united contractors magazine march 2015

MARCH 2015 | ISSUE 3/VOLUME 221W W W. U N I T E D C O N T R A C T O R S . O R G

Unlocking Opportunities to Secure California’s Infrastructure Future

The Futureof Funding

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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. © 2015 Published in the U.S.A.

2015 UNITED CONTRACTORS BOARD OFFICERS

President ..............................................Bruce Daseking

Vice President/President-Elect ...........Donna Rehrmann

Secretary/Treasurer ...........................Donna Rehrmann

Secretary/Treasurer-Elect.......................... Brett Kincaid

contentsUNITED CONTRACTORS BOARD OF DIRECTORSKevin Albanese, Joseph J. Albanese, Inc.; Sue Capriola, Silverado Contractors, Inc.; Bruce Daseking, McGuire and Hester; Paul Cianciarulo, Granite Rock Company; Rich Gates, DeSilva Gates Construction; Brett Kincaid, O’Grady Paving, Inc.; Thomas Lum, Peterson Cat; Mike McGrath, Graniterock; Christi Plum, P C & N Construction, Inc.; Donna Rehrmann, Stomper Company, Inc.; Mary Rotelli, Teichert Construction; Kim Scruggs, Columbia Electric, Inc.; Guy Smith, St. Francis Electric; Dominic Sposeto, Vanguard Construction; Hal Stober, Gordon N. Ball, Inc.

UNITED CONTRACTORS COMMITTEE CHAIRSAssociates: Thomas Lum (Associate Director), Peterson Cat; Mike McGrath (Associate Director-Elect), Graniterock | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Paul Evans, Ghilotti Construction Co. | Regulatory: Todd Gates, Proven Management, Inc. | Scholarship: Lynn Sauer (Chairperson), Allied World Assurance Company

UNITED CONTRACTORS STAFFMark Breslin, Chief Executive Officer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Drew Aversa, Business Development Manager Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor Contracts Manager; Lucia Sbarro, Labor & Member Services Representative; Steve Geney, Labor Negotiations Consultant; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Angelica Hobbs, Administrative Assistant; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Online Services Manager; Joan O’Brien, Education Manager; Marlo Fregulia, Event Manager; Jaimie Ricchiuto, Event Assistant; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Man-Li Kelly, Legislative & Policy Affairs Manager; Eddie Bernacchi, Legislative Advocate; Christopher Lee, Safety Consultant; Tony Dorsa, CARB Consultant

M A R C H 2 0 1 5 5

6 UP Front It’s Like Water, Air and Food—NOT OptionalBy Mark Breslin, UCON CEO

LABORPublic Works Contractors MustRegister with DIRBy Eric Rood, Assistant State Labor Commissioner

INSIDE the CapitolLegislative UpdateBy Eddie Bernacchi, Legislative AdvocateGearing Up for 2015 LegislationBy Emily Cohen, Director of Government Relations

MARCH 2015I S S U E 3 , V O L U M E 2 2 1

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More Inside:

www.unitedcontractors.org

26 NEXT UP30 WE ARE UCON32 SAFETY CORNER34 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 :

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MARCH 2015 | ISSUE 3/VOLUME 221W W W. U N I T E D C O N T R A C T O R S . O R G

Unlocking Opportunities to Secure California’s Infrastructure Future

The Futureof Funding

FACESUCON’s Membership L.I.V.E.Leadership, Innovation, Vision & ExcellenceCelebrating UCON’s 2015 Board ofDirectors and Award Winners

special feature

C O N S T R U C T I O NPOLITICS & MONEY

FUNDING forthe FUTURE

The path to success for everyone in this industry is determined in large measure by the opportunities provided by the marketplace. All the talent, expertise, equipment and manpower have to have someplace to go every morning for us all to prosper. And that market opportunity has been very challenging for many of us over the last several years.

A lot of our industry responded in a pretty basic way. Most took a look at the market challenges and simply hunkered down. They hoped and prayed for a come-back until a return of opportunity solved the problem. But sometimes the market needs help. Sometimes we have to engage in a full court press to get what we need. That is where UCON has been for the last few years. And in our case, right now, this means political action and activism. The private market is getting healthier, but it cannot carry everyone along in its path. Public

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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

It’s Like Water, Air and Food—NOT Optional

By Mark Breslin,United Contractors CEO

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It’s Like Water, Air and Food—NOT Optional

works drives the market. So it really does not matter if you like politics or not. It’s like water, air and food for survival—it’s not optional.

There is some very good news though. You cannot open the papers, read editorials or watch TV without hearing about roads, water, and bridges. The President is talking about it. Congress is talking about it. Our state leaders are talking about it. Rebuilding America. Rebuilding California. The time is finally ripe for action, funding and market making. And it’s about time.

UCON is also building on our momentum. In 2014 we helped pass the water bond. Also in 2014 we led a hugely successful effort to pass Measure BB. In a challenging economic and political climate, we got a 2/3 measure passed in the Bay Area’s largest county. This resulted in billions of dollars of construction work coming our way. In 2015 and 2016 we may see 10-15 more of these local governments trying to pass local infrastructure measures. This represents years and years of market opportunity and growth for our region. To get it done is going to be the job of UCON and our labor union partners as the only real players able to make a difference with political action and activism.

What are we asking UCON members for? For you to make a difference in any way possible through actions large and small.

• You make a difference when you write to your legislator. • You make a difference when you contribute to our PAC. • You make a difference when you attend UCON’s

political fundraisers for pro-infrastructure legislators.• You make a difference when you show up for UCON in

Sacramento.• You make a difference when you travel to Washington

D.C. for the UCON Fly-in. • You make a difference when you contribute to our ballot

measures and campaigns.

