Chalkline Magazine Winter 2021

The

WINTER 2021

The Official Publication of the Home Builders Association of Marion & Polk Counties

Natural gas on way out?

President’s Message �������������������������������������������������������4 New Directors Elected ���������������������������������������������������� 9 Tree Protection Changes ��������������������������������������������� 10 Oregon OSHA Penalty Update ������������������������������������ 12

CONTENTS / MEMBERSHIP & BOARD

2021 Board of Directors

Contents

OFFICERS PRESIDENT

Nolan Fridley, Nolan Fridley Construction VICE PRESIDENT

Jason Sawyers, Randy Fultz Custom Homes, LLC SECRETARY/TREASURER

Oleg Foksha, Foksha Homes ASSOCIATE VICE-PRESIDENT

Keith Owen, Owen Construction IMMEDIATE PAST PRESIDENT

Brett Tallan, M.J. Tallan Construction FORMER PAST PRESIDENT

Rick Massey, Richard Massey Construction

BOARD MEMBERS Mike Devlin, Withers Lumber Jeremy Haller, Interstate Electric Natalie Janney, MultiTech Engineering Kyle Juran, Remodeling by Classic Homes Brad Moore, AmeriTitle Caleb Remington, Remington Built Santiago Sarmiento, Sarmiento’s LLC Kevin Scerini, Sunco Homes & Remodeling Jordan Schweiger, Good Well Construction Bruce Wadleigh, Barn Wood Naturals Andrew Wheeler, T. Wheeler Homes, LLC Gary Williamson, Williamson James Homes

Association Staff Mike Erdmann, Chief Executive Officer mike@HomeBuildersAssociation.org Haley Hamilton, Director of Shows & Events haley@HomeBuildersAssociation.org Carrie Daye, Director of Member Services carrie@HomeBuildersAssociation.org Brad Nanke, Director of Safety & Training brad@HomeBuildersAssociation.org Tracy Mitchell, Contract Accountant accounting@HomeBuildersAssociation.org

Home Builders Association of Marion & Polk Counties 2075 Madrona Ave SE Suite 100, Salem, OR 97302 tel 503-399-1500 | fax 503-399-0651 www.HomeBuildersAssociation.org

The Chalkline is published by the HBA and Mt. Angel Publishing, Inc. Designer: Steve Beckner To advertise, call 541-944-2820 or email jerry.s@mtangelpub.com.

www.HomeBuildersAssociation.org

The Spike Club is an exclusive group of members who contribute to the growth of the association by recruiting and retaining members. Spikes maintain a special status, have the respect of their peers as valued members of the HBA and are recognized for their efforts locally and nationally.

To become a Spike, bring in six members to the HBA. Applications for prospective members may be obtained from the HBA office, or call to have one sent to the prospective member.

President’s Message ���������������������������������������� 4 Natural gas on way out? ���������������������������������� 6 New Directors Elected ������������������������������������ 9 Tree Protection Changes ���������������������������������10 Safety Update ������������������������������������������������� 12 Vital Statistics �������������������������������������������������� 14

ALL TIME BIG SPIKE 1500+ John Gooley 2606

STATESMAN SPIKE 500+ Ric McNall 804

SUPER SPIKE 250–499 Tim Mametieff 487 Mike Smith 468 Rick Massey 430 John Mills 424

Dan Dorn 366 Jeffrey Green 357 Chuck Foster 290 Jubal Frost 272

ROYAL SPIKE 150–249 Steve Johnson 244 Mike Riddle 232 Tom Wheeler 204

Don Druliner 202 Rick Ziebell 169 Ken Hannegan 164

RED SPIKE 100–149 Kelvin Dettwyler 145 Rob Rardin 124

Jordan Schweiger 100

GREEN SPIKE 50–99 John Hammer 98 Lora Creswick 93 Matt Holstege 91 Rich Kansky 84 Kent Kaufman 81 Brad Moore 80 Larry Bilyeu 75 Eric Olsen 70

Kathy Temple 65 Bruce Hardy 64 Don Sturgeon 62 Kerry Kuenzi 61 Mike Smith 56 Serge Serdsev 55 Eric Templeton 53 Randy Melton 50

