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Transcript of United Contractors Magazine March 2016
M A R C H 2 0 1 6 | I S S U E 3 / V O L U M E 2 2 2W W W . U N I T E D C O N T R A C T O R S . O R G
TOTAL DUE: $6,000,000,000.00
PAST DUE
final notice
Why Our Chronically Underfunded Infrastructure
Can’t Wait Any Longer
End of the Road
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United Contractors Magazine (ISSN: 2166-3777) is published monthly, except December, by United Contractors, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Correspondence should be directed to the United Contractors office at the above address, by phone at (925) 855-7900, by e-mail at [email protected] or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offices. Postmaster: Send address changes to: United Contractors Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2016 Published in the U.S.A.
2016 UNITED CONTRACTORS BOARD OFFICERS
President ...........................................Donna Rehrmann
Vice President/President-Elect .................. Brett Kincaid
Secretary/Treasurer .................................. Brett Kincaid
Secretary/Treasurer-Elect.......................... Kim Scruggs
contentsUNITED CONTRACTORS BOARD OF DIRECTORSKevin Albanese, Joseph J. Albanese, Inc.; Bruce Daseking, McGuire and Hester; Paul Cianciarulo, Graniterock; Steve Clark, Granite Construction Company; Randy Jenco, Viking Construction Company; Brett Kincaid, O’Grady Paving, Inc.; Michael Landucci, Wells Fargo Insurance Services USA, Inc.; Mike McGrath, Graniterock; Christi Plum, P C & N Construction, Inc.; Donna Rehrmann, Stomper Company, Inc.; Mary Rotelli, Teichert Inc.; Kim Scruggs, Columbia Electric, Inc.; Guy Smith, St. Francis Electric LLC; Dominic Sposeto, Vanguard Construction; Hal Stober, Gordon N. Ball, Inc.
UNITED CONTRACTORS COMMITTEE CHAIRSAssociates: Mike McGrath (Associate Director), Graniterock; Michael Landucci (Associate Director-Elect), Wells Fargo Insurance Services USA, Inc. | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Legislative: Rob Layne, O.C. Jones & Sons, Inc. | Political Action (PAC): Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Paul Evans, Ghilotti Construction Co. | Attorney Roundtable (ART): Facilitated by Mark Breslin | SF City Contractor Liaison: Mike Ghilotti (Chairman), Ghilotti Bros., Inc., Miguel Galarza (Chairman), Yerba Buena Engineering & Construction, Inc. | Scholarship: Lynn Sauer (Chairperson), Allied World Assurance Company
UNITED CONTRACTORS STAFFMark Breslin, Chief Executive Officer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant to CEO; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor Contracts Manager; Lucia Maramonte, Labor & Member Services Representative; Steve Geney, Labor Negotiations Consultant; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Online Services Manager; Joan O’Brien, Education Manager; Marlo Fregulia, Event Manager; Angelica Hobbs, Event Assistant; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Man-Li Kelly, Legislative & Policy Affairs Manager; Julia Phillips, Assistant to Director of Government Relations; Eddie Bernacchi, Legislative Advocate; Christopher Lee, Safety Consultant; Tony Dorsa, CARB Consultant
M A R C H 2 0 1 6 5
M A R C H 2 0 1 6 | I S S U E 3 / V O L U M E 2 2 2W W W . U N I T E D C O N T R A C T O R S . O R G
TOTAL DUE: $6,000,000,000.00
PAST DUE
final notice
Why Our Chronically Underfunded Infrastructure
Can’t Wait Any Longer
End of the Road
6 UP Front A UCON Call to Action:Let’s Go Get SomeBy Mark Breslin, UCON CEO
LABORSpecial Labor Relations MeetingBy UCON Labor Relations & Member Services
INSIDE The CapitolUCON Mounts Campaign Against Anti-Infrastructure Ballot MeasureEmily Cohen, Director of Government Relations
MARCH 2016I S S U E 3 , V O L U M E 2 2 2
8
More Inside:
www.unitedcontractors.org
26 WE ARE UCON30 NEXT UP34 LAST CALL
C O N N E C T W I T HU N I T E D C O N T R A C T O R S :
22
10
• Taking Action for CA Road: AB 1591• 2016’s Local Ballot Measures• Exploring a Road Charge for California• The FAST Act Was Just the Beginning
12
FACESUCON’s MembershipL.I.V.E. Event
spec
ial fe
atureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
The public works market has not been too exciting the last several years. The numbers don’t lie. But in 2016 there is an opportunity for us to balance out the market funding from private to more public again. There are some very big campaigns and dollars at stake. Billions of dollars in long term funding is up at the ballot box and it is time to GoGet Some.
First though, let’s look at just 10 common sense arguments for taking care of some of our infrastructure needs.
fron
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6 W W W. U N I T E D C O N T R A C T O R S . O R G
A UCON Call to Action:Let’s Go Get Some
favor of strong infrastructure investment. But in our state, we are competing. For. Every. Dollar. Every organization that advocates for any public funds has our same argument. Everyone wants and needs more - seniors, the poor, health-care, public sector, education, environmentalists and more. To be effective advocates among all this noise, it requires a focus on politics and legislative action that far exceeds the interesting (amusing or horrifying depending on how you look at it) spectacle of presidential politics. This is California roads, bridges, water, sewer and power. This is your checkbook. This is your bread and butter. This is your business.
Here are UCON’s priorities on funding for our industry and your business in 2016-2017:
• State Transportation funding bill between $3.5 and $7 billion.
• Local and State water infrastructure, transfer and storage.
• Nine Local County Measures raising in excess of $10 billion.
• Defeating the Cortopassi Initiative requiring statewide public votes on all revenue bond measures over $2 billion including local/regional ones.
