BuildersOutlookIssue10.2013.pdf

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Builders utlook

www.elpasobuilders.com www.epbuilders.org

2013

issue 10

With home prices and householdformations rising and householdbalance sheets healing, the ongoinghousing recovery is expected to gainmomentum next year even as severalchallenges remain, according toeconomists who participated inyesterdays National Association ofHome Builders (NAHB) Fall 2013Construction Forecast Webinar.

The cards are in play for a decentand fairly strong recovery in 2014 andparticularly in 2015, said NAHB Chief

Economist David Crowe. From thestandpoint of GDP growth, housing hasbeen a plus, growing at two, three andfour times the rate of the rest of theeconomy in recent quarters.

Helping to spur the housing reboundwas a double-digit increase in homeprices over the past year, driven in partby tight inventories of new and existinghomes for sale and gradual gains inemployment.

We expect to see price increasesmoderate in the next few years as wesee additional inventory on the marketand investors back away as thebargains disappear, said Crowe.

Another bright spot is rising household

formations that were delayed during thedownturn as college graduates andyoung professionals were forced tomove back in with their parents ordouble up as roommates. At the heightof the housing boom, the U.S. wasproducing 1.4 million additionalhouseholds every year. That figureplunged to 500,000 during the depth ofthe recession and today is now back upto 700,000.

Meanwhile, households across thenation have been increasing theirsavings and shedding debt. Theyvecorrected a lot of excesses and feelmore comfortable about movingforward, Crowe said, noting that the

University of Michigan ConsumerSentiment Index shows that thepercentage of consumers who believethat now is a good time to buy a houseis back up to levels last seen near thehousing boom.

However, Crowe cited severalheadwinds that are impeding therecovery.

Credit conditions are much tighternow, builders are increasingly facinglabor shortages, lot supplies are tight,building material prices are rising, and

inaccurate appraisals are hurting homesales he said.

You cant charge more than you canget an appraisal for, Crowe added.Even though we are seeing price

increases in labor, land and materials,36 percent of builder recently said theyhad lost at least one sale overappraisals coming in below the cost ofproduction.

A Solid OutlookNAHB is forecasting 924,000 total

housing starts in 2013, up 18 percentfrom 783,000 units last year.

Single-family production is expectedto rise 17 percent this year to 629,000units, jump an additional 31 percent nextyear to 826,000 and surpass the 1million mark in 2015.

NAHB is projecting that multifamilystarts will increase 20 percent in 2013 to296,000 units and rise an additional 10percent to 326,000 units next year,which Crowe characterized as a normallevel of multifamily production.

Meanwhile, residential remodelinghas returned to previously normal levelsof the early 2000s and remodelingactivity is expected to register a modestgain this year over 2012.

Our Remodeling Market Index hasbeen above 50 for three of the last fourquarters, indicating that remodelers feelthings are going better, said Crowe.Remodeling did not fall as much, so itdoes not have as much ground to makeup.

Dodging a Bullet

Regarding the uncertaintiesemanating out of Washington over thegovernment shutdown and theimpending Oct. 17 deadline when thegovernment will run out of cash to payits bills, Mark Zandi, chief economist atMoodys Analytics, expressed optimismthat Congress will move quickly toresolve these critical issues.

I truly anticipate that lawmakers willget it together, but that is definitely achallenge to my economic outlook, saidZandi. If policymakers cant get it

together by Oct. 17, were toast, and Ithink we are going into recession.

Assuming the government meetsthese challenges, Zandi cited threereasons for optimism moving forward.

First, the fiscal drag that is weighingheavily on the economy in the form oftax increases and government spendingcuts that are now being implementedwill continue to fade in the coming years.This fiscal drag will shave 1.5 percent offof GDP growth this year, about 0.7percent next year and gradually fall tozero by 2016, he said.

Second, Zandi noted that the privateeconomy has done a marvelous job ofreducing leverage and getting theirbalance sheets in order. Americancompanies are in very good shape andthey will do well going forward, withcontinued strong export growth.

That will be a strong source ofeconomic growth for a long time tocome.

Finally, Zandi said that demographicsmake a compelling argument for astrengthening housing market.

In the current housing market, supplyis running around 950,000 annual units,he said. In a normal economy, weshould be producing 1.7 million units.Thats a big difference. Weve alreadymade a lot of progress in working offexcess inventory. We wont get housingconstruction up to 1.7 million quickly.The big problem in the next five yearswont be too much housing, but too littlehousing.

All Markets Are LocalLooking beneath the nationalnumbers, Robert Denk, NAHBsassistant vice president for forecastingand analysis, noted a range ofconditions across the country anddifferences among the states in theamount of distress suffered during therecession and the headway that is beingmade in recovery.

Housing nationwide bottomed out atan average of 27 percent of normalproduction in early 2009.

The hardest hit states whereproduction soared to unsustainablelevels during the boom years --California, Nevada, Arizona and Florida-- bottomed out at 10 percent to 20

percent of normal when the housingbubble burst. In sharp contrast, betterstates that did not experience a hugeproduction run up during the boomdeclined to 50 percent of normalproduction.

Weve now gotten past the pointwhere we are digging out of holes andrepairing the carnage of the housingmarkets, said Denk. Its no longerabout the boom and the bust. Now itsabout the underlying [state and regional]economies and how that is supportingthe housing recovery.

For example, while Texas and Floridahave roughly the same number ofmortgages, Florida had nearly five timesas many foreclosures during the heightof the downturn and today has less thandouble.

