California Asphalt Magazine Special Advocacy Issue 2017

2017 SPECIAL ADVOCACY ISSUE

THE INSIDE STORY OF THE $52 BILLION TRANSPORTATION BILL

By Russell W. Snyder

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Publisher’s Letter Dear Readers, This issue of our association’s official magazine is devoted almost entirely to the big news from Sacramento: the Legislature passing and the governor signing the biggest overhaul in transportation funding in California history. While this $52 billion package of bills is undoubtedly very good news for our industry, it only happened after many years of hard work and persistence.

Think this isn’t a big deal? Try to remember what you were doing back in 1983. That’s the last time members of the Legislature voted to increase the fuel tax to fix roads. SB1 boosts the gas tax by 12 cents a gallon, and the majority of the money will go directly to fixing pavements at the state and local level. Yes, it’s a big jump, and no one wants to pay more taxes. But this was necessary to address years of neglect and deferred maintenance.

All legislators who stood with us and voted to invest in our state’s future should be commended.

Your association made transportation funding one of the top priorities in our strategic plan in 2012, as well as our 2016 update. As you can see from the timeline of key events published in this issue, there were numerous meetings with legislators and policy-makers, plant tours, Capitol visits, grass-roots activism and other activities to keep this issue at the forefront of the policy discussions in Sacramento. With all the false starts and empty promises we encountered over the years, it would have been easy to get discouraged, but we never wavered from our goal.

We also learned valuable lessons along the way about clarity and consistency of message, and about the importance of compromise. While the big transportation bill is far from perfect, we didn’t want to fall into the trap of allowing perfect to be the enemy of the good.

The final bill emphasizes maintaining our existing infrastructure and investing in the future, and pavements are central to that goal.

Our work is far from done, however. We need to work collaboratively with our elected officials and agency partners to make sure these additional funds get put to work as quickly as possible. That means eliminating needless red tape and bureaucratic hurdles that don’t add value to the project. Our fellow Californians are counting on is to deliver on this promise of better roads, and we need to work together to make it happen.

I would like to personally thank everyone who wrote a letter or e-mail, made a phone call, helped coordinate a meeting with an elected official or contributed to our Political Action Committee.

Your association was very prominent in this successful campaign, and your dues supported those efforts. We should all be proud of what we have accomplished together.

Sincerely,

Don L. Daley Jr. NAPA Director, California California Commercial Asphalt 4

California Asphalt Magazine • 2017 Special Advocacy Issue

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Contents

JOURNAL OF THE CALIFORNIA ASPHALT PAVEMENT ASSOCIATION

Volume 21, Issue 3

4

Publisher’s Letter

8

The Big Fix

The biggest transportation funding overhaul in state history almost didn’t happen. Here’s an insider account of how the drama unfolded.

30

CalAPA Spring Conference

34

Industry News

Page 8

Nearly 200 industry and agency representatives attended the CalAPA Spring Asphalt Pavement Conference and training session on April 12-13 in Ontario

Page 30

On the Cover:

Front cover illustration created by Yesenia Ramirez and Aldo Myftari.

CALIFORNIA ASPHALT PAVEMENT ASSOCIATION www.calapa.net

HEADQUARTERS: P.O. Box 981300 • West Sacramento • CA 95798 (Mailing Address)

1550 Harbor Blvd., Suite 211 • West Sacramento • CA 95691 • (866) 498-0761 EXECUTIVE DIRECTOR: Russell W. Snyder, CAE, rsnyder@calapa.net MEMBER SERVICES MANAGER: Sophie You, syou@calapa.net TECHNICAL DIRECTOR: Brandon Milar, P.E., bmilar@calapa.net GUEST PUBLISHER: Don L. Daley Jr., NAPA Director, California - California Commercial Asphalt PUBLISHED BY: Construction Marketing Services, LLC • P.O. Box 892977 • Temecula • CA 92589

(909) 772-3121 • Fax (951) 225-9659 GRAPHIC DESIGN: Yesenia Ramirez CONTRIBUTING WRITERS: Russell W. Snyder, CalAPA ADVERTISING SALES: Kerry Hoover, CMS, (909) 772-3121 • Fax (951) 225-9659 Copyright © 2017 – All Rights Reserved. No portion of this publication may be reused in any form without prior permission of the California Asphalt Pavement Association. California Asphalt is the official publication of the California Asphalt Pavement Association.

This bimonthly magazine distributes to members of the California Asphalt Pavem­­ent Association; contractors; construction material producers; Federal, State and Local Government Officials; and others interested in ensuring that asphalt remains the high quality, high performance pavement choice in the state of California.

6

California Asphalt Magazine • 2017 Special Advocacy Issue

The biggest transportation funding overhaul in state history almost didn’t happen. Here’s an insider account of how the drama unfolded.

Assemblywoman Fiona Ma, D-San Francisco, tours a Vulcan Materials plant in Pleasanton, Calif.

8

Assemblywoman Fiona Ma, D-San Francisco, speaks about transportation funding at a CalAPA conference in Sacramento.

CalAPA leaders, meeting in Sacramento, place transportation funding front-and-center in the association’s updated Strategic Plan.

2012 1 ∙ 10 ∙ 12

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2011

3 ∙ 21-22 ∙ 12

Speakers at a transportation forum held in Sacramento lament that no transportation funding solution is on the horizon because of the state budget crisis.

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I re-read the headline on the draft alert I’ve prepared bearing the good news: “LEGISLATURE APPROVES LANDMARK $52 BILLION TRANSPORATION BILL AFTER FURIOUS LOBBYING EFFORT; GOVERNOR PLEDGES

By Russell W. Snyder TO SIGN IT.” On the right side of

It’s getting late in the evening my monitor, the alternate version on a Thursday, and two very of history is ready and waiting to different versions of deliver a much different history are staring back story: “LEGISLATURE at me from my computer FAILS TO PASS monitor. Each electronic LANDMARK $52 BILLION document carries the TRANSPORTATION familiar red “Member BILL AFTER FURIOUS AIert” banner to signify LOBBYING EFFORT; WAY an urgent communication FORWARD UNCLEAR.” to members of my During the course of the industry group, the evening, my cursor will California Asphalt hover over both as the Pavement Association. fortunes of “The BIG Fix” I’ve prepared scores of ebb and flow. Either way, Above: Assemblywoman Fiona Ma, D-San Francisco, speaks about transportation funding at the 2011 CalAPA Fall Conference them over the years, but it’s big news. I’m ready. in Sacramento. this is the most important My phone buzzes. It’s one by far. Events are another text from our moving quickly, however, and the to a makeshift newsroom. indefatigable lobbyist, Jeff outcome is very much in doubt – I’m monitoring e-mail, social Sievers. “Senate bringing up a “nail-biter” as the Los Angeles media, TV news broadcasts and SB1 now.” This is it – the big Times called it. A $52 BILLION receiving regular text updates showdown, I think to myself. nail-biter. from our Capitol lobbyists. The Years of campaigning, false

For that reason, I’ve dusted remnants of my take-out dinner starts, grass-roots activism, off an old trick from my previous are off in a corner. On the left broken promises, and persistence career as a journalist: writing side of my computer monitor, in the face of impossible odds.

2 ∙ 28 ∙ 11

two versions of the same story so when a big event happens, like this looming up-or-down vote in the Legislature on a historic transportation bill, I’ll be prepared to deliver the news quickly.

I’m working out of my home-office in a Sacramento suburb, which I’ve converted

Gov. Jerry Brown releases his proposed budget for 2012-13, and announces a reorganization of transportation departments, consolidating Caltrans and other transportation-related agencies into a smaller California State Transportation Agency (formerly the Business, Transportation & Housing Agency).

California Asphalt Magazine • 2017 Special Advocacy Issue

Brian Maienschein, a candidate for the 77th Assembly District seat, tours a California Commercial Asphalt facility in San Diego County. He later won the seat.

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10 ∙ 25 ∙ 12

Rush, California $18 million for construction and has experienced acquisition of a state highway growing pains ever system. That’s $18 million for the since. Early on, state entire state. The first highway leaders realized that construction contract was let in getting around such 1912 on Highway 1, otherwise a vast and rugged known at El Camino Real in state would require a a nod to the state’s Spanish robust transportation heritage and string of Spanish system, which up to Missions that run up the spine that point was little of California. Highway 1, later more than dusty trails to be known as Pacific Coast connecting farms Highway, would follow a similar Above: CalAPA members participate in a 2012 strategic planning session in Sacramento. and faraway towns. north-south path along the state’s In 1895, the “Bureau biggest geologic feature, the It all comes down to a vote. of Highways” was Pacific Ocean.

