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WWW.EUCA.COM OCTOBER

2010

ISSUE 10/VOLUME 216

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

CALIFORNIA

Who Will Fix It?

The Ticking Time Bomb: Multiemployer Pension Plans for Contractors p.8

November 4, 2010: Get Your Boots to the Ballot Box p.10

Denim, Diamonds & Dice – Raising the Voice of EUCA in Sacramento p.16


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S O L U T I O N S

State Fund’s P R E V E N T I O N

Alternative Dispute

R R E E P P A A II R R

P R E V E N T I O N

State Compensation Insurance Fund is not a branch of the State of California.

Resolution Program

C A R E

C O V E R A G E

State Fund’s Alternative Dispute Resolution Program (ADR) provides exceptional workers’ compensation insurance with “no-hassle,” cost-control measures for union employers. This program allows eligible employers enhanced benefits, an immediate discount on premiums, while providing comprehensive coverage for employees. For details on the ADR system and other program features, call your insurance broker, or Cathie Hastings at State Fund Group Programs at (800) 533-6868.

www.scif.com


2010 EUCA BOARD OFFICERS

magazine

EUCA

contents

OCTOBER 2010 ISSUE 10, VOLUME 216

President ............................................. Christian Young Vice President/President-Elect ......................Rob Layne Secretary/Treasurer ................................... Steve Lydon Secretary/Treasurer-Elect......................... Mike McElroy Past President (2009) .......................... Andrew Vasconi

EUCA BOARD OF DIRECTORS Bruce Adams, Reed & Graham, Inc.; Nikki Affinito, Union Bank; Don Cabianca, Cal State Constructors, Inc.; Jerry Condon, Condon-Johnson & Associates, Inc.; Michael Ghilotti, Ghilotti Bros., Inc.; Greg Gruendl, Ray’s Electric; Rob Layne, O.C. Jones & Sons, Inc.; Steve Lydon, TerraCon Pipelines Inc.; Mike McElroy, FMG, Inc.; Gregg Oxley, Allen A. Waggoner Construction, Inc.; Robert Purdy, RGW Construction, Inc.; Andrew Vasconi, A.J. Vasconi General Engineering; Danny Wood, Jr., D. A. Wood Construction, Inc.; Christian Young, D.W. Young Construction Co., Inc.,

6 UP Front

Are You Smarter Than A 5th Grader? er? ? Andrew Vasconi, EUCA 2009 President, 2010 EUCA Auction Chairman

8 LABOR

A Storm is Brewing: New Challenges for Multiemployer Pension Plans George Kraw, Kraw & Kraw

EUCA COMMITTEE CHAIRS Associates: Bruce Adams (Associate Director), Reed & Graham, Inc.; Nikki Affinito (Associate Director-Elect), Union Bank | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Gary Andrews (Chairman), Amos & Andrews, Inc. | Labor/Collective Bargaining: Mike Fuller (Chairman), Mountain Cascade, Inc. Steve Geney (Co-Chair), North Bay Construction, Inc. Safety & Insurance: Gary Rudy (Chairman), Duran & Venables, Inc. | Scholarship: Mike McElroy (Chairman), FMG, Inc., Catrina Alfaro (Co-Chair), O.C. Jones & Sons, Inc.

10 INSIDE the Capitol

Democracy is a Contact Sport: Statements from Election Candidates Emily Cohen, Director of Government Relations

EUCA STAFF Mark Breslin, Chief Executive Officer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor & Member Services Representative: Jeannie Simpelo, Labor & Human Resources Representative; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Jami Moore, Member Services Coordinator; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Education & Website Manager;Joan O’Brien, Education Coordinator; Jenn Rogers, Event Manager; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Kevin Pedrotti, Legislative Advocate

WWW.EUCA.COM OCTOBER ISSUE VOLUME

THE NEXT GENERATION OF CONSTRUCTION LEADERSHIP

CALIFORNIA

Who Will Fix It?

Multiemployer Pension Plans: A Ticking Time Bomb for Contractors p.8

Make An Informed Choice On November 4 p.10

Keep EUCA’s Voice Loud and Our Agenda Out In Front p.16

2010 10/ 216

On the cover: Who will fix our California? Read statements from the November 4th Candidates for Governor and Senator, plus, read the included supplement to make an informed decision on the upcoming propositions.

FOR 16 AUCTION ADVOCACY “Denim, Diamonds, and Dice” EUCA’s 22nd Annual Dinner & Aucti Auction ion Special Preview

30

More Inside: 22 Next Up 24 We Are EUCA 26 WTF?! 28 Calendar/Ad Index

EUCA Digger Magazine (ISSN: 1086-5004) is published monthly, except December, by the Engineering & Utility Contractors Association, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Correspondence should be directed to the EUCA office at the above address, by phone at (925) 855-7900, by e-mail at eucaxinfo@euca.com or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offices. Postmaster: Send address changes to: EUCA Digger Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2010 Published in the U.S.A.

30 Last Call

www.euca.com

October 2010

5


Byy Andrew Vasconi, EU UCA 2009 President EUCA

front ach May I trek across country ountry mbers for with other EUCA members ade to an industry wide crusade Washington DC’s Capital Hill. Last year ent Chris in May, your current president, Young and yours truly, turned this annual business trip into a family adventure by including our two 5th grade children. Both kids having just finished their 5th grade civics course clearly proved to us that we are not smarter than 5th graders but for that matter nor is Washington DC. In fact after viewing through their eyes the history of our country and listening to their comments about our meetings with senators and congressmen it became crystal clear that this great nation of ours could use some counseling from these two 5th graders.

Test Your Brain Power! Subject: EUCA Social Studies — 1. EUCA Advocates for...? X All of our members  Our big members  Our small members  2. Who is invited to EUCA’s Washington DC Legislative Fly-In?  The Government Relations Committee  Our most-active members X All EUCA members are invited and encouraged to get involved and  lobby for our agenda in DC 3. What is the most important way for you to strengthen our industry’s voice in DC and Sacramento?  Get involved  Get informed  Contribute to the PAC X All of the above 

Before we started our day on the hill we explained to the kids that the message we were campaigning for was for the most part about more funding and less regulation for construction. It made total sense to them, better roads and cleaner water, more jobs and an economic boost, they were completely on board and ready to go. Right away we were greeted by familiar faces who knew us from past visits. Not just the senators and congressmen but also by their staff; they tend to have longer tenure than the legislators they serve. What’s more, the crusade this past year put our industry on the front line as for obvious reasons Legislators are very excited about putting our people back to work with their storybook stimulus packages. Our 5th grade kids grew wide eyed in seeing what they had just studied in a book come to life. Our message was being received and there was truly a due process in being seen and heard at the government level. And – yes we (EUCA) were making it happen. 6 WWW.EUCA.COM

At the end of the day the EUCA team was collaborating on the day’s results comparing them to previous years and strategizing for the weeks and years to come. It was at this point that our children’s enthusiasm turned; they couldn’t believe that it was our umpteenth trip to Washington DC for the same cause. From their perspective it was a huge let down. In their un-jaded minds they had just put on a tie, or a fancy dress, and marched from one “old guys” office to another in really uncomfortable dress shoes only to be patronized. As we talked more with them about it, their let down turned to anger and frustration. They wanted to know why we needed to be so persistent with such an obvious message. TM on logo above, and © 2010 Twentieth Century Fox Film Corporation. All rights reserved. © 2010 JMBP, Inc. Are You Smarter Than A 5th Grader? and all related logos and slogans ™ JMBP, Inc. All Rights Reserved. For show information, visit www.5thgradertvshow.com.


They questioned how our nation could have come so far in 200+ years, but carelessly forgotten so much. They wondered if the very legislators we met with had read any of the great quotes from the forefathers of our past etched in the marble monuments that surrounded them.

Greg Grassi Senior Vice President Commercial Lending Group

Kids don’t turn their heads and pretend not to see; they are brutally honest and tell it like it is. These kids wanted to know how it got this way and what could be done to fix it.

