Changing Times As you know, things are constantly chang-ing at PMI. Under normal circumstances, we have been able to turn what looks like very challenging hurdles into something that has continued to be very positive. As most of you know, we had a Vice Presi-dent leave the company and as a result, some re-shuffling of the organizational chart occurred. Andy Hosler was named as Vice President of Pre-Construction and Special Projects. Rick Carpenter was named as Vice President of Operations. I would like to acknowledge and thank all of the outstanding applicants and PMI em-ployees that applied for these positions. This type of participation and enthusiasm will ensure PMI’s success for many years to come. Please take the time to congratu-late Andy and Rick when you see them. As a result of these promotions, there once again were some big shoes to fill. Kevin Parker will assume the position of Chief Estimator and Rich McChesney will take over where Rick left off. Due to Rich managing the Flue Gas project at Valero, he will transition into Manager of Projects on a gradual basis and will fully assume the position in the fall. Chris Moulden, who was our Safety Manager in LA, has re-placed Kevin as Manager of Safety. Again, I would like to thank all of the very profes-sional employees who applied for these positions. It takes a lot of pride, self worth and caring for the company to put forth such effort. As you can see, PMI is constantly attempt-ing to improve on an already very success-ful business plan. Recently, the manage-ment team got together and asked them-

selves, “What would be the best method to constantly improve the company?” The result- “Ask the people who work for the company”. We are slowly devel-oping a program we are calling the “PMI Way”. Some of you may have heard of it and some probably haven’t. If you have-n’t heard of it, ask your supervisor to get you some information on it. The Readers Digest version of the pro-gram is as follows: PMI is asking all employees to think of and identify issues within the company that we could do better, change or imple-ment. All you have to do is write down your idea for improvement and then de-scribe your proposed solution. Each continual improvement idea will be pre-sented to a review team. The review team will analyze each suggestion and decide if it is viable and should be looked into or developed further. Each em-ployee that turns in a suggestion will be acknowledged in the company newslet-ter. If your idea is developed and imple-mented, there will be an incentive or re-ward given. At the end of the year, it has been suggested that we reward the best of the “PMI Way Suggestion” at the Holiday Party. The entire reward or in-centive plan has not been fully worked out, but will be soon. GET INVOLVED and be a part of PMI’s continual improvement and suc-cess. It is my belief that you currently work for the best contractor in Califor-nia, and this will help keep us there. It is truly all about the people.

Pat Jones Sr. Vice President

Pittsburg

THE PMI WAY VOLUME 2 ISSUE 4

A NA NA NA NOTEOTEOTEOTE FFFFROMROMROMROM MMMMANAGEMENTANAGEMENTANAGEMENTANAGEMENT

Inside this issue:

Sacramento 2

Los Angeles 2

PM Department 3

Safety Department 4

YTD Safety Statistics 5

PMI Way Suggestions 6

In Loving Memory of Larry Kraak

7

The Scoop 8

Holiday Events of 2009 9

SACRAMENTO

C.A.S.T for Kids

C.A.S.T for Kids is a nation wide

nonprofit organization that pro-

vides a special day for special kids

to go fishing.

They came to the jobsite and I am

exceptionally proud of the PMI

guys at the Wild Goose project in

Gridley. Cash donations from the

PMI crew amounted to $1300 and

with the other contractors on site

we raised close to $7000.....fantastic

job by everyone! (PMI Corporate

kicked in another $250 which is not

included in the $1300 figure).

The event was held Saturday, April

17th at the Grey Lodge Wildlife

Area in Gridley. I took a few pho-

tos, handed out some stickers and

donated some hats for them to raf-

fle off.