By Mark Breslin,United Contractors CEO
$59 billion in current California state road maintenance and repair backlogs. Water and sewer systems are just as bad if not worse.$78 billion in street maintenance that cities and counties can’t afford to pay.Last year, gas tax revenues fell by nearly $1 billion.The base gas tax hasn’t increased since 1994.In 10 years, officials project that one-quarter of all local streets and roads will be in failed condition.4 of the 5 large urban areas with the worst roads in the U.S. are in CA.U.S. GAO reports that out of 4,000 bridges in the Bay Area, 21% are functionally obsolete; 10% structurally deficient.Californians wasted 395.2 million gallons of fuel because of congestion, which generated 3,160,944 metric tons of carbon dioxide.More than 7 million Californians’ jobs depend completely on the state’s transportation infrastructure network (ARTBA Report).The design, construction and maintenance of infrastructure in California supports the equivalent of 419,790 full-time jobs across all sectors of the state economy.
One would think that the Governor, Legislature and public would see these as undeniable arguments in
1.
2.3.4.5.6.7.
8.
9.
10.
M A R C H 2 0 1 6 7
As well no other construction organization in the entire state of California is doing more work on connecting with legislators who support our industry directly. In 2015 UCON had more fundraising events, meet and greets and legislators attending our events (federal, state and local legislators) than anyone probably ever has. The reason; more and more of you are willing to engage. Time. Money. Letters. Fundraisers. Flying to D.C. Building relationships. You get the idea.
This is a call to action for 2016. If you have been to our PAC fundraisers, thank you. If you have donated to our PAC directly, thank you. If you have done a meet and greet or fundraiser with a state or federal legislator, thank you. If you have written letters in support of funding (or our other legislative efforts on fair payment or marking of utilities), we appreciate it greatly. We have tracked over 200 of our members now active in our legislative efforts. That still leaves another 300+ more to go.
2016 is a year of making our own opportunities. It is time to take some action to Go Get Some. This is a real opportunity with real consequences. Thank you in advance for your every effort. u
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8 W W W. U N I T E D C O N T R A C T O R S . O R G
UCON’S SPECIAL LABOR RELATIONS MEETINGOver 50 of UCON’s contractor members gathered in Pleasanton on January 14, 2016 to get up to speed on what UCON is currently doing in the labor relations arena. Three of UCON’s master labor agreements are expiring in 2016, so UCON has embarked on informal discussions with those unions (Operating Engineers Local No. 3, Northern CA Cement Masons, Northern CA Teamsters).
Highlights of the meeting: • Market Share Study: Union vs. Non-Union
Jack Estill, Professor of Economics at San Jose State University, gave a very insightful presentation on the status of the industry in the small (under $1 million) public works market. His research has shown that, in the areas outside of the Bay area, the percentage of work being awarded to non-union contractors is equal to, and in some instances higher, than that being awarded to union employers. This data will help in coordinating a strategic plan for labor and management to work together to build market share expansion for union construction.
LABOR
• 2016 Informal DiscussionsCraft committee Co-Chairs and UCON staff provided updates on meetings to date with Operating Engineers, Cement Masons and Teamsters. Additionally, attendees all participated in small group discussions to develop key issues for the OE3 discussions.
• Workforce DevelopmentThe meeting closed with UCON CEO Mark Breslin’s comments on workforce development. Finding, retaining and developing qualified union talent was one of the key issues brought up in the small group discussions. UCON will be continuing to address this challenge with our union partners.
M A R C H 2 0 1 6 9
UCON Labor Events Calendar 2016
March 30-31 UCON–Laborers Strategic Planning Meeting and Retreat
Date TBD UCON–Operating Engineers Industry Partners Meeting
Date TBD UCON–Cement Masons Industry Partners Meeting
The
Capi
tol
UCON Mounts Campaign AgainstAnti-Infrastructure Ballot Measure“Cortopassi Initiative” Poses Threat to Industry, Economy and Safety
In December, UCON Board of Directors voted to officially oppose a California Public Vote on Bonds Initiative that has qualified for the November 2016 ballot. On February 3, UCON met with Governor Brown, The Building Trades, Cal Chamber and a wide variety of other stakeholders to begin the formation of an opposition campaign.
The proposed ballot initiative, which is being championed by wealthy Stockton-area farmer and food processor Dean Cortopassi, seeks to amend the state
10 W W W. U N I T E D C O N T R A C T O R S . O R G
INSIDE By Emily Cohen,Director of Government Relations
Constitution in order to require voter approval for revenue bonds issued by the state and used to finance future California infrastructure projects exceeding $2 billion.
Cortopassi spearheaded the ballot measure, in part, to try to stop Gov. Jerry Brown’s controversial proposal to spend $15 billion to build two tunnels to divert water through the Sacramento-San Joaquin Delta to the south.
The measure is intended to block the Twin Tunnel project; however, it would have a far wider impact on CA infrastructure projects, causing costly delays in repairing our roads, colleges and water systems, and make it harder to respond to natural disasters.
Quite simply, the “Cortopassi Initiative” is a narrow minded effort that would jeopardize the ability of our state to responsibly build and maintain California’s most critical infrastructure systems.
Among key problems with the initiative identified by the coalition1:• Deceptive. Dean Cortopassi has supplied the
entirety of $4 million to put this measure on the ballot. He opposes the plan to repair California’s statewide water distribution infrastructure through the Delta. Irrespective of one’s position on that single project, this measure locks into our constitution this requirement that would block much needed repairs of our roads, bridges, water supply and delivery systems, and universities all over the state.
• Unnecessary. Private investors bear the financial risk for revenue bonds, not the state or its general fund.
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M A R C H 2 0 1 6 11
And revenue bonds are repaid by users of a project who directly benefit, not taxpayers. For instance, repairs to a bridge would be paid by tolls on the bridge, or customers in a specific water district would pay to build a water recycling plant, not taxpayers. It makes no sense to have a statewide election on projects not financed by taxpayers for which the state and local governments bear none of the financial risk.
