GRADING AND EXCAVATING ISSUE
Reshapes Hillsides at the Industry Business Center West Side Mass Grading Phase Two Project in the City of Industry
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GRADING
CONTENTS
Excavating Issue
Feature Articles 06
SUKUT CONSTRUCTION Reshapes Hillsides at the Industry Business Center West Side Mass Grading Project 6
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ADVANTAGE GRADING & ENGINEERING, INC. Taking The Lead with High Expectations and a Customer First Philosophy
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JOE'S PAVING COMPANY, INC. A History of Paving and Grading Excellence in North San Diego County and Beyond
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15 BILLS SIGNED INTO LAW TO HELP INCREASE SUPPLY AND AFFORDABILITY OF HOUSING IN CALIFORNIA 18
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INDUSTRY NEWS ADVERTISER INDEX
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Reshapes Hillsides at the Industry Business Center West Side Mass Grading Phase Two Project in the City of Industry
Sukut’s grading and underground crews pose for a photo during the Industry Business Center project. At its peak, the project employed five crews for a total of 85 employees.
Sukut Construction (Sukut) has moved more than 1 billion cubic yards of earth over the past 50 years. Being California’s leading grading and excavating company, Sukut’s projects range from transportation corridor construction, residential and public grading to wastewater management systems, as well as landfill remediation, flood control and golf course/resort construction. Sukut has also applied its expertise to renewable energy (solar and wind) projects throughout the West.
Sukut is currently working on the Industry Business Center West Side Mass Grading Phase Two Project in the City of Industry. This project consists of grading 250 acres of hillside area west of Grand Avenue, removal of unstable soil and replacing it with engineered, compacted fill. When complete, including the work performed in the two previous phases, Sukut will have moved a total of 21,540,000 cubic yards of dirt, installed 29,000 linear feet of storm drain, and constructed 86,600 linear
feet of concrete surface drainage facilities for the Agency. Sukut began their work on the project this past spring with a 13-month contract that calls for completion by July of 2018. Bryan Nesthus, Sukut’s project manager, oversees the job and works closely with his team to assure the project’s successful completion. “This is our third job with this Owner on this particular project site, and is a continuation of previous phases,” says Nesthus. “Although our contract
Aerial view of grading progress on the 250-acre Industry Business Center West Side Mass Grading Phase Two project.
references a completion date of July 2018, we are confident that we will have everything done in the beginning of the first quarter.” According to Nesthus, the project’s scope calls for remedial grading, a large amount of mass excavation and installation of storm drain, as well as paving for access roads and the construction of a few structures. “Danny Anderson is our job site superintendent who has been with Sukut for over 15 years, and he has been doing the heavy lifting on this project,” says Nesthus. “The job is so extensive that it allowed us to put four spreads into one cut,” says Anderson. He specifies that
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Sukut had three sets of push CATs with 651 scrapers along with a spread of 657 scrapers working in one cut. “Because of this, we saw some great production, where we have been consistently moving 100,000 cubic yards per day for months at a time. I am very proud of our entire crew, including our two outstanding foremen, Brian Fahey and Edward Navarrete.” Not everything went perfectly smooth on the job, however, as heavy rock material presented a challenge early on in the project. “Managing our resources on the job was challenging at times,” says Anderson. “The rock material was wreaking
havoc on production and our equipment, so we had to modify our operation to mitigate that situation to keep our production up and our equipment damage to a minimum.” Defying odds and still keeping up with the schedule and, quiet often, finishing before a completion date, thus saving money for the Owners, is something that is second nature to Sukut. It came as no surprise that Nesthus’s team on this project was able to successfully adjust to the difficult conditions. There were over 17,000 linear feet of storm drain mainline and laterals installed on this project. For this scope, Sukut
2017 Grading & excavating Issue CALCONTRACTOR
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Above Top - During the Industry Business Center project, Sukut has been consistently moving 100,000 cubic yards of earth per day for months at a time. Above Middle - Sukut’s double-spread of CAT 651 scrapers in process of moving nearly 8,000,000 cubic yards of earth on the project. Right – One of many CAT 651 scrapers hauling dirt on the Industry Business Center project.
utilized multiple crews installing mainline storm drain, and secondary crews installing lateral lines and pipeline structures as the mainline is completed. Sequencing the work in this manner is how Sukut maximizes efficiency and production, delivering projects ahead of schedule and under budget. Sukut owns one of the largest equipment fleets in California and on the West Coast. In Phase 2 of the Industry Business Center Project,
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they were running around 60 pieces of heavy machinery and approximately 85 operators and laborers at peak. “If you add in all of the subcontractors and rental equipment, we had approximately 75 units on-site. This included CAT D10 push dozers, CAT 651 scrapers, CAT 657 scrapers and support equipment, such as D9’s and finish machinery such as CAT D8 dozers,” says Anderson. “We also utilized CAT 824 and 834 rubber-tired dozers for road cleanup and the mixing of the
2017 grading & excavating ISSUE CALCONTRACTOR
fill material. Sukut owns all CAT equipment and, because we have such a large fleet, we maintain a fulltime mechanic crew on the job site which is a common practice for Sukut. Sam Valenzuela is our mechanic foreman on this job, and he does an outstanding job keeping our machines working with as little downtime as possible.” According to Nesthus, heavy earthwork has always been the core competency of what Sukut offers. “I think in recent years there has been resurgence
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Above left – Sukut in process of installing 3,700 feet of 72 inch RCP storm drain as part of the site’s 17,000 storm drain infrastructure. Above right – Sukut utilized a sizeable heavy equipment spread including 25 CAT 651 scrapers, 6 CAT D10 push dozers, 2 CAT D10 rip dozers, and 2 CAT 834 rubber tire compactors all owned and maintained by Sukut Equipment, Inc.