1999 Harrison Street, Suite 810, Oakland, CA 94612 510.419.3920 PHONE • 510.452.5114 FAX greg_grassi@mechbank.com • www.mechanicsbank.com

The answers to these questions are debated daily by “tea party” movements and others that albeit may seem worthwhile. What we brought to mind that day was that our solution was to build muscle through the solidarity and influence found within EUCA. There is no doubt that the political process is far from moving at 4G and measuring success is often fragmented at best but the bottom line is that public works is the only game in town. At no time in the history of this association have we been in a better position to shape the future than right now. We are signatory Union Contractors equipped with the manpower and tools necessary to rebuild our nation. We hold a key piece to the puzzle that will lead our country through recovery back to health, and it’s so obvious that even a 5th grader gets it.

Wall Sawing

Slab Sawing

For 40 years EUCA has been representing its members at every level of government and in the spirit of its own forefathers continues to provide a vehicle for involving its members in the democratic process. Through the Government Relations Committee at EUCA I can personally attest to this as I have worked side by side with other contractors just like you, standing up for our industry and for our business’. The Government Relations Auction is November 13th, and is our association’s most important fund raising event. The success of this event is the foundation of the Government Relations Committee and we need you to participate. As you read through the pages of this month’s magazine please take notice of the opportunities available to you and by all means, take some time to attend the event and/or make a contribution.

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Are you smarter than a 5th grader? Thank you for your support, Andrew Vasconi 2009 EUCA President

6345 3rd Street, San Francisco, CA 94124-3501

Phone: 415/508-1800 • Fax: 415/508-1811 San Francisco HRC Certified: #HRC040914855

ALL WORK DONE TO YOUR SATISFACTION AND ON TIME October 2010

7


By George Kraw, Kraw & Kraw

A STORM IS BREWING: New Challenges for Multiemployer Pension Plans

T

he unionized construction industry faces increasing difficulties from the legacy costs of its pension plans. Much like previous pension ills in the steel, auto and airline industries, these costs can both threaten the viability of the plans and the finances of the companies that participate in them. Employers may find themselves under a legal obligation to fund plan shortfalls.

Why are Employers Liable for These Costs? Legacy costs result from the promise of benefits that are not fully funded at the time they are made. These costs must be paid for—either by higher investment earnings or increased contributions from employers and active participants. Under current law, plans generally cannot cut vested benefits except in very limited circumstances or when a plan becomes insolvent. Although the exact level of underfunding is a point of controversy—plan critics put it as high as $165 billion—it’s no secret that many construction industry funds are below the 80% funding level that the government makes the mark of a healthy “green zone” plan.

Experts in all phases of transit construction

CM/GC Conventional and Design Build / General Contracting Services Light Rail, Streetcar and Commuter Rail Construction

8 WWW.EUCA.COM

Stacy and Witbeck, Inc. www.stacywitbeck.com &RUSRUDWH2I¿FH 1320 Harbor Bay Parkway, Suite 240 Alameda, CA 94502-6580 T 510.748.1870


10 million American workers are covered ed by multiemployer pension plans, about ut half of whose participants work in construction. Over the past several decades only a handful of plans havee gotten into sufficiently serious financial ciall trouble that they could not pay promised mised d pensions. And those plans were able le to draw from a government sponsored, red d, d, but industry paid for, insurance program—the Pension Benefit Guaranty uaranty ty Corporation or PBGC—to help fill shortfalls. shortfall lls. s. But PBGC multiemployer plan assets are only enough to pay for a fraction of the current total of unfunded f nded vested benefits. The construction industry funds’ current difficulties are the result of several factors: poor investment returns, poor economic environment, declining market share and aging workforces. Pension plans generally invest in a wide variety of assets and investment performance is the key to paying for a large portion of pension benefits. Multiemployer plans generally assume that they will make 6 to 8% over the long term, a rate of return that plans have had difficulty achieving during the past decade of flat stock market performance. During economic downturns, the number of active employees available to make up any funding shortfall diminishes; decreased contributions and investment losses result in funds running deficits to pay current pensions. That in turn reduces the capital base on which to earn investment income—a state of affairs that can feed on its own momentum to become a downward spiral.

How Else Could This Impact Employers? These days the Financial Accounting Standards Board (FASB) contends that employers participating in multiemployer plans do not sufficiently disclose the extent of their plan liabilities or the depth of plan problems. FASB, the group that sets the standards for audited financial statements nationwide, is responding to Wall Street complaints that multiemployer plans should provide more information about their financial situation and that employers who participate in them should list plan liabilities on the financial statements. Joining this chorus of criticism are the editorial pages of the Wall Street Journal and Investors Business Daily, as well as non-union contractors who see these plans as the agents of the unions that sponsor them. These critics claim that the plans are well down the road to becoming wards of the federal government. FASB is also considering a proposal to make employers obtain and disclose more information about plan operations

A Ticking T Time-Bomb for the C o Construction Industry ...the new information that FASB wants included may be speculative at best, spectacularly misleading at worst. • Why are Employers Liable for these Costs? • How Else Could This Impact Employers? • What is Being Done to Fix the Plans? future funding requirements. These changes won’t aand nd futur either the plan or the workers who participate in them. help eith won’t help investors and creditors of participating And it w employers either. That’s because the new information that FASB wants included may be speculative at best, spectacularly misleading at worst, and long past its “use by” date in all circumstances. But it will emphasize, in a more general way, the current financial difficulties that these plans face, while potentially making it more difficult for participating employers to qualify for bank financing and construction bonds.

What is Being Done to Fix the Plans? When plans become sufficiently underfunded, they can compel additional employer contributions through a variety of means, some of which avoid the collective bargaining process. Employers in those circumstances are then faced with the choice of eventually withdrawing from the plan and paying withdrawal liability (their share of unfunded benefits), or paying the additional contributions. Construction industry employers that leave jurisdiction of the pension fund—or simply shut down—avoid withdrawal liability. A significant increase in interest rates would solve many of the plans’ funding problems, because an increase in rates reduces the net present value of plan obligations. But the best hope for many pension plans is for government intervention that would shore up plans financially and give plans more flexibility in reducing obligations short of insolvency. Such solutions are highly controversial and unlikely to occur absent the high-profile collapse of a major multiemployer fund. Unfortunately for workers and employers, government is better at responding to crises than avoiding them. ◆ George M. Kraw is an attorney with Kraw & Kraw, with offices in Mountain View and Newport Beach, California. He is a member of the California and District of Columbia Bar, is a former member of the Pension Benefit Guaranty Corporation’s Advisory Committee and specializes in the representation of multiemployer benefit plans. October 2010

9


W

The Capitol

INSIDE

DEMOCRACY IS A CONTACT SPORT

elcome to one of the most important election years of your state’s history. Without a doubt, we as Californians stand at a crossroads. Our industry, our school systems, our environment, pensions, prevailing wage, the strength of small business, and the basic political process as we know it — all stand at a crossroads. And on November 4 you will have to make a choice; many of them, in fact. Candidates will always tell you that jobs are good. But which candidate truly believes and understands that transportation and infrastructure builds our economy? Candidates will all tell you that balancing environmental concerns with those of businesses is essential. But who has a plan to prove it? Candidates will all tell you they can balance our states budget. But which one has the understanding and ability to accomplish such an incredibly difficult feat?

While EUCA did not endorse candidates, this year we reached out to your gubernatorial and US Senate candidates, giving them the opportunity to tell their story to you, letting you know exactly where they stand. To the gubernatorial candidates, Meg Whitman (R) and Attorney General Jerry Brown (D) , we asked a seemingly simple question: Why should California’s contractors elect you for Governor? Enclosed you will find a response from Meg Whitman. We did not hear back from the Brown campaign. To the candidates for US Senate, California’s current Senator, Barbara Boxer (D) and her opponent, Carly Fiorina (R) we asked the following questions: 1. Do you believe ARRA was successful in getting California contractors back to work? 2. What needs to be done going forward to help get contractors and construction workers back to work building California? Following are their responses.

