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Associated Pennsylvania Constructors BOARD OF DIRECTORS MEETING

July 28-29, 2014 The Homestead Hot Springs, VA

A G E N D A

Monday, July 28 8:00 – 8:10 a.m. Meeting Goals, Self-Introductions 8:10 – 8:45 a.m. National Association Reports

TRIP Report - Will Wilkins, President, The Road Info Program ARTBA Report - Pete Ruane, President/CEO, ARTBA 8:45 – 11:15 a.m. PennDOT Quality Assurance Session

11:15 – 11:30 a.m. Wrap-Up 11:30 a.m. Break for Lunch and Activities

Tuesday, July 29 8:00 – 8:15 a.m. Recap Monday’s Discussions Robert Latham, Executive Vice President

8:15 – 8:30 a.m. Mark Compton, Chief Executive Officer PA Turnpike Commission 8:30 – 11:15 a.m. PennDOT Quality Assurance Session

11:15 – 11:30 a.m. Wrap-Up APC Business Session 11:30 a.m. 1. Minutes of May 6, 2014 Presented for Approval ……Clarke (enclosure) 2. Approval of Consent Agenda…………………………Clarke

3. Financial Update…………………………………….Latham (enclosure)

4. Building Committee Recommendation………………Kinsley (enclosure)

5. Approval of New Members …………………….Hoogstraten (enclosure)

(Continued)

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Associated Pennsylvania Constructors Board of Directors Meeting July 28-29, 2014 Page Two

6. Dues Receivable Report……………………………...Hempt (enclosure)

7. Nominating Committee Report……………………Hawbaker 11:45 a.m. Additional Items from APC Board Members for Discussion 12 Noon Adjourn APC Consent Agenda

APC Committee Reports 1. PHIA Report………………………...……... (enclosure)…Wagner 2. Safety Committee Report………………. (enclosure)…Wagner

3. APC-PTC Liaison Report………………… (enclosure)…Hempt 4. Risk Allocation Committee…………………(enclosure)…Hoffman 5. TCI-PAC Report…………………………….(enclosure)…Snyder 6. Bridge Committee Report…………………...(enclosure)…Girondo 7. Investment Committee Report………………(enclosure)…Shorb Future Meeting Dates APC Board of Directors Meeting November 19, 2014 Hershey Lodge & Convention Center APC/PennDOT Fall Seminar November 19-21, 2014 Hershey Lodge & Convention Center

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Associated Pennsylvania Constructors BOARD OF DIRECTORS MEETING

May 6, 2014

Hilton Harrisburg

Presiding: Geoffrey W. Clarke, President Present:

Geoffrey W. Clarke, President Craig Hoogstraten, Vice President Max C. Hempt, Treasurer Robert E. Latham, Executive Vice President Richard Barcaskey (CAWP) Leonard Bellanca William J. Cummings Mark Eckman Barry Epley Dominic P. Girondo Michael Glezer Daniel Hawbaker Michael Hawbaker Albert Hoffman Bruce Hottle Kevin Johnson James Kutz Thomas Lawson Kevin Loftus Daniel Lucas John F. McCaskie Stephen M. Muck Charles J. Niederriter

David Patterson Robert B. Priest

Kevin Reed John P. Rutter Wayne Schug Kevin Schultz Mark Snyder Richard Wagman Edward Wagoner Thomas Westrom Kent Wible George Wolff (Triad) Richard Kelly (Triad) Jason Koss (CAWP) Jason Wagner (APC Staff) Joseph Mulvihill (APC Staff) Lisa Sagan (APC Staff)

Absent: James J. Anderson

Steve Bussanmas Terry Callahan Francis J. Colella Matthew Cummings James Davis (CAEP) Donald Detwiler W. Logan Dickerson John DiRenzo Michael J. Driscoll, Jr.

L. A. Glasgow S. Scott Grannas Greg Gunn John Kibblehouse, Jr. Patrick Kinsley John R. Kulka Dennis Luzier Joseph M. Martosella, Jr. Owen McCormick Charles Merlo George E. Mezey John Mills Robert Miner A. Ross Myers William J. O’Connor James Parsons Bruce Rambo Merritt Rimshaw Mark Schug Wilmer Schultz George Searle Matthew Shorb Clayton Stahl Andrew Swank Russell Swank James Van Buren Kenneth Wolf

President Clarke called the meeting to order at 2:01 p.m., self-introductions were made. Approval of Minutes – Motion was made and carried to approve the January 7, 2014, meeting minutes and the March 13, 2014, conference call minutes. Approve Agenda – Motion was made, seconded and carried to approve the amended consent agenda.