in the number of private developments going on out there and that has brought us a lot of residential grading work. We also continue to be successful in environmental, public works, alternative energy, and large joint venture markets,” says Nesthus. “Sukut has diverse talents, so the ideal project for us is any large grading project that includes utility installation, landfill mitigation, or concrete construction because we are able to capitalize on all our strengths and be most competitive.”
Sukut Construction is a General and Heavy Civil Engineering Contractor coming up on 50 years of superior performance on residential, public, commercial and industrial projects throughout California. They own and maintain an equipment fleet of more than 300 units, and own one of only a few private fleets that are compliant with the 2010 Air Resources Board (CARB) rules for off-road diesel equipment. Sukut has been nationally recognized for its work
on a variety of projects. These projects range from small to large and encompass general contracts for earthmoving, dam construction, roadways, major drainage structures, and civil works. In recent years, Sukut has received more than 30 industry honors, including "Contractor of the Year" and "Best Company to Work For." For more information on Sukut Construction, please visit their website at www.sukut.com or call (714) 540-5351. Cc
Above left – Sukut Equipment mechanics servicing a CAT D10T dozer. Sukut Equipment’s mechanic crews worked day and night to keep nearly 60 pieces of heavy equipment fueled, maintained, and ready to run each day. Above right – Sukut is one of the top pipe installers in the region.
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2017 grading & excavating ISSUE CALCONTRACTOR
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By Brian Hoover, Editor
Taking The Lead With High Expectations and a Customer First Philosophy
Above: Advantage Grading & Engineering crews building storm drain system in Loma Linda.
With hindsight being 20/20, it is easy to say that starting a civil engineering construction business in 2007 would have been a terrible idea. Construction companies that had been established and prospering for years ended up going belly up after all of the carnage caused by the 2008 Great Recession, so a brand new contractor had very little chance of survival. For Gerald Russell, founder of Advantage Grading & Engineering, Inc., it all happened one step at a time, and one could almost credit fate as the main component behind the advent of Russell’s new startup. Russell had been working as a heavy equipment operator for a well-known grading and excavating contractor in San
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Diego County, when he was forced to have shoulder surgery. Things did not go as expected under the knife, and for 18 months, Russell was unable to perform any sort of physical labor. Not being the sort of guy to sit around feeling sorry for himself, Russell took a leave of absence from his current operator duties and procured his contractor's license. “After I got my contractors license, I rounded up a couple of operators and started taking on a few projects to help pay some bills,” says Russell. “I figured that when my shoulder healed, I would simply go back to work with the grading company I had been working for previously. However, the recession had come in hard, and there was not much to go back
2017 Grading & excavating ISSUE CALCONTRACTOR
to.” Russell had been through previous recessions and could not have foreseen the length and intensity of the Great Recession. “When the real estate bubble burst, and the stock market went with it, things went downhill from there,” says Russell. “We had no intention of sticking it out on our own, but after doing it for a while, we found that we were good at it. We reaffirmed our commitment and quickly made a name for ourselves in our local community.” Advantage Grading & Engineering started taking on small jobs, like single-family residential pad construction, and Russell soon healed and found himself back on the machinery. Before long, Russell could see that his time would be better
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2400 W. Baseline - San Bernardino, CA 92410
(909) 381-1999 (Parts) (949) 877-6188 (Sales Call Butch) (714) 460-1022 (Sukut Rentals Dispatch) www.sukutequipment.com
250 Pieces of Cat Equipment - Sales & Rentals Sukut Equipment Parts and Rentals has acquired an impressive fleet of equipment for your heavy earthmoving needs. With over 250 scrapers, dozers, motor graders, rock trucks and excavators in its inventory, we focus on the sale and rentals of heavy construction caterpillar equipment. Our machinery is fitted with GPS and clean-air engine technology for precision and environmental safety.
Cat 657E Scraper (S/N 5YR00547), Cat 824G Wheel Dozer Cat D8T Angle Dozer (S/N KPZ01687) Tier 2 Cab, Stock #49 .................. Call $ (S/N 4SN00460), Stock #26 ......... Call $ with tilts, A/C, Cab/Canopy, 4BBL SS Ripper, Stock #56 ........................ Call $
Our rentals are fully supported by on-site maintenance crews resulting in unparalleled customer satisfaction and loyalty. Additionally, we have over 6,800 parts in stock for sale. Most, including our powertrain components and engines, are rebuilt or inspected and ready to be shipped.