Now is the time to work together, to push forward and to continue electing and re-electing pro-infrastructure legislators and promoting local efforts to self-fund our work.

Please consider doing your part, at a level of commitment that reflects your own opportunity. Success for UCON as an organization is success for all of us, and more specifically for every Contractor and Associate Member contributing time, money or talent. Let’s make 2015 a year where rebuilding starts with you. u

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Are You In Compliance?New Law Requires All Public Works Contractors to Register with DIR

LABORContractors and awarding bodies on public works projects are reminded to have contractors register ASAP to avoid potential pitfalls and penalties!

California contractors who work on public works projects are facing crucial deadlines. Waiting too long may put the project and those contractors in a difficult position. The deadlines are that contractors must be registered to bid on a public works project on or after March 1, 2015, and can’t work on a new project awarded on or after April 1, 2015.

Registering is a simple online process, but the contractor may need time to review any unpaid liabilities to the state of California, confirm Worker’s Compensation insurance, etc. Additionally, if the registrant wishes to pay by check or another method other than credit card, processing the registration could take several weeks. The Division of

By Eric Rood,Assistant State Labor Commissioner

A few important facts about contractor registration:• Companies that do not have contractors’ licenses may also

need to register. Any company that performs work that is covered by prevailing wages and will be performing that work (over $1000 in a 12-month period) on a public works project must be registered. This includes truck brokers, owner-operators, and surveyors; sole proprietors are not exempt. If in doubt, get registered.

• The $300 registration fee is for the current fiscal year, which runs from July 1, 2014 through June 30, 2015. There is no pro-rated amount for registrations completed between now and the end of the fiscal year, and renewals will be required by June 30, 2015 for the next fiscal year. The renewal process will be rolled out around June 1st.

• Certified payroll reports must be submitted to the DIR online for all projects awarded on or after April 1, 2015, and for all new or ongoing public works projects on and after January 1, 2016. Final testing is being done on the new system, which will include the ability to easily upload CPRs that are submitted to awarding agencies through other online systems (Elations, LCPTracker, etc.) or using other commonly used payroll accounting software.

Photo courtesy Flatiron West

UCON Labor EventsMarch 2015:Mar 24 Cement Masons Industry Partners Meeting

Labor RelationshipsUnited Contractors and Operating Engineers Local No. 3 met in February for informal relationship-building and strategic planning. The event was attended by 18 UCON contractor members and labor staff, and 21 representatives from Operating Engineers leadership. Discussions centered on non-union competition, organizing, workforce development (retirees, training, apprenticeship), private work, and labor-management organizations. The plan is for this to be an annual event, with 2-3 other partnering meetings throughout the year. Contractor members can contact Randy Ruby, Director of Labor Relations, if you would like to be involved. u

M A R C H 2 0 1 5 9

Labor Standards Enforcement encourages contractors to register using a credit card, as it will speed up the issuance of the license (less than 24 hours).

If a contractor violates the deadlines, they may have to pay significant penalties ($2,000), and risk having their work stopped until their registration is rectified. Awarding bodies will be monitoring those who bid and work on upcoming projects. If a contractor falsifies information on the registration application form, which is made under penalty of perjury, the contractor can be debarred from public works projects for up to three years, and face further potential disciplinary action from the Contractors’ State License Board.

Contractors and awarding bodies can see the requirements of registration, as well as begin registering, by clicking on this link: http://www.dir.ca.gov/Public-Works/PublicWorks.html

Have additional questions? E-mail [email protected] u

More Paid Sick Leave Laws–Oakland Jumps on the BandwagonOakland’s recently passed Measure FF has not been getting as much publicity as the new California Paid Sick Leave law, but it contained provisions requiring compliance with the city’s own paid sick leave law starting March 2, 2015. The measure also included compliance with a city minimum wage and service charge pay to employees in the hospitality industry, as well as employer posting and record retention requirements. It applies to all companies who have employees working in Oakland, although the service charge provisions are only applicable to companies in the hospitality industry. UCON is working with our union partners for exemptions to employees covered by collective bargaining agreements, consistent with other paid sick leave laws and ordinances. u

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The bill introduction period for the 2015 session of the California State Legislature concluded on February 27th. At the time this article was written, the halls of the State Capitol were still bustling with lobbyists shopping bills to legislators, hoping one would agree to author their client’s issue. We will know the totality of what our industry will be facing from a legislative perspective once the deadline has passed.

What we do know right now is that United Contractors will again be championing reform legislation regarding change orders. Tackling the inequity in the public works change order process is paramount to the growth and prosperity of our industry. Keep an eye-out during the year for our requests for your participation in this critical

Legislative Update Moving Forward in 2015

By Eddie Bernacchi,Politico Group,UCON Lobbyist

effort (see page 12 for more details). Legislators must hear directly from their constituents on these matters. Your participation does make a difference.

Additionally, infrastructure funding will finally be a focus. As you may know, the Speaker of the Assembly has rolled out a plan to provide 2 billion dollars annually for the next five years for highway and road repair. While this is only a first step in filling the tremendous infrastructure needs of the state, the proposal would still require a two-thirds vote for legislative approval because it creates a new fee. That means the proposal would need support from both Democrats, and from Republicans who are often skeptical about raising additional revenue but have expressed interest in funding infrastructure projects. UCON will continue to be the leading voice for our members and the industry as discussions and debates move forward on how to responsibly invest in California’s vastly under-funded roads and highways.

