The Associated General Contractors of America, San Diego Chapter, Inc.

May 4, 2020 The VOICE of Construction

In This Issue

AGC and Other Trade Associations Provide Unified Voice

The State Feels the Pinch of the Pandemic

AGC of America Two-Part Webinar

AGC Releases COVID - 19 Safety Plan

SDSU Design Day - May 6

Supporting our Military Families

Classes

Committee Meetings

Get Social With Us:

More about AGC San Diego

www.agcsd.org

JOIN OUR EMAIL LIST

AGC and Other Trade Associations Provide Unified Voice Against Expansion of Workers' Compensation Presumption Brad Barnum, Executive Vice President

AGC San Diego and AGC California have joined 35 other major trade organizations to ask the Governor not to create a COVID-19 workers' compensation presumption for workers who contract the virus. This letter is on top of 500+ emails from AGC members sent to the Governor and State Legislators with the same message. The organizations believe it is important that the discussion be focused on extending benefits for work-related injuries and illnesses. California employers have been significantly impacted by this crisis, and simply cannot be the safety net for this pandemic by providing workers' compensation benefits for all employees, even when they are not injured at work. It's not too late to remind the Governor and your legislators to oppose efforts to create a conclusive presumption for workers compensation. Simply click here to send that message.

The State Feels the Pinch of the Pandemic Mike McManus, Director of Engineering Construction & Industry Relations With a lot of public agency and commercial construction going strong as ever, most contractors are very busy in this new normal. However, signs on the horizon point to trouble ahead at different

points in time. Commercial construction indicators are pointing towards a little slowing, which is probably mostly about investors and developers concerns about demand coming out of the upcoming reopening of the economy and its many uncertainties. However, it is predictable that local, state, and federal government revenue will see declines during the next year at least. Jobless claims for the week, ending April 25, came in at the lowest level since March 21, but bring the rolling six-week total to 30.3 million as part of the worst employment crisis in U.S. history. This crisis has us in Great Depression territory economically. Here in California, in normal years, the Governor proposes to the Legislature, a budget for the following fiscal year in January. Then, the Legislature conducts budget hearings, while at the same time, proposing several thousand new laws through the spring of the year. Then in May of each year, the Governor's Department of Finance releases the official revenue projections for the next fiscal year, based on many sources such as gas tax revenue and including income taxes which flow in on April 15. The budget proposal is then adjusted per the revenue projections and is called "The May Revise." This is not a normal year. Since income tax documents and balance payments are not due until July 15 this year, it will not be clear in May what effect the pandemic will have on the state's budget moving into 2021. But, Department of Finance officials have reported that they will be finalizing revenue projections in the next few weeks. The non-partisan Legislative Analyst's Office, which tracks income tax withholding on a weekly basis, gave this stark analysis on Friday; Bottom Line: Income tax withholding this week was nearly 30 percent below the comparable week last year, the steepest drop-off of any week since the pandemic started. Here is what state finance officials said, also, last week to a Sacramento area news channel. "We did model a recession of the moderate variety. Under moderate conditions, we projected we would lose $50 billion in revenue over the first two years of that moderate recession. It's fair to say, without getting into final numbers, that what we are looking at right now from an economic standpoint, is going to be much worse than a moderate recession. We expect it to take roughly two to three years to bring the state budget close to where it was before the pandemic hit, and before where revenues began making their dramatic plummet. We project that for the last three months for the current fiscal year, April to June, we are looking to take in about 39% of the revenue we take in a normal fiscal year. We're looking at ways to achieve efficiencies across a $222 billion state budget, close a significant budget gap and, at the same time, maintain core services that are essential for Californians." To put that information into context, even though California State Government reportedly has a $17.5 billion "rainy day fund" thanks to the famously fiscally conservative Jerry Brown, this situation will require some cuts. There is an immediate challenge for all state agencies. Reportedly, all agencies are being asked to find ways to reduce expenditures while maintaining critical services.

EDUCATION CATALOG JAN - JUNE 2020

The Industry is also focused on gas tax revenues because it directly correlates with funds for highway building and highway maintenance projects that many of our members bid on and construct. The Caltrans' Director reported at the California Transportation Commission last week, that the State does not have the official revenue numbers or projections at this time and those will be released by the Department of Finance in May. However, it has been reported from petroleum industry sources, that weeks since the state at home order was put in place, have seen a 40% plus reduction in gallons of gasoline sold. What will that mean for the construction Industry? We don't know yet. But we can assume rough seas ahead. It is time for all industries to figure out how to safely open up their businesses while protecting their workers, their customers, and the general public. Without the perception of safety, people will stay away.