• Erodes local control. This measure takes away local control by requiring statewide voter approval even for local projects. Under this measure, cities and towns that want to come together with the state and form a JPA to issue revenue bonds to upgrade local water systems, roads, bridges and universities would have to put their project on a statewide ballot. That means voters in faraway regions would have the authority to deny funding for local projects outside of their community.
• Disrupts vital infrastructure development. California and its local communities already suffer from a massive backlog of essential infrastructure needs including outdated water systems that cannot withstand earthquakes, crumbling roads and bridges, and over-crowded hospitals and universities. This measure would make our infrastructure problems worse by denying the use of privately-funded revenue bonds to finance these much needed projects.
• Jeopardizes our ability to fix infrastructure after a natural disaster. The ballot measure’s provisions would be locked into our state constitution, and contain no exemptions for emergencies, or a major natural disaster like an earthquake. That means state and local governments must wait as long as two years in order to get voter approval to begin rebuilding damaged or destroyed roads, freeways, bridges, hospitals and water delivery systems after an emergency.
• Added costs, bureaucracy and delays. This measure will drive up the costs of building vital projects by forcing state and local governments to use more expensive forms of financing. It would also create more red-tape and bureaucracy that make projects like water systems, roads, bridges and universities more expensive and difficult to complete.
UCON’s opposition is joined by a growing coalition of business, labor, water agencies, environmentalists, family farmers and others. u_____________________________________1 Source: CA Chamber of Commerce
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12 W W W. U N I T E D C O N T R A C T O R S . O R G
California’s transportation infrastructure is in dire need of repair, maintenance, expansion and a long term sustainable funding plan to ensure economic vitality that keeps both commerce and commuters out of gridlock and potholes.
This past year, the legislature worked to find an infrastructure funding plan that would best fit California’s needs. While several proposals were discussed, there was no consensus on the best approach for sustainable funding. If I’ve learned anything in the last year, it’s that there is no easy path to reaching an agreement on a comprehensive transportation funding strategy.
With all the challenges facing this issue, it’s difficult to believe that California’s transportation funding mechanism used to be fairly straightforward. The state first enacted a gas tax in 1923. The impact was evenly distributed and proportional to an individual’s use of the road. It was a simple, pay as you go type of structure. The more miles you drove, the more gas you consumed, and the more you paid into the system.
However, California is ever-changing. 1993 was the last time the transportation funding mechanism was updated. California is a different place than it was 23 years ago. The current system is outdated and no longer sufficient to fulfill our transportation needs. This is why it’s crucial to update the funding structure in order to reflect current times.
For decades, we have failed to preserve the investments made in our transportation system. The California Transportation Commission has estimated that the state will need to commit more than $500 billion over
the next decade to support the existing transportation infrastructure. The current estimated revenue from all current funding sources is around $242 billion. Therefore, we do not have enough funds to cover over half of the needed programs and projects.
This consistent underfunding has led to the decay of one of California’s greatest assets: our roads. When roads are not properly maintained, they require more costly rehabilitation and reconstruction. If we continue to underfund our transportation infrastructure it will result in a rapid acceleration of costs as we move forward.
It is unacceptable to ignore this issue any longer. California’s economy is contingent on a reliable transportation system; which is necessary to move both people and goods efficiently.
Finding a solution may not be easy; but as Chair of the Transportation Committee I have offered a comprehensive, sustainable funding proposal in the form of AB 1591. This bill is a thoughtful and bold move to get the state headed in the right direction again by bringing in necessary revenue, protecting our assets, and spurring job growth.
By AssemblymemberJim Frazier, District 11
Taking Action for CA Roads – AB 1591
special featureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
M A R C H 2 0 1 6 13
This plan was crafted after traveling up and down California, listening to stakeholders and discussing what should be part of a funding plan that would work and benefit everyone. These discussions will continue as this plan evolves and your input going forward is critical.
AB 1591 takes a portfolio approach to reach a total funding amount of $8 billion per year. This plan resets the gas tax true-up to where it should have been years ago, dedicates truck weight fees for transportation purposes, and mandates that all road users—including electric vehicles—pay their fair share.
The $8 billion a year spent on maintaining and improving our transportation infrastructure will result in an estimated 104,000 additional jobs per year.
Other suggestions to improve our transportation infrastructure do not adequately fund maintenance and rehabilitation, let alone add the much-needed capacity. Without the component of added capacity, California’s economy will falter under the heavy burden of increased congestion. A long term, sustainable plan is needed to keep industries in business and our state moving.
AB 1591 also focuses on California’s freight system with an emphasis on improving trade corridors and relieving overall congestion. Seventy-two percent of freight shipments by state businesses are carried to their destination via truck. It is estimated that the amount of freight moved on California highways will more than double from 971 million tons in 2002 to 2,179 million tons in 2035. While this is great for the economy, it also demonstrates a crucial need to build more capacity on the roadways.
Eighty-five percent of California commuters get to work by driving every day. After spending 35 years working as a general contractor, I understand the reality of enduring long commutes to various job sites during high-congestion hours. This plan seeks to alleviate some of the congestion troubles commuters’ face on a day-to-day basis.
Moreover, this plan puts the money to work now with an immediate influx of over $800 million dollars over two years going directly to cities and counties. These funds will address the pent-up demand for improvements to local streets and roads.
This bill was crafted in a way that will positively
impact all stakeholders and create a greater workload other than vilifying new construction and added capacity. Moving forward, we must be in unison with our message.
