OCTOBER 2012 | ISSUE 10/VOLUME 218W W W. U N I T E D C O N T R A C T O R S . O R G

UCON-Supported BillsFind Approval with Governor Brown p.10

Make Sure IndustryHas a Voice: Nov. BallotInitiatives Inside

Industry’s Impact on Politics

Your Voice. Your Vote.

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to an economic downturn, and we never will. Visit statefundca.com today to learn

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United Contractors Magazine (ISSN: 2166-3777) is published monthly, except December, by United Contractors, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Correspondence should be directed to the United Contractors offi ce at the above address, by phone at (925) 855-7900, by e-mail at info@unitedcontractors.org or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offi ces. Postmaster: Send address changes to: United Contractors Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2012 Published in the U.S.A.

2012 UNITED CONTRACTORS BOARD OFFICERS

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

Vice President/President-Elect ..............Michael Ghilotti

Secretary/Treasurer ..............................Michael Ghilotti

Secretary/Treasurer-Elect.......................Kevin Albanese

contentsUNITED CONTRACTORS BOARD OF DIRECTORSKevin Albanese, Joseph J. Albanese, Inc.; Gary Andrews, Associated Constructors, Inc. Jami Brady, BakerCorp; Jerry Condon, Condon-Johnson & Associates, Inc.; Bruce Daseking, McGuire and Hester; Jack Estill, Appian Engineering, Inc.; Brian Gates, Top Grade Construction, Inc.; Rich Gates, DeSilva Gates Construction; Michael Ghilotti, Ghilotti Bros., Inc.; Brett Kincaid, O’Grady Paving, Inc.; Bret Lawrence, Woodruff-Sawyer & Co.; Rob Layne, O.C. Jones & Sons, Inc.; Robert Purdy, RGW Construction, Inc.; Bob Rahebi, Redgwick Construction Company

UNITED CONTRACTORS COMMITTEE CHAIRSAssociates: Jami Brady (Associate Director), BakerCorp; Bret Lawrence (Associate Director-Elect), Woodruff-Sawyer & Co. | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Rick Seifert (Chairman), Preston Pipelines, Inc. and Level 10 Construction | Scholarship: Janice Lajoie (Chair), GE Capital

UNITED CONTRACTORS STAFFMark Breslin, Chief Executive Offi cer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor & Member Services Representative; Steve Geney, Labor Negotiations Consultant; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Online Services Manager; Joan O’Brien, Education Manager; Jenn Rogers, Event Manager; Marlo Fregulia, Event Assistant; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Mallori Spilker, Government Relations Assistant; Kevin Pedrotti, Legislative Advocate; Tony Dorsa, CARB Consultant

O C T O B E R 2 0 1 2 5

More Inside:

www.unitedcontractors.org

6

20 RED TAPE

22 NEXT UP

24 WE ARE UNITED CONTRACTORS

26 LAST CALL

UP Front Pissed Off For GreatnessBy Bruce Daseking, McGuire and Hester;United Contractors Board Member

LABOR2013 Contracts, Compliance and UpdatesBy UCON Labor & Member Services Department

OCTOBER 2012ISSUE 10, VOLUME 218

8

INSIDE the CapitolThe Legislature’s Last DaysBy Kevin Pedrotti, UCON Legislative Advocate

A Transportation “MAP” for State and Local Offi cials—$$ for Industry?By Pete Ruane, President and CEO, ARTBA

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UCON takes a trip back to “The Classics” at our 2012 Government Re-lations Dinner & Auction.

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AUCTION2012

GOVERNMENT RELATIONS

OCTOBER 2012 | ISSUE 10/VOLUME 218W W W. U N I T E D C O N T R A C T O R S . O R G

UCON-Supported BillsFind Approval with Governor Brown p.10

Make Sure IndustryHas a Voice: Nov. BallotInitiatives Inside

Industry’s Impact on Politicson Politimpact oIndustry’s I

Your Voice. Your Vote.

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Driving to work, I enjoy listening to the constant banter of the Murph and Mac morning show on KNBR 680. Their quick wit and up-to-date sports knowledge makes the commute a little easier. Back in March of this year, they played a motivational speech by Ray Lewis of the Baltimore Ravens. Ray Lewis is considered to be one of the best professional football linebackers of all time. Playing for the Ravens (his entire career), he has been selected to thirteen Pro Bowls and named All-Pro ten times. He is also quite a tremendous motivator. Once, Lewis was asked by the Stanford Men’s Basketball Coach to motivate the team before a semifi nal game at the National Invitational Tournament. His speech, given in the Cardinal’s locker room before the game, was inspiring:

By Bruce Daseking,McGuire and Hester,

UCON Board Member, Government Relations Committee

Pissed Off For Greatness

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O C T O B E R 2 0 1 2 7

“Wins and losses come a dime a dozen, but effort? Nobody can judge effort. Because effort is between you and you. I’m pissed off for greatness. Because if you ain’t pissed off for greatness, that means you’re OK with being mediocre.”