Other areas of industry interest that the State Legislature will be reviewing include excavation safety and owner-operator accountability, agency accountability for storm water pollution preservation plans and pre-qualification standards. Details on these measures and the countless others that will inevitably be introduced will be provided as the California State Legislative Session gets into full swing later this month.

As we move forward in the 2015 year, representing and advocating for the unique interests of California’s union-affiliated contractors, please do not hesitate to contact us when you are in need of assistance, or with any questions or concerns. UCON is here to help your business. Please contact Emily Cohen, UCON Director of Government Relations directly at (925) 362-7304. u

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One of the most critical ways United Contractors makes a difference for our entire industry is through activity in state legislation. “Taking Action, Getting Results” isn’t just a tagline for our Association, it’s a reminder of why we exist and what we exist to do for each of our members. 2015 is shaping up to be a historic year of “taking action and getting results” for UCON. Below are two key pieces of legislation we will be supporting in 2015.

Protection of Subsurface Installations — Accountability for Safe, Accurate Marking and Digging Practices

Taking Action and Getting Results Gearing up for 2015 Legislation

INSIDE The

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By Emily Cohen,Director of Government Relations

For UCON Members, safety comes first. And with safety comes necessary accountability. With that understanding, UCON is working with Senator Jerry Hill (D-San Mateo) in introducing comprehensive legislation which, among other things, requires an owner operator to respond to 811 calls within a designated period of time. As currently drafted, AB119 requires an owner operator of a subsurface installation, who fails to mark the appropriate location of subsurface installations within two working days of notification, to be liable to an excavator who has provided proper notification prior to excavating, for damages including liquidated damages, liability, losses, costs and expenses resulting from the operator’s failure to comply with this requirement. This legislation would also require that an excavator notify the appropriate regional call center of their intent to excavate at least two working days before they begin to dig.

UCON is working with a number of stakeholders, including our Safety Committee, Legislative Committee, other contractor associations, CARCGA, and utility companies to develop a fair and responsible piece of legislation that ensures safe digging practices are followed and enforced, and that owner operators are properly accountable for promptly and accurately marking utility lines prior to excavation.


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Fair Payment for Extra Work — Closing the Unfair Business Loop Hole in CA Prompt Payment Law.

Legislators should recognize that it is in the best interests of the State to ensure that contractors performing public works projects are paid in full and in a timely manner for all work completed that is not in dispute. With that in mind, UCON will be reintroducing legislation, authored by Assemblyman David Chiu (D-San Francisco), to protect contractors from being victimized by the unfair loophole in current law which allows Agencies to indefinitely delay payment to contractors for extra work performed, even when the amount is undisputed.

UCON-sponsored legislation will require the public entity to review a claim within a certain period of time and then state, in writing, what portion of the claim is disputed and what portion is undisputed. Payment for the undisputed portion of the claim would then be processed and made promptly after the public entity or contractor issues its written statement regarding disputed and undisputed items.

The disputed portion of the claim would then be submitted to mediation for resolution. Under this legislation, failure by the public entity to respond to a claim from a contractor within the time frame provided would result in the claim being deemed approved in its entirety.

These pieces of legislation are no small feat for the industry. They’ll require your support and the support of our entire industry. As the year moves forward please “help us help you” by talking with your Assemblymember and Senator about UCON legislation. Encourage their support of UCON sponsored bills and of the many other pieces of legislation we will take action on this year. Together, we can make an incredible difference in improving the business environment for California’s union-affiliated contractors.

For more information on UCON’s Legislative activities, contact Emily Cohen, Director of Government Relations at [email protected], (925) 362-7304. u

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UCON’s Membership L.I.V.E. – Leadership, Innovation, Vision & ExcellenceBruce Dasking of McGuire and Hester was sworn in as the 2015 President of United Contractors at our Membership L.I.V.E. event on February, 7, 2015. Mike Hester of McGuire and Hester had the honor of installing his good friend as well as the entire 2015 Board of Directors. After his swearing in, Bruce gave a

2015 BOARD OF DIRECTORS

FACES

heartfelt speech expressing his compassion for the Association. “My journey has and continues to be a dream for me… It has taught me how fortunate and blessed I am to be surrounded by truly great people.” The evening included a prestigious annual awards ceremony, networking opportunities, hosted mixology bar, flip photo booth, music and dancing. Congratulations to the 2015 UCON Board of Directors.

CONGRATULATIONS TO UCON’S AWARD WINNERS:

Contractor of the Year (Digger Award): Michael Ghilotti, Ghilotti Bros., Inc.

This award is granted to those that serve at the highest level of our association and our industry. Mike’s service to UCON is a recognition of servant leadership and collaborative excellence. What he brought was a complete and “all-in” commitment level combined with an unmatched charisma and positive energy that swept up everyone in his path. He also brought a very personal touch to the relationships with his leader peers.

M A R C H 2 0 1 5 15

2015 BOARD OF DIRECTORS

Legislator of the Year Award: Assemblymember Jim Frazier

This UCON award is given to a public official who demonstrates leadership and courage in advancing the interest of our industry. Assemblymember Frazier is a contractor—a legislative leader who actually “gets it” and understands the challenges of competition, accountability and performance. He is an advocate for our industry and understands the everyday challenges you are experiencing. He is awarded for his bi-partisan efforts to expand the work opportunities in our industry.

Industry Service Award: Steve Sands, Contractors State License Board

Steve has been an outstanding example of what an agency leader ought to look like. He’s defended the integrity of the construction industry, fought to protect consumers and taxpayers, and worked tirelessly to streamline inefficiencies and respond to contractor’s requests for agency assistance.