Now that housing has entered a newstage in the healing process, localeconomic conditions are dictating thepace of recovery.

Thats why the bubble states are nolonger in the bottom tier and havemoved ahead of the industrial Midwest,he said.

The gradual and steady housingrecovery now underway across the landwill bring nationwide housing starts to 71percent of normal by the fourth quarterof next year and 93 percent of normal by

the end of 2015, Denk said.Leading the way will be oil and gasproducing states Texas, Oklahoma,North Dakota, Louisiana, Wyoming andMontana; and Iowa, supported byagricultural commodities.

In another way of looking at the longroad back to normal, by the end of 2015the top 20 percent of states will be backto normal production levels, comparedto the bottom 20 percent, which will stillbe below 84 percent.

HousingRecoveryPicks UpSteam DespitePersistentHeadwinds


2/16

2 Builders Outlook 2013 issue 10

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3/16

Presidents Message |

El Paso Disposal

772-7495

32013 issue 10 Builders Outlook

Edmundo

Dena

President,El Paso Associationof Builders

Showroom:2131 Missouri

915 533 6045 fax 533 6096

Thomas R. Brown, Owner

The GEICO commercial with the camel asks what day is it? The

answer is hump-day, what we call mid-week or Wednesday. Well my

friends, my presidencys hump day was just a short few months ago

and now I see the end of the year coming closer and closer. We have

accomplished quite a bit during my term thanks to dedicated team that

Ive been lucky to surround myself with. Two months to go. Sounds

like around the corner but we still have a lot to do.

Both Ray and I along with Randy Bowling, Greg Bowling and Frank

Torres will be in Austin for Texas Builders meetings in November, right

before Thanksgiving. Itll be my final official visit on behalf of the

EPAB and Im excited to go. Well have the election of officers andboard at our November 12 meeting here in El Paso and well welcome

a new slate of officers at our installation in December. So while I think

about all those things I want to remind you that we still have work to do.

Politics, regulations and just getting through the mess we see from

Washington affects us 24/7. As President Ive gotten close enough to

the action to know how important this association is and how relevant it

has become. When you have coffee with your vendors or other

builders ask them to join. We need them now more than ever, and so

do you.


4/16

It has been a little more than 100

days since the new Mayor and CityReps took office. So far the perceptionof the public seems to be positive witha minor hiccup on the city budget andraising of city taxes. While the taxeswere relatively small ($28 per

year/$100,000) it was made clear thatraising taxes does not sit well withanyone right now.

For the newcomers (Mayor, LillyLimon, and Larry Romero) who were

pushed into budget reviews the lessonsare harsh but lessons they will useevery year they are on council. Nowthat the honeymoon is over the realityof the office is starting to settle in andso far it seems that the newbies are

adjusting. We will see where they drawsome lines in the coming months asissues surrounding the massive costsof moving city offices starts to beclearer and the search for a new CityManager begins.

Joyce Wilson announced that shewill be leaving the City Managers postwhen her contract expires in

September of 2014. Thats actually a

good thing for the city as terminationwould have cost several hundreds ofthousands of dollars payout to Ms.Wilson, so by her resigning orcompleting her contract the onlyamount owed to her will be her

contracted pension of $60,000 a yearfor life. (I need to find out who heragent is). One thing is certain; ourversion of the Iron Lady has done agood job transitioning the city from

strong mayor to city manager type ofcontrol. My perception is that while notall of her moves have been good for usI would challenge anyone to have donebetter given who she had to work withon City Council and in the Mayors

seat. Ms. Wilson was directed by self-serving interests and that put some realpressure on her since her positionreports to City Council. I would ask thatas you review her job you rememberwho she answered to. We will work

with the new council and Mayor toensure that the next City Managerunderstands the importance of a strong

new home construction industry in El

Paso. We will be vocal in our choiceand we will serve notice to that.

The last quarter of the year is uponus and soon we will have a new sittingPresident and Board of Directors. Iwould like to thank all of those

members who have agreed to lead thisassociation. It is not a task that is easyand one that carries risk by the merefact that the Board is the responsibleparty who puts their neck on the line for

the association. Our leaders are goodleaders and fortunately we have goodpeople to choose from. At theNovember board meeting the 2014Executive Officers and Board will beelected and on December 13 those

same members will be installed to takeover the reins on January 1. What anexciting time for the association.

Id also like to thank the followingmembers for their service on theCapital Improvements Advisory

Committee for impact fees, workingwith PSB and other city agencies.Bobby Bowling, IV, Mark Dyer, Sal

Masoud and I have been on this board

since 2008. Bobby and I will be termedout this month along with a couple ofother appointees. Bobby served aschairman and frankly was the oneperson we all turned to with questionson the state law governing this

committee. He knows his stuff andproved once again that involvement isthe key to understanding and to beingon top of issues dealing with the law.He is one smart guy and every builder,

developer and vendor owes Bobby areally big round of thank yous for hisunselfish job on the committee. Welldone Bobby.

Finally Id like to say thanks to all ofthe dozens of members who continue

to make this year a very productiveyear for the association. We still haveNovember and December but if itwasnt done by now wed be left in thedust. Thank you again, see you at theHalloween bowling event and the

upcoming Pro-am golf tournament.