LIFE SPIKE 25–49 Eric Jensen 48 Steve Herr 46 Rich Tovar 46 Jim Hobbs 45 Ryan Bloedel 44 Michael Devlin 40 David Hafner 38

Nolan Fridley 36 Jason Sawyers 35 Tim Kelsh 34 Rich Fry 26 Laura Dorn 28 Mark Shipman 27 Kevin Stone 25

BLUE SPIKE 6–24 Hunter Emerick 26 Kraig Kelly 23 Randy Reeves 23 Steve Hurley 22 Jason Robertson 22 Robert Kleinke 21 Chad Robb 21 Oleg Foksha 15 Brett Tallan 13 Andrew Wheeler 13 Don Lulay 12

Brett Tallan 12 Gary Epping 11 Chad Montgomery 11 Ricky Fast 10 Chris Rasmussen 10 Jim Sparkman 9 Bonique Hollinrake 8 Tim Roth 8 Leslie Savage 6 Tracy Belle 6

New & Reinstated Members Absolute Foundation Dan Smith 971-901-1026 Spike: Mike Riddle AKS Engineering Zach Pelz 503-400-6028 American Woodmark Cabinetry Dale Roberts 503-509-9411 Spike: Jordan Schweiger AmeriTitle Julie Lindemann 503-581-1431 Spike: Brad Moore AmeriTitle Cindy Morse 503-581-1431 Spike: Brad Moore AmeriTitle Joseph Garcia 503-581-1431 Spike: Chad Robb Andy Medcalf Construction Andy Medcalf 503-585-1416 AP Construction Services Anatoly Polkhovskiy 503-990-7779 Spike: Mike Riddle Benchmark Concrete Cutting Willie Leach 503-586-6150 Spike: Jordan Schweiger Blue Star Gas Salem Co. Darren Engle 503-391-2737 Spike: Jordan Schweiger Breit+Hill Home Jamie Hildebrand 503-371-3932 Spike: Mike Riddle New & Reinstated Members continues on Page 13

Dropped Members Do you know or do business with any former members of the association? If so, give them a call and encourage them to maintain their HBA membership. You’ll get a Spike Credit, plus help keep the association strong.

Diligence Construction Caleb Folsom 503-979-1188

We are an association of building industry professionals committed to supporting our members. We advocate for balanced, efficient, and responsible development while promoting the social and economic values of homeownership in our community.

Winter 2021 | The Chalkline | 3

President’s Message We have one of the best associations in the country and I am grateful to be a part of it. We recently had the Trade Show Night at the convention center, and it was great to be back in person for an evening. The night hosted many excellent builders and associates which has lead to this becoming such a great event. When we are together, I am reminded of how great the need is for our organization.

Thank you for committing to be a part of the HBA. If you are reading this, you have likely heard of Salem’s Climate Action Plan. There are several harmful proposals coming from this “action plan.” One of the recommendations has been that we eliminate natural gas on all new installations. This would have a profound effect on the homebuilding community, and the residents of our city. We all remember the ice storm last year, when people were out of power for a week or more in some areas. If gas heat was not an option, then many would have gone without heat during an already difficult time. I speak with a lot of people who are completely unaware of this proposal and the other recommendations coming from the Climate Action plan.

I would encourage everyone to inform the people around

by Nolan Fridley 2021 HBA President

you about these details. We need people motivated to vote in the upcoming election cycle so that we can see some positive changes and curb some of these harmful strategies.

I appreciate everyone who stays informed on these issues because you likely recognize how valuable the HBA is in advocating for our businesses.

Thank you for being involved in this association. We recently had a strong membership drive, and it’s encouraging to see that our participation is strong coming out of the pandemic period. It’s been an honor to serve as your president this year!

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Natural gas on way out?

Builders concerned about potential impacts of Salem’s new climate plan

By James Day

The city of Salem is engaged in a lengthy process to establish a climate action plan for the city. The key goal, said plan manager Patricia Farrell of the city’s Public Works Department is to reduce greenhouse gas emissions 50% from 2016 levels by 2035 and to net zero by 2050.

One of the plan’s nearly 200 strategies has led to sharp concerns from the Home Builders Association of Marion & Polk Counties and other business organizations. The building industry is facing the possible ban on the installation of natural gas infrastructure in favor of electric.