Distinguished Associate Member Award: Jeff Prevost, Lockton Companies, LLC

Jeff brings a direct, assertive, and confident approach to doing business. He is honored for his professionalism, leadership and innovative ideas, and for his positive contribution to UCON’s Board service.

Special Legislative Service Award: Rich Gates, DeSilva Gates Construction

A political crusader who understands that our market opportunities are directly related to political and legislative advancement, Rich has led this role for more than a decade. UCON has raised millions of dollars for the many campaigns over this time and has been mostly successful in our attempts to create your next opportunity. Rich deserves a lot of the credit for being the architect and often the engine that makes it happen.

FACESThank You to our Event Sponsors:


— PLATINUM SPONSORS —DeSilva Gates Construction

Northern California Carpenters Regional CouncilSilverado Contractors, Inc.

— GOLD SPONSORS —Ghilotti Bros., Inc.

Ghilotti Construction Co.Granite Rock CompanyJoseph J. Albanese, Inc.

McGuire and HesterNational Trench Safety, LLC

Peterson CatR & B Company

St. Francis Electric LLCStomper Company, Inc.

Sweeney, Mason, Wilson & BosomworthUnited Rentals Trench Safety

— SILVER SPONSORS —ABD Insurance and Financial Services

Aon Construction Services GroupCalifornia Bank of Commerce

Chrisp CompanyGALLINA LLP

Midstate Barrier, Inc.Moss Adams LLP

PentaRisk Insurance Services LLC

— BRONZE SPONSORS —Leonidou & Rosin Professional Corporation

Woodruff-Sawyer & Co.

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The Road To Ruin Transportation Policy in CA: Who, What, Where, When and WHY.Roads are the bedrock of California’s jobs and economy. Everyone—transit riders, bicyclists, pedestrians and drivers—accesses our roads and is affected when they are unsafe or congested. Our road condition is a fundamental indicator of how well California is serving Californians. If we do not address this issue, we are paving our road to ruin.

WHY OUR STATE AND LOCAL ROADS ARE CRUMBLINGCalifornia has more than 50,000 miles of state highways and roads and 143,000 miles of local streets and roads. The primary sources of revenue to maintain, repair and rehabilitate these roads are state and federal gasoline excise taxes.• Neither the state nor federal gas tax has been

increased in more than 20 years.• Gasoline taxes are not indexed for inflation or

increased in the cost of construction.• Increasing fuel efficiency has resulted in vehicles

that are traveling more miles on less gas, generating fewer gas tax dollars to fix the roads.

• A growing number of electric cars use the system but pay no tax.

• Due to the recent decline in gasoline prices, the State Board of Equalization will initiate a 5.5-cent per gallon reduction in the state gas tax on July 1, 2015, slashing transportation funding by another $700 million annually.

• Previous Governors and Legislatures have borrowed more than $2 billion and permanently taken another $628 million from state and local transportation accounts to cover state budget deficits.

• A voter-approved $20 billion state transportation bond in 2006 enabled the state to make one-time investments in critical projects to reduce congestion, improve goods movement and mass transit, fix unsafe roads and repave major arteries. That program has been successfully delivered. It did not address ongoing deferred maintenance and rehabilitation of thousands of miles of highways, streets and roads.

• To help pay for general fund bond debt service, the Legislature in 2011 approved a complicated “gas tax swap” that took $1 billion a year in truck weight fees out of the State Highway Fund and directed the money into the State General Fund.

THE PRICE OF NEGLECT• California has the second-highest share of roads in

“poor condition” in the nation.• Some 58% of state roads need rehabilitation or

pavement maintenance.• Our state has 6 of the 10 cities with the worst road

conditions in the nation.• 55% of local bridges require rehabilitation or

replacement.• Nearly 70% of California’s urban roads and

highways are congested.• Without additional funding, a fourth of local streets

and roads will be in failed condition by 2024.

special featureC O N S T R U C T I O N

POLITICS & MONEY


Continued on page 20

By James Earp,California Alliance for Jobs

M A R C H 2 0 1 5 19

IMPACT OF THE ‘GAS TAX SWAP’

To help backfill state budget deficits, the Legislature in 2011 passed legislation known as the “Gas Tax Swap,” which eliminated the sales tax on gasoline and replaced it with an equivalent cents-per-gallon gas excise tax of 18 cents. The legislation directed the State Board of Equalization to make an annual adjustment in the new “price based” excise tax to capture the increase or loss in revenue that would have occurred if the state sales tax on gas was still in place. Because of the recent decline in gasoline prices, this will result in a 5.5-cent cut in the gas tax in July, resulting in an additional $700 million annual loss in transportation revenue.

This complicated legislation also increased a portion of the diesel sales tax (while reducing the excise tax on diesel) and dedicated the additional sales tax revenue to the State Transit Assistance program, and it siphoned off $1 billion annually in truck weight fees to be used for general fund bond debt service.


Representing the Bay Area in Construction Contract Disputes and Collection Matters, Employment Law and Labor Relations, Business Law, Estate Planning, and Tax Disputes.

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Joseph Sweeney [email protected] Mason [email protected] Bosomworth [email protected] Schmidt [email protected] Olson [email protected] Thomson [email protected]

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POLITICS & MONEY

FUNDING forthe FUTUREADDING UP THE COST• $194 billion shortfall over the next 10

years for preservation and rehabilitation of the current transportation system (2011 Statewide Transportation Needs Assessment).

• $6 billion annual shortfall estimated by Caltrans in its State Highway Operation & Protection Program (SHOPP).

• $7.8 billion annual shortfall estimated by CSAC & League of California Cities for local street, road and bridge maintenance, repair and rehabilitation.