AGC of America Two-Part Webinar: Paycheck Protection Program An AGC of America two-part webinar related to the COVID-19 Paycheck Protection Program (PPP) will be held this Wednesday and Thursday. It is free to AGC members. Click here for more information and to register. May 6 - Wednesday, 11:00 a.m. Pacific Time - Part 1: Paycheck Protection Program: Key Updates and Developments in the Ground Rules of the Program Amy O'Sullivan and Olivia Lynch of Crowell & Moring LLP will discuss recent key developments and updates to this program. They will cover eligibility requirements, focusing on those presenting the most challenging scenarios, and discuss the appropriate use of PPP loan funds and compliance requirements. They will reflect on lessons learned from the first PPP application cycle and how the fallout from that has impacted media coverage and has resulted in further guidance, rules, and feedback from Treasury and the SBA. They will address factors that all companies should consider in light of Treasury's new guidance on the certification made by all PPP loan recipients, that the loan request is "necessary to support the ongoing operations of the Applicant," and the impending May 7, 2020 end to the "safe harbor" period. This webinar will contain practical advice on best practices regarding assessing and documenting eligibility determinations and managing use of PPP loan funds.

ONLINE PLAN ROOM FREE

TRIAL Contact:

Lisa Lovelace Director of Plan Room

Services

VIEW ONLINE EVENTS

2020 EVENTS All events subject to change.

JUNE June 17|Baseball Bash

JULY Jul. 13-17|AGC Blood Drive Jul. 24|Day at the Races

Jul. 30|CLC Mixer/Car Show

MEMBER DISCOUNTS Are you aware of the many discounts available to AGC

Members?

May 7 - Thursday 11:00 a.m. Pacific Time - Part 2: Preparing Your Business Today for Audits, Oversight, and Agency Enforcement and Whistle Blower Actions Tomorrow Congress has appropriated $659 billion for forgivable loans to small businesses. Though these funds provide necessary assistance to small businesses throughout the nation, they also are subject to complex eligibility requirements and numerous certifications requirements. They will be the target of audits and oversight., and they come with substantial False Claims Act (FCA) enforcement risk. David Robbins and Mana Lombardo of Crowell & Moring LLP will discuss the scope and implications of this late-breaking guidance, the audit and enforcement organizations that will monitor how PPP loan funds are spent, and what companies can do now to prepare for and mitigate the downstream risks of impending audits and enforcement actions over PPP loans. Click here for more information and to register.

AGC Releases Construction Industry COVID-19 Safety Plan AGC has partnered with local construction associations and the San Diego County Building Trades Council to publish the Construction Industry COVID-19 Safety Plan. It was released last Wednesday via the Internet to 100 public agencies throughout San Diego County. Construction has continued to operate during this crisis as an essential industry and contractors have been effective in implementing safety measures to prevent the spread of COVID-19 while continuing to build critical infrastructure in San Diego. The Construction Industry COVID-19 Safety Plan is a consolidation of those Best Practices based on direction from health experts and boots-on-the-ground experiences from construction safety professionals. While each jobsite is different, and contractors will adapt to each situation, we are hopeful this plan provides some uniformity for contractors, workers and owners all working to protect construction personnel, and the general public. With greater consistency in approach, these safety measures will become more universal and effective. The rules can change daily, but some form of enhanced safety measures will be in place for the long-haul of the COVID-19 crisis. The Construction Industry COVID-19 Safety Plan will be regularly updated to comply with the latest mandates in San Diego County.

CLICK HERE

Interested in advertising in

AGC's "Good Faith Report"? Contact:

Lisa Lovelace Director of Plan Room

Services

2020 MEMBERSHIP LISTINGS Online Form

Please notify AGC if your company has relocated, or if there are updates to your company's listing (i.e. contacts, phone/fax,

SDSU Design Day - May 6 The first "Virtual" Design Day will be from 11:00 a.m. to 12:30 p.m. this Wednesday, May 6. During the live virtual event, each student team will have their own "Zoom" where you can visit and interact, ask questions, etc. As you won't be able to peruse project team presentation boards, materials, and documents in person as typically done in the past, these items have been made available for your viewing pleasure BEFORE Design Day, by visiting the Dept Website at http://ccee.sdsu.edu/designday. Here you'll find not only presentation boards and design documents such as plans and reports, but also 5-minute YouTube video presentations! While we are not able to post the student's complete Final Design submittals (as they aren't due until May 10), they will be able to share more during the event. We invite you to check out as many as you can before and during the event, and invite your colleagues, family, friends, and future engineers to join. While you can only be in one "Zoom" on a device at a time, you can use the website to click and jump on to another Zoom at any time.

