Staron Newsletter January 2012

a CIANBRO company JANUARY 2012 NEWSLETTER

Large Construction Project Update: Gulf Coast Fractionators

By Mike Golla and Shawn Doyle Starcon currently has more than 140

team members working on the expan-

sion project at Gulf Coast Fractionators in Mont Belvieu, Texas. The project began in May of 2011. It is the largest construction project that Starcon has managed in many years. The Starcon team recently hosted a team lunch to celebrate 100,000 safe hours (zero incidents, and only two first aid cases).

Gulf Coast Fractionators is a large natural gas processing plant owned

by ConocoPhillips (the plant operator),

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Devon Energy and Targa Resources.

The owner partners are spending more than $75 million to expand the natural gas liquids fractionation capacity by 42 percent to 145,000 barrels per day (bpd), installing new towers, pumps, boilers, cooling towers, piping, compressors, etc.

Starcon was awarded the project based on a competitive bid and our past performance with turnarounds at the plant. Additionally, the plant manager had worked with Starcon Project Manager Shawn Doyle on a similar ConocoPhillips plant in Trinidad years ago.

The job also includes the largest civil work performed by Starcon, with over 1,800 total cubic yards of concrete for more than 38 equipment and structural foundations. The project scope also includes: • 323 piping tie-ins (including 213 for the March 2012 turnaround) • 26 structures and 200 tons of structural steel • 24 hot-taps • 8 engineered lifts

The construction project should finish in March, followed by a 30 day

turnaround that will be managed by Starcon with more than 500 team members.

Starcon also assembled a 300 ton crane for the project, and has been assisting with some daily maintenance work.

One of the initial challenges during the project was working in a hot, operating gas plant during the warmest summer on record in the Houston area, with over 30 days of daily temperatures exceeding 100 degrees Fahrenheit.

The plant has weekly progress meetings with Starcon to review safety, schedule, cost, procurement, quality, etc.

Starcon has currently completed more than 400 welds with a 100 percent pass rate.

Congratulations to the Starcon team for their performance during this project!

STARCON / JANUARY 2012

a CIANBRO company

As we finish up with the fourth quarter of 2011, we remain focused on Improving our Safety, Taking care of our People, Satisfying our Customers and Building Financial Stability across the company. We identified these critical areas in early 2011 and we remain diligent in driving for improvements as we finish up a strong year in 2011.

During the summer of 2011, Starcon focused much Dale Kuntz of our efforts on training our management team in the principles of Leading with Safety.

Our goal of Beyond Zero continues as we work to further educate the frontline workforce to identify exposure, recognize hazards, practice excellent safety behaviors and achieve the great safety performance that is expected from a world class organization. In November of 2011, Starcon shared a safety video with everyone reinforcing the key elements of Leading with Safety. Together we will continue on our journey to our Beyond Zero goal where all incidents and accidents can be prevented. Keeping our people safe remains our number one value.

During 2011, Starcon continued to have excellent results in securing revenues across the North, South and West Regions. Our revenue performance through the fourth quarter of 2011 is well ahead of our plan. Our net margin contribution is below plan due to some unplanned events that occurred at the beginning of 2011. But many of these events were unforeseen and not directly within our control. Our fall turnarounds in the North Region, South Region and West Region were executed safely, with excellent quality, excellent productivity and achieved our customer schedules. Keeping our customers satisfied while exceeding their expectations helps to build strong relationships. The North Region continues to grow the maintenance business across the Chicago/Illinois, PAGE 2

PRESIDENT’S MESSAGE Ohio/Indiana/Minnesota and the Kentucky/West Virginia areas. This is a tribute to the team work and dedication of all our maintenance sites and departments working together to accomplish this goal. The Tri-State Area also opened up a new office just west of Charleston, West Virginia to support the customers in that region. Our West Region just completed several significant turnarounds very successfully in California and Washington State. The small capital and mid capital projects in California are starting to expand outside of the Refining and Petrochemical market, into Food, Beverage, Power and other secondary markets.

This is aligned with our strategic growth plan for the West Region. The South Region recently completed major turnaround and project work in New Jersey, Kentucky, Texas, Illinois and Tennessee. The South Region will also start up a new maintenance site in Texas which will provide new opportunities for growth for our team members. A special thanks goes out to all of the departments who supported Operations during the fall turnaround and project season.

In early November, we completed phase 1 of our CMiC integrated software conversion. This was a major undertaking for both Starcon and Cianbro and required cross functional teams to work together for several months on the conversion of this enterprise software system. The CMiC system will allow Starcon to manage our financial systems on the same platform that Cianbro uses, and will increase the predictability of our work, which will lead to improved financial performance. This was an outstanding project and many thanks to everyone who supported CMiC on the Starcon and Cianbro side. Well done!

Our Business Development team is busy securing new opportunities for 2012 utilizing the new Cosential Data base. We have continued to work closely with Cianbro on modular and capital project opportunities where we can support each other and together provide another contracting resource for our customers to consider when they make decisions about performing this type of work during the coming

year. The overall business opportunities in 2012 look very promising at this time.

Our Human Resources department has many new items to share including a new team member handbook as well as some revised policies and procedures. One of the changes will be some flexibility in our vacation plan for 2012 and the printing of vacation balances on the check stubs so that team members can track their own balances. Over the past few weeks our Risk Department and the Human Resource Department met with our Health Care Provider, Blue Cross Blue Shield. We reviewed the challenges of insurance costs rising by over 10 percent nationally. Due to our efforts and Starcon finishing up 2011 with medical costs in a very favorable position, below expected, we will be able to keep out-of-pocket costs neutral for our team members as we go into 2012. This is very positive news to all team members for 2012 regarding the medical insurance renewal process.

