euca april 2011 magazine

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Got Resources? Keeping in Compliance on Public Works p.8 Runaway Regulations: EUCA Members Lend Advice to Sacramento p.10 A Piece of the Pie: Our Fight for Funding in Sacramento and D.C. p.18 WWW.EUCA.COM APRIL 2011 ISSUE 4/VOLUME 217 THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP ? ? ? R R R R R R R R l l l i i A A A A A A A A A A A A A P Pi Pi P P P P f f f f f f t th h h h h h h h Our Push for Funding

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Page 1: EUCA April 2011 Magazine

Got Resources?Keeping in Compliance onPublic Works p.8

Runaway Regulations:EUCA Members Lend Advice to Sacramento p.10

A Piece of the Pie: Our Fight for Funding in Sacramento and D.C. p.18

WWW.EUCA.COMAPRIL 2011ISSUE 4/VOLUME 217

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

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Our Push for Funding

Page 2: EUCA April 2011 Magazine

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Page 4: EUCA April 2011 Magazine

R E P A I RR E P A I R

P R E V E N T I O N

S O L U T I O N S

C O V E R A G E

C A R E

P R E V E N T I O N

State Fund’s

Alternative Dispute

Resolution Program

State Fund’s Alternative Dispute Resolution Program (ADR) provides exceptional workers’ compensation insurance with “no-hassle,” cost-control measures for union employers. This program allows eligible employers enhanced benefits, an immediate discount on premiums, while providing comprehensive coverage for employees.

For details on the ADR system and other program features, call your insurance broker, or Cathie Hastings at State Fund Group Programs at (800) 533-6868.

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Page 5: EUCA April 2011 Magazine

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Cover equipment photo courtesty J.C. Evans Construction Company.EUCA Digger Magazine (ISSN: 1086-5004) is published monthly, except December, by the Engineering & Utility Contractors Association, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Corre-spondence should be directed to the EUCA offi ce 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 permit-ted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offi ces. Postmaster: Send address changes to: EUCA Digger Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2011 Published in the U.S.A.

2011 EUCA BOARD OFFICERS

President ......................................................Rob Layne

Vice President/President-Elect .................Mike McElroy

Secretary/Treasurer .................................Mike McElroy

Secretary/Treasurer-Elect......................Michael Ghilotti

Past President (2010) .......................... Christian Young

APRIL 2011ISSUE 4, VOLUME 217contents

EUCA BOARD OF DIRECTORSNikki Affi nito, Union Bank; Kevin Albanese, Joseph J. Albanese, Inc.; Jami Brady, BakerCorp; Don Cabianca, Cal State Constructors, Inc.; Jerry Condon, Condon-Johnson & Associates, Inc.; Michael Ghilotti, Ghilotti Bros., Inc.; Greg Gruendl, Ray’s Electric; Rob Layne, O.C. Jones & Sons, Inc.; Steve Lydon, TerraCon Pipelines Inc.; Mike McElroy, FMG, Inc.; Robert Purdy, RGW Construction, Inc.; Danny Wood, Jr., D. A. Wood Construction, Inc.; Christian Young, D.W. Young Construction Co., Inc.

EUCA COMMITTEE CHAIRSAssociates: Nikki Affi nito (Associate Director), Union Bank; Jami Brady (Associate Director-Elect), BakerCorp | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Gary Andrews (Chairman), Amos & Andrews, Inc. | Labor/Collective Bargaining: Mike Fuller (Chairman), Mountain Cascade, Inc.Steve Geney (Co-Chair), Ghilotti Construction Co. |Safety & Insurance: Gary Rudy (Chairman), Duran & Venables, Inc. | Scholarship: Leslie Cusimano (Chair), Joseph J. Albanese, Inc., Janice Lajoie (Co-Chair), GE Capital

EUCA STAFFMark Breslin, Chief Executive Offi cer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor & Member Services Representative; Galina Velikovich, Labor Relations Advocate; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Jami Moore, Member Services Coordinator; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Education & Website Manager;Joan O’Brien, Education Coordinator; Jenn Rogers, Event Manager; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Kevin Pedrotti, Legislative Advocate

April 2011 5

More Inside:

www.euca.com

6

10

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26 Next Up

28 We Are EUCA

30 Safety Corner

32 Member News

34 Last Call

18

UP Front How Are You Going to Pay for That?Rob Layne, EUCA 2011 President

LABORResources for Public Works Compliance; Updates for ConstructionAdministrative ProfessionalsBy EUCA Labor Relations Department

INSIDE The CapitolRegulatory Reform in California:Making the Relationship WorkBy Emily Cohen, EUCA’s Director ofGovernment Relations

FACES14

Got Resources?Keeping in Compliance onPublic Works p.8

Runaway Regulations:EUCA Members Lend Advice to Sacramento p.10

A Piece of the Pie: Our Fight for Funding in Sacramento and D.C. p.18

WWW.EUCA.COMAPRIL 2011ISSUE 4/VOLUME 217

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

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Our Push for Funding

FUNDINGSPECIAL FEATURE

FUTURE WORKfor

Page 6: EUCA April 2011 Magazine

How are You Going to Pay for That?

6 WWW.EUCA.COM

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money came in, it was divided among each specifi c jar to cover each bill that was coming due at the end of the month. No money was used until the jars were properly fi lled. Then I left for college, and immediately thought I could devise smarter schemes for answering the question, “How am I going to pay for that?” In the good old days before ATMs, I soon fi gured out that I could head to the grocery store on Friday night after the banks closed, write a check for twenty dollars, and be fully funded for the weekend. I just had to somehow get those twenty dollars back in my checking account before close of business Monday night.

For California, close of business Monday night has long since come and gone, and the payment schemes have gotten wilder. We continued to add jars until we lost track of how many jars needed to be fi lled, much less how we were going to properly fi ll them. One of those jars is labeled “Infrastructure”, and these days it continues to get lost among all the other jars waiting to be fi lled. The impact of funding cuts and restrictions on our infrastructure spending is well apparent. If you’re not convinced, climb in your car, cinch down your belts, grab hold with both hands and take a spin down your local interstate. There are plenty of things that need fi xing before we even get to improvements needed. The “2010 California Statewide Local Streets and Roads Needs Assessment” shows that the current statewide 10-year roadway funding shortfall has grown to $79 billion. This is an increase in shortfall of $8 billion from when the previous study was released in 2008. The Pavement Condition Index for the average local road currently stands at 66 on a scale of 0-100 (with 100 being excellent). As maintenance work continues to be deferred, our infrastructure will deteriorate more rapidly. If we think we can’t afford to maintain our infrastructure, how do we think we can afford to replace it when it is beyond repair?

It’s time to rearrange the jars. Proper levels of funding for our infrastructure pay dividends in many sectors. Well

defl ating question. In fact, actually stepping back and taking the time to contemplate this question can often bring your whole pipe dream tumbling to the ground in a ball of fl ames. You can choose to ignore the question, assume the money will just show up from somewhere, and continue enjoying your pipe dream until you wake up with nothing. Or you can cook up some high-leveraged debt-sway transaction involving the 5th race at Santa Anita to get your dream up and fl ying. This may work, at least until your bookie calls to tell you Bruno is on the way to collect his payment. The sensible approach of responsible planning and investing wisely is the tried and true method to get your dream up in the air and keep it there for the duration. This approach must be too obvious though, because we seem to expend considerable effort creating every payment scheme except the sensible one.

In my younger years, I learned the sensible approach from watching my Mom handle the family’s fi nances. As the

“How are you going to pay for that?” That’s the age old question to all of our pipe dreams. If you already have a legitimate solution, this question is not an issue. If you don’t have that part of the plan worked out yet, it can be a

Proper levels of funding for our infrastructure pay dividends in many sectors. Well planned and maintained transportation corridors reduce traffi c, reduce fuel consumption and air pollution, reduce vehicle maintenance costs, reduce delivery costs for goods and services, and increase safety and quality of life.

Page 7: EUCA April 2011 Magazine

April 2011 7

planned and maintained transportation corridors reduce traffi c, reduce fuel consumption and air pollution, reduce vehicle maintenance costs, reduce delivery costs for goods and services, and increase safety and quality of life. Well planned and maintained water and waste water systems promote public health, provide needed water and sanitation for agriculture, business, and municipalities, and reduce water pollution. Investing in our infrastructure provides job opportunities not only in the trades, but for equipment manufacturers and dealers, material suppliers, and engineering, consulting and design fi rms to name a few. These job opportunities put people to work and reduce the burden on various government assistance programs. Their increased spending power in turn positively impacts local economies.