Perspective

Ray Adauto,

ExecutiveVice PresidentEPAB


First 100 days of city government, search for new manager begins


5/16


NAHB Estimates Sept.Housing Starts willApproach 900,000 UnitsFrom NAHB

Builder confidence in the market for newly

built, single-family homes fell two points inOctober from a downwardly revised reading in

the previous month to a level of 55 on theNational Association of Home Builders/WellsFargo Housing Market Index (HMI) released

in October.Builder optimism remains above 50 and we

are still seeing signs of pent-up demand inmany markets across the country, said NAHBChairman Rick Judson, a home builder fromCharlotte, N.C. This slight dip in builder

sentiment is the result of continuing challengesin the marketplace with regard to the cost andavailability of labor and lots and uncertainty inWashington

A spike in mortgage interest rates along

with the paralysis in Washington that led to thegovernment shutdown and uncertaintyregarding the nations debt limit have causedbuilders and consumers to take pause, said

NAHB Chief Economist David Crowe.However, interest rates remain near historic

lows and we dont expect the level of rates to

have a major impact on sales and starts goingforward. Once this government impasse isresolved, we expect builder and consumeroptimism will bounce back.

Derived from a monthly survey that NAHBhas been conducting for 25 years, theNAHB/Wells Fargo Housing Market Indexgauges builder perceptions of current single-family home sales and sales expectations forthe next six months as good, fair or poor.

The survey also asks builders to rate traffic ofprospective buyers as high to very high,average or low to very low. Scores fromeach component are then used to calculate aseasonally adjusted index where any number

over 50 indicates that more builders viewconditions as good than poor.

All of the HMIs three components each felltwo points in October. The component gaugingcurrent sales conditions registered 58, whilethe component gauging sales expectations in

the next six months posted a reading of 62 andthe component gauging traffic of prospectivebuyers was 44.

Looking at the three-month movingaverages for regional HMI scores, the South

held steady at 56, the West declined a single

point to 60 and the Northeast fell three pointsto 38. The Midwest posted a one-point gain to

64.NAHB Estimates Housing Starts Approach

900,000 Units in September** With the partial shutdown of the federal

government preventing the U.S. CensusBureau from releasing a housing startsestimate for September, NAHB has preparedits own.

NAHB estimates that the seasonallyadjusted annual rate of construction for single-

family homes was between 620,000 and630,000 units in September.

NAHB estimates that the pace ofconstruction of multifamily units was anadditional 255,000 to 270,000, bringing the

anticipated pace of total housing starts inSeptember to between 875,000 and 900,000units.

The NAHB estimate of 875,000 to 900,000total housing starts is based on continuing

improvement in single-family starts andongoing volatility in multifamily construction,said Crowe.

Single-family starts dipped in July butrebounded in August, and we expectcontinued strength in September, Crowe

added. The Fed meeting in mid-September

provided additional relief to builders andbuyers that interest rates would remain near

historic lows for the immediate future,encouraging consumers back into the housingmarket.

Meanwhile, multifamily starts have been

unusually volatile since the beginning of theyear, swinging between 250,000 and 400,000units from month-to-month. We expect somebounce back from the August pace of 263,000as multifamily starts continue to trend around300,000 units.

New Index Shows HousingMarkets Back to Normal in52 Metros

Housing markets in 52 out of theapproximately 350 metro areas nationwidehave now returned to or exceeded their pre-recessionary levels of activity, according to thenewly minted National Association of Home

Builders/First American Leading MarketsIndex (LMI), released today. The indexsnationwide score of .85 indicates that, basedon current permits, prices and employmentdata, the nationwide housing market is running

at 85 percent of normal activity.Baton Rouge, La., tops the list of major

metros on the LMI, with a score of 1.41 or 41percent better than its last normal market level.Other major metros at the top of the list includeHonolulu, Oklahoma City, Austin and Houston,

Texas, as well as Harrisburg, Pa. all ofwhose LMI scores indicate that their housingmarkets now exceed previous norms.

Looking at smaller metros, both Odessaand Midland, Texas, boast LMI scores of 2.0 or

better, meaning that their housing markets arenow at double their strength prior to therecession. Also at the top of the list of smallermetros are Casper, Wyo.; Bismarck, N.D.; andFlorence, Ala., respectively.

This index helps illustrate how far the

U.S. housing recovery has come, and alsohow much further it has to go as we continueto face some significant headwinds in terms ofcredit availability, rising costs for lots and labor,and uncertainties regarding Washington

policymaking, said NAHB Chairman RickJudson, a home builder from Charlotte, N.C.

The LMI shifts the focus from identifyingmarkets that have recently begun to recover,which was the aim of a previous gauge knownas the Improving Markets Index, to identifying

those areas that are now approaching andexceeding their previous normal levels ofactivity. More than 350 metro areas are scoredby taking their average permit, price andemployment numbers for the past 12 months

and dividing each by their annual average overthe last period of normal growth. For single-family permits and home prices, 2000-2003 isused as the last normal period, and for

employment, 2007 is the base comparison.The three components are then averaged to

provide an overall score for each market; anational score is calculated based on nationalmeasures of the three metrics. An index valueabove one indicates that a market hasadvanced beyond its previous normal level of

economic activity.Smaller metros are leading the way to a

housing recovery, accounting for 43 of the top50 markets on the current LMI, observedNAHB Chief Economist David Crowe. This isvery much in keeping with the results of our

previous index for improving markets, and isan indication of the extent to which localeconomic conditions dictate the strength ofindividual housing markets.