In December, we finalized our 401K match percentages for team members who participate in the 401K plan. This is very positive news for those team members who take advantage of the 401K plan. We encourage everyone who qualifies to enroll into the 401K plan for 2012. It is never too late to plan for retirement.

Our relationship with Cianbro continues to strengthen as we support each other on selected operational projects, safety processes, estimating, logistics, and financial, accounting, legal, contracts and risk management.

We are beginning to look for more opportunities to work together on large capital, modular and small capital projects. We will continue to pursue these opportunities where it makes good business sense for everyone.

Finally, as we head into 2012, your continued focus on your personal safety and your team members’ safety is paramount. The company has made many significant improvements through 2011. Your dedication and commitment is very much appreciated as we build a stronger Starcon for tomorrow.

Dale

STARCON / JANUARY 2012

a CIANBRO company

Tri-State Team Members Show What “Team�

Really Means

By Lewie Strange Over the past several years, the TriState team members of Starcon have lived up to the company’s visions and values. Along with multiple charitable donations of large sums all gathered within the sites, team members have performed dozens of construction projects for the elderly and disabled.

One of the projects organized by Starcon team members was a large demolition job inside the Safe Harbor shelter in Ashland, Kentucky that saved the foundation close to $30,000. More than 50 volunteers participated in the effort, including Starcon business partners in the Tri-State Area. For the last three Christmas Seasons, the Starcon groups have donated enough money to buy gifts for more than 25 children and their moms who are staying at the shelters.

You can not put a dollar figure on the joy that this brings to the children and families that are less fortunate or on hard times. I would like to thank each team member personally who not only

donated their personal time and money, but have stepped up to be the pinnacle of Starcon community service. This type of commitment is what sets Starcon team members apart from all other contractors in the industry.

I would like to thank each member personally who not only donated their personal time and money, but have stepped up to be the pinnacle of Starcon community service.

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STARCON / JANUARY 2012

a CIANBRO company

WELCOME

Starcon Welcomes New Team Members Les Callender

Les Callender joined Starcon as an additional business development manager for the South Region, primarily focused on the large industrial market in Louisiana.

Les has developed industrial business in Louisiana for over 17 years, most recently working in business development for Plant Performance Services. Les is a Louisiana native, and has strong relationships with many refining and chemical customers there, especially ExxonMobil and Shell / Motiva. His skills, experience, accomplishments and credibility will help Starcon to gain new business quickly, and also to help develop a strong foundation for future work in Louisiana.

Les lives in Denham Springs, Louisiana, and is married with three children. He has a business / marketing degree from Louisiana State University.

Peggy Hobbs On October 3rd, Peggy Hobbs joined the Starcon Team in Manhattan, Illinois as our full time receptionist, reporting directly to Corporate HR Manager Kraig Kistinger. Peggy was recently employed through a staffing company on assignment as our Manhattan Office receptionist and has a diverse administrative background ranging from accounts payable to safety. Peggy is very excited to be joining the Starcon team and is looking forward to the challenges of the position and supporting the staff. Peggy and her family live locally in Manhattan.

Jack Crissey

Jack Crissey joined the Starcon team in September as the South Region QA/QC manager. Jack comes to us with 30 years of extensive experience. He holds a BSME from the University of Texas, Austin and received his MBA from Lamar University in Beaumont, Texas. He holds American Society for Nondestructive Testing (ASNT) certifications as a level III in Radiography, Dye Penetrant, and Visual testing and inspection.

Jack has a four year old daughter who is his pride and JOY. Jack also enjoys music, golf and auto mechanics and plays several instruments.

Jack will be home-based at the La Porte, Texas office and we are all glad to have him join the Starcon team. We welcome him and all the skills he brings to assist Starcon PAGE 4

going forward as a quality and safety-oriented, revenuegrowing organization.

Scotty Fontenot

Starcon recently hired Scotty Fontenot as a project manager. Scotty has more than 16 years of experience in construction with an emphasis in management, project controls, and estimating. He earned his bachelors degree with a minor in applied science from Nicholls State University, where he attended on a half academic / half athletic scholarship. He began his career while in college, working for SHAW through an internship. Upon completion of his internship, he decided on the path of industrial mechanical construction, working primarily in petrochemicals and refining. Scotty has functioned on projects with the project manager, as the owner, the construction management group, and as the general contractor. This experience has given him an immeasurable knowledge and insight as to what our (Starcon) clients’ expectations are, and how we can meet and/or exceed those expectations.

Scotty is a very, very proud single father of a seven year old son named Jackson who is active in Tai-Kwon-Do, soccer, and baseball.

What people do not know about Scotty: “I played USISL semi-pro soccer for the New Orleans Gamblers for two years, then signed pro for Costa Rica Lacsa in Costa Rica for one and a half years before calling it quits due to injuries.”

Rachel Allen

Rachel Allen joined the Starcon team in La Porte, Texas on August 8 as our full time receptionist, reporting directly to Lisa Baylor. Rachel was recently employed through a staffing company on assignment as our La Porte Office receptionist.

She looks forward to assisting the staff and helping the company to achieve new successes. Rachel and her husband, Matt, are in the process of becoming home owners in League City, Texas.

Kellie Emge

Kellie Emge joined our team in August of 2011 as an HR Assistant for the West Coast.

Kellie comes to our department as a brand new professional in the HR industry.

She graduated in June of 2011 with a Bachelor of Science degree in Human Development and a minor in Psychology. Kellie aspires to serve in Corporate HR sometime in the future.