• Governor Brown has called on the Legislature to help him come up with a funding plan to address the most critical unmet needs.

WHAT MUST BE DONE THIS YEAR1. Stem the blood flow. Urgency legislation

is needed to stabilize extreme fluctuations in the annual BOE adjustment of the price-based state gas excise tax. Wild swings in the annual adjustment make it impossible for state and local governments to budget for a reliable revenue stream to help cover annual maintenance and preservation of the transportation system. A new method of calculation is needed to stabilize the annual adjustment and still respond to market trends in gas prices.

2. Work with Speaker Atkins and Legislative leaders to increase trans-portation funding. The legislative plan outlined by the Speaker would generate $2 billion/year in additional ongoing funding through a road user charge. Although still a work in progress, this proposal demonstrates a solid commitment to achieve a solution.

WEIGHT FEES AND BONDS

• In addition to ongoing revenues from fuel taxes, the state has issued general obligation bonds in order to pay for transportation projects. The largest such bond measure was Proposition 1B (2006), which authorized the state to sell $20 billion in bonds to finance critical transportation projects throughout the state.

• The debt-service costs on Proposition 1B and other outstanding transportation bonds is currently about $1.1 billion per year.

• Vehicle weight fees are used to offset most of the debt-service costs on transportation bonds. For 2014-15, the Governor’s budget used all $958 million in weight fees to pay debt service on transportation bonds.

The failure to identify new transportation funding following the successful completion of the Prop. 1B program has contributed to the severity of our transportation Fiscal Cliff.


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Now with three locations to serve you:

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M A R C H 2 0 1 5 21

SITECH NorCalProviding the Tools to Revolutionize Your Construction Workflow

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SITECH NorCal is a Trimble Authorized Dealer and Service Center. We service and support the technology we sell. Call SITECH NorCal today at 1-888-4-A-LASER for a free evaluation and visit our website at www.SITECHNorCal.com

Now with three locations to serve you:

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POLITICS & MONEY

FUNDING forthe FUTURE3. Identify additional refinements in a legislative

funding package. Indexing gas tax, providing bonding capacity against a portion of the new revenue, dedicating a future portion of cap & trade funds generated at the pump to road repaving and rehab, repaying cities and counties for street and road funds withheld from them are all tools that should be examined as part of a comprehensive transportation funding package.

THE LONG-TERM SOLUTIONAlthough it will take several years to implement, the state is beginning a journey towards a user charge that

will draw upon all who use the system. The Legislature and the Administration have taken the first step through enactment of SB 1077 calling for thedevelopment and implementation of a road usage charge pilot program. u

Jim Earp is Executive Director of the California Alliance for Jobs, a business-labor partnership that represents more than 2,000 contractors in the heavy construction industry and the 80,000 union construction workers they employ from Kern County to the Oregon border. The Alliance advocates responsible investment in public infrastructure projects to help build a secure future for all Californians.

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POLITICS & MONEY


For the first time in years the legislature is taking serious the need for increased investments in California’s road and highway infrastructure. Last month, Governor Brown made a point in his State of the State speech by calling on the legislature to send him a bi-partisan proposal to reduce the $59 billion dollar shortfall in deferred maintenance of the street and highway system. Many in the construction industry were excited by the Governor’s call

to action but skeptical of the legislature’s ability to provide meaningful solutions after several years of ignoring declining gas tax revenues.

However, one elected official did take notice and began to develop concepts for increasing transportation funding in the 2015-2016 budget. In early February, the Speaker of the Assembly, Toni Atkins, unveiled a proposal that would increase transportation funding by $2 billion annually over the next 5 years. Her proposal includes:• Redirect $1 billion in truck weight fees from debt

payments back into transportation• Repay $200 million annually in outstanding loans

taken from transportation accounts • Create a Road User Fee that would raise $1.8 billion

in new revenue, however the first billion would go to fund debt service on existing transportation bonds.

The construction industry is looking at the Speakers proposal as a positive first step, but with such a large structural funding deficit more needs to be done to address the funding issue in the long term.

Without fundamental changes in how we pay for our transportation system, there will continue to be an

By Michael Quigley,Deputy Director,

California Alliance for Jobs

Legislature Offers Ideas to Address Transportation Funding Shortfall

M A R C H 2 0 1 5 25

increasing shortfall between what is in the state budget and what is needed to keep our roads smooth and pot holes filled. Fortunately other Assembly members including Trans- portation Committee Chair and UCON Legislator of the Year, Assemblymember Jim Fraizer, as well as the Chair of the Latino Caucus, Assemblymember Luis Alejo have also expressed interest in introducing their own supporting legislation this year.

Additionally, there are ten counties that are considering local transportation sales tax measures in 2016. These ballot measures will have the potential to create billions of dollars for local projects and maintenance just as Alameda County’s Measure BB which passed in 2014 will create $8 billion in local money for their streets and roads. The support that UCON and other members of the heavy construction industry provided

for Measure BB was critical in the decisions of other communities to explore their own a local transportation measures. With the momentum around transportation building towards more resources at the state and local level, this could be the year we turn the corner on declining transportation dollars.

Going forward it is clear that the continued involvement of UCON, the Alliance for Jobs and other industry supported groups in pushing for more transportation funding is reaching a critical juncture. With the expiration of the 2006 infrastructure bonds and the declines in gas tax revenue there are thousands of jobs counting on increased investments in our infrastructure. We owe it to our industry to get the job done and continue to rebuild California. u

Michael Quigley is Deputy Director with the California Alliance for Jobs, an industry supported non-profit representing labor and management, which advocates for increased infrastructure investments at the local, state and federal level. Their website is www.rebuildca.org.