The Stanford team ended up beating UMass 74-64, moving on to the title game, and winning the

to step-up and contribute to this team! But ultimately that effort is between you and you.

By supporting the United Contractors, you support the efforts of a membership full of, “Pissed off for greatness”—individuals who truly look after this industry. The time is now to step on the fi eld and show that you too are “PISSED OFF FOR GREATNESS.” ◆tournament (fi rst time since 1991).

Catch phrases from that speech are played from time to time—and just the other day, I heard it again on a radio show. That was just after United Contractors had asked me to write a piece for this Legislative Issue. Ray Lewis’s quote makes perfect sense for our industry—“I’m pissed off for greatness.” How great is that?! A little odd, but it works, because it’s true!

This is a great message for our industry. As every contractor understands, it’s about YOU putting in the effort to make the team successful. Being “pissed off for greatness” means writing that letter to your legislator; it means your PAC donation gets made and works to helps restore infrastructure funding and contributes to the defeat of that next regulation; it means your individual auction donation and your sponsorship of the Government Relations Dinner & Auction helps to fund a successful legislative program that can lead our industry to wins time and time again. Every individual effort adds up and helps lead to a win for our team—United Contractors, and our industry.

As the economy continues to recover too slowly and regulations continue to threaten the strength of our industry, how can we as an organization stand still and be mediocre? We can’t! Wins and losses mean life or death to our businesses. What better time to call our industry to action and join together our efforts for what we stand for—United Contractors. What better time than now to support the political and regulatory interests of the association? The Auction needs your support. Each dollar raised is a dollar that goes towards protecting our interests as an industry and increasing funding for the future. We can’t afford not

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2013 Contracts,Compliance and Updates

8 W W W. U N I T E D C O N T R A C T O R S . O R G

LABORThe following are two pieces of legislation that were enacted at the end of 2011 and will go into effect January 1, 2013.

SB 474—Indemnity ClausesEffective on construction subcontracts entered into after January 1, 2013, SB 474 prohibits general contractors and construction managers from requiring a subcontractor to defend and indemnify them against their own active negligence for defects in designs that they furnished, or for claims that do not arise out of the subcontractor’s scope of work. The law also bars state or local public agencies, as well as private owners, from requiring a contractor to agree

By United ContractorsLabor & Member Services Department

to contract terms that “purport to impose on the contractor” or to relieve the public agency or owner from liability for the public agency or owner’s own “active negligence.” United Contractors is working with legal counsel on revising our standard agreements prior to the compliance deadline and will let our members know when they are available.

AB 1396—Written Commission AgreementRequires a signed written agreement for all commission pay arrangements, with specifi c

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Sacramento, CA 800/548-0688Reno, NV 877/809-6492Las Vegas, NV 877/809-6493Houston, TX 866/247-9449

Los Angeles, CA 800/821-4478N. LA/Ventura, CA 877/246-4087Orange County, CA 800/772-8004San Brndno/Rvrsd, CA 877/246-4085

O C T O B E R 2 0 1 2 9

provisions to be included. This law goes into effect January 1, 2013, so employers need to make sure that all relevant documents and procedures are in compliance.

Additionally, here are updates on a couple of items related to HR

provisions to be includeed. This law ff

procedures:

NLRB Poster—Notice of Employee Rights Still on HoldThe new rule issued by the National Labor Relations Board (NLRB) requiring the posting of a Notice of Employee Rights was temporarily enjoined by the D.C. Circuit Court of Appeals earlier this year. Employers do not need to post this notice at this time. UCON will keep our members posted on any developments, and you can also check on the status at www.nlrb.gov/poster.

Form I-9—Expired Form Still ValidAlthough the current Form I-9 has an OMB expiration date of August 31, 2012, there is no new form to take its place yet. Until further notice, employers should continue using the Form I-9 currently available on the forms section of http://www.uscis.gov. UCON will provide updated information about the new version of the Form I-9 as it becomes available, and you can also subscribe to I-9 Central (http://www.uscis.gov/I-9Central) to receive Form I-9 updates. Employers must complete Form I-9 for all newly-hired employees to verify their identity and authorization to work in the United States. ◆

Have A Question?Call us. If we don’t have the answer, we will fi nd it. A sampling of the topics we can help you with are:• Payroll and trust fund contributions• Contract interpretation of union agreements (shift work,

subcontracting, holidays, etc.)• Prevailing wage compliance• Apprentice manning and public works apprentice

requirements• Hiring, discipline and termination• Substance abuse policiesFor Help Desk related questions, call us at (925) 855-7900, or email us at memberinfo@unitedcontractors.org.