STARCON / JANUARY 2012

a CIANBRO company

Starcon Selected as “Employer of the Year” by American Legion Post Starcon was recently selected as “Employer of the Year 2011” by the American Legion in Deer Park, Texas.

Starcon has made donations to the Deer Park Post 319.

The Legionnaires have helped Starcon to dispose of flags that were damaged by wind at the Starcon office in La Porte.

The Post considered it a privilege and an honor to handle the disposal of the flags, and commended Starcon for taking care of the flags properly. The donations are used for the Legion’s “four pillars” – Americanism, Children and Youth, Community, and National Security, or to help our veterans and military.

The American Legion invited Starcon to celebrate Veterans’ Day with the Deer Park Post on November 11th, and Starcon received the award. The ceremony included guest speakers, local enlisted personnel, and local veterans from the Navy, Air Force, Army and Marines. Local police officers and detectives also received achievement awards.

Starcon was represented by Director of Business Development, Michael Golla. Families and children were welcome, and two of Michael’s sons attended the event, met some veterans, and heard some great stories about courage!

Starcon’s Corporate HSE Team Builds 2012 Strategies

By Mike Duncan By the fall of 2011, Starcon’s Health, Safety and Environment (HSE) corporate team was already planning for 2012.

During the week of September 12th, our team spent several days together to review 2011 and take a critical look at what has gone well and where improvements can be made.

Our first session set the stage for on-going discussions. The focus: cognitive bias. We learned how we each are biased and how these characteristics impact relationships, team building, and decision making. Additionally, we performed individual SWOT Analyses (Strengths, Weaknesses, Opportunities, Threats) to build on our strengths and address improvement opportunities. Mid-week, we took a break from the conference room and spent a day at Gulf Coast Fractionators where we toured the facilities, performed observations, attended their BBS meeting, and assisted in the roll-out of the Personal Safety Plan process to local leadership. We returned to La Porte to finish the week with a 2012 budget forecast review PAGE 5

(L to R): Michael Caughey, Susan Spann, Ta’Mara Foster, Shirley Chalmers, Mike Duncan, and Dave Blastick

and to finish developing 2012’s program strategies.

We are excited about 2012 and look forward to being a part of Starcon’s ongoing success!

STARCON / JANUARY 2012

a CIANBRO company

NCCER Safety Certification While looking over the resources that Starcon has for HSE support to jobsites in the Chicagoland area, it became clear to Instructor Jonathan Jones that the greatest opportunity was to support the company’s Vision & Values, primarily the Value of “Team Member Growth and Development.”

Traditionally, when Starcon had a turnaround or Capital Project in the Chicago area, the company would summon safety professionals from other areas of the country. This model typically served Starcon well, but there were several short falls with it, too. The travelers did not know the plant layout, site-specific policies or rules, leadership teams and client resources. Jonathan spoke to Starcon’s Training & Development Manager Tom Wanamaker, and a great solution was found. Tom pointed out the fact that Starcon had the ability to facilitate National Center for Construction Education and Research (NCCER) accredited developmental safety training for local team members who wanted to enter into the safety field. After looking into this, the pair learned that team members who successfully complete the course would be NCCER certified in Field Safety and as Construction Site Safety Technicians.

This was all that was needed in order to take the next step. They worked up a cost estimate and went to Reggie Williams, Vice President of the Northern Region. Jonathan shared the benefits with him and Reggie was on board immediately. Then Tom and Jonathan lined up the instructor, Shane Coon, and the initiative was underway.

Soon, Jonathan sent an email to all the project managers in the Chicagoland area which the managers would share with team members in morning safety meetings. The email said that if any team members were interested in becoming NCCER certified safety techs, PAGE 6

Dale leads a discussion with the team

the TMs should let the project managers know. The project managers would forward the names to HR and to Jonathan, and he would follow up. When all the names were gathered, Jonathan spoke with each team member individually to make sure they knew what they were getting into, and to ensure that the curriculum would deliver the knowledge they were looking for.

Now the company had the training material, an instructor, and a committed group of students; all that was left was to set a schedule and announce that the class was starting. Tom Wanamaker, Shane Coon and Jonathan Jones developed a plan and established a calendar.

On June 2, 2011 the participants got underway. The instructors explained to the

students the “Rules of Class,” and made clear that the program was going to be interactive and fun, that the students were expected to ask questions, and that the trainees needed to express their opinions. Those ground rules had an impact right from the start! It was difficult at times to keep the class within the two half hour timeframes each night. The instructors made sure the group understood the commitment was for 18 nights of classes and 36 tests, two nights a week, for a little more than two months.

When it was all said and done, the team members came through class with four NCCER certificates: Field Safety, Safety Technology, Construction Site Safety Technician and Construction Site Safety Supervisor!

THE GRADUATES ARE:

Jim Kick - CSSS, CSST, Field Safety, Safety Technology Ken Sobbe II - CSSS, CSST, Field Safety, Safety Technology Mark Lydick - CSSS, CSST, Field Safety, Safety Technology Mike Harts - CSSS, CSST, Field Safety, Safety Technology Robby Williams - CSSS, CSST, Field Safety, Safety Technology Steve Dobo - CSSS, CSST, Field Safety, Safety Technology Andy Quigley - CSSS, CSST, Field Safety, Safety Technology Justin Orr - CSSS, CSST, Field Safety, Safety Technology Jamie Prodehl - CSSS, CSST, Field Safety, Safety Technology Tom Wanamaker - Safety Technology

Instructors - Jonathan Jones, Shane Coon Guest Contributors - Mike Duncan, Michael Caughey & Dave Blastick Congratulations and well done to all!

