The Official Newsletter of Lusardi Construction Company - Summer 2023

CONSTRUCTION ECONOMICS

ENR’s 20-city average cost indexes, wages and materials prices. Historical data for ENR’s 20 cities can be found at ENR.com/economics

TOTAL CONSTRUCTION

The dollar value of total construction put-in-place showed a monthly escalation rate of +1.2% in April, according to the U.S. Dept. of Commerce’s seasonally adjusted data. On a yearly basis, total construction was 7.2% higher than in April 2022. Yearly private sector construction rose 4.9%, while public work was up 16.5%. Nonresidential construction in the private market rose 31.2% over the past year, while public nonresidential work rose 16.8%.

Seasonally adjusted rate in ($) billions

Summer Vibes Only

“Summertime, and the livin’ is easy…”. What a great jazz tune and lyric. As June comes to an end, we hope everyone has an enjoyable summer season. A few updates on what’s happening:

New Faces

We are pleased to welcome several new employees aboard. If you haven’t already done so and have the opportunity, please introduce yourself to:

- Amanda Bailey (interning in San Marcos assisting front desk and many other projects)

- William (Bill) Faust (Lusardi Land Company Accounts Receivable/Payables Specialist)

- Eyad Atshan (Project Engineer Intern in our Dublin office)

- Matt Socha (Project Engineer in our San Marcos office)

- Madison Farfan (Human Resources Coordinator in our San Marcos office)

- Jessica Bailey (Planning Intern in our San Marcos office)

In addition, we have the following individuals “in the queue”:

- Carter Sloane (Project Engineer Intern in our San Marcos office)

- Erich Lippuner (Project Engineer Intern in our San Marcos office)

- Brandon Cuneo (Project Engineer in our Dublin office)

We continue to recruit and hire at many positions within the Company. Whether it be Project Management in the office, Carpenters and Laborers in the field, or Mechanics in the yard, we are hiring! If you know of any candidates that would be a good fit with our team, please let Madchen Burke and/or Larry Letts know, and don’t forget new Employee Referral Program. Reach out to Madchen or Madison with any questions. To everyone who has recently come aboard, Welcome!

New Human Resources & Time Keeping System

In our last edition, we reported that we had run into a few stumbling blocks with how ADP could calculate and report our Prevailing/Davis-Bacon wage project payroll, as well as difficulty we experienced entering daily time into their system. Although ADP gave it a good try, in the end, the product they could provide just didn’t meet our needs. Since failure is never an option, we pivoted to a solution that will keep our Payroll system (including Prevailing/Davis-Bacon wage reporting) with our current Sage 300 system. Our Sage consultant recommended a Human Resource/Time Keeping system by Arcoro that plays well with Sage, and is reported to provide the same functionality that we expected from ADP. We are just beginning the implementation efforts now with a goal of having the HR portion of the system active in time for our annual benefit Open Enrollment that begins in November. Stay tuned for more updates.

Final Thoughts

We are blessed to be able to give back to our community, supporting several worthwhile causes. In addition to the corporate support Lusardi Construction provides, we are so proud of the individual support our folks provide for those causes. Looking ahead to the end of summer, we will again be a Presenting Sponsor of the CAF Community Challenge, to be held October 22nd at Mission Bay’s Bonita Cove. We are attempting to beat the participation numbers we set at the Padres Pedal The Cause this past March where we had over 100 employees, family, and friends represent Lusardi! If you have participated in the past, please do so again and spread the word to your coworkers. It is a wonderful day of Lusardi camaraderie, all while raising funds for a terrific cause. Please reach out to Marcella with any questions.

Chris Hess, Vice President - Operations

Fly to Remote Island

Boat Tour

Island Drinks

Afternoon Snooze

Sunset Walk

Family Dinner

Lusardi Tower

Groundbreaking

Scripps Memorial Hospital Encinitas

Thursday, June 8, marked an exciting beginning of construction on the highly anticipated Lusardi Tower, a monumental project named in a heartfelt tribute to Debbie and Warner Lusardi. Their remarkable generosity shines through their lead gift of $25 million, which has paved the way for this visionary endeavor. Set to be a state-of-the-art hospital building spanning an impressive 185,000 square feet, the Lusardi Tower is expected to open its doors to patients in 2029, promising cutting-edge healthcare and enhanced medical services.

