JANUARY 2016
ECAMAGAZINE
CARB’S TRUCKREGS IN FORCE
I NS IDEINS IDE
Page 17
ECA President Sorem’s Finale
Growth Expected in 2016 Market
ECA Welcomes Chinese Delegation
Crime Prevention Pays Off
ECA EVENTECA EVENT
ecasocal.org
ECA InstallationJan. 23
Checks payable to: ECA, 2190 S. Towne Ctr. Pl, #310, Anaheim, CA 92806
Fax Reservations to 714/937-5030
Name(s):_______________________________________________________________________________
Company/Organization:__________________________________________________________________
Street:____________________________________ City/Zip:_____________________________________
Phone:_____________________________ Email:______________________________________________
__MasterCard __Visa __AmEx #____________________________________________ Exp:__________
Name on Card ___________________________________________________ CVV Code______________
Card billing address_________________________________________ Billing Zip Code______________
Signature _____________________________________________________
For FurtherInformation Call
714/937-5000or visit
www.ecasocal.org
Also presentingContractor of the Year,
Affiliate of the Year& ECA Safety Awards!
There will be no refunds given on cancellations less than 72 hours in advance. If you make reservations and do not attend, ECA is still responsible for your reservation. Anyone who makes reservations and does not attend without canceling by the above referenced date shall be billed for the full amount.
At The Langham Huntington1401 South Oak Knoll Avenue, Pasadena, California 91106
Installation of Officers
& Silent Auction
Engineering Contractors’ Association
6:00 p.m. - 7:30 p.m. Hosted Cocktail Reception & Silent Auction7:30-10:00 p.m. Dinner & Ceremony ! 10:00 p.m. Open Hosted Lounge
ECA 14th Annual Silent Auction is January 23th
before ECA’s Installation of Officers! This is your chance to
have fun shopping while supporting your Association. All proceeds from the auction go directly to the ECA’s efforts in protecting and advancing our industry’s interests both locally and in Sacramento. Plan to attend - bring a friend - and bring your cash, checkbook or credit card! We are
collecting items for the auction now! If you or your company would like to contribute an item to this very worth-
while event, please contact Shelia Voss at ECA by email at
[email protected], phone 714/937-5000, or fax 714/937-5030.
Please reserve ___ tickets at $235 #__Fish or __Beef After 12/22/15 Please reserve ___ tickets at $255 #__Fish or __Beef
Non ECA Member rate reserve ___ tickets at $265 #__Fish or __Beef
Please reserve ___ table(s) of Ten $2,205 #__Fish or __Beef
All tickets include hosted cocktail reception during the Silent Auction 6:00pm - 7:30pm, and open hosted private after party in the historic Langham Lounge 10:00pm - Midnight.
Reserve __ rooms at the rate of $215 (Must be reserved by December 24, 2015.)
Please include us as:
__Platinum Sponsor $2,500 Includes full page program ad, individual full screen video presentation listing, and signage. __Bar Sponsor $1,500 Includes ½ page program ad, video screens listing, exclusive signage in lounge as after party host. __Gold Sponsor $750 Includes ½ page program ad, individual full screen video presentation listing, and listing on signage.
__Silver Sponsor $500 Includes business card program ad, larger video presentation listing, and listing on signage.
__Bronze Sponsor $300 Includes business card program ad, video presentation listing, and listing on signage.
__Supporting Sponsor $150 Includes video presentation listing, and listing on signage.
(Must register by December 22, 2015.)
40th Annual
Saturday, January 23, 2016
Executive OfficersPresident –
Vice President – Bill SingletonSecretary – Scott Van Diest
Treasurer – Alan LudwigAffiliate Chair – Lou Rendon*
Dave Sorem
Guy Barker*Anna Carno*
Justin DuchaineauAaron Dyer*Gary Futral*
John GaviganMark Kruger
Gwen Madrid*Kevin Malloy*
Gerry McEwen*Anthony Niccoli*
Aly Proano*
Brandon PensickDan J. Peterson*Michael PrlichSteve RadaichLisa Ramey*Garrett Richardson*Tim RivardScott Salandi*Jeremy SaumElizabeth TorrezNic Waldenmayer*Andrew Waterbury*
January 2016, Vol. 52, No. 1
Directors
*Denotes Affiliate Member
Contents
ENGINEERING CONTRACTORS’ ASSOCIATION
ECA Magazine - Since 1976, your resource to news and useful information about ECA member services, contractors, manufacturers, and suppliers in southern California’s utility construction industry. Use it to help build your business future.
ECA
714/937-5000 · Fax 714/937-50302190 S. Towne Center Place, Ste. 310
Anaheim, CA 92806Email: [email protected]
www.ecasocal.org
ECA MAGAZINE (ISSN 0896-3169) serving Southern California construction, is published monthly at Anaheim, California, as the official publication of the Engineering Contractors’ Association. It is intended for the dissemination of news of Association activities as well as information to the general construction industry in such matters as labor relations, government relations, legislative direction and public relations. It is distributed throughout the 11-county Southern California area to contractors and suppliers with interests in sewer, pipeline, underground utilities, trenching, excavating and grading, tunnels, street and highway construction and related engineering construction. Mail subscription requests to ECA Magazine, 2190 S. Towne Centre Pl., Ste. 310., Anaheim, CA 92806. Subscription rates are $1 per issue or $10 per year (12 issues including Directory & Buyer’s Guide issue). There is no charge for ECA members or current advertisers. Graphic design and production by [email protected]. Lithographic printing by Seaside Printing Company, Long Beach, CA.