STARCON / JANUARY 2012

a CIANBRO company

Starcon Receives Crane and Rigging Endorsement from the NCCER

By Tom Wanamaker Starcon can now train and test the new National Center for Construction Education and Research (NCCER) Crane

and Rigging Program. Our accreditation audit took place on November 15 -16 at the new warehouse in New Lenox, Illinois. We passed with flying colors, thanks to the help of Jim Jenkins (Crane and Rigging Evaluator), Brendon Fort (Crane Operator), Jonathan Jones (Signal Person), Rich Jones (Equipment Coordination), Brian Ohlendorf and Chris Hempen (Site Logistics).

We are now able to provide third party certification to our team members through the NCCER in Signal Person, Basic, Intermediate and Advance Rigging (Level 1, 2 & 3) as well as telescopic boom crane disciplines. The advantage is that the certification is good for five years, is fully transferable, and is considerably cheaper than out-of-house schools. The program is OSHA and ANSI approved.

The Crane and Rigging Evaluators are Jim Jenkins in the Chicago Area (mobile), Kelly McIntosh in the Tri-State Area, and Dustin Lovell for the Ohio Valley. Evaluators cannot train, but can assist in train the trainer and in tweaking our curriculum.

We have identified trainers: Jim Buck and Rich Jones are already certified instructors for the Chicago Area, and BJ Gaul trains in the Tri-State area. John Krienen is the trainer for the Ohio Valley. Trainers need only be certified in-house, so Master Trainers Kelly Sexton, Tom Tatro or Tom Wanamaker can certify additional instructors.

If you are interested in becoming an instructor, becoming certified, or attending training, please contact your area representative or the training department.

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Starcon President Dale Kuntz, Liberty Mutual’s Joe Briley, and family members honor Nathan Martin

Canton Marathon Celebration

By Brian Miller

On November 5th at the Canton McKinley Fraternal Order of Eagles, the team members of the Starcon Canton site and distinguished Marathon guests gathered to celebrate the upcoming holidays and a number of accomplishments.

On September 14, 2011, the site reached the milestone of 5 years and 1.5 million work hours without an OSHA recordable injury. Starcon President / C.O.O. Dale Kuntz was on hand to address the crowd on the magnitude of the feat and what it means to both the site and the company.

A representative from Liberty Mutual attended the celebration to recognize Nathan Martin with the Life Saving Award. Nathan, a student at Ohio State University who has worked at the Canton refinery during the last two summers, was presented the honor for his brave actions during a flash fire in the CCR Unit. His actions possibly saved a number of lives and major equipment damage. Congratulations to Nathan and his family on this distinction.

The night also served as the kick-off for the Canton site’s new VPP program. T-shirts with the C.A.T.C.H (Creating Attitudes That Change Habits) logo were distributed to all team members and Chuck Hester spoke about the program’s roots, expectations and introduced the CATCH committee members.

The evening’s final recognitions were to the site’s Team Members of the Year. All crafts and supervision were voted on by their peers and the management team. They were each presented a certificate and personalized sweatshirt by Project Manager Willie Bryant and Superintendent Mike Quintus. The winners are as follows: Supervisor – Mike Rule

Welder – Randy Troxell Pipe Fitter – Monte Collins Boiler Maker – Mike Dewitt Laborer - Curt Jays Insulator – Greg Scullion Scaffold Builder – Angel Cordova Support Person – Steve Hross It was truly a great time had by all and a springboard to continued success in 2012.

STARCON / JANUARY 2012

a CIANBRO company

Business Development and Marketing Update: “Rainmakers”

By Michael Golla Starcon’s Business Development and Marketing Department recently met at the La Porte office to review our 2012 strategic plan. We also met for a full day to develop plans for re-designing our website and content, including more case studies, to help educate customers on our new value proposition, as discussed in the last newsletter.

Additionally, we reviewed an old book entitled How to Become a Rainmaker – The Rules for Getting and Keeping Customers and Clients. A rainmaker is a person who brings revenue into an organization. Customers’ money is the rain. Every employee must somehow be involved in the identification, attraction, getting, and keeping of customers. Business Development has a lead role, but we all are involved, and there are many different roles in each department.

One of the key points of the book is that rainmakers should always find and sell what is “different.” Our point of difference should be an offset to the competitor. It need not be better or worse than what the competitor does – just different.

Customers may ask, “How is Starcon different than Competitor XYZ?” And we should always know the answer. Our challenge is to find customers who value PAGE 8

our difference.

For example, one of our points of difference is that we are more processdriven than other contractors, with unique processes for improving safety, quality, productivity, cost reduction, and risk reduction. Our new marketing materials are designed to summarize this point of difference along with our unique processes, and our new website will also help educate customers. Meanwhile, several customers have told us that many of our competitors are not tracking productivity, or quality Key Performance Indicators, like Starcon.

In today’s world, when a prospective customer agrees to meet with us, that is a great sign! They are usually too busy to meet with us unless they have a problem, or think they might have an unknown problem that we could help them resolve. So the customer is the patient, and we are the doctor, and our job is to ask lots of questions, learn about their symptoms, and determine if we might have some medicine that can help them.

Maybe their current contractor does not have good safety processes, or is not very productive, or has poor weld quality, or does not have any processes for ensuring continuous improvement. We might have the solution.

Relationships and price are also im-

portant, but many customers also want a process-driven contractor who has good metrics and scorecards, and can document improvements and cost savings like Starcon can. And sometimes we need to teach them to want what they need, and, if possible, to remind them of the dollarized value that they are receiving from Starcon. We aren’t just providing people and processes, but we are providing reduced downtime, fewer repairs, increased output, etc., and we may be able to dollarize those benefits.