The housing markets of 118 metros scored

by the LMI this month show activity levels of atleast 90 percent of their previous norms avery encouraging sign of things to come, saidKurt Pfotenhauer, vice chairman of FirstAmerican Title Insurance Co., which co-sponsors the LMI report.

Editors Note: In calculating the LMI, NAHButilizes employment growth data from theBureau of Labor Statistics, house priceappreciation data from Freddie Mac andsingle-family housing permit growth from the

U.S. Census Bureau. The LMI is published onthe fourth working day of each month, unlessthat day falls on a Friday -- in which case, it isreleased on the following Monday.

Industry News


6/16



7/16

72013 ISSUE 9 Builders Outlook

Builders utlook on the scene |

The October general meetingfeatured guest speaker GeraldCichon, CEO of the El PasoHousing Authority. Mr. Cichongave the assembled audiencesome insights into why and how the

EPHA operates and the challengesit faces. Over 60 people attendedthe meeting that was held at the ElPaso Club. Special recognitionwas given to Cindy Bilbe, Presidentof Stewart Title El Paso, who wasrecognized by Junior AchievementEl Paso as one of the topProfessionals in El Paso.Congratulations to Cindy from theEPAB.

of Texas

TM

+

General Meeting


8/16

el paso development news

CRRMA Readiesfor Opening ofToll Lanes

Drivers Can UseBorder Highway Lanesin December

Sun Bowl Drive Project Moves Into Full GearConstruction Will Last Through July 2014

The managed toll lane will bethe innermost lane in each direc-tion. Rates per mile will varybased on congestion and the

time of day. (CRRMA

After years of construction, El Paso driv-ers will get to choose whether or not to usemanaged toll lanes on the Cesar ChavezBorder Highway in December when con-struction is expected to be complete. Andnow the Camino Real Regional MobilityAuthority (CRRMA) is preparing to educatethe public about how the toll program willwork.

The CRRMA board will review a presen-tation on the Cesar Chavez ManagedLanes Project at its meeting this week thatwill include details on the toll collectionprocess and the marketing outreach thatwill roll out in the coming months.

Drivers on the nine mile stretch of theBorder Highway between US-54 and theZaragoza Port of Entry will still have twofree lanes to use, while the additional toll

lane will be the left-most lane in each direc-tion.

Pricing for use of the toll lanes will varybased on the time of day, starting at a baserate of $0.10 per mile. The minimum toll forany trip will be $0.40. Large trucks andtrailers will be unable to use the toll lanes,while emergency and public transit vehicleswill be exempt from tolls.

There will be two tolling points in eachdirection, between Midway Drive andYarbrough Drive, and between Yarbroughand Padres Drive. Entrance and exit pointswill favor drivers taking longer trips withonly two exits from the toll lane for east-bound travelers, one before YarbroughDrive and another before the ZaragozaPort of Entry.

The Border Highway has been

widened to accommodate the new tolllanes. There is still a 10-foot inside-shoul-der in each direction. The toll lanes will beseparated from the free main lanes by atwo foot buffer.

Collection of tolls will be an electronicprocess with no actual payment infrastruc-ture on the highway. Sensors will scanvehicles for a toll tag for those that are reg-istered with a toll service and bill the driveraccordingly. Cameras will be used to cap-ture license plate information for non-regis-tered drivers who decide to use the tolllanes. A bill will be sent to the address ofthe vehicles registered owner.

The CRRMA expects to spread thenews about the new toll lanes via storieson various news stations, broadcast adver-tising on television, radio, and billboards,

and through grass roots efforts involvingelected officials and community meetings.

At least two other managed lane projectsare in the works. The Americas ManagedLanes Project will continue the CesarChavez toll lanes at the eastern terminusfrom the Zaragoza Port of Entry north toBob Hope Drive on El Pasos East Side.And the massive Border Highway Westproject will create a brand new tolledexpressway from Downtown El Paso to thecitys West Side.

The CRRMA will discuss the presenta-tion at its October 9, 2013 meeting. Moreinformation can be found atwww.crrma.org.

Work to widen Sun Bowl Drive into afour-lane thoroughfare at the University ofTexas at El Paso (UTEP) is in full swing ascrews have put protective barriers in placeto protect passing vehicles from debris.Construction workers are chipping awayat the rocky mountain on the westernshoulders of Sun Bowl Drive according tothe schools On the Move website(www.onthemove.utep.edu).

The $4.8 million project will widen theroadway, construct five-foot sidewalks oneach side, and install enhanced lightingalong a half-mile stretch of Sun Bowl. The

outside lane in each direction will also bewider than usual to allow for bicycle traffic.A roundabout will help control traffic at theroadways intersection with Glory Road.

Youve all undoubtedly noticed that thewidth of Sun Bowl Drive varies from twolanes to four, and that the remaining two-lane stretch creates a bottleneck and asafety risk, UTEP President DianaNatalicio stated during groundbreaking forthe project on September 16, 2013, point-ing out the issues with traffic caused by thereduced lanes.

The schools Campus Transformation

may add to Sun Bowl Drives importance inhandling traffic traveling around the cam-pus; one of the Transformations goals is toremove vehicular traffic from the innercampus.

Sun Bowl Drive will remain open duringconstruction, but officials urge caution dueto shifted, temporary lanes. Drivers shouldexpect delays.

Officials expect the project to last tenmonths, which means completion in July2014.