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spent managing the company, and so in 2010, he began to focus on bidding new work and doing everything he could to build the business. “I can tell you that the first seven or eight years were very rough” says Russell. “Our first big job was on a massive 15,500 square foot house project where they wanted a 10,000 square foot basement dug out. It was a cash client, which I thought was wonderful at the time, but we ended up getting scammed by the client and had to walk away. We found ways to contract and protect ourselves with mechanisms like the preliminary lien process and not letting clients get too far ahead of us. We learned a valuable lesson about the legalities of contracting and went on to fight another day.” Russell decided to go back to working small projects, and in doing so, his company became as efficient as possible to maximize time and profits. “We were willing to do anything from a small landscape job to demoing and replacing a residential driveway. I can remember getting calls for a broken water line in a shopping
mall parking lot, and I was happy for the work,” says Russell. “We are a diverse company today, and if you were to ask me what we do, I would tell you quite simply that we are a one-stop shop.” He says that the list of what they offer is long and includes grading and excavating, underground utility construction, site management, permitting, landscaping, civil plans and concrete work. “Over the past few years, we have begun managing ground-up construction to completion,” says Russell. “The market turned around for us in October 2015, and we attribute part of this to us reaching out to a marketing company to help bring in more business.” Russell hired Musselwhite Marketing, and accordingly, they did some fantastic things for his company. “It seemed like we were living in a black hole and found it very difficult to get work in our local community. All of our work was over 50 miles out, and we were doing the wrong kind of advertising.” According to Russell, Musselwhite Marketing initially beefed up their website and brought them to the top
of the search engines. They also introduced them to the wonderful world of social media and got their name out through various modern digital avenues. “Within a month, we had to hire people just to answer the phones. My role completely changed from being hands-on out on the job site, to managing the business and looking at new work,” says Russell. “I hired Vince Blazek, who works as our fulltime estimator and operations manager. Vince is my right arm, and he does an excellent job reaching out to our vendors to get the most competitive pricing. He also puts our takeoffs together, schedules the jobs, sets up interviews and meetings, manages equipment moves, all while maintaining constant contact with our clients.” Advantage Grading & Engineering is currently very busy, but according to Russell, they are a little short on people. “There is a huge labor shortage in this state, and right now we probably need another 10 people,” says Russell. “Because of this, labor rates are going through the roof, and even with a constantly running ad, we are
Above Left: Grading for a single family residence in Fallbrook where Advantage performed the entire project from Civil Engineering, permitting, construction, to handing the client their keys. Above Right: One of our crews working in Loma Linda.
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2017 Grading & excavating ISSUE CALCONTRACTOR
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Above Left: Back fill of seismic investigation excavation in Temecula. Right: Construction of a modular storm drain structure in Encinitas.
still having a difficult time.” Not just anyone will do, and Russell makes it clear that his standards are very high. “I was in the Marine Corps for three years, and I hold that sort of standard to the people that I hire,” says Russell. “We like to hire vets directly out of the service. They have discipline, are quick learners, are respectful, and they know what a good work ethic looks like.” Russell also admits that having such high standards makes it more difficult to find the right employees. “Our clients love working with our vets,” says Russell. “We have a foreman who served as a Staff Sargent in the Marine Corps, and he has been deployed to combat three or four times. Let me tell you that he is one outstanding individual and is the perfect example of the sort of person that we like to hire.” Advantage Grading & Engineering is on several projects at this time, including work for a client that builds and operates car washes throughout Southern California. “We recently worked as a subcontractor on a project in Temecula for this client and will soon be starting another car wash job as the project
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manager in Loma Linda,” says Russell. “We will be making all of the civil improvements, handle the permit process, as well as perform the underground utilities, grading, asphalt, and concrete work, and build the foundation for the structure. Additionally, we will install an underground retention system to capture all the storm water runoff.” Russell continues to point out that a company from Chicago will be bringing in and placing the modular buildings and equipment, at which time, Advantage will tie in the electrical, plumbing, sewer and water and finish with the landscape construction. They will be starting yet another car wash job on Winchester Road in Temecula and a few more in North County San Diego. While all of this is going on, Advantage is also on a habitat restoration project in Murrieta where they are moving around 3,000 cubic yards of dirt with a Cat D5K dozer and several laborers. “We work for solid, reputable companies, and when I meet with a client for the first time, I let them know up front that we will more than likely not be the low bidder,” says Russell. “To be honest, I can’t
remember the last time we were the low bidder on a project.” That doesn’t keep Advantage from getting the work, however, and at times they will be given a job after it has been awarded to another contractor. “Many times a contractor will tell a client whatever they need to hear so that they can get their boots on the ground and get into their bank account. We look at all of the contingencies and give them a real number,” says Russell. “Because we are so diverse, we know where every part and piece goes in the process, and that is a decisive advantage,” Russell says that he will get at least one call each month from a company that is asking him to finish a job where another contractor has gone way over budget. “I encourage prospective clients to check out our Google and Yelp reviews. We are proud of our track record, and I like to tell our customers that one of my main goals is that we remain friends through the process and when the job is complete,” says Russell. “That doesn’t mean that there will not be arguments. There will be, but the goal is to establish trust through honesty and transparency. It is all a part of our client first model.”