Engineering Contractors’ Association
MAGAZINE
E C A M A G A Z I N E J A N U A R Y 2 0 1 64
C e r r i t o s x F r e s n o xI r v i n e
P a s a d e n a xP l e a s a n t o n x R i v e r s i d e
S a c r a m e n t o x S a n D i e g o
Providing legal
services to
California’s
constructon
industry for
over 35 years.
xContracts & Bids
xConstruction Claims
xLabor & Employment
xReal Property
Thomas W. Kovacich, Partner 12800 Center Court Drive, Suite 300
Cerritos, California 90703 (562) 653-3200 x [email protected]
CommitteesAffiliate Committee
Lou Rendon, Frazer, LLP
DIG Award CommitteeAnthony Niccoli, AALRR
Safety ForumJeremy Saum, CHST, J.F. Shea Construction Inc.
Labor CommitteeScott Van Diest, Van Diest Bros.
Legal CommitteeAnna Carno, Carno Law Group
Government Affairs CommitteeAndrew Waterbury, CSBA
Membership CommitteeGary Futral, Gladding, McBean
Political Action CommitteeScott Salandi, Patriot Risk
Public Agencies CommitteeElizabeth Torrez,
MNR Construction, Inc.
Scholarship CommitteeGerry McEwen,
GMGS Insurance Services, Inc.·
John Simpson, EditorEmail: [email protected] · Ph. 562/708-4601
P.O. Box 3384, Idyllwild, CA 92549
Industry Advancement Advocate – Bill Davis
Administrative StaffExecutive Director – Wes MayOffice Manager – Shelia Voss
Administrative Assistant – Jessica Moreno
President’s MessageDave Sorem, P.E.
Mike Bubalo Construction Co., Inc.
Executive DirectionWes May, ECA Executive Director
Government Affairs
Andrew Waterbury, Chair
ECA Member News
· Chinese Delegation Visit · Upcoming Events
6
8
10
13
14
15
17
20
21
Crime Prevention Success
Industry News
Air Quality News
Safety Forum
ECA Resources
John Williams, Jr.
By Dave Sorem, P.E., ECA Presidentemail: [email protected]
President’s Message
‘Thanks’ JustDoesn't SayEnough
E C A M A G A Z I N E 6 J A N U A R Y 2 0 1 6
T
Construction Law: Construction Disputes Both Public And Private Payment Disputes - Including: Mechanics’ Liens Stop Notice Claims and Bond Claims Licensure Issues Bid Protest Issues Construction Defect Litigation Surety and Insurance Disputes
Business and Corporate Law: General Business Litigation Contract Drafting and Interpretation Business Formation
24031 El Toro Rd., Suite 210, Laguna Hills, CA 92653 www.carnoconstructionlaw.com (949) 540-0320
Carno Law Group’s Practice Focuses On The Following Areas:
ECA President Dave Sorem addressed the National Clay Pipe Institute in December, 2014, on the nation’s critical need for infra-structure improvement and maintenance.
he space allotted for the Presi-dent's Message does not leave
the necessary room to adequately address the appreciation and thank-fulness I have for the staff and volunteers who work and participate in the ECA.
During the two years of my term as president, I have had the pleasure of seeing the ECA transform from a go along to get along type of organization to one that is seeking answers and actively striving to better itself. This enthusiasm that has perme-ated the ECA has been growing for a number of years and, just like a volcano, erupted into action luckily during the time of my presi-dency.
The meet ings I participated in with the Executive Board and c o m m i t t e e s w e r e enlightening and educa-tional. The focus of the staff and volunteers was refreshing, and I sensed the ECA was on the fast track to success.
That success can be traced back to our decision as an organiza-tion to change the focus of our organization to the local level – local issues, local agen-cies, local elected officials – because, when you get down to it, that is where the work performed by our members is accom-plished.
I cannot remember when our relationships with associa-
tions, unions, agencies, and other construction-related groups have been better. Our spirit and enthusiasm have been infused into these other organizations. Those of us who participate in these joint organizations have seen the transformation of the ECA in actively trying to better the lives of the contractors not only who belong to the ECA but the construction industry itself.
Since this is my last column as president of the ECA, I want to say that I am very humbled to have helped in any way for the betterment of our members, and I want to thank all of the mem-bers and staff who have educated and supported me along the way. I have complete confidence in my replacement Bill Single-ton and the rest of the Board to carry on in the same manner that was graciously provided to me during my term as president.
Thank you again for the opportunity to serve as your presi-
dent. D
Better Relationships
Executive Direction
By Wes MayECA Executive DirectorEmail: [email protected]
E C A M A G A Z I N E 8 J A N U A R Y 2 0 1 6
Steady as She GoesFor ConstructionEconomy in 2016
e were glad to see a recent report from three of the top
construction economists in the coun-try forecasting that 2016 will be an-other year of steady growth for con-tractors.
The experts, Associated Builders and Contractors (ABC) Chief Economist Anirban Basu, Ameri-can Institute of Architects (AIA) Chief Economist Kermit Baker and National Association of Home Builders (NAHB) Chief Econ-omist David Crowe predicted continued construction industry growth in 2016 during a recent joint economic forecast web con-ference we watched.