The Paul L. Foster School of Medicinecampus will get a major new addition by2015. Groundbreaking for the new GayleGreve Hunt School of Nursing buildingtook place last month.

Construction crews are now laying thefoundation for the 34,000 square footfacility which will be located on NorthConcepcion Street across from the Schoolof Medicines Medical Education Building.The building will include 12,000 squarefeet of simulation labs, four classrooms,

and collaborative learning spaces.Currently, the Hunt School of Nursing

operates out of a temporary location at415 East Yandell Drive in Downtown ElPaso. The Medical Center of the Americas(MCA) Foundation is helping to make thenew building a reality.

The School of Nursing accepted its firstclass of students in 2011 after a $10 mil-lion donation from the Hunt FamilyFoundation helped form the school in2010. Officials hope to have 300 nursingstudents at the school within five years.There are now 116 students and 13 facul-ty members at the school.

Construction helps to add to the MCAcampus which is also working on a newTech Park which will soon start construc-

tion on a $28 million, 83,000 square footbiomedical research structure. Completionof the building is also expected in 2015.

The entire MCA campus encompasses440 acres of land in South Central ElPaso. Other anchors of the campusinclude University Medical Center, El PasoChildrens Hospital, and the Paul L. FosterSchool of Medicine. The MCAs MasterPlan envisions an integrated medicaltreatment, learning, and research campuswithin 50 years.

More information on the Gayle GreveHunt School of Nursing can be found atmcamericas.org and www.ttuhsc.edu.

Lanes on Sun Bowl Drive have been shifted as work has begun on the widening project.(www.onthemove.utep.edu)

Building Adds toSchool of MedicineCampus


9/16

Builders Outlook Issue 10.2013

Content provided byEl Paso Development Newsvisit: elpasodevnews.com

Closer Look: 2014 Unified Transportation ProgramTXDOTs Program Document Gives Snapshot of Future Projects

The Texas Department of Transportation(TXDOT) programmed hundreds of millionsof dollars earlier this year for El PasosBorder Highway West extension, a projectwhose total budget could reach $800 mil-lion. Thats according to the states latestUnified Transportation Program (UTP),approved by the Texas TransportationCommission in June.

TXDOT uses the UTP to authorize trans-portation projects for the state, but doesnot necessarily mean full present-day fund-ing is available for each individual project.Although the Border Highway West has acertain budget in the document, only $300million has been approved so far.

The nearly 1,200-page UTP includesabout 30 pages dedicated to developmentsin the El Paso District. Timeframes in thereport look forward about ten years fromthe present.

2014Projects listed for Fiscal Year 2014,

which began on September 1, 2013, arespread throughout the city and county. Thelargest listed in the document is construc-tion of FM 3880 from Alameda Avenue toInterstate 10 in southeastern El PasoCounty in Tornillo. The new $17.2 millionhighway will help take traffic to and fromthe expanded port of entry at the Mexicanborder, currently under construction.

About $11.5 million is programmed forreconstruction of streets in Downtown El

Paso. Another $5.5 million may be used tomake improvements to Pan American Driveand Winn Road near the Zaragoza Port ofEntry.

Smaller projects include purchases ofbuses for use in the County, construction ofsidewalks around town particularly alongMesa Street to compliment the Bus RapidTransit System (RTS) line, and a light-railstudy for the Paso Del Norte Port of Entry.

2015Fiscal Year 2015, which begins in

September of next year, has a longer list ofprojects than the previous year. By far, thelargest is the Border Highway West project

which could start construction next year. At$800 million, no other project is even closein budget or scale.

The $36 million Americas ManagedLanes project is scheduled for 2015 andwould create a tolled lane in each directionon Loop 375 from the Zaragoza Port ofEntry to Bob Hope Drive on the East Sideof El Paso.

Another $21 million may be used to con-struct two more direct connectors betweenI-10 and Loop 375 at the AmericasInterchange. These would be the final tworamps for the interchange; the fourth, fifth,and sixth connectors are currently underconstruction.

Also in the eastern portions of the area,$12.6 million could help widen EastlakeBoulevard from four to six lanes from I-10to Darrington Road. The state hopes theproject will ease congestion in one of thefastest growing neighborhoods in the area.

The City of El Pasos RTS corridorscould get programmed funds, with around$9.2 million for the Dyer Street Corridorand $9.7 million for the Montana AvenueCorridor in 2015. And $9.2 million may beused for reconstruction of Alameda Avenuefrom Padres Drive to Loop 375.

The Lower Valley may see other proj-ects, such as a $5.6 million project toreplace the Carolina Drive bridge off ofAlameda Avenue and a $1 million Park-N-Ride project for the Zaragoza Port of Entry.

Smaller projects include texturizing ofshoulders on various highways, construc-tion of curb ramps, and rehabilitation ofsidewalks.

2016In Fiscal Year 2016, the largest project

listed in the UTP is a new $10 million four-lane street that will continue EastlakeBoulevard southward from I-10 and con-nect it to North Loop Drive. Another $2.48million may be used to install a continuousturn middle lane on Socorro Road of which$2.15 million has been programmed.

Delta Drive in South Central El Paso willhave a bridge replaced in a $1.8 million

project. And Doniphan Road may receiveraised medians from Mesa Street to theNew Mexico state line in a $1.13 millionproject.

In other general projects, $3 million maybe allotted for highway aesthetics improve-ments on I-10, while surface streets willsee traffic signal improvements, curb rampinstallations, and re-planking at railroadcrossings.