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

Attorneys Representing Businesses In All Labor and Employment Law Matters

Paul V. Simpson and Laura E. Innes ◆ • Employment Law Counseling • Employment Litigation • Prevailing Wage Compliance • Labor Commissioner Matters • Wage-Hour Class Action Defense • Trust Funds Litigation • Arbitrations, EEOC, and NLRB • Employment Contracts • Union Disputes • Employee Handbooks • Trade Secrets/Unfair Competition

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10 WWW.EUCA.COM

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MEG WHITMAN ( R ) C A N D I D AT E F O R G O V E R N O R California is at a crossroads and we need a new kind of leadership that will get us on the right path. I am running for Governor because, like many Californians, I refuse to standby and let California fail. I have lived much of the past 28 years in California. My husband trained to be a doctor here, my sons were born here and I grew a business here. I am not a career politician. The way I tackle big challenges is to have a plan. And I have a detailed plan to get California moving again. It’s focused on creating and keeping jobs in California, cutting wasteful government spending and fixing our public schools. I firmly believe if we can make progress in these three areas, we will have come a long way in solving our biggest problems. You can read my plan on my campaign website, www.MegWhitman.com. California cannot begin to solve its problems until our people are working again. My number one goal as Governor will be to help the private sector create two million jobs for Californians by 2015. We must make California work for Californians and it starts with putting people back to work. In my 30 years in business, I led large organizations, managed complex budgets and was held accountable for meeting the bottom line. As CEO of eBay, I grew a startup with 30 employees into a global enterprise with 15,000 employees and nearly $8 billion in revenue. And I helped tens of thousands of passionate people start small businesses online. I also saw how government could get in the way of inspired individuals who wanted to start and grow businesses. I will create an environment that encourages hiring by lowering taxes and easing regulations so California is once again a magnet for entrepreneurs and innovators. The only way to restore our economy is to make California the global center of innovation. The status quo simply won’t do. We have to make our state competitive again with other states such as Arizona, Texas and Utah, which are competing for California’s jobs. Right now, a new business in California has to navigate a maze of government bureaucracies before it can open for business. I will use technology to streamline this unwieldy regulatory process. It’s also time for California to stop spending more than it takes in. Another lesson from business is that when revenues drop, you must cut costs. Unfortunately, that’s not how Sacramento has been operating. I will bring a new focus on results to our state Capitol, and give Californians the kind of government they can afford.

I will use my management skills to bring a new style of leadership to Sacramento. I will set priorities, establish goals and then do the follow-up to make sure we are measuring up. My goal is to be able to look every taxpayer in the eye and say, “we are spending your money like you’d want it spent.” California’s long-term economic potential and competitiveness is directly connected to the quality of our public schools. As Governor, I will direct more of what we currently spend on K-12 to the classroom, bring more transparency to teacher evaluations and school performance and make sure parents and local educators have a bigger say. I will reward outstanding teachers – the gems of our education system. We also must invest once again in our world-class public university system, which will help reach my job-creation goals. If California is to continue to be the capital of innovation, our universities will lead the way. As a start, my plan calls for investing $1 billion in savings from welfare reforms into our public university system. California needs a leader who has created thousands of private-sector jobs, a leader who has been held accountable for meeting the bottom line and a leader with a fresh perspective who will deliver results. I will be that leader and, with your support, we will get the job done. ◆ California Candidate for Governor, Meg Whitman, www.megwhitman.com A strong student and a versatile athlete, Meg attended Princeton University, where she received a degree in economics. She then went on to Harvard Business School, where she received her MBA in 1979. Meg’s career led her to key executive positions at some of America’s best-known companies, including Disney, Stride Rite, FTD and Hasbro. Each career stop helped prepare her for the unprecedented opportunity that Meg encountered in the fall of 1997, when she met the founder of a tiny start-up called eBay. At eBay, Meg made history. When she joined eBay, the company had just $4.7 million in revenues and 30 employees; when she retired in March of 2008, ten years later, the company had nearly $8 billion in revenues and 15,000 employees worldwide – with millions of users in California alone. As the leader of a global company that created a huge number of jobs, Meg developed strong ideas about the ingredients for 21st century success at every scale. She saw a critical need for more focused problem solving in government by those with the tools to lead and the willingness and independence to challenge the status quo. Her decade at the helm of eBay came to a close just as California’s growing economic crisis was unfolding. Job losses, undisciplined spending and the declining performance of California’s schools were deeply troubling to Meg and she thought carefully about how she could lend her experiences to help. In February 2009, she announced her candidacy to become California’s next governor. “...we’ve got to create jobs, cut spending, and invest in fixing our educational system,” Meg says. Meg has committed her energy, her trademark optimism and her belief in fiscal restraint to the challenge of rebuilding California. October 2010

11


The Capitol

INSIDE

U.S. SENATOR BARBARA BOXER ( D ) C A N D I D AT E F O R S E N AT O R

C

alifornia contractors have told me that ARRA funding has been critical to the survival of their businesses and that ARRA-funded construction has helped keep their employees on the job. But we all know we need to accelerate more funding by leveraging local and state funds and committing more investment toward our infrastructure. The American Recovery and Reinvestment Act (ARRA) provided $48 billion for transportation improvements nationwide, and California has already received $5.91 billion. This includes funding for highways, local streets and roads, freight and passenger rail, and port infrastructure projects as well as transit projects and high speed rail. In addition, California received a total of $130 million in new funding for four highway, street, rail and port projects through the Recovery Act’s Transportation Investment Generating Economic Recovery (TIGER) Grant program. We know transportation infrastructure investment is a proven jobs creator. According to the Department of Transportation (DOT) every $1 billion in federal money for transportation that is matched by state and local funds supports approximately 34,700 jobs. In addition to ARRA, another law that is helping to provide work for contractors is the Hiring Incentives to Restore Employment (HIRE) Act, which extended transportation programs and replenished the Highway Trust Fund. The bill is providing California with more than $4.6 billion for highway and transit programs which will create or save 100,000 jobs in California. I also worked to secure funding for wastewater treatment and drinking water infrastructure in ARRA to put construction workers back to work while helping to clean up California’s water. California received $283 million in ARRA funding for clean water infrastructure upgrades and $159 million for drinking water system improvements. This funding will help upgrade wastewater treatment plants, install improved drinking water systems, and repair crumbling water infrastructure while creating jobs in California. 12 WWW.EUCA.COM

I support new investment in California’s infrastructure. As Chairman of the Environment and Public Works Committee, I am working with my colleagues on both sides of the aisle to move forward with a transportation authorization bill that will create jobs and build the infrastructure America needs for economic recovery and long-term prosperity. For example, I want to reform our transportation laws to help Los Angeles implement Mayor Villaraigosa’s 3010 proposal, which would help speed up transit projects that are already guaranteed local funding through a voter-approved ballot measure. We can also help other communities across California and the nation that make similar commitments to investments in transportation infrastructure. I am also working with both Republican and Democratic members of the Senate Environment and Public Works Committee to develop a Water Resources Development Act (WRDA). This legislation will authorize flood protection, harbor maintenance, storm damage reduction, and environmental restoration projects nation-wide. These important projects not only protect public safety, promote economic development, and restore the environment, but also create jobs in the construction sector. We are making great progress on this critical bill. ◆ U.S. Senator Barbara Boxer, www.boxer.senate.gov A forceful advocate for families, children, consumers, the environment, and her State of California, Barbara Boxer became a United States Senator in January 1993 after 10 years of service in the House of Representatives and six years on the Marin County Board of Supervisors. A national leader on environmental protection, Senator Boxer is the first woman to Chair the U.S. Senate’s Committee on Environment and Public Works (EPW). She is a powerful advocate for clean air and water, and focuses much of her Committee work on climate change, transportation and infrastructure. In addition to her Chairmanship of the EPW Committee, Senator Boxer also serves on the Senate Committee on Commerce, Science and Transportation, and the Senate Foreign Relations Committee where she chairs the Subcommittee on International Operations and Organizations, Human Rights, Democracy, and Global Women’s Issues. Senator Boxer also chairs the Senate Select Committee on Ethics. Senator Boxer is also a member of the Democratic leadership in the Senate, serving as the Chief Deputy Whip since 2005.