“The nonresidential construction sector gained momentum over the last year and should continue to expand into 2016,” said ABC Chief Economist Anirban Basu. “The construction in-dustry has benefited from increased stability stemming from low materials prices and greater certainty regarding federal budget-ing and monetary policy, although a lack of appropri-ately skilled labor will remain a chal-lenge for contrac-tors. ABC predicts the nonresidential construction seg-ment will experi-ence 7 percent nominal growth in 2016.”
“Led by tremen-dous demand for energy-efficient spaces, spending on home improvements is on track to reach an all-time high by year's end,” said AIA Chief Economist Kermit Baker, Hon. AIA, Ph.D. “The office and retail sectors are expected to lead the commer-cial real estate market in 2016 with near double-digit increases in construction spending expected.”
“We expect the residential construction sector to continue its gradual recovery as we head into 2016,” said NAHB Chief Econ-omist David Crowe. “Steady employment and economic growth, along with attractive mortgage rates and home prices will keep the sector on an upward trajectory as we go forward, however persistent headwinds including labor and lot shortages will con-tinue to hinder a more robust recovery.”
Each economist discussed leading, present and future indi-cators for sector performance, including ABC's Construction Backlog Indicator (CBI) and Construction Confidence Index (CCI), AIA's Architecture Billings Index (ABI) and Consensus Construction Forecast and the NAHB/Wells Fargo Housing Mar-ket Index (HMI).
For an archived version of the web conference, http://eventcenter.commpartners.com/se/Meetings/Playback.a
spx?meeting.id=964586. D
W
Carlton & Alberola’s Practice Focuses On The Following Areas:
Construction Law: Construction Disputes Both Public And Private Payment Disputes - Including: Mechanics’ Liens Stop Notice Claims and Bond Claims Licensure Issues Bid Protest Issues Construction Defect Litigation Surety and Insurance Disputes
Business and Corporate Law: General Business Litigation Contract Drafting and Interpretation Business Formation
23792 Rockfield Blvd., Suite 101, Lake Forest, CA 92630 www.CarltonAlberola.com (949) 954-6666
Advertiser’s IndexAtkinson, Andelson, Loya, Ruud & Romo ...............................................4Ayala Boring.........................................................................................22The Blue Book .....................................................................................10CalWest Surety .....................................................................................27Carlton & Alberola..................................................................................8Carno Law Group...................................................................................6Catalina Pacific Concrete......................................................................21Coastline Equipment...............................................................Back CoverCoordinated Companies.......................................................................12E-Nor Traffic Contol..............................................................................23Garrett/Mosier/Griffith/Sistrunk Ins. Svcs., Inc........................................21Glenn M. Gelman & Associates ............................................................23Gill And Baldwin, P.C............................................................................23Golden State Boring & Pipe Jacking, Inc. ..............................................21Hi-Way Safety Inc...................................................................................7Inland Surety........................................................................................22Kamine Law PC....................................................................................20Charles King Company .........................................................................23Koppl Pipeline Service, Inc. ..................................................................22MCC Pipeline Contractor Inc................................................................22Mocon Corp.........................................................................................23Monteleone & McCrory, LLP ................................................................22National Ready Mixed Concrete Co. ....................................................23Northtown Company............................................................................23Oldcastle/Kristar ...................................................................................22Pascal & Ludwig Constructors, Inc. .......................................................21Patriot Risk & Insurance Services...........................................................22Penhall Company .................................................................................10Pure Effect, Inc. ....................................................................................21Sancon.................................................................................................23J.F. Shea Construction, Inc. .............................................................12, 22South Bay Foundry, Inc.........................................................................22Sullivan Curtis Monroe Insurance Services ..............................................6Superior Gunite Company....................................................................21TPR Traffic Solutions ...............................................................................9Trench Plate Rental Co. ..........................................................................3Trench Shoring Company .......................................................................5United Water Works Inc. ......................................................................22Van Diest Bros......................................................................................21Video Fact ............................................................................................21Williams Pipeline Contractors, Inc. .......................................................22
Finally, a FederalHighway ProgramPasses
E C A M A G A Z I N E J A N U A R Y 2 0 1 610
O
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800-736-4255(800 - PENHALL)
n December 5th, President Obama signed the “Fixing
America's Surface Transportation Act” (FAST Act), the first long-term transportation funding bill passed by Congress in 10 years.
The measure provides funding for a five year infrastructure investment program (federal FY2016 - FY2020) that grows annual investments by approxi-mately 15.1 percent for highways and a 17.8 percent for the na-tion's transit program.
The $305 billion measure includes $70 billion from other ar-eas of the federal budget that will provide for slight annual fund-ing increases during the next five years. The FAST Act includes $225.2 billion for the Highway Trust Fund (HTF) and approxi-mately $61 billion for the nation's transit program. The year-by-year funding levels:
Two new freight programs were included in FAST: the Na-tionally Significant Freight and Highway Projects Program (a discretionary grant program) and the National Highway Freight Program (a formula based program allocated to each state).
All of this is good news for California contractors, at least in the sense that it provides stability of federal funding which makes up roughly one-third of the state highway program bud-get. The bad news is that the state is still looking for a way to in-crease its contribution to Caltrans' budget, which has dropped by half since 2013.