Each kid received a fishing pole,

tackle box, tee shirt, plaque with

his/hers and the volunteers picture

on it and of course worms. The kid

holding up a bunch of fish held the

record for the day.....had 12 fish be-

fore the day ended. Overall it was a

great day!. Victor Diorio

Site Safety Supervisor

Pittsburg

2. The PMI W

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LOS ANGELES

Another Good Job Done the PMI Way (Tesoro 30" Flare Line Demo) 2/11/2010 While Team Industrial was half way into the cutting of the pipe it was noticed that the pipe was starting to get more and more out of round than it already was. Before cutting the pipe, the 30" was 3/4" out of round. All the weight of the stop-ples, valves & saddles was flattening the pipe. But with the help of PMI's knowledgeable supervisors and our expert craftsmen they came up with a quick, safe, and effective idea on how to cost effectively per-form the work. As it was cold and rainy the night of February 10, 2010, our crew stayed and worked on through the night to cut the pipe and insert the 30" plug (Under

Fresh Air). They also fabricated a ring with welded bolts and nuts to take the out of round out of the pipe so the plug could be installed. Te-soro was very happy with our work and pleased with our safety and qual-ity. Another good job done the PMI WAY. Take a look at the photo's be-low. The pipe at one time was 2" out of round. The flange is being welded to this date. No accidents, no inci-dents, good quality. Happy client.

Lonnie Stephenson QA/QC Manager Southern California

We continue to enjoy successful project results. This is a credit to the quality team we have assembled and the tal-ent and efforts of everyone. We continue to receive very good budgets for our projects from estimating. Our safety performance and record are exceptional and project support is great. Our Quality Control department and professionals are instrumental in contributing to highest quality results from our craftsmen and for our Clients. Home and Area Office support is timely, helpful, and consistent. The construction department is doing a great job of balancing overall company commitments with unique and constant construction challenges we face on each project. Yes, we are doing very well. We have worked hard to build to this point of success, and we must continue to innovate and improve to remain at the top of our game. We are working towards adopting a company wide culture and program of continuous improvements, large and small. This is essential work we all must do to help us maintain our competitive edge, remain an industry leader, and keep working towards productivity improvements, which makes us even more competitive. More information about the program and current efforts to improve will be forthcoming. Later this year –summer or early fall, Rich McChesney will assume his new position as Manager of Projects. I am completely confident that Rich will be extremely successful in this new role and that everyone will be as supportive and cooperative with him as you are with me. Rich and I meet every week we are able to plan for the turnover of the department to him. Welcome aboard to Ryan Najimian, Field Engineer, who joined us in March and has been assigned to the Valero Flue Gas Scrubber Project. Many of you met Ryan when he worked closely with PMI on the Air Liquide Hydro-gen Plant with Marelich Mechanical, our sub on the project. Also joining the Valero FGS team early this year is Kathy Bache, Document Control. Over the last few months we have rounded out our project team for the Los Angeles County Sanitation District Re-power Project. Welcome back to Brent Walsh, Field Engineer. PMI also welcomes, Christian Surrett, Project Engineer, Matthew Beyeler, Scheduler, and Essence Randolph, Clerk, Timekeeper. After some months of planning at the LA Office, our team will be mobilizing soon to begin a year of construction. Soon we will be welcoming back our college interns for the summer. Brett Fortney (Chico State CM Major) will be

returning and spending the summer in the Pittsburg Estimating Department. Francisco Rivera (Chico State CM

Major) will return to the LA area, this time joining the LACSD project team. We recently completed our recruiting

trips to Chico State, Cal Poly San Luis Obispo, and Sacramento State and will select at least 3 more interns to work

at either Valero, in the LA Office, or Pittsburg and Sacramento Offices – where ever they can help and learn the

most.

Rick Carpenter VP Operations

Pittsburg

NEWS FROM THE PM DEPARTMENT

PMI 2010 ANNUAL SKI TRIP On February 27, 2010 PMI’s 7th Annual Ski Trip was held at Squaw Valley in South Lake Tahoe. Fun was had by all!!

Back Row: Andy Hosler, Jon Hosler, Nick Frazier, Aaron Robertson,

Mike Teague, Rick Carpenter, Bill Martz

Middle Row: Dimitri Hrovat, Rick Carpenter, Jr., Jeff Rosellini

Front Row: Rich McChesney and Kevin Parker

From left to right: Jeff Rosellini, Jon Hosler, Bill Martz, Nick Frazier,

Mike Teague, Aaron Robertson, and Rich McChesney

4. The PMI W

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ne 2010

SAFETY

OVER SIX MILLION MAN-HOURS

Reaching our milestones of 5,000,000 and 6,000,000 man-hours without a lost time injury is truly a remarkable achievement. We couldn't have done it without each and every project manager, clerk, supervisor, journeyman, apprentice, administrator and every other position that makes up our PMI Project Teams. Thanks for making PMI shine! And keep up the good work, as of April 30, 2010 man-hours without a lost time injury were over 7,000,000.