“I seem to fi nd the most arcane issues, but United Contractors always fi nds the right answers.” — Joseph J. Albanese, Inc.

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10 W W W. U N I T E D C O N T R A C T O R S . O R G

INSIDEThe Legislature’s Last Days:Signed Bills Mean Victory for Our Industry

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By Kevin Pedrotti,JK Pedrotti, Inc.,

United Contractors Legislative Advocate

August 31st marked the end of the 2011-2012 legislative session, leaving 30 days for the Governor to sign or veto bills passed by the legislature this session.

The last days of the legislative session brought many signifi cant industry issues to the forefront. A last minute effort to inject CEQA reform was blocked by the legislative leadership, who declared there was insuffi cient time to address such a complicated issues in the remaining legislative year; however, the Senate champion for CEQA reform, Senator Michael Rubio, said he will take this issue up again next session. In another major push, the legislature, with support of the Governor, successfully pushed through comprehensive workers’ compensation and public pension reform on the fi nal day of session.

Of the many bills we supported, three key pieces of industry legislation made their way to the Governor’s desk, and two have been signed into law, signaling two major victories for the construction industry.

SB 1099, authored by United Contractors Digger Award winner, Senator Roderick D. Wright, was recently signed into law by

Governor Brown. This bill provides that unless an effective date is specifi cally provided, a regulation or an order of repeal shall become effective on a quarterly basis. Every year, businesses face countless new regulations promulgated by state agencies. The regulations go into effect 30 days after fi ling with the Secretary of State, and this happens year round. It is diffi cult, if not impossible, for a small business with minimal staff to keep track of the regulatory process involving multiple departments and agencies. The passage of SB 1099 is a success for industry, and will help create consistency for businesses and regulatory certainty in California.

AB 1671 (Huffman), co-sponsored by UCON, protects the fl ow of public works funding, which is a top priority for us. This legislation

extends, until January 1, 2020, the sunset date prohibiting the Department of Transportation (CalTrans) from withholding retention proceeds to its contractors when

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O C T O B E R 2 0 1 2 11

making progress payments for work performed on a public works projects. The initial legislation was passed in 2008, and AB 1671was signed into law by Governor Brown earlier this month. This extension of the zero percent retention rate for Caltrans projects is great news for the construction industry and the many contractors who work with Caltrans.

SB 965 which (as of publication print date) anxiously awaits a signature or veto from the Governor, is another regulatory reform bill

authored by Senator Wright. If signed, this legislation would establish allowable ex parte communications with State Water Resources Control Board (SWRCB) and Regional Water Quality Control Board (RWQCB) members and increases public access to the SWRCB and RWQCB public processes. Ex parte communications are made in private between an interested party in a decision making process and an offi cial in a decision making position. By allowing access to decision makers, a more effective and balanced approach can be made to enacting public policy.

Whether it’s a last minute push for CEQA reform, regulatory reform, or extending the 0% retention rate provision for Caltrans, United Contractors is constantly and aggressively advocating on behalf of our members and their businesses. And our biggest accomplishments come when we all take action together! At times throughout the session, UCON will call upon our members to send letters of support or opposition to legislators on critical pieces of industry legislation. When we call upon YOU, make your voice

heard through UCON’s “Advocacy in Action” Center, which allows you to send a letter in just minutes to your elected offi cials.

With hundreds of bills circulating Sacramento’s ever-changing political climate, United Contractors remains dedicated to increasing and stabilizing funding for our industry, improving the business environment for our contractors, and strengthening our industry’s voice inside the Capitol. ◆

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12 W W W. U N I T E D C O N T R A C T O R S . O R G

INSIDE The

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By Pete Ruane,President and CEO,

American Road & Transportation Builders Association

After nearly three years and nine short-term extensions of the federal highway and public transportation programs, Congress completed action in June on a two-year surface transportation reauthorization bill. President Obama signed the Moving Ahead for Progress in the 21st Century (MAP-21) into law on July 6. It stabilizes federal surface transportation investment through FY 2014 and makes a number of policy reforms that will impact all parts of the transportation community, including state and local offi cials.

While many of these policy matters involve changes to the 2005 reauthorization measure (SAFETEA-LU) program structure, and have long been sought by most transportation advocates, we cannot overlook the impact

on local governments that willresult from MAP-21’s reduced level of federal funding for highway improvements in FY 2013 and FY 2014.

FUNDINGFederal funding for highways peaked at $41.1 billion in FY 2010 and FY 2011. In FY 2012, Congress reduced funding to $39.1 billion. MAP-21 increases this slightly to $39.7 billion in FY 2013 and $40.3 billion in FY 2014, refl ecting projected infl ation. In states where a share of federal funds is suballocated to local governments by formula, they will automatically receive less in 2013 and 2014 unless the state fi lls the gap with its own funds. Other states may try to make up for the reduced federal funding by reducing discretionary aid to local jurisdictions. This process began in some states in FY 2012 but is likely to intensify in 2013 and 2014 as the gap between state highway needs and resources grows ever larger, resulting in many having to fi nance a larger share of their highway improvements.