A special legislative session on the issue is still underway with a committee holding public hearings on suggested solu-tions throughout the state, including one in Ontario in November and another in Riverside in December. Perhaps a plan will emerge in January with the coming 2016 legislative session.
During the Senate and House conference committee nego-tiations on the FAST Act, Senator Barbra Boxer (D-CA) helped water project funding by successfully in getting language in the legislation that eliminated the mandate contained in the Water Infrastructure Finance and Innovation Act (WIFIA) authorization for both the U.S. Environmental Protection Agency and the Corps of Engineers program that prohibited combining tax ex-empt financing with WIFIA assistance (i.e. combining WIFIA
loans with municipal tax exempt bonds). D
Good News for Water Funding
Political Action
By Andrew Waterbury,ECA Government Affairs ChairmanEmail: [email protected]
2015
(Current)
2016 2017 2018 2019 2020
Highways $37.798 B $39.727 B $40.771 B $41.424 B $42.359 B $43.373 B
TIFIA $ 1.00 B $275 M $275 M $285 M $300 M $300 M
NSFHP
(grants) $800 M $850 M $900 M $950 M $1.00 B
Transit
Formula $8.595 B $9.347 B $9.733 B $9.733 B $9.939 B $10.150 B
Transit
Capital
Grants
$2.12 B $2.301 B $2.301 B $2.301 B $2.301 B $2.301 B
ECAMAGAZINE
ADVERTISING SPECIAL
Advertise in ECA Magazine and take advantage of the top resource in southern California to reach the people who build the water, sewer, storm water and other infrastructure. Our industry leading editorial team brings a combined 40 plus years of experience with the issues
Or visit www.ecasocal.org/ECAAdPromo2015/ECA_Advertisix.htm
Scan the QR Codebelow to access the onlineECA Magazine order form.
important to these industry professionals and services not available anywhere else specific to the heavy construction building industry.ECA's 3,000+ readers are owners or top management decision makers in this critical industry. ECA's circulation reaches contractors in 11 counties of southern California – a market bigger than all of the New England states – serving two thirds of California's 38 million residents.
ECA – Building Your Business Future
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Check out some of these available LOW RATES!!! ! !1 pg. $314 1/2 pg. $180 1/4 pg. $115 1/6 pg. $90
ECA Magazine’s Editorial Calendar includes specials on Public Works, Safety, Construction Finance, Risk Management, Association Activities, Equipment Rentals, Trenchless Technology, New Products,
Project Spotlights, Industry Forecasts, and the ECA Annual DIG Awards!
The history of the Shea family of companies began modestly enough in 1881 when company founder John F. Shea established a small plumbing business in Portland, Oregon. From those humble beginnings, his sons and their sons after them built the J.F. Shea Company into one of the largest privately held home builders in the nation.
At the core of this family network of influential companies is J.F. Shea Construction, Inc. – one of today’s largest and most respected civil contractors in the nation. The construction company’s legacy of milestone achievements include the building of the Golden Gate Bridge, Hoover Dam, and San Francisco’s Bay Area Rapid Transit (BART) system.
J.F. SheaConstruction, Inc.
www.jfshea.com
(909) 595-4397 Fax (909) 444-4263P.O. Box 489, 667 Brea Canyon Road, Suite 30, Walnut, CA 91788-0489
(909) 595-4397 Fax (909) 444-4263P.O. Box 489, 667 Brea Canyon Road, Suite 30, Walnut, CA 91788-0489
General Contractors Lic. # 769989General Contractors Lic. # 769989
THE COORDINATED COMPANIESTHE COORDINATED COMPANIESMaking Quality and Safety Our Priority
Since 1952
Making Quality and Safety Our PrioritySince 1952
Coordinated Wire Rope & Rigging, Inc.Coordinated Wire Rope & Rigging, Inc.1707 E. Anaheim St., Wilmington, CA 90744
!310/834-8535 www.coordinatedcompanies.com
Your source for the highest quality, safest and most reliable
! Fabricated Rigging Products
! Safety & Fall Protection Gear
! Wire Rope Slings
! Rigging Hardware
! Synthetic Slings
! Lifting Products
! Chain Products
E C A M A G A Z I N E 12 J A N U A R Y 2 0 1 6
E C A M A G A Z I N E 13E C A M A G A Z I N E J A N U A R Y 2 0 1 613
ECA Member News
For information regarding ECA events call
714/937-5000 or by fax at 714/937-5030
Email: [email protected]
Visit us on the web at: www.ecasocal.org
Send news releases or other member information to: ECA Magazine,
2190 S. Towne Centre Place, Ste. 310,
Anaheim, CA 92806
! ECA Board Meetings 1st Wednesday each month, ECA offices
! ECA Safety Forum Meets every 1st Wed., 11:00 a.m. ECA office, lunch provided.
2016 ECAEvent Calendar
! January 23 40th Annual ECA Installation, Langham Hotel, Pasadena
! February, 2016 Membership Meeting
! March 3, 2016 Legal Seminar JT Schmid’s Restaurant, Anaheim
! March, 2016 Golf Tournament
! May, 2016 Angels Baseball Game & Tailgate
! June 23-26, 2016 Annual Convention Golden Nugget Hotel & Casino, Las Vegas
ECA Hosts ChineseConstruction Delegation
O n December 15 ECA welcomed a delegation
of construction professionals visiting from
the People’s Republic of China. The group’s inter-
est in visiting the United States was in seeing
municipal water quality improvement and filtration
installations.
