AGC 2019 Annual Report

ANNUAL REPORT 201 9

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AGC of Minnesota 2019 Annual Report

Contents 03 04 06 08 10 12 14 16 18

CEO Letter Industry Leadership Safety Services Advocacy Services Labor & Legal Services Education & Training Networking & Events Our Foundation Our Past & Future

AGC of Minnesota: Your Trusted Resource in construction

AGC of Minnesota 2019 Annual Report

CEO Letter 100 Years and Beyond 2019 marked AGC of Minnesota's centennial anniversary. Established as the first, statewide chapter of AGC in the country, we hold a distinguished place among our peers. Strong organizations remain relevant and impactful because they are built on principle, people and performance - the 3 Ps of association excellence. The 3 Ps have sustained and fortified our industry in lean times and fueled growth and expansion during other periods. Throughout the past century, AGC has always been the recognized commercial construction industry leader, setting the pace and establishing the standards for excellence.

Our founders, who gathered in St. Paul on December 11, 1918 to sign their names to the AGC charter, would today be awestruck and tremendously proud of what their association has accomplished. Their vision and belief in the power of association gave birth to an industry that thrives and provides for the needs of families, communities, a state, and a nation. We carry the mantle of those beliefs forward in everything we do, embodied in our many accomplishments and honored through the professional and personal relationships we maintain. While there is much to look back upon and celebrate from our history, there is an equally challenging future to embrace with the same passion and optimism expressed by our forebearers.

opportunities, and sponsored scholarships that help develop tomorrow's leaders.

We strive to remain Your Trusted Resource and the construction industry association of choice for the many great things yet to be revealed in our next century of leadership!

Respectfully,

Tim Worke CEO

Turning the page on history and looking to our future, we are proud to present the AGC of Minnesota 2019 Annual Report. It is my hope that you find relevance, value and pride in the many ways your AGC is leading the industry. We work tirelessly for members every day to leverage the awesome power of association, relying upon a belief that voices are stronger united than divided. As Your Trusted Resource, we move the needle and make differences large and small that improve our industry.

Inside this report you will discover where and how AGC provides focus, produces results, and builds meaningful relationships. 2019 was truly a great year for AGC. We impacted and improved the safety of the industry, provided effective advocacy for public policy and public investment in construction, presented industry-leading education and professional development, effectively facilitated labor relations and collective bargaining processes, offered first class networking and member engagement

Tim Worke, CEO

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AGC of Minnesota 2019 Annual Report

Industry Leadership AGC of Minnesota encourages involvement from members at every level of the association. From the board of directors to our industry committees and forums, members lead the way.

AGC of Minnesota provides several member-only opportunities to increase personal expertise and provide guidance to AGC. Below is a list of the current committees/forums, the chair (if applicable), and AGC staff assigned to each: Executive Committee:

Kent Peterson, Bituminous Roadways, Inc. | Tim Worke

Alternative Procurement/ Project Delivery:

Member-led | Laura Ziegler

Best Value:

Dean Thomson, Fabyanske, Westra, Hart & Thomson, P.A. | Laura Ziegler

Bituminous:

John Shogren, Minnesota Paving & Materials | Laura Ziegler

Bridge:

Concrete:

Greg Pelkey, Shafer Contracting Company, Inc. | Laura Ziegler

Contract Documents:

Member-led | Mike Schechter

Grading & Base:

Brian Mathiowetz, The Mathiowetz Construction Company | Laura Ziegler

Human Resources:

Member-led | Merry Beckmann

In-House General Counsels:

Legislative:

Rich Jacobson, Kraus-Anderson Construction Company and Tom McCrossan, C.S. McCrossan, Inc. | Laura Ziegler

Over Dimension Permit: Member-led | Laura Ziegler

Safety and Health:

Member-led | Doug Swenson

Sporting Clays:

Member-led | Denise Woods

Member-led | Mike Schechter

Labor Cabinet:

Member-led | Mike Schechter

Leadership Blueprint Counsel:

Cathryn Camacho, Camacho Contractors; Brett Mathiowetz, The Mathiowetz Construction Company | Merry Beckmann

Nate Larson, Redstone Construction, LLC | Laura Ziegler

Building Jobs Coalition: Laura Ziegler

2019 Award Recipients Skill-Responsibility-Integrity: Stan Jorgenson, Jorgenson Construction, Inc. Lifetime Achievement: Tom Becken, Cemstone Companies

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AGC of Minnesota 2019 Annual Report

2019 Board of Directors

Kent Peterson | Chair Bituminous Roadways, Inc.

Michael Headrick | Vice Chair PCL Construction Services, Inc.