CARLY FIORINA ( R ) C A N D I D AT E F O R S E N AT O R

W

h the federal economic stimulus package hen w was signed in February 2009, President Obama, B Barbara Boxer and their colleagues in Washington promised Californians its passage would save or create 400,000 jobs right here in the Golden State and help keep unemployment below 8 percent nationwide. Fast-forward 19 months to August 2010, and unemployment nationally stands at a disappointing 9.6 percent, and 14.9 million Americans remain out of work. Here in California, the unemployment rate has increased more than two percentage points since February 2009, from 10.2 percent to 12.3 percent; in fact, our state has lost more than 400,000 jobs since the stimulus passed. While many politicians – my opponent included – have used construction sites as backdrops for press conferences touting the “success” of this stimulus package, those claims are simply not supported by the facts. Similar to what we have seen across most sectors of our economy, the economic stimulus plan did little to jumpstart our nation’s construction industry and put California contractors back to work. The Wall Street Journal reported on California’s construction woes in July, pointing out that the industry had shed 74,400 jobs in just 12 months, and construction employment in the state dropped 12 percent over the same time period. This drop was far more precipitous than the loss of employment in other sectors of California’s economy and demonstrated that the construction industry in the state was hit far worse than other states around the country. Employment in the construction industry nationally fell 7.4 percent, while employment in California overall dropped 1.3 percent. According to the U.S. Census Bureau, total construction spending declined to $805 billion in July of this year, which trade organizations say is a ten-year low. Private-sector construction spending is particularly weak, counteracting any gains that taxpayer-funded infrastructure projects – including those funded through the economic stimulus plan – might have created.

These statistics confirm what an Associated Press study released in January had already shown: that an influx of federal transportation infrastructure money from the economic stimulus plan did little to affect local unemployment rates. Even when looking only at construction industry jobs, the effect of stimulus money on hiring was negligible. It’s clear that spending taxpayer dollars to fund government programs is an ineffective way to create jobs now and get our economy, including the construction sector, moving again. And so long as consumers and businesses are concerned about their future economic stability, the next new regulation and looming tax increases, the demand for construction jobs will remain weak because few will be willing to engage in the economic risk of beginning a new project. Instead of calling for more taxpayer-funded “stimulus” programs, as my opponent continually advocates, I believe that the key to our economy’s recovery – including for the construction sector – is to support the private sector. Only when private-sector entities are confident in their economic outlook will they hire more workers and undertake new projects that stimulate true economic growth. Government can support the entrepreneurial energies of our nation’s job creators by lowering taxes and thinning the thicket of regulations that make it more difficult to do business here in California. As it is, California is the second most expensive state in which to do business, and the high levels of regulation and litigation we inflict on businesses make it the second worst state for business friendliness. With such prohibitive taxes and regulations here in California, it’s no wonder companies are hesitant to site and fund new construction or other projects that demand skilled contractor labor. Yet career politicians like Barbara Boxer are seeking to hike taxes even further and layer on even more burdensome regulations on California companies. If we’re serious about stimulating long-term growth, our policies must provide more predictability for our state’s Continued on next page October 2010

13


The Capitol

INSIDE

( C A R L E Y F I O R I N A ( R ) C A N D I D AT E F O R S E N AT O R )

enterprises and give them the opportunity to reinvest their profits in hiring more workers and funding further growth.

improve patient care – but it is also harmful to our nation’s businesses. In particular, requiring businesses to submit tax forms for every single transaction totaling $600 or more in a year means companies will be required to report even routine expenses like phone, Internet and office products to the IRS. Some 40 million businesses and other entities will be affected by this provision, which will inevitably require more staff time and more costs for businesses all across the nation. In fact, it may even have a negative ripple effect by providing incentives for companies to consolidate suppliers, which would harm smaller suppliers.

For example, I’ve consistently said that the health care law recently enacted fails to reduce health care costs and

Instead, we must fight for every job – and that means both creating new, homegrown jobs here in the United States, as well as bringing companies and jobs back to the United States from overseas. That’s why I’ve proposed creating “Jobs for Americans Zones” in selected geographic areas where targeted, substantial federal tax benefits, in partnership with state and local regulatory relief, will help lure jobs back to America. These benefits will include a 10-year tax holiday for facilities repatriated from overseas, a five-year tax holiday for Worried start-ups and expansions, assistance with Are you that the state and local permitting and land use issues struggling light at and holidays from uncompetitive state and to maintain the end of local regulations like uncompetitive work speed and the tunnel keep your rules. just might business on be another track? Moreover, as the U.S. Senate considers train? reauthorization of the federal highway bill, it’s clear that Barbara Boxer has not been fighting hard enough for California taxpayers. Under Barbara Boxer’s tenure in Washington, California has gotten less and less money back on the tax dollars we sent to Washington – including for transportation. California’s return on the Highway Trust Fund pales in comparison to what other states receive, and without action by our representatives in Washington, we will continue to suffer. It is Turn to the Construction and Real Estate unfair for hard-working Californians to send to Washington 18.4 cents in federal taxes for Team at EPIC for leading EDGE insurance and risk every gallon of gasoline – just so our federal management solutionsƚŚĂƚŵĂŬĞĂƌĞĂůĚŝīĞƌĞŶĐĞ͘ representatives can turn around and spend it on bridges in Alaska or West Virginia. California has plenty of infrastructure needs right here in the Golden State, and our tax www.edgewoodins.com dollars should be put to work to meet those needs in a more equitable way. ƚůĂŶƚĂͮĂůƟŵŽƌĞͮ/ƌǀŝŶĞͮ>ŽƐŶŐĞůĞƐ

Is the

economy

turning all you’ve built into a

train wreck?

Orange | Sacramento | San Francisco | San Mateo | San Ramon © 2010 Edgewood Partners Insurance Center

14 WWW.EUCA.COM

CA License 0B29370

Over the course of my career, I’ve worked in many industries, from commercial real


estate to telecommunications, and in many positions, from receptionist to chief executive officer in companies small and large. I’ve learned from the real world what it takes to create a job, make a payroll and manage billion-dollar budgets. And what I’ve learned most of all is that the commitment and drive of the American worker is what propels our nation’s economy – and it’s what we must rely on to lead us to recovery. Candidate for Senator, Carly Fiorina, www.carlyforca.com While she is perhaps best known as the former Chairman and Chief Executive Officer of Hewlett-Packard Company (HP), what is not as well known is Carly worked her way through undergraduate and graduate school. A selfmade woman, she started her business career as a secretary and went on to to lead a Fortune 20 company. Carly served as the Chairman and Chief Executive Officer of Hewlett-Packard Company (HP) from 1999 to 2005, leading the reinvention of the legendary company, successfully steering it through the dot-com bust and the worst technology recession in 25 years. During her tenure, HP’s revenues doubled, from $44 billion to $88 billion, with improved profitability in every product category. Today, HP is the largest technology company in the world. Today, Carly is one of the most recognized business leaders in the world and an opinion leader who chairs the Board of the Technology Policy Institute, served on the Board of Business Executives for National Security, is a Global Envoy for Lance Armstrong’s LIVESTRONG organization and serves as vice chair of the Initiative for Global Development. She was also a member of the Defense Business Board, and recently served on the Advisory Group for Transformational Diplomacy for the Department of State.

October 2010

15


Engineering & Utility Contractors Association Presents

Join us for the 22nd Annual Government Relations Dinner and Auction at The Bridges Golf Club, San Ramon. NEW THIS YEAR: Try your luck at Blackjack, Craps and Roulette as we kick off the night with casino gaming.

WHY YOU SHOULD PARTICIPATE IN THIS EVENT: The funds raised at this event go towards our government advocacy and are returned to you through a better business environment, increased funding for public works, legislation that protects or improves your business, and passage of some of California’s greatest infrastructure projects and initiatives. In this tough economic climate it is more important than ever that EUCA has a loud voice, a clear agenda, and a strong presence in the legislative arena. We can’t do this without your generous support!

HOW CAN YOU PARTICIPATE? Donate an item to the live auction, sponsor the event, and/or attend the event. Contact Jenn Rogers at 925/362-7309, or jrogers@euca.com with questions.