Take the time to help EUCA make sure our politicians are putting the money in the right jar. Write a letter, or visit with your local congressman. Join EUCA’s Government Relations committee. Donate to our PAC. Participate in our Government Relations Auction. We have a great staff and group of volunteers working to make sure the funding is there for future work, so help them out where you can. Your business depends on it. ◆

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Page 8: EUCA April 2011 Magazine

Resources for Public Works Compliance

8 WWW.EUCA.COM

We get a lot of calls here at EUCA about public works and prevailing wage compliance issues. While most of the prevailing wage determinations and rules are based on union agreements, there can be overlaps in jurisdiction and parts of the union agreements that the DIR does not include in the determinations. Good union contractors often run into problems with contracting agencies when they fi nd they are not in compliance with prevailing wage statutes, even though they are following their union agreements.

Here are a couple of excellent resources that are out there for all public works contractors:

DIR Public Works Tool Kit: This website was launched almost two years ago to make it easier for contractors and

others in the public works construction industry to fi nd the necessary information and forms for compliance when bidding on and performing work on public works projects in California. It also features a comprehensive Public Works Manual, located in the References section of the Tool Kit website, which is helpful for understanding how the Department of Labor Standards Enforcement (DLSE) interprets and enforces prevailing wage and public works statutes. The website is www.dir.ca.gov/DAS/DAS_BuildingCompliance/BuildingCompliance.htm

Foundation for Fair Contracting: Every year the FFC offers free seminars and workshops on prevailing wages and public works labor compliance, featuring speakers from relevant government agencies. A calendar of upcoming seminars is available on the FFC website, www.ffccalifornia.com. Additionally, the FFC is the place to call if you have concerns about other contractors that you have reason to believe are not in compliance with prevailing wage law. ◆

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Page 9: EUCA April 2011 Magazine

New Form I-9 Guidance for Employers: U.S. Citizenship & Immigration Services (USCIS) has a detailed online handbook that answers many questions employers have about proper completion, updating and storage of Form I-9. With increased attention from the federal government on I-9 enforcement and worksite

April 2011 9

Did You Know?Updates for Construction Administration Professionals

New Jobs Tax Credit: California’s New Jobs Credit provides a credit of up to $3,000 for each new full-time employee added in the current taxable year (based on the company’s taxable year) over the previous year that results in a net increase of full-time employees. This credit may be available for employers who had 20 or fewer employees on the last day of the previous taxable year. You can nd more information about this on the Franchise Tax Board website, www.ftb.ca.gov/businesses/New_Jobs_Credit.shtml, or by calling them at 800-852-5711.

compliance, this is an area you can’t afford to neglect. The Handbook was updated again at the beginning of this year with expanded guidance on many topics including how to treat interruptions in employment (such as for extended layoffs) and electronic storage. You can nd it on the USCIS website (www.uscis.gov/ les/form/m-274.pdf), and there is also a link on the EUCA website under Free Downloads – Human Resources – Immigration.

EUCA University offers Construction Administrative Professional Seminars (CAPS) highlighting some of the obstacles you may be facing in the ever-changing needs of the industry. Courses include:

Payroll Prevailing Wage Certi cation Prompt Payment Claims Documentation Understanding and Managing Leaves of

Absences Employee Layoff and Termination Electronic Media Challenges in the

Workplace Get Ready for 2012: New Laws Preview Harassment Prevention

All CAPS courses will be held in Pleasanton, CA (see page 26 for more details). To register, visit www.euca.com..

EUCA’s ConstructionAdministrative Seminars:Increase Your Office Productivity

TANKS

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Page 10: EUCA April 2011 Magazine

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In Chief Executive’s annual survey of best and worst states for business, conducted in late January of this year, 651 CEOs across the U.S. again gave Texas top honors, closely followed by North Carolina, Tennessee and Virginia. Top honors for the worst place to do business went to California. Sound familiar? That’s because we got the same “prestigious” award last year. How long can we keep this up?

Recently, Senator Pro-Tem Darrel Steinberg said that he intends to seek emergency legislation that will call on government agencies to search out outdated or duplicative

Regulatory Reform in California — Making the Relationship Work

INSIDE The

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regulations that can be eliminated. Why? Maybe it’s that elections are right around the corner, or maybe it’s because the majority party is hoping to get tax extensions on a Spring ballot and needs the support of businesses. Who knows? Maybe, they had an enlightening experience (tried to start and run a business in California?); but, according to Senator Steinberg, California needs “to do a whole lot better in providing a friendlier business climate,” even adding that “Government needs to be more nimble.”

Responding to Senator Steinberg’s comments, EUCA said, “Uh, Amen.”

Today, California’s Code of Regulations is approximately 5,000-pages, and it seems no one (including past governors, the legislature or any state agency) has done any kind of comprehensive look-back at state regulations to determine their consistency with current law – or to determine the possibility of streamlining them. Instead it’s just law after law implementing regulations onto businesses. For California, I suppose this isn’t all that surprising, but it is disappointing. And, assuming you aren’t the government, kind of scary. In California’s Capitol, it often feels like no one is watching out for business.

2011 should be the year California’s legislative leadership decides that we need to re-build California in a way that

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Page 11: EUCA April 2011 Magazine

“ ”

“If we really could roll back laws, my rst choice is to remove the exemption that Mining & Agriculture have from the Clean Water Act—A 5% reduction in runoff from these two sources/industries, nationwide, is more environmentally gainful than a 100% reduction for all construction projects in the US.”

“Quite simply, there should be one contractor website that is simple to understand, and where all of the forms needed, can be lled-out electronically, for all equipment. This could also be where all environmental and licensing data could be recorded and stored. The system would use the contractor’s state business license to access, and from there all data could be entered electronically. Off-road has one [website] that is close, and that could be the starting point as a template.”

“A pet peeve of mine is Government operated maintenance and improvement programs. Caltrans is one of the largest eet owners in the country, not just California. The cost to own, operate, and repair this equipment is huge, as well as the cost to keep operators and laborers on the government payrolls. It would be much more cost effective and ef cient to hire this work out to private companies that continue to carry these costs at taxpayers’ expense, plus the state would be able to once again take advantage of the ef ciency and production private companies offer when compared to productivity of public agency crews.”

“Eliminate duplication. Does Solano County really need 8+ school districts, each with their own buildings, staf ng, expenses, etc.? I’ve got to think one entity could supervise the entire county’s school system far more ef ciently. Does the state really need the myriad of water districts, re protection districts, parks districts, etc., each with their own supervisors, staffs, vehicles, expense accounts, and associated overhead? We should be looking at eliminating all of these little efdoms and cut overhead expenses.”

April 2011 11

supports businesses and a strong business environment, and there’s no better place to start than with the construction industry and the rolling back of some of California’s most draconian regulations.

When working with government and government issues, never forget what Einstein said: “We cannot solve our problems with the same thinking we used when we created them.” So, I asked some of the most “ x-it” minded people I know, EUCA members, what California needs to be doing right now to create the legislatures new found goal of a “friendlier business environment.” Here’s what some of you said (names and company kept con dential):

“Here’s a Bomb to drop: Short of cutting CARB’s budget by 50%, the government should provide tax credits and other incentive credits for all contractors who comply, or have complied, with current and amended CARB regulations. Since 2007, millions of dollars have been spent on compliance efforts by small, medium and large companies. Now is the time to give them some bang for their buck.”

“CARB has three branches most contractors have to deal with. On-road, off-road and portable equipment should have the same rules. It really shouldn’t be as complicated as it is. All regional operations should be shut down and incorporated into a state system. The air is clearing at an acceptable rate with new technology coming along.”

“The Off-Road regulation was delayed until 2014, but the On-Road regulation was just as brutal. For our company, most of our eet over 14,000 GVW had to be replaced by 2016, and only 2010 and newer models were good after 2020. The On-Road regulation needs to be delayed as well as the Off-Road.”

“One obvious area is SWPPP regulations. They should be reviewed for ‘bang for your buck’ factor on what is being required. I believe that if you check with Caltrans, they anticipate SWPPP costs to consume almost 10% of their new construction budgets, taking away from getting improvements in place. Additionally, there is a lot of duplication it seems, between the Corp of Engineers, EPA, Cal EPA, State RWQCB, RWQCB’s, Fish and Game, US Fish and Wildlife, NOAA, local agencies, etc… all trying to regulate, mandate the same thing.”