As individuals and as a group, your support and advocacy for this plan is imperative. I need all of you to talk to your elected officials, colleagues, and business leaders about why AB 1591 will help California’s economy. Your voices will be a crucial component in the process. u
Jim Frazier was elected to the California State Assembly in November 2012 and represents the 11th District. He currently serves as Chair of the Assembly Transportation Committee, and works tirelessly to fix the struggles California’s residents face with transportation, water, and veterans issues. Frazier also serves as a member on the Assembly’s Veterans Affairs Committee, Accountability and Administration Review Committee, and Insurance Committee, as well as an Advisory Member of the State Public Works Board.
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14 W W W. U N I T E D C O N T R A C T O R S . O R G
By Andy FieldsCalifornia Alliance for Jobs
“Close to Home”... Gearing Up for 2016’s Local Ballot Measures
special featureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
2016 is going to be a busy election year – aside from electing a president, U.S. senator, members of congress, and state senators and members of the assembly, we’ll be voting on a dozen or more state initiatives and – more importantly – we’ll have the chance to support and pass a number of local ballot initiative that put people to work and increase our bottom line.
Here at the California Alliance for Jobs, and with the close partnership participation of UCON and other allies, we’re tracking close to a dozen potential county
transportation tax measures in Northern California – that’s a dozen counties in which, if successful, there are going to be billions of dollars worth of new projects; HOV lane expansion, road widening, overpass and bridge construction, new highway development, and good old local roadway pothole filling and surface repaving.
In total, on the surface there is $17 billion worth of combined outlay – and that number will only increase as the plans attract multiples of billions more in state- and federal-allocated funds. A score of details will be finalized in the next several weeks, and it’s likely not all of these measures will make it to the ballot or pass once they’re there, but here is a quick rundown of the potential measures being tracked:
County Measures (Total In Millions)
M A R C H 2 0 1 6 15
16 W W W. U N I T E D C O N T R A C T O R S . O R G
As you know by now, California is considering a road charge as a potential replacement for the gas tax. The revenues currently available for highway and local roads are woefully insufficient for preserving and maintaining road infrastructure, reducing congestion and improving the driving experience. As vehicle
Exploring a Road Charge for CaliforniaCalifornia Begins Road User Fee Pilot Program:Industry Encouraged to Sign Up
special featureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
fuel efficiency increases, fewer gallons of gas are being purchased, creating a loss in revenue needed to maintain our highway system if the state were to continue with the gas tax. Despite the decline in gas tax revenue, more cars are using California’s roads and the wear and tear on roadways is increasing.
An efficient transportation system is critical to California’s economy and our quality of life. We need a long-term replacement for the outdated gas tax, as it cannot meet our transportation funding needs in the future. A year after being directed per Senate Bill (SB) 1077 to study a “road charge,” we are now ready to take the next steps with a pilot program that explores how a road charge can work in California.
The California Road Charge Pilot Program is a multi-year endeavor that, at its core, strives to engage the public in order to gain input and feedback. Pilot volunteers will be able to choose one of the five mileage reporting methods California will be testing.
Below is a Q&A on the road charge pilot program provided by Caltrans and CTC. If you are interested in participating in the pilot project, sign up at www.californiaroadchargepilot.com
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M A R C H 2 0 1 6 17
Q: What is a road charge?A: A road charge is a system where all drivers pay to maintain the roads based on how much they drive, rather than how much gas they consume.
Q: What is the road charge pilot program?A: The pilot program is a field trial to explore road
charging as a potential long-term replacement for the gas tax. An anticipated 5,000 volunteer participants will test various road charging methods to compare how the performance of each concept measures against criteria. The pilot program will inform the Legislature’s decision on whether and how to move forward with a full-scale road charge program.
Q: When will the pilot start and how long will it last?A: The pilot is scheduled to launch in the summer of 2016 and will last for nine months.
Q: Why is the state studying a road charge?A: California needs a sustainable and equitable way to
pay for and keep pace with road maintenance and repair needs in the future. The state’s current fuel excise tax is sufficient to fund only $2.3 billion of work (leaving $5.7 billion in unfunded repairs each year).
Our current transportation funding system relies on revenue from the gas tax and other fuel taxes that are outdated and in decline due to the increase in hybrid and electric vehicles and the improving fuel efficiency—even as more cars use California’s roads and wear and tear increases. In fact, by 2030 as much as half of the revenue that could have been collected from the gas tax will be lost to fuel efficiency.
California drivers ultimately suffer the consequences of delayed road maintenance through poor road quality and high vehicle repair costs. A recent transportation study found that California’s spend an annual average of $762 on vehicle repair costs due to poorly maintained roads, and that 564 of the state’s bridges are deficient or obsolete.
Q: What about privacy?A: Senate Bill 1077 specifically requires that privacy
implications are taken into account, especially with regard to location data. Privacy issues were addressed through the Technical Advisory Committee process and privacy protections will be incorporated in the pilot.
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18 W W W. U N I T E D C O N T R A C T O R S . O R G
Road User Fee Pilot Program (cont.)
special featureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
Q: How did the state decide on what to test in the pilot?A: Senate Bill 1077 (2014) created the Road Charge Pilot
Program as well as a 15-member volunteer “Technical Advisory Committee” (TAC) to study, gather input and make recommendations on the parameters of the pilot. The TAC members represented the state’s transportation, social equity, privacy rights, and telecommunications interests, among others. The TAC engaged in a yearlong process to solicit feedback and input from a broad and diverse group of stakeholders. During its process, the TAC:• Held 12 public meetings throughout the state• Reached out and asked for feedback and input
from over 400 stakeholder groups and every elected official that represents California.
• Conducted public surveys and focus groups to gain a better understanding of the public’s views and opinions of the current condition of California’s roads, perceptions of how transportation is funded, and to gauge public reaction to road charging as a replacement for the gas tax
• Briefed reporters and newspaper editors in every major news media outlet to seek help in broadcasting the work of the TAC to the general public
Q: If approved, would a road charge create a new fee for California motorists in addition to the gas tax?A: A permanent road charge program can only be
enacted by the Legislature. If approved, a road charge program could replace the existing gas tax.