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The first piece of heavy machinery that Advantage Grading & Engineering invested in was a Cat D5K dozer. Later they added a John Deere 60G compact excavator and a John Deere 210LE skip loader. That is where the equipment purchasing ended, however, as Russell quickly found that their eclectic workload required a wide range of equipment. “We may be using several wheel loaders on one job, a scraper on another and excavators and dozers on yet another. We are just too diverse to plant our flag on any one type of equipment,” says Russell. “For this reason, we choose to rent most of our equipment from a company in San Diego County by the name of El Camino Rents.” Russell points out that he had worked with the sales representative from El Camino Rents for many years, following him there when he made the move from another rental company. “90 percent of our equipment comes from El Camino Rents and our sales rep, Gary Norris. I just can’t speak more highly of any rental
Above: Gerald Russell, Owner, Advantage Grading & Engineering, Inc.
company or individual. I also met up with the owner, and we are extremely like-minded,” says Russell. “Gary treats us so well that I sometimes forget that he doesn't work full time for our company. They have most everything we need from skid steers and skip loaders to dump trucks, water trucks, and excavators. On the rare occasion that they don’t have what we
Above: Advantage crew installing new underground utilities.
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2017 Grading & excavating ISSUE CALCONTRACTOR
need, Gary will find it for us, even if it means he doesn’t get the business. We like working with folks like this.” Russell says, “Diversity is our friend, and we have successfully warped right along with the market. We have come a long way from our original plan only to do grading work, and have taken on a long list of other disciplines, and that has been good for our business. Hiring Jake Machado as our superintendent added to that diversity, with Jake’s many years in the business and his knowledge of construction.” Russell plans to ramp up and be even more aggressive with his marketing campaign this coming spring. “I intend to split our company into three main divisions, including civil engineering, site management, and on-site construction services. When you are in control of all three of these areas, you can be in the unique position of calling all of the shots on a job site,” says Russell. “That means everything from planning to implementation, and that is where a company like ours can be the most productive, efficient and profitable.” Cc
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A History of Paving and Grading Excellence in North San Diego County and Beyond. By Brian Hoover, CMS, Senior Editor Photos By Kerry Hoover Sean Repko is not your average Joe, especially when it comes to best business practices and customer service. Repko did not start out his professional career in the construction business but instead made his mark in the computer industry. He worked for blue chip companies like Burroughs/Unysis and Xerox after graduating from St. Bonaventure University in Upstate New York with a B.S. Degree in Economics and a secondary degree in Spanish from the University of Madrid, Spain. Repko had remained in this field for 25-plus years. As a consummate entrepreneur, Repko created his first startup back in 1983 that reached the Inc.500 in both 1989 and 1991 as one of the fastest growing companies in the U.S. He has bought and sold several other companies throughout the years to compliment his businesses. After a short stint with a start-up dot com business before the dot com industry imploded he was ready for a change. “I was looking for a back to basics meat and potatoes type of company to invest in back in 2001 and an opportunity to buy an existing asphalt paving business came across my desk,” says Repko. “I knew absolutely nothing about the business, but had colleagues in my area of work who knew of and introduced me to several large and successful grading and paving contractors throughout
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Above: Sean Repko, Owner and President of Joe's Paving Company standing with his Volvo P7170 asphalt paving machine.
the United States.” Repko flew out to the east coast to meet with these contractors, and he began to get a feel for what the paving and grading business was all about. “I knew the risks associated with buying a company that I was not familiar with, but as I continued my research, I realized that unlike on the east coast, I lived and worked in a climate with very little rain or inclement weather and for all practical purposes, a 12-month working season. I decided to have a meeting with the owner of the paving business that was for sale.” Joe's Paving Company started out in 1972 with a focus on small patch and driveway paving jobs. The owner of Joe’s
2017 Grading & excavating ISSUE CALCONTRACTOR
Paving Company, Joe Rodriguez, was getting ready to retire after 30 years in business. Repko met with Rodriguez in 2001, and after doing the due diligence, Repko let the owner know that he was very interested in buying his company, but he had one small request. “I asked Joe if he would allow me to shadow him for 90 days to confirm that I was indeed capable of making it all work out,” says Repko. “I started every day at 5:30 (a.m.), and in a relatively short time, I learned the business and so in November 2001, I pulled the trigger and bought Joe’s paving and grading business.” Repko points out that he was impressed with Joe’s business sense, and the fact that his company had been around a long
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time without any debt. He also knew going in that the paving and grading business could be a costly venture for someone to start from scratch. “Joe had two of everything, and even though the equipment was not new, it was viable, and the business was pretty much turnkey,” says Repko. “I just felt that I was well positioned to take over this business, and looked forward to using the marketing knowledge and skills that I had learned from my years in the computer business.” Repko made a few changes right away, like moving the company from a DBA to a corporation to protect himself and get a fresh start. It has been 16 years since Repko bought the business from Joe Rodriguez, and in that time, the company has gone from $3 million to around $10 million annually. According to Repko, the plan for growth was simple yet
effective. Take on larger projects including commercial, industrial and residential tracts, while continuing to market to individual homeowners. “As our business improved, we increased our staff and began hiring only the best operators and laborers,” says Repko. “To this day, our company continues to hire talented and motivated individuals, and our dedicated employees are the main component of our company's success.” Since 2001, Joe’s Paving Company has grown into a large paving and grading company with just under 50 employees. They have performed high profile commercial paving projects for commercial clients like the Lawrence Welk Resort and Pechanga Casino, as well as residential clients in areas like The Rivers Estates in Rancho Santa Fe and The Hilltop Estates in Fallbrook. “We take tremendous pride in every job
we do, whether it be a $700,000 project where we are the general contractor doing everything from asphalt paving to the concrete flat work including curb and gutter, to a one-day residential driveway job,” says Repko. “This is a good, healthy business, and I like working outside, where no two days are the same. We are a full-service contractor with specialized asphalt and concrete crews and dedicated maintenance crews that work daily for municipalities and other agencies.” Joe’s Paving Company recently completed what they would consider a typical job for the Ford dealership in Escondido. According to Repko, the dealership had built a new building and wanted a new parking lot to go with the upgrades. “The work had to done over two weekends so as not to disturb their customer service and business in general,” says
Left: Joe's Paving Company laying down a tack coat over milled pavement at Ford dealership job in Escondido. Right: Elgin Broom Bear sweeper cleaning up milled grinding material on jobsite in Escondido.