CHANGESProgrammatic changes in MAP-21 could also have a signifi cant impact. Most notable is that MAP-21 has a much simpler program structure than SAFETEA-LU. While SAFETEA-LU contained dozens of programs, each authorizing the expenditure of federal funds for a specifi c kind of highway improvement, MAP-21 aggregates them into four programs that give states much more fl exibility in how they use their federal highway funds. Specifi c SAFETEA-LU programs affecting local governments are now largely gone, including the High Risk Rural Road Program, the Safe Routes to Schools Program, the Recreational Trails and Scenic Byways Programs, and the Transportation Enhancements Program. In their place, MAP-21 transforms these into eligible activities within the existing Highway Safety Improvement Program and a new category of “Transportation Alternatives.” While MAP-21 requires states to spend at least two percent of their federal highway funds on Transportation

A Transporation “MAP” for State & Local Officials—$$ for Industry?

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“UCON did an outstanding job. They provided more than excellent service. You can see they really know their stuff and we rely on that.”— Michelle Hernandez, Preston Pipelines, Inc.

Alternatives, the total is about $300 million less per year than the total for these programs under SAFETEA-LU.

PROVISIONSMAP-21 includes some provisions that could maintain or even increase federal help to local governments:• MAP-21 preserves sub-state allocation of Surface

Transportation Program (STP) funds. Half the funding each state receives under the STP is to be allocated within the state based on population, with funds being divided between urbanized areas over 200,000 population, other areas between 5,000 and 200,000 population, and rural areas with populations of less than 5,000. Every part of the state is thus guaranteed to receive at least some federal highway funds. The other half of STP funding may be used anywhere in the state.

• MAP-21 preserves a mandatory set-aside for off-system bridges, also as part of the STP program. Each state is required to spend as much on off-system bridges each year as was required in FY 2009 under the 15 percent off-system setaside in the SAFETEA-LU Bridge Program.

• A new provision of the STP makes improvements to minor collectors eligible for federal funding, if the improvement will enhance the level of service on a related National Highway System (NHS) route and is more cost-effective than an improvement to the NHS route.

• As part of new “National Freight Policy” provisions, MAP-21 encourages states to invest in highway improvements that improve the fl ow of freight by increasing the federal share of project costs to 90 percent or more. The important element for local governments is that each state has to defi ne a freight network that, in addition to Interstate Highways and NHS highways that are critical to freight movement, may also include local rural roads with signifi cant truck traffi c.

• The new law also creates a comprehensive performance process under which the U.S. Secretary of Transportation develops national goals and performance measures to track progress towards those goals. States are then charged with setting performance targets and reporting to the Secretary on their efforts to achieve those targets.

CLASSIFICATIONMAP-21 includes a number of new opportunities for state and local governments to reduce delay in project delivery. One of the most signifi cant changes to existing law is an expansion of the use of “categorical exclusions” (CEs) during the environmental review process. A CE

is used when projects create minimal impacts on the environment. The difference between a CE and the more extensive environmental assessments (EA) or environmental impact statements (EIS) is multiple years added on to the amount of time it takes to complete a project review. MAP-21 now automatically classifi es many routine projects as CEs. These include rehabilitation and repair projects, projects within an existing right-of-way, projects with minimal federal resources and projects undertaken as a result of an emergency situation. Expanding the use of CEs to these additional areas will enable local governments to have more certainty as to when a CE can be used.

REVIEW AND APPROVALThe law also expands opportunities for state and local governments to take control over various elements of the review and approval process. States now have the option of stepping into the federal role during the environmental review process. Delegation of the federal role in the environmental review process could help reduce delay, as states would not have to “wait in line” for federal approvals and schedules. States can assume

Continued on next page

14 W W W. U N I T E D C O N T R A C T O R S . O R G

control of either the entire environmental review process or just over the CE process. MAP-21 also allows the use of STP funds to cover legal expenses associated with the delegation of environmental responsibilities.

MAP-21 provides options for reducing the amount of duplicative work in the review and approval process, including using materials in the transportation planning process during the National Environmental Policy Act (NEPA) review. This would reduce delay by allowing, where appropriate, the use of material already created instead of “reinventing the wheel.” MAP-21 also

encourages the use of programmatic agreements, spelling out requirements in the beginning of the review and approval process, rather than over a longer period of time. By outlining requirements early in the process, programmatic agreements provide a chance to give transportation planners increased certainty throughout the overall review process.