Q: Why is California looking into changing the current system?A: “User pays” is a time-tested and familiar principle,
as evidenced by our electricity, water and cell phone bills. California is examining how it could apply this strategy to its roads: those who use the roadway network and benefit from it are also the ones to pay for it. Another reason California is studying a road charge is to carefully consider whether and how a road charge system might be designed efficiently for the unique needs of Californians—without being overly burdensome for vehicle owners to comply with or overly costly for the state to administer.
Q: What is happening at the national level?A: In December, Congress passed and the President
signed into law the Fixing America’s Surface Transportation (FAST) Act. It is the first long-term authorization since 2005’s Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), which expired in 2009.
In the FAST Act, Congress recognized the need to demonstrate user-based alternative revenue mechanisms, utilizing a user fee model (road charge) to maintain the long-term solvency of the Federal Highway Trust Fund. The enactment of the FAST Act created a five-year, $95 million grant program which is eligible to a state or group of states to test the design, acceptance, and implementation of a future road charge alternative revenue mechanism.
For more information, including information on volunteering, privacy, equity and alternative funding options, visit californiaroadchargepilot.com/about/faqs/
“THE TRENCH & TRAFFIC SAFETY SPECIALISTS”
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M A R C H 2 0 1 6 19
“THE TRENCH & TRAFFIC SAFETY SPECIALISTS”
YOU NEED TO KNOW WHO WE ARE
RENTALS
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SALES
TRAINING
SERVICE
www.ntsafety.comFOR MORE INFORMATION CALL 888 234 9244 WITH A NATIONWIDE BRANCH NETWORK, WE’RE WHERE YOU NEED US TO BE
20 W W W. U N I T E D C O N T R A C T O R S . O R G
By Pete Ruane, President,American Road & Transportation
Builders Association (ARTBA)
The FAST Act Was Just the Beginning
special featureC O N S T R U C T I O N
POLITICS & MONEY FUNDING forFUTURE WORK
Among the early 2016 headlines reported in ARTBA’s Washington Newsline, we hope this one grabbed your attention: Highway Trust Fund Crisis Right Around Corner, New Study Shows.
The nonpartisan Congressional Budget Office (CBO) released new projections showing a widening gap between incoming Highway Trust Fund (HTF) revenues and the amount needed to preserve existing federal surface transportation investment.
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The December 2015 Fixing America’s Surface Transportation (FAST) Act relies on a one-time $70 billion transfer of General Fund revenue over the next five years to bridge the HTF revenue shortfall. Once those funds are exhausted in September 2020, the surface transportation programs face an average $18 billion annual shortfall over the following six years, according to CBO.
While some think the highway program is on auto pilot for the next few years because of the FAST Act’s passage, this is certainly not ARTBA’s view. The next fiscal crisis for the HTF is on the radar screen, and ARTBA believes now is the time to be working on a legislative solution.
ARTBA continues to advocate that a permanent HTF solution be included in any tax reform or other budget-related measures considered by Congress. We are also working to advance initiatives that provide additional transportation capital investment outside of the HTF through public-private partnerships, innovative financing mechanisms and other targets of opportunity.
A HTF fix is no doubt a heavy lift. But, it is our collective responsibility to keep the political pressure on Congress until they do the right thing. ARTBA is not a “one trick pony,” however. Among the other key industry priorities in 2016:• Ensuring full funding of the FAST Act’s capital
programs. Transportation funding has become a perennial battle in Congress. Before the ink was even dry on President Obama’s signature, members of Congress last December slashed about $125 million from the transit capital program—contrary to the provisions in the law. For fiscal year 2017, the FAST Act authorizes an extra $905 million for highways and $187 million for transit. We’ll work aggressively with the authorizers and appropriators to help ensure these increases are realized.
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• Obtaining long-term, increased federal investment for airport capital improvements in the FAA program reauthorization. ARTBA will push for a multi-year reauthorization law that grows revenue through the Airport Improvement Program and by raising the cap on the federal Passenger Facility Charge.
• Preventing unwarranted and excessive regulatory actions. The Obama Administration has made it clear that it intends to use Executive Orders and regulatory action—particularly in the environmental and health arenas—during its final year in office. ARTBA is monitoring these developments and assessing potential threats to the transportation infrastructure market. We will take immediate action if proposals harm our interests.
• Continuing to help state chapters and their allies to achieve transportation investment increases at the state and local levels through the dynamic Transportation Investment Advocacy Center™. Now in its third year, www.transportationinvestment.org has been established as a national hub for information and research reports. This repository of “lessons learned” has already helped our partners frame better strategies to meet their goals.
Finally, as I write this column, the first votes have already been cast in the Republican and Democratic presidential races. ARTBA will again elbow its way into the political fray to present the industry’s agenda by: providing policy information to the campaigns; working to ensure that sound transportation investment strategies are included in the Republican and Democratic National Party Platforms; and keeping our members informed of presidential candidate transportation-related statements and positions.
The FAST Act was just the beginning. The looming presidential and
congressional elections will not distract us from advancing a full plate of advocacy priorities. With your leadership and grassroots activism, I’m optimistic our industry can make important progress on multiple fronts during 2016! u
Pete Ruane is president and CEO of the Washington D.C. based American Road & Transportation Builders Association (ARTBA). The preceding article has been reprinted with permission. UCON is an affiliate of ARTBA. For more information visit them at www.artba.org, or contact Emily Cohen, UCON’s Director of Government Relations, [email protected].
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Contractor of the Year–The Foundation AwardKevin Albanese, Joseph J. Albanese, Inc.