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EUCA Members Offer Up Ideas to Help Make the Relationship Work

Continued on next page

Dear CARB: Give Us A Break.

“ ”i i SWPPP l tib i

Let’s Regulate Regulations.

“ ”l th h ld bit i

Simplify the Obvious.

“ ”It’s Time to Streamline.

In California’s Capitol, it often feels like no one is watching out for business.... So, I asked some of the most “ x-it” minded people I know, EUCA members, what California needs to be doing right now to create the legislatures new found goal of a “friendlier business environment.”

Page 12: EUCA April 2011 Magazine

12 WWW.EUCA.COM

“The new Construction General Permit (CGP) requirements need to be simplifi ed and the numeric effl uent limits (NELs) eliminated. The NELs lack a technical basis, are overly burdensome, not cost effective and far too complex. The Construction Industry Coalition on Water Quality (CICWQ) provided an economic analysis of the CGP by Berkeley Economic Consulting, Inc. in 2008 that found that “Complying with these numeric limits in different weather events, in different climates, and discharging to receiving water bodies with differing characteristics, can pose signifi cant economic impacts.” The increased costs for construction will lead to higher costs for transportation and public improvement projects without a corresponding improvement to water quality.”

“The CGP relies on incomplete data and a faulty analysis by the State Board to justify the new numeric limits. The dramatic cost increases for infrastructure, public transportation, municipal serving facilities and private sector projects are estimated to reach tens of thousands of dollars per acre. Additionally, the new permit requirements are so complex that a large number of permit violations will follow. The numeric effl uent limits in the new CGP must be removed and the permit simplifi ed if California wants to see construction and building projects return and their corresponding jobs.”

“There needs to be less diffi culty and lower cost for the permitting process. This is an easy and essential step to helping contractors in their day to day work and business. It’s a road block that should be moved out of the way.”

“Permitting fees and mitigation costs often raise the costs of new development projects by 30 to 40 percent. There are times when the permits cost more than the hard construction. Feet dragging by State and local agencies ignore the hidden permitting cost of the carrying costs of property during protracted environmental processes, which ultimately get passed on to apartment dwellers and fi rms occupying commercial space.”

“I really do believe that many of our elected offi cials have no idea what it really takes to startup a new company in California, let alone maintain one. If California’s legislature truly wants to review the impact of current regulations on business in California all they need to do is attempt to apply for a permit at the County level to remove and replace a driveway. It would only take minutes for them to understand that there are big problems within our local County and City agencies. I believe that this is one area where, if you cut the red tape and streamline the permitting process, you will see California’s businesses fl ourish!”

“This is one area where local regulation increases construction costs and hurts the industry. The City of San Francisco recently approved such a law, and if other cities follow suit, it will make it almost impossible for regional contractors to man our projects with well-trained crews. This local hiring law seems on the surface to be a good idea for the city passing the law, because it looks like they will provide jobs for their city, but the reality is that those jobs will come at a signifi cant cost by lowering construction effi ciency and quality, and therefore raising both project bid cost, as well as long term maintenance costs. Our state should say ‘No Way’ to local hiring on state funded projects.”

So there ya’ go Sacramento. No shortage of problems to fi x. No shortage of ideas to fi x them. We hope that our legislators will work hard this year to rebuild their relationship with businesses. California should not be an “us vs. them” state between government and the private sector. EUCA will continue to work with the legislature to bring to light some of the worst problems facing our industry—and we will continue to fi ght for viable solutions that will help California and our industry grow stronger and thrive.

Have something to add? Fill out the ROAR Survey on our website at www.euca.com (5-10 minutes)—or you can email me at [email protected]. EUCA will make sure your comments, ideas and opinions are heard loud and clear by your representatives. ◆

“ ”Play It Fair California.

INSIDE The

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“ ”Curb Local Hire Mandates.

S th ’ S t N h t f

Do You Have Something to Say?

“ ”Simplify Permits.

Page 13: EUCA April 2011 Magazine

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Page 14: EUCA April 2011 Magazine

14 WWW.EUCA.COM

EUCA’s Bay Area Crab Feed — 300 members,

associates and guests, supporting the industry,

cracking crab, and networking, Feb. 17, 2010.

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Page 15: EUCA April 2011 Magazine

April 2011 15

Page 16: EUCA April 2011 Magazine

16 WWW.EUCA.COM

Thank you to our Crab Feed Sponsors:

Platinum Sponsor – Stacy and Witbeck, Inc.

Gold Sponsors – Corrpro Companies, Inc.; Graniterock DBA Pavex Construction; Leonidou & Rosin A Professional Corporation; MAG Trucking; R.J. Gordon Construction, Inc.; The Barricade Company & Traffi c Supply; Volvo Construction Equipment & Services; Wells Fargo of California Insurance Services, Inc.; and Yerba Buena Engineering & Construction, Inc. Silver Sponsors – First Capitol Auction, Inc.; Gallagher Construction Services; GALLINA LLP; Ghilotti Bros., Inc.; JMB Construction, Inc.; LECET Southwest; Northern California District Council of Laborers; PAPÉ Machinery; Simpson, Garrity, Innes, & Jacuzzi, P.C.; State Compensation Insurance Fund; and West Coast Aggregates, Inc.

Event Chairpersons – Tana Karr, Enterprise Fleet Management & Jeff Prevost, Lockton Insurance Brokers, LLC

Thank you also to everyone who supported our raffl e—the funds raised, totalling $1,850, go directly to EUCA’s Scholarship Awards Program. Over the past decade EUCA ‘s Scholarship Program has awarded over $250,000 to 126 member affi liates and college students.

FACES

Page 17: EUCA April 2011 Magazine

April 2011 17

Page 18: EUCA April 2011 Magazine

There’s a lot to that question. Not everyone in our industry knows what the “gas tax swap” is, so I’d like to take a moment to connect a few dots that got us to where we are today.

As you know, the California Alliance for Jobs has played a lead role during the past decade to protect transportation funding from getting ripped off by the politicians. We haven’t fought this battle alone. EUCA, our basic craft unions (Operating Engineers, Laborers and Carpenters) and other employer associations have all been key partners in these efforts.

Back in 2002, we helped organize the campaign to pass Proposition 42 which was supposed to insure that the sales tax on gasoline be used for transportation projects. It passed by a landslide—70 percent of the vote.

We all thought at the time that we had written enough protections into the language that it would be very diffi cult for the politicians to actually suspend Prop. 42 protections.

We were wrong. Over the next two years, two different governors—one Democrat and one Republican—took action to suspend Prop. 42, and they obtained the necessary two-thirds approval from the Legislature to get it done.

At that point we began the work of drafting an initiative that would close the loopholes on Prop. 42 and provide real protections to the taxes we pay at the pump. That initiative effort became the catalyst that placed $37 billion of infrastructure bonds on the ballot as well. And in the fall of 2006, the Alliance chaired the Prop. 1A-1E campaign, the largest bond measure package in the history of the nation —and a constitutional amendment that put real teeth in protecting gasoline sales taxes for transportation.

The voters approved that by an incredible 77%.

18 WWW.EUCA.COM

FUNDINGSPECIAL FEATURESPECIAL

FUTURE WORKKey Questions On Industry Funding

This was an incredible victory for both our industry and California’s economy. For about a year, things were great. The legislature couldn’t mess with gas tax revenue in its annual budget battle—and the California Transportation Commission was moving aggressively to put transportation bond money on the street.

Then came the crash of 2008, which put a meat cleaver to the construction industry. And of course, the recession created a huge decline in tax revenue, which made California’s structural budget defi cit even worse. Nonetheless, the protections on the gas tax were solid. There was, however, a loophole we could do nothing about and that was the sales tax on gasoline itself.

We could devise laws to direct how the sales tax on gasoline must be used, but there is no way to mandate that there actually be a sales tax on gasoline. The authority to repeal a tax lies with the legislature or directly with the people of California through the initiative process.

That’s where the gas tax swap came in. Governor Schwarzenegger fi rst proposed it in January 2010. His idea was to repeal the sales tax on gasoline and replace it with an increase in the gasoline excise tax.