Politicians can flip-flop, or “spin” formed, which basically consisted

Still, transportation in the almost anything, but it’s hard to of three men who traveled early 1900s California was a run away from a recorded vote. around the state in a buckboard make-shift affair. Civic boosters It’s a stark choice – yes or no – crudely mapping out routes that and elected officials knew that and it is recorded for posterity. It ultimately would become the to expand the transportation will be recounted in newspaper state’s system of freeways and system to match the state’s editorials and in campaign ads highways. In 1897 the Department growth trajectory would require (“attack ads” if they are paid for of Highways was created, and money, and lots of it. Going by a political opponent). A vote in 1907 the State gets it on the record, and that Department of time is now at hand. Still, as I Engineering. The looked at my phone, and watched era of road-building the grainy webcast images of had begun. There lawmakers milling about the was just one Senate floor, I could hardly problem – and it believe it. I grab my phone and was a big one. How text back, “Go! Go! Go!” and add to pay for it? a goofy smiley face emoji. This is

The California it. It has to be. We’ve come too far Legislature passed to fail now. the first state

highway bond, in

1909. The following Above: State Sen. Mark DeSaulner, Chairman of the

The story of “The BIG Fix” year, voters Senate Transportation & Housing Committee (second from left) is perhaps as old as California approved the meets at his Capitol office in 2013 with CalAPA members (from itself. Rushed into statehood “State Highways left to right): Crystal Howard with EnviroMINE, Marc Mitchell with Alon Asphalt and Becky Wood with Teichert. in 1850 following the Gold Act,” providing

CalAPA Legislative Committee hosts a “Fly-in” to the state Capitol in Sacramento to meet with legislators and discuss transportation funding. Among those who met with the CalAPA delegation were state Sen. Mark DeSaulnier, D-Concord, Chairman of the Senate Transportation & Housing Committee.

CalAPA Executive Director Russell Snyder poses a question to the panel of a packed transportation forum in Sacramento on behalf of CalAPA member Rene Vercruyssen of Knife River: “Why does it seem like ‘transportation funding’ is a euphemism for ‘everything except roads?’”

California Asphalt Magazine • 2017 Special Advocacy Issue

10 ∙ 23 ∙ 13

1 ∙ 29 ∙ 13

2013 The CalAPA Board of Directors , meeting in Sacramento, approve a revised method of collecting contributions for the association’s Political Action Committee fund.

9

back to voters, year after highways, and also the cost of 7 cents a gallon, where it stood year, requesting approval building and maintaining them for two decades. In 1983, the for transportation bonds also grew. Over the years, the fuel tax was raised to 9 cents a (essentially loans that must be fuel tax, along with other fees, gallon, but as the years rolled paid back later) was clearly not such as vehicle registration by it was clear politicians had sustainable to accommodate the fees, also rose, but haltingly. little stomach for more. The boom times that were clearly Over time, politicians found that environmental movement was ahead. An efficient system of raising fuel taxes and other fees in full swing, calling attention to moving people, goods the negative impacts of and services around the more vehicles on the road, state – and particularly particularly air pollution goods to market – was caused by millions of viewed as essential to combustion engines. the state’s prosperity and Communities also were quality of life. asking tough questions

In 1923, California about how freeways and followed the lead of highways fit into their Oregon and adopted neighborhoods, and the a whole new way of big interstate building paying for transportation. boom was starting to Basically, it was a “userwane. Still, Californians pays” model, based on loved their cars, and Above: Assembly candidate Bill Dodd (center) tours a Syar Industries plant in 2014 accompanied by Jim Syar (right) and Mike a fuel tax. The idea was it remained the prime Herlax (far right). Also attending (from left): Erin Russell and Syar’s those who used the roads mode of transportation.

Mike Burneson. would help pay for them.

Congestion grew worse, The more you drove, and and suburbs and exthe more fuel you consumed, the were very conspicuous and they burbs sprawled farther from more you paid. If you drove less, were loath to do so. Fuel taxes job centers. The conventional you paid less. If you didn’t drive were raised by a penny and a wisdom was the state was not at all, you didn’t pay anything, half in 1947, and to 6 cents a going to be able to build its way although the cost of fuel was gallon in 1953. By 1956, President out of congestion, but still people imbedded in the price of the Dwight Eisenhower, who had demanded action. homes you purchased, the goods seen first-hand the importance

By the late 1980s, with the you consumed. It was elegant in of good roads for military and Legislature in no mood to vote its simplicity, easy to administer, commercial uses during World for more fuel taxes, the issue was and it worked well for most of War II, signed the Federalpunted to voters. The Legislature the 20th century. The fuel tax that Aid Highway Act, and the big placed a measure on the June 5 debuted in 1923, by the way, was interstate highway building boom ballot, known as Proposition 111, 2 cents a gallon. was underway. and it was dubbed the “Traffic

As California continued

The Legislature didn’t return Congestion Relief and Spending to grow, so did the need for to the issue of the fuel tax until Limitation Act of 1990.” Among additional roads, freeways and 1963, raising it another penny to other provisions, it raised truck

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12 ∙ 20 ∙ 13

[ Continued on page 12 ]

CalAPA Executive Director Russell Snyder interviews Transportation California Executive Director Will Kempton for the annual forecast issue of CalAPA publication “California Asphalt” magazine. The article appears in January 2014.

10

2014 Transportation California Executive Director Will Kempton delivers the keynote address to the CalAPA Annual Dinner in Los Angeles.

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1 ∙ 16 ∙ 14

2013

CalAPA Executive Director Russell Snyder meets with California State Transportation Secretary Brian Kelly to discuss transportation funding, other issues.

CalAPA Legislative Committee hosts a “Fly-in” to the state Capitol in Sacramento to meet with legislators and discuss transportation funding. Among those who met with the CalAPA delegation was Assemblywoman Lorena Gonzalez of the 80th Assembly District.

California Asphalt Magazine • 2017 Special Advocacy Issue

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CalAPA member and NAPA State Director Don L. Daley Jr., is awarded an “Asphalt Ambassador” award by NAPA for his leadership in Legislative matters, including advocating for plant tours for elected officials. The award is presented to Daley at the NAPA Annual Meeting in Florida.

4 ∙ 15 ∙ 14

3 ∙ 4-5 ∙ 14

weight fees by 55 percent components. Today, and increased the state’s 22 of California’s 58 fuel tax by 5 cents per counties – the most gallon phased in over four urbanized areas of the years, reaching 18 cents a state – are so-called gallon in 1994. And that’s “Self-Help Counties” where it has remained to and they generate this day, 23 years later. about 60 percent of the

Since 1994, the total dollars devoted to population of California transportation, according has continued to to the Self-Help Coalition increase. At statehood, in and the California State 1950, the state had about Association of Counties.

92,000 residents. By Several such measures 1950 it was home to 10.5 were on the Nov. 8, million. By 1990, when 2016 ballot, and nearly Above: Don L. Daley Jr. with California Commercial Asphalt (left) voters were pulling the all passed, no small with NAPA Executive Vice President Jay Hansen at a NAPA Annual lever for Proposition 111, feat considering the Meeting in Florida in 2014. NAPA presented Daley with an “Asphalt Ambassador” award for his support of legislative activities. the state’s population had California Constitution ballooned to more than requires tax increases 29 million, and today it state system of freeways and to achieve a two-thirds is fast approaching 40 million. highways, which only account majority to be approved.

And the vehicles on the road, for a fraction of the paved roads

Still, at the state level, as well as the people who drive in the state. More people, more transportation funding remained them, has followed a similar cars and trucks, more driving. stagnant, and for politicians trajectory. Recent statistics But building to accommodate the issue became a pariah. from the state’s Department of all of those trips has remained It’s instructive at this point to Motor Vehicles counted more relatively flat, and with no remember that anyone who than 29 million Californians increase in the gas tax since holds public office views the licensed to drive, and more 1994 the buying power of those world though the lens of the than 34 million registered funds that do come is worth next election. Positions will be vehicles. The miles driven also about half of what it was in the scrutinized, but positions can follow a steady upward trend, 1990s. Imagine trying to survive be changed. Votes cannot. And except for a slight dip during today on your 1994 salary. so every politician, when the the last economic downturn.

Into this void stepped local clerk opens the roll, thinks about According to the California governments. Led by Santa how their vote will be viewed by Department of Transportation, Clara County, local leaders put voters in their district during the also known as Caltrans, total forward ballot measures to next campaign season. And more vehicle miles traveled in 1990 raise local sales taxes to pay for to the point, before they raise a was 139 billion. In 2016 the transportation improvements, hand or press a button to vote department estimated it reached not only roads but transit “aye” or “no,” they are thinking 195 billion. And that’s just on the systems and other mobility about what it will sound like in

Assemblywoman Lorena Gonzalez, a Democrat representing the 80th Assembly District in the San Diego area, tours a California Commercial Asphalt facility. Her PPE includes, at her request, a pink hard hat.

12

CalAPA Executive Director Russell Snyder meets in Sacramento with Assembly Speaker Toni Atkins, D-San Diego, to discuss a way forward on transportation.

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2014 Assemblyman Scott Wilk, 38th Assembly District, tours a Vulcan Materials plant in Sun Valley.

California Asphalt Magazine • 2017 Special Advocacy Issue

a campaign ad by an opponent.

You know the ones – take the most unflattering photo, make it black-and-white, and declare how the vote is evidence they are “out of touch” or “wasting your money.” Think this is overblown?

Just ask Gray Davis. A career politician, the former chief of staff to Gov. Jerry Brown during the first Brown administration was elected to the Assembly and later statewide offices until he became governor himself, in 1999. The Democrat easily won re-election in 2002, but an energy crisis and economic downturn forced his administration to make some difficult budget choices, including a big increase in car registration fees. Popular indignation over the hated “car tax” fueled a recall election, and for the first time in state history a sitting governor was removed from office. Remember, he was not arrested for corruption. He didn’t assault anyone. He supported raising vehicle registration fees. It became a rallying cry for the man who replaced him as governor in the recall election, movie actor Arnold Schwarzenegger.

Politicians have long memories for things like this, so conventional wisdom around the Capitol was there would never be another transportation bill in the Legislature, at least not a big one.