This award is granted to those that serve at the highest level of our association and our industry. Kevin is the best example of our Next Gen leaders who are striving to improve not only themselves and their companies, but this industry as a whole. His leadership reaches into the areas of Labor Relations, his service on the Contractors State License Board, the Operating Engineers Trusts, UCON Board Officer and ultimately President of our association in 2014.
22 W W W. U N I T E D C O N T R A C T O R S . O R G
UCON’s Membership L.I.V.E. – Leadership, Innovation, Vision & ExcellenceDonna Rehrmann, Stomper Company, Inc. was sworn in as the 2016 President of United Contractors at our Membership L.I.V.E. event held on February 6, 2016 at Casa Real at Ruby Hill Winery. Joseph and Stephen Rehrmann of Stomper Company, Inc. had the honor of installing their mother as well as the entire 2016 Board of Directors. After her swearing in, Donna gave a heartfelt speech explaining the value of UCON and what it means to her. “No one person nor one company have the resources to do it alone. In today’s business climate, it takes an army of consultants and being bound to peers with the same issues and challenges. So I believe that the greatest value of belonging and participating in a unified organization such as UCON is that the peer to peer conversation and support can continue.”
The evening included a prestigious annual awards ceremony, networking opportunities, dueling pianos, and dancing. Congratulations to the 2016 UCON Board of Directors!
FACES
Honorary Lifetime Member Award:Gary Andrews, Associated Constructors, Inc.
A UCON honor that is awarded to very few, Gary is deserving of this legacy award as he is an inspiring example of industry leadership. His ability to see this industry as a business, and to create a strategy outlined for a successful future, led him to serve as President, and 20+ years as top Legislative Chairman. He has mentored and guided countless members and has been integral is making UCON what it is today.
Special Service Award: Robert Chrisp, Chrisp Company
Robert is recognized for his outstanding effort and commitment of time to make a difference in this association. This Special Service Award is given with focus on the areas of Labor Relations, Trustee-ship, participation and support and sponsorship of everything UCON has done (and continues to do). Robert’s efforts go above and beyond the call of duty.
Volunteer Care & Commitment Award:Bill Wallace, CMD Construction Market DataThis new award has been created to celebrate the selfless spirit that great volunteers bring to this organization. Bill is the first recipient of this new award, and no one is more deserving. It would not be an association event or program without his smiling face and courteous manner. His volunteer spirit is evident, and we thank him for all his goodwill.
Associate Leadership Award: Thomas Lum, Peterson Cat
Tom has served as a volunteer and chairman for countless events and programs as he has contributed nearly three decades of involvement and commitment to this association. Over these years he has seen all of our growth and success and he is awarded for his leadership service on our Board of Directors, and his continued professionalism, extensive assistance and innovative ideas.
CONGRATULATIONS TO UCON’S AWARD WINNERS:
M A R C H 2 0 1 6 23
UCON’s 2016 Board of Directors
FACESThank You to our Event Sponsors:
24 W W W. U N I T E D C O N T R A C T O R S . O R G
— PLATINUM SPONSORS —
— GOLD SPONSORS —Ghilotti Bros., Inc.
Ghilotti Construction Co.Graniterock
Joseph J. Albanese, Inc.National Trench Safety, LLC
Peterson CatR & B Company
Stomper Company, Inc.Sweeney, Mason, Wilson & Bosomworth
United Rentals Trench Safety
— SILVER SPONSORS —ABD Insurance & Financial ServicesAon Construction Services Group
California Bank of CommerceChrisp Company
GALLINA LLPLeonidou & Rosin Professional Corporation
Liberty Mutual SuretyMcInerney & Dillon PCMcSherry & HudsonMidstate Barrier, Inc.
Moss Adams LLPPentaRisk Insurance Services LLC
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UCON
MARCH ANNIVERSARIESUnited Contractors would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in March:
43 YEARS – 1973Associate Member:San Jose Concrete Pipe Co.Brad Nakaji
35 YEARS – 1981Associate Member:Oldcastle Precast, Inc.Danita Romero
34 YEARS – 1982Associate Member:AON Construction Services Group
22 YEARS – 1994Contractor Member:Uniacke Construction, Inc.Joseph Uniacke
Associate Member:Cresco EquipmentRentals Chris Smith
21 YEARS – 1995Associate Member:AWSISteve Ferris
18 YEARS – 1998Associate Member:D.P. Nicoli, Inc.Mike Welton
17 YEARS – 1999Contractor Member:Central Striping Service, Inc.James Lesniewski
Associate Member:Harris Blade RentalSandy Thomson
15 YEARS – 2001Contractor Member:AEC Construction, Inc.Allen Carnesecca
14 YEARS – 2002Contractor Members:CMC Traffic Control dba CMC ConstructionCrystal Miks
Sukut Construction, Inc.Michael Crawford
13 YEARS – 2003Contractor Member:D.A. Wood Construction, Inc.Dan Wood, Jr.
Associate Member:Heffernan InsuranceBrokersDavid Harris
30 YEARS – 1986Contractor Member:T.D.W. Construction, Inc.Edmundo Alire, Jr.
29 YEARS – 1987Associate Member:Marsh Risk & InsuranceServicesAustin Neff
23 YEARS – 1993Associate Member:CNA SuretyPaul Kitchell
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11 YEARS – 2005Contractor Members:Argonaut ConstructorsMichael Smith, Jr.