As part of this project, the campus will also welcome the esteemed Lusardi Pulmonary Institute, a specialized facility that delivers exceptional pulmonary care. With a focus on treating respiratory conditions and improving patients’ respiratory health, this institute will undoubtedly become a beacon of hope for individuals needing advanced pulmonary treatments and therapies.

Expanding the main hospital’s mother/baby unit is another noteworthy addition in response to the growing demand for exceptional maternity care. This expansion aims to cater to the increasing number of families in North County, providing new postpartum beds and comprehensive services to support mothers’ and newborns’ health and well-being.

The construction of the Lusardi Tower, the establishment of the Lusardi Pulmonary Institute, and the expansion of the mother/baby unit represent a significant milestone in advancing healthcare in our region. It is a testament to the Lusardi family’s philanthropic spirit and unwavering dedication to improving the lives of individuals and families in our community. With each passing day, we eagerly anticipate the completion of these transformative projects, as they are poised to shape the future of healthcare delivery and positively impact countless lives for years to come.

Rendering of Lusardi Tower

Warner C. Lusardi

“As I reflect on the remarkable milestone of 65 years of loyalty, hard work, and service that you all have dedicated to our company, I am filled with profound gratitude and admiration. Your unwavering commitment throughout the years has played an integral role in shaping our organization and its success.

Beyond your individual contributions, your collective commitment has fostered a strong sense of unity, camaraderie, and collaboration within our organization. Together, we have weathered storms, celebrated victories, and forged an unbreakable bond.”

With heartfelt gratitude, Warner C. Lusardi

Debbie Lusardi; Scripps Health President and CEO Chris Van Gorder; Scripps Encinitas Physician Chief Operating Executive Scott Eisman, M.D.; Warner Lusardi; Scripps Board of Trustees Chairman Richard Bigelow; and Scripps Corporate Senior Vice President and Chief Development Officer John Engle.

LUSARDI BUILDS...

Team Lusardi

Padres Pedal the Cause holds a special place in our hearts as we actively participate as a team fueled by our dedication to making a difference. This remarkable charitable event has become a beacon of unity, determination, and community spirit in San Diego.

When it comes to Padres Pedal the Cause, we go above and beyond our daily construction endeavors. We eagerly embrace the challenge of cycling and walking with purpose, knowing that every mile contributes to groundbreaking cancer research, innovative clinical trials, and crucial patient care programs. It’s a tangible way for us to make a meaningful impact in the fight against cancer.

But our involvement doesn’t stop there, we believe in giving our all both on and off the cycling and walking route. We pour our energy into creative fundraising efforts, tapping into our entrepreneurial spirit to mobilize our network and community. Through charity auctions, fundraising events, and donation drives, we strive to inspire our colleagues, clients, and partners to join us in supporting this vital cause.

Padres Pedal the Cause serves as a powerful reminder of our corporate responsibility and unwavering commitment to the community. It embodies the true spirit of unity as we come together as a team, pushing our physical limits while also channeling our resources towards fundraising. We believe in the collective strength of our San Diego community, knowing that by working together, we can conquer cancer and create a brighter future for all.

We are proud to be part of this remarkable event and look forward to continuing our support in the years to come!

$41,877 102 Marcella G. Andee T.

Lusardi Raised Team Total Lusardi Top Fundraiser Top Fundraiser

PRECONSTRUCTION CORNER

While its widely known that interest rates have impacted the commercial market, Lusardi’s strong leadership is keeping our Preconstruction Department busy bidding new jobs and updating pricing for our Owners on a number of projects.

HR CORNER

Vacation

Summer is here and the weather is breezy! Reminder to take your vacation! As a part of our updated policy once you have reached the max of 1.5x the annual amount you will stop accruing anymore vacation until you use some.

Ryan O’Connor PRECONSTRUCTION

After four long years of re-design and value engineering, we are turning in a final number for FDA Atlanta Laboratory Project and anticipate boots on the ground in September! Drum Roll & Cheering! We’ve met some very nice folks in the South as we dial in this job.