AUCTION COMMITTEE The purpose of the Auction Committee is to reach the goals set by the GR Committee in order to make this event a success. Each member volunteers their time to reach out to EUCA members and corporations for sponsorships, auction item donations and event registration. We would not be able to achieve our goals without the support, time, and devotion from our Auction Committee. EUCA thanks you all for your efforts! Andrew J. Vasconi, A. J. Vasconi General Engineering – Auction Chairman Bruce Daseking, McGuire and Hester – Auction Co-Chair Bret Lawrence, Woodruff-Sawyer & Co. Bruce Adams, Reed & Graham, Inc. Christi Plum, P C & N Construction, Inc. Debbie Ferrari, MAG Trucking Kevin Dern, Ghilotti Bros., Inc. Randy Cram, Tri-West Tractor, Inc. Tony de Bellis, Rain for Rent 16 WWW.EUCA.COM

golden state warriors courtside club tickets Cheer on the Golden State Warriors as they take on the Phoenix Suns at the Oracle Arena on Thursday, December 2 at 7:30pm. You’ll see all the action in these two great seats – Section 24, Row A3, Seats 1 and 2 – near the home team’s bench and almost underneath the basket. Includes parking pass. Jerry Condon Condon-Johnson & Associates, Inc.


custom estate plan Receive a customized estate plan to fit your family situation. The documents may include any or all of the following: will(s), a living recovable trust, durable power of attorney(s) for property management and durable power of attorney(s) for helathcare. The process will begin with the first consultation to decide on an estate plan to fit your family’s needs. Stuart G. Schmidt Sweeney, Mason, Wilson & Bosomworth

wine tasting or ski get-away Spend three romantic nights in, “Carmel of the Gold Country,” Murphys, CA. Accommodations are in a rustic mountainside home, lushly landscaped with a half acre of park like grounds, gas fireplace, decks, all fully and privately gated (great for little kids to roam and explore safely). Reach twenty wineries and tasting rooms within fifteen minutes. Boutique shopping and fine dining on Main St. in Murphys; Bear Valley ski resorts, New Mellones, and numerous lakes are near as well. Use November 1, 2010 – February 29, 2011 only. Bottle of Duckhorn Cab included. Mark Breslin EUCA CEO

4-oakland raiders luxury box suite tickets Are you a die hard Raider fan? Here is your chance to spend a Sunday afternoon cheering on your Oakland Raiders for a 2010-2011 game in the Bothman Luxury Box Suite! Included in this package are four luxury box tickets, a parking pass and Raiders Gear. Don’t let this one get away – it is sure to be a great Sunday! Game to be arranged with donor. Brian Bothman Robert A. Bothman, Inc.

golf foursome at sequoyah country club and sports basket A private, member-owned 160-acre retreat, Sequoyah offers a challenging, 18-hole golf course and family-oriented amenities in one of the East Bay’s best microclimates. This item includes a golf foursome at Sequoyah Country Club in Oakland with Lunch and a Bay Area Team Sports Basket. Michael Carter All American Rentals

4-night stay in northstar village luxury condo This Northstar™ Village luxury condo has breath taking views of the mountains located just steps from the Northstar gondola and spectacular Mountain Biking. While staying you’ll have access to the pool, private storage lockers, climate controlled underground parking and have access to the fitness area and outdoor hot tubs conveniently located steps away in the Northstar™ Village. This beautiful Northstar™ Village condo offers ideal views of the mountains, roller skating rink and Village life. Sleeps 6. Available: April 25, 2011 – October 15, 2011. Excludes 4th of July & Labor Day weekends. Mike Preston Preston Pipelines, Inc.

go sharks! 4 tickets in penhouse suite Hey San Jose Sharks Fans! Experience the excitement of one of the NHL’s best regular-season teams in a Penthouse Suite. Includes four tickets and parking pass. Game to be arranged with donor. Brian Bothman Robert A. Bothman, Inc. October 2010

17


18 WWW.EUCA.COM


two cases brutocao cellars wine freshwater pearl necklace This single strand freshwater pearl necklace is certain to be a favorite for any occasion. It is set with one oblong shaped freshwater pearl measuring 9-10mm and surrounded by forty five round freshwater pearls measuing 3-4mm, 17’’ long. Ricky Serrano R.E. Serrano, Inc.

Brutocao wines are unrefined and unfiltered wines that retain all their flavor components and complexity. Every wine is Estate Bottled to ensure maximum quality and consistency. Here is your chance to enjoy two cases of reds featuring the 2006 Merlot, 2007 Cabernet Sauvignon, 2007 Zinfandel and 2007 Pinot Nior. A taste unlike any other. Paul Von Berg Brutoco Engineering & Construction, Inc.

week in tahoe— lakefront property A Week in Tahoe - Go for the Fun, Stay for the Memories! Located on the North Shore, this 4 bedroom & 3 bath home sleeps 8-10 guests. Includes pier access, buoy and amazing views of the lake. You will also enjoy a dinner out at Gar Woods Grill ($300 value) which embraces the nostalgic ambiance of Tahoe’s classic wood boating era. Michael Ghilotti Ghilotti Bros., Inc.

case of 2008 seghesio zinfandel The Seghesio family roots are firmly planted in Zinfandel as they first planted Zinfandel on the Alexander Valley Home Ranch Eduardo & Angela in 1895. Today, the decendants of these two immigrants share the 105 year old family passion as they farm over 400 acres of estate Zinfandel in the worlds best growing regions for the grape—Alexander and Dry Creek Valleys. This wine combines sites that have produced Zinfandel for over a century with newer sites that utilize proprietary clones and the most advanced viticulture practices. Listed on Wine Spectator’s Top 100 Wines of the World. Andy Vasconi A.J. Vasconi General Engineering

Teamwork • Solutions • Excellence General Engineering Contractor Services Since 1914

Total Site Preparation Grading and Excavating Paving Storm Drain Water and Sewer Lines

start your engines at nascar or indy!

Equipment Rental

You’ll be the special guests of Ghilotti Construction Company in their private skybox suite at Infineon Raceway, complete with catered food and beverage. Auction winner’s choice of 4 suite tickets (includes 1 preferred parking pass) to the Finals of either the 2011 Toyota/Save Mart 350 NASCAR Sprint Cup Series (June 26, 2011) or the 2011 Indy Grand Prix of Sonoma (TBD). Choice must be made by January 31, 2011. Richard Ghilotti Ghilotti Construction Co.

Site and Structure Concrete

Soil Stabilization Underground Infineon Raceway, Sonoma

n

The Buck Center, Novato

Candlestick Cove, San Francisco

CORPORATE OFFICE 246 Ghilotti Ave. Santa Rosa (707) 585.1221 MARIN OFFICE 2301 Kerner Blvd., San Rafael (415) 256.1525

hang gliding for two Are you an extreme sports lover? Take a tandem hang gliding flight over the beautiful San Francisco Bay Area. You and a guest will launch from Mt. Tamalpais in Marin County and soar to the end of Stinson Beach with an instructor in a tandem hanglider. Trip includes video or photos of your experience. Grab your partner and soar like an Eagle! Rob Layne O.C. Jones & Sons, Inc.

n

A name you can build with www.ghilotti.com

AMERICAN CANYON OFFICE 600 South Napa Junction Rd. American Canyon (707) 556.9145 LIVERMORE OFFICE 3090 Independence Drive, Ste. 118 Livermore (925) 583.0979 CSLB #644515

October 2010

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Condon-Johnson & Associates, Inc. FMG, Inc. JMB Construction, Inc. KriStar Enterprises, Inc. LiuGong Construction Machinery N.A., LLC Power Curbers, Inc. R.E. Serrano, Inc. Shimmick Construction Co., Inc. Union Bank

CQMS Razer USA HNL Design & Manufacturing Magnum Attachments Inc. SUI Manufacturing, Inc. Woodruff-Sawyer & Co.