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APC Board of Directors Meeting May 6, 2014 – Page 2 Approve 2013 Audit Report – Motion was made, seconded and carried to approve the 2013 audit report. (Latham) - APC dues are based on the volume of jobs awarded to our members. Therefore APC’s overall receivables are down because there was less work in the previous two years. However, with the increase in the overall volume of work in 2014, Latham foresees an increase in revenue for future years. APC continues to write down the debt from the ETF to APC over a five year period. The end result is that APC will struggle with dues revenue, but is doing very well with member contributions to the ETF. Approval of New Members - Motion was made, seconded and carried to approve the new members. Funding Advocacy Report (Wolff, Snyder, Latham, Kelly) – (Wolff) - Drexel University and the Salvation Army are the newest members to join the KTFC. Drexel University realizes that there’s no sense in turning out engineers if there are no jobs for their graduates. (Snyder) - Reminded that all board members are encouraged to contribute a $1,000 to the PAC as part of the participation plan for the TCI-PAC. There a several ways for board members to contribute, which are listed in the TCI-PAC Report. The gubernatorial strategy for 2014 is to support Governor Corbett with a donation of $50,000, with numerous events throughout the year. The PAC has also held events for Rafferty, Markosek, Vereb, and Costa. Meetings are also scheduled with the following legislators: Boback, Gingrich, Grove, Saylor, Kim, M. Keller and Mulchany. The PAC has an estimate of $40K in commitments. (Latham) – ETF is continuing their funding efforts of Act 89 and MAP 21, which will also help support those legislators who voted for the bill. Latham and Wolff met on May 5, 2014 with Congressman Schuster as part of a fundraiser with the bicycle collation. Schuster believes in the short term that we need to fix the trust fund and analyze the reauthorization of long term funding in 2015. Board members were asked to sign up to meet with a congressional member they know or one that’s within their district. APC is also participating in the annual Fly-In (June 9-11, 2014). Board members were asked to buy a ticket for the ARTBA raffle. The TCI-PAC is writing out checks (up to $5,000) to legislators who are under fire for supporting the transportation bill. (Kelley) - Reported on the post Act 89 polling results. The first question asked was: How important do you think it is that the state of PA improve safety and relieve congestion on our highways? About 90% of the people polled responded that it is very important and somewhat important to them. What is significant about that is the intensity of it. The questions of the poll were designed to determine whether people understand the connection between highway investment, short term job creation, long term economic benefits and safety improvement. What the polled showed is that people did understand the connection. What is discouraging is that 59% of the people polled were not aware of the new funding act. 58% of the people were in favor of spending $2.50 a week to improve safety and relieve congestion. For those not in favor of the $2.50 increase, per week, they were asked whether they would be more favorably aligned if they knew that it would create 50,000 new jobs in PA? The majority of folks were in favor. What was learned from this is that given 59% of the people were not aware that the funding act had passed, therefore it is less likely to be a campaign issue unless candidates make it an issue. The overall communication program is focused on the following: helping to support the incumbents, discussing the benefits of a decade of investment and to reinforce PHIA as the go to source for information regarding highway issues. Risk Allocation Committee Report (Hoffman) – The subject of warranties, by far, has been the biggest challenge facing RAC. The Department’s view on warranties is that with continuous improvement must be made to achieve better quality in order to decrease the Department’s capability. Simply, pavements are not lasting as long as they once did and the Department would like the contractor to back their work with a guarantee; and provide their “A Teams” on a project. PennDOT feels that the contractor is the only one who