Sure, there would be little tweaks here and there, but The BIG Fix? It was a non-starter. Indeed, every major transportationrelated measure since the 1980s involving significant amounts of money has been passed at the ballot box, not on the floor of the Senate or Assembly. After the 1989 Loma Prieta earthquake in San Francisco, for example, a measure known as Proposition 120, the Seismic Retrofit Bond Act, generated $300 million to seismically strengthen thousands of freeway and highway bridges all across the state.

SB1: What does it all mean?

By Russell W. Snyder

The mega-transportation bill known as Senate Bill 1 is part of a package of bills passed by the Legislature aimed at addressing California’s roadrepair crisis. SB1 is the centerpiece of the package, and it includes tax and fee hikes devoted to transportation that are scheduled to go into effect later this year. What follows is a basic rundown of the bill and what it may mean for the asphalt pavement industry.

An estimated 60 percent of the $5 billion per year in new money is expected to flow to maintain freeways, highways and local streets, according to Caltrans estimates. One projection is that the Caltrans annual maintenance budget may double. Coupled with other funds from 22 counties that have voted to tax themselves to improve transportation, a substantial influx in funds to improve pavements is on the way.

How soon will it arrive in the form of projects?

Since the money won’t show up in state coffers until early 2018, it will take a while for that money to work its way through the bureaucratic process that leads to advertised projects.

However, government officials are already under enormous pressure from Above: Pro-roads forces staged a rally on the elected officials to show steps of the State Capitol on April 5 to urge the that this money is being put Legislature to vote on SB1. to work quickly. Pavement improvement projects, which are the quickest and easiest to design and administer, may be the early beneficiaries of this windfall as 2018 unfolds.

Specifically, SB1 establishes a new “Road Maintenance and Rehabilitation Program,” in keeping with the Brown Administration’s “fix it first” strategy of investing in maintaining existing infrastructure over new construction. The bill contains a hike in the state gas tax, diesel fuel tax, a new fee on electric vehicles, a transportation improvement fee on vehicle registrations, and a diesel sales tax. The companion bills are SB132 and SB496, as well as Assembly Constitutional Amendment 5, authored by Assemblyman Jim Frazier, D-Oakley, and state Sen. Josh Newman, D-San Dimas, that includes language to protect transportation funds from being used for other purposes.

Preliminary estimates are that the bills will generate $3.24 billion annually to the state for the first 10 years. Of the $3.24 billion annually, 50 percent will be allocated to Caltrans for maintenance of the state highway system, including the State Highway Operation and Protection Program (SHOPP), where many of the pavement maintenance projects done by the asphalt industry originate. The other 50 percent will be allocated to cities and counties via standard distribution formulas. Every city and every county in California will receive additional money for roads.

Eligible projects for the funds listed above include road maintenance and rehabilitation, safety projects, railroad grade separations, complete street components, pedestrian and bicycle safety projects, transit facilities, and drainage and storm-water capture projects, and traffic control devices.

The revenue for the program will be generated by an increase in the base gas tax of 12 cents per gallon, effective Nov. 1, 2017, plus a reset of the “gas-tax swap” currently administered by the state Board of Equalization.

That tax of 17.3 cents per gallon will be set effective Jan. 1, 2020. The total estimated tax increase at final implementation will be 19.5 cents per gallon.

California Asphalt Magazine • 2017 Special Advocacy Issue

13

Significantly, for the first time in state history the gas tax will be adjusted annually for inflation. A Road User Vehicle Fee will generate an estimated $1.63 billion a year over 10 years, coming from a fee on vehicles ranging from $25 to $175 based on the value of a vehicle registered with the Department of Motor Vehicles). These fees will generate $1.03 billion per year for the Road Maintenance and Rehabilitation Program, as well as $250 million for a Congested Corridor Program and $350 million to Transit capital improvements.

A diesel sales tax increase of 4 percent will kick in on Nov. 1, 2017. It will generate an estimated $350 million per year, with 0.5 percent of the money devoted to passenger rail. The remainder of the money, about $300 million per year, will be funneled to Regional Transportation Planning Agencies for their State Transit Assistance programs.

Zero-emission (electric) vehicles, which haven’t paid into the Highway Trust Fund via fuel taxes, will be assessed a $100 per vehicle charge (generating an estimated $20 million per year) starting in 2020. A study will be conducted by U.C. Davis on how to get electric vehicles to pay their fair share to maintain the roads.

During the economic downturn of recent years, the state has taken loans from transportation funds to help bail out the state general fund budget. SB1 requires that outstanding loans to the General Fund from various transportation special funds, totaling $706 million, be repaid over three years. $225 million of that money will go to the Caltrans State Highway Operation and Protection Program (SHOPP), and $225 million to local agencies.

Much was made during the run-up to the SB1 vote about government efficiency. SB1 contains numerous “reform” components, including directing the California Department of Transportation (Caltrans) to generate $100 million in departmental efficiencies, with those funds being folded back into maintenance activities. The bill also creates a position of Inspector General, subject to Senate confirmation, to audit how funds are spent and investigate waste and abuse. The California Transportation Commission will be granted additional oversight responsibilities. Truckers get a break via “useful life” language that allows truckers subject to future air-quality regulations can get a return on their investment before being asked to replace or modify a vehicle.

Critics complained about side-deals hammered out with some legislators as part of securing enough votes for SB1, but longtime Capitol watchers noted that negotiations are a longstanding part of the legislative negotiation process. A companion bill, SB132, will allocate $427 from the State Highway Account to the Riverside County Transportation Efficiency Corridor, and five projects will benefit: • $180 million for the 91 Toll Connector to Interstate 15 North • $108.4 million for the Jurupa Avenue Grade Separation project; • $84.45 million for the McKinley Grade Separation project; • $48 million for the Interstate 15 / Limonite Interchange Project • $6.3 million for the Hamner Bridge Widening.

The bill also requires the Secretary of Transportation to convene a task force of state, local and private-sector experts to accelerate the schedule of delivery for these and other projects in the region.

Another “trailer bill,” SB 496, was introduced by state Sen. Anthony Cannella, R-Ceres, the lone Senate Republican to vote for SB1. The bill includes indemnity protection language for designers.

A measure to insert additional language in the California Constitution, Assembly Constitutional Amendment 1, introduced by Assemblyman Jim Frazier, D-Oakley, will prohibit the Legislature from borrowing revenues from fees and taxes established in SB1, and mandates that any revenues derived from the Transportation Improvement Fees in SB1 to be used solely for transportation purposes. It also exempts new revenues in SB1 from counting against the state appropriation limit known as the “Gann Limit,” for the anti-tax crusader Paul Gann, who championed a voter initiatives along with Howard Jarvis.

Sources: Legislative analysis, Transportation California, California Department of Transportation, Governor’s Office.

Transportation advocates, meanwhile, lamented that clever bureaucrats managed to find inventive ways to divert transportation dollars to other purposes, so Proposition 42 was born. The measure, placed on the March 5, 2002 primary ballot, became known as the transportation “lock box.” It placed language in the state Constitution to protect gastax dollars were used for transportation-related purposes at the state and local level based on long-established formulas. It was approved by 69 percent of voters. Supporters would later lament that the “lock box” had loopholes that were exploited during the state budget crisis years in 2009-12.

That necessitated the passage of another ballot measure, Proposition 22 on the Nov. 2, 2010 ballot, to prevent, among other things, the use by the state of funds intended for local governments, including transportation programs.

When Schwarzenegger became governor, economic storm clouds were on the horizon, so he got behind a group of ballot initiatives on the Nov. 7, 2006 ballot to generate money for infrastructure.

The most prominent of the measures, Proposition 1B, was called the “Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006.” It promised a great deal in committing the state to sell $19.925 billion in general obligation construction bonds.

Again, the measure, which was placed on the ballot by the Legislature, continued the state’s drift away from the “pay as you go” model and toward loans for infrastructure improvements that would be paid in later years. The non-partisan Legislative Analyst Office said the Proposition 1B [ Continued on page 16 ]

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California Asphalt Magazine • 2017 Special Advocacy Issue

Herrmann Equipment and JB Bostick Company Left: Jim Bostick, JB Bostick Company and Mike Allen, Herrmann Equipment Inc. posing with new Bomag/Cedaripids CR552 paver in Anaheim.

Below: Another new Bomag/Cedaripids CR552 rubber tired asphalt paver at JB Bostick, Inc.’s Roseville branch.

JB Bostick Company (JB Bostick) is a well-known name in the California paving industry. Since 1969, JB Bostick has been paving streets, highways and large scope HOA projects in the state of California. They have two branches located strategically in Anaheim and Roseville.

JB Bostick specializes in complete asphalt removal and replacement, petromat overlays, and pulverization.

The company recently purchased two brand new Bomag/Cedarapids CR552 rubber tire asphalt pavers from Herrmann Equipment Co. They utilize their new Bomag/Cedarapids CR552 to perform full-width paving applications such as airports, interstates and state highways, industrial paving projects, and major county road and highway construction.