Allied Construction Services Kobelco Kawasaki Construction Machinery Corp. of America Lineation Marking Corporation Pacific States Petroleum Rain for Rent Ray’s Electric

First In Service Since 1979

SHORING EQUIPMENT TRAFFIC CONTROL CONFINED SPACE FALL PROTECTION

STEEL TRENCH BOX

SLIDE RAIL

First In Service – Since 1979 Los Angeles, CA N. LA/Ventura, CA Orange County, CA San Brndno/Rvrsd, CA

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Escondido, CA 877/246-4085 800/821-4478 San Diego, CA 866/829-6906 877/246-4087 North S.F. Bay Area, CA 800/321-5550 800/772-8004 South S.F. Bay Area, CA 877/246-4086 877/246-4085 website: www.tprco.com email: sales@tprco.com

Sacramento, CA Reno, NV Las Vegas, NV Houston, TX

800/548-0688 877/809-6492 877/809-6493 866/247-9449


One Week stay in waikoloa, hawaii Burberry Stainless Steel Watch This watch is a must see from British luxury Brand, Burberry. The stainless steel watch features a dark gray black check nylon strap and a stainless steel gunmetal case; mineral crystal. The gunmetal dial with check motif has the Burberry signature logo, four hour markers and two hand quartz movement. Ricky Serrano R.E. Serrano, Inc.

Enjoy a restful vacation and peaceful serenity on the Big Island at the Fairway Villas in Waikoloa, Hawaii. These two 2-bedroom adjoining door units can accommodate up to 12 people. Guests will enjoy all the comforts of home and more, including golf, convenient shopping and dining, on-site fitness center and a walk to the beach. Includes five nights stay. Date to be arranged with donor. Mike Groeniger, Sr. Groeniger & Company

penthouse suite – san jose sharks Check out this treasured treat. Enjoy the Joseph J. Albanese, Inc. Penthouse Suite at the HP Pavilion to watch a local Northern California team favorite. You and 11 others will get in on the action with the San Jose Sharks vs Edmonton Oilers on Tuesday, December 21, 2010 at 7:30pm. Includes three parking passes. Kevin Albanese Joseph J. Albanese, Inc.

a day at cordevalle! You, your spouse, and two other couples will join your hosts, Mike and Lisa McElroy, for a day in the foothills of California’s Santa Cruz Mountains at CordeValle, a secluded luxury retreat in an extraordinary setting south of San Jose just north of the Monterey Peninsula. Enjoy a round of golf with Mike at the 7,169-yard, championship golf course by Robert Trent Jones, Jr., while your spouses/guests receive a relaxing massage with Lisa at Sense, A Rosewood Spa, and after enjoy and unwind with wine tasting at the nearby Clos La Chance winery and vineyard. The day includes either lunch or dinner at Il Vigneto or Lion’s Peak Grill where you can take advantage of the local organic produce and delicious wines. Date to be arranged with donor. Mike McElroy FMG, Inc.

half-day rafting trip for six This half day rafting trip on the South Fork of the American river is a great choice for groups looking for a fun trip that doesn’t take the whole day to run. The trip starts off easy so first timers will have time to get comfortable in the rafts before hitting the rapids in the famous South Fork Gorge. Arrive early to enjoy a BBQ lunch by the river for 6 people. The rafting trip begins at 1:00 PM, April through October. Christian Young DW Young Construction Co., Inc.

October 2010

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up

UNIVERSITY

EUCAâ&#x20AC;&#x2122;S CONSTRUCTION ADMINISTRATIVE PROFESSIONAL SERIES: FINAL SESSION

CONFINED SPACE The h Confined Space Entry course is intended to provide construction managers, competent persons, and workers with basic information regarding entry into confined spaces. The purpose is to create an awareness of the hazards associated with confined spaces and provide managers with basic information necessary to establish a confined space entry program.

Donâ&#x20AC;&#x2122;t D â&#x20AC;&#x2122; miss i the h finall session i iin EUCAâ&#x20AC;&#x2122; EUCAâ&#x20AC;&#x2122;s new C Construction i Administrative Professional Series (CAPS) program:

Participants receive a student manual and are expected to pass an open book test with a passing grade of 80%.

Get Ready for 2011

Cal/OSHA recommends that Confined Space certificates be renewed every two years. November 6, Saturday; 8:00am - 2:00pm Location: EUCAâ&#x20AC;&#x2122;s office in San Ramon Cost: $90 (member)/ $115 (non-member)

October 21, Thursday; 8:00am - 10:00am Protect you and your company. New employment laws are now affecting employers. The courts also have been busy in redefining the employment law landscape. These legal changes will affect a wide range of employersâ&#x20AC;&#x2122; policies and practices. This program will address these new laws and court decisions and provide insight into implementing new requirements at your company. Location: Chabot-Las Positas District Office, Pleasanton Cost (each class): $35 (member)/ $55 (non-member)

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Canâ&#x20AC;&#x2122;t find the specific training you need for your employees, or have questions about current classes? For all of your education/training needs, contact Joan Oâ&#x20AC;&#x2122;Brien, Education Coordinator, at 925/362-7303, jobrien@euca.com.


INSTALLATION DINNER Saturday, January 15, 2011 Palace Hotel, San Francisco 6:00pm-11:30pm; $195 per person

Meet the newly elected Board of Directors and Officers at the Annual Installation Dinner in San Francisco. EUCA has reserved a block of rooms at the Palace Hotel for EUCA Members and Guests at a discounted rate of $199/night. Reservations can be made by phone 888/627-7196, or online by using the link from www.euca.com.

PROMOTING LEADERSHIP: EUCA BOARD OF DIRECTORS 2011 ELECTIONS UNDERWAY The Nominations Committee and the Board of Directors are entrusted to select contractor candidates for EUCA leadership. Many considerations are made in the analysis of candidates: association participation, leadership qualities, areas of expertise, and more. From dozens of suggested candidates comes a final handful that is presented for your consideration. As in past, this year’s candidates are no exception. All are extremely qualified.

National Footprint, Local Insight Sedgwick’s Construction Law Group spans the

nation with acclaimed attorneys who have the local expertise necessary to achieve outstanding results in all types of construction matters.

AUSTI N BERM UDA * CH I CAG O DALLAS FORT LAUDERDALE

EUCA is one of only a few contractor associations still practicing the democratic principles of membership election of its leadership. A ballot has been mailed to the primary contact at each member company. Only one vote per member company is allowed. Please take the time to vote by filling out and mailing back the ballot, or by voting online. Your entry must be received no later than Friday, November 12, 2010. ◆

H OUSTON LONDON LOS ANG ELES NEW YORK NEWARK ORANG E COUNTY PARI S SAN FRANCI SCO *Associated office

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October 2010

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16 YEARS –1994

Contractor Member: St. Francis Electric Bob Spinardi

Contractor Member: Lone Star Landscape, Inc. Robert Samaniego

21 YEARS – 1989

15 YEARS – 1995

OCTOBER MEMBER ANNIVERSARIES

Associate Member: CEMEX Mike Camello

Contractor Members: R.J. Gordon Construction, Inc. John Johnson

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

19 YEARS – 1991

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

EUCA

22 YEARS – 1988

37 YEARS – 1973

26 YEARS – 1984

Contractor Member: Sanco Pipelines, Inc. Dave Schrader

Contractor Member: Ranger Pipelines, Inc. Tom Hunt

33 YEARS – 1977

Associate Members: Groeniger & Company Dick Alexander

Contractor Member: Maggiora & Ghilotti, Inc. Gary Ghilotti

28 YEARS – 1982

Tri-West Tractor, Inc. Randy L. Cram

Contractor Member: Pacific Boring David Cline

23 YEARS – 1987

C U D O WATER STORAGE SYSTEM

Associate Member: State Compensation Insurance Fund Cesar Farfan

Underground stormwater storage, infiltration, treatment, and rainwater harvesting

Contractor Member: McNamara & Smallman Constr., Inc. Bob Smallman

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

17 YEARS – 1993 Contractor Member: Norwood Construction Larry Norwood Associate Member: Arthur J. Gallagher & Co. Craig McCullum

14 YEARS – 1996 Contractor Member: K.J. Woods Construction Company, Inc. Kieran Woods

13 YEARS – 1997 Contractor Member: Bugler Construction Shelley Bugler

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

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JJ Albanese, Inc. Cahill Contractors, Inc. R.E. Serrano, Inc. DW Young, Inc. Rudolph & Sletten, Inc. EUCA