The group was headed by Mr. Zhu, General
Manager, Tianjin Construction Engineering
Tendering Co. Ltd. His company specializes in
engineering cost consulting, project bidding and
project management and is currently working under
contract with the Ministry of Construction for the city
of Tianjin, China.
The delegation of 13 visiting professionals met
at the ECA offices in Anaheim and were given a
welcome and introduction
by ECA Executive Director,
Wes May, ECA Affiliate
Chairman, Lou Rendon of
Frazer, LLP, and the ECA
office staff. The group was then given the opportunity to tour a public works project being
constructed by ECA member Pascal & Ludwig Constructors for the city of Corona.
The $8.3 million contract is for Corona’s Tertiary Filtration Treatment Facility, begun in
December of 2014, and slated for completion in May, 2016. The plant calls for a granular
media filter and membrane
bio-reactor filters with an over-
all tertiary system recovery
rate of 98.8%.
The de legates were
shown how the system draws
reclaimed backwash waste-
water with a processing ca-
pacity of four million gallons
per day and is fully automated
for unattended operation. D
Above: Mr. Zhu, General Manager, Tianjin Construction Engineering Tendering Co. Ltd. presents ECA Executive Director, Wes May with a gift of appreciation. Tianjin is a con-struction engineering and man-agement company working for the government of China.
Left: Chinese delegates greeted at the ECA ‘s Anaheim offices.
Right: Interpreting for his delega-tion is Charlie Yan of the MSL International Group.
Member News
E C A M A G A Z I N E 14 J A N U A R Y 2 0 1 6
A CPP/ECA Success StoryOn the morning of October 14th, the Crime Prevention
Program received a call from J.F. Shea, a CPP and Engineering Contractors' Association member. The call was regarding the theft of a 2007 KW water truck in Pico Rivera which occurred sometime during the night.
The truck was not GPS or LoJack equipped and I was think-ing this truck could be at the border, getting ready to be shipped at the port or on a lowboy to somewhere. Before the day was over a stolen bulletin was created with a picture of a very similar truck in the J.F. Shea fleet. This bulletin was sent to over two hundred law enforcement e-mail contacts and to the CPP mem-bers.
So I started making some calls. I called my contact at the Otay Mesa border facility and made sure U.S. Customs had the information in case the vehicle identification number (VIN) on the truck was pre-screened for export so it could be quickly driven across the border. I also called and e-mailed PACCAR (the parent corp. for Kenworth) and gave them the VIN just in case future repair work would be done at a KW facility. Stranger things have happened.
The next day was a very busy. It was made busier when I got a call from ECA President, Dave Sorem. Dave told me he saw the J.F. Shea truck from the bulletin in Rosemead the day before. Dave was out looking at a job bid. He added he didn't know if the truck was still there and gave me the address.
I called one of my many contacts at the Los Angele County
Vehicle Theft Task Force (TRAP), and gave him the details asking him to go out to the address and see if the truck was still there. I also called the J.F. Shea job site manager in Pico Rivera with the possible good news. I asked him to not make contact with the truck if he saw it and wait for the responding TRAP detective.
An hour and a half after later Dave called again. The J.F. Shea truck was back at the Pico Rivera job site with a slightly damaged ignition and no towing bill. The handling detective was able to recover some potential DNA evidence before the truck was released at the scene and hopefully an arrest will be made.
The Crime Prevention Program has many success stories and this is just the latest. This is what the Crime Prevention Program does: it puts your company in the best possible posi-tion to get your equipment from getting stolen and if it is stolen, to get it back.
If you were ever thinking what the Crime Prevention Program can do for you, this is a good example. Please give us a call at 562-860-9006 to sign up and do more than just talk
about crime prevention. D
Engineering Contractors’ Association
Please notify us if your company has relocated, or if there are other necessary
changes to your company's listing (i.e. contacts, phone/fax #, job title changes,
certified business, etc.) Thank you!
We strive to keep our membership listing current & up-to-date!
Email of any necessary changes.
Update ECAMembershipInfo!
Keep us inthe know!
Have YouMoved Lately?Have YouMoved Lately?
By Gabe Marquez, Crime Prevention Program of Southern California, Email: [email protected]
Does new E-log rule applyto construction truckers?
Industry News
Ehe Federal Motor Carriers Safety Administration (FMCSA) pub-
lished the Federal Register (December 17) its latest iteration of a rule requiring commercial truck drivers to use elec-tronic logging devices (ELD) to record hours of service as opposed to the pa-per logbooks they have filled out for the
last 78 years.
Construction truckers are wondering whether this new regulatory burden applies to them. The short an-swer is…maybe…to get the right answer there is a bit of education and effort required of owners and drivers.
This is the second round for this rule. The Depart-ment of Transportation was ordered by Congress to develop regulations requiring electronic recording devices in 1995, but the FMCSA didn't take action until ordered to do so by a federal appeals court in 2004 in a lawsuit regarding limits on trucker hours. The agency's first attempt at a rule was overturned by another fed-eral appeals court decision in 2011. Three years ago Congress again directed the safety administration to issue a rule requiring the devices and set a deadline of Oct. 1, 2013, which the agency missed by two years.
The basic provisions of the new regulation are sim-ple—almost—for a federal regulation. An ELD auto-matically records driving time. It monitors engine hours, vehicle movement, miles driven, and location information.