Why? Essentially, the law allows the two different kinds of taxes to be handled differently. There’s a portion of the sales tax on gasoline called the spillover that is outside

Th ’ l t t th t ti N t

1. What is happening with the gas-tax swap?

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Page 19: EUCA April 2011 Magazine

April 2011 19

the jurisdiction of Prop. 42. These funds are by law supposed to be used to help fund public transit.

But the legislature has been ripping off that money for years, because it never enjoyed any protections. The transit agencies fi nally sued the state and the case went all the way to the Supreme Court, where they prevailed against the state. The Governor and Legislature were prohibited from taking that money ever again.

So, the bean counters fi gured out that if they actually eliminated the sales tax on gasoline and replaced the portion

taxes or fees passed by the legislature in 2010 without two-thirds majority vote will be automatically repealed by November 2011, unless they are brought up again for a vote and receive a two-thirds approval by the Legislature.

So that’s where we are today—working to get the gas tax swap revalidated. Fortunately, Governor Brown supports the swap as part of his budget proposal. The package has also gone through all the necessary legislative committees with votes of support. So now we are waiting for it to go on the fl oor of each house of the Legislature for a fi nal vote of approval. Continued on next page

that was covered by Prop. 42 with an excise tax, they could still use the rest of the sales tax any way they saw fi t.

Thus was born the original “gas tax swap.” Based on the price of gasoline in January 2010, the total sales tax on gas—which included Prop. 42 funds plus the spillover funds—was equivalent to 17.3 cents a gallon. Governor Schwarzenegger wanted to replace the sales tax with only a 12-cent excise tax increase and give a nickel back to the motorists at the gas pump. That nickel would gradually be taken back in increments each year to service Prop. 1B transportation bond debt.

The transportation community went into crisis mode to fi gure out how to oppose the scheme. However, after assessing the situation and talking to key legislators, we realized we were going to lose this battle. I went to the Senate Pro Tem and offered to help them devise a better version of the gas tax swap – one that would put more money back into road projects and also preserve a reliable revenue stream for public transit.

And over several weeks of discussions, that’s what we did. I still have a stack of spreadsheets I put together to help us fi gure out the projections over the next 8 to 10 years.

That fi nal gas tax swap became a key part of the mid-year budget deal last year

So why are we dealing with it again? In November 2010, the passage of Prop. 26 by the voters, required among other things, that certain

I n s u r a n c e B r o k e r s

Page 20: EUCA April 2011 Magazine

20 WWW.EUCA.COM

FUNDINGSPECIAL FEATURESPECIAL

FUTURE WORKfor

That won’t happen until the larger budget package is fi nalized and also voted on by the Legislature.

The gas tax swap as negotiated will actually result in a modest increase in funding for transportation. And by swapping out the sales tax on gasoline for an excise tax, the taxes we pay at the pump no longer have to pass through the General Fund—they go straight to dedicated transportation accounts. That gets this money out of the General Fund—which is good—and it should be protected, because we also managed to pass Prop. 22 last November, which specifi cally protects this money.

So, overall, I would say we can expect a more stabilized revenue stream, and a little bit more money, but not enough to cover all of the need.

This changes every day and will probably be out of date by the time this magazine goes to press. As I speak now the Governor has asked the Democratic leadership to hold off on a fl oor vote this week, because he feels he is making some progress with a small group of Republican legislators who actually have the courage to try and work out an agreement in spite of extreme pressure from the hard right wing of the Republican Party.

The key to the Governor’s proposal is to split the $25 billion defi cit in half. Cover one half with cuts and cover the other half with a temporary extension of certain taxes that are scheduled to expire on July 1 of this year. If his proposal gets through the Legislature, it will result in a ballot measure or package of measures in June that will require the voters’ approval in order to become effective.

Thi h d d ill b bl b t f d

3. What is happening with the budget battle inside the capitol?

Th t ti t d ill t ll lt i

2. Can we expect increased/stabilized or decreased funding for our industry?

STATE

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Page 21: EUCA April 2011 Magazine

April 2011 21

The Governor is making a compelling case—and we support him. He is not asking the Republicans to support his tax extension proposal. He is simply asking them to put it on the ballot and let the voters decide. He has told the Republicans fl at out—put it on the ballot and go ahead and oppose it if you want. But let the voters decide. Don’t claim that you have the right to make that decision for them.

I see three potential scenarios. (1) A budget package gets hammered out that gains the

support of most if not all Democrats and at least two Republicans from each house—the minimum number necessary to get to two-thirds. In that event, a ballot measure will be part of that package—a measure that will go before the voters in a special election sometime in June. This is the best-case scenario. Under this scenario, our industry—both employers and labor— need to come together and work hard to help pass the June ballot measure, because its failure will come back to bite us in a very bad way. That means, even in this recessionary climate, we must dig into our pockets and come up with some serious money to help get the message out to voters.

(2) The second scenario is the budget package passes the Legislature, but the budget reform measures that are part of that package are not approved by the voters in June. That’s going to force the Governor to go back and slash another $12 billion from the budget – and everyone is going to feel it. K-12 education will probably get the biggest cut, because that is where the biggest chunk of the General Fund goes. But it won’t stop there. The politicians will be looking for cash wherever they can get it, and we can fully expect them to come after transportation funding. And in spite of the protections we have built around it, the unprecedented nature of this budget crisis will generate an atmosphere that “everyone must share the pain.” They will fi gure out some way to get some transportation funding.

(3) The third scenario is a meltdown in the budget negotiations. In that event, the clock runs out and there is not suffi cient time to place a ballot measure before the voters at all. The Governor then must get out the meat cleaver and do the same thing he would have to do under the second scenario.

There are other, even crazier scenarios. If budget negotiations reach gridlock, the Democrats in desperation may fi nd some way to put a measure on the ballot with a simple majority vote, but the political fallout of such a move will be huge and I think in that event, the likelihood of actually getting such a measure passed by the voters would be very slim, because the merits of the measure would be drowned out by all the political mud-slinging.

California has to sell bonds this year if we don’t want to see a major shutdown of projects occur all over this state.

4. Can we expect the same kind of budget stalemate/gridlock as we witnessed during last year’s budget process? If so, what will the impact be on industry?

h

5. Will California be able to sell bonds this year?

Continued on next page

The gas tax swap as negotiated will actually result in a modest increase in funding for transportation. And by swapping out the sales tax on gasoline for an excise tax, the taxes we pay at the pump no longer have to pass through the General Fund—they go straight to dedicated transportation accounts.

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Page 22: EUCA April 2011 Magazine

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1520 Fourth St., Berkeley, CA 94710 • Phone (510) 526-3424

Secondly, we ultimately need to increase the gas tax. That will be a huge lift. We do a lot of polling on this stuff and the idea of increasing the gas tax 15 or 20 cents—which is where we need to be—is pretty much dead on arrival. We’re suffering double-digit unemployment. The price of gas is fl irting once again with $4 a gallon. It’s going to take a very smart strategic plan and a very committed, sustained and expensive effort on the part of our industry to get us where we need to go with this issue.

We do live in a very challenging time, but when times get tough, it’s important to take stock and realize where we would be without our accomplishments. We

22 WWW.EUCA.COM

FUNDINGSPECIAL FEATURESPECIAL

FUTURE WORKfor

STATE

As you know, I serve on the California Transportation Commission and last year served as chair. The year before that, Bob Alvarado, the head of the Northern California Carpenters and a member of the Alliance’s board of directors served as chair. I can assure you, we’ve done our part to make sure that the state gets as much bond money out on the street as possible to get California back to work.

Last year, the CTC approved $4 billion in Prop. 1B bond projects, but we couldn’t allocate the money for them, because the budget stalemate prevented the state from selling any bonds.

In November, the Treasurer was fi nally able to issue a bond sale and there were enough bonds sold to not only keep existing projects moving, but to let that $4 billion in projects receive their allocations and start going out to bid later this year. The problem is, there is only enough money to keep these projects funded until the end of this year.

We were counting on the state to do two more bond sales this year, but now it looks like there’s only going to be one sometime in the fall. Let’s keep our fi ngers crossed that it is a good bond sale, because we’ll need it to keep all these projects going.