1-800-579-8819 www.kristar.com 24 WWW.EUCA.COM

“Any organizational leader who wants coaching for individuals, partnerships or teams would certainly benefit from retaining Dr. Mersky.” PAUL AHERNE, VP & GENERAL COUNSEL, RUDOLPH & SLETTEN

Jeri L Mersky, Ph.D. President, JLM & Associates, 510-339-3922 WWW.JLMASSOC.NET / JLMERSKY@COMCAST.NET


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

8 YEARS – 2002 Contractor Member: Soil Enterprises, Inc. Ken Manning Associate Member: Nylund Construction Engineering Service Art Nylund

Associate Members: MAG Trucking Debbie Ferrari G. Peterson Consulting Group, Inc. Gary A. Peterson

6 YEARS – 2004 Contractor Members: Flatiron Construction Corp. Curt Weltz Michels Tunneling Ray Post

7 YEARS – 2003

5 YEARS – 2005

Contractor Member: Neary Landscape, Inc. Brian Neary

Contractor Members: NTK Construction, Inc. Tin Tran

Penhall Company Mike Burkard Associate Member: Robust Network Solutions Wadih Zumot

4 YEARS – 2006 Contractor Members: D & D Pipelines, Inc. Dennis McElligott Shimmick Construction/ Balfour Beatty Rail Service JV Chris Wike

Associate Members: Last & Faoro William C. Last, Jr. Topcon California Andrew Evans Weule & Ballard, APC Edward Ballard, Esq.

2 YEARS – 2008 Contractor Member: Campanella Corporation Mike Campanella

1 YEAR – 2009 W. C. Moloney, Inc. Curt Maloney

Associate Member: RSC Equipment Rental John Stanton

EUCA’S GOVERNMENT RELATIONS COMMITTEE EUCA’s Government Relations Committee meets quarterly to discuss, analyze, give input and offer united support or opposition to state and federal legislation affecting contractors. From funding issues for clean water and highway infrastructure, to SWPPP and CARB, to the state budget issues and funding for work, your GR committee steps up on your behalf. Many of the committee members meet on a consistent basis with state Assembly and Senate members, introducing the legislators to EUCA values and advocating for issues that have a direct impact on our industry. From legislation to ballot propositions, from clean up bills to major

industry issues, from letter writing campaigns to key-testimony at a committee hearing, EUCA’s GR committee takes a stand for you. Additionally, EUCA’s Executive GR committee approves distribution of all Political Action Committee (PAC) funds. Vince Vasconi, A. J. Vasconi General Engineering Gary Andrews*, Amos & Andrews, Inc. (Chairman) Robert P. Chrisp, Chrisp Company Fred Ehler*, H.F. Ehler Co., Inc. Michael Bauman*, Bauman Landscape and Construction, Inc. Christian Young*, D.W. Young Construction Co., Inc. Ron Bredehoft* Bob Rosin, Leonidou & Rosin A Professional Corporation, (Government Relations Committee Consultant) Paul Tucci, Moss Adams LLP Bruce Daseking*, McGuire and Hester Rob Layne, O.C. Jones & Sons, Inc. Kevin Pedrotti, JK Pedrotti, Inc. (EUCA Legislative Advocate) Randy L. Cram*, Tri-West Tractor, Inc. Sharon Alberts*, Talus Construction, Inc. Lisa Wright, Leonidou & Rosin A Professional Corporation, (Government Relations Committee Consultant) Gregg Oxley, Allen A. Waggoner Construction, Inc. Felipe “Phil” Martin, Martin Brothers Construction Inc. Craig Caron, Interstate Grading & Paving, Inc. Mike Heffernan, Aon Construction Services Group Ben Rosenstein, Con-Quest Contractors, Inc. Don Cabianca, Cal State Constructors, Inc. Gary Heath, Volvo Construction Equipment & Services Andrew Vasconi*, A. J. Vasconi General Engineering Danny Wood, Jr., D.A. Wood Construction, Inc. Debbie Ferrari, MAG Trucking Jake Concannon, Gallagher Construction Services Bret Lawrence, Woodruff-Sawyer & Co. Joseph McGowan, Rogers Joseph O’Donnell Kevin Dern, Ghilotti Bros., Inc. Kevin Goddard, O.C. Jones & Sons, Inc. Linda Jewitt, South Bay Foundry Inc./Phoenix Iron Works * GR Executive Committee Members

October 2010

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SB 624: BETWEEN A ROCK AND A RIDICULOUS PLACE California is $19 billion in debt. At the time of this piece, Caltrans has stopped awarding bids on projects because we can’t get them a budget. Our legislators have a 20% job approval rating. And, today, September 15 is Day 77 of the current fiscal year, with just one day until the state reaches the record for latest budget passed by the Legislature. They say they’re working on it but there appears to be little, if any urgency to get a budget passed. So what the hell are they doing in all of their spare time in Sacramento? Here’s some lifechanging public-service representation you’ll appreciate: Low and behold SB 624 by Senator Gloria Romero, which takes up the issue of the state rock (yeah, we didn’t know we had a state rock either).

SB 624? More Like BS 624... W I T H O U R S TAT E B U D G E T D E F I C I T O U T O F C O N T R O L , D O W E R E A L LY H AV E ( L E G I S L AT I V E ) T I M E T O P L AY W I T H R O C K S ?

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INTERNATIONAL

Steel Pipe Systems

10681 Foothill Blvd., Ste. 450, Rancho Cucamonga, CA 91730, Tel 909-944-4100 10100 West Linne Rd., Tracy, CA 95377, Tel 209-836-5050 10441 Vine St., Lakeside, CA 92040, Tel 619-561-6363 2325 South 7th St., Phoenix, AZ 85034, Tel 602-252-7111

Website: www.ameronpipe.com Email: pipeinfo@ameronpipe.com

Complete engineering packages are available to provide fully integrated solutions 26 WWW.EUCA.COM

But apparently we do. It’s called the serpentine, and SB 624 seeks to strip the serpentine of its prestigious title. Why? Because, according to the bill, serpentine contains “the deadly mineral chrysotile abestos, a known carcinogen, exposure to which increases the risk of the cancer mesothelioma (and) California has the highest rates of mesotheliona deaths in the nation.” According to Dan Walters of the Sacramento Bee, putting a phrase like that into a state law could help those suing for exposure to serpentine. So, score one for the Trail Lawyers! What’s more, Walters reports that state Senator Gloria Romero’s bill was originally about composting, but she quietly gutted and amended its contents after bringing it to the Senate. Pardon us, Senator, but we have a $19 billion deficit, and growing! You’ve wasted our state’s resources in the form of legislative staff time, legislative council, house floor time, printing costs and anything else that may have consumed more than 2 seconds of time or 2 pennies in state resources on a piece of legislation that arguably does nothing, accomplishes nothing, and says less than nothing about the the senators efforts to repair the “rocky” state of our state.

S E N ATO R R O M E R O. . . W T F ? !


Ted Gallagher Vice President 925-627-2894 tgallagher@ctbt.com Lic #01467047

FEATURED AVAILABLE PROPERTIES:

Eric Rehn, CCIM Vice President 925-627-2892 erehn@ctbt.com Lic #01365267

4808 S Sunrise i D Drive, i Martinez, M ti CA

8615 R Robben bb Road, R d Di Dixon, CA

• Great office/shop/yard facility • Possible ±1AC storage yard available across the street

• Great location for the contractor or supplier doing business in Bay Area and/or Sacramento • Heavy Industrial Zoning • Wide Range of Uses Allowed • Very Competitive Lease/Sale Pricing

Thomas Caple Vice President 925-627-2891 tcaple@ctbt.com Lic #01089011

To view the complete flyers and other available properties, please visit www.ctbt.com.