Customers who want our advantages are better targets than customers who simply need them. Customers who need Starcon might not know it, so they will need to be educated, which takes more time. On the other hand, customers who want Starcon advantages are already partially sold. In either case, Starcon rainmakers need to find, and educate, if needed, these customers who will value our difference!

Native American tradition exalts the rainmaker, the one who brings rain, essential to the crops that nourish and support the people. Today’s rainmakers bring essential revenue to nourish and support the business organization. We all have a role in bringing the rain!

STARCON / JANUARY 2012

a CIANBRO company

Leading with Safety

By Mike Duncan The second Leading with Safety workshop was held in Lisle, Illinois on July 25-27, 2011. More than 40 leaders from across the corporation attended. On day one, Walter Pinto, plant manager for the LyondellBasell–Morris facility provided the keynote address.

Walter encouraged attendees to make safety a personal commitment and always ensure we have the best people in the right job.

Behavioral Science Technology (BST) provided the workshop material on day two. On day three, each region reported out on their significant lessons learned and their action plan going forward.

The feedback from this session included remarks such as, “The workshop was very well presented, good information”…“Excellent participation”…“I liked meeting other TMs”…”it makes it easier to say we’re a team.” The third workshop was held on August 29-31, 2011 in Napa, California.

The principles taught in Leading with Safety continue to reinforce how leaders can step up and truly make a difference in safety every day. Making safety personal is also a significant part of these discussions. Each attendee will complete a Personal Safety Plan (PSP) that depicts how they “own safety.” Ask your leader to see their PSP and hold them accountable for their commitments. Together, we will create and sustain a Beyond Zero culture. Step up and join us to do your part!

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STARCON / JANUARY 2012

a CIANBRO company

Starcon’s New Culloden Office

By Glenn Hardee The Tri-State Area is very excited about the opening of a new regional office in Culloden, West Virginia.

We currently have 270 Staff and Craft team members assigned to the region. Seven staff team members will be housed at the new office in Culloden including the regional director, regional senior project manager, business development manager, human resources/recruiting manager, regional safety manager, and regional quality control/assurance manager. Also coming on board is Cheryl Webb as the Culloden Office receptionist and general administrative assistant. At present, the Tri-State has five nested maintenance sites which the new office will support, including Marathon (MPC) Catlettsburg, Kentucky; DOW Chemical, South Charleston, West Virginia; Bayer Crop Science Institute, West Virginia; Braskem Chemical, Neal, West Virginia and Kureha PGA, Belle, West Virginia.

The new office site was chosen for its proximity to Interstate 64 and centralized location with regard to all of our current nested sites. The location of the office will also play a crucial role in the region’s overall growth and expansion plan, not just for the new nested sites we will target, but also for future project work expected in the region. Having all of our nested sites and area project Support & Management services housed in one central location will allow for an effective and efficient system to help support and manage daily functions and nurture future growth. At the current configuration, the office can also accommodate temporary housing for two to three visiting guest with amenities, to include wireless and hard wire internet and phone service in each guest office.

We can facilitate up to 12 people in our fully functional conference room which includes internet service, projection equipment, and refreshment/food service capabilities. The office also has a functional training room that has computer based training and testing capabilities, along with space for traditional literary book instruction, training, and testing for up to nine team members at once.

The new site also affords future expansion from an adjoining structure, a 3,000 square foot shop facility.

At this time, the space is occupied by a co-tenant. But Starcon has the option to occupy the space solely in the future, and convert the space into a functioning fabrication shop with a warehousing, tool, and equipment PAGE 10

The client feedback we have received since the opening of the office has been exceptional. We are hearing that our clients are excited to see us make such an investment in the community and that having an area office presents a more permanent and stable presence. secured storage area.

The client feedback we have received since the opening of the office has been exceptional. We are hearing that our clients are excited to see us make such an investment in the community and that having an area office presents a more permanent and stable presence.

The industries we serve and the communities in which we live have come to the realization that Starcon is here to stay!

If you are visiting or traveling in the Tri-State Area, please feel free to come by and tour our facility. Also, if needed, please let us know if you will be working temporarily in the area, and we will try to reserve a guest office or meeting space that will suit your needs.

Our address: Starcon 2181 Route 60 East Culloden, West Virginia 25510

STARCON / JANUARY 2012

a CIANBRO company

Starcon’s ExxonMobil Joliet Team: Seven Years Without a Recordable Injury

By Jonathan Jones Quality, Planning, Knowledge, Performance, and Execution are great buzzwords in our industry. But at ExxonMobil Joliet, these buzzwords are expectations, and the Starcon team members at the Joliet jobsite deliver everyday.

“Our team members out here really care about the job they have to do and how they do it,” said Ben Thayer, site manager for Starcon at ExxonMobil’s Joliet Refinery. “When you start out

with that level of commitment, it’s really easy to get the job done safely.”

Starcon Field Supervisor Aron Ceglarek summed it up this way: “We just want to do a good job every day and keep the client satisfied. The only way to accomplish that goal is to do your whole job right, from planning it to executing it safely. That’s it, that’s all it takes.”

With the level of growth and increased activity for Starcon at the ExxonMobil jobsite, it is a small miracle that the site can keep all they do in check. The base crew of about 25 team

members at ExxonMobil has grown into more Capital and Turn Around work, not to mention pre-existing daily maintenance duties, all because of the team members’ leadership and dedication to performing work safely. So, going seven years without a recordable is very significant.

ExxonMobil Joliet is one of Starcon’s oldest worksites. Building on this foundation, it is easy to see how this team can achieve “Beyond Zero” performance every day.