We are hitting the ground running on a number of schools this summer including: the Hope & Kelly Elementary Schools; Phase 2 at Jefferson Elementary School; and the Aviara Elementary School Modernization.

Upcoming Jobs:

• 388 Vintage

• Porsche Remodel & New EVB Maintenance Building

• Buena Vista Elementary School

We have been providing pricing to Owners for a number of desert jobs including a Church, Restaurant Remodel, and Country Club Remodel.

The next set of plans is forthcoming for Shinohara Business Center.

We also proposed for some TI work on some of our shell jobs; the relocation of our local The Mining Company Restaurant to new digs in San Marcos, and are bidding for a hotel remodel at the Cache Creek Casino in Brooks, CA.

While the first half of this year has been tumultuous for our economy, we look to things settling down and some “shelved” projects coming back towards the end of the year.

SAFETY CORNER

Recruitment

Brown SAFETY

Madchen Burke HUMAN

Lusardi is recruiting for experienced individuals to join our team.

RESOURCES

• Project Manager, SoCal, NorCal & Southwest Atlanta

• Project Engineer, SoCal, NorCal & Southwest Atlanta

• Carpenters, SoCal

• Mechanic, SoCal

As a friendly reminder we launched our Employee Referral Program last year. If you know someone who you think would be a good fit for our company, let us know! The referring employee must be named on the new hire application as either a reference, or named as “how you heard about the position,” and you must notify H.R. prior to the interview. Temporary, summer, contract and former employees of Lusardi Construction are not eligible candidates for referral awards.

Don’t forget to check our careers page https://www.lusardi. com/careers/ regularly for new openings.

Wellness Week

Be on the lookout for our annual wellness events coming up this summer the week of August 7th – August 11th.

Flu Shots

Lusardi will be hosting a Flu Shot Clinic on September 1st. More information on how to get you and your family members signed up!

Summer is upon us, and it’s starting to heat up out there! Remember, Cal OSHA’s number one concern is heat illness. Remember to stay hydrated by drinking plenty of water and stay away from caffeine and alcohol. When the temperature reaches 80 degrees, we must have shade as close to the work area as possible and suitably cool water for employees. Remember the signs and symptoms of heat illness: dizzy, lightheaded, headache, irritability, and pale, cool, clammy skin. All of our Superintendents, Foreman, and Managers treat heat illness with the utmost importance, so please notify your supervisor if you experience any heat illness symptoms.

The other topic I would like to discuss is our auto program. We need your help when driving a company vehicle. We all know how dangerous it is to be on the roadways. So please do your part by putting down your phone and resisting the temptation to drive distracted.

Luke

MARKETING CORNER

Newsletter

Introducing the long-awaited return of our Newsletter! In this latest edition, we proudly showcase the remarkable accomplishments of Lusardi Construction Company. From completed profile projects and award-winning achievements to engaging community events, individual triumphs, and heartwarming snapshots of the Lusardi family, there’s something for everyone in this publication!

Proposals and Project Pursuits

Our Preconstruction and Executive teams have been tirelessly immersed in the process of assembling multi-million dollar proposals, coordinating strategic interview preparations, and establishing connections with potential clients vying for highly sought-after construction projects across California and beyond. Through our meticulous interview preparation, we have successfully secured contracts over competing contractors in the last 12 months. I take great pride in acknowledging the exceptional team effort displayed by all those involved.

Events

Get ready for an exciting lineup of events! From team-building adventures to competitions and wellness activities, you don’t want to miss out. Stay tuned for more details and updates through our upcoming communications. Get set to experience a memorable and diverse range of activities that will leave you energized and fulfilled!

Happy Summer Lusardi!

As with all of you, I count it a blessing to being a part of the Lusardi Team. In these interesting financial times, it is good to know that as a company we have a strong foundation and future!

Company Vehicles

Please continue to be aware of the need to keep all company vehicles clean and maintained. Clean all trash, dirt and debris out daily and wash the exterior when needed. Keep watch of the mileage and service sticker and contact Jason when service time is close. It is important always to drive safely. You represent the entire company and besides, you want to go home safely at the end of the day!

When ordering from the field, please order by email. Phone calls are great, but should always be followed by email, no matter how small the order. I keep all emails according to job and this provides a record for tracking. For everything from tools to lumber, please always copy Brian Woods, Steve Fayak and myself.