• Student Project Documents and Videos at CCEE Dept Design Day Website

• Design Day Registration (not required) • Design Day Event PDF Program • 11:00am-11:15am - Intro/Welcome from Dean Olevsky,

President de la Torre, Dept Chairs - Zoom Link • 11:15am-12:30pm - Individual Project Team Interaction -

Zoom Links from CCEE Website (published day before Design Day)

FLYER

job titles, CSI codes, & certified business listings). Email Marcy Knopman

DIRECTIONS 6212 Ferris Square

San Diego, CA 92121 (858) 558-7444

Supporting our Military Families in a Time of Need - Supplies Needed by May 7 The AGC Build & Serve Charitable Alliance is sending out a call for in-kind donations to support our military families. Support the Enlisted Program (STEP) has activated an Emergency Response to provide our local military families with critical basic needs to address the impact of COVID-19 pandemic. Laura White, Director of Development & Community Engagement, emailed AGC with this message: STEP would appreciate any donations delivered or picked up BEFORE THURSDAY, MAY 7; the day they plan to distribute to the 300 families in need. Urgent Distribution Items Needed:

• Baby Wipes - totally out • Hand Soap • Toothbrush/Toothpaste • Shampoo/Conditioner • Deodorant • Lotion • Cleaning Supplies • Hand Sanitizer • Gift cards • Gas cards • New diapers and baby wipes/diaper rash cream • Order online (Amazon, Target, Walmart, etc. and have

delivered to address below.) STEP has never run out of distribution supplies before, so this has been challenging and expensive to keep up with demand. They truly need our help and are beyond grateful.. Drop-off or mail to: STEP 9951 Businesspark Ave, Suite A San Diego, CA 92131 (858) 695-6810 For large donations, no-contact pick-up may be available. Please contact Tracy Owen: tracy.owens@stepsocal.org

Thank you in advance for STEPping up to help our men and women in uniform.

Any questions, contact AGC staff Marcy Knopman at (858) 558-7444.

Virtual Classrooms

May Classes The Art of Negotiated Contracting - May 5 - NEW CLASS New Class Coming Soon: COVID-19 Safety Supervisor Certificate Training Foreman & Superintendent Bootcamp Seminar - May 7 CQM-C Online - May 6 & 7 Stormwater Breakfast Forum - May 12 @ 7:30 a.m. CQM-C Online - May 13 & 14 Project Engineer Boot Camp - May 13 Prevailing Wage Compliance - May 14 Microsoft Project Workshop - May 20 - Learn How to Effectively Plan and Control Projects

For more information on classes, contact: Becca Schaffer 858-731-8155

Jan - June 2020

Register Online

COMMITTEE MEETINGS

Due to COVID-19, committee meetings will not be held at AGC. However, virtual meetings via "Go-to-Meetings" may be scheduled as needed in the coming weeks. May 5 - 9:00 a.m. - Government Relations via Go-To-Meeting May 5 - 12:00 p.m. - Meetings & Events- via Go-To-Meeting May 6 - 7:00 a.m. - Safety Committee - via Go-To-Meeting May 27 - 7:30 a.m. - Build & Serve Committee- via Zoom

GET INVOLVED...JOIN A COMMITTEE

About Monday Morning Quarterback AGC San Diego Chapter's Monday Morning Quarterback is a "hot off the press" and to the point Monday morning briefing on the important issues facing San Diego's construction industry. It is prepared by AGC Chief Executive Officer, Eddie Sprecco, and Executive Vice President, Brad Barnum. Please contact Eddie Sprecco or Brad Barnum with your comments, or with information that should be conveyed to the industry through this service. Well over 3,000 individuals employed by AGC member firms are part of this system.

ARCHIVE

The Associated General Contractors of America San Diego Chapter, Inc.

6212 Ferris Square, San Diego, CA 92121 | Phone (858) 558-7444 | Fax (858) 558-8444 www.agcsd.org

The VOICE of Construction