The final draft of the plan was released Nov. 23 (see the information box for a link). The City Council was scheduled to hold a public hearing on the plan at its Dec. 6 meeting, but that schedule had to be altered because of the high interest in the project.

The strategy listed under the energy section of Appendix 8 of the plan calls for:

“Due to the number of public comments received and the newly updated version of the plan, we are providing more time for both the Salem City Council and the community to review and provide additional comments,” Farrell wrote in a news release accompanying the posting of the plan.

No date has been specified for council action on the climate action plan, and the Dec. 6 session only featured an “information report” updating the council on the 264-page plan, which represents 15 months of work by a task force, a city advisory group, subject matter experts and three consulting firms, led by the Verdis Group of Lincoln, Nebraska.

The implementation of polices to reduce natural gas usage, such as requiring all-electric new construction, prohibiting fossil fuel usage in new construction and/or banning the use of gas and oil in residential appliances.

Farrell emphasized that the plan calls for the council to consider the strategies, which she said are not a done deal.

“That’s an important thing to note,” she said. “Approving the climate action plan does not mean all the strategies will be implemented.”

That’s true, said Mike Erdmann CEO of the Home Builders Association, “but it sets the stage for future City Council action to ban gas and the city’s own consultants have said that the only way the City can reach their adopted greenhouse gas

HOW TO PARTICIPATE The city of Salem will continue to accept public comment on its draft climate action plan until the proposal goes to the City Council for action. To participate email your comments to SalemCAP@cityofsalem.net. To view the plan and its related documents go to https://www.cityofsalem.net/Pages/climate-action-plan.aspx on the city’s website.

6 | The Chalkline | Winter 2021

www.HomeBuildersAssociation.org

reduction goals is to ban both the installation of new natural gas and the use of gas by existing customers.”

Concerns raised by Erdmann, who served on the task force, and others in the building industry include: • Gas furnaces are significantly cheaper to install than electric heat pumps or mini-splits (heating and cooling systems that allow you to control the temperatures in individual rooms or spaces).

• Increased costs resulting from a gas ban would worsen Salem’s housing affordability crisis • Gas appliances last longer than electric, according to the U.S. Department of Energy • A ban on gas has the potential to endanger lives, as demonstrated in the February ice storms that left many Salem residents without power for more than a week.

If similar power outages happened during freezing conditions, those without gas would be at risk.

• Home buyers vastly prefer gas heating and gas ranges to their electric counterparts.

Brooks Gladow of Salem Heating, echoed the concerns of Erdmann.

Gladow noted that while current codes for electric heat pumps on new construction have improved efficiency significantly “we’re seeing heat pump systems costing $6,000 more than a gas furnace with an air conditioner.

Customers can tell the difference between gas and electric as

well, Gladow said.

“Gas furnaces produce heated air that’s 120 degrees,” he said.

“Heat pumps produce heated air that’s 90 degrees. While 90 degrees does warm the home, it can lead to complaints about ‘drafts’ as it’s obviously cooler than your skin temperature.

“The warmer gas furnace heat does provide a greater level of comfort. Additionally, gas furnaces have a longer useful life expectancy than heat pumps.”

Gladow also emphasized the safety concerns raised by Erdmann.

“Natural gas furnaces can usually be run on generator power.

Due to the high electrical loads of heat pumps, it would take a pretty big generator to run a heat pump,” he said. “In events like last February’s ice storm, where many customers were out of power for up to two weeks, they were still able to utilize their natural gas equipment for heating/cooking/water heating/etc. In the event natural gas were eliminated, events like (the storm) could have catastrophic impacts.”

The HBA recognizes the need for utilities to shift away from non-renewable fossil fuels, and supports NW Natural’s ongoing efforts to transition their gas supply to renewable sources of gas such as those derived from sewer treatment plants, dairies and landfills. As soon as this month, Oregon’s Department of Environmental Quality is expected to pass rules obligating NW Natural and other Oregon gas utilities to Continued next page

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Winter 2021 | The Chalkline | 7

Natural gas on way out?

continued from page 7

reduce greenhouse gas emissions by at least 80% by the year 2050. Similarly, Pacific Power and PGE, both of whom derive much of their current electrical generation from gas fired power plants, are required by Oregon law to be carbon neutral by the year 2040.