DEADLINESMAP-21 establishes new deadlines in the review process and tightens existing deadlines; e.g. shortening the amount of time allowed for lawsuits against projects from

180 days to 150 days. It establishes new deadlines for permitting decisions from federal agencies. If these deadlines are not met, the agencies suffer fi nancial penalties. Finally, if a project is involved in an EIS for more than two years, a request may be made to have the United States Department of Transportation set a schedule ensuring the project will be completed in no more than four additional years. CONCLUSIONThe reforms in MAP-21 will make federal surface transportation investment more effi cient, transparent and accountable. In so doing, the new law should help restore public confi dence in the federal stewardship of transportation resources. The enactment of MAP-21, however, is not an opportunity to put these programs on auto pilot. The Highway Trust Fund will again be facing a solvency crisis at the end of FY 2014—if not before. As such, it is imperative that the entire transportation community redouble its efforts to convince Congress to enact a long-term revenue solution to ensure the sustainability of the federal highway and public transportation programs and complement MAP-21’s many policy reforms. ◆

The preceding article has been reprinted with permission from the American Road & Transportation Builders Association (ARTBA). United Contractors is an affi liate of ARTBA. For more information, visit www.artba.org.

“UCON did an outstanding job. They provided more than excellent service. You can see they really know their stuff and we rely on that.”— Michelle Hernandez, Preston Pipelines, Inc.

16 W W W. U N I T E D C O N T R A C T O R S . O R G

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United Contractors 24th Annual Government Relations Dinner & AuctionSaturday, November 3, 2012Craneway Pavilion, Richmond Marina District

How You Can Participate:• Attend the Auction – And invite other UCON members, and even those outside of the association to attend and support our industry.• Donate – Donate an item for the silent or live auction, or money in any amount to help us with the event! • Sponsor – Be a key sponsor of the event and get premiere marketing for your business.

For more information contact Jenn Rogers, EventManager at jrogers@unitedcontractors.org, (925) 362-7309, or visit www.unitedcontractors.org.

Auction Sub-Committee:Thank you to our auction committee; we would not be able to achieve the goals set without the support, time and dedication from our auction sub-committee:Chris Young, D. W. Young Construction Co., Inc. (Chairman)Bruce Daseking, McGuire and Hester (Co-Chair)

Andrew Vasconi, A.J. Vasconi General EngineeringKevin Dern, Ghilotti Bros., Inc.Debbie Ferrari, MAG TruckingRene Cameron, Moss Adams LLPChristi Plum, P C & N Construction, Inc.Bret Lawrence, Woodruff-Sawyer & Co.

Visit our website often to see all of thenew silent & live auction itemsthat will be available at the event.

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GOVERNMENT RELATIONS

About the 2012 Auction:United Contractors takes a trip back to the classics, ‘30s, ‘40s, ‘50s and ‘60s, complete with vintage automobiles. By supporting the United Contractors annual Government Relations Dinner & Auction you are supporting the efforts to promote the policies and politics that work for California’s union-affi liated construction industry in the public and private market.

Our political advocacy is your political advocacy! Each dollar raised at this event goes towards building, maintaining and protecting our industry! The funds help build UCON’s government relations program and are returned to you through a better business environment, increased funding for public works, legislation that protects or improves your business and helps to pass some of California’s greatest infrastructure projects and initiatives.

Auction Sponsors:

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Platinum Sponsor Gold Sponsors

Bronze Sponsors

Silver Sponsor

Auction Item Preview:

Safari Adventure on the Sonoma Serengeti— Robert Chrisp, Chrisp Company

One Week at NorthStar Tahoe— Bob Purdy, RGW Construction, Inc.

Chocolate Labrador Retriever Puppy— Bruce Daseking, McGuire and Hester

Warriors Tickets— Jerry Condon, Condon-Johnson & Associates, Inc.

Bank of the West Tennis Classic— Janette Leonidou, Leonidou & Rosin Professional Corporation

Duck Hunting Trip— Rod Stevenson, Stevenson Supply

Moss Adams LLPTravelers

Go(as of print date)

Friends of UCON SponsorWest Valley Construction, Inc.

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GOVERNMENT RELATIONS

18 W W W. U N I T E D C O N T R A C T O R S . O R G

Baseball Fans—Ultimate Passes— Robert Fried, Atkinson, Andelson, Loya Ruud & Romo

The Ultimate Bocce Challenge— Ricky Serrano, R.E. Serrano, Inc. and Tom Albanese, Central Concrete Supply Co., Inc.

The San Francisco Experience— George Furnanz, Stacy and Witbeck, Inc.

Sharks Tickets— Mike Carter, All American Rentals

Case of 2009 Seghesio Zinfandel— Andrew Vasconi, A. J. Vasconi General Engineering

Golf at Stonebrae— Jim Untiedt, Aon Construction Services Group

Flat Screen TV—John Parodi, IronPlanet

Dom Perignon with Private Waiter(UCON’s Mark Breslin) — Michael Kelly, West Valley Construction, Inc.