Jeff Carlson | Secretary-Treasurer Park Construction Company

Aaron Benike | Past Chair Benike Construction

Sterling Black | Director LS Black Constructors

Dave Debevec | Director Ulland Brothers, Inc.

Jim Fink | Director Associated Bank

Heidi Gunderson | Director Woody's Rebar, Inc.

Mark Mathison | Director Gray Plant Mooty

Mike McNamara | Director McNamara Contracting, Inc.

Brent Wilber | Director Lunda Construction Company

Mark Ziegler | Director Amerect Inc.

Cathryn Camacho Camacho Contractors

Brett Mathiowetz.

The Mathiowetz Construction Co.

Non-voting representatives from the Leadership Blueprint Counsel

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AGC of Minnesota 2019 Annual Report

Safety Services

Member Company Annual Safety Training Sessions conducted by AGC Safety Services:

19 Safety Topics Covered:

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AGC of Minnesota provides training on mobile crane management, rigging inspections, qualified rigger, forklift, aerial lift, drug and alcohol/ reasonable suspicion, and many other topics. In addition, we develop customized training to meet the specific needs of member companies.

AGC of Minnesota 2019 Annual Report

In its 16th year, the Construction Health And Safety Excellence (CHASE) program began in 2003 as a partnership between Minnesota OSHA and AGC of Minnesota. The program is designed to recognize AGC member contractors for their safety programs and performance, while providing incentives for partnership.

It is the longest-running MNOSHA partnership.

Jobsite Safety Audits jointly completed by AGC/MNOSHA staff:

123

CHASE Contractors

43

11

total

recently added

By Division All Highway/Heavy AGC staff completed 44 individual company qualifying partnership jobsite safety audits, and conducted 11 company (written safety program) reviews for CHASE partnership members.

60% Safer Level 3 - Superior Project Safety CHASE Level 3 provides the unique opportunity for MNOSHA partnership on projects that may not have been eligible in the past. Level 3 partnership is for vertical projects lasting between 6 and 18 months, and highway/heavy projects that are under 6 months.

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General Contractor Specialty Contractor

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This year, AGC of Minnesota contractors in the CHASE program performed at the highest level of safety since the program’s inception. With 17,375,726 work hours reported among all CHASE participants, the combined group total case injury/ illness rate was 1.97, 60.6% safer than the Minnesota construction industry 2017 average rate of 5.0.

Level 3 Projects in 2019

21

total jobsites

33

individual contractors

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AGC of Minnesota 2019 Annual Report

Advocacy & Legislative Services AGC of Minnesota represents the construction industry at the state, local, and federal levels. We develop a legislative program, educate elected officials, testify at hearings, and monitor and engage in the rulemaking/regulatory process.

2019 Legislative Session The AGC of Minnesota Legislative Committee met 12 times before and during session, setting priorities and determining strategy.

With over 80 years of combined legislative experience, AGC legislative team members worked on behalf of the industry.

AGC staff and members delivered industry testimony, shaping policy at the state and local levels.

AGC held our first Day at the Capitol, where members heard important updates from MNDOT and DLI commissioners and legislators.

AGC of Minnesota PAC AGC of Minnesota maintains a Political Action Committee (PAC) to provide direct financial support to elected officials who support the industry. AGC members contribute to the PAC, providing resources for, and direct access to, key elected officials.

Thank you for your support of the industry!

AGC of Minnesota 2019 Annual Report

Key 2019 Legislative Issues Thumbs-up

Work Zone Safety: PASSED

Thumbs-up

AGC led and delivered work zone safety legislation allowing road flaggers to call law enforcement if a driver violates the flagger's directive. If the vehicle is located within four hours, drivers can be cited and fined $300. The bill was signed into law in August.

Retainage: PASSED with adjustments

AGC worked cooperatively with multiple stakeholders to develop language that greatly improved the retainage law for all contract participants.

Thumbs-Down

Transportation Funding: STATUS QUO

The House, Senate and Governor Walz agreed to a status quo budget for transportation. No additional resources were approved.

Thumbs-up

Distracted Driving/ "Hands-Free": PASSED

After a decade of advocacy by families and various groups, legislation prohibiting handheld cell phone use while driving was signed into law.

Richard J. Ames Memorial Highway Designation Governor Walz signed a bill designating a route between Jordan and U.S. Highway 61 the “Richard J. Ames Memorial Highway.� Together with his brothers, Dick founded Ames Construction, Inc., headquartered in Burnsville, Minnesota, in 1962.

Dick was honored with the AGC of Minnesota Lifetime Achievement Award in 2006. He was a dedicated AGC member and advocate for the Minnesota construction industry, supporting many industry advancement and promotional causes over the years.