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2017 Grading & excavating ISSUE CALCONTRACTOR
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Above Left: Joe's Paving Company's Volvo P7170 asphalt paving machine laying down an inch and a half mat for Ford dealership in Escondido. Above Right: Utilizing three Volvo DD25B double drum vibratory rollers to compact asphalt overlay on job in Escondido.
Repko. “We came in at 7 a.m. on a Saturday and performed a 1 ½ inch top grind over a 37,000 square foot section at the rear of the property, and after sweeping and putting down a tack coat, we laid down an inch and a half overlay and then compacted the asphalt mix.” Joe’s Paving Company repeated the same schedule and procedures the following Saturday on the same amount of square footage. “That is a lot of work to get done in two Saturdays, and there was an extensive amount of overtime involved, but that is what they were paying us for, and our guys did an exceptional job,” says Repko. “The project was fairly cut up in sections that required a good deal of hand work. Because of this and the tight schedule, we had a crew of 15 to 18 operators and laborers on hand to ensure that the job was completed correctly and on time.” Joe’s Paving Company also recently finished work on a 90,000 square foot parking lot for a very large church in Vista. This job required crews to first remove all of the existing asphalt pavement, install all new curb, gutters, and sidewalks and then install new asphalt. At around $300,000, this was another typical job for Joe’s Paving crews that also required a good amount of grading work. “Most all of our competition went
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after this job, but we had the detailed proposal and the right solution to secure the contract,” says Repko. “It is not always about the price, but more about just exactly what we can do for our clients. As an example, I can tell you that we recently won and completed a job where we were $66,000 higher than the low bidder. We got this job because of our reputation for quality, consistency, and willingness to do whatever it takes to satisfy our customers completely. It is really important to not only listen to what the customer wants but hear what the hot buttons are and then deliver on your proposal. That is a good place to be in with this business.” Repko points out that a part of his company’s success is due to their follow-up and support. “It is not uncommon for our competition to send out bids and then just not follow up with the prospective client. Our guys are trained to continually go back and ask for the business, and we turn around most proposals in two to three days,” says Repko. “Our sweet spot is that we are a bit larger than a lot of the local paving and grading contractors, and we have the equipment and personnel to safely and professionally get in and out of a job and then move on to the next project.”
Joe’s Paving Company has an impressive fleet of equipment, and recently they have been moving everything over to Volvo. “Our guys just like the Volvo equipment better, like our Volvo P7170 commercial paver that we use on our larger projects. We also have smaller Blaw-Knox (Volvo) pavers, and Volvo compact excavators, wheel loaders, and rollers in our fleet. We have probably spent around $1 million in the past six months on upgrading our fleet to new Volvo equipment.” Joe’s Paving Company also owns and operates skip loaders, skid steers, and other equipment. “My operators asked for the Volvo machines because they feel that Volvo is the premium brand to have for the asphalt paving industry. Our Volvo pavers put down a great mat, and with Volvo’s amazing technology and laser capabilities, a lot of the work is automated,” says Repko. “Our local Volvo dealer offers exceptional service, and they train their representatives properly. Our representative is Scott Nadall and he is always there for us when we need him. He never oversells, and if buying is not the right move at the time, he will help us out with a rental.” Repko continues to point out that by making use of all of the automated programs and
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Above: Joe's Paving Company worked over two consecutive Saturday's to pave more than 75,000 square feet of pavement at a Ford dealership in Escondido. A crew of 15 to 18 operators and laborers were on hand to ensure that the job was completed on time and to specifications.
