. Karp says the fact that the Towers Foundation isnt anchored in bedrock, well, thats a problem. Karp for a big, heavy building, a concrete building, those foundations have to go deeper. For a building like this, they have to go to bedrock. Wertheim otherwise, he says, the structure will sink into less sturdy layers of sand and mud. And because it doesnt sink or settle uniformly, you get tilting. Karp look at the whole line. Wertheim karp told us he can see the tilt from the middle of Mission Street a few blocks away. We couldnt see it, so we asked Jerry Cauthen if he could. Cauthen no, i dont. Its very hard to see. Its not enough of a tilt to see. This is not like the Leaning Tower of pisa. Wertheim and there it is the inevitable comparison to that greatest engineering gaffe of them all not the landmark any presentday developer wants to be associated with. Millennium partners declined our request for an oncamera interview but pointed out their tower was built to code. They blame their neighbors, specifically construction of the transbay terminal San Franciscos answer to Grand Central station right next door. Transbay declined an oncamera interview, too, but told us millennium had already sunk ten inches before work began on their project. And right on cue, here come the lawyers. Lawyers for millennium partners, for the transbay terminal next door, for the towers Structural Engineers and geotechnical engineers, for the architect and the builder, for the Homeowners Association, and for the city. And yes, even for joe montana. There are 20 parties to various Millennium Tower lawsuits and counting. Dodson it takes a half hour just to take attendance of the lawyers in the courtroom. I mean, literally. Wertheim thats a lot of billable hours. Dodson a lot of billable hours. Wertheim courtroom circus aside, we asked aaron peskin, the city supervisor, simply whats going on here . Peskin everybody is afraid to tell the truth, because if we get to the bottom of this, they are worried that it is going to, in some ways, slow down the building boom that is happening in San Francisco. Wertheim time is money in construction, and we dont want to stop this frenzy. Peskin absolutely. Absolutely. Wertheim this drama has hardly had a chilling effect. Everywhere you look in downtown San Francisco, theyre building another skyscraper. And the latest musthave amenity for all these new constructions bedrock. In what might be the first act of buildingonbuilding bullying, tech giant salesforce stuck it to millennium via twitter. Peskin bedrock, baby. Wertheim you think that was in reference to whats going on across the street . Peskin i dont think it was in reference, i know it was in reference because i know the people who built that building. Wertheim the city still doesnt require all skyscrapers to go to bedrock, but it has made some changes to prevent another tower from leaning. More review of foundations for new tall buildings, for one. As for the Millennium Tower, on this almost everyone agrees it needs to be fixed. What do we do with a tilting, sinking building . Cauthen ive heard freeze the ground in perpetuity. Freeze the ground. Wertheim perpetually freeze the ground under this building . Cauthen perpetually freeze the ground. Theyve talked about removing 20 stories from the top of it to reduce its weight. Wertheim what. What do you think of that, lopping off. Cauthen god, i hope they dont have to. Wertheim . Lopping off the top 20 stories . Cauthen shoot, that sounds like a horrible mess. I think more likely the surest way is to get it on piles to rock. Wertheim bedrock. There may be no avoiding it. The parties are in mediation, debating just how to drill down to bedrock under an existing skyscraper with a thousand People Living upstairs. And then, theres the indelicate question who pays for all this . Peskin i am hopeful that the city and millennium and the Homeowners Association will implement a fix in the near term and fight about the money later. But times ticking. Cbs money watch sponsored by lincoln financial, helping you protect those you love most. Good evening. Heads of state and Corporate Executives gather in davos, switzerland, for the World Economic forum this week. Netflix, intel, and starbucks report earnings this week. And fords first 2019 mustang bullet was auctioned off for 300,000, all proceeds going the charity. Im elaine quijano, cbs news. 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