2017-2018The UTP lists only smaller projects for

2017, then two large projects to begin in2018. The first project will add collector-dis-tributor lanes to I-10 from Executive CenterBoulevard to Mesa Street in West El Paso.

According to the UTP, the project cost is$39.4 million, of which $24 million is pro-grammed for 2018.

A related project would construct aninterchange at Mesa Park Boulevard plusfrontage roads that would connect MesaPark to Executive Center Boulevard. Theproject may cost $55 million, of which $45million is programmed in the UTP.

Mesa Park Boulevard will connect com-muters to the Aldea El Paso SmartCodedevelopment which earlier this yearreceived approval from the Camino RealRegional Mobility Authority (CRRMA) tohelp fund construction of the interchangeand frontage road project. The 2018 time-line for the project in the UTP differs some-what from the deal Aldeas developer

struck with TXDOT, which has the projectstarting in 2014.

Tentative Funding and Other ProjectsProjects for 2019 through 2023 are not

listed in the UTP, though there are associ-ated total dollar amounts for each year. Inall, the next ten fiscal years amount toabout $1.36 billion for the El Paso Districtin programmed funds.

As with any transportation plan, local-,regional-, or state-level projects may beadded or deleted from documents like theUTP. Plus local project lists are usuallylonger and more optimistic than thoseapproved at the state-level. The El Paso

Metropolitan Planning Organizations(MPO) Transportation ImprovementProgram, for instance, lists scores moreprojects than the UTP.

State transportation funds have been acontentious issue in recent legislative ses-sions, though Texas voters may give newconstruction and maintenance projects a$1.2 billion shot in the arm next year.Lawmakers approved putting the proposalon the November 2014 ballot earlier thisyear. Funds would be diverted from oil andnatural gas tax revenue that would normal-ly go into the states reserve.

The Unified Transportation Program maybe viewed at TXDOTs website,www.txdot.gov.

The University of Texas at El Paso(UTEP) began its 100-day CentennialCountdown last week with the unveilingof a large LED screen donated by GECU.The countdown clock will be displayed onthe screen, which is fashioned into aBhutanese style tower in front of theCentennial Museum.

The countdown began amid fanfare,music, dancing, and speeches at the for-mal unveiling where UTEP officials cele-brated the schools past, present, and

future.Weve achieved much over the past

99 years and we have even bigger aspi-rations for the future, stated UTEPPresident Diana Natalicio, adding, Wetake great pride in the achievements ofour alumni and share out studentsdreams for a bright future.

A new Centennial Welcome Center hasbeen added to the museum, the officialheadquarters for the CentennialCelebration. It will feature exhibits on theschools history, photographs showing thecampus throughout the years, and a chil-drens learning area.

A gift shop has also been added andwill feature limited edition CentennialWines in white and red varieties. Thewines come from the Miner Winery inNapa Valley, California. A CentenarioSalsa line will also be available and wascreated by Desert Pepper TradingCompany.

Other available Centennial collectiblesinclude t-shirts, ties, and a coaster setwith six different mandala designsinspired by medallions on campus build-ings. Visitors to the Welcome Center maypark in the Sun Bowl Parking Garage indesignated areas.

Opera BhutanUTEP officials plan a myriad of activi-

ties and announcements during the 100days leading up to the final countdownday on New Years Eve, December 31. ACentennial Blog has been created (trans-formations.utep.edu) which will includeinformation on events and activities dur-ing the celebration.

Up next for the school is homecomingweek, which started yesterday,September 29. And on October 12, UTEPsingers and musicians will perform anopera in the Kingdom of Bhutan. OperaBhutan, as it is called, is a production ofHandels Acis and Galatea which willincorporate Bhutanese dance and culturalelements.

It will be the first opera to ever be per-formed in the tiny Himalayan country.Thirty-three UTEP students, faculty, andstaff are already in the Kingdom ofBhutan for a three-week visit which willinclude the performance.

The history of UTEP and Bhutans rela-tionship goes back nearly 100 yearswhen the school used Bhutanese-influ-enced design in its first building. In 2008,Prince Jigyel Ugyen Wangchuck of theKingdom of Bhutan was a guest at UTEPduring Bhutan Days at the campus.

Campus TransformationConstruction on UTEPs Campus

Transformation project is also ongoing,and the school has installed cameras at

different locations around the futureCentennial Plaza site which show a livefeed of crews at work.

The large plaza area is part of UTEPsplan to move automobile traffic out of thecenter of campus. Several Transformationprojects will eventually create largepedestrian-friendly environments in andaround the center of the school.

Centennial Plaza should be completein August 2014, in time to host the west-ern debut of Opera Bhutan. Informationon UTEPs Centennial Celebration can befound online at centennial.utep.edu.

Funding for the final twoAmericas Interchange rampshas been programmed intothe UTP. (CRRMA)

Limited edition UTEPCentennial wines are avail-able now, created by MinerWinery of Napa Valley.

UTEP Update:CentennialCountdown Begins


10/16


This Just InThe Affordable Care Act prohibits group

health plans or group health insurers fromimposing any waiting period that exceeds 90days. (Neither plans nor insurers mustimpose any waiting period.) In March, theInternal Revenue Service, the EmployeeBenefits Security Administration, and the

Health and Human Services Departmentproposed regulations that would clarify howwaiting periods would apply to employeeswith variable hours.