The Salem plan notes that no comparable city has yet enacted a comprehensive ban on fossil-derived natural gas that terminates current connections. Natural gas bans that eliminate future growth of new natural gas hookups are becoming more common. Berkeley, California, was the first to do so in 2019 and dozens more American cities are either considering or in the process of implementing such bans.

The HBA, Erdmann said, will continue to work with NW Natural, the Salem Area Chamber of Commerce, the Mid Valley Association of Realtors, the Oregon Restaurant and Lodging Association and others to fight a potential ban.

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HBA NEWS

New Board of Directors Elected Congratulations to Jason Sawyers who was elected 2022 President of the Home Builders Association of Marion & Polk Counties in late November, along with the remainder of the 2022 Board of Directors. Sawyers, the owner of Randy Fultz Custom Homes, has more than 21 years experience in the building trades – first as a subcontractor and the last six years as a custom home builder. While Sawyers has traditionally built approximately 12 single-family homes annually, he most recently expanded into multifamily construction, completing a 102 unit apartment complex in 2021. Joining Sawyers on the HBA’s Officer team are Vice-President Oleg Foksha of Foksha Homes, Secretary/Treasurer Jordan Schweiger of Good Well Construction, Associate Vice-President Brad Moore of AmeriTitle, Immediate Past President Nolan Fridley of Fridley Custom Homes, and Former Past President Jubal Frost of Focus Development.

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Newly elected Directors on the association’s Board are Jed Bennett of Steve Bennett Construction, John Eld of Bonaventure, Beth Rhoades of C&R Remodeling, Fred Martin of F&W Fence, David Qualls of Parr Lumber and Alyssa Wavra of Wavra Design. They join existing Directors Caleb Remington of Remington Built LLC, Andrew Wheeler of T. Wheeler Homes, Gary Williamson of Williason-James Homes, Jeremy Haller of Interstate Electric, Natalie Janney of MultiTech Engineering and Santiago Sarmiento of Sarmientos LLC.

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HBA NEWS

Big Changes Coming to Salem’s Tree Protection Requirements Developers and builders will soon see major changes in Salem’s tree protection requirements, as a result of ordinance changes soon to be adopted by the Salem City Council. The changes, which will require additional trees to be preserved within new developments, and will require protective silt fencing around the drip lines to prevent damage to tree roots, will apply to tree conservation plans approved after the effective date of the ordinance, and not to trees protected under existing tree conservation plans in previously approved developments.

Salem’s current tree code requires that developers preserve a minimum of 25% of trees existing on site, with “trees” defined as those 10” or more in width when measured 4.5’ off the ground (dbh, or diameter at breast height). Under the new revisions, the preservation requirement will be increased to 30% of trees existing on the site.

In addition to the increased preservation requirements, Salem is also redefining “Significant Trees” to include Oregon White Oaks 20” dbh or greater, and all other species of tree 30” dbh or greater. Under Salem’s residential subdivision development code, significant trees can only be removed

when there are no reasonable design alternatives that would enable preservation of those trees. Currently, only Oregon White Oaks 24” DBH or greater are defined as a Significant Tree.

A new requirement for protective silt fences around protected trees is likely to cause much greater challenges

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HBA NEWS

for builders siting homes on lots and working around trees. Salem’s revised tree code will require silt fences to completely surround the critical root zone of protected trees, with a one foot radius (2 foot diameter) for every one-inch of dbh of the tree. No grading, placement of fill or materials, or parking of vehicles is allowed within this fenced area, though grading may be allowed up to 30% of the protected area but only if a report from a certified arborist is submitted to the city documenting that the grading will not compromise the long term health and stability of the tree and all recommendations in the report to minimized impacts to the tree are followed. The protective silt fences will have to remain in place around trees until the home receives its notice of final completion. For lots containing or adjacent to larger trees, these additional tree protection measures will cause significant challenges for builders in siting homes on the lot, grading the site and throughout construction.

Persons who violate the city’s tree protection requirements will be responsible for mitigation costs not less than the monetary value of the removed trees, which can easily exceed $10,000 per tree for larger trees.

The Home Builders Association has been actively engaged in opposing these changes to Salem’s tree code due to the impacts on housing affordability, as the changes will result in significant costs throughout the development and building process.