Contract Drafting, Review and Negotiation Trial and Arbitration Claims, Dispute Resolution and Mediation Bid Protests Collection Employment Counseling

|phone| 650.691.2888 |fax| 650.691.2889 |web| www.alr-law.com

Contact: Janette G. Leonidou A. Robert Rosin

Leonidou & Rosin 777 cuesta drive | suite 200 mountain view, california 94040

October 2010

27


calendar

EUCA 12

Associate Committee Meeting

7:30am, EUCA Conference Room, Suite 205

12

PMCA: No BS Leadership

3:30pm-7:30pm, Residence Inn Marriott, Pleasanton

13

Safety & Insurance Sub-Committee Meeting

2:00pm, EUCA Conference Room, Suite 205

13

Safety & Insurance Committee Meeting

4:00pm, EUCA Conference Room, Suite 205

14

EUCA University: OSHA 10-Hour

7:00am-5:00pm, EUCA Conference Room, Suite 205

15

EUCA Magazine Deadline

November/December Issue – Feature: Return on Investment

19

PMCA: Claims Documentation

3:30pm-7:30pm, Residence Inn Marriott, Pleasanton

21

CAPS: Get Ready for 2011

8:00am-10:00pm, Chabot-Las Positas District Office, Pleasanton

26

PMCA: Negotiation Skills

3:30pm-7:30pm, Residence Inn Marriott, Pleasanton

27

Special Contractors Workshop: Storm Water

3:30pm-6:30pm, Peterson Tractor Co., San Leandro

28

Board of Directors Meeting

5:00pm, EUCA Conference Room, Suite 205

NOVEMBER 2010 2

PMCA: Labor Disputes

3:30pm-7:30pm, Residence Inn Marriott, Pleasanton

4

Associate Committee Meeting

7:30am, Location TBD

6

EUCA University: Confined Space

8:00am-2:00pm, EUCA Conference Room, Suite 205

9

PMCA: Round Table Discussion with Owners

3:30pm-7:30pm, Location TBD

13

EUCA’s Government Relations Dinner & Auction

6:00pm, Bridges Golf Course, San Ramon

16

Labor Committee Meeting

4:00pm, EUCA Conference Room, Suite 205

18

Board of Directors Meeting

5:00pm, EUCA Conference Room, Suite 205

Thanksgiving Holiday Observed

EUCA Office Closed

25-26

ADVERTISER INDEX Advertiser

Page#

Telephone

Web/Email

Advertiser

Page#

Telephone

Web/Email

26

209/836-5050

www.ameronpipe.com

R & B Company

3

408/436-1699

www.rbcompany.com

7

888/420-1055

jcbayline@sbcglobal.net

Rain for Rent

21

800/742-7246

www.rainforrent.com

Ameron Int’l Water Transmission Group Bay Line Cutting & Coring, Inc. Cassidy Turley BT Commercial Real Estate

27

925/627-2880

www.ctbt.com

Ritchie Bros. Auctioneers (America) Inc.

18

530/724-3900

www.rbauction.com

E.P.I.C. Insurance

14

415/356-3900

www.edgewoodins.com

Sedgwick, Detert, Moran & Arnold LLP

23

415/781-7900

www.sdma.com

Farwest Corrosion Control Co.

15

510/293-0350

www.farwestcorrosion.com

Simpson, Garrity, Innes & Jacuzzi, P.C.

10

650/615-4860

www.sgijlaw.com

Ghilotti Construction Co.

19

707/585-1221

www.ghilotti.com

Stacy and Witbeck, Inc.

8

510/748-1870

www.stacywitbeck.com

Graniterock

22

888/ROCK100

www.graniterock.com

State Compensation Ins. Fund

4

800/533-6868

www.scif.com

Groeniger & Company

31

800/675-PIPE

www.groeniger.com

Topcon California

29

800/500-8575

www.topcon.com

JLM & Associates

24

510/339-3922

www.jlmassoc.net

Trench Plate Rental Co.

20

800/321-5550

www.tprco.com

KriStar Enterprises, Inc.

24

707/524-8181

www.kristar.com

United Rentals Trench Safety

2

925/933-3660

pmcdonne@ur.com

Leonidou & Rosin

27

415/715-2860

jleonidou@alr-law.com

North Bay Construction, Inc.

27

707/763-2891

www.nbinc.net

Penhall Company

15

408/970-9494

www.penhall.com

Peterson Tractor Co.

32

888/PETERSON

www.petersontractor.com

28 WWW.EUCA.COM

Business Card Advertisers: Mechanics Bank US Concrete Precast Group

7 22

w w w . e u c a . c o m

OCTOBER 2010


CALL EUCA Deputy Director, Leslie Lord, and Attorney General, Jerry Brown, holding a copy of our EUCA Magazine from 1981— with the cover photo of him, then Governor Brown, signing EUCA’s (at that time the UCA) bill, SB 835, while Government Relations Director, Ron Pestana, and Board President, Nick Pisano, Jr., looked on. SB 835 is the bill that gave contractors the right to interest earned on their retention. Photo taken July 15, 2010, at a meeting with EUCA contractors and Board members with Attorney General Brown, discussing his candidacy for Governor.

EUCA — representing YOU to those who CAN make a difference.

Gubernatorial candidate, Meg Whitman (R) meets with EUCA’s Government Relations Director, Emily Cohen, at an event this past summer. “(We must have) an infrastructure built for all Californians, and job creation in the private sector,” stated Whitman. Read Whitman’s full statement on page 11.

30 WWW.EUCA.COM


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1OZWT]`\WOĂ&#x201A;a:SORW\U>W^SZW\S;ObS`WOZaAc^^ZWS` Services: ARRA Compliant Public Works Specialists Waterworks Fire Protection

Sewer Reclaimed Water Irrigation Storm Drain

&$%#>7>3 Groeniger & Company

www.groeniger.com

3854 Bay Center Place Hayward, California 94545

1-800 281-3333 rgroeniger@groeniger.com

Locations: Hayward Modesto Fresno Santa Rosa

Sacramento Roseville Bakersfield Salinas

Santa Maria Plant Division Lodi Chico

Tracy Lancaster


HOTTEST DEAL EVER ON A CAT ! ÂŽ



months

Financing for

*(77+(%(67)25/(66 Take advantage of incredible year-end savings at Peterson Tractor. With some of the best deals ever on Cat machines, now is the time to buy. Get 0% for 48 months on qualifying new Cat machines:* â&#x20AC;˘ Skid Steer Loaders â&#x20AC;˘ Multi Terrain Loaders â&#x20AC;˘ Compact Track Loaders â&#x20AC;˘ Compact Wheel Loaders â&#x20AC;˘ Mini Hydraulic Excavators

â&#x20AC;˘ Backhoe Loaders â&#x20AC;˘ Small Wheel Loaders â&#x20AC;˘ Small Track-Type Tractors â&#x20AC;˘ Small Hydraulic Excavators

+XUU\ RIIHUH[SLUHV 'HFHPEHU 

Plus, $499/month to own a new Cat skid steer loader!** Get the bestâ&#x20AC;Śfor less! For more information call your Peterson Tractor Sales Representative or visit www.petersontractor.com. FORTUNA 800-562-6735

WILLOWS 530-934-8839

SAN LEANDRO 888-738-3776

WILLITS 800-964-9006

REDDING 800-922-1881

SANTA ROSA 800-464-1558

CHICO 800-421-0747

ANTIOCH 866-870-2203

SAN MARTIN 800-562-9260

www.petersontractor.com * Offer good from September 1 to December 31, 2010 on select new models at Peterson Tractor. Offer applies to machines delivered in Peterson Tractorâ&#x20AC;&#x2122;s territory only, and cannot be combined with any other offers. Financing and published rate are subject to credit approval through Cat Financial. Additional terms and conditions may apply. Subject to change without prior notice. ** Payment represents ďŹ nancing through Cat Financial at 1.1% APR for 60 months for a 226B3 Skid Steer Loader equipped with 10x16.5 8PR Cat Premium Conventional Tires for a 60 inch (1524 mm) machine width and 60 inch (1524 mm) General Purpose Bucket with Bolt-on Cutting Edge. Taxes, freight, set-up, delivery, additional options or attachments not included in suggested retail price. Š2010 Caterpillar All rights reserved. CAT, CATERPILLAR, their respective logos, â&#x20AC;&#x153;Caterpillar Yellow,â&#x20AC;? the â&#x20AC;&#x153;Power Edgeâ&#x20AC;? trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

October 2010  

EUCA Magazine - Who Will Fix It?

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