Federal safety regulations limit the number of hours commercial drivers can be on-duty and still drive, as well as the number of hours spent driving. These limi-tations are designed to prevent truck and bus drivers from becoming fatigued while driving, and require that drivers take a work break and have a sufficient off-duty rest period before returning to on-duty status.
! Requiring commercial truck and bus drivers who currently use paper log books to maintain hours-of-service records to adopt ELDs within two years. It is anticipated that approximately three million drivers will be impacted.
! Strictly prohibiting commercial driver harassment. The Final Rule provides both procedural and technical provisions designed to protect commercial truck and bus drivers from harassment resulting from informa-tion generated by ELDs. [A separate FMCSA rulemaking further safeguards commercial drivers from being coerced to violate federal safety regula-tions and provides the agency with the authority to take enforcement actions not only against motor carriers,
Main Elements ELD Final Rule
but also against shippers, receivers and “transporta-tion intermediaries,” like brokers.]
! Setting technology specifications detailing perfor-mance and design requirements for ELDs so that man-ufacturers are able to produce compliant devices and systems – and purchasers are enabled to make in-formed decisions.
! Establishing new hours-of-service supporting document (shipping documents, fuel purchase re-ceipts, etc.) requirements that will result in additional paperwork reductions. In most cases, a motor carrier would not be required to retain supporting documents verifying on-duty driving time.
The ELD Final Rule permits the use of smart phones and other wireless devices as ELDs, so long as they satisfy technical specifications, are certified, and are listed on an FMCSA website. Canadian- and Mexican-domiciled drivers will also be required to use ELDs when operating on U.S. roadways.
There are exceptions to the ELD rule:! The most widely used exemption is the “short-
haul” radius exemption that allows the use of a time card instead of a log-book for drivers operating within a 100 mile radius of their “normal work reporting loca-tion” and not exceeding 12 hours on-duty.
! Drivers who keep paper “records of duty service” no more than eight days during any 30-day period.
! Drivers with a truck manufactured before model year 2000 will not need to switch to electronics—but with California's air quality rules forcing new trucks into fleets, this won't be of as much help as it will in other states.
! And this doozy, courtesy of the new federal high-way bill—“A motor carrier, when transporting a motor home or recreation vehicle trailer within the definition of the term 'driveaway-towaway operation' (as defined in section 390.5 of 9 title 49, Code of Federal Regula-tions), may comply with the hours of service require-ments by requiring each driver to use (A) a paper re-cord of duty status form; or B) an electronic logging device.” (guess it's good to know somebody in Con-gress when you need a special exemption).
There are plenty of benefits to electronic logging, including the ability to automatically record driving time, and monitor information such as engine hours, miles driven, and location, so the question becomes do the benefits outweigh the cost and hassle of change…and making decisions like that is why you
decided to be the owner of your business…right? D
Contractor Exemptions
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By Bill Davis, Contributing Writer, Email: [email protected]
Under the direction of chairman, Scott Salandi, the ECA Political Action Committee hosted its second annual Holiday Shoot Out event at Mike Raahauge's sports facility in Corona last month. With a full slate of 57 guests attending the contest featured a sporting clays challenge and included a barbecue lunch. At the end of the day, results were posted as follows:
1st place Dirk Barry – Trench Plate Rentals
2nd place James Roland – Trench Plate Rentals
3rd place Tom Firek – Laborers Local 1184 D
Member News
Above from left: displaying their marksmanship awards at the tournament are second place finisher James Roland of Trench Plate Rental, first place finisher Dirk Barry of Trench Plate Rental, and third place finisher Tom Firek of Laborers Local 1184 at the range.
Thank You to our Generous Sponsors: CalPortland Company; Carno Law Group; Ferreira Construction Co., Inc.; Trench Plate Rental Co. and Trench Shoring Company.
E C A M A G A Z I N E 16 J A N U A R Y 2 0 1 6
ECA PAC’s Holiday Shoot OutEvent Hits The Mark!
Above: Incoming ECA President, Bill Singleton, was the recipient of a set of high-powered binoculars at the event.
CARB’s Truck & BusRegs In Force
Air Quality Update
A
By: Clayton Miller, Construction Industry Air Quality CoalitionEmail: [email protected]
E C A M A G A Z I N E J A N U A R Y 2 0 1 617
s contractors and fleet owners are well aware, over the last several
years the California Air Resources Board (CARB) has aggressively pur-sued regulations aimed at reducing emissions from mobile sources in-cluding existing trucks and off-road equipment.
The Truck and Bus and the In-Use Off-Road Diesel Vehicle Regulations
are known as 'in-use' regulations, designed to force modifications or the turnover of trucks and equipment to meet specific compliance dates to decrease fleet emissions over time.
The Truck and Bus Regulation was initially adopted by CARB in December 2008 and was amended in 2010 and 2014. Amendments in 2014 included some provisions that contractors could po-tentially utilize for work trucks in their fleet. Of these, two changes in particular were in response to signifi-cant concerns the Construction Industry Air Quality Coalition (CIAQC) raised with CARB about the unique operational characteristics of work trucks used in construction. The first was an expansion of the Low-Use Vehicle Exemption and the second additional time to install particulate filters with the Low Mileage Work Truck Phase-in Option.