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By Denise Ramirez,Online Services Manager

NEED MONEY? APPLY NOW! $23,000 IN SCHOLARSHIP FUNDS ARE NOW AVAILABLEUCON’s 2015 Scholarship Awards Program is accepting applications at www.unitedcontractors.org beginning March 10th. Ten scholarships totaling $23,000 will be awarded this year.

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 24, 2015 at 5pm PST. Winners will be announced by the end of June 2015.

United Contractors has awarded over $300,000 in scholarships since 1994. The Scholarship Committee is committed to providing educational assistance to our member employees and future industry leaders. For more information, contact Denise Ramirez at (925) 362-7308 or via email at [email protected].

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UCON CALENDAR

For details, online registration,and additional events/meetings:www.unitedcontractors.orgQuestions? Call (925) 855-7900

March5 UCON Crab Feed Thursday, March 5, 2015, 4:30pm Cost: $70 Member; $95 Non-member Location: San Ramon Marriott, San Ramon

April

( Fearless Foreman Thursday, April 16, 20156:00pm - 8:00pmCost: $99 Member / $199 Non-memberLocation: Pleasanton Marriott, Pleasanton(See page 28 for more information)

16

23 UCON Scholarship Fundraiser TexasHold‘EmPokerTournament Thursday, April 23, 2015 Cost: $140 Member; $170 Non-member Location: Bridges Golf Club, San Ramon

May14, 15 Napa R.E.D. Recharge / Engage / Develop Thursday and Friday, May 14-15, 2015 Cost: $375 Member; $410 Non-member Location: Villagio Inn & Spa, Yountville

Contact: Jaimie Ricchiuto, (925) 362-7309, [email protected]

23APR


THE FEARLESS FOREMAN —Promoting Positive Change from WithinChange starts from within. Give your team the push they need to make change happen. Join UCON for our Fearless Foreman seminar, Thursday, April 16, 2015. The seminar focuses on key strategies and techniques to help your people emerge as leaders, mentors and innovators on the jobsite. Attendees will gain specific people skill behaviors and strategies to promote positive change in both fellow employees, as well as jobsite practices.

Why should you attend?There is no other program in the construction industry that provides a uniquely focused people skills training specifically for foremen.

ContactJoanO’Brien,[email protected], (925) 362-7303.

“The best thing I have done in the 10 years I’ve been in construction.”

“If every foreman went through this training, it would impact our trade for the better.”

— Attendee testimonials

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M A R C H 2 0 1 5 29

MENTOR YOUR MILLENNIALSExcerpted from Chief Learning Officer, Jan. 2015

It’s becoming a familiar story. Companies are often not hiring millennials because they often lack necessary skills, such as the ability to write, interpreting and analyzing data, negotiating and managing time.

What’s the solution? Rose Ernst, one of the country’s top advocates for young professionals, believes corporations must have training and mentoring programs — either internally or externally — to teach recent grads the skills they are not learning in college.

There’s a disconnect when it comes to jobs and skills. Millennials don’t have some of the skills recruiters are looking for, and if millennials are hired without those skills, it poses a problem.

Mentoring can Help Bridge the Gap:How? A good mentor provides a safe zone, allowing both intellectual and emotional reactions to be expressed, and then provides suggestions for a different approach to the task, recommended reading and training to help the person gain more insight into effective techniques, as well as observations on the more personal factors which may be playing a part in the person’s struggle to master the task at hand. A mentor is not a trainer, and doesn’t have to be a direct supervisor. Rather, a mentor is someone who gets to know the person, both in terms of specific qualifications and more holistically, understanding their aspirations, what motivates them and where they may have beliefs or other outside factors limiting their ability to perform. The mentor also understands the type of work they are doing and the culture within which they work and is able to provide them with the tactics to achieve the mastery they seek.

Multiple sources validate the significant role mentoring plays in career development, particularly in growing new leaders. In a recent survey by Virtuali and New Leadership Council on engaging millennials for leadership development, the type of ‘leadership training,’ which was rated most impactful by working millennials, was career coaching or mentorship. This was also their most desired type of training. Millennials are well known for wanting the fast track to leadership and for their ability to become impatient for that upward mobility if they don’t perceive the opportunity

as imminent. If there is no mentoring or leadership coaching being given to help them (a) feel that the investment is being made to get them there and/or (b) to understand what stands in the way of that promotion, they are far more likely to stop investing in your company and leave for another who will provide this valuable development. The end result: The development plan has failed, at least for your company. u

For the complete article, visit www.clomedia.com/articles/print/6062-mentor-your-millennials. Article by Ladan Nikravan, Chief Learning Officer Senior Editor.