Jim Bostick has been leading the way in the asphalt paving industry for almost 50 years, and he has witnessed many advances in the equipment industry. “The equipment has come a long way, but for me, this business is about relationships,” says Bostick. “I just can not say enough about Mike Allen from Herrmann Equipment. He is extremely knowledgeable concerning his entire product line, and I don’t think there is anything he does not know about these pavers.” Bostick also points out that Mike goes above and beyond by personally demonstrating every machine that Bostick is interested in, going as far as to train and instruct the entire crew. “Mike has spent countless hours with our company personnel, and he does not stop until he is satisfied that we are fully comfortable with the operation of each machine,” says Bostick. “Herrmann Equipment has also helped us experience less downtime by doing a detailed pre delivery inspection before the paver is delivered to us. We still have a 13-year-old Cedarapids 552 still working hard for us out in the field. I have always enjoyed working with Herrmann Equipment, and I have never met a representative in the industry that is more positive and fair. Mike and his wife, Jackie are always there for us after the sale with service and parts, eager to keep us up and running, and in this business that is what it is all about.

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2014

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Lt. Gov. Gavin Newsom is the keynote speaker at the CalAPA Annual Dinner in Los Angeles, and fields questions about the importance of transportation to the state’s economy and quality of life.

2015

CalAPA Executive Director Russell Snyder interviews California Alliance for Jobs Executive Director and California Transportation Commissioner Jim Earp for CalAPA’s “California Asphalt” magazine.

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Bill Dodd, a candidate for Assembly, tours a Syar Industries facility in Vallejo personally conducted by Jim Syar. Dodd later won the seat, and eventually was elected to the state Senate representing the area.

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loans ultimately would cost the Act for the 21st Century.” The particularly road construction, state $38.9 billion to pay back. signature piece of the measure was taking a beating. Virtually When the state slipped further was an 800-mile high-speed no construction company in into recession, Jerry Brown, back rail project running down the California was immune, and for his second stint at governor, spine of California, embraced layoffs and cutbacks were stood firm behind a budget by the Brown administration, increasingly common. The gimmick that used transportation that has since been dogged by decline in construction activity dollars to repay the was State and local general obligation bonds, agencies lamented something that had that funds to maintain never been done in state existing infrastructure history. Transportation were drying up, and advocates howled. the aging system was

The measures listed really beginning to show above were fairly nonthe wear and tear. In controversial and resulted report after report, white in real transportation paper after white paper, improvements, although the dire convergence policy wonks continued to of factors – an aging argue about how the state system, growing Above: Assemblyman Jim Frazier, Chairman of the Assembly Transportation Committee (center), meets with Brian Handshoe was becoming unmoored demand, and not enough with Kenco Engineering (left) and Len Nawrocki of Valero at the from its historic “usermoney to maintain 2015 CalAPA Capitol “Fly-in.” pays” model to “someone it – was creating a in the future will repay “perfect storm” that was the loans” model, or worse, the controversy. The cost estimates battering the state’s roadways. “we’ll continue to let things fall to build the bullet train have Not spending a dollar today apart” model. “Sustainable” escalated, and it has sparked in maintenance could cost $10 is a favored term used by conflict between the state and tomorrow if the roadway needs environmentalists, and it was federal government about how to be rehabilitated, lawmakers adopted by the infrastructure to pay for it. Nearly a decade were told. Even temporary lobby. Letting our infrastructure since it was approved by voters, injections of government cash, crumble around us in not the project has broken ground such as the federal “American sustainable and will saddle future in the Central Valley but it is Recovery & Reinvestment Act of generations with the bill. not clear if it will ever get built 2009,” popularly known as the

The notable exception as originally envisioned. The “Recovery Act,” were one-off to the ho-hum blandness of project chief since its inception, measures that generated some infrastructure funding proposals Jeff Morales, a former Caltrans transportation construction was Proposition 1A, part of that director, announced his activity but only delayed package of bonds on the Nov. resignation in April. difficult decisions. A financial 8, 2008 ballot. It was dubbed

By 2010, the state was firmly crisis overshadows everything, the “Safe, Reliable Highmired in the “Great Recession,” including prudent investments Speed Passenger Train Bond and the construction industry, in the future.

Assembly Speaker Toni Atkins, D-San Diego, speaks at a transportation forum in Sacramento and unveils her own “fix the future” comprehensive plan to improve transportation, which includes a plan to inject $2 billion more per year in transportation funding.

California Asphalt Magazine • 2017 Special Advocacy Issue

The CalAPA Legislative Committee hosts a “Fly-in” to the State Capitol in Sacramento, including a meeting with state Sen. Jim Beall, D-San Jose, new chairman of the state Senate Transportation & Housing Committee, and Assemblyman Jim Frazier, D-Oakley, chairman of the Assembly Transportation Committee.

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Contributing to the “perfect Highly Improbable,” by Nassim below $3 per gallon. And storm” was the introduction Nicholas Taleb, a Black Swan they stayed there. Coupled of high-mileage and electronic is as the title suggests the big with improving job prospects, vehicles. As prices at the thing that no one sees coming. the unexpected windfall put pump rose past $4 a gallon, It could be planes flying into consumers in a better mood and Californians flocked to more skyscrapers or a stock market state policymakers willing to fuel-efficient vehicles, and the crash. In transportation discuss the undiscussable – the 50-miles-per-gallon Toyota Prius circles, the Black Swan was possibility of raising the state’s became a top seller in fuel tax for the first time California. Automakers since George Deukmejian began rolling out allwas governor and Ronald electric cars, such as Reagan was president. the Nissan Leaf and Still, as 2012 and 2013 an upstart company, rolled around, it was just California-based Tesla, talk. No serious proposals brought to market an were being put forward. expensive but eyeStill, in Sacramento, talk catching 100 percent is a form of progress, electric sedan that carved and must happen before out a niche thanks to action occurs. Talk (and heavy government listening) has value in Above: The CalAPA delegation meets with state Senate Transporsubsidies. This further policy-making. It takes tation & Housing Committee Chairman Jim Beall at his Capitol placed stress on the time to tease out the office during the 2015 “Fly-in.” already anemic Highway political posturing from Trust Fund and caused good government policy. further hand-wringing among an unexpected and dramatic Early on in these discussions, transportation planners. drop in oil prices. Coming everything was on the table,

As the state, and the just a few years after dire including another ballot nation, slowly clawed itself predictions of “Peak Oil” and measure, bonds, car registration out of the Great Recession, inevitable shortages, and high fees, a mileage surcharge, and transportation advocates began prices, a sudden worldwide even a fuel tax. With prices at to renew calls to address the glut in oil, driven by new the pump near historic lows, transportation funding crisis, discoveries and new extraction when adjusted for inflation, and the jury-rigged system technologies, put prices in a raising the fuel tax was actually that had evolved over the tailspin. Californians pay some being seriously discussed. years that few understood of the highest prices at the

At this juncture, it should and even fewer could explain. pump, partly due to clean fuel be noted that there were many, As these discussions were regulations, but pump prices many voices involved in this taking place, along came a that appeared to be heading debate. Transportation advocates, Black Swan. Named in this toward $5 per gallon started broadly, included a multitude instance for the book “The dropping and dropping again, of interest groups, including Black Swan: The Impact of the below $4 per gallon and then construction trade unions,

Gov. Jerry Brown announces the creation of a special session of the Legislature devoted to transportation shortly after transportation funding fails to be included in any meaningful way in the state’s 2015-16 budget.

In a “Member Alert” communication, the CalAPA Legislative Committee calls upon CalAPA members to contact their elected officials in Sacramento and Washington on transportation funding. “After years of persistent nagging

by CalAPA members and other pro-transportation advocates,” the Member Alert states, “the issue of California’s woefully underfunded road network finally appears to have risen to the top of the public policy debate.”

California Asphalt Magazine • 2017 Special Advocacy Issue

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2015 Five Republican members of the Assembly Transportation Committee attend a tour of the Teichert Perkins Plant in Sacramento.

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the trucking industry, some fits and starts, construction trade but by 2013 it was clear associations, including there was momentum CalAPA, and even users building. By longstanding of the transportation agreement, transit system, such as logistics support would be part of companies. Prominent any big transportation entities that have long deal, and there would supported transportation need to be provisions investment, including to entice the support Transportation California of environmentalist, and the union-employer cyclists, social justice Above: California State Transportation Agency Secretary Brian backed California Alliance backers, rural interests, Kelly in a 2015 meeting in his office with CalAPA. for Jobs, based in just to name a few. The Northern California, were anti-tax lobby pulled very prominent, and a newcomer, were falling apart. The reports out the bullhorns, insisting that the Southern California garnered widespread media there was enough money to Partnership for Jobs, came on coverage. A big lift on a complex meet existing transportation line just as the transportation topic like transportation is a needs if waste and inefficiency funding debate was heating up. cumulative effort, and everyone were curtailed. The nonVarious organizations activated who contributed in ways large partisan Legislative Analysis their members in different and small were essential to the Office weighed in, concluding ways, with demonstrations, overall campaign. that the mammoth California letter-writing and phone call

Back in Sacramento, Department of Transportation campaigns, rallies and more. legislative staffers, lobbyists was overstaffed by thousands CalAPA members hosted several and others continued to confer of positions. The Brown plant tours for key elected to sketch out the broad outlines administration responded, officials, which were very wellof The BIG Fix, and then slowly reorganizing its transportationreceived. Public works officials fill in the details. Infrastructure related agencies, ordering an helped tremendously, not by in general, and transportation independent review by the directly campaigning for more in particular, had historically Smart State Transportation money, but providing credible been a bipartisan issue, bringing Initiative at the University of information about how the lack together unions and employers, Wisconsin, and publishing public of proper investment was having farmers and soccer moms. scorecards of improvements a negative impact on the thing Everyone felt the pain, and being made. people notice most, the condition The BIG Fix would need to be

By the time Assembly of the pavements they drive on. a shared sacrifice. In today’s Speaker Toni Atkins stepped TRIP, a national transportation increasingly polarized political to the stage of a packed research group, released climate, the notion was almost transportation forum in periodic reports that validated quaint, but it was nevertheless Sacramento on Feb. 4, 2015, what people were seeing in pursued relentlessly. The effort the buzz was unmistakable. their daily commutes: the roads started out haltingly, with She unveiled her own

An umbrella group, the “Fix Our Roads” coalition, is formed to campaign for the Legislature and the Governor to take action on transportation funding. CalAPA and many other organizations and individuals endorse the group. The group establishes a social media presence in July and a web page in August.