For all equipment and vehicle requests please copy Jason Rein and myself. You would be amazed at how much this system helps us help you!

Waste

Please also have your subs be responsible in disposing of their own paints, chemicals, and hazardous waste. Anything that comes back to the yard costs money to dispose of and we will need to job cost everything.

FLEET CORNER

I have received numerous inquiries from company drivers and fellow LCC employees regarding tires and essential maintenance. Did you know that every vehicle manufactured since 2003 features a standardized decal situated on the driver’s door? This decal serves as a valuable resource by providing information about the correct tire size and the recommended inflation levels for all tires on the vehicle, including the spare.

It is important to note that some vehicles may require different tire pressures and sizes for the front and rear tires, necessitating adjustments when rotating them. To address these common concerns and assist individuals, particularly those with young drivers, I am considering organizing an essential vehicle maintenance class. The class would be conducted outside working hours, on my own time, covering crucial topics such as changing a spare tire, checking fluids, and essential tire maintenance.

If you or anyone you know would benefit from participating in this class, please get in touch with me. Together, we can coordinate a suitable date and time to ensure everyone has an opportunity to enhance their knowledge of vehicle maintenance. Your interest and active engagement are greatly appreciated.

Scott Gary YARD

Jason Rein FLEET

Marcella Garofalo MARKETING

Excellence in Construction Awards

Geir Phillips, Senior Project Manager stood out as he was awarded the prestigious Project Manager of the Year accolade. With his exceptional leadership, meticulous planning, and unwavering commitment to excellence, Geir has successfully managed and delivered complex construction projects that have significantly impacted the San Diego community. He helps lead Lusardi Academy and is integral to the Lusardi recruiting team.

Marcella Garofalo, Marketing Manager was recognized as a runner-up for the Young Professional of the Year award, a testament to her dedication to the construction industry. Her innovative thinking, strong work ethic, and remarkable achievements have positioned her as a rising star within the San Diego construction community.

As a finalist for the Excellence in Construction Awards, Del Dios Academy of Arts & Sciences showcased an unwavering dedication to construction practices. Although we didn’t secure the top spot, our remarkable project left an indelible mark on the industry. The projects and individuals, alongside other deserving winners, continue to drive us to set new benchmarks for excellence in the construction industry. With our commitment to unparalleled standards and a relentless pursuit of innovation, we aim to inspire and shape the future of construction.

The Excellence in Construction Awards presented by the ABC San Diego Chapter is a prestigious event that recognizes outstanding achievements in the construction industry.

On May 4th, professionals from various industry sectors, including architects, contractors, engineers, and suppliers celebrated excellence in craftsmanship, innovation, and project management. The awards highlight the remarkable projects that have positively impacted the San Diego community, showcasing the region's commitment to high-quality construction practices. With categories ranging from residential and commercial to infrastructure and sustainability, the Excellence in Construction Awards showcase the breadth and diversity of talent within the San Diego construction industry. This event serves as a platform to honor the hard work, dedication, and expertise of individuals and organizations that continually push the boundaries of excellence in construction.

Geir Phillips Accepting Award from ABC National President and Local San Diego Chapter President.

Matt Wile, Geir Phillips, Marcella Garofalo, Justin Davis

Del Dios Academy of Arts & Sciences

Alex Gutierrez, Lusardi Carpenter Foreman, was selected to participate in the 2023 Associated Builders and Contractors (ABC) Craft Championship in Orlando, Florida. Learn more about Alex: lusardi.com/abccraft-championships/

National Craft Championships

All Summer

July

August

September

October

November

December

Calendar of Events

Surf and Swim Boot Camp Cycling

Padres Pedal Reunion Ride 7/22

Lusardi Team Event TBD

Wellness Week 8/7 - 8/11

Labor Day BBQ 9/1

CAF 10/22

Questions? Reach out to Marcella or Heidi

Lusardi Team Event TBD

Lusardi Golf Scramble 10/28

Halloween 10/31

Thanksgiving Toy Drive + Luncheon 11/17

Holiday Fun!