3 Summer Nights atNorthstar Tahoe— Mike Preston, Preston Pipelines, Inc.

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Raiders Luxury Box — Brian Bothman, Robert A. Bothman, Inc.

2 Nights at the Villagio Inn & Spa— Michael Ghilotti, Ghilotti Bros., Inc.

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By Tony Dorsa,TD Consulting,

UCON Regulatory Consultant

A short while ago, one of our contractor members received a letter from his concrete vendor, indicating price increases to become effective January 2013. The vendor indicates that because of the struggling economy, they cannot afford to absorb the added costs of CARB On-Road compliance requirements; therefore they must add an Environmental Fee Surcharge of $40/load for concrete, and $5/load for aggregate. Welcome to California.

For the fi rst time since their implementation, we are confronted publicly with specifi c, direct, negative economic ramifi cations of the CARB Regulations. Is this a way to send CARB a message? And, if so, to what extent will CARB heed that message?

The questions must be asked: What harmful effect would a two-year delay in the implementation of the Trucking Regulations have on emissions reductions throughout California? And what actual harmful effects are the CARB regulations now having on the struggling state economic recovery—which relies so heavily on our construction industry—specifi cally in the Bay Area and Central Valley?

The CARB Board of Directors will continue to listen to the parade of environmental speakers which appears at Board hearings and meetings. Heads nod affi rmatively as speaker after speaker tells of the health hazards of air pollutants, such as PM 10 diesel emissions, and PM 2.5 smoke and soot. The Board’s view seems to be that these health considerations far outweigh the costs of compliance with the regulations.

Whenever possible and feasible, project cost increases are passed through to the customer, and ultimately to the end-user. Precedents include price increases in steel, diesel fuel, plastic pipe, and lumber, which resulted due to overall shortages or price increases in an underlying base product, such as petroleum. As contractors bidding public works and other projects, we have experienced the nightmare of maintaining bid prices as our material costs skyrocket. Ultimately, as costs are passed through, project budgets implode. End-users see the cost overruns, object to the increases, and either pay the change orders, or not. It’s the “not” that places the burden back on the contractor, as well as the taxpayer.

At a time when our struggling industry is just beginning to recover, however slightly, CARB again

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20 W W W. U N I T E D C O N T R A C T O R S . O R G

Road Blocks to RecoveryRegulatory Costs Trickle Down to Contractors

slams the door, refusing to listen to our economic arguments and to our requests to delay implementation and enforcement until the economic recovery has gained a stronger foothold.

Current statistics will show that the economic crunch has reduced emissions signifi cantly, because with no work, the equipment sits in the yard, or is used sparingly. Fleets sit idly by until needed and surplus equipment and vehicles are retired or sold. It is the economy, and not the regulations, that reduced emissions levels throughout the State.

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Under the Federal Clean Air Act, CARB has EPA obligations to meet, and is doing so at the expense of the one industry that the State of California needs to complete the economic recovery we so desperately seek. California’s recovery will be a long and tedious process; and regulations which put the construction industry out of business are nothing but roadblocks to recovery. ◆

United Contractors is here to help. We continue to represent your interests to the regulatory agencies. Contact Tony Dorsa, TD Consulting Services, and UCON Regulatory Consultant, at (408) 649-4383, or Emily Cohen, Director of Government Relations at (925) 855-7900.

DewateringDeep WellsWell PointsRelief WellsDry Wells

Trench Drain Dewatering

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Temporary Onsite Water SystemsPond Dewatering/Unwatering

Hose, Fittings & Other AccessoriesFull Automatic Priming

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Main Line Piping - HDPE - PVC - Yelomine - Manifolds - Diffusers

Installation by experienced union technicians and installers

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Step Down TransformersBuck BoostersWoman Owned Business and SBE Certified #20783

Viking Drillers, Inc.Family Owned and Operated Since 1983

801 Northport Drive, West Sacramento, CA 95691

1-855-2DIGDRYwww.vikingdrillersinc.com

Territories:CA LIC. #476668NV LIC. #0044407NV LIC. #0034680OR LIC. #188505

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EDUCATION & TRAININGFIRST AID/CPR 4 HOUR REFRESHER Saturday, October 20, 8:00am-12:00pmLocation: Executive Conference Room, San RamonCost: $65 member; $90 non-member

A 4-hour refresher class for those needing to renew their certifi cation, or to sharpen their knowledge and skills.

SUBCONTRACTOR REVIEW& NEGOTIATION Thursday, November 8, 8:00am-10:00amLocation: Residence Inn Marriott, PleasantonCost: $35 member; $60 non-member

A new class designed to assist subcontactors with proposal preparation, including what to avoid and successful negotiating techniques.