Starcon’s Toys For Tots Fundraiser

By Brian Miller The first annual STAR-Classic charity golf scramble benefitting Toys for Tots was held on July 31st at the Legends Golf Club in Massillon, Ohio. Twenty-nine teams of four came together on a picture perfect summer day to continue the Starcon Canton site’s yearly support of this great charity. From the WWII era Toys for Tots jeep, to the $1,000 hole-inone challenge, the day was filled with fun and excitement. $3,200 and dozens and dozens of toys were donated through a portion of each entry fee, hole sponsors from our industry partners, a 50/ 50 drawing, and the sale of team mulligans. The event planners and the entire Legends staff made it a first class event that everyone is already committed to continuing next year!

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STARCON / JANUARY 2012

a CIANBRO company

Lyondell Channelview Safety Success

By Ulices R. Quiroga

Back Row (L to R): Joseph VanDruten, Pedro Gomez, Alejandro Moreno, Terry Beck, Javier Gonzalez (Javier 2), Chris Padilla, Javier Espinoza, Luis Muniz, Uli Quiroga Front Row (L to R): Max Llamas, Saul Martinez, Roberto Alejandre, Hector Ochoa, Juan Cantu, Anthony Falcon

Not Pictured: George Guajardo, Antonio Palacios - GCF Javier Gonzalez (Javier 1) - La Porte Shop Brian Walker Projects

With dedication and personal commitment, the team members at Lyondell Channelview have successfully accomplished a Five Year No Recordable milestone. The team members have shown a personal commitment to maintain a safe working environment. This core panel faces weekly challenges with the fluctuation of head count and client demands.

The team stays focused on Stop Work Obligations when activity calls for it.

The core group remembers August 12, 2006. This is not only a time of celebration; this is a time to remember close friend and team member Kenny Ruthart. This team is proud to have reached this landmark and strives to continue the journey of creating a Beyond Zero culture with an open mind focused on continuous improvement.

Thank you to all who have contributed to this success!

Starcon Service Award Program: Congratulations and Thank You for Your Years of Service

In our last newsletter, Starcon announced the revival of the Service Award Program. This program recognizes team members in pay groups SC0, HF0 and HM0 (formerly Category 1, 2 & 3) who reach years of service milestones of 5, 10, 15, 20 and 25 years. In addition, Starcon is committed to recognizing all team members who have met these criteria since the suspension of the program in 2009. Service award letters and catalogs will be delivered in December, and we would like to thank and recognize those team members who have loyally met a service milestone in 2010 or 2011.

2010 Service Award Recipients • 5 YEARS James Andrews Zac Anthony Joseph Auffant Rita Bleifield Jo Brooks Sabu Buck Pete Carter Hoppy Celestial Jeremy Cozart Susan Estep Richard Fields Ta’Mara Foster Michael Hager Angel Harrell Veronica Hernandez Horse Horsley Jerry Kennard John Krienen Daren Kuntz Dale Labby Dick Lortz Anthony Maggard PAGE 12

Chuck Medley Dan Moody Scott Myers Pez Pesavento Ryan Rice Donnie Rigsby Duane Roed Andrea Rutherford Dwight Sloan Eric Smith Jarrod Stevens Justin Taylor Randy Troxell Reggie Williams Timothy Wright • 10 YEARS Aron Ceglarek Roger Flint Kevin Forsythe Eddie Gongre Scott Hepworth Dale Kuntz Randy Phillips James Zimmerman

• 15 YEARS Joe Michalowski Randy Prohosky • 20 YEARS Pam Novotny 2011 Service Award Recipients • 5 YEARS Christopher Adkins Manuel Alas Jeff Barber Christopher Batis Matt Baum Jamie Beckett Randy Bell Marion Bennett Branden Bing Danielle Bortka Mitch Brown Geronimo Bruno Steve Buford Bradley Campbell Gregory Carpenter John Cary

Timothy Casillas Blanca Cavazos JR Collins Troy Copeland Joshua Corbin Lance Cox Michael Cox Johnny Diamond Bob Duffy Corey Essick Dee Feduccia Shorty Flanery Goebel Goebel Jose Hernandez Chuck Hester Julian Hutchison AJ Jackson Russell Jones Shawn Leggett Jeannie Lorenzen Scott Maddox Richard Mays Mike McBride Kelly McIntosh Al Montagano

Rick Morgan Robert Myers Todd Oxford Keith Oxley Tony Phillips Russel Phillips Mike Quintus Mike Rule George Russell Ramey Salyer Monie Seay Juan Sexton Al Shively Stoney Strickland Joe Tussey Joseph Van Druten Mike Veslievski Wamsley Wamsley Andy Wheeler Bub Wilson Tony Wilson David B Wolfson • 10 YEARS Mark Bortka

Chuck Bruce Brian Domenghini Tony Falcon Doug Hoffman Jay Holst Sal Lara Jim Little Mark Lydick Joyce Przybylski Bubba Shockley Brian Walker Craig Williams Jeffrey Wood • 15 YEARS Richard Bonick Gregg Kobe Lance McLin Michael Costain • 20 YEARS Brian Ohlendorf Rick Smajd

STARCON / JANUARY 2012

a CIANBRO company

A Great Partnership Building the Future

By Kraig Kistinger, Sean Kelley, Joanne Choate, and Russ Rodrigue It has been just over a year since Cianbro acquired Starcon. The past year has been filled with new experiences as the organizations came together to build a future based on success for its internal and external clients. That partnership and success has been displayed in many ways over the last year, but none as much as with the implementation of CMiC. As any great construction company knows, the keys to having a stable and sustainable operation include a strong foundation, quality people, and a robust, scalable infrastructure. With those qualities in mind, the senior management team made the decision to convert Starcon’s business systems, processes, and infrastructure to CMiC (Cianbro’s enterprise business and financial management system). This strategy is designed to ensure reliability and sustainability of data pertaining to team members, financial issues, and business intelligence.