As this article goes to print, the HBA is working with the City Council to potentially make modifications to the city’s proposal that would make the new requirements more workable for the development and building community.

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Winter 2021 | The Chalkline | 11

HBA NEWS

Oregon OSHA Penalty Update

safety

Summary

Brad Nanke HBA Director of Safety and Training

Oregon OSHA has increased certain minimum and maximum penalties for alleged violations. The changes were adopted through Oregon OSHA Administrative order 13-2021 on November 1, 2021 and become effective on December 1, 2021

Background & New Penalty Amounts In November of 2015, Congress passed legislation requiring federal OSHA to increase maximum and minimum penalties for alleged violations by up to 78%. Federal OSHA had not raised these penalties since 1990, reducing their effectiveness as a deterrent for noncompliance. Under federal law, states that operate their own Occupational Health and Safety plans are required to adopt maximum penalty levels that are at least as effective as federal OSHA’s. Oregon must adopt similar standards as federal OSHA to maintain state plan authority.

After seeking a change in the statute to provide the necessary authority to mirror federal penalty adjustments, Oregon OSHA first adjusted maximum and minimum penalties by rule in 2017, with an effective date of January 1, 2018. Under that rule change, the maximum penalty for a violation that is not classified as willful or repeat was raised from $7,000 to $12,471, and the maximum penalty for willful or repeated violations

was raised from $70,000 to $124,709. The minimum penalty for a willful violation was increased from $5,000 to $8,900, while the other minimum penalties were left unchanged. This rulemaking aligns Oregon OSHA with the most recent federal OSHA penalties. Effective in January of 2021, the federal maximum penalty for a violation that is not classified as willful or repeat was increased to $13,653 and the maximum penalty for willful or repeated violations was increased to $136,532. In addition, the rulemaking includes several other clarifications and technical adjustments to the Oregon OSHA penalty rules.

Resources Contact Brad Nanke, HBA Director of Safety & Training at 503-990-9216 if you have any questions, want further details on the rulemaking, or have questions about compliance with any of the Oregon OSHA rules.

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Welcome New & Reinstated Members

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Brenner LLP Chris Ueeck 503-585-8414 Spike: Jordan Schweiger

Drywall Masters Sergio Arredondo 503-586-4841 Spike: Jordan Schweiger

Logan deVos Logan deVos 503-602-1068 Spike: Jordan Schweiger

ProLift Garage Doors of Salem Gabe Peace 541-971-5195 Spike: Jordan Schweiger

Cascadia Builders Shawn Deets 503-931-4333 Spike: Michael Devlin

Dynamic Tech Solutions Inc Alexander Gilbert 503-967-6770 Spike: Jordan Schweiger

Louisiana Pacific Mike Memmolo 503-312-3411 Spike: John Gooley

Quality Painting Martinez Miguel Martinez 503-984-3433 Spike: Kevin Scerini

Coast to Coast Remodelers LLC Tino Lara 503-810-3055 Spike: Mike Riddle

First Federal Aimee Mendonca 503-472-6171 Spike: Mike Riddle

RAD Enterprises Alex Davis 503-623-8984 Spike: Jeff Green

Coho Realty Chelsea Denney 503-385-8835 Spike: Eric Nelson

Granite Countertops and More Alex Voronko 503-375-9999 Spike: Oleg Foksha

Lowe’s Home Improvement - Keizer Station Jay Bucher 503-304-3010 Spike: Jordan Schweiger

Conser Homes Greg Conser 541-791-9310

Hagan Hamilton Insurance Solutions Joe Paterson 503-472-2165 Spike: Mike Riddle

D&K Installations Josh Klug 503-932-7648 Spike: Jordan Schweiger Dio Construction LLC Dio Modesto 971-218-3620 Spike: Jordan Schweiger DOS Framing Oscar Bejar 971-30111072 Spike: Jordan Schweiger Doug Reagan Custom Homes Doug Reagan 971-701-7319 Spike: Jordan Schweiger Downs Construction Sergei Gostevsky 971-343 2155 Spike: Nolan Fridley