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APC Board of Directors Meeting May 6, 2014 – Page 3 can control quality. The Department’s view of warranties is unwavering. PAPA has signed on to the idea of warranties. The industries’ views are: they agree in the improvement of quality but not through the use of warranties; the design and the existing conditions are not under the control of the contractors; warranties with long durations offer challenges to the companies and to their surety relationships; offer a complex contractual relationship when the work involves subcontractors; decrease capacity / decrease competition will lead to higher prices; and numerous conflicts with existing specifications including Section 100. The industry would like to review the Department’s data and see if there is a trend in the decrease in quality, as well as explore a guarantee on materials and workmanship for a period of time on a nonperformance based warranty. What Hoffman offered to the board is that APC does not have to develop our position moving forward but rather develop our stance weather we should continue to resist the movement at all costs, until the Department forces it upon us or shift gears and commit to it. The Department has agreed to clean up the co-permit tee language for the erosion control permit. APC would do another survey to its members in order to locate specific problems. The industry is having problems on standard projects with no special provisions for unexpected hazards. APC is asking PennDOT to set-up standard specifications on the testing, handling and disposal of unforeseen hazards and how contractors will receive payment. The Department has agreed and will look into setting up standard specifications. Section 901.03 (b) is not being enforced equally across the state. APC requested that the specification be limited to things that contractors can quantify. The Department has heard the industries comments and are in the process of drafting and updating the specification. PennDOT was receptive on developing a series of approved remediation strategies and methods in dealing with hairline cracks in pipes after the work is done. Ad-hoc Meeting with PTC Engineering (Hempt) – One of the major issues is that traffic is no longer under engineering. The PTC has agreed to work with the contractor, this season, in work zone traffic control lane closures. But this fall there will be new specifications on when contractors can and cannot uncover signs, slow down traffic and take a lane. The PTC has not been consistent as to when contractors can and cannot use service gates so they have agreed to publish on the project bid documents when gates are available to the contractor for exit and entry purposes. A major concern for contractors is the 70 mph speed limit through Blue Mountain to Morgantown with a work zone speed of o a 55 mph. The PTC has agreed to go back and revisit the posted speed limit. The Turnpike has asked that contractors not call Turnpike Commissars when there are issues with mix designs. Warranties Under 408 Specifications (Kutz) – The provisions would require prime contractors to guarantee the performance of certain items for an extended period of time after the job’s done. There are existing portions of the 408 that protect the Department in lieu of the warranty; one of which is the latent defects. Any contractor that does work is ultimately responsible for a latent defect if it’s discovered after the job is completed and proven that the contractor breeched the contract. The label of deficiencies which are to be repaired are both difficult to measure, and are in some cases more stringent than the original contract requirement. Another problem specific to the warranty language is the liquidated damages proposed by the

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APC Board of Directors Meeting May 6, 2014 – Page 4 Department in the warranty specifications are clearly a penalty. The warranty specifications also conflict with PennDOT’s seeing limitations, as certain work should not be performed during certain times of the year. Breakout Discussions (Latham) – The breakout session yielded the following: Threats:

Aging and inexperienced workforce Lack of top level staffing at the districts. PennDOT has not retained good people as

employees. Brain drain. Lack of experience now in positions that make decisions. Reauthorization at the federal level. Stand to lose all the gains made by Act 89 Repeal or altering Act 89 to jeopardize future funding Potential change of PennDOT leadership Quality dilemma. Both an opportunity and a threat Pushing for “better quality” without hard data or evaluation of best practices. Doing this

without the industry’s input. o Lack of a clearing house o Lack of lessons learned

Differences among the 11 PennDOT districts present problems to the industry. Too many decision makers? No centralized focus?

Strengths:

Strong financial balance sheet. Loyal core membership –time and $$ support. Good brand with political leaders –trusted. Recognized experts in transportation field. Generally, opinion sought on matters by PennDOT, Turnpike Commission. Personal relationships of staff with DOT and GA.

Strategic Planning / Opportunities:

PennDOT may not be looking at us as the experts. Not recognized? People involved with the issues need to be the ones in communication with PennDOT. Are our relationships translating to results/trust? Are we being ignored? Do we identify “issue leaders” to be called upon as experts in certain areas? Having more people involved on committees can possibly lead to a more direct involvement

with PennDOT on the issues. o More regionalized outreach to younger or rising executives within companies at APC

meetings. o Perhaps reaching this audience with technology and online meetings.

Quality dilemma. Both an opportunity and a threat Are we going to play a role in the selection of the next PennDOT Secretary? Vision for the department and where are they going?

Weakness:

Little industry comment on the proposed clearance transmittals when issued by the department:

o Not a lot of people respond during comment period o Need to be more effective “heading this off at the pass” o Are we delivering this information effectively? o Role for the association to fill this void?

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APC Board of Directors Meeting May 6, 2014 – Page 5

Lack of effective communication by the department on what they are doing with increased transportation funding.