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Gov. Jerry Brown holds a news conference in the Port of Oakland to talk about the importance of transportation, but says little beyond that he will sign whatever bill the Legislature sends him.

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The Senate Transportation & Housing Committee holds a hearing on transportation funding at the Capitol in Sacramento.

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2015 TRIP, a national transportation research group, issues a report: “Bumpy Roads Ahead: America’s Roughest Rides and Strategies to Make our Roads Smoother.”

California scores among the lowest nationally in several measures of road quality.

The report and others issued by TRIP garner widespread media coverage.

California Asphalt Magazine • 2017 Special Advocacy Issue

[ Continued from page 18 ]

CalAPA Executive Director Russell Snyder meets with California State Transportation Secretary Brian Kelly to discuss the way forward on transportation.

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Lt. Gov. Gavin Newsom tours a Vulcan Materials plant in the San Diego area.

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legislative package on was the pugnacious transportation, which chair of the Assembly she said was designed Transportation Committee to “fix the future,” and and a former contractor. proclaimed it was time To require legislators to address the issue to take a tough vote on once and for all. While raising taxes, he reasoned, ambitious, her proposal it should be sufficiently was deemed by many large to generate transportation experts improvements that will to be not large enough be noticed by voters. “Go to make a noticeable big or go home,” he said dent in the growing on a number of occasions. problem. Not long He introduced his own bill Above: Lt. Gov. Gavin Newsom (center) tours a Vulcan Materials after, the Legislature that would have generated plant in Southern California in 2015. became distracted by a an additional $7 billion leadership fight, and her per year in new revenues, bill went nowhere. But it was a

In a significant development compared to the governor’s start, something to build on. the governor introduced plan that came in around $3

In 2016, the message elements of his own billion. Legislative budget started to congeal around transportation plan into his writers eventually stripped something every Californian proposed state budget. As the budget of the governor’s could relate to: fix the roads. always, it is the revenue side of transportation elements, but Sure, there were many other the ledger that was the hard part. Brown’s plan was on the policy esoteric formulas to be The governor’s plan included table along with Frazier’s, and addressed, the interconnectivity a fuel tax hike, fee hikes on a $6 billion plan put forward of different forms of vehicle registrations, charging by state Sen. Jim Beall, D-San transportation, the transit electric vehicles, reform language Jose, the cerebral chairman of component, environmental and more. Significantly, it also the Senate Transportation and and quality of life issues, but included indexing the gas tax Housing Committee. To up the the lowly pothole became the to inflation – a permanent fix pressure, the governor called a star of the show. The drumbeat that could eliminate the need special session of the Legislature had started. Transportation to return to the issue year after devoted to transportation, and advocates started ramping year. Placing the language in hearings on transportation were up grass-roots activities the budget set a firm deadline held across the state. The buzz around the “Fix Our Roads” for action at July 1, the date of was becoming a roar. People banner, and it was starting to the new fiscal year, and ramped in the know were saying 2016 get traction. What happens up debate about the various was going to be THE year for when an immovable object policy points. Assemblyman transportation. The cover of encounters unstoppable Jim Frazier, for one, said the the 2016 forecast issue of this momentum? We were about to governor’s plan was not nearly very magazine carried a photo find out. big enough. Frazier, a Democrat, illustration of the state Capitol

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A joint legislative hearing is held on transportation funding at the Capitol in Sacramento. CalAPA Executive Director Russell Snyder is one of many who testify encouraging the Legislature to come together on a compromise solution.

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2015

Assemblyman Jim Frazier, D-Oakley, Chairman of the Assembly Transportation Committee, introduces AB1591, a comprehensive transportation funding measure that, among other things, would raise the state gas tax to pay for transportation improvements.

CalAPA Executive Director Russell Snyder interviews California State Transportation Secretary Brian Kelly for CalAPA’s the annual forecast issue of “California Asphalt” magazine. The article is published in January of 2016.

California Asphalt Magazine • 2017 Special Advocacy Issue

Gov. Jerry Brown releases his $171 billion state budget proposal for 2016-17, which includes elements of his plan to address transportation funding shortfalls. The provisions are ultimately stripped from the budget that is passed by the Legislature and enacted on July 1.

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with money spewing near misses of the past from the top of the dome. seemed to be progress, but We were that close. there was still nothing to Unfortunately, show for it. For example, partisan politics still had at our 2013 “fly-in” to one card to play. It was the Capitol where our the Joker, but it was no members get to meet with laughing matter. For all elected officials, much of the momentum, 2016 meeting time was spent was an election year, helping elected officials and every member of understand who we the 80-member state are, what we do and the Assembly and half of importance of investing in the 40-member state infrastructure. By 2014, the Above: Assemblywoman Melissa Melendez speaks at the 2016 Senate were going to association was well into a CalAPA Annual Dinner. stand before voters public education campaign in November. Voting that included hosting plant on a big tax increase transportation bill!” I persisted, tours for elected officials. in an election year had as and gestured to the magazine During the 2014 “Fly-in,” more much appeal as eating a worm in front of him, which included meeting time was taken up by sandwich, so the Special our exclusive Q&A with him on hammering home the escalating Session bluster and other this very subject. “I did not!” he cost of inaction, and debating pronouncements fell by the shot back, and snatched up the various options for addressing wayside. The Special Session issue and flipped to the page the transportation funding expired on Nov. 30 with nary where his interview began. After crisis. By the 2015 “Fly-in,” the a whimper. On Dec. 12, when scanning it for a few moments, meetings grew more tense, I walked into a conference he jabbed his finger at a page and the 2016 “Fly-in” meetings room in a state building across and held it up for me to see. were tenser still. Given the past from the Capitol to meet with “Look, it says right here. ‘We failures, this magazine decided California State Transportation have a lot of work to do.’” I let to dial back the optimism. On the Secretary Brian Kelly, I was in him off the hook. “OK, you didn’t cover of the 2017 forecast issue, a a sour mood. I dropped a copy exactly promise it would happen Sisyphus-like figure was depicted of the 2016 forecast issue of this year. I’ll give you that.” pushing a massive bolder California Asphalt magazine We had a good laugh, which upward, with the title, “The on the table in front of him broke the tension, and greatly Uphill Struggle for Road Funds.”

– the one with the Capitol improved my mood, but then Fool me once, shame on you. spewing money – and asked spent the rest of the meeting Fool me twice, and I’m going to only half-joking, “What the strategizing about regrouping on bust out some Greek mythology. hell happened?” He laughed transportation.

Longtime board member and a nervous laugh and said, “I

Heading into 2017, the mood chairman of the CalAPA Political don’t know. It wasn’t for lack of among the CalAPA membership Action Committee, Len Nawrocki trying.” “But you promised us a was grim yet determined. The with Valero Marketing & Supply,

CalAPA Executive Director Russell Snyder interviews Assembly Transportation Committee Chairman Jim Frazier, D-Oakley, for CalAPA’s “California Asphalt” magazine.

Assemblywoman Melissa Melendez, a Republican who represents the 67th Assembly District in Riverside County, delivers the keynote address at the CalAPA Annual Dinner in Los Angeles. Transportation funding is the centerpiece of her speech.

California Asphalt Magazine • 2017 Special Advocacy Issue

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2016 CalAPA leadership, meeting at Vulcan Materials offices in Irwindale, conducts a review of the association’s strategic plan and agrees that engaging elected officials on transportation funding remain a high priority for the association.

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has made annual pilgrimages Capitol offices in Sacramento California roads, meanwhile, to Sacramento for the Fly-ins, and Washington, D.C. for years, the heavy rains wreaked havoc and he noticed the change in and I’ve never seen anything like on pavements, causing a tone and tenor of the legislative it. Our citizen lobbyists were on proliferation of potholes and meetings. By the time of the message, focused, and forceful. even SUV-swallowing sinkholes.