We need to do two things over the long term. First, we need to make sure the money we already have at our disposal is being used effi ciently, because in this economic environment, we can’t expect any signifi cant amount of new money to come our way. How do we do that? Caltrans needs a major overhaul. Caltrans is spending up to 40 cents on every dollar in “support costs”—i.e. overhead—to build a project. That’s way too much. Caltrans has to implement more effective and effi cient management practices. That won’t be easy, because it is the largest bureaucracy in the state. We need to implement design-build practices and other innovative means of project delivery. And, we need to implement more “public-private partnerships” (P3s) to leverage state and local funds with private money to build projects that we otherwise will never have the money to build.

6. What will it take to stabilize state funding for transportation/infrastructure funding for our industry in California?

This seems like a pretty grim picture.

Page 23: EUCA April 2011 Magazine

April 2011 23

should never lose site of the reality that it was our industry that got a $37 billion bond package approved by the voters a few years ago. And where would we be today if those bonds had not passed? How many contractors are still in business and how many union workers are still working because of the projects funded by those bonds?

That’s why we must always be politically smart, strong and committed as an industry. There isn’t a project that goes to bid that isn’t in some way a product of the political process. We’ve achieved some huge wins over the past decade and if we continue the fi ght, if we make the fi nancial sacrifi ces that will be required, there are more victories in our future. ◆

Jim Earp is Executive Director of the California Alliance for Jobs, a business-labor partnership that represents more than 1,700 contractors in the heavy construction industry and the 80,000 union members they employ throughout northern and central California.

In February 2007, Earp received a gubernatorial appointment to serve on the California Transportation Commission, the agency responsible for overseeing and allocating funding for the state’s transportation program. He was elected to serve as chair in February 2010.

Earp was hired to direct the California Alliance for Jobs in 1998. Under his leadership, the Alliance has become a strong advocate for transportation investment, solving the state’s housing shortage, meeting California’s water needs and other issues that impact California’s economy and the construction industry.

Under Earp’s leadership, the California Alliance for Jobs has also played a critical role in helping to pass more than $15 billion in transportation funding measures for Northern California counties and regions, including: • 2010: Five of seven Bay Area county Vehicle Registration Fee measures;• 2006: Sales tax measures for San Joaquin and Fresno counties; • 2004: Sales tax measures for Sacramento, Contra Costa, Sonoma, Alameda, San Francisco, San Mateo and Marin counties and Regional Measure 4 (Bridge Toll increase);• 2000: Sales Tax for Alameda County.Passage of these statewide and local ballot measures has put tens of thousands of people to work rebuilding and improving California’s aging infrastructure.

...we must always be politically smart, strong and committed as an industry. There isn’t a project that goes to bid that isn’t in some way a product of the political process.

As one of the largest design-build contractors in North America, Flatiron is your single source of responsibility for quality, budget and schedule. We have strong relationships with many of the nation’s top design firms and partner with designers best suited for your project. Our teams are recognized with the nation’s top design-build awards for innovation, and our ideas often lead to higher quality, faster schedules and reduced environmental impacts. We are proud to be leading the joint venture effort for the Oakland Airport Connector (OAC) Design-Build/Operate and Maintain project.

www.flatironcorp.comA HOCHTIEF Company

Page 24: EUCA April 2011 Magazine

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FUNDINGSPECIAL FEATURESPECIAL

FUTURE WORKTruthful Answers from

the Nation’s Capital

themselves as an “insider.” Many of these folks get their information third-hand (at best) and have agendas of their own, which comes out in their “analysis.”

No one is saying that passing a surface transportation reauthorization bill will be easy. Without new funding, we are looking at steep program cuts! Yet the leaders of committees with primary jurisdiction—House Transportation & Infrastructure Committee Chairman John Mica (R-Fla.) and Senate Environment & Public Works Committee Chairman Barbara Boxer (D-Calif.)—have publicly reaffi rmed their respective commitments to getting a multi-year bill done in 2011. So now is the time to get involved in the process all the way—both to help create some momentum for a bill and to infl uence what is in it.

Answer: No one is demanding that the transportation construction industry agree with every aspect of these draft bills when they are released, nor should we. You can be assured, as always, ARTBA will provide the most rigorous analysis of any proposed legislation. Moreover, we will continue to meet with committee staff and members in both chambers to provide our feedback, based on years of experience that is respected within both parties because of our policy expertise, not our political partisanship.

RTBA prides itself on always providing the unvarnished “truth.” So as we assess the prospects

and strategies for passing a multi-year federal surface transportation reauthorization bill, we must remain objective and clear-eyed. Herein I’ll try to debunk some of the myths fl oating around within our community by answering some frequently asked questions (FAQs):

Answer: Unfortunately, we live in an era when anyone with an Internet connection and blast e-mail list can fashion

Ru

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Question: “I read in EUCA Magazine that reauthorization prospects are bleak. So why should I even bother to engage in the process?”

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Question: “Some of the recent reauthorization proposals in Congress have been troubling. Wouldn’t we be better off with nothing happening instead of those bad ideas moving forward?”

FEDERAL

Page 25: EUCA April 2011 Magazine

April 2011 25

However, a stalled process, in which no bill—however fl awed—moves anywhere, provides no opportunity for any of these efforts. And it’s well-documented that we won’t see robust multi-year construction plans in many states, nor signifi cant new investments in human capital and equipment by ARTBA members, until we see a multi-year bill. Short-term extensions and continuing resolutions will do little to bring down 20+ percent unemployment in the industry or prepare the economy for a more competitive future. So ARTBA says: get the process started, introduce a bill, and let’s get to work on it.

Answer: ARTBA is focused on those 535 U.S. senators and representatives every day. We meet with them and their staff, provide authoritative data, and share information from the industry’s standpoint on a continuous basis.

So ARTBA staff can frame the issues, but we are not constituents of those elected representatives. Only you can put a face on the industry by showing the economic progress that more transportation infrastructure investment can make in your area—or the catastrophe that cuts will cause. It’s easy for a member of Congress to go on a rant about “too much government spending” and budget cutting. But let’s see him or her look into the eyes of a constituent whose business or job is on the line if Congress cuts federal transportation investment, and see if they still waffl e. That’s how you and your industry colleagues can make a difference.

Answer: Get out and meet with your U.S. senators and representatives locally, especially the new ones. Invite them to your offi ce or on a tour of a project site. ARTBA can provide any background information you may need.

Also make plans to attend ARTBA’s annual Federal Issues Program and Transportation Construction Coalition Fly-in on May 23-25 in Washington, D.C. You can learn more about the event at www.euca.com (and the enclosed fl yer).

Both houses will hopefully be working on reauthorization bills at that point. It will be the perfect time for you to bring them another dose of reality from home. You can also join with colleagues from around the country, hear briefi ngs from high profi le speakers, and meet with offi cials from federal agencies who shape your business environment.

Question: “I’m busy running my business. Isn’t it ARTBA’s job to visit with Congress?”

G d h S

Question: “Then what can I do to help?”

As always, it will be a wise investment of your time and money—never more so than now!

“The truth shall set you free.” Don’t be misled by the din out there. We can pass a good surface transportation reauthorization bill in 2011—but we need your help to do it. ◆

Founded in 1902, ARTBA is the consensus voice of the transportation construction industry on the federal level. EUCA is an affi liate of ARTBA. For more information, visit www.artba.org.

Join EUCA at the ARTBA Fly-InMay 23-25 in Washington D.C. Don’t miss EUCA’s 2011 Legislative Fly-In and ARTBA

Conference, May 23-25, at the Mandarin Oriental

Hotel in Washington D.C. Contact Emily Cohen,

EUCA’s Director of Government Relations for more

information, [email protected].

May 2010: 335 industry executives participated in the Transportation Construction

Coalition (TCC) Washington Fly-In.

March 2011: 800 bicyclists storm Capitol Hill urging Congress to boost bike

trail investment in the multi-year surface transportation bill.

May 2011: ___ will attend the TCC Fly-In and lobby their congressional delegations

for timely passage of a robust highway/transit investment bill. Will you be one?

Register now to attend the May 23-25 ARTBA Federal Issues Program & TCC Washington Fly-In at www.artba.org.

Make your voice heard!

ON THE HIGHWAY/TRANSIT BILL?WHOSE VOICE IS BEING HEARD

Page 26: EUCA April 2011 Magazine

Texas Hold’em

Poker TournamentJune 9, 2011, 4:30pm

Round Hill Country Club, Alamo

Agenda for the Evening’s Event:

Registration: $130 per person (includes dinner, drinks, and $1,500 in chips). For more information, contact Jenn Rogers at 925/362-7309 or [email protected] or visit www.euca.com. Sponsorships available.