Contractors with trucks that operate under the definition of a Low-use Vehicle are exempt from the general requirements (Section 2025(e)) but must meet the reporting and record keeping requirements of the regulation. This includes mileage readings from a functioning odometer or hubodometer taken January 1 and December 31 of the compliance year. Additional requirements apply if an odometer or a hubometer are replaced. In the regulation, a Low-use Vehicle is defined as "(A) vehicle that is operated fewer than 1,000 miles within the boarders of Califor-nia in the compliance year, or (B) Until January 1, 2020, a vehicle that is operated fewer than 5,000 total miles regardless of where it is operated, in the com-pliance year." Other requirements also apply.
The Low Mileage Work Truck Phase-in Option replaced what had previously been the low mileage construction truck extension. This option applies to work trucks that travel less than 20,000 miles per year and were in the fleet on January 1, 2012 or trucks that have a 1996 or newer model year engine.
In the regulation a “Work Truck” means a vehicle that meets one of the following definitions: (A) A dump
with a trailer transports goods as defined by commer-cial code section 2105; or (D) A truck tractor that ex-clusively pulls a low-boy trailer, or (E) Any truck with a GVWR from 14,001 to 26,000 lbs.
The Low Mileage Work Truck Phase-in Option extends the deadline for the installation of particulate filters through 2018 at a specified percentage each year beginning 2014 for trucks utilizing this option. The compliance deadline each year is January 1. Similarly, other requirements apply to this compli-ance option.
The Truck and Bus Regulation is a complex regu-lation that applies to a wide variety of diesel vehicles with a manufacturer's Gross Vehicle Weight Rating greater than 14,000 pounds that operate in Califor-nia, not just trucks used in construction. Failure to comply with the regulation will result in significant fines and penalties. The Truck and Bus Regulation can be found at the CARB website www.arb.ca.gov/ msprog/onrdiesel/onrdiesel.htm.
While the information in this article is intended to assist as a reminder for some key dates and provi-sions, it is the sole responsibility of fleets to ensure
compliance with the Truck and Bus Regulation. D
truck that is designed to transport construction mate-rials such as dirt, asphalt, rock or construction debris including a transfer dump truck, or a tractor trailer combination used exclusively to pull bottom dump, end dump or side dump trailers; or (B) A truck or truck tractor owned by a company that holds a valid license issued by the California Contractors State License Board that is not-for hire; or (C) A truck with an at-tached bed or body that includes but is not limited to a concrete mixer truck, concrete pump truck, a water tank truck, or a single engine crane, except if the truck with an attached bed or body in combination
Industry News
Where is the Water Bond Money?
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If you've been wondering where the $7.2 billion in bond funds for Cali-fornia water projects approved by voters November 4, 2014 is hiding, we can tell you it is starting to leak of the State Water Resources Control Board (SWRCB). The SWRCB approved “guidelines” for spending some $200 million of the bond money on storm-water retention at a Sacramento meet-ing December 15th.
The guidelines took a bit over a year to prepare, after SWRCB staff engaged in the usual “process” rigma-role—stakeholder meetings, public hearings and those special sessions where they dream up a bunch of acro-nyms like SWGP (storm water grant program) and ASBS (Area of Special Biological Significance or coastal wa-ter). They managed to spend $14 mil-lion on “process,” leaving $186 million in grants (which have to be matched with local funds) to be distributed to public agencies, nonprofit organiza-tions, public utilities, state/federal recognized Indian tribes and mutual water companies for “multi-benefit storm water management projects.”
The $186 million will not all be go-ing into the ground in the projects. The guidelines require the recipients to develop a “plan” which must be re-viewed, approved and then “scored” by the SWRCB's Division of Financial Assistance. After that the project has to go through more bureaucracy in-
E C A M A G A Z I N E J A N U A R Y 2 0 1 618
volving deputy directors of this and that before it goes to the State Water Board for approval.
There is some good news—the guidelines also allow approximately $25 million of the remaining money from Propositions 13, 40, 50, and 84 to be hoovered into the funding pile with the November 2014 bonds—an open admission that the state has money laying around unspent from previous bond issues. The new guidelines su-persede any previously issued ASBS or Clean Beaches Grant Program guidelines. The grant money must go to projects that capture storm water instead of sending it to the ocean and “re-purpose storm water for a variety of potential benefits, including (but not limited to) water supply, flood control, habitat enhancement/restoration, and creating green space.”
Bottom line, these guidelines will allow the state to actually spend up to $100 million appropriated in the fiscal year 2015/2016 budget which ends June 30, 2016. It will provide up to $20 million for planning and up to $80 mil-lion for implementation projects. Staff told the Water Board that “if there are not sufficient well-qualified projects to use all $80 million of Round 1 imple-mentation funds, then those funds would rollover to the next solicitation (proposed for 2018).”
Where is the other $7 billion? Stay tuned, we're looking for it.
ECAENGINEERING CONTRACTORS’ ASSOCIATION
Your resource for success in southern California’sutility construction industry. Use it to help build
your business future.
714/937-5000 ! Fax 714/937-50302190 S. Towne Ctr. Pl., #310
Anaheim, CA 92806Email: [email protected]
By Bill Davis, Contributing Writer, Email: [email protected]
CARB Admits Equipment Regs UnrealisticThe California Air Resources
Board (CARB) is planning big changes to the rules wrapped around portable equipment, so contractors facing pend-ing 2017 deadlines to change their current equipment can breathe easier.