equipment available, he was able to grow his business relatively quickly. “We now have six estimators, full-time mechanics to maintain our equipment, all new trucks, pavers, rollers, miniexcavators and other equipment,” says Repko. “The whole idea is not to be maintaining equipment for 20 years. My plan is to keep a machine for three or four years, and then sell it to our competition. Remaining on the cutting edge is good for us and equally good for our clients.” Sean Repko will tell you that he is in the service business and he has a different way of doing things. “I learned from one of the best marketing organizations in the world, Xerox, and that has been invaluable for me to have that under my belt in my daily interactions in the construction industry,” says Repko. “I interact directly with key accounts and have been successful in introducing several interesting and valuable programs to the municipalities. Sometimes it is about thinking outside of the box, and we have been effective in packaging one to three-year programs with the municipalities who typically go low bid. These contracts have been a win/win and have kept the competition at bay. These six-figure contracts have become our base of business that we can rely on
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each month, while the bigger jobs become the supplemental business or icing on the cake if you will.” Joe’s Paving Company is headquartered in the heart of Valley Center, and they serve a relatively wide area. They have worked as far to the east as Lake Havasu and north to Irvine, Long Beach, and Temecula. Their core business, however, is located in North San Diego County in areas like Valley Center, Escondido, San Marcos, Vista, and Fallbrook. Their certified crews specialize in asphalt paving construction for both residential and commercial clients. They have built their business over the past 45 years catering to new home tract developments, private roads, shopping centers, industrial parks, mobile home parks, homeowner’s associations and much more. “I am fortunate to have such a great crew working here, and I would like to thank each employee individually. Almost every employee that worked for Joe back in the day remains a part of our team, some with more than 30 years with the company. I would especially like to recognize our general manager, John Martinez, who has worked for some of the largest asphalt contractors in California in his 30 years of experience. Additionally, I want
2017 Grading & excavating ISSUE CALCONTRACTOR
to acknowledge David Huber our general superintendent, who has also worked for some of San Diego’s industry leaders over his many years of service,” says Repko. “When I think of the wonderful individuals who have kindly assisted me along the way, Mr. Jim Bostick comes in at the top of the list. Jim was there for me in the beginning, helping me out and even coming to my office to help me set up the company properly.” Sean Repko has a long and successful track record in business, and like any consummate professional, he has flirted with a transition plan for his company. “I think the grading and paving business has worked out well for me because of the guaranteed contracts that I have put in place. This concept minimizes downtime or financial losses, and I think that will be a great benefit should I decide to sell the business in the future,” says Repko. “That may come sooner or later, but I have always wanted to move to Havana, Cuba and perhaps work on the infrastructure there. I speak fluent Spanish and have been there five times and just love it.” For more information on Joe’s Paving Company, please visit their website at www. pavingamerica.com or call (760) 749-0519. Cc
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15 Bills Signed Into Law To Help Increase Supply and Affordability of Housing in California.
Above: Median price of homes listed for sale in California is $499,990, and is $1,104,000 in San Francisco. Compare those prices to the median household income of $64,500 and you can begin to see why owning a home in California is so difficult for so many.
California homebuilders are standing by and ready to build homes and meet the demand for housing in California, but can the average Californian afford a new home? According to published reports, the average household income in California in 2016 was $64,500, that's $8,725 higher than the national average. Wow, sounds good right? Wrong. When you look at the numbers, owning a home in California is getting more difficult by the day. According to the Census ACS 1 Year Survey, the median price of homes listed for sale is $499,990 and the median price of homes sold is $458,599. That is only the median price throughout California, keep in mind that the
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median price in San Francisco, for instance, is $1,104,000. So where are folks supposed to live when they can’t afford to buy a home? An apartment or rental home, right? Well according to rent trend data at rentjungle.com, California rental rate increases are double that of the national rate with a 4.9 percent annual
2017 Grading & excavating ISSUE CALCONTRACTOR
increase compared to 2.5 percent nationally. According to apartmentlist.com, the median rental rate in California for a onebedroom apartment is $1,350 and $1,740 for a two-bedroom apartment. If you are interested in renting in Los Angeles, you will be looking at around $2,183 for a one-bedroom and a whopping $3,615 a month in San Francisco, as stated in the Census ACS Survey. When you combine these statistics with the fact that many of our young people today are strapped with the repayment of college loans and credit card debt that is inching more and more toward 2008 numbers, you can see why there is currently a housing crisis in California.
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So, is anyone doing anything to remedy this situation? Governor Edmund G. Brown Jr. recently signed into law 15 bills designed to help increase the supply and affordability of housing in California. The measures provide funding for affordable housing, reduce regulations, boost construction and strengthen existing housing laws. "These new laws will help cut red tape and encourage more and affordable housing, including shelter for the growing number of homeless in California," said Governor Brown. The Governor signed the housing bills at Hunters View, an affordable housing project located in the Bayview Hunters Point neighborhood of San Francisco. The public housing project was recently redeveloped with the help of federal, state and private partners. "This package has everything from A to Z - affordability to zoning," said Assembly Speaker Anthony Rendon. "It's not a magic wand, but it is going to put a lot of drafting tools,
backhoes, hammers, and door keys to work. I'm proud of how the Assembly helped shape this package and of the real results it will deliver for Californians." "No one should have to work three full-time jobs just to provide a home for their family," said Senate President pro Tempore Kevin de Leon. "This bipartisan package by the legislature marks an historic step towards our goal of ensuring that every Californian has a place to call home." "This combination of housing bills developed by the Legislature and Governor Brown address many of the issues that have taken a toll on the construction of housing in California," said State Building and Construction Trades Council of California president Robbie Hunter. "These bills will streamline decision-making and the environmental review process, thereby reducing costs, and they will add billions of dollars for new, much-needed affordable housing." "The Governor's action marks an important shift in
our state's housing policies toward a greater commitment to Californians struggling to keep a roof over their head," said Housing California executive director Lisa Hershey. "SB 2 and SB 3 provide an influx of funds to spur development of affordable homes, and AB 1505 allows localities to create more inclusive, mixed-income communities. Housing California looks forward to continuing the work our lawmakers have begun." "These new funds will replenish the state's proven affordable housing programs and jump-start many, many projects that are ready to get started and will make a real impact," said Jack Gardner, president and CEO of The John Stewart Company, which redeveloped the San Francisco Hunters View project. "At the same time, the regulatory changes will help get shovels in the ground and reduce the time and expense of providing critically-needed affordable housing for struggling California families."