United Contractors University: Your Education & Training ResourceCan’t fi nd the specifi c classes you are looking for? UCON can help. Contact Joan O’Brien, Education Manager at (925) 362-7303, jobrien@unitedcontractors.org. Joan can give you more information regarding our education courses, including OSHA compliance classes, administrative professional seminars, and more.

RATED 4.85

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out of 5.00

Publication Statement of Ownership:

HIGH PERFORMANCE,HIGH PROFIT FOREMAN Wednesday, October 24, 6:00pm-8:00pmLocation: Holiday Inn, DublinCost: $99 member; $199 non-member

Management development and leadership training is one of the most powerful methods of industry growth and revenue generation. No one is more important in the profi t equation than the foreman running the job.

This course offers your foreman a chance to work side by side with their peers, and gain valuable insight on everyday practices that can be immediately applied to their workplace.

O C T O B E R 2 0 1 2 23

RATED 4.77

“I have earned both a Bachelor’s and a Master’s degree and have been in the industry for 25 years managing over 75 million dollars worth of projects. Mid-way through the High Performance, High Profi t Foreman Seminar, the light fi nally came on...this seminar has made a huge difference. I have begun to love the industry again.” — Ghilotti Construction Co.

N 8:00pm

“I have earned both a Bachelo

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CSLB #644515

CORPORATE OFFICE246 Ghilotti Ave. Santa Rosa (707) 585.1221

MARIN OFFICE2301 Kerner Blvd., San Rafael (415) 256.1525

AMERICAN CANYON OFFICE 600 South Napa Junction Rd. American Canyon (707) 556.9145

LIVERMORE OFFICE3090 Independence Drive, Ste. 118 Livermore (925) 583.0979

A Name You Can Build With

ghilotti.com

Infineon Raceway, Sonoma n The Buck Center, Novato n Candlestick Cove, San Francisco

Teamwork • Solutions • Excellence

T O TA L S I T E P R E PA R AT I O N

G R A D I N G A N D E X C AVAT I N G

PAV I N G

S T O R M D R A I N

WAT E R A N D S E W E R L I N E S

E Q U I P M E N T R E N TA L

S O I L S TA B I L I Z AT I O N

S I T E A N D S T R U C T U R E C O N C R E T E

U N D E R G R O U N D

General Engineering Contractor Services Since 1914

Unite

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39 YEARS – 1973Contractor Member:Sanco Pipelines, Inc.Dave Schrader

35 YEARS – 1977Contractor Member:Maggiora & Ghilotti, Inc.Gary Ghilotti

30 YEARS – 1982Contractor Member:Pacifi c BoringDavid Cline

28 YEARS – 1984Contractor Member:Ranger Pipelines, Inc.Tom Hunt

23 YEARS – 1989Associate Member:CEMEXMike Camello

20 YEARS – 1992Contractor Member:R & B Equipment, Inc.Rick Jeffery

19 YEARS – 1993Contractor Member:Norwood ConstructionLarry Norwood

18 YEARS – 1994Contractor Member:Lone Star Landscape, Inc.Robert Samaniego

17 YEARS – 1995Contractor Members:R.J. Gordon Construction, Inc.John Johnson

O.C. Jones & Sons, Inc.Kelly Kolander

16 YEARS – 1996Contractor Member:K.J. Woods ConstructionCompany, Inc.Kieran Woods

15 YEARS – 1997Contractor Member:Bugler ConstructionShelley Bugler

14 YEARS – 1998Contractor Member:Condon-Johnson &Associates, Inc.Jerry Condon

13 YEARS – 1999Associate Member:M.B. McGowan & Assoc.Ins. Agency, Inc.Michael McGowan

9 YEARS – 2003Contractor Member:Neary Landscape, Inc.Brian Neary

24 W W W. U N I T E D C O N T R A C T O R S . O R G

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

OCTOBER MEMBER ANNIVERSARIES

Associate Members:Groeniger & CompanyDick Alexander

Tri-West Tractor, Inc.Randy Cram

25 YEARS – 1987Associate Member:State Compensation Insurance FundCesar Farfan

24 YEARS – 1988Contractor Member:St. Francis ElectricBob Spinardi

O C T O B E R 2 0 1 2 25

Associate Member:MAG TruckingDebbie Ferrari

8 YEARS – 2004Contractor Member:Michels TunnelingRay Post

7 YEARS – 2005Contractor Member:Penhall CompanyScott Hustad

Associate Member:Robust Network SolutionsWadih Zumot

6 YEARS – 2006Contractor Members:D & D Pipelines, Inc.Dennis McElligott

W. C. Maloney, Inc.Amy Campbell

Associate Members:Last & FaoroWilliam Last, Jr.