FOCUS on ZERO and remember:

ZERO ACCIDENT PLAN (ZAP) – ONE DAY AT A TIME ZERO Injuries is a concept that involves you the employee and one simple task:

Work One Day at a Time Injury Free for an extended period. At PMI this is not just a good idea, but the way we work – EVERYDAY!

Congrats to everyone who helped achieve PMI’s first quarter without an OSHA Recordable Injury!

The $500.00 each winners were:

Keep your focus on ZERO and let’s achieve the second quarter OSHA Recordable Free for the $10,000 Raffle.

(20 winners @ $500.00)

David Hanson Emilio Rivera Jr. Dennis Bankston Vincente Garcia

Dan Campos

Juan Blas Gustavo Jimenez Jimmie Colden Samarn Dypha Paul Guerrieri

ROADROADROAD TO ZEROTO ZEROTO ZERO

2010 SAFETY SLOGAN OF THE YEAR

2010Year-To-Date Safety Statistics (Statistics through 04/30/2010)

Total Recordable Injury Rate (TRIR) 0 Total Lost Time Rate 0

Total Restricted Duty Rate 0

Total Man-Hours 556,481

Total Recordable Injuries 0

A HUGE congratulations is in order to those working out at the Valero (Benicia refinery). They received the Safe Contractor of the Year Award a huge step in the right direction for not just how we see our selves as a safe contrac-tor, but the perception of how other view PMI as well! Another award to add to our resume that shows PMI is the go to contractor!! 100% PMI VALERO BENICIA TEAM

Steve Quilala Supervisor @Tesoro

SAFETY PAYS IN MANY WAYS …..

Safe Contractor Safe Contractor Safe Contractor of the Year of the Year of the Year AwardAwardAward

PMI

Congratulations goes out to Paul Steele, PMI Mill-wright @ Dow Chem. in recognition for his devel-opment of the Safety Plan template for removal and replacement of X-102. His active and detailed par-ticipation will be incorporated into a procedure for removal & replacement of X-102.

500,000 Man Hours Without A Lost Time Injury!

A congratulations is in order to Wes Cowart, his safety team, all the employees working so hard and safe on this project and let’s not forget the unprecedented support from the management and supervision on the Valero FGS/Site Clearing and Butamer projects. Just recently they have accomplished 500,000 man hours without a recordable injury which is a PMI record for a single project. To wrap it up they have achieved contractor of the month multiple times and ultimately receiv-ing Safe Contractor of the Year! Way to go Valero team 100%.

Chris Moulden Corporate Safety Manager

Pittsburg

JOB WELL DONE!!!

gent. We have proven we can get things like this done. We are all immediately empowered to pursue continuous improve-ment! Consult your supervisor if you need assistance with formulat-ing or implementing your solution. "No ground is too sacred, no im-provement is too small." Project Managers, you will see "PMI Way - Continuous improve-ment" on the QPMM agenda from now on. We will continue to talk about this in our meetings and de-velop new ideas. I suggest you add this agenda item to your Weekly Project Staff Meetings. It will be added to the Area Office Staff Meeting Agendas. It is now an item on the monthly Corporate Manag-ers Meeting Agenda. Not only are we getting started on the process, we are looking to identify barriers and challenges to making this work. I will be looking for feedback from you all about this.

All improvement measures imple-mented will be reviewed by Don and considered for individual in-centive awards - for both employee and supervisor! In order to be re-viewed by Don, we need you to jot down some simple information for him. For any improvement we make, note the following: • the Problem • the Solution • the Employee creating the So-

lution • that Employees Supervisor Send this information to your su-pervisor and they will forward it to Don. Thanks for your support and in-volvement.