Below: 15 Bills recently signed into law are designed to provide critically-needed affordable housing for struggling California families.
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2017 Grading & excavating ISSUE CALCONTRACTOR
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Above Left: Housing prices continue to rise, along with rental rates, creating a housing crisis in Califonria. Above Right: The median rental rate in California for a one-bedroom apartment is $1,350 and $1,740
for a two-bedroom apartment. If you are interested in renting in Los Angeles, you will be looking at around $2,183 for a one-bedroom and a whopping $3,615 a month in San Francisco. The Governor signed the following bills into law: SB 2 (Atkins), the Building Homes and Jobs Act, establishes a permanent funding source for affordable housing through a $75 fee on real estate transaction documents. The fee is capped at $225 per transaction and exempts real estate sales. The fees would generate roughly $250 million a year, which would be split among state and local housing programs. SB 3 (Beall) authorizes $4 billion in general obligation bonds for affordable housing programs and a veteran's home ownership program. SB 3 must be approved by voters next November. SB 35 (Wiener) streamlines the approval process for infill developments in local communities that have failed to meet their regional housing needs. SB 166 (Skinner) ensures that cities maintain an ongoing supply of housing construction sites for residents of various income levels. SB 167 (Skinner) increases the standard of proof required for a local government to justify a denial of low- and moderateincome housing development
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projects. (SB 167 is identical to AB 678.) SB 540 (Roth) streamlines the environmental review process for certain local affordable housing projects. AB 72 (Santiago/Chiu) strengthens the state's ability to enforce laws that require local governments to achieve housing goals. AB 73 (Chiu) gives local governments incentives to create housing on infill sites near public transportation. AB 571 (E. Garcia) makes it easier to develop farmworker housing by easing qualifications for the Farmworker Housing Tax Credit. AB 678 (Bocanegra) increases the standard of proof required for a local government to justify its denial of low- to moderate-income housing development projects. (AB 678 is identical to SB 167.) AB 879 (Grayson) authorizes a study of local fees charged to new residential developments that will also include a proposal to substantially reduce such fees. AB 1397 (Low) makes changes to the definition of land suitable for residential development to increase the number of sites where new
multifamily housing can be built. AB 1505 (Bloom/Bradford/ Chiu/Gloria) authorizes cities and counties to adopt an inclusionary ordinance for residential rental units in order to create affordable housing. "People shouldn't have to the leave the state in order to find affordable housing or achieve the American dream of home ownership," said Senator Steven Bradford (D-Gardena.) AB 1515 (Daly) allows housing projects to be afforded the protections of the Housing Accountability Act if the project is consistent with local planning rules despite local opposition. AB 1521 (Bloom/Chiu) gives experienced housing organizations a first right of refusal to purchase affordable housing developments in order to keep the units affordable. This new legislation is definitely a step in the right direction, however much more may be required to help keep California viable for middle income and low income families. For full text of the bills, visit: http://leginfo.legislature.ca.gov Cc
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JOHN DEERE ADDS SMARTGRADE™ CAPABILITIES TO THE 650K CRAWLER DOZER AND EXPANDS TRACK CONFIGURATIONS ON MULTIPLE MODELS John Deere SmartGrade™ is now available on the 650K crawler dozer, joining the 700K, 750K and 850K models equipped with the technology. The integrated Topcon 3D-MC2 Grade Control System improves job site accuracy and work quality — delivering precise grading performance while eliminating vulnerable external masts and cables. The 650K SmartGrade boasts a 104 horsepower EPA Final Tier 4 John Deere engine. The model's cab-forward designs make visibility, safety, and precise grading a priority. Exclusive Total Machine Control comes standard with this model, providing customers with personalization options and optimal comfort. Since SmartGrade is integrated into the machines, it removes the need to install blade-mounted sensors and components daily, reducing setup time and allowing operators to get to work. Eliminating external cables to the masts reduces breakage, and the removal of the masts from the blade eliminates vulnerability to damage and theft. The Auto SmartGrade feature, which is ideal for novice and expert operators alike, identifies the soil type and easily adjusts the machine to new terrain, without operators having to adjust the blades manually. Operators can easily select the application type (grading, cutting, spreading), load setting
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(high, medium, low) and soil conditions (hard, packed, loose). This feature stops slippage before it occurs by automatically lifting the blade. It also reduces the number of passes required to complete a job, reducing the wear of the undercarriage over time. John Deere dozers equipped with SmartGrade technology are approximately 7 percent more accurate, than those with conventional masted systems. All SmartGrade machines are now available in LGP or XLT track configurations. The LGP configuration is ideal for customers who operate on low ground pressure conditions, such as damp or wet terrains, or on a steep slope. LGP models contain a wider than usual track gauge that provides excellent stability and blade control for light grading jobs. In contrast, the XLT configuration is best for
2017 Grading & excavating ISSUE CALCONTRACTOR