RDO Integrated ControlsAndrew Evans

4 YEARS – 2008Contractor Member:Campanella CorporationMike Campanella

2 YEARS – 2010Associate Member:OSHA Training CenterJohn Messing

1 YEAR – 2011Associate Member:Protection EngineeringMichael Weston

Underground Contractor Products

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• Employment Law Counseling • Employment Litigation

• Prevailing Wage Compliance • Labor Commissioner Matters

• Wage-Hour Class Action Defense • Trust Funds Litigation

• Arbitrations, EEOC, and NLRB • Employment Contracts

• Union Disputes • Employee Handbooks

• Trade Secrets/Unfair Competition

601 Gateway Blvd., Suite 950South San Francisco, CA 94080

(650) 615-4860website: www.sgijlaw.com

◆

SIMPSON, GARRITY, INNES & JACUZZI, P.C.Attorneys At Law

Attorneys Representing Businesses In All Labor and Employment Law Matters

Professional Corporation

Paul V. Simpson and Marc L. Jacuzzi

Precision Drilling, Inc.R.E. Serrano, Inc.R.J. Gordon Construction, Inc.Rain For RentRay’s ElectricRedgwick Construction CompanyRGW Construction, Inc.Road Machinery, LLCS & S TruckingShimmick Construction Company, Inc.Shimmick Construction Company, Inc./ Obayashi Corporation JVSierra Mountain ConstructionSilverado Contractors, Inc.Simpson, Garrity, Innes, & Jacuzzi, P.C.St. Francis ElectricStacy and Witbeck, Inc.Striping GraphicsTidelands Construction CompanyTop Grade Construction, Inc.Tri-West Tractor, Inc.Valentine Corp.Vanguard ConstructionW.C. Maloney, Inc.W.R. Forde AssociatesWatt, Tieder, Hoffar & Fitzgerald, LLPWells Fargo of California Insurance Services, Inc.Western Stabilization

A. J. Vasconi General EngineeringAdvanced Stormwater Protection, Inc.AJW ConstructionARB, Inc.Bay Cities Paving & Grading, Inc.Bay Pacifi c PipelineBrutoco Engineering & Construction, Inc.Burnham BrownCal State Constructors, Inc.California Trenchless, Inc.CBIZConco-West Inc.Condon-Johnson & Associates, Inc.Corrpro Companies, Inc.Cynergy FinancialD & D Pipelines, Inc.D.P. Nicoli, Inc.D.W. Young Construction Co., Inc.D’Arcy & Harty Construction Inc.DeSilva Gates ConstructionDHE Inc. Equipment Co.Eighteen Trucking, Inc.Esquivel Grading & Paving, Inc.Flatiron Construction Corp.Gallagher & Burk, Inc.GE CapitalGhilotti Construction Co.Golden State Boring & Pipe Jacking, Inc.

Gordon N. Ball, Inc.Granite Construction - Materials DivisionGranite Construction CompanyGroeniger & CompanyThe Guarantee Company of North America USAHeffernan Insurance BrokersHelix Industrial, LLCHighway Technologies, Inc.Inner City Demolition, Inc.J.J.R. Construction, Inc.KriStar Enterprises, Inc.Las Vegas Paving, Inc.Lehigh Hanson Lockton Insurance Brokers, LLCMabey Bridge & Shore, Inc.McGuire and HesterMDR Inc, dba ACCU-Bore Directional DrillingMountain Cascade, Inc.Nada Pacifi cNeary Landscape, Inc.O.C. Jones & Sons, Inc.Old Republic Construction Program GroupOldcastle Precast - Enclosure SolutionsP C & N Construction, Inc.Performance Equipment, Inc.Peterson Tractor Co.Petrinovich Pugh & Company, LLP

CALLLAST

26 W W W. U N I T E D C O N T R A C T O R S . O R G

What Happens in the CapitolDoes Not Stay in the CapitolThe legislative actions of our elected offi cials impact your business and our industry everyday throughout California. Sending the right people to the Capitol is critical—people who understand the vital importance of our industry, value businesses in California, and are willing to step up and lead the way in policy making.

The success of United Contractors Government Advocacy is directly related to you! United Contractors PAC relies on donations from our members and is an investment into the future of our industry. United Contractors PAC is used to support state and local candidates who can make a difference for our industry. We contribute to candidates from both parties who show an interest and an understanding of our industry, and are dedicated to strengthening the business environment for the construction industry here in California.

The strength of our PAC is a testament to the strength and voice of our industry throughout California. Contribute to the PAC today and help protect our industry for tomorrow.

Thank you to the United Contractor members who have made PAC contributions in this 2012 year (as of printing):

Groeniger & Company3854 Bay Center PlaceHayward, California 94545

www.groeniger.com1-800 281-3333rgroeniger@groeniger.com

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