Rick Carpenter VP Operations

Pittsburg

A Simple Start to Enhancing Our Company Culture - and Success! All Department Managers have been directed to implement a sim-ple Kaizen principle - "small, incre-mental improvements on a continu-ing basis," within their depart-ments. We are steering away from the Kaizen label, we believe this to be an enhancement or addition to the "PMI Way". This is aimed at creating an atmosphere where con-tinuous improvement is part of our company culture and core values. This will take time, and that's OK. In 2000 we embarked on changing our safety culture company wide. It took a few years but now we are a recognized industry leader in safety culture and performance! That alone proves we are able to create positive changes to our company culture and achieve exceptional re-sults. We must be patient, yet dili-

PMI WAY IMPROVEMENT SUGGESTIONS Many thanks to those employees and their supervisors who submitted ideas that could improve PMI’s culture and contribute to our continued success! Brian Walsh Monika Keller Steve Kraak Dennis Pearl John Walek Joe Mackle Rick Carpenter Anthony Rodriguez Andy Hosler Chris Chappelle Frank Ures Jim Celli Mike Teague Char Diaz Lonnie Quick Danny Campost Daryl Cram Bob Richards

Successful Tesoro Flare Installation and Tie In PMI recently completed

the Tesoro 50 Unit Flare

Project. The 300’ tall flare

was assembled and

dressed out on the

ground. It was erected in

three sections working

round the clock and ac-

complished on schedule.

Over 200 tie-ins were

completed during the 50

Unit Turnaround. Start

up was leak free.

Congratulations to

Supervisor Bob Bembenek and the crew for another safe

and productive project.

Joe Mackle

Project Manager

Pittsburg

In Loving Memory of Larry KraakIn Loving Memory of Larry KraakIn Loving Memory of Larry KraakIn Loving Memory of Larry Kraak CoCoCoCo----worker, Family Man,, Friend...worker, Family Man,, Friend...worker, Family Man,, Friend...worker, Family Man,, Friend...

Recognizing the Gift The PMI Family was rocked by the news of Larry Kraak’s tragic acci-dent. Those of us who knew Larry appreciated his upbeat and gentle personality, his inquisitive nature, and his knowledge and reliability. We also know that Larry would expect we learn something from our experiences, including his un-timely call to home. As I consider that, I can’t help but think that life can be all too fleeting, that nothing is guaranteed except our own jour-ney home, and that we must take the time, even make the time, to embrace and realize what is pre-cious in our lives. We tend to hurry through our days, hurry to work, hurry to finish the day, hurry home, hurry to squeeze as much into our “down” time as possible. Many times we fail to slow down and rec-ognize and appreciate the things that are most important to us. So as I was flying to Los Angeles this week, after hurrying to and through the airport, I thought of Larry. I thought about all that was said about Larry at his service.

Clearly he knew what was impor-tant to him, how to prioritize his time to pay attention to what was precious to him. And I immediately thought of what is important in my life. And how we all need to slow down and think about those things and take the time to fully enjoy and take in those experiences that are precious and help define our happi-ness and who we are. There are many things that qualify for such attention. Whether it is spending time with family and loved ones, being outside doing the things we enjoy, the satisfaction of contribut-ing to the success of a great organi-zation, the gratification of having a positive influence on others, or just feeling fortunate to be free to pur-sue our own passions. It is abso-lutely essential to recognize what is important to you, and prioritize to allow your indulgence in what is precious and important. Don’t hurry through such times, take in every special moment of those ex-periences. And remember and thank Larry for reminding us the importance of recognizing what is precious in our lives and making

sure we spend all the time neces-sary on ourselves and our loved ones. I remember that Larry was a bit slow at first to embrace the new safety culture and approach PMI adopted early in this first decade of 2000. It took a while for him to embrace our new approach, seem-ingly believing that we should leave things as they are and not allow safety to “slow down productivity”. Over time, Larry changed his atti-tude about that and embraced our core safety values. It just may have been because he recognized that in doing so, it was his best opportu-nity to return home safely each day to those people and those things most precious to him. Do you think that doing the right things and working safely every minute, every hour, every day, one day at a time is your best chance to con-tinue to pursue what is most pre-cious to you? I suggest it is, and I suggest it is a very positive way to remember and honor Larry and his life.

Rick Carpenter VP Operations

Pittsburg

TTTHEHEHE SCOOPSCOOPSCOOP 200920092009---201020102010

Brynn Erin Gugliemo 8lbs 13oz, 18 1/4in.