AshLin PacificConstruction, Inc.Rich Metcalfe
Associate Member:Atkinson, Andelson,Loya, Ruud & RomoRobert Fried
10 YEARS – 2006Contractor Members:Cal State Constructors, Inc.Don Cabianca
9 YEARS – 2007Contractor Member:Tri-Valley ExcavatingMike Garcia
8 YEARS – 2008Contractor Member:Inner City Demolition, Inc.James Campanella
7 YEARS – 2009Contractor Member:RNR Construction, Inc.Andre Catellier
6 YEARS – 2010Contractor Member:Precision Drilling, Inc.Ty Amundson
Associate Member:GE CapitalTim McNeely
5 YEARS – 2011Associate Member:Construction TestingServiceBrenda Harris
4 YEARS – 2012Contractor Member:Atkinson ConstructionJohn Harrington
3 YEARS – 2013Contractor Members:California Engineering/ Silverado, JVWahid Tadros
Roadway Construction, Inc.Reza Yazdi
Associate Members:Downey Brand LLPSean Filippini
2 YEARS – 2014Contractor Members:Goebel Construction, Inc.Greg Goebel
Ransome CompanyGeoff Raaka
Associate Members:CareerSMITHTony Bolliger
Rebel EquipmentEnterprisesRobert Lee
Varela, Lee, Metz & Guarino, LLPAndrew Van Ornum
1 YEAR – 2015Contractor Members:American Pavement Systems, Inc.Marc Bertsch
Trav-ExTravis Ulrich
Associate Members:Bolton & CompanyDave Miller
Castrol Heavy Duty LubricantsJacob Wood
SiTECH NorCalJohan Larsson
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28 W W W. U N I T E D C O N T R A C T O R S . O R G
UCON
UCON SMALL CONTRACTORS FORUM YOUR VOICE MATTERSIn 1970 our Association was founded by five owners of smaller sized contracting firms concerned about their voices being heard. Over 45 years later, we have never lost sight of the importance of every voice being heard in the association, especially from those smaller contractor firms whose owners are close to the work and always at risk. In December of 2015, UCON held a Small Contractors Forum where a representative group of owners of UCON contracting companies gathered for a strategic planning session. The format was peer to peer and focused on what UCON can do to create more value for them in our industry.
The top 3 recommendations from that group were as follows:Payment Strategies
Issue: Need more resources and content for smaller firms to address payment challenges including education and forms as cash flow impacts are common to this community.
UCON Solution: • A Prompt Payment Seminar will be held through
UCON University on March 17, 2016 – register at www.unitedcontractors.org.
• All Payment related forms have been updated and are located in the Resource Center under Payment Forms.
Member Web Access to Information & Resources
Issue: Navigation of the website needs to be revised to make the information more accessible and easy to locate.
UCON Solution: • A list of the top 5 downloads and links to those
downloads are now available on the Contractor Log In landing page to allow members a quick way to get the forms they use most often.
• A Table of Contents button is available at the top of the Contractors Resource Library page to allow members to download a list of all of our forms so they can see what section the form they are looking for can be found under.
Contract Drafting, Review and Negotiation
Trial and Arbitration
Claims, Dispute Resolution and Mediation
Bid Protests
Collection
Employment Counseling
Contact: Janette G. Leonidou A. Robert Rosin
|phone| 650.691.2888 |fax| 650.691.2889 |web| www.lrconstructionlaw.com
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N O V / D E C 2 0 1 3 35M A R C H 2 0 1 6 29
• We continue to work on our search functionality and capabilities.
• We continue to work on providing our Prompt Payment class as an On Demand seminar for those members that cannot attend the class in person.
Small Contractor Mentoring Program
Issue: The need for a “consultant” relationship with industry experts to assist smaller contractors with questions they may have about starting a new company, working with other contractors and subs, getting paid, etc.
UCON Solution: • UCON is working on getting a
list of “consultants/mentors” together that are willing to answer questions and assist our smaller contractor members. If you are interested in being one of our “consultants/mentors,” please contact Leslie Lord at [email protected].
There are several other recommendations that were provided by the Small Contractors Forum and we will continue to keep you apprised of our progress in moving forward with those recommendations. As our mission statement says…UCON exists to improve our members’ competitiveness through innovation, proactive strategies, caring relationships, and the principles of unity and integrity. We stand by our mission statement and will continue to do so in an effort to always provide our members with a return on investment.
We want to thank all our members that participated in this Forum and look forward to seeing more of you at the next one! The next Small Contractors Forum will be held in the near future. If you are interested in attending, please contact Kelly Montes at [email protected]
Thank you to our attendees:Anvil Builders – HT TranD-Line Constructors – Tony PradaEbert Corp., J.W. – Jim EbertHoseley Corporation – Rusty HoseleyP C & N Construction, Inc. – Christi PlumPixley Construction – Chuck Pixley & Katelyn GobblePlatinum Pipeline, Inc. – Lisa deFreitas SundbergRay’s Electric – Greg GruendlWater Rock Construction – Steven Michelson
San Leandro Santa Clara(510) 357-8810 (408) 970-9494
Sacramento Other Locations(916) 386-1589 (800) PENHALL
WWW.PENHALL.COM
up
30 W W W. U N I T E D C O N T R A C T O R S . O R G
By Denise Ramirez,Online Services Manager
TEN SCHOLARSHIPS TOTALING $23,000 –UCON SCHOLARSHIP AWARDS PROGRAM NOW ACCEPTING APPLICATIONS
Apply now for one of ten Scholarship Awards through UCON.You are eligible if you meet ONE of the following:
• You are an employee, spouse, or dependent (of an employee) of a UCON member company attending any 2 or 4 year accredited college or university with a cumulative 2.5 GPA (all majors may apply)
OR• You are a California college student majoring in Civil
Engineering or Construction Management with a cumulative 3.0 GPA
The deadline to apply is Friday, April 22, 2016 (winners announced in June). For more information, contact Denise Ramirez at (925) 362-7308 or via email at [email protected]. u
Since 1994, UCON has awarded over $300,000 through its Scholarship Awards Program. Apply now. Deadline is April 22, 2016,unitedcontractors.org/scholarship
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April7 Fearless Foreman Thursday, April 7, 2016 5:00pm - 8:00pm Location: Marriott Hotel, Pleasanton Cost: $99 Member / $199 Non-member
14 Texas Hold’Em Poker Tournament Thursday, April 14, 2016, 4:30pm Location: Bridges Golf Club, San Ramon Cost: $140/Ticket (See below)
UCON CALENDAR
For details, online registration,and additional events/meetings:www.unitedcontractors.orgQuestions? Call (925) 855-7900
March17 Prompt Payment Class Thursday, March 17, 2016 8:00am - 12:00pm Location: Residence Inn by Marriott, Pleasanton Cost: $80 Member / $125 Non-member
19,26 Construction Blue Print Reading Course Saturdays, March 19 & 26, 2016 8:00am - 12:00pm Location: UCON Executive Conference Rm., San Ramon Cost: $199 Member / $299 Non-member Leadership Development
Thursday, April 21 & Friday, April 22, 2016Special 2-Day ProgramLocation: Chaminade Resort & Spa, Santa CruzCost: $1,295 Member / $1,795 Non-memberAp
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32 W W W. U N I T E D C O N T R A C T O R S . O R G
UCON LEADERSHIP DEVELOPMENT PROGRAM This brand-new, elite program from UCON University offers participants the opportunity to focus on their own personal leadership journey and understand how that translates to their work environment. Join industry peers and engage in business-relevant, leadership driven, experiential learning.