A group health plan that conditionseligibility on an employee regularly workinga specified number of hours per period (orworking full-time) would be able to take areasonable period of time to determinewhether a variable-hour employee meetsthis condition. This measurement periodcan last no more than 12 months, beginningon any date between the employees startdate and the first day of the first calendarmonth following the employees start date.The measurement period will not beconsidered out of compliance with the 90-day waiting period limitation if coverage is

made effective no later than 13 months fromthe employees start date, plus the timeremaining until the first day of the nextcalendar month. Plans cannot impose awaiting period in addition to themeasurement period. For more informationon implementing the Affordable Care Act inyour workplace, please contact us.

Health InsuranceACA Spurring Interest in Self-InsuranceBetween 2000 and 2010, the percentage

of people with employer-based health plansenrolled in self-insured plans increasednearly 10 percent, according to the U.S.Agency for Healthcare Research andQuality. The Affordable Care Act (ACA)

creates new incentives for smaller employergroups to consider self-insuring.

What Is Self-Insurance?Employers providing health benefits to

employees have three basic choices: buyinga fully insured plan, self-insuring or offeringemployees a choice of fully insured and self-insured plans. With an insured plan, theemployer pays a flat per-enrollee premiumto an insurer that administers the plan andpays claims. Like an insured employer, aself-insured employer has a written plan.However, it pays for its workers claimsdirectly as incurred and retains the risk ofhigher-than-expected claims.

So Why Do Employers Self-Insure?State laws that regulate fully insured

group plans usually do not apply to self-

insured plans. And some provisions of thefederal Patient Protection and AffordableCare Act of 2010 pertain to fully insuredplans but not to self-insured plans.

Self-insurance offers a variety ofpotential advantages to employers,including:

Autonomy, control and flexibility of plandesign, including exemption from state-mandated benefit requirements; Lower administra tive costs than a

commercial carrier would charge; More timely and complete access to data

on health claims, which can helpemployers make more informed decisionsabout plan design;

Ease of altering their contract with a third-party administrator (TPA) or stop-lossinsurer without affecting employeeschoice of providers;

Improved cash flow generated by keepingfunds in-house until needed for payment of

claims; and Avoidance of state insurance premium

taxes.Once the Affordable Care Act is fully

implemented, several provisions will affectfully insured small group plans (100 or feweremployees) that will not affect self-insuredplans: Community rating will apply. Insurers willbe allowed to vary premiums only accordingto actuarial value of the plan, geographicregion, age, tobacco use and family size.Your groups health status or actual claimsexperience will not matter. Risk adjustment will begin. The ACA allows

the transfer of funds from plans withenrollees having lower than average coststo plans with employees having higher

than average costs. Plans offered to small groups must cover

essential health benefits (EHBs). TheEHBs include items and services within

ten general categories, includingprescription drug coverage and mentalhealth and substance-use-disorderservices.The EHBs will likely drive prices up for

many small group plans. And withcommunity rating and risk adjustment,healthier groups will essentially subsidizethe cost of covering less-healthy groups.

Therefore, if you have a relatively young,healthy group, you may save money by self-insuring.

Self-insurance has potentialdisadvantages, however. These include:

Financial risk o f unexpectedly largeclaims;

Regulatory compliance, which is easierwith a fully insured plan;

Loss of some discounts. Insurers andlarger employers have the clout tonegotiate discounts with health providersthat smaller employers lack.Although some self-insured employers

administer their plan, most outsource planadministration and claim processing to athird-party administrator. They can alsomitigate some of their risk by purchasing

stop-loss insurance, which will reimburse acovered employer for claims above aspecified dollar level.

Note that a stop-loss policy is a contract

between the carrier and the employer, not ahealth policy covering individual planparticipants. This means the pre-existingcondition and guaranteed renewabilityrequirements that apply to health insurersdo not apply to stop-loss insurers. Stop-lossinsurers can refuse coverage or dropcoverage if a group experiences too manyclaims.

However, the ACA will make changes thatwill allow self-insured employers to switchback to a fully insured plan at a later datewithout having to worry about an insurerrefusing to cover the group or specificindividuals. When fully implemented, theACA will not allow health insurers to: Refuse to write small group plans based

on health status. Exclude specific individuals from a small

group based on health status. Insurersmust take all comers, regardless ofhealth status.

Charge higher premiums based on thehealth status of your group or the genderof your employees. It will also limit howmuch premiums can vary based on age.In our next issue, well discuss some self-

insured plan structures and stop-lossinsurance. To discuss self-insurance optionsin more detail in the meantime, pleasecontact our office.

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of El Paso


11/16


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12/16


Builders utlook on the scene |

The Professional Womens Council held a special member-guestlunch and learn with guest speaker Michelle Cromer. Ms. Cromers

topic was Feng-Shui, the art of balance in life and in your surroundings.Ms. Cromer was brought to us by Margaret Livingston and introduced by

PWC chairwoman Lorraine Huit. This was the largest number ofattendees at this councils meeting this year.

Womens Council


13/16

Membership News

Thanks to our OCTOBER

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14/16

Probably by the time you receive this,our Bowling Outing will be done and over. Iam sure that everyone that participated will

have had a great time. We still have some

sponsorship available for our El PasoDesert Open Sun Country Pro Am at 9:00am November 13th. This is a greatopportunity to advertise as this event is asellout. Please call Margret for details.