On January 8, 2010 Larry Allen (IT Manager, Pitts-burg) and wife Cynthia wel-comed their sec-ond baby boy to the family!

On February 18, 2010, Katherine McCauley, daughter of Steve Marra (Project Man-ager, Sacra-mento) gave birth to an ador-able baby girl! Congratula-tions!!

On March 5, 2010, Bryan Gugliemo (Field Engineer, Pittsburg) and wife Missy welcomed another baby girl, Brynn Erin, into their family!

On May 9, 2010, Bran-don Schil-ling (Scheduler / Project En-gineer, Pitts-burg) and wife Andrea welcomed a baby boy,

Luke Ayden Scott, to their family!

Kevin Parker

(Safety Manager, Pittsburg), Dimitri Hrovat (Controller, Pitts-burg) and Andy Hosler (Chief Es-timator, Pittsburg), along with 1,000 other bicyclists, rode in the 2009 Mt. Diablo Challenge, 11 miles, gaining 3,249 feet of eleva-tion in support of the Save Mount Diablo charity.

Tiffany Martz, daughter of Bill (Estimator, Sacramento) and Stephanie Martz, won the 3-meter springboard title with 240.60 points during the first night of competi-tion at the 2010 PCSC Champion-ships, which took place at the Bel-mont Plaza Olympic Pool in Long Beach, CA. Martz (Folsom, Calif./Folsom HS), last year's conference champion on 1-meter, was one of three Pepperdine finalists.

ACHIEVMENTS

From left to right: Kevin Parker, Dimitri Hrovat & Andy Hosler

Tiffany Martz

Wesley Cowart (Site Safety Man-ger-Valero, Pittsburg) received the Contractor of the Month Award for November 2009. Way to go, Wes!

On Novem-ber 27,

2009, Andy Hosler (Chief Estima-tor, Pittsburg) and wife, Krista, celebrated their 5 year wedding an-niversary. Congratulations you two!

As of December 1, 2009, Kevin Parker (Safety Manager, Pitts-burg) will have been with PMI for

10 years!!! Congratulations, Kevin!

On Septem-ber 13,

2009, Johnny Eseltine (Pipefitter Journeyman, Pittsburg) and wife Isabelle Colla welcomed their baby boy, Domi-nic Jack to their family!

Wesley Cowart

ANNIVERSARIES

BIRTHS

Dominic Jack Eseltine, 8lbs 6oz.

Gianna Nikole McCauley 7lbs, 8oz, 20in.

Luke Ayden Scott Schilling 8lbs .4oz., 20.5 in.

Jaxon Allen

9.5lbs, 22in.

Corporate Office 701 Willow Pass Road, Suite 2 P.O. Box 1516 Pittsburg, CA 94565-0151 Phone: 925.432.4080 Fax: 925.432.4141 www.perfmech.com

PERFORMANCE MECHANICAL , INC . Sacramento Office 8670 Younger Creek Drive, Suite 101 Sacramento, CA 95823 Phone: 916.421.4087

Los Angeles Office 17925 S. Broadway Gardena, CA 90248 Phone: 310.327.3205

9 . The PMI W

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The PMI Way

The PMI Way is published for Performance Mechanical Inc.

employees. Please submit ideas or comments to Lauren

Gugliemo at (925) 432-4080 ext. 3181.

Lauren Gugliemo...lgugliemo@perfmech.com

Holiday Events of 2009 GIVING BACK

Street Outreach, (a non-profit organi-zation) would like to thank P.M.I. and their employees for donating to our 2009 Christmas Party for the needy and homeless that was held on 12/5/09 at the Contra Costa County Fairgrounds, Antioch, CA. We fed over 900 people from the East County and gave out over 650 gifts to children ages 0-12. Due to all the sup-port we had from businesses, churches and individuals, you all made it possi-ble.

Doris Otero QC Admin Pittsburg

PMI ANNUAL HOLIDAY PARTY On December 19, 2009, PMI held it’s annual Holiday Party at the Hyatt Regency in Sacramento,

CA. Over 150 employees and their guests enjoyed a night of eat-ing, drinking and dancing. It was a great event and fun was had by all!