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AGC of Minnesota 2019 Annual Report

Labor & Legal Services

AGC of Minnesota offers insights, research, and advice on labor, legal, and employment matters. We also facilitate disputes among contractors and unions.

AGC’s Labor and Legal services have proven to be a valuable resource, adept at handling a myriad of legal matters. We have always found AGC staff to be responsive, respectful, and extremely thoughtful in their approach to mitigate our exposure and/or defend our position. We are lucky to have this team on our side."

- Cathryn Camacho (Camacho Contractors)

AGC of Minnesota 2019 Annual Report

Labor

Legal & Employment

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Successfully negotiated 10 collective bargaining agreements in 2019

USERS

Appointed 65 employer trustees serving on more than 15 different apprenticeship, Taft-Hartley benefit and ERISA funds

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Held learning events on collective bargaining issues, economic and workforce development, and Taft-Hartley continuing education

Chalkboard-Teacher

Facilitated amicable resolutions with unions and organized dispute panels to arbitrate labor grievances

COMMENTS

Created and hosted the AGC Labor Cabinet to provide industry direction on labor policies and developments.

FILE-SIGNATURE

Created new industry form contracts: Subcontracting, Master Purchase, and ITO (free to members)

university

Created the Wage Theft notice form and guidance, and held an educational seminar featuring MNDOLI and industry experts

Chart-Line

Advocated important industry issues through amicus briefs to Minnesota individual and administrative courts, delivered testimony to the Legislature, met with government officials, and published industry op-eds

Balance-Scale-Left

Hosted the In-House Counsel Forum to discuss industry developments

truck-moving

Hosted educational opportunities to update and educate members on developing issues, including ITO compliance and Sick Leave ordinances

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AGC of Minnesota 2019 Annual Report

Education & Training

AGC is committed to developing members at every level of industry leadership.

Created in 2014, The Leadership Blueprint is designed for emerging leaders looking for effective public speaking and interpersonal development skills. Participants complete a leadership assessment, set goals, report on activities to their peers, and receive personalized feedback. Rounding out the individualized and group learning are sessions on construction industry topics presented by local experts. As of 2019, over 100 emerging leaders have completed the Leadership Blueprint program.

AGC of Minnesota 2019 Annual Report

User-Graduate 17

BOOK-OPEN 147

STP course graduates in the 2018/19 class year. Graduates completed each of the six STP units, including approximately 90 classroom hours.

USERS 19

Students completing STP courses in the 2018/19 class year, covering all six units.

COMMENTS 12

Leadership Blueprint graduates in 2019.

Executive Circle participant openings for this new AGC program offering.

AGC's Supervisory Training Program (STP) is a construction-specific training curriculum developed, updated and field-tested by and for contractors.

Delivered by industry professionals, this comprehensive 6-unit program focuses on the knowledge and skills every supervisor must have to be an effective manager of people, time, equipment, and materials.

New in 2020 is the Executive Circle, an AGC strategic learning and development program that will bring together a limited number of executives to build lasting personal development skills and nurture successful business development strategies.

Executive Circle curriculum will challenge and enrich each participant’s perspective on business values and business practices while providing unequalled opportunity to build valuable new peer networks between and across construction disciplines.

ec executive circle TRANSFORMATIVE LEADERSHIP

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AGC of Minnesota 2019 Annual Report

Networking & Events & Events AGC of Minnesota creates opportunities for members to meet and have fun together.

AGC strives to offer members a variety of opportunities to come together to connect with old friends and meet new ones, to learn from and about each other, and to celebrate your many achievements.

AGC of Minnesota 2019 Annual Report

Construction Summit

Golf Tournament

Member Meetings

In partnership with AWC and NAMC, we hosted the second Minnesota Construction Summit, offering relevant education, exhibits, and chances to network.

It was a beautiful day at Keller Golf Course for this sold out event - a great opportunity for affiliate and contractor members to spend informal time together.

A late afternoon event at Allianz Field included a tour of the facility and a presentation by MnDOT Commissioner Margaret Anderson Kelliher.

Member Visits

Sporting Clays Fundraiser

Recognition Evening

To celebrate 100 years, AGC staff visited over 25 member firms or construction sites across the state and delivered root beer floats made with 1919 Root Beer.

This event is fun for all shooting skill levels. Funds raised through a silent auction and raffles benefit our construction industry scholarship program.

We honored member companies for extraordinary achievements in safety, and also recognized two individuals for their outstanding contributions to the industry.

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AGC of Minnesota 2019 Annual Report

AGC of Minnesota Foundation The AGC of Minnesota Foundation provides financial support to students who have a career interest in construction, and to related organizations that support the Minnesota construction industry.