This two-day conference will include training on:• Personal Assessments• Building Team Cohesiveness• Leading and Managing Others• Leading with Emotional Intelligence• Time Management• Problem Solving and Decision Making
for Leaders• Conflict Resolution
By Joan O’Brien,Education Managerup
NEW!
Whether you’re a mid-level manager or a front line leader, you will learn how to transform competition into collaboration.
Benefit from the exclusive peer to peer networking dinner reception with tequila tasting and “fireside chat” conversations with UCON CEO, Mark Breslin.
When: Thursday, April 21 & Friday, April 22, 2016Where: Chaminade Resort & Spa, Santa Cruz, CACost: $1,295 – Member &1,795 Non-Member (Cost includes all course materials, program instruction, meals and one night’s lodging)
For more information about this program and other education opportunities visit our website at unitedcontractors.org, or contact Joan O’Brien, Education Manager, [email protected] u
Find your next project, perform it safely, complete it on time and under budget with the Laborers. The Laborers-Employers Cooperation and Education Trust Southwest is a partnership between the Laborers International Union of North America (LIUNA) and their signatory contractors to secure projects and jobs, increase market share, and advance market-related interests throughout the states of Arizona, California and New Mexico. Learn more @ www.lecetsw.orgSOUTHWEST
LABO
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BUILDSThe Laborers’ Union knows that its members’ success goes hand-in-hand with the contractor and provides the resources to foster mutual success. No matter what the issue is, the Laborers are here to help.
• Project tracking and alerts• Training and apprenticeship• OSHA and regulatory assistance• Workers’ Comp / ADR programs• Flexible, highly competitive agreements
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34 W W W. U N I T E D C O N T R A C T O R S . O R G
PUT YOUR GAME FACE ON!
UCON’S BOARD — BRINGING THEIR “A-GAME” IN 2016
Strong Leadership (with a sense of humor)—2016 UCON Board of Directors:
(Back row from left) Bruce Daseking, McGuire and Hester, Past-President 2015; Paul Cianciarulo, Graniterock; Dominic Sposeto, Vanguard Construction; Randy Jenco, Viking Construction Company; Brett Kincaid, O’Grady Paving, Inc., Vice President/President-Elect & Secretary/Treasurer; (middle row) Guy Smith, St. Francis Electric LLC; Hal Stober, Gordon N. Ball, Inc.; Mary Rotelli, Teichert Inc.; Donna Rehrmann, Stomper Company, Inc., President; Steve Clark, Granite Construction Company; Kim Scruggs, Columbia Electric, Inc., Secretary/Treasurer-Elect; Kevin Albanese, Joseph J. Albanese, Inc., Director-at-Large; (front row) Michael Landucci, Wells Fargo Insurance Services USA, Inc., Associate Director-Elect; Mike McGrath, Graniterock, Associate Director; (not pictured) Christi Plum, P C & N Construction, Inc.
Nothing’s worth doing unless it’s enjoyable and fun—see other UCON Board “theme” photos at www.unitedcontractors.org
FERGUSON.COM/WATERWORKS Nobody expects more from us than we do®
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FERGUSON.COM/WATERWORKS Nobody expects more from us than we do®
©2014 Ferguson Enterprises, Inc. All rights reserved.
COUNT ON US1,350 locations. All 50 states. 19,000 associates.
61 years in business.
In the waterworks business, time means money. At Ferguson and Groeniger, we understand our customers’ needs.
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CHOOSE A CAT® MACHINE. CHOOSE YOUR DEAL.
*Offers valid from February 1, 2016 to June 30, 2016 on select new models, financed by Cat Financial, manufactured by Caterpillar Inc. BuildingConstruction Products Division. Offer available only at participating Cat dealers. Offer is available to customers in the USA and Canada onlyand cannot be combined with any other offers. Offer subject to machine availability. Machines sold in Canada by authorized dealers are pricedin Canadian dollars and the price may take into account the exchange rate of Canadian dollars to U.S. dollars. Models shown here do notnecessarily reflect the exact model and configuration to which the promotion applies. Offer trade-in rebates are based on a predeterminedamount and may vary by model. **Rebate will be in addition to the dealer appraised trade-in value. All financed machines are subject tocredit approval and rate may differ based on creditworthiness. The Cat Financial Commercial Account credit applies to all BCP models andis provided through Cat Financial for use at participating Cat dealers. Prices do not include taxes, freight, set-up, delivery, document fees,inspections, additional options, or attachments. Final machine prices are subject to change. Offer may change without prior notice andadditional terms and conditions may apply. Contact your Cat dealer for details.
© 2016 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge”trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
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