Upgrading Starcon’s systems would further allow Starcon to position itself for strategic growth by utilizing consistent reporting of business information and streamlining the reporting processes.

To accomplish this project, planners developed a two-fold approach which called on one of Cianbro’s experienced regional business managers, Joanne Choate, to lead a joint Cianbro and Starcon business team. Cianbro CIO Russ Rodrigue would lead the Data Conversion and IT infrastructure team. The two Cianbro “legs of the stool” were joined by the Starcon team, who formed the third leg, bringing balance and institutional knowledge to the combined team.

Teamwork was the theme of the integration efforts, requiring effective communication, honesty, professionalism, and trust from start to finish.

The business teams were responsible for process mapping, gap analysis, application requirements, testing, training, and “boots on the ground” support PAGE 13

during the implementation of CMiC. The business teams worked diligently to evaluate and assess the Starcon applications and identify how the data in the Starcon systems would map to the formats used in the Cianbro CMiC system. In addition, the teams collaborated to get IT the business requirements needed to begin developing the new Starcon applications. All of the planning work came down to two primary parts of the program, testing and training. The business teams developed test scripts, assembled testing teams, and held to a very tight schedule to make sure the applications and converted data were correct. As a last step before the Go Live conversion, the business teams, working closely with the IT team, coordinated a “training blitz” that concluded with nearly 40 Starcon team members receiving training on CMiC and several new business applications for HR, Finance, and Accounting.

The IT team also had many moving parts that required significant coordination between the business team, vendors, and various IT resources. The IT team was charged with building test environments for the conversion, writing conversion scripts used to convert data fields between Great Plains/ACE and CMiC, planning and coordinating five mock data conversions, and creating team member IDs and passwords for hundreds of Starcon team members. In addition, IT developed several business applications that were modified or enhanced for Starcon (Time Entry, Billing, Document Imaging and HR Resource Management). Finally, IT performed several major infrastructure upgrades, including: a complete network upgrade

for all Starcon sites, a Cisco phone system upgrade, and deployment of a new audio/video conferencing system.

The final stage of this complex project was performed on November 1, 2011 as Starcon wrapped up their remaining business processes in preparation for Go Live, handed control to IT to convert the data, who then handed the controls back to the business teams on November 3, 2011 for the official Go Live on CMiC. The data conversion was a great success. When it was finished, three million data records had been converted.

General ledger, Accounts Receivable, Accounts Payable, and General Ledger accounts were converted and balanced to the penny. Payroll for more than 15-hundred team members was handled, with fewer than 30 discrepancies surfacing. Lastly, the system generated more than five million dollars worth of billings to clients.

Because of the complexity of the project, the joint team consisted of project leads from each entity for each functional area (Accounting, Cost, HR, etc).

This team worked and learned together about how to implement CMiC across the Starcon organization efficiently and effectively. As a result of great collaboration and teamwork displayed by the joint Cianbro and Starcon teams, CMiC was successfully implemented with minimal disruption to Starcon’s normal course of business. Congratulations to all who participated in this project!

STARCON / JANUARY 2012

a CIANBRO company

George Read: Starcon’s Millwright Plus On July 22, Starcon Team Member George Read took part in a Millwright Plus assessment at the LyondellBasell plant near Tuscola, Illinois. Warren Chandler conducted the assessment, a responsibility he has had at Starcon for more than ten years.

The assessment started with an oral review of George’s work background and skill levels. After that George took apart a back-pull out pump, noted any areas of concern, took needed measurements using micrometers, snap gauges, and dial indicators. He then disassembled the pump shaft, down to and including the bearings, which he pressed off using a hydraulic press. He then measured the clearance between the shaft journal and bearing I.D. After confirming that the clearances were correct, he then used an induction bearing heater and reassembled the bearing onto the shaft. After cooling the bearings, he continued the reassembly while making sure all clearances were correct.

After complete reassembly of the pump, George replaced the pump onto the base and did a rough straight-edge alignment of the pump and motor. He then did a dial indicator “rim and face” alignment, and as a final alignment procedure, did a laser alignment to bring the motor and pump shafts to within tolerance.

George then, using proper rigging procedures, placed the pump and motor set back on the truck for transport. Other rigging safety procedures and rigging knots where also covered. As an instructor with more than 35 years of millwright experience, Warren was well satisfied with George’s performance.

St. Paul’s Performance Reward Program A little over a year ago, the Northern Tier Energy Facility in St. Paul, Minnesota went through some management changes at the site. With that, the team focused on changing the environment and mind set to a more positive work place. With the sale of the plant and the uncertain conditions here in St. Paul over the past eight to ten months, it has been extremely difficult for the TMs to remain positive and focused on safety and quality while cutbacks due to client

restructuring and budget unknowns have run their course. The team members deserve a great deal of credit for remaining focused through these tough months.

Starcon’s team implemented a “Performance Reward” program in June of last year. For every 90 days we go without a safety incident (recordable, first aid, or equipment damage) or quality incident, the team members will receive a reward such as lunch or an alternative of similar value. Project Manager Stoney Strickland also included unexcused absences in the criteria. An unexcused absence may not disqualify the reward for the period, but will reduce the value of the reward. This is just another tool for personal accountability, helping to ensure that the team members are actually taking ownership and accountability for their actions. The program

also demonstrates how the actions of each team member affect the entire team and not just the individual.