As the year is passing by rapidly and theend is near I just want to say thank to all theAssociates that participated in our eventsthis year as it has made a big difference. Iwould also would like to thank the board forall the support and a Big Special Thanks toFrank Torres who without a doubt is theGuru of all Parade of homes.

Once again a big Thanks to everyonethat has made this a special year with twoevents to go.


Sam ShallenbergerWestern Wholesale Supply

Associates Council

Located in the heart of Downtown El Paso.

415 North Mesa 225-8200 stewart.com/el-paso

Cindy Bilbe, President

Congratulations, Cindyon your induction into theEl Paso BusinessHall of Fame!

Expert Advice

David De RegoHardware Specialities &

Glass Co., Inc.

For bathrooms, the trend in color is more."It used to be that there wasn't a lot of colorin the bathroom, so more color is definitelya newer trend. Neutral shades such ascream, beige and taupe have long beenpopular color choices for the bathroombecause they wear well and fit easily intoany design scheme. But these safe colorsare giving way to bolder palettes that createa cheerful, fun place to wake up to everymorning. While bold can be beautiful, it'snot necessarily for everyone. Colorforecasting is about reinventing the waysyou put colors together so you get a fresh,clean feeling, without abandoning the huesthat fit your personal taste.

A Touch of ColorIf you don't want color everywhere in

your bath, try adding small doses incheerful colors such as sunny yellow orfire-engine red that are inspired bychildren's bathrooms. Plastic or enamelfaucets or fanciful geometrically shapedlight fixtures are two bold solutions that cangive your bathroom a unique look.

Those who like to change colorfrequently, for example with the seasons,

should consider rotating accessories. Youcan easily add a touch of updated color an unexpected 'aha' with towels, rugsand other accessories. Try cool spa colorssuch as sapphire blue and seafoam greenfor spring, and brighter beach colors such

as flamingo pink and chartreuse forsummer. With the fall comes warmershades of brown, while winter-influencedcolors include candy apple red and maroonwith an undertone of pink.

Timeless ColorsWhile we're going to see more and more

color in the bathroom, certain timelessguidelines still apply. Most skin tones arepink or of a lighter shade tan, so if you wantwarm tones that will pick up that color usepeach, rose and light mocha colors toenhance the subtle feel.

Don't rule out those cool spa colors thesoothing blues, blue-greens, greens andblue lavenders that enable tranquility andrelaxation. Ultimately, your choice of colorsboils down to your expectations of what youwant in a room that suits your comfort leveland dcor.Whats Trending

in bathrooms


15/16

I execuTive oFFicerSednd Dna Psdnt

Accent Homes

Fank Ts v Psdnt

GMF Custom Homes

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Palo Verde Homes

Sa Shallnbg Assats cha

Western Wholesale

Fank Ays- idat Past Psdnt

Cisco Homesray Adat et v Psdnt

El Paso Association of Builders

I couNciL/commiTTeecHAirSAssats cnl

Sam Shallenberger

Bld PAc

Randy Bowling

Dst Gn Bldng cnl

Javier Ruiz

Land us cnl

Sal Masoud

Yng Dsgn Awad

John Chaney

rdls cnl

Rudy Guel

mbshp rtntn

Mike Santamaria, Greg Bowling

Fnan ctt

Edgar Montiel

Wns cnl

Lorraine Huit

I ADviSorYToTHeBoArDJ. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

I BoArDoFDirecTorSJuanita Garcia, Icon Custom Builders

Samira Gonzalez, Edwards Homes

Walter Lujan, Dawco Construction

Carlos Villalobos, Pointe HomesDon Rassette, Rassette Homes

Beverly Clevenger, Automated Division 6 Builders

Frank Spencer, Aztec Contractors

Kathy Parry, Hunt Communities

Sal Masoud, Del Rio Engineering

Robert L. Foster,

Southwest Land Development Services

Leti Navarette, Custom Dream Homes

Linda Troncoso, TR-Engineering

Lance VanDeman, Hub International

John Chaney, Passage Supply

Joe Bernal, El Paso Employee Benefits

Ken Wade, El Paso Building Materials

Ruben Orquiz, MTI Ready Mix

Kathy Carrillo, Pioneer Bank

Henry Tinajero, West Star Bank

Paul Zacour, Zacour & Associates

Chuck Gabriel, Carpets West

Ted Escobedo, Snappy Publishing

Lorraine Huit, Cardel Design

Javier Ruiz, Border Solar & Senercon

2012 Bld mb of Th Ya

Frank Arroyos

Cisco Homes

2012 Pat c Awad

Mike Santamaria

Mountain Vista Homes

2012 Assat of Th Ya

Sam Shallenberger

Western Wholesale Supply

Jhn Shatzan Awad

Hunt Companies

Hnay Lf mbs

Rudy Guel

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Psdnts

cttd t S

ePAB mssn Statnt:

The El Paso Association of Builders is a

federated professional organization representing

the home building industry, committed to

enhancing the quality of life in our community by

providing affordable homes of excellence and

value.

The El Paso Association of Builders is a

501C(6) trade organization.

2013 Builders Outlook

is published and distributed for the

El Paso Association of Builders

by Snappy Publishing

240 Thunderbird Suite C

El Paso Texas 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905

915-778-5387 Fax: 915-772-3038

Greg Bowling

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

E. H. Baeza

Hershel Stringfield

ITABSTATe DirecTorSDoug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

INATioNAL DirecTorSBobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

www.elpasobuilders.com

www.epbuilders.org

Builders utlook


16/16

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