Push to get more done with compressed timeframes—compressed schedules. Growing concern of PennDOT doing more work with their own forces/employees.

Upcoming Meetings:

ARTBA TCC Fly-In June 9-11, 2014 Washington, DC APC Summer Board Meeting July 27-29, 2014 The Homestead, Hot Springs, VA APC/PennDOT Fall Seminar November 19-21, 2014 APC Board Meeting November 19, 2014 Hershey Lodge, Hershey, PA

Adjournment – There being no further business, after motion was made, seconded and carried to approve, President Clarke adjourned the meeting at 5:29 p.m.

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ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting - July 28, 2014

Notes 2013 2014ASSETS

CASH AND INVESTMENTS 851,423.63 1,006,375.50

Dues Receivable - Active 19,794.00 42,926.48Dues Receivable - Associate 10,500.00 4,900.00Dues Receivable - Affiliates 34,028.00 4,811.00Other Association Receivables 718,853.51 761,831.19TOTAL ACCOUNTS RECEIVABLE 783,175.51 814,468.67

Prepaid assets 61,079.25 58,581.74TOTAL CURRENT ASSETS 1,695,678.39 1,879,425.91

Real estate purchases 406,799.30 406,799.30Building 1,859,960.92 1,859,960.92Renovations 1,458,986.73 1,476,271.52Office equipment 409,975.26 403,348.12Vehicles 132,976.37 132,976.37TOTAL PROPERTY, PLANT & EQUIPMENT 4,268,698.58 4,279,356.23

Accumulated Depreciation (3,330,870.55) (3,401,742.69)NET PROPERTY, PLANT & EQUIPMENT 937,828.03 877,613.54

Investment - Controlled Corp. (272,491.00) (579,966.00)

TOTAL ASSETS 2,361,015.42 2,177,073.45

LIABILITIES AND NET WORTH

Accounts payable 62,564.13 75,264.18Line of Credit 0.00 100,000.00Accrued expenses 14,959.56 25,837.40Deferred revenue - dues 379,687.75 366,609.15Deferred revenue - other 13,977.32 6,325.97TOTAL CURRENT LIABILITIES 471,188.76 574,036.70

Post Retirement Health Insurance 252,193.00 219,804.00TOTAL LONG-TERM LIABILITIES 252,193.00 219,804.00

TOTAL LIABILITIES 723,381.76 793,840.70

NET WORTH 1,637,633.66 1,383,232.75

TOTAL LIABILITIES AND NET WORTH 2,361,015.42 2,177,073.45

ASSOCIATED PENNSYLVANIA CONSTRUCTORSBalance SheetJune 30, 2014

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ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – July 28-29, 2014

APC Building Committee Report Pat Kinsley, Chairman

The APC Building Committee consisting of Pat Kinsley, Steve Bussanmas, Max Hempt, Tim Tate, and Wayne Schug, along with APC staff Bob Latham and Ron Geist met on July 18, 2014 for the purpose of reviewing, discussing, and taking action on a comprehensive 100% building façade and parking deck condition assessment performed by Klein and Hoffman (K&H), Restoration Architects & Structural Engineers.

History. Seeking a cost-effective solution to the delamination of concrete fluting on the 5-story front and rear elevator/fire escape towers has been a challenge for the committee for several years. Additionally, the use of front loader equipment and plows for snow removal this past winter, caused additional wear and tear on the rear parking deck, as well as the vehicle and pedestrian ramps. Since the building is almost 50 years old, there has also been visual evidence of other façade maintenance issues.

S&H Findings. Tom Werner, K&H project engineer, presented the committee with an itemized list of 19 recommended repair tasks along with a progress set of drawings, accompanied with Opinion of Cost for each item. Their findings revealed extensive signs of corrosion in the reinforcement steel resulting in concrete spalling, joint failures between parking deck and building, much-needed replacement of backer rod and sealant around brick and window boxes, possible structural issues in the vehicle and pedestrian ramps, and pedestrian safety issues with the delamination of concrete fluting on the front of the building.

The most noteworthy recommendation is to remove the concrete fluting on both east and west towers and replace them with a stucco finish, eliminating the age-old safety issue of sections of fluting cracking off the building and falling onto pedestrian walkways.