rocky terrains and can withstand heavier loads. Fleet managers looking to get the most out of their SmartGrade dozers can rely on their John Deere dealers to provide Ultimate Uptime, featuring John Deere WorkSight. With Ultimate Uptime, owners receive predelivery and follow-up inspections that include five years of JDLink™ telematics, machine health prognostics, remote diagnostics, programming capabilities and the ability to add dealer-provided uptime solutions to create a customized package. For additional information and model-specific specifications, visit www.JohnDeere.com or contact your local dealer for a demo. Cc
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THREE NEXT GENERATION CAT® EXCAVATORS DELIVER MORE CHOICES FOR INCREASED EFFICIENCY AND LOWER OPERATING COSTS IN 20-TON SIZE CLASS Three Next Generation 20-ton size class excavators from Caterpillar—the 320 GC, 320 and 323—increase operating efficiency, lower fuel and maintenance costs, and improve operator comfort compared to previous models. The new excavators offer unique combinations of purpose-built features designed to match customers’ productivity and cost targets. Still the 20-ton class standard, the new Cat® 320 raises the bar for efficiency with integrated Cat Connect Technology that advances productivity gains. Standard technology combined with lower fuel and maintenance costs deliver low-cost production in medium- to heavy-duty applications. Designed for low- to mediumduty applications, the new Cat 320 GC combines the right balance of productivity features with reduced fuel consumption and maintenance costs. The result is high reliability and low cost-perhour performance. Delivering high production performance, the new premium Cat 323 boasts standard integrated Cat Connect Technology and the most power and lift capacity in the line. These features combine with lower fuel consumption and reduced maintenance costs to deliver maximum productivity at the lowest cost. Offering guidance for depth, slope and horizontal distance to grade, the Cat Grade with 2D system helps operators reach desired grade quickly and accurately. Using the system’s
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E-fence feature enables the machine to work safely under structures or near traffic by preventing any part of the excavator from moving outside operator-defined set points. The standard 2D system can be upgraded to Cat Grade with Advanced 2D or Cat Grade with 3D. Standard Grade Assist automates boom, stick and bucket movements, so operators stay on grade simply and effortlessly with single-lever digging. Cat Payload on-board weighing, integrated on the Cat 320 and 323 at the factory, delivers precise load targets and increased loading efficiency with on-the-go weighing and real-time payload estimates without swinging to prevent truck over/under-loading. Cat LINK™ hardware and software connect jobsites to the office and provide customers with machine-critical operating information. Durable Cat engines provide
duty-matched power ratings from 121 to 162 hp for the three new excavators. The efficient Next Generation machines consume 20 to 25 percent less fuel than the previous, corresponding models. New Smart mode operation automatically matches engine and hydraulic power to digging conditions, optimizing both fuel consumption and performance. Engine speed is automatically lowered when there is no hydraulic demand to further reduce fuel usage. Offering extended and more synchronized maintenance intervals, the new Cat excavators do more work at a lower cost and reduce maintenance costs by up to 15 percent over the previous series. For more information about Cat Next Generation Hydraulic Excavators, contact the local Cat dealer or go to: www.cat.com. Cc
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ADVERTISER INDEX
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Clairemont Equipment . . . . . . . . . . . . . . 30
RDO Equipment Co. . . . . . . . . . . . . . . . . . 5
Coastline Equipment . . . . . . . . . . . . . . . . 3
Savala Equipment Rentals . . . . . . . . . . . 9
Coastline Equipment Crane Div. . . . . . 25
Scott Equipment . . . . . . . . . . . . . . . . . . . 25
FMG, Grinding & CIR / Graniterock . . . 23
Sonsray Machinery . . . . . . . . . . . . . . . . 31
Hawthorne CAT . . . . . . . . . . . . . . . . . . . . 2
Sukut Equipment Parts & Rentals . . . . 13
Irontrac Heavy Equipment . . . . . . . . . . 23
Trench Shoring Company . . . . . . . . . . . 17
Nixon-Egli Equipment Co . . . back Cover
UB Equipment Corp. . . . . . . . . . . . . . . . 19
Quinn CAT . . . . . . . . . . . . . . . . . . . . . . . . . 2
Volvo Construction Equip. & Svcs. . . . 11
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LEEBOY AND RANCHO PAVING, INC. Left; Rancho Paving, Inc. paving a new residential driveway with their new LeeBoy 8510D paver in Escondido. Below; Rancho Paving, Inc. paving crew on-site at a private residence in Escondido.
“LeeBoy paving machines give us the advantage we need in this competitive market. Their engineering and dependability are second to none.” - Ernesto Monzon, Owner, Rancho Paving, Inc. Rancho Paving, Inc. has been specializing in asphalt work, seal coating and concrete projects since 2004. The company is owned by Ernesto Monzon and located in San Diego. They currently have 30 employees and run two LeeBoy paving machines. Their newest machine is a LeeBoy 8510D purchased from Nixon-Egli Equipment Co. Erik Sanchez, Mechanic, Rancho Paving, Inc. comments, “LeeBoy paving machines are the best pavers in their class. They’re nimble in tight spaces, they can fit anywhere and pave around any obstacles with ease. The controls are user-friendly and practical, and there wasn’t any down-time between training and production with our new LeeBoy 8510D. The electronic screed is the best feature, it lays down a perfect mat.” Sanchez adds, “Nixon-Egli was great to work with during the sale. Allen Hahn the salesman let us demo the unit before purchase. The whole Nixon-Egli team from sales, service to parts has been there for us every step of the way.”
California’s Largest General Line Construction and Municipal Equipment Dealer. So. California: 2044 S. Vineyard Ave., Ontario, CA 91761 • (909) 930-1822 No. California: 800 E. Grant Line Rd., Tracy, CA 95304 • (209) 830-8600 www.nixon-egli.com