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UCON

42 YEARS – 1973Associate Member:San Jose Concrete Pipe Co.Brad Nakaji

34 YEARS – 1981Associate Member:US Concrete Precast GroupGreg Bull

33 YEARS – 1982Associate Member:AON Construction Services GroupMike Heffernan

21 YEARS – 1994Contractor Member:Uniacke Construction, Inc.Joseph Uniacke

Associate Member:Cresco EquipmentRentals Chris Smith

20 YEARS – 1995Associate Member:AWSISteve Ferris

18 YEARS – 1997Associate Member:Mechanics BankRob Fuller

17 YEARS – 1998Contractor Member:R.E. Serrano, Inc.Ricky Serrano

Associate Member:D.P. Nicoli, Inc.Mike Welton

16 YEARS – 1999Contractor Member:Central Striping Service, Inc.James Lesniewski

Associate Member:Harris Blade RentalSandy Thomson

14 YEARS – 2001Contractor Member:AEC Construction, Inc.Allen Carnesecca

13 YEARS – 2002Contractor Members:CMC Traffic Control Specialists, Inc. dbaCMC ConstructionCrystal Miks

Sukut Construction, Inc.Michael Crawford

12 YEARS – 2003Contractor Member:D.A. Wood Construction, Inc.Dan Wood

Associate Member:Heffernan InsuranceBrokersDavid Harris

10 YEARS – 2005Contractor Members:Argonaut ConstructorsMichael Smith, Jr.

Ashlin PacificConstruction, Inc.Rich Metcalfe

Associate Member:Atkinson, Andelson,Loya, Ruud & RomoRobert Fried

9 YEARS – 2006Contractor Members:Cal State Constructors, Inc.Don Cabianca

California Track &Engineering, Inc.Karol Fair

8 YEARS – 2007Contractor Member:Tri-Valley ExcavatingMike Garcia

7 YEARS – 2008Contractor Member:Inner City Demolition, Inc.James Campanella

6 YEARS – 2009Contractor Member:RNR Construction, Inc.Andre Catellier

5 YEARS – 2010Contractor Member:Precision Drilling, Inc.Ty Amundson

Associate Member:GE CapitalBrandon Hannaman

4 YEARS – 2011Associate Member:Construction TestingServiceJulie Thome

3 YEARS – 2012Contractor Members:Atkinson ConstructionJohn Harrington

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:

29 YEARS – 1986Contractor Member:T.D.W. Construction, Inc.Edmundo Alire, Jr.

28 YEARS – 1987Associate Member:Marsh Risk & InsuranceServicesChuck Marmolejo

22 YEARS – 1993Associate Member:CNA SuretyPaul Kitchell

> Engineering Consulting

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Joe Turner, RCEwith over 35 years experience

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CER Inc.Construction Engineering Resource

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phone 707 484-4704 fax 707 523-3808

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Joe Turner, RCEwith over 35 years experience

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CER Inc.Construction Engineering Resource

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There is no certainty in the future, this we all know. As a recent graduate of an Executive MBA program, I spent many nights trying to forecast demand, analyze data, and interpret changes from market conditions. As contractors, you don’t need an advanced degree to know that the industry is challenging and that even the best conditions can bring the unexpected. My most valuable experience was speaking 1-on-1 with CEO Dominic Barton of McKinsey & Company; here is what I learned in those 10 minutes on being prepared for the future:

1. Accelerate innovation—constantly seek to develop new business models and expand your “innovation engine” by harnessing your employees’ ideas

2. Reallocate assets meaningfully—shift talent, capital and management focus behind strategic priorities and be agile enough to capture opportunities

3. Focus on value—develop strategies to capture value in local markets and within your own business model with an eye to both threats and opportunities

4. Invest for the long term—take a long-term approach to your investments or risk being swept away by new competitors

5. Hire the right talent—with data and analytics training and with non-traditional backgrounds

While you cannot predict the future, a business mindset of being open to emerging changes around you will afford you the opportunity to be prepared to meet new demands so your company and hard work do

The5P’sofBusinessPerformanceBy Drew Aversa,

Director of Business Development

not become extinct. Lastly, remember the famous 5 P’s: Proper Planning Prevents Poor Performance. The strength of UCON membership lies in the collective and collaborative approach of over 470 member companies and a dedicated staff who strive for excellence, innovation, and value driven results. The start of 2015 is a great time to become involved on a committee, attend a business networking event, exchange ideas, and elevate the industry to new heights via labor, regulatory, and political involvement. Please contact me to learn about the resources available to you as a member and other ways to become involved in the association. u

You can reach Drew at [email protected], (925) 785-6977 or or connect with him on LinkedIn.

N O V / D E C 2 0 1 3 35M A R C H 2 0 1 5 31

2 YEARS – 2013Contractor Members:California Engineering Contractors, Inc / Silverado Contractors, Inc, a Joint VentureWahid Tadros

Roadway Construction, Inc.Reza Yazdi

Associate Members:Downey Brand LLPSean Filippini

1 YEAR – 2014Contractor Members:Goebel Construction, Inc.Greg Goebel

Ransome CompanyGeoff Ranska

Associate Members:CareerSMITHTony Bolliger

Varela, Lee, Metz & Guarino, LLPAndrew Van Ornum

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By Chris Lee,UCON Safety Consultant

CheckBehindYou;andThenCheckAgainPreventing Injuries and Deaths from Backing Construction Vehicles and Equipment at Roadway JobsitesWorkers on roadway construction jobsites are exposed to possible injury and death from moving construction vehicles and equipment. The National Institute for Occupational Safety and Health (NIOSH) evaluates accidents and deaths and makes recommendations to Federal OSHA and to state programs such as Cal/OSHA.

DESCRIPTION OF EXPOSUREThe Bureau of Labor Statistics (BLS) reviewed 962 fatal jobsite injuries at road construction projects from 2003 to 2010—443 were due to a worker being struck by a vehicle or mobile equipment that was backing up. Between 1992 and 2009, NIOSH and state partners investigated 36 deaths of workers by backing construction vehicles or equipment on roadway construction jobs.

CONTROLSEMPLOYERS — for employers (including contractors and subcontractors) there are three areas with important recommendations.