Opinion of Cost. Due to anticipated scope of repairs and possible funding limitations, the consultant was instructed to separate the project into two (2) bid packages and also identify critical vs less critical needed repairs. It was determined that the “building façade” repairs were most urgent, in recognition of the safety and liability issues involving the concrete fluting. The parking deck, vehicle and pedestrian ramps, and basement garage were ranked second, with the exception of one item in Project 2, an expansion joint failure on the vehicle ramp which is allowing water penetration into the building’s basement main electrical distribution room. The Committee decided that this needs to be fixed immediately. Following is a summary of estimated costs:

1. APC Building Façade………….$421,125.002. Parking Deck & Garage……….$339,248.00

(continued on next page)

Committee Recommendation. After much discussion, the Building Committee is recommending to the APC Board that favorable consideration be given to approving both projects for fiscal year 2015, allowing the committee to take advantage of combining bid packages, with one mobilization cost. If it is determined that this is not financially feasible, the committee’s desire would be proceeding with Project 1 in 2015 and Project 2 in 2016.

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ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – July 28-29, 2014 Building Committee Report – page 2

As part of the K&H consultant contract, they are prepared to have bid documents prepared within the next few weeks. One or both projects could then be advertised and put out for bid in the 4th quarter of this year, with work to be performed in the May – August, 2015 time frame. # # #

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Approval of New Members Craig A. Hoogstraten

NEW ACTIVE MEMBER Midland Asphalt Materials, Inc. 88 Barrett Road Woodland, PA 16881 (814)857-5129 Shawn Ward, Technical Rep. (asphalt emulsions and related components)

NEW AFFILIATE MEMBER Vollers Excavating & Construction, Inc. 3311 US Highway 22 North Branch, NJ 08876 (908) 725-1026 Thomas Vollers, President, CFO, Treasurer (heavy, highway, utilities construction)

NEW ASSOCIATE MEMBER Zimolong, LLC 1429 Walnut St., Suite 1201 Philadelphia, PA 19102 (215) 665-0842 Wally Zimolong, Esquire (construction law firm)

RESIGNED/CANCELLED ACTIVE MEMBERS Baseline Contracting, Inc., Coplay, PA – no reason given Main Stream Industries, Inc., Bernville, PA – no reason given

RESIGNED/CANCELLED ASSOCIATE MEMBERS Cemex, Inc., Wampum, PA – failure to pay dues Hilti, Inc., Tulsa, OK – budget constraints

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1ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting - July 28-29, 2014

ACTIVE MEMBERS 2013CAMSCO Service, Inc. 425 Jilco, Inc. 748 Kriger Construction, Inc. 11,812 Kuharchik Construction, Inc. 5,500 Leeward Construction, Inc. 6,068 3 Rivers Pipe Profiling LLC 1,249 Walsh Construction Company II LLC 16,975 Total 42,777

AFFILIATE MEMBERS 2013CAEP - Total -

CAWP - A. Folino Construction, Inc. 4,261 Noralco Corp. 550 Total 4,811

ASSOCIATE MEMBERS 2013Construction Crane & Tractor, Inc. 750 Dixon Contracting & Supply 750 Jersey Precast 750 McCormick Taylor, Inc. 750 Prevailing Wage Group 400 Tool Sales & Service Co., Inc. 750 Total 4,150

TOTAL DUES RECEIVABLE 51,738

7/17/2014

2014 DUES RECEIVABLEby Max J. Hempt

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ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting - July 28-29, 2014

2014 DUES RECEIVABLEby

Dues Invoiced Dues Dues(Net of Writeoffs) Paid Receivable

ACTIVE MEMBERS 86 Members (invoiced) 434,295 79 Members (paid) 391,518 7 Members (outstanding) 42,777

AFFILIATE MEMBERS (CAEP) 6 Members (invoiced) 24,678 CAEP (13 Members @ $850) (invoiced) 11,050 4 Members (paid) 24,678 CAEP (paid) 11,050 2 Member (outstanding) 0 CAEP (outstanding) 0 CAEP Totals 35,728 35,728 0

AFFILIATE MEMBERS (CAWP)57 Members (invoiced) 168,903 CAWP (58 @ $300 + 1 subsidiary) (invoiced) 17,10055 Members (paid) 164,092 CAWP (paid) 17,100 2 Members (outstanding) 4,811 CAWP (outstanding) 0 CAWP Totals 186,003 181,192 4,811

Total Contractor Dues 656,026 608,438 47,588

ASSOCIATE MEMBERS238 Members (invoiced) 176,451 56 ARTBA Members (invoiced & paid) 19,600232 Members (paid) 172,301 56 ARTBA Members (paid) 19,600 6 Members (outstanding) 4,150