The team has put up a board which is used to track daily progress. This board is in the shop where everyone sees it each day. It serves as a reminder to stay focused. The team also uses this board for other safety and quality related information, such as BBS reports and productivity reports.

Stoney thinks the effort that has had the largest impact is the attempt to provide positive rewards for positive behaviors, rather than simply trying to avoid a negative event in order to avoid a negative sanction from the company.

Rather than reacting after a bad event, the team hopes to act to make something good happen. Today, team members CARE and are recognized for a job well done.

STARCON / JANUARY 2012

a CIANBRO company

2012 ABC CRAFT CHAMPIONSHIPS San Antonio, Texas

MILLWRIGHT, PIPEFITTING , PIPE-WELDING & INSULATION CRAFT COMPETITORS WANTED

Starcon is looking for team members interested in competing in the Pipefitting and Insulation Craft Championships being held at the ABC National Convention in San Antonio, Texas.

The ABC National Convention & Craft Championships will be held this spring at the Henry B. Gonzales Convention Center in San Antonio. Starcon will pay for the team member to attend and will coordinate all of the registration and travel arrangements. Craft competitors performing at the highest levels will receive a medal, tools, and

cash awards.

To be eligible to compete in the National Craft Championships, a trainee must meet the following requirements: • Be currently enrolled in Craft Training • Must not have achieved Journeyman status more than six months prior to the date of the National Craft Championships.

• Possess no more than six years total experience in the craft being entered (not including secondary school programs).

• Has not competed in any previous ABC National Craft Championships

or Craft Olympics.

If you would like to nominate a team member at your site, please contact Tom Wanamaker immediately for more details: 815-478-6342 or via email: twanamaker@starcon.org

** Deadline to respond is Monday, January 30th **

Starcon’s New Team Member Portal

Starcon Joins Forces with Environmental Technical Institute

By Ryan Glynn Starcon and Environmental Technical Institute (ETI) in Illinois will be combining resources and building a team that will provide career opportunities to graduates in the fields of welding, pipe fabrication, and metal work. ETI has made a significant investment in their welding program to ensure that students are molded into their desired craft, not only through text books and written examinations, but also through ample hands-on time with all associated tools and equipment.

Starcon was requested to attend an annual meeting organized by ETI to observe the school’s education programs and make suggestions on how the Institute can modify programs to better prepare students for the industrial work force. ETI took Starcon’s recommendations with gratitude and will modify a few of their curricula. ETI is generating an excellent program that will produce quality candidates for Starcon to hire in the future.

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Have you heard about Starcon’s new Team Member Portal at www.starconinternational.net? The Team Member Portal is a great way to find Starcon news, read the new Team Member Handbook or get information and forms about your Starcon benefits plans.

Logging on to the portal is easy!

Simply use your new team member identification number (found on your weekly paystub) and the last four (4) digits of your social security number.

It’s that easy. Now you can find all you need to know in one great place 24/7/365. Once you’re there, take a look around and let us know what you think.

Comments about the Team Member Portal can be sent to hr@starcon.org.

STARCON / JANUARY 2012

a CIANBRO company

Starcon Editor - Kraig Kistinger • Cianbro Editor - Alan Grover • Contributing Writers - Shawn Doyle, Mike Duncan, Ryan Glynn, Michael Golla, Glenn Hardee, Jonathan Jones, Sean Kelley, Kraig Kistinger, Brian Miller, Keith Oxley, Ulices Quiroga, Russ Rodrigue, Lewie Strange, Stoney Strickland, Brian Walker, Tom Wanamaker • Design - Jean Cousins starconinternational.com Do you have questions or comments about the Newsletter? If so, we’d appreciate hearing from you!

Please email kkistinger@starcon.org or agrover@cianbro.com.

Starcon Excels at Cianbro Leadership Initiative In 2011, several members of the Starcon team participated in the Cianbro Leadership Initiative (CLI). The effort is a continuation of Starcon’s long-held belief that training leaders is essential to the company’s success, a philosophy that in past years was reflected in Starcon’s Leadership Development Program (LDP). Project Manager Keith Oxley assessed the experience by saying, “Attending the Cianbro leadership development program was a great experience. It was good to get to know some of the Cianbro team members, and be able to talk and share some of the various issues we all deal with on our job sites, and how we deal with them.”

One of the great aspects of the CLI, says Keith, is the collection of experts that are brought in to lead sessions. George Manning, Professor of Psychology and Business at Northern Kentucky University, is a key speaker during the program. “Manning was very knowledgeable and his book is great,” said Keith. “I keep it on my desk for reference.”

Oxley felt the greatest take away was hearing from the leaders of the organization: Vice President Alan PAGE 16

“Attending the Cianbro leadership development program was a great experience. It was good to get to know some of the Cianbro team members, and be able to talk and share some of the various issues we all deal with on our job sites, and how we deal with them.”

Burton, Chairman and CEO Pete Vigue, Cianbro Corporation President Andy Vigue, and Senior Vice President of Operations Earle Cianchette.

Each of the executives spoke about how they had to overcome challenges and handle different situations in their careers, and discussed how those experiences shaped the leadership abilities that they rely on today. “It was very motivational,” said Keith.

Oxley and his colleagues met a lot of key people from Cianbro, including Organizational Development Manager Kellie Guarino and Cianbro Fabrication and Coating Corporation General Manager Jack Klimp. In summary, Keith found the whole CLI experience impactful. “If there are other phases to the Cianbro Leadership Initiative, I definitely want to attend,” he said.

STARCON / JANUARY 2012