New This Year—EUCA’s Scholarship Fundraiser will be a No-Limit Texas Hold’Em Poker Tournament! You don’t have to be a seasoned poker player to join in the fun of this exciting new event. Place your bets on our future leaders, and support the Scholarship Program by registering today.

up

26 WWW.EUCA.COM

UPCOMING CONSTRUCTION ADMINISTRATIVE PROFESSIONAL SEMINARS (CAPS) FROM EUCA:

EUCA SCHOLARSHIP AWARDS APPLICATION DEADLINE: APRIL 22NDDon’t miss your chance to win one of 9 scholarships from EUCA! $19,500 will be awarded this year from EUCA’s Scholarship Awards Program. All EUCA member affi liates (majoring in any subject), and California college students majoring in construction management or civil engineering, are eligible to apply.

Applications must be received in the EUCA offi ce by Friday, April 22nd (no exceptions). For more information and to download the application, visit www.euca.com.

PAYROLL/PREVAILING WAGE: Thursday, April 21, 8:00am-10:00am (Chabot Las Positas District Offi ce, Pleasanton) — This seminar will cover penalties for sub-contractor non-compliance, federal Davis Beacon regulations, prevailing wage determinations and more.

PROMPT PAYMENT:Thursday, April 28, 8:00am-12:00pm (Residence Inn, Pleasanton) — Want to know how to get paid? Learn the inside tips on legislative and legal remedies for “slow” and “no-pay” situations. This program includes training and instruction on prompt pay, mechanic’s liens, stop notice, and bonds.

CLAIMS DOCUMENTATION:Tuesday, May 17, 8:00am-12:00am (Residence Inn, Pleasanton) — Learn how to identify the warning signs when faced with a claim.

For more information contact Education Coordinator, Joan O’Brien at 925/362-7303, or [email protected].

The new Poker Tournament replaces the Scholarship Golf Tournament for EUCA’s Scholarship Awards Program fundraiser.

4:30-5:30pm: Doors Open, Networking, Dinner, and “Ask the Dealer” to brush up on your Texas Hold’Em skills.5:30pm: Tournament Starts: Unlimited Re-Buys Allowed (until 7:00pm)

7:00pm: 10 minute Break and LAST Add-On Opportunity7:10pm: Tournament Resumes9:00pm: End of Tournament and Prizes Awarded

Page 27: EUCA April 2011 Magazine

April 2011 27

Do you develop SWPPP’s? Do you review SWPPP’s?Do you inspect Construction Sites? Do you install BMP’s?

If you answered YES to just one of these responsibilities, then you are required by the State of California’s Construction General Permit to complete the requirements and certifi cation for a Qualifi ed Storm Water Pollution Prevention Plan Practitioner (QSP) or Qualifi ed Storm Water Pollution Prevention Plan Developer (QSD) prior to September 2, 2011.

We know that the new storm water regulations can be confusing. To help you understand the new upcoming

STATE MANDATED SWPPP EUCA QSD/QSP TRAININGNOW AVAILABLE

requirements, EUCA has partnered with WGR Southwest, Inc. for a 2-day QSP training, and an extra 3rd day for QSD training.

Their classes are easy to follow and will give you the training and certifi cation(s) your company needs to maintain compliance.

QSP/2-Day Training: May 24 & 25, 2011; 8:00am-5:00pmCost: $350 per person

QSD/3-Day Training: May 24-26, 2011; 8:00am-5:00pmCost: $450 per person

Location: OSHA Training Center, 7600 Dublin Blvd., Dublin; Continental breakfast and lunch will be served on-site each day.

Register online: www.gotswppp.comFor questions contact:Lisa Smith at 209/334-5363, [email protected] or Joan O’Brien at 925/362-7303, [email protected]

For More Information or to Place an Order:3786 Valley Ave. Pleasanton, CA 94583

Phone: 1-800-248-8183Fax: (925) 846-4904

Email: [email protected]

www.oldcastleprecast.com

• Utility Vaults for Power, Communication, Gas and Water• Water and Pull boxes• Oil & Water Separators• Utility Trench

• ConVault• Short Span Bridges• Manhole Covers• Grease Traps• Custom & Specialty Products

www.uvpleasanton.com

Delivering ReliabilityDelivering Reliability

Page 28: EUCA April 2011 Magazine

28 WWW.EUCA.COM

EUCA

EUCA would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in April:

32 YEARS – 1979Associate Member:Rinker Materials - Concrete Pipe DivisionCheryl Street

24 YEARS – 1987Associate Member:East Bay M.U.D.Olujimi Yoloye

21 YEARS – 1990Associate Member:Volvo ConstructionEquipment & ServicesTim Hurst

20 YEARS – 1991Contractor Member:D’Arcy & HartyConstruction, Inc.Mike D’Arcy

19 YEARS – 1992Contractor Members:Conco-West, Inc.Mike DeRousse

El Camino Paving, Inc.Melissa Campos

18 YEARS – 1993Contractor Members:Bauman Landscape andConstruction, Inc.Michael Bauman

Western StabilizationAshley Jeffery

Associate Member:West Coast Aggregate, Inc.Richard DeAtley

17 YEARS – 1994Contractor Member:Nada Pacifi cCal Terrasas

Associate Members:Org MetricsSue Dyer

Oldcastle Precast - Utility VaultJohn Lewis

16 YEARS – 1995Associate Members:Sweeney, Mason, Wilson & BosomworthJoseph M. Sweeney, Esq.

Zurich North America SuretyTimothy W. Fanto

15 YEARS – 1996Contractor Members:O’Grady Paving, Inc.Tom O’Grady

Steelhead Constructors, Inc.Kevin Ramstrom

14 YEARS – 1997Contractor Member:Diablo Contractors, Inc.

Associate Members:Hertz Equipment RentalMark Hobson

Vulcan Materials Co.,Western DivisionDom Didio

APRIL MEMBER ANNIVERSARIES

13 YEARS – 1998Contractor Members:Antioch Paving Co., Inc.Melissa Allison

Lombardo Diamond DrillingMike Dugan

Associate Members:Corrpro Companies, Inc.Dahl Rask

REM (Revel EnvironmentalManufacturing, Inc.)Charles Fleischmann

S & S TruckingFrank Sanchez

San Jose TransportJim Vergara

Stevens Creek Quarry, Inc.John Kolski

12 YEARS – 1999Contractor Member:Gordon N. Ball, Inc.Hal Stober

11 YEARS – 2000Contractor Member:Allen A. WaggonerConstruction, Inc.Rocky Myers

10 YEARS – 2001Contractor Member:HSR, Inc.Michael Dorsa

9 YEARS – 2002Contractor Members:Oak Grove ConstructionDoug Hamilton

Vintage Paving, Inc.Ed Carbahal

Associate Members:International FidelityInsurance CompanyStan Eng

Rain for RentIan Pringle

5 YEARS – 2006Contractor Member:Mike Brown Electric Co.James Brown

Associate Member:J.S. Cole CompanyPeter Almlie

4 YEARS – 2007Contractor Members:ProTech General Contracting Svcs., Inc.Chris Ott

Team Ghilotti, Inc.Glenn Ghilotti

Trinet Construction, Inc.Nora Hickey

Associate Member:Jenkins Insurance GroupMatt Plank

3 YEARS – 2008Contractor Member:The Beebe Corp.Loren Beebe

Associate Members:California Bank of CommerceTom Park

DHE, Inc. Equipment Co.Scott Humphrey

Lockton Insurance Brokers, LLCJeff Prevost

Rogers Joseph O’DonnellJoseph McGowan

Sheppard Mullin Richter & HamptonScott Hennigh

The Guarantee Company ofNorth America USAKevin Chambers

1 YEAR – 2010Associate Members:DI Aggregate Management, LLCRon Peterson

Verizon WirelessKristina Murphy

Page 29: EUCA April 2011 Magazine

“Leslie, it’s not often that an organization can celebrate 30 years of service for one of its employees, and I think this is a great accomplishment for both you and EUCA. I thank you for your years of dedication to our organization and your personal touch that so many of us have grown to expect from EUCA. All the best in the years to come.”— Mike Hester, McGuire and Hester, EUCA 1996 President

“Leslie’s thirty years of insight, patience, integrity, class and passionhave had a remarkable and positive impact on the organization, mem-bers and staff. She sincerely cares about people fi rst and always has. Our Association’s values and what we stand for are refl ected in her service and dedication.”— Mark Breslin, EUCA CEO