Total Associate Dues 196,051 191,901 4,150

7/17/2014 852,077 800,339 51,738

Max J. Hempt

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PA Highway Information Association (PHIA)

Submitted By: Thomas E. Lawson, President

Jason W. Wagner, Managing Director PHIA’s Board last met on February 19, 2014. A future board meeting is being planned for October. Annual Meeting The 2014 Annual PHIA Conference was held on Wednesday, May 7, 2014 at the Hilton Harrisburg. The conference was in conjunction with an APC Board of Directors meeting. The conference was a huge success with the setting of new “records” in attendance, sponsorship and overall profit for the organization. Over 200 people attended the conference and much positive feedback was heard. The agenda featured Secretary Barry Schoch as the Keynote Speaker. Additional speakers and presenters were: Former Maryland Governor Bob Ehrlich, PA Turnpike CEO Mark Compton, and a panel discussion by the CEO’s of the Harrisburg, Lancaster and Huntingdon chambers. A special presentation by Stan Caldwell, Executive Director of the Transportation Center at Carnegie Mellon University, was given on the future of transportation and the university’s research efforts on a “driverless car.” All the presentation on the conference are available on the PHIA website at: www.pahighwayinfo.org/PHIACONFERENCE/ Transportation Advocate of the Year Award At the annual conference, PHIA presented its highest honor which was last given in 2011. This year the award was given to Governor Tom Corbett and Secretary Barry Schoch for their advocacy in the passage of Act 89. Additional awards and recognitions were made to various legislative and industry leaders who also contributed to the overall success of the passage of Act 89. Programs and Advocacy With the passage of Act 89, PHIA is moving toward a supporting role to show the public the positive benefits of greater transportation investment. PHIA has begun production of monthly videos to release to the public, media and elected officials that will contain information on the safety and quality of life benefits of transportation investment. The first introductory video has been cut and is to be released in the near future. Board Make Up At the PHIA’s board meeting in February, Joseph McAtee with Urban Engineers was approved as a new member to the PHIA Board of Directors. Additionally, PHIA will need to seek a new president in the months ahead. Current president Tom Lawson has expressed his intentions to step down after 4 years of service as president.

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APC Safety Committee Report Submitted by Chris McHugh, Chairman

The APC/PennDOT Joint Safety Committee last met via conference call on January 22, 2014 and will meet again on August 8, 2014 at the APC Offices in Harrisburg, Pa.

New Chairman Named After many years over service and dedication to the industry, Steve Tomlinson stepped down as chairman of the committee. APC President Geoff Clarke named Chris McHugh of HRI, Inc. as the new chairman of the committee. Chris has been a long-standing member of the committee and has been committed to working on a variety of safety-related issues over the years.

Safety Session at Upcoming 2014 Fall Seminar The committee is planning on meeting in early August and chief among its agenda is organizing the session at the upcoming APC/PennDOT Fall Seminar. This year, a Safety Session will be a part of the Fall Seminar and the committee plans to organize and fill the time slot with a variety of presenters that will address the following topics: dealing with OSHA on jobsites; the ongoing establishment of the Work Zone Traffic Control Manager program; and a new safety initiative by the PA Turnpike Commission.

Formation of Work Zone Traffic Control Manager The committee has been closely working with PennDOT over the past year on developing this program, which came directly from the ongoing concerns expressed by safety committee members.

PennDOT developed an RFQ to contract with an entity that would assist in the development of a curriculum. The RFQ responses were due by February and the department recently announced that ATSSA was awarded the contract.

ATSSA will be a “Master Trainer” and develop the curriculum and begin the process of training industry “trainers” who will be certified by the department to train industry personnel. This process will work similar to the current Flagger Training program that PennDOT currently requires. The exception is that the certification requirements will be more vigorous and eventually PennDOT will require certified and trained work zone traffic control managers on all jobs over the next several years. This requirement is also anticipated to apply to any entity working on roadways in Pennsylvania such as utilities, local governments, etc. It is anticipated that the first “role out” of this program won’t begin until 2015 after a year so that PennDOT and industry employees can be properly trained and certified.