The air agency sent an advisory announcing the changes, but many contractors didn’t get the mes-sage—everybody that operates porta-ble engines (Tier 1 and above) is going to get some additional time before the compliance hammer drops again.
There won’t be any relief for opera-tors of Tier 0 engines—they still have to cease operation effective January 1, 2017 and either replace, repower or retire their equipment.
CARB plans to revise the fleet aver-age emission standards for diesel particulate matter (DPM) that become
effective in 2017 and 2020, including machines registered in PERP. CARB will not enforce and is advising the local air districts not to enforce, the 2017 fleet average emissions stan-dards until the regulatory amendments are effective. CARB has determined that widespread compliance with the 2017 and 2020 fleet average stan-dards for DPM “may not be feasible.” The reason—new engines just aren’t available yet, so there is no way to meet the standards.
A series of public workshops are to be held starting in early 2016 to dis-cuss proposed amendments so con-tractors interested in being involved in this rulemaking process are encour-aged to sign-up at the list serve link: http://www.arb.ca.gov/listserv/listserv_ind.php?listname=portable . D
E C A M A G A Z I N E 19 J A N U A R Y 2 0 1 6
Safety Forum
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Not a participant of the ECA Safety forum? Want to get involved? We meet on the 1st Wednesday of every month, 11:00 a.m. at the ECA offices. If you can’t make it in person please feel free to phone in. Our minutes and handouts are posted on our website. See you at the next meeting.
State RecognizesOpioid Drug ProblemIn Construction
have grown to 7.3 percent of California workers' compensation prescriptions – nearly six times the proportion noted in 2002.
Over the same period, payments for these drugs have increased from 4.7 percent to 19.6 percent of Califor-nia workers' compensation prescrip-tion dollars. The data also suggest that the use of Schedule II drugs in work-ers' compensation may have stabi-lized near this record level, as over the most recent 3-1/2 years these drugs have accounted for between 6.5 and 7.3 percent of all prescriptions dis-pensed to injured workers over the most recent four years.
Schedule II drug payments have represented about one out of every five dollars paid for workers' compen-sation prescriptions in California. The findings also show that since 2002, less powerful Schedule III opioids – primarily Vicodin or other forms of hydrocodone compounded with a non-steroidal drugs such as aceta-minophen – have accounted for a much more consistent share of work-ers' compensation prescription drugs, generally representing around 20 per-cent of all prescriptions dispensed to injured workers and 10 to 11 percent of the overall drug spend.
A workers' compensation formulary would likely have a powerful impact on the spiraling use of opioids. The utiliza-tion control mechanisms such as quan-tity and refill restrictions, prior authori-zation requirements and step therapy requirements are all likely to be very effective at weeding out cases with opioid abuse. Pain medication is al-ways going to be present at a mean-ingful level in occupational medicine given the nature of occupational inju-ries, but there is compelling evidence that there are far more workers on long term, high-dose opioid therapy than would is consistent with sound medical practice. In this area a formulary is likely to both reduce costs and improve the quality of care received by workers suffering from chronic pain. D
he state of California is going to change the way prescription
drugs (particularly opioids like hydrocodone and OxyContin) are delivered in its workers' compensa-tion program, which may help with what appears to be reaching epi-demic proportions in the construc-tion industry.
The cost of opioid (pain killer) use is greater for injured construction work-ers than for injured workers in other in-dustries, with spending on opioids in construction being 5 percent to 10 per-cent higher than other industries, ac-cording to a study by CNA Financial Corp. Moreover, with 2016 being just around the corner, construction com-panies need to be aware of the work-place safety trends that will continue to impact health and safety (including opioids, obesity and other dynamics) so they can be better equipped at miti-gating these challenges and costs.
The state legislature passed and Governor Brown signed AB 1124 this year, which requires the administrative director of the Division of Workers' Compensation to establish a drug for-mulary as part of the medical treatment utilization schedule, for medications prescribed in the workers' compensa-tion system. The goal is to keep pre-scription costs down in the workers' compensation system, and reduce overprescribing, especially opioid based pain killer medication.
The California Workers Compen-sation Institute (CWCI) published a
Formulary works in Texas, Washington
study in November of 2014 that evalu-ated the potential impact of adopting a workers compensation formulary in California. The study found that apply-ing the workers compensation formu-laries adopted in Texas and Washing-ton could reduce California workers' compensation payments for non-formulary drugs between $124 and $420 million per year.
The Texas formulary was phased in beginning in September 2011, with ini-tial implementation for new injuries and subsequent expansion to legacy claims. It had an immediate impact. In the first year, non-formulary drug pay-ments fell by 82 percent and the num-ber of prescriptions fell 74 percent.
Washington implemented its for-mulary in 2004, and it also had a signifi-cant effect on the utilization and cost of workers' compensation prescription drugs. A 2011 Workers' Compensation Research Institute (WCRI) study found average prescription payments per claim in Washington were significantly lower than the median cost in 17 other states.
WCRI study also looked at pre-scription drug payments from Califor-nia's workers compensation system and found that the California exceeded the average prescription payment per claim of the 17 other study states by 80 percent.
According to a recent CWCI report, the findings show that in the first half of 2013, Schedule II opioids, which in-clude powerful narcotics such as oxycontin, fentanyl and morphine,
California's problem
Alan G. LudwigPresident
LIC. #373525email: [email protected]
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