The great use of life is to spend it for something that will outlast it.�

- William James

AGC of Minnesota 2019 Annual Report

2019 Scholarship Recipients The AGC of Minnesota Foundation awarded scholarships to the following individuals in 2019: Lisa Breitenfield (MN State Moorhead | Construction Management), Colby Buntin (MCTC | HVAC), Tyler Fish (Dunwoody College | Construction Management), Tavia Fulliam (Dunwoody College | Construction Management), Daniel Gannon (Anoka Technical College | Electrician), Aaron Owen (U of M Minneapolis | Construction Management), Justin Primus (U of M Duluth | Civil Engineering), Karli Schmitt (U of M Minneapolis | Construction Management), Isaiah Stueber (U of M Minneapolis | Civil Engineering), Joshua Tomczak (U of M Duluth | Civil Engineering), Adam Wardak (U of M Minneapolis | Construction Management).

Scholarships were also awarded to three Dunwoody College of Technology students through a separate donation from the AGC of Minnesota Foundation. Allen Giller, Olivia Taylor, and Tavia Fulliam are all studying Construction Project Management.

GIVING BACK THROUGH PLANNED GIVING Consider making the AGC of Minnesota Foundation part of your planned giving. By designating the Foundation as a preferred charity in your estate planning, you benefit the entire construction industry in Minnesota through the sponsorship of construction education.

The construction industry is populated with a great many entrepreneurial stories. Those success stories are rooted in personal dedication, sacrifice, education, and opportunity borne of collective activism and industry engagement. Too often, giving back to those who have contributed to our success is an afterthought, when what is needed is foresighted planning - a “road map� showing where to go and how to engage.

Thank you for considering AGC of Minnesota's Legacy Giving option to pass your legacy to the next generation of industry leaders!

Did you know?

Since 1986, the AGC of Minnesota Foundation has awarded 230 scholarships, exceeding $260,000.

Tom McCrossan (C.S. McCrossan, Inc.) awards the AGC of Minnesota 2019 C.S. McCrossan Scholarship to Joshua Tomczak, a civil engineering student at U of M Duluth. The McCrossan family designated the AGC of Minnesota Foundation as a preferred memorial to honor the legacy of Charles McCrossan (1926-2017), and generously donated matching funds.

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AGC of Minnesota 2019 Annual Report

Celebrating the Last 100 Years On December 11, 2018, we kicked off a year of celebrating our Centennial. And what a year it was!

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1 Opening Reception / 12.11.18

We began our 100-year anniversary commemoration in style, chauffeuring guests to the event in a champagne shuttle. With almost 500 attendees, the celebration was held in the same building in which our founders signed the chapter’s AGC charter in December 1918.

2 Family Fun Day + Construct With Us / 01.26.19

Combining a day of fun for our members’ families at Nickelodeon Universe and a hands-on educational event for the public in the Mall of America rotunda, AGC and our trade partners offered a behind-thescenes view of the many skills represented on a typical jobsite.

3 Day at the Capitol / 03.21.19

4 Twins Game / 07.16.19

5 River Boat Cruise / 09.12.19

Touring our historical display, located in the Capitol’s north corridor, was just one stop in a day that included visits with elected officials and learning more about the legislative process.

We cheered the Twins from the Budweiser Deck at Target Field, and honored veterans in the construction industry as they participated in a flag-raising ceremony.

Representatives from Ames Construction, Inc. and Lunda Construction Company gave us a guided tour of the St. Croix River Crossing project from the water as we glided down the river.

AGC of Minnesota 2019 Annual Report

Exploring the Future Our centennial closing event on December 11 will be the culmination of a year in which we visited with members over root beer floats, educated the public about construction careers, cheered on the home team, and shared our rich history with legislators and school children. Looking back on and celebrating the past century has been both educational and entertaining, but now it’s time to look forward.

Hear from Futurist Jack Uldrich Walking on the moon, phones that fit in your pocket (or your watch), electric and self-driving cars, talking appliances, being able to see who is at your front door when you’re thousands of miles away – there was a time when these existed only in cartoons or science fiction. Now they’re part of our world.

What does construction’s future hold? How will technology become an integral part of every jobsite? What skills will the future workforce need?

What new materials will you be working with? Will anything remain the same? These questions and more will be explored by futurist Jack Uldrich as he helps us imagine the next 100 years.

"The farther back one can look, the farther ahead one can see."

- Winston Churchill

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YOUR TRUSTED RESOURCE 525 Park Street, #110 St. Paul, MN 55103-2186 651.632.8929 www.agcmn.org