New Publication 213 Released PennDOT released an updated version of Publication 213. While the document does not represent a massive overhaul in the rules and regulations pertaining to the maintenance and protection of traffic, it does now mirror a look as outlined in the federal 2009 MUTCD which the department adopted approximately a year ago. The new Pub. 213 has color and B&W versions versus the old B&W document only, the maps are better designed for high quality printing, and many of the notes are now on opposite pages as the drawing making the overall publication much larger. One of the most significant changes coming from the new publication is that all entities putting up a traffic pattern now much contact the appropriate district TMC to report any traffic restrictions. PennDOT is using this system to coordinate activities on a statewide basis and to provide better “real time” information to the motoring public.

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Ad-hoc Meeting with PA Turnpike Engineering Max J. Hempt, APC Treasurer

The APC group again met with PA Turnpike Engineering staff on July 7, 2014. APC attendees included Max Hempt, Joe Catena, Joe Rieger (AA Myers), Mike Sulesky (New Enterprise), and Bob Latham. PTC’s Mark Compton, Brad Heigel and Mike Shaak attended. Work Zone Traffic Control Lane Closures PTC indicated they would include sign covering and uncovering outside the closure timeframe. Also, Lane Rental Fees on 15 minute increments was discussed. Entrance and Exit for Contractor Vehicles PTC will publish clearly in project bid documents if a particular gate is available to the contractor for exit and entry. PTC asked the contractors to pay more attention to gate guards and have them be more diligent in their work. Electronic Cross Sections and CADD Files It was suggested that the PTC provide CADD files and cross sections for contractors to have prior to bid. PTC. PTC stated that they looked at PennDOT projects and that only a few included drawings on ECMS. They are also concerned about costs to modify EBS.

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Risk Allocation Committee Report

Submitted by Albert Hoffman, Chairman

The Risk Allocation Committee’s attention continues to be concentrated on PennDOT’s rapid movement toward development and implementation of warranty specifications. APC responded to the Department’s Clearance Transmittal seeking comments on its proposed seven year asphalt paving warranty, stating:

Misapplication of warranty specifications could be costly to the Department and Contractors. Increases in the length of warranty result in increased risk, and therefore higher costs. Shorter term warranties and / or some alternate method of performance guarantee may be the

most cost effective way for the Department to achieve its objectives. The Department should carefully evaluate the net impact of warranties on project quality on a few

projects before warranties are widely implemented. Proper project application, bid prices and number of bidders should be evaluated prior to the

adoption of any warranty longer than five years. APC officers and staff learned at a recent workshop on project quality that state DOT’s (except

Michigan) which have tried warranties have concluded that they are not worthwhile.

A subcommittee of the Risk Allocation committee appointed to recommend an APC position on warranties concluded that longer term warranties presented serious difficulties for contractors without the prospect of improved quality. The subcommittee recommended that all facets of the Industry jointly approach Department senior management to suggest alternative ways to improve quality and possibly provide for a relatively short term materials and workmanship guaranty. APC met with ACEC on July 2 to discuss contractor problems with acquisition and / or revision of environmental permits necessary to proceed with awarded projects. CEC will work with PennDOT to develop design strategies to minimize the need for post-bid permits. CEC intends to discuss with DEP upper management the need to (in many instances) improve the County Conservation Districts’ process of issuing permits required by contractors to prosecute projects which the Commonwealth has already decided to pursue. Industry requested that the Department clarify the reasoning for its recently proposed Pub. 408 change to grant authority to District Executives to suspend work under specified circumstances, particularly how time and cost issues arising from such suspension will be addressed. RAC initiatives which continue to be pursued include:

Revision of Section 901(b) to clarify the limits of roadway maintenance which the Contractor is to perform as part of Lump Sum Maintenance and Protection of Traffic.

Standard Special Provision for testing, disposal and payment of unanticipated hazardous excavation discovered on projects.

Development at all pre-bid meetings a project specific decision tree to expedite problem resolution.

Improvement of the 100-year pipe process.

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TCI-PAC Report By

Mark Snyder, Chairman

Supporting Those Who Voted for Transportation This spring the TCI-PAC supported the re-election campaign of Republicans and Democrats who voted for the transportation bill. They included Rep. Karen Boback , Mike Fleck, Mauree Gingrich , Seth Grove Stan Saylor, Patty Kim, Mark Keller, and Erin Mulchany these members faced significant challenges in the Primary and the TCI-PAC gave the maximum we have ever contributed, up to $5,000 for most.