2017 Fly-in, held March 14-15, the They were not going to take no The resulting news coverage meetings were getting downright for an answer. It got noticed. saturated the airwaves and rowdy. Republicans had lent urgency to the call clearly decided to vote for action. Now Mother as a bloc to oppose any Nature was on our side. tax increase devoted We were at Hillary’s Step. to transportation, and That’s the last flat spot were rallying behind before you push on to the a bill introduced by a summit of Mt. Everest, freshman legislator to the world’s highest peak, move money around and it’s named after but not to raise new Sir. Edmund Hillary, the revenues. It was going first man to climb Mt. nowhere and everyone Everest in 1953. The knew it. At meeting after problem with Hillary’s meeting, our members Step, experienced got right to the heart of mountaineers say, is that Above: Participants in the 2016 CalAPA Legislative “Fly-in” to the the matter, typified by the peak is right in front Capitol in Sacramento. one pointed exchange by of you, and it compels CalAPA immediate Past you to push forward even Chairman John Greenwood from

There was still one more though weather conditions and California Commercial Asphalt Black Swan. And it came from better judgement would dictate – “What will it take to get you above. Not on the wing, but a retreat is prudent. That’s why to vote yes?” Another meeting in the form of rain. Lots of it. the last few thousand feet of with a recalcitrant lawmaker Coming on years of drought Everest is known as the “Death was ended early when the conditions, a series of powerful Zone,” and the bodies of some CalAPA delegation walked out, winter storms pummeled 200 climbers are still there. We a rare event at the Capitol. The California and cracked a spillway were thisclose to success, yet I message our members delivered on the nation’s tallest dam, wondered, Would this be another was loud and clear: the time for near Oroville, Calif., making disappointment? Would we be talk is over. The time for action worldwide news and triggering doomed to be the Sisyphus of is now. The elected officials we a hasty evacuation order on the state Capitol, cursed to push met with – used to deference Feb. 8 of 188,000 residents a heavy bolder up a hill, only accorded to them by constituents living in communities below the to have it roll back again, for all intimidated by the Capitol – dam. The news underscored eternity? Or another frozen body seemed to be taken aback by the the dire consequences of within sight of the mountaintop candor. I’d been in and around neglecting infrastructure. On but never reaching it?

The CalAPA Legislative Committee hosts a “Fly-in” to the state Capitol to meet with Legislators on transportation funding. Another meeting with Assemblyman Jim Frazier, D-Oakley, chairman of the Assembly Transportation Committee, as well as other key Republican and Democratic legislators.

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The “Fix our Roads” coalition, of which CalAPA is a member, holds a rally at the state Capitol in Sacramento to demand action on transportation funding.

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Brian Kelly, Secretary, California State Transportation Agency, speaks to the CalAPA Spring Asphalt Pavement Conference & Equipment Expo in Ontario, Calif., and discusses the special session of the Legislature devoted to transportation and the Brown Administration transportation funding plan.

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2016 CalAPA member Teichert hosts a tour of its Perkins Plant in Sacramento for eight members of the Assembly Transportation Committee. Transportation California Executive Director Will Kempton also attends.

California Asphalt Magazine • 2017 Special Advocacy Issue

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[ Continued from page 22 ]

State Sen. Jim Beall, D-San Jose, chairman of the Senate Transportation & Housing Committee, introduces a comprehensive transportation funding bill, SB1-X1.

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I confess that many of these that would be included in an for the year, and perhaps many dark thoughts were swirling omnibus transportation bill, years, to finally fix California’s through my head the evening SB1, authored by state Sen. Jim broken system of paying for of April 6, as I looked over my Beall, D-San Jose, the chairman road repairs. No one was ready two versions of history. In my of the Senate Transportation to predict the outcome as the home office/newsroom, Legislature scheduled a hunkered down for the series of votes on April 6. big vote, I’m struck by Sitting next to my the odd confluence of computer that fateful events that brought us to Thursday evening, my this moment in time. iPhone phone buzzes,

In the nation-state something it has been that is California, which doing all evening as if it were a separate I receive regular text country would be the updates from the Capitol world’s sixth largest from our lobbyists. The economy, sometimes omnibus transportation the little things account bill, Senate Bill 1, is for a lot. Take, for being taken up on Above: Tom Foss with the Griffith Company (left) and Mary Rotelli example, a few words in the Senate Floor. The Teichert with Teichert attend a 2016 forum at the Capitol in Sacrathe state’s Constitution author, Senator Beall, is mento to discuss transportation funding. that loom large over introducing it with a brief any spending bill. It’s speech on the Senate called a “supermajority,” or a and Housing Committee. The floor. It’s getting close to 6 p.m., two-thirds vote, that is required 100-page bill would include and the Legislature is having to pass any tax increase. In elements favored by Gov. Jerry dinner brought in. It’s going to our increasingly polarized Brown and Assemblyman Jim be a long night. politics, getting a two-thirds Frazier, D-Oakley, chairman of

Going in, our lobbyists have agreement on anything seems the Assembly Transportation been conducting informal vote impossible, much less a big tax Committee and a longtime counts, and in the weeks leading increase. The key numbers in champion of transportation. up to the big vote the news was the Legislature are 54 and 27.

While the announcement was not good. We were at least 10 A total of 54 “yes” votes are new, the policy points were votes shy of the 54 votes needed needed in the Assembly, and 27 not, and had been debated at to pass a transportation bill in the Senate. Then, finally, a the Capitol for years. As with in the Assembly, and perhaps breakthrough. any big compromise bill, there several votes shy of the 27

The governor and legislative was plenty for opponents needed in the Senate. Although leaders on March 29 – during to criticize, but it was a Democrats control so-called a break in the severe winter compromise nonetheless, and “super-majorities” in both storms – announced they that was a big deal. It also likely houses, the party does not vote had reached an agreement represented the last best hope in lock-step in all issues. There on compromise language for transportation advocates are Democrats in swing districts,

Democrats in the Legislature won a few key swing districts, giving the party a “super-majority” (two-thirds) in both the Assembly and the Senate. California’s Constitution requires a two-thirds vote to raise taxes. Also, voters in eight counties passes transportation-related ballot measures by exceeding the two-thirds majority, bringing to 22 of California’s 58 counties where voters have endorsed taxing themselves for transportation.

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2016

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A transportation forum at the Capitol in Sacramento is attended by key players in the transportation arena, including Assembly Transportation Committee Chair Jim Frazier, D-Oakley, and state Sen. Jim Beally, D-San Jose, chair of the Senate Transportation & Housing Committee. Several CalAPA members, including Tom Foss with the Griffith Co. and Mary Rotelli Teichert with Teichert, attend the meeting.

California Asphalt Magazine • 2017 Special Advocacy Issue

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where voter registrations senators. All the green “yes” “SB1 coming up in Assembly are closely divided between lights on the vote tally display now” was the text from Sievers.

Democrats and Republicans. belonged to Democrats with Then my heart sank. “QS in Then there are rural Democrats, one exception: Steve Glazer, a the hospital.” With not a vote and the so-called “Mod-Dems,” Democrat representing the East to spare, one of the key “yes” a group of moderates votes we were counting that sometime align with on – Assemblywoman business interests. The Sharon Quirk-Silva, a fate of SB1 was in their Democrat from a swing hands. Republicans had district in Orange County, long signaled that they had been rushed to a would vote in unison hospital emergency against any transportation room. No one knew why, bill that included tax but without her vote we hikes, so it was all on the were likely finished.

Democrats. April 6 was Assemblyman Jim the self-imposed deadline Frazier, D-Oakley, a Above: Members of the Assembly Transportation Committee tour a to act on the bill, and the former contractor who Teichert asphalt plant in 2016. outcome was very much has made passage of a in doubt. big highway bill his top

Beall gave his opening San Francisco Bay. We were one legislative priority, stepped to remarks, and urged his short. Then my phone buzzed. It the microphone to introduce colleagues to join him in was a text from our lobbyist, Jeff the bill. His voice reduced to approving the measure. “There Sievers. “Cannella aye,” it said. a rasp from days of pleading, is a price to be paid for this Sen. Anthony Cannella, R-Ceres, prodding and cajoling his fellow long-term neglect,” Beall told had broken with his party and legislators, he gave a somber his colleagues. “SB1 fixes voted with the Democrats. My introduction to SB1. The grainy that.” He called it “a long-term phone buzzed again. “27-11,” image of Frazier looked nothing solution to our transportation was the text from Sievers. “One like the man who delivered infrastructure in California.” house down.” the fiery keynote speech two After he concluded his remarks,

I was exuberant, but the months before at the CalAPA several senators took turns words of Brian Kelly were Annual Dinner in Los Angeles, saying why they were voting for echoing in my ears. “We still or numerous meetings in or against the measure. There have a lot of work to do.” I took a his Capitol office. He looked were no real surprises imbedded restroom break. defeated. “It’s been a long, in the comments, except by

The Assembly was crumbling road to get to where our figuring we were still one technically still in session we are today,” Frazier said. “This vote short. Then the clerk was but the webcast was not live bill is absolutely monumental.” ordered to open the roll. All the because members were milling He didn’t sound like a man red lights representing “no” around waiting for SB1 to be on the cusp of his greatest votes winked on, and were voted in the Senate. At 8:41 legislative achievement. A next to names of Republican p.m. my phone buzzed again. wave of dread swept over me.

Assemblyman Jim Frazier, D-Oakley, Chairman of the Assembly Transportation Committee, re-introduces a comprehensive transportation funding measure that, among other things, would raise the state gas tax to pay for transportation improvements. In the new session of the Legislature the bill carries the designation of AB1. State Sen. Jim Beall, D-San Jose, also re-introduces his comprehensive transportation funding bill from the expired Special Session. The new bill designation is SB1.

CalAPA Executive Director Russell Snyder meets with California State Transportation Secretary Brian Kelly.

California Asphalt Magazine • 2017 Special Advocacy Issue

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Special session of the Legislature devoted to transportation expires with no action taken. The regular session of the Legislature also expires with no action taken.