Standard operating procedures: • develop, implement and enforce standard operating

procedures that address worker safety and minimize work near vehicles and equipment

• use equipment designed to minimize blind areas and equipment with proximity warning systems

• establish safe work practices for night work and backing equipment, requiring high visibility apparel

• provide adequate oversight and supervision by a competent person

• ensure that drivers only back under the direction of a spotter

• ensure daily communications between the prime and subcontractors to discuss any changes in construction traffic flow

• channel construction vehicles and equipment away from workers using visual safety devices

• install signs to guide workers on foot with respect to traffic areas, vehicle flow and worker-free zones

SAFETYCompliance: • ensure compliance with

worker safety, traffic control, vehicle regulations, and consensus standards pertaining to work in roadway construction jobsites (Cal/OSHA’s Construction Safety Orders, Manual on Uniform Traffic Control Devices, ANSI/ASSE A 10.47, ANSI/ISEA 207, ANSI/ISEA 107).

EQUIPMENT SERVICING AND OPERATIONS — ensure that construction vehicles and equipment operating onsite are maintained in a safe operating condition at all times by developing and implementing the following:• a scheduled maintenance

program for all roadway construction vehicles and equipment

• safety features (reverse alarm, video cameras) installed in accordance with manufacturer’s specifications, that operate as intended, and function properly

• vehicle, equipment and safety device inspections at the beginning of each work shift. Defective vehicles, equipment and safety devices should be removed from service until repairs are made

• installation of collision avoidance or proximity warning systems, or monitoring technologies on construction vehicles and equipment to increase the likelihood that equipment operators will detect workers on foot around their equipment

Vehicle Equipment and Operations: • inspect your vehicle, equipment and safety devices

M A R C H 2 0 1 5 33

at the beginning of each work shift and report deficiencies to your supervisor; remove any defective equipment until repairs are made

• ensure mirrors and windows are functioning, in good condition, clean and properly adjusted

• be aware of equipment and vehicle blind areas and watch for workers

• use and maintain contact with a spotter when backing any vehicle or equipment – if contact with the spotter is lost STOP immediately

Communication: • develop, implement and test the methods of

communication that will be used during operations. At the start of each shift, review communications signals between spotters, machine operators, truck drivers and workers on foot. Prohibit the use of personal cell phones and head phones or similar items that could pose a distraction. Provide two-way radios to personnel who coordinate vehicular and equipment activity within the jobsite

Training: • develop, implement, and enforce a comprehensive

safety and training program in the workers’ primary language and at the appropriate literacy level, that include the following:

- targeted training on the operator’s visual limits of the specific equipment being used on the job, and provided to both equipment operators, and workers required to work on foot near the equipment blind areas - standard operating procedures that minimize exposure of workers on foot to moving construction vehicles and equipment - daily pre-work safety meetings to discuss the work to be performed, safety hazards, safe work procedures, and the method of communicating changes in the work plan

WORKERS—workersonfootshouldadheretothe follow safety guidelines:• Always wear high visibility apparel that is

appropriate for your task and work environment (ANSI/ISEA).

• Be aware of equipment and vehicle blind areas and avoid being near those areas.

• Confirm communications signals with an operator and do not approach until the operator gives acknowledgement.

• Be aware of equipment travel paths and avoid standing or walking in these areas.

• LISTEN for reverse alarms in the area.• Do not rely solely on one safety practice, always be

aware of your surroundings and ensure that workers are aware of you. u

Note: NIOSH is an acknowledged source of much of this information. Additional information from NIOSH can be accessed at: www.cdc.gov/niosh

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Your 2015 Board of Directors—Hunting for a Better Business Environment

Strong Leadership (with a sense of humor): UCON’s 2015 Board of Directors:

(Back row from left) Guy Smith, St. Francis Electric LLC; Bruce Daseking, McGuire and Hester, President; Rich Gates, DeSilva Gates Construction, Director-at-Large; (middle row, from left) Brett Kincaid, O’Grady Paving, Inc. Secretary/Treasurer-Elect; Christi Plum, P C & N Construction, Inc.; Mary Rotelli, Teichert Construction; Kim Scruggs, Columbia Electric, Inc.; Donna Rehrmann, Stomper Company, Inc., Vice President/President-Elect & Secretary/Treasurer; Sue Capriola, Silverado Contractors, Inc.; Hal Stober, Gordon N. Ball, Inc.; Paul Cianciarulo, Granite Rock Company; (Front row from left) Kevin Albanese, Joseph J. Albanese, Inc., Past President; Dominic Sposeto, Vanguard Construction; Thomas Lum, Peterson Cat, Associate Director; Mike McGrath, Graniterock, Associate Director-Elect

See other UCON Board “theme” photos at www.UnitedContractors.org/BoardofDirectors

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ClovisRedding

Sparks, NV

Ferguson/Groeniger Waterworks Locations

www.petersoncat.com

*Offer valid from February 1, 2015 to June 30, 2015 on select new models of machines manufactured by Caterpillar Inc. Building Construction Products Division. Offer available only at participating Cat dealers. Flexible payment terms available. Offer is available to customers in the USA and Canada only and cannot be combined with any other offers. National and Corporate account customers are not eligible to receive this offer. Financing and published rate are subject to credit approval through Cat Financial. Offer subject to availability of eligible machines. Offer may change without prior notice and additional terms and conditions may apply.

P114_0215 © 2015 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.

YOU’RE MAKING A LIVING. WE’RE MAKING IT EASIER. Peterson Cat® is built to help your business succeed every day – by ensuring you’ve got the right machine for the job, making parts readily available, giving you the work tools you need and providing expert service. And when you buy now, we’ll save you money today – and for years to come.

OWN A NEW CAT®

GET 0% FOR 60 MONTHS*

For details, talk to your Peterson Cat Sales Representative or call us at 888.PETERSON.

united contractors magazine march 2015

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