Legislators slated for General Election support include: Harper, Hackett, Helm, Sonny, Kinsey, and Barbin. PAC Board members have held events for Reps. Dave Reed and Kerry Benninghoff along with Senator John Rafferty.

TCI-PAC Fundraising Event The May 6 Harrisburg TCI PAC Reception netted more than $40,000 in contributions to the TCI-PAC. It was highly successful and well attended by both industry members and elected officials.

TCI-PAC Fall Fundraising Our commitment to helping supporters extends to Governor Tom Corbett. We have written checks from the PAC in total of $25,000 to the governor’s campaign with another $25,000 from the PAC budgeted. Our March 19 event raised a total of $40,000 with $15,000 coming from the PAC. We participated in other events which raised a combined $300,000 for the governor.

As a result of our commitments to elected officials, we are targeting an additional $100,000 in fundraising for this summer.

Board of Directors Participation Plan The TCI-PAC has established a goal of 100% minimum participation by Sponsoring Association Boards Members; $1000/company/per year by one of the following methods:

One check from board member to TCI-PAC Company PAC check to TCI Multiple checks from executives in board member company Sponsor TCI event at $1000 level or greater Initiate “Company Plan”

The APC Board approved this policy during the April 25, 2011 Board meeting.

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APC BOARD PACKET -


Bridge Committee Report

Dominic P. Girondo, Chairman The APC/PennDOT Bridge Committee met at the International Bridge Conference in Pittsburgh on June 10, 2014. The meeting featured three presentations:

Tappan Zee Bridge – Ken Wright, PE, Design Manager for HDR, discussed the successful team’s rationale for the overall arrangement of the structure, then described how concepts for many project elements such as pipe piles, hung footings, pier caps, steel girder dimensions and splice locations, and the pre-cast deck dimensions and arrangement were driven the construction team’s evaluation of the most efficient construction methods and available suitable equipment to meet an aggressive construction schedule.

Bent Plate Modular Units – Karl Barth, PE described the development of these units, which are

small scale standardized trapezoidal box beam sections which can be inventoried, then assembled in variable lengths for relatively short span bridges.

Pre-cast Decks - Troy Jenkins, PE, Chief Engineer of Northeast Precast, presented an overview

of various methods available of detailing, casting and installing pre-cast concrete bridge deck panels.

To address the long standing issues of inconsistencies in payment for bolts used for structural steel repairs on PennDOT projects, a Task Force for Bolt and Rehabilitation Steel Payment was formed at the April 17 Bridge Committee meeting. As a result of its initial meeting, the Task Force reported its recommendation that identical repairs should be bid and paid as complete “each” items, for which the bid price would include access, removal, drilling, replacement steel and bolts. The extra effort required to bid “each” items will be more than offset by fair payment to the contractor for the actual labor and material required. “Each” based pay items might also serve as an adjustment basis for payment for extra work to perform similar but not identical repairs. The Task Force is considering whether a PDA item for totally unforeseen steel repairs should be included in rehab jobs. The Task Force plans additional meetings to finalize a specification for “each” payment for repairs, and to consider methods of payment for replacing rivets and bolts with consideration given to the often wide variation in cost to access different locations individual projects. APC is awaiting a Department response to significant Industry comments submitted in response to the following Clearance Transmittals: CT S-14-009 Bridge Warranty CT S-14-012 Pilot Project for Bridge Decks CT B-14-002 Aesthetic Treatment for Concrete Surfaces

APC BOARD PACKET -


APC Investment Committee By

Basil A. Shorb, Chairman

The APC Investment Committee oversees the activity of the APC Investment Portfolio managed by ECA Investment Group in accordance with the Investment Policy approved as amended May 6, 2014 by the APC Board of Directors.

Committee members include Geoff Clarke, Rich Wagman, and Craig Hoogstraten.

The portfolio includes the investment funds for the Associated Pennsylvania Constructors and APC Educational Trust Fund. At December 31, 2013 portfolio market value was $820,158. On June 30, 2014 the portfolio market value was $858,769.

On June 30, 2014 the portfolio asset value was $858,769.

DOMESTIC EQUITIES $404,974 47.0% INTERNATIONAL EQUITIES $163,489 19.0% FIXED INCOME $276,089 32.0% CASH EQUIVALENTS $ 5,197 1% REAL ESTATE $ 9,020 1% _______________________________________________________________ TOTAL $858,769 100.0%

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