“Leslie, like the matriarch of a family, you truly embody the heart of the EUCA community and I will forever be grateful for the dedication and service you provide.”— Andy Vasconi, A.J. Vasconi General Engineering, EUCA 2009 President

“We are truly blessed to consider Leslie Lord this Association’s most common beautiful being, bringing 30 years of guidance and love supporting all the members of this Association. Thank you, Leslie.” — Ricky Serrano, R.E. Serrano, Inc., EUCA 2007 President

“During my presidency, Leslie was the ultimate liaison to every aspect of EUCA. She handled each task and request with an elegant profi ciency. I want to thank her not only for her assistance, but for helping EUCA achieve its elevated status in the world of construction.”— Mary Ramos, EUCA 1993 President

“It was my good fortune to be involved with EUCA when Leslie was fi rst hired. She was, and is, a sweet, caring, hard working, and loyal friend. From the beginning, I was impressed with her intelligence and dedication. Leslie personifi es that individual who contributes to make a group succeed while enjoying every moment of it. Truly a bright light that lifts us all up. Congratulations Leslie on your 30th anniversary of a sparkling career.”— Jeffrey Lowe, EUCA 1977 President

CELEBRATING 30 YEARS OF SERVICE — LESLIE LORD, EUCA’S DEPUTY DIRECTORHow has EUCA shaped you as a person?Fortunately for me, I came to work for the members of EUCA at a very young age. The people that I have worked with dur-ing this time have truly had a positive impact on my life and have shaped me into who I am as a person. Past and pres-ent, the members and staff are inspiring, they work hard, have great passion, vision, drive, dedication, energy and spirit. They share great ideas and are innovative. They are committed to making our industry a better place. They have shown kindness, respect and they value a job well done. They value the person. How could you not be changed in some way after working with such a special group?— Leslie Lord

Our Firefi ghter

“It was not until I was elected to the Board that I realized Leslie was not the “head” of the EUCA. I have always thought it nice that she let her understudy have such face-time with the membership. She is at the minimum the “Heart and Soul of this Association.”— Fred Ehler, EUCA 2006 President

Page 30: EUCA April 2011 Magazine

30 WWW.EUCA.COM

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Contributed by the California Regional Common Ground Alliance

California contractors: April is National Safe Digging month, and you’re not 100% safe (or legal) unless you make an 811 call part of your plan.

Spring projects are fi nally here, but before you start digging, even with a shovel, remember to call 811, the free national call-before-you-dig number to ensure that buried utility lines are located and marked.

The California Regional Common Ground Alliance, comprised of excavators, utilities, regulators and industry groups, recognizes April as National Safe Digging Month to remind contractors that every day Californians walk, ride and drive over a complex underground infrastructure of pipelines, wires and cables. Striking an underground utility line while digging can cause harm to you or those around you, disrupt service to an entire community, and potentially result in fi nes and repair costs.

A call must be placed to 811 before every digging project, from simple landscaping projects like planting trees or shrubs to installation of utility infrastructure. There are 170,000 underground utilities damaged annually across the nation, and one out of every three incidents is the result of not calling 811. Don’t become part of the statistic—make sure to call 811!

Here are 5 steps to a safe excavation: 1. Mark in white the proposed dig area2. Call 811 at least two working days and up to 14 calendar days before you dig to give your location and description of your digging project3. Confi rm that facility owners have responded before digging4. Hand Expose lines in confl ict – 24” either side of the markings5. Keep ticket valid. Ticket good for 28 days – may be revalidated

The California Regional Common Ground Alliance (CARCGA) is committed to the prevention of damage to underground installations and the resulting interruption of vital services, safety risks and fatalities by promoting the use of Best Practices. Formed in 2004, the CARCGA’s members include excavators, utilities, regulators and industry groups. Go to www.commongroundalliance.com to learn more.

Can You Dig It? Call 811 To Be Sure.

Photo courtesy Duran & Venables, Inc.

Underground Contractor Products

UNDERGROUND CONTRACTOR PRODUCTS

TRANSPORTATION

EROSION CONTROL PRODUCTS

RECYCLE YARDS PRODUCTS AND SERVICES

(minimum 5,000 ton orders)

(for construction access areas)

Page 31: EUCA April 2011 Magazine

April 2011 31

Don’t forget...the Offi ce of Administrative Law approved revised heat illness regulations, that went into effect on November 4, 2010. The standards apply to all outdoor places of employment. High Heat procedures apply specifi cally to employers in the construction industry, including landscaping and even transportation or delivery of materials.

The revised standards specify that shade may be provided by any natural or artifi cial means that does not expose employees to unsafe or unhealthy conditions and requires employers to provide shade whenever the outdoor temperature exceeds 85 degrees Fahrenheit. If employers can demonstrate that providing a shade structure is not feasible or is unsafe the employer can provide equivalent but alternate access to shade.

The standards also include high heat procedures whenever the temperature equals or exceeds 95 degrees Fahrenheit, and these procedures include incorporating effective communication between employees at the worksite and a supervisor, observing employees at the worksite for signs or symptoms of heat illness, reminding employees to drink water, and closely supervise new employees.

The full text of the revised heat illness standards can be found on the Department of Industrial Relations’ Website at http://www.dir.ca.gov/dosh/heatillnessinfo.html.

EUCA’s offers a downloadable Heat Illness Prevention Plan free to members. Simply log on to our website at www.euca.com, and under the Labor Relations Tab, choose Free Product Downloads. Click on Safety & Insurance and you will fi nd the Heat Related Illness Prevention Plan for IIPP, just one of many free product downloads for members. If you have questions on this, or other EUCA products, contact Jami Moore, Member Services Coordinator at 925/855-7900, [email protected].

Regulation Reminder:Heat Illness Update

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Page 32: EUCA April 2011 Magazine

32 WWW.EUCA.COM

NEWSMem

ber

Brutoco Engineering & Construction, Inc. Receives Project Achievement AwardThe Eastbound State Route 91 Lane Addition won an Engineering Project Achievement Award from the Orange County Engineering Council (OCEC). The award was presented to Brutoco Engineering & Construction, Inc. and Caltrans District 12 at the 2011 Honors and Awards Banquet held February in Huntington Beach, CA.

The team was recognized for meeting or exceeding all expectations for schedule, cost, quality and safety. While the challenges were signifi cant and construction had to be performed along one of the most congested freeway corridors in the nation, the $40 million project was built in one year, rather than the two years specifi ed in the staging plans.

Crews worked overtime on nights and weekends to meet this aggressive schedule. Furthermore, at the request of the Transportation Corridor Authority (TCA) construction of the

western one mile of the project was accelerated and opened to traffi c six months early.

This project widened 5.9 miles of the eastbound Riverside Freeway from SR-241 in Anaheim to SR-71 in Corona, adding one 12-foot lane with a12-foot shoulder and

widening all lanes to standard widths. Brutoco also widened fi ve existing bridges, constructed over 100,000 square feet of soil-nail and retaining walls, and reconstructed the Green River Rd. ramps and SR-71 connector.

The congestion reduction project was highly visible since it was the fi rst in Orange County funded by the American Recovery and Reinvestment Action (ARRA) and also becauseBrutoco’s work was observed by over 300,000 vehicles per day traveling on SR-91.

Brutoco Engineering and Construction, Inc., EUCA member since 1988, is an employee-owned company building heavy civil and utility projects for public and private clients throughout Southern California. Visit them online at www.brutoco.net, 909/350-3535.◆

Sagemark Consulting’s James Westermeyer Selected to Elite GroupJames Westermeyer has been selected as one of 69 fi nancial planners, for the 8th year in a row, from among 2200 fi nancial planners across the country to join the 2011 Select Member group of Lincoln Financial Advisors Corp./ Sagemark Consulting, (LFA/Sagemark), as part of the fi rm’s Sagemark Consulting - Private Wealth Services program which focuses on clients in the “Very High Net Worth” (VHNW) market.

This recognition and subsequent invitation to join the Select Member program was determined by identifying LFA/Sagemark fi nancial planners who are most capable of working with VHNW clients. The criteria included a demonstrated commitment to client service, current success and a rigorous internal evaluation.