Lowe’s Home Improvement - Salem Bill Fitzgibbon 503-589-4333 Spike: Jordan Schweiger Madden Industrial Craftsmen Kurtis Drews 206-492-3691

Ivan’s Concrete Construction Oswaldo Vargar-Ortiz 503-302-8750

MMI Construction Mike Stackpole 503-559-4943 Spike: Matt Holstege

J.M. Smith Gutters and More LLC Jeremy Smith 503-932-0767 Spike: Jubal Frost

Mountain Coast Electric Yuriy Murashko 503-877-4316 Spike: Jordan Schweiger

Jeff Jarrett Construction Jeff Jarrett 503-580-8852 Spike: Jason Sawyers

Oregon Excavating & Underground Brian Thexton 503-849-3764 Spike: Jordan Schweiger

KARM Safety Solutions Robert Miller 503-304-7037 Spike: Santiago Sarmiento

Palmer’s Heating and Construction Blake Palmer 458-777-8095

Lennar Northwest Inc. Josh Boatsman 360-258-7900

PDX Carpentry Pros LLC Victor Cortes 503-991-4721 Spike: Jordan Schweiger

Santiam Bob Angove 503-569-6100 Spike: Santiago Sarmiento Secor Homes LLC Alex Secor 971-241-4601 Spike: Mike Riddle Square Deal Concrete Construction Shane Barnett 971-563-0282 Spike: John Gooley Summit Cleaning & Restoration Mark Fields 503-769-4333 Spike: Jeremy Haller Sunset Outdoor Living Tom Martin 503-831-4674 Spike: Andrew Wheeler Sure Guard Construction Jonathan Tutt 360-949-3389 Spike: Jordan Schweiger UAM Construction Alma Leon 971-207-1334 Spike: Jordan Schweiger

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Winter 2021 | The Chalkline | 13

Vital Statistics NEW RESIDENTIAL CONSTRUCTION

Information Courtesy of Willamette Valley Multiple Listing Service

KEIZER

CENTRAL SALEM

SUBURBAN EAST—N

SUBURBAN EAST—S

SE SALEM

SOUTH SALEM

WEST SALEM

MARION COUNTY

POLK COUNTY

TOTAL

8

5

209

28

164

32

22

169

172

809

$527,687

$361,400

$387,329

$336,353

$431,869

$48,381

$522,357

$462,666

$377,345

$419,479

Average Square Footage

2,403

1,548

1,898

1,618

1,764

2,265

2,393

2,014

1,716

1,877

Average Cost per Square Foot

$218

$235

$209

$213

$257

$243

$285

$232

$223

$230

Average Days on the Market

146

64

109

189

166

176

110

120

152

138

Currently Active Listings

4

0

0

0

15

3

7

16

41

86

Units Sold 12 Months to Date Average Sales Price

Sold Units-12 Months to Date

Months of Inventory on Market

Top Area Builders RANK

BUILDER

PERMITS*

1.

DR Horton Inc.

98

2.

Forrest Ridge Homes Inc.

60

3.

Stafford Homes & Land LLC

58

4.

Wind River Homes

32

5.

Hayden Homes LLC

31

6.

Banner Homes

27

7.

Don Lulay Homes Inc

22

8.

West Coast Home Solutions

21

9.

Tassy L. Davis Builder

20

10.

Lennar

18

Data for all areas of Marion and Polk Counties. Dec. 1, 2020 - Nov. 30, 2021.

Data compiled from building permits applied for through Salem, Marion County, Polk County, Dallas and Independence building departments.

Welcome New & Reinstated Members Ultimate Tile LLC Vyacheslav Samoylich 503-504-1800 Spike: Oleg Foksha Umpqua Bank Home Lending Jim Hungerford 971-226-8403 Spike: Jordan Schweiger United Way of the Mid-Willamette Valley Rhonda Wolf 503-363-1651 Spike: Jordan Schweiger

14 | The Chalkline | Winter 2021

continued from page 13

US Bank Aaron Frank 503-464-4933 Spike: Jordan Schweiger

Western Pacific Roofing LLC Joe Garland 503-659-7663 Spike: Jordan Schweiger

Vitek Construction Sergio Sanchez 503-857-7355 Spike: Jordan Schweiger Westco Construction, Inc. Francie West 503-871-4237 Spike: John Gooley

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