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2016

Assemblyman Jim Frazier, D-Oakley, chairman of the Assembly Transportation Committee, delivers the keynote speech to the CalAPA Annual Dinner in Los Angeles and pledges that a transportation funding bill will get done in 2017.

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Stuck at 51, with 54 needed to pass, the roll was left open, for 13 long minutes. Out of the view of the web broadcast, other legislators gathered in clusters around the three nonvoters. News reports indicated there were tense words as the three were urged to cast “yes” votes.

The Sacramento Bee newspaper reported that “Assemblywoman Lorena Gonzalez Fletcher, D-San Diego, stormed over to Salas’ desk, jabbed a finger in his face and berated him for voting no while his colleagues face tougher re-election fights than his. ‘They have way worse districts than you,’ she yelled,” according to a Bee reporter.

Suddenly, another green light winked on, and another, and another. The tally was 54-26, “Close the roll and tally the vote,” the presiding officer ordered. My phone buzzed. “It passed,” Jeff Sievers texted.

“54-26.” A moment later I got a cryptic e-mail message from our other lobbyist, Greg Hurner, who was also at the Capitol monitoring the vote. “It is done.”

I returned my attention to my twin Member Alerts. In the good news alert, I carefully added the final vote tallies in the Senate and Assembly, and, in a tip of the cap to my previous career,

[ Continued on page 28 ]

A series of powerful winter storms pummeling California cracked a spillway on the nation’s tallest dam, near Oroville, Calif., making national news and triggering the evacuation of 188,000 residents living in communities below the dam. The news underscores the dire consequences of neglecting infrastructure. On California roads, meanwhile, the heavy rains coming on top of years of drought wreaks havoc on pavements, generating week after week of additional negative news coverage.

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2 ∙ 08 ∙ 17

I moved my cursor over the see from my tiny computer “Member Alert” with the bad screen, but I learned later that news. I was on Hillary’s Step. she had returned from the Was I really going to be the hospital to cast her vote. But bearer of bad news? we were still short. Who were

One by one, members of the we missing? Then I noticed Assembly rose at their desks that Assemblyman Rudy to justify the vote they would take in a few minutes. Most of the points made had been made many times before.

It seemed like everyone was going through the motions. I’ve covered the Legislature in Sacramento as a reporter, and spent many late nights in the chamber. I knew what defeat looked like. This is what defeat looked like.

Above: Sen. Richard Roth (standing) meets with the CalAPA

Finally, it was time delegation during the 2017 Capitol Fly-in to Sacramento. to vote. The clerk was ordered to open the roll, and the red and green lights Salas, a moderate Democrat winked on. Predictably, the green representing Bakersfield, voted lights in the shape of a triangle no. Our one-vote margin of pointing up were next to the safety vanished, assuming names of Democratic lawmakers, all other Democrats voted and red lights pointing down yes. Still, we weren’t there. were next to the names of the My phone buzzed. It was Jeff Republicans. “All those vote who Sievers. “Cooper, Grayson and care to vote,” the presiding officer Muratsuchi not voting at the said in a monotone. “All those moment. Stuck at 51.” vote who care to vote.” Finally

All three were Democrats. Jim nearly all the names had a light Cooper represented Elk Grove next to them, but the tally at the near Sacramento. Tim Grayson bottom was 51-26. The roll was represents a district in the East held open. I could hardly breathe.

San Francisco Bay. Al Muratsuchi

I noticed that next to represents a district in the South the name of Quirk-Silva, the Bay area of Los Angeles County. light was green. I could not All are considered moderates.

SB1 passes the Government & Finance Committee on a party-line vote.

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SB1 passes the Senate Transportation & Housing Committee on a party-line vote.

2 ∙ 22 ∙ 17

Freshman Assemblyman Vince Fong, R-Bakersfield, introduced a transportation bill, AB496, that incorporates many of the concepts promoted by Republicans that no new money is needed for transportation if existing sources are used differently.

2 ∙ 14 ∙ 17

2 ∙ 13 ∙ 17

2017 SB1 passes the Senate Environmental Quality Committee on a party-line vote.

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[ Continued from page 26 ]

The CalAPA Legislative Committee hosts a “Flyin” to the Capitol in Sacramento as the governor and Legislature agree to an April 6 deadline to take action on transportation funding.

Above: Gov. Jerry Brown announces transportation funding compromise on March 29, 2017 at the Capitol. Photo by John Larimore, Governor’s Office of Emergency Services.

represents a swing district in Orange County, is facing a possible recall, and others threaten reprisals during next year’s election cycle. Another group has announced it is gathering signatures for a ballot measure to repeal the tax.

Perhaps the most illuminating observation was made by Sen. Anthony Cannella, a Republican who won’t be seeking election next year due to term limits.

After breaking from his party to endorse the big transportation bill, he was captured on film explaining his vote, which made the rounds on social media:

4 ∙ 03 ∙ 17

3 ∙ 14-15 ∙ 17

added “Breaking News” above the headline. I attached it to an e-mail to all CalAPA members and hit “send.” The news might be happening too late to make the morning papers, I thought to myself, but our members are going to hear tonight about how history was made. The message went out at 10:51 p.m.

Finally, wee were on the top of the mountain.

I moved the cursor over the bad-news “Member Alert” and hit “delete,” and then turned off my computer. I reached for my phone and texted our lobbyist a one-word sign-off. “Bravo!”

Epilogue: in the days after the historic vote, additional details came out about the flurry of last-minute dealmaking and arm-twisting that happened leading up to the big vote. Republicans lambasted the activity, while Democrats and independent observers defended it as part of the legislative process that requires negotiation and compromise. Gov. Jerry Brown responded, “Sometimes these bills that take all these different arrangements and compromises help the very people that we came here to serve.”

Nevertheless, the political fallout has already begun.

Freshman state Sen. John Newman, a Democrat who

“I’m up here to represent my constituents, not the caucus, and I believe I did that tonight.”

On Friday, April 28, Gov. Jerry Brown signed SB1 and the accompanying legislation into law. In doing so, he issued the following statement: "Safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work." CA Russell W. Snyder, CAE, is Executive Director of the California Asphalt Pavement Association.

CalAPA newsletter “Asphalt Insider” calls it “zero hour” for transportation funding, urges members to contact their elected officials to urge them to support SB1. SB1 later passes the Senate Appropriations Committee.

A massive grass-roots campaign by transportation supporters around the state ramps up, including more than $1 million in radio and TV ads, phone calls to legislators, social media campaign and media events.

3 ∙ 29 ∙ 17

2017

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The governor and legislative leaders hold a press conference on the steps of the Capitol in Sacramento to announce that they have agreed on a compromise transportation funding plan, and that they have set an April 6 deadline for the measure to pass the Legislature. The bill identified as the vehicle for the compromise plan is SB1.

California Asphalt Magazine • 2017 Special Advocacy Issue

How they voted: SB1 Assembly members voting YES (54):

Senators voting YES (27):

Cecilia Aguiar-Curry (D), Joaquin Arambula (D), Marc Berman (D), Richard Bloom (D), Raul Bocanegra (D), Rob Bonta (D), Autumn Burke (D), Anna Caballero (D), Ian Calderon (D), Sabrina Cervantes (D), Ed Chau (D), David Chiu (D), Kansen Chu (D), Ken Cooley (D), Jim Cooper (D), Matthew Dababneh (D), Tom Daly (D), Susan Eggman (D), Jim Frazier (D), Laura Friedman (D), Cristina Garcia (D), Eduardo Garcia (D), Mike Gipson (D), Todd Gloria (D), Jimmy Gomez (D), Lorena Gonzalez Fletcher (D), Adam Gray (D), Tim Grayson (D), Chris Holden (D), Jacqui Irwin (D), Reginald Jones-Sawyer (D), Ash Kalra (D), Marc Levine (D), Monique Limón (D), Evan Low (D), Kevin McCarty (D), Jose Medina (D), Kevin Mullin (D), Al Muratsuchi (D), Adrin Nazarian (D), Kevin O'Donnell (D), Bill Quirk (D), Sharon Quirk-Silva (D), Anthony Rendon (D), Eloise Reyes (D), Mark Ridley-Thomas (D), Freddie Rodriguez (D), Blanca Rubio (D), Miguel Santiago (D), Mark Stone (D), Tony Thurmond (D), Phillip Ting (D), Shirley Weber (D), Jim Wood.

Ben Allen (D), Toni Atkins (D), Jim Beall (D), Steven Bradford (D), Anthony Cannella (R), Kevin De León (D), Bill Dodd (D), Cathleen Galgiani (D), Ed Hernandez (D), Robert Hertzberg (D), Jerry Hill (D), Ben Hueso (D), Hannah-Beth Jackson (D), Ricardo Lara (D), Connie Leyva (D), Mike McGuire (D), Tony Mendoza (D), Holly Mitchell (D), William Monning (D), Josh Newman (D), Richard Pan (D), Anthony Portantino (D), Richard Roth (D), Nancy Skinner (D), Henry Stern (D), Bob Wieckowski (D), Scott Wiener (D).

Assembly members voting NO (26):

Senators voting NO (11): Patricia Bates, (R), Jean Fuller (R), Ted Gaines (R), Steven Glazer (D), John Moorlach (R), Mike Morrell (R), Janet Nguyen (R), Jim Nielsen (R), Jeff Stone (R), Andy Vidak (R), Scott Wilk (R).