As a Select Member, James Westermeyer will be teaming up with the most prestigious LFA/Sagemark fi nancial planners in the country. James Westermeyer will have access to proprietary advanced specialists and resources in LFA/Sagemark dedicated to plan production in estate and business owner planning. Regular symposiums and high-level training meetings will be held for Select Members to increase their innovative capabilities and improve the consistency and excellence of working in this marketplace.

Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a broker/dealer and registered investment advisor, is a nationwide fee-based fi nancial planning fi rm specializing in helping meet the fi nancial needs of the affl uent market. EUCA member since 2010, James Westermeyer can be reached at 925/659-0241, www.sagemarkpwsgca.com ◆

S l t M b

GALLINA LLP Leads Growth on Top 100 List for Public Accounting in U.S.GALLINA LLP makes several remarkable highlights in the March 2011 release of the Top 100 Firms 2011 by “Accounting Today.” On the list, GALLINA LLP is ranked in the Top 100, Top 15 for the Western United States, and Ranked 1st for pacesetters in positive growth in 2010 with revenue under $100 million. In the country, GALLINA LLP is Ranked 1st overall from all fi rms in the United States as the pacesetter with the largest percentage change at 31.25 percent.

Larry Taylor, Managing Partner, GALLINA LLP, expressed “the reason this is possible is due to the hard work and dedication of our staff members. Their achievements have translated into the success of GALLINA.” He continues

Page 33: EUCA April 2011 Magazine

April 2011 33

A D V E R T I S E R I N D E XAdvertiser Page# Telephone Web/Email

Ameron Int’l Water Transmission Group 10 209/836-5050 www.ameronpipe.com

ARTBA 25 202/289-4434 www.artba.org

Babcock Insurance 31 408/263-8180 www.babcockinsurance.com

BakerCorp 9 925/252-2400 www.bakercorp.com

Bay Line Cutting & Coring, Inc. 7 888/420-1055 [email protected]

California Bank of Commerce 8 925/444-2936 www.californiabankofcommerce.com

Destination Anywhere Trucking, Inc. 24 209/836-9400 www.destinationanywhereinc.com

Ditch Witch Sales 17 510/567-5722 www.calditchwitch.com

EPIC Insurance Brokers 19 415/356-3900 www.edgewoodins.com

FFC (Foundation for Fair Contracting) Insert 916/487-7871 www.ffccalifornia.com

Flatiron Construction Corp. 23 707/742-6000 www.flatironcorp.com

GALLINA LLP 20 916/784-7800 www.gallina.com

Ghilotti Bros., Inc. 16 415/454-7011 www.ghilottibros.com

Graniterock 30 888/ROCK100 www.graniterock.com

Groeniger & Company 35 800/675-PIPE www.groeniger.com

Leonidou & Rosin 21 415/715-2860 [email protected]

O.C. Jones & Sons, Inc. 22 510/526-3424 www.ocjones.com

Oldcastle Precast – Utility Vault 27 800/248-8183 www.oldcastleprecast.com

Peterson Tractor Co. 32, 36 888/PETERSON www.petersontractor.com

R & B Company 3, 23 408/436-1699 www.rbcompany.com

State Compensation Insurance Fund 4 800/533-6868 www.scif.com

Topcon California 13 800/500-8575 www.topcon.com

Trench Plate Rental Co. 7 800/321-5550 www.tprco.com

United Rentals Trench Safety 2 925/933-3660 [email protected]

Business Card Advertisers:

Bay Area Traffi c Solutions (B.A.T.S.) 29 Stacy and Witbeck, Inc. 29

Evans Brothers Inc. 33

Volvo Construction Equipment Plans to Spend $100 Million in its North American OperationsOver the next couple of years, Volvo Construction Equipment (CE) plans to spend 100 million USD in its Shippensburg, PA, USA manufacturing facility and start production of Volvo wheel loaders, excavators and articulated haulers in North America. Also, the Volvo CE North American sales headquarters and Volvo Rents will relocate from Asheville, NC to Shippensburg, PA by September 2012.

“It makes sense, when possible, to manufacture products close to where our customers are,” said Olof Persson, President and CEO of Volvo Construction Equipment. “The global demand for Volvo construction equipment is rapidly increasing and we need to make investments to meet future demands in the region. Producing Volvo wheel loaders, articulated haulers and excavators in Shippensburg will result in shorter lead times for our customers. We will work closely with local suppliers to increase the North American content of our products. This will further reduce our exposure to exchange rate fl uctuations, which will already be positively affected by our bringing more production to the USA.”

A world class Customer and Demonstration Center will be built in Shippensburg. In addition, Volvo CE will put up a new offi ce building on the campus to house its Regional Sales Headquarters, its Volvo Rents offi ces, and its Training Center.

For more information, visit www.volvoce.com, or contact Volvo Construction Equipment & Services, 510/357-9131, EUCA member since 1990. ◆

by sharing “these results truly demonstrate our unique culture. While we are a large regional public accounting fi rm, with superior talent and expertise, we still maintain a small personal feel to better serve our clients.”

For more information regarding the Top 100 Firms 2011, please visit www.accountingtoday.com. GALLINA LLP, EUCA member since 1981, is a full-service fi rm with niches in construction, real estate, agri-business, and government, in addition to offering services to a broad range of other businesses and individuals. Headquartered in Roseville, the fi rm has been opening doors to success for their clients’ since 1972. Visit www.gallina.com for more information, 916/784-7800. ◆

Evans Brothers Inc.

7589 National Drive, Livermore, CA 94550925-443-0225 offi ce

925-443-0229 fax

Page 34: EUCA April 2011 Magazine

Have Jobsite Photos to Share?EUCA Magazine is looking for project photos. Send submissions to Michelle Vejby, Publications Manager, [email protected].

CALL

34 WWW.EUCA.COM

PEOPLE & PROJECTS

Preston Pipelines, Inc. continues progress on the Delta Water Supply Project, the largest Public Works Project ever undertaken by the City of Stockton (nearly $200 million). The Project will allow the City of Stockton

to pump water from the San Joaquin River delta to a new treatment facility, and then back into the existing city infrastructure for distribution. The project has three main components: the Intake Pump Station on the San Joaquin River, approximately 11 miles of pipeline, and a new Treatment Facility.

Yerba Buena Engineering & Construction, Inc. joins with Con-Quest Contractors, Inc., performing emergency project construction for SFMTA MUNI—the tracks at the Balboa Station were very worn and the trains were derailing.

Page 35: EUCA April 2011 Magazine

Groeniger & Company3854 Bay Center PlaceHayward, California 94545

www.groeniger.com1-800 [email protected]

Services:ARRA CompliantPublic Works SpecialistsWaterworksFire Protection

Locations:HaywardModestoFresnoSanta Rosa

SacramentoRosevilleBakersfieldSalinas

Santa MariaPlant DivisionLodiChico

SewerReclaimed WaterIrrigationStorm Drain

TracyLancaster

Page 36: EUCA April 2011 Magazine

LET PETERSONBUY YOUR PARTS.*

For a limited time, you can get back 10% of your qualified service invoice to use toward future over the counter parts purchases or for parts used on a service work order (shop or field) machine repairs.

Step 1: Have qualified service performed April 1 through July 31, 2011.

Step 2: A 10% credit from that qualified service is placed within a new Cat® AccessAccount (up to a maximum of $5,000).

Step 3: Use your credit toward future over the counter parts purchases or for parts used on a service work order (shop or field) machine repairs.

*Repairs on Cat machines valued at: • $1,000+ repair for Compact machines • $2,000+ repair BCP machines • $5,000+ all larger machines

Contact your Product Support Sales Rep today.

www.petersontractor.com

* Major component overhaul/rebuild/major repair work invoiced between 4/1/11 and 7/31/11, will be eligible for a Caterpillar parts credit worth 10% of the total invoice. The parts credit will come in the form of a new Cat AccessAccount credit account. Customer parts credits must be used by 12/15/11 on over the counter or future service repairs. Credits cannot be used for open accounts, dealer credits or future purchases beyond 12/15/11 and are not redeemable for cash. Program starts 4/1/11,

any service job completed prior to that date does not qualify. Program ends 7/31/2011.

hchines

s Rep today

chines hines

Fortuna 800-562-6735

Redding 800-922-1881

Willows530-934-8839

Santa Rosa 800-464-1558

San Leandro888-738-3776

Chico800-421-0747

Willits 800-964-9006

San Martin 800-562-9260

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DEMAND!