San Diego ABC Team

CHP TRACY

“CHP Tracy is a another job that we can be very proud of. It demonstrated Lusardi’s ability to take on and deliver complex projects, interfacing with multiple government agencies, and overcoming significant challenges while maintaining positive client relationships and delivering a quality project that exceeds expectations. This facility will serve the CHP and the community for decades to come. It was fantastic to be a part of a project with such a meaningful impact on CHP and its communities.”

AARON MCCOY Project Manager

Project Completion!

The California Highway Patrol, Tracy Facility is a new Area Office encompassing several buildings and site enhancements. The project includes an Administrative Office Building; an Auto Service Building; a combined Radio Vault and Storage Building; and Building D, a combined Storage, Vehicle Evidence Storage and Waste, and Recycling Building. Additionally, there is a Radio Antenna Tower and a Covered Fueling Island. The site improvements comprise a CHP secure parking lot with Solar PV Shade Canopies, emergency back-up generator, a public parking lot, on-site walkways, stormwater treatment areas, frontage improvements with sidewalks, and two drive entrance exits. The 31,300 SF building was built using CMU and is certified LEED Silver.

Building A comprises administrative offices, a dispatch area, a briefing room, an issue room, a staff break room, a public lobby, a conference room, and a locker room. Building B includes an office area, auto service bays, tool storage, service equipment area, parts storage, new and used tire storage, fluids storage, air compressor, and waste oil storage. Building C comprises a radio communications vault that serves as a communication hub for the agency. The 140’ high freestanding communications tower is connected to the Radio Vault via a wave-guide bridge. The Building also has an attached Secure Storage Room. Building D comprises a covered open-air waste and recycling bin storage area, a covered and enclosed Secure Vehicle Evidence Storage Area and additional Secure Storage Rooms.

The new CHP area office serves as the headquarters for officers patrolling the Tracy Triangle area and southwestern San Joaquin County, extending down to the Stanislaus County line and west to Alameda County.

Location: Tracy, CA

Architect: COAR Architects

Project Manager: Aaron McCoy

Superintendent: Ismael Guzman

A cutting-edge automotive dealership and service center, Mossy – Chrysler Dodge

Ram and Jeep in Chula Vista, comprised a total area of 54,400 square feet and 283,500 square feet of related site enhancements. The structure was built using a combination of CMU and steel, finished with ACM panels, and incorporates unique dealership finishes. In addition, the project includes a showroom, parts area, storage space, and customer service building.

Location: Chula Vista, CA

Architect: CCBG Architects

Project Manager: Randy Cordova

Superintendent: Trevor Burnett

Superintendent: Josh Baroni

MOSSY – CHRYSLER DODGE RAM AND JEEP

“The CDR+J Dealership project was a testament to a great client and valued team working together towards a common goal. The Mossys, CCBG Architects, and Lusardi started the preconstruction process amid the market volatility and were able to complete the project on budget and schedule. The trust and communication that the team shared fueled the project’s success!”

Randy Cordova Project Manager

MERCEDES-BENZ HOUSE OF IMPORTS

The House of Imports in Buena Park, Orange County, boasts a brand-new three-story luxury auto dealership for MercedesBenz enthusiasts. The facility spans approximately 242,000 SF and features a service center, car wash, detail bays, and elevated parking decks. The structure comprises a combination of pre-cast concrete, CMU, tilt-up concrete, and structural steel, with the most extensive panel weighing over 331,000 pounds and the most considerable footing measuring 390 cubic yards. A wall system made of aluminum louvers/fins, designed for architectural purposes, extends along the frontage facing the freeway.

SPARC+ Architecture Studios designed the project, which required a 7-acre update of the entire site to meet fire code, grading, stormwater, and utility requirements. The original site was constructed 50 years ago, and despite several development projects since then, unresolved issues came to light during the planning phase for this project.

Location: Buena Park, CA

Architect: Sparc+

Project Manager: Geir Phillips

Superintendent: Lance Rieman

Superintendent: Chris Wood

AUDI CALABASAS

The Audi Calabasas project involved enhancing and redesigning the current showroom, demolishing the existing service drive and service bays, constructing a new service drive with expanded auto service bays, adding rooftop inventory parking, reconfiguring the site plan by relocating the western driveway entrance, and improving site lighting and landscape aesthetics. Throughout the construction process, the entire dealership, including the sales team, service riders area, and service shop, remained operational.