Senators NOT VOTING (2):

4 ∙ 07 ∙ 17

Dante Acosta (R), Travis Allen (R), Catharine Baker Joel Anderson (R), Tom Berryhill (R).

(R), Frank Bigelow (R), William Brough (R), Rocky Chávez (R), Phillip Chen (R), Stephen Choi (R), Jordan Cunningham (R), Brian Dahle (R), Heath Flora (R), Vince Fong (R), James Gallagher (R), Matthew Harper (R), Kevin Kiley (R), Tom Lackey (R), Brian Maienschein (R), Devon Mathis (R), Chad Mayes (R), Melissa Melendez (R), Jay Obernolte (R), Jim Patterson (R), Rudy Salas (D), Marc Steinorth (R), Randy Voepel (R), Marie Waldron (R).

CalAPA releases the following statement to the media from 2017 Chairman Mike Herlax with Syar Industries: “This transportation bill, the most significant legislation of its kind in a quarter-century, will reverse years of neglect and boost our state’s economy, mobility and quality of life. I’m proud of the tireless efforts of CalAPA members over the past several years to keep this important issue in front of our elected officials and demand action. This is a big win for our industry, our agency partners and every Californian.”

SB1 passes the Senate on a 27-11 party-line vote, the bare minimum number of votes needed to pass under the state Constitutional requirement of a two-thirds vote for urgency matters and to increase taxes. The bill later goes to the Assembly where it passes on a 54-26 vote at 10:35 p.m.

Only one Republican, state Sen. Anthony Cannella, R-Ceres, casts a “yes” vote for the measure.

California Asphalt Magazine • 2017 Special Advocacy Issue

4 ∙ 28 ∙ 17

4 ∙ 06 ∙ 17

2017 Gov. Jerry Brown signs SB1 and related transportation bills into law. In announcing the signing, the governor said: "Safe and smooth roads make California a better place to live and strengthen our economy. This legislation will put thousands of people to work."

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ATTENDEES AT CALAPA SPRING CONFERENCE HEAR THE LATEST ON TRANSPORTATION FUNDING, ASPHALT SPECIFICATIONS, NEW INNOVATIONS & PROMOTION

Roger Dickinson, Executive Director, Transportation California, the keynote speaker spoke about state transportation funding at the California Asphalt Pavement Association’s Spring Conference on April 11-12 held at the Doubletree in Ontario.

Keynote Speaker Amy Miller, National Director, Asphalt Pavement Alliance gave a presentation about the National perspective on asphalt pavement at the California Asphalt Pavement Association’s Spring Conference on April 11-12 held at the Doubletree in Ontario.

Nearly 200 industry and agency representatives attended the CalAPA Spring Asphalt Pavement Conference and training session on April 12-13 in Ontario, where the future was looking decidedly more optimistic.

The conference was held just days after the California Legislature passed a historic, $52 billion transportation funding bill to address decades of neglect of the state's roadways.

John Hakel, executive director of the Southern California Partnership for Jobs, discussed the state funding and the local transportation measures passed by voters in Southern California and used words never before uttered at a CalAPA conference with regard to road funding: "It's impressive -very impressive."

He was joined by Transportation California Executive Director Roger Dickinson, a former Assemblyman, who talked in glowing terms about the multi-year grass-roots lobbying effort to get the comprehensive transportation funding bill, SB1, passed by the Legislature. Gov. Jerry Brown has said he will sign the measure into law.

The two outlined the frantic push in the week leading up to the April 6 vote that included a phone call and social media campaign, TV

and radio ads and other message saturation efforts that took place up and down the state.

"It's a classic demonstration of what can happen when people get organized and activate on an issue," Dickinson said. He added that every elected official who voted "yes" for SB1 took "a very hard vote" and that they should be commended for taking action when previous legislatures kicked the can down the road.

Hakel, a longtime AGC executive before taking over the newly formed Southern California Partnership for Jobs, said now the focus will be on putting dollars to work quickly and efficiently to show the public the investments are being put to good use. The ability of industry and public works agencies to meet this challenge will be put to the test.

Other conference topics included porous asphalt pavement for storm-water control, a spotlight of the Orange County Public Works Department pavement management system, Warm Mix Asphalt, balanced mix design and cracking test, an update on the "Greenbook" of public works specifications used by many agencies in Southern California, and Caltrans asphalt pavement specification changes.

30

Tim Greutert, Chief, Office of Roadway Materials Testing, Caltrans discussed the joint training and certifications for materials technicians at the California Asphalt Pavement Association’s Spring Conference on April 11-12 held at the Doubletree in Ontario.

Paula Beauchamp, Director of Project Delivery for the San Bernardino County Transportation Authority, gave an overview of her county's program and what is expected in the coming year.

Amy Miller, national director of the CalAPA-supported Asphalt Pavement Alliance, gave an overview of the many research and marketing activities that are underway as part of the pooledfund asphalt promotion programs.

Tim Gruetert, Chief of the Caltrans Office of Roadway Materials Testing, and Shadi Saadeh, associate professor of engineering at California State University, Long Beach, gave a joint presentation on the joint industryagency training and certification program for materials technicians.

The highly anticipated program, which will cover concrete, asphalt and aggregate tests, is wrapping up the curriculum-development and review stage and entering the implementation stage, scheduled for later this year. Both Gruetert and Saadeh used the expression "very excited" when describing the program, and their enthusiasm was clearly evident.

Electronic copies of presentations delivered at the conference can be viewed on the CalAPA website. CA

California Asphalt Magazine • 2017 Special Advocacy Issue

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California Asphalt Magazine • 2017 Special Advocacy Issue

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California Asphalt Magazine • 2017 Special Advocacy Issue

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CALENDAR UPDATE ANNUAL DAY AT THE RACES - July 15 (tentative) - Del Mar Thoroughbred Club - Del Mar, CA ANNUAL GOLF TOURNAMENT - September 21 - Pacific Palms Resort - City of Industry FALL CONFERENCE - October 25 & 26 - Double Tree Hotel - Sacramento Meeting dates are subject to change. Watch the weekly Asphalt Insider newsletter for meeting updates or call CalAPA at (866) 498-0761 to confirm meeting date and location.

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California Asphalt Magazine • 2017 Special Advocacy Issue

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Bomag America...................................... 7

Pape Machinery.............................. 32, 36

Coastline Equipment.............................. 7

Pavement Recycling Systems............. 27

Diversified Asphalt Products.............. 31

Peterson CAT.......................................... 2

CEI Enterprises, Inc............................... 39

Pine Instruments.................................. 33

E.D. Etnyre & Co................................... 37

Quinn Co.................................................. 2

Goldstar Asphalt Products.................. 32

RDO Equipment Co.......................... 5, 19

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Herrmann Equipment, Inc.................... 15

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Holt of California..................................... 2

Scott Equipment................................... 34

Johnson Machinery................................ 2

Sitech..................................................... 38

Kenco Engineering............................... 37

Sully-Miller/Blue Diamond.................. 35

Matich Corporation.............................. 35

Valero Marketing & Supply................... 3

Nixon-Egli Equipment Co..... Back Cover

Volvo Construction Equip. & Svcs...... 23

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California Asphalt Magazine • 2017 Special Advocacy Issue

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More than the fact CEI has produced some of the most efficient asphalt heating & storage systems available, since 1969.

CEI backs its products. Period. With thorough engineering, high-quality manufacturing, dedicated service, worldwide parts support, and annual training, CEI offers you the kind of fullcircle support you’re looking for.

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Nixon-Egli Equipment Co., Wirtgen and Cindy Trump Inc., dba Lindy’s Cold Planing

Above: CTI’s new Written WR 240i cold recycler/soil stabilizer working on an LAUSD project.

Cindy Trump Inc. dba Lindy’s Cold Planing has specialized in milling/grinding, removal, stabilization, pulverizing and site prep work since 1987. C.T.I. has built a reputation for professionalism that goes well beyond industry standards.

They proudly serve all of California, Arizona, and Nevada as a Woman Owned Business Enterprise (WBE), and as a Disadvantaged Business Enterprise. Headquartered in La Habra, C.T.I. primarily performs public works projects, but they are also capable of taking on private work when requested.

C.T.I. currently employs 26 employees with Brianna Trump Borg serving as the CFO and Cindy Trump as the company President. The company’s success is due to the exceptional team members that contribute so much every day. “I believe that we have the best in the industry working here at C.T.I. I also believe that we offer the best equipment available and it is both our human and mechanical assets that set us apart from the pack,” says Cindy Trump.

C.T.I. has a large fleet of cold planning and milling machines, 14 of which are Wirtgen’s purchased from Nixon-Egli Equipment Co. C.T.I. purchased a new Wirtgen WR 240i cold recycler and soil stabilizer last year and yet another just recently. “We bought our first Wirtgen grinder from Nixon-Egli Equipment in 1997 and have been buying from them ever since,” says Trump. “We deal directly with James Nixon and he has always treated us right.”

The WR 240i is the all-rounder of the Wirtgen fleet. Thanks to it’s large working width and working depth and its high milling output and mixing capacity. The WR 240 / WR 240i offers maximum flexibility for all soil stabilization and cold recycling applications.

Bill Bell is an estimator and superintendent for C.T.I. and he is also sold on the Wirtgen machines. “The WR 240i is the most efficient and most operator friendly machine in the business,” says Bell. “We update our fleet every five years and Nixon-Egli has always provided us with quick parts turnaround and the best service around, which is vital to the success of our business.”

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