The project presented significant logistical challenges due to the site layout. To address this, the construction was divided into three phases for the site work, two phases for the interior/shell remodeling, and two phases for the construction of the service shop and parking deck. Coordinating each stage seamlessly with the next posed considerable challenges.

Location: Calabasas

Architect: Whitfield Associates

Project Manager: Rob Linnett

Superintendent: Steve Broyles

“A tough job with demanding clients. Success of the project was a result of a great construction team and unwavering perseverance by all parties involved.”

Robert Linnett Project Manager

Brownfield Tech Park Kato Road Industrial

Los Patrones Phase II

Butterfield Tech Park

Del Dios Academy Phase II

Huntwood Zephyr

Scripps Ranch Tech Park

on March 8th, acknowledging the tremendous power of women. Amidst the solid structures and metallic framework, we take a moment to honor the women who contribute to the construction industry. Their unwavering dedication and tireless work do not go unnoticed. Together, we are building a brighter future, establishing the foundations that empower future generations.

WIC Week™, also known as Women in Construction Week™, originated in 1998 by the National Association of Women in Construction (NAWIC). Over the years, this event has grown and expanded, celebrating and promoting the crucial role of women in the construction industry.

“The theme for this year, ‘Many Paths, One Mission,’ profoundly resonates with me as I witness the diverse journeys women have embarked upon to achieve the same objective: strengthening and amplifying the success of women in the construction industry.” -Marcella, Marketing Manager

As we honored International Women’s Day and Women in Construction Week, we came together for a special jobsite tour at the Double Peak Kindergarten building in San Marcos. This gathering aimed to recognize and express gratitude for the remarkable contributions of women, both on a global scale and within the construction industry. We extend our sincere appreciation to Trevor and Tyler for providing the Lusardi Ladies with an exclusive behind-the-scenes tour of the site.

CONSTRUCTION ECONOMICS

CONSTRUCTION ECONOMICS

ENR’s 20-city average cost indexes, wages and materials prices. Historical data for ENR’s 20 cities can be found at ENR.com/economics

The dollar value of total construction put-in-place showed a monthly escalation rate of +1.2% in April, according to the U.S. Dept. of Commerce’s seasonally adjusted data. On a yearly basis, total construction was 7.2% higher than in April 2022. Yearly private sector construction rose 4.9%, while public work was up 16.5%. Nonresidential construction in the private market rose 31.2% over the past year, while public nonresidential work rose 16.8%.

Non-Seasonally Adjusted Total Construction

Plywood prices fell 0.2% in April, following a decrease of 0.9% in March, according to the Bureau of Labor Statistics’producer price index. The annual index sits at -23.9%. Prices for the most popular species of 2x4s are down 23.5% from June 2022’s level, while monthly prices experienced a 0.2% decrease, according to ENR’s data. ENR’s 20-city average monthly price for plyform fell 1% in June, while yearly prices are down 3.6%.

Plywood prices fell 0.2% in April, following a decrease of 0.9% in March, according to the Bureau of Labor Statistics’producer price index. The annual index sits at -23.9%. Prices for the most popular species of 2x4s are down 23.5% from June 2022’s level, while monthly prices experienced a 0.2% decrease, according to ENR’s data. ENR’s 20-city average monthly price for plyform fell 1% in June, while yearly prices are down 3.6%.

ENR’s Materials Prices For June 2023

ENR’s Materials Prices For

INCREASED 5.9% FOR THE MONTH, AND ARE UP 29% FOR THE YEAR.

Pedroza Family

Leslie & Novak Family

Hess Family

Brad, Austin, Gabe, & Marcella Golfing

Pugsley Family

Erickson Family

Austin Rieman and Girlfriend Megan Los Patrones Panel Lift

Luke & Steve

Lily-Rose & Uncle Chris Wood

Muramoto Family

Willingham Family

Burke Family

New Yard Crew! Scott, Dale & Chris

Halsey Family

Heidi, Amanda, Rose & Jess

Russ, Jose & Xavier

Phillips Family

William & Kris Fitzpatrick Family

Davis Family Rose

Mitch, German, Luke & Austin

Lance the man!