DUTRA 2018 YEAR IN REVIEW

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2018

dutragroup.com

INDUSTRY LEADER IN AGGREGATES, DREDGING, AND MARINE CONSTRUCTION SERVICES

INSIDE THIS ISSUE

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Port Authority: Channeling A New Era For Canaveral

The Dutra Group Supports Student Journeys With The Beavers

The Dutra Group Recognized With 2018 Safety Award by Dredging Contractors of America


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2018

FAMILY OWNED FOR FOUR GENERATIONS

CAPACITY. CAPABILITY. CHARACTER. OUR MISSION Dutra's mission is to strengthen our nation's maritime infrastructure and improve our waterways through sustainable dredging, marine construction, and aggregate manufacturing. The "Three Cs" of Dutra — Capacity, Capability, and Character —reflect our commitment to the many public and private customers we work hard for, to the safety and growth of our team, and to our core values that have guided us since 1904.

OUR CORE VALUES SAFETY Safety is our top priority. No operation proceeds until safety has been fully addressed. The safety and health of all our employees is not only critical to our success, but it also reflects the collective commitment of every employee each and every day. INTEGRITY We define integrity as acting with honesty, transparency, and trustworthiness in all aspects of our internal and external relationships. It embodies how we treat each other as employees, how we treat our customers, and how we represent ourselves to the subcontractors that work by our side.

COMMUNITY Dutra is committed to contributing to the communities we serve in a sustainable and environmentally friendly way. Dutra will always operate in the safest manner possible for the surrounding community. We believe a sense of community starts from within and is evident in the strong bond we have among our employees. RELATIONSHIPS Our relationships mean the world to us. It is critical that we treat our partners with integrity and honesty, holding ourselves accountable for our actions, decisions, and policies. Every day we strive to develop and foster a positive relationship with our employees, customers, suppliers, and subcontractors.

QUALITY Dutra has many experienced and talented people who strive every day to be responsive and deliver the highest quality product possible. We take great pride in our consistency and effectiveness because we know that good business is about delivering high value to our customers.

See more: www.dutragroup.com/history.html


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A MESSAGE FROM OUR CEO The past year was very successful on many fronts for Dutra, but what stands out most was our excellent safety record in 2018. This achievement is a tribute to the collaboration across the entire organization to uphold a safety-first culture for all. I look for your ongoing efforts to champion this ethic as we strive to make this company an even safer place to work. As we move into 2019, we are seeing trends that signal growth and demand for our expertise in the industry. Following the most recent election cycle, state leaders are committed to maintaining vital upgrades and seeking to repair decayed infrastructure throughout California. This focus on critical reinforcement means more work for all of us here in the state. Similarly, on a national level, the current administration is committed to improving our nation’s waterways, ports, harbors, and beaches. One of our most valued clients, the U.S. Army Corps of Engineers, is embarking on one of its largest capital expenditure projects in recent memory. While this enormous increase in funding will bring many opportunities, it will also require a new level of discipline and focus while executing work in our core business. Our company is currently in the process of upgrading and building new assets to meet these increased demands; we are also continuing to research the development of additional assets that will improve our productivity and performance in the future. Integrity is at the core of how we do business, both in service to our clients and within our operations. Through training and educating our future leaders, and consistently providing a highquality product, our strength is rooted in our people and our values. The new CLIMB program for employee development has assisted in bolstering our future leadership at all levels, in all divisions and departments. With our focus on successorship combined with the talent and energy of our employees, I am very proud to say that we are continuing to build an organization that will succeed far into the future. Let us be proud and united in our efforts, and may 2019 be a prosperous and safe year for all of us. Best,

Bill T. Dutra, President/Chief Executive Officer

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A GLIMPSE AHEAD — Here is a glimpse at some projects Dutra has on the horizon for 2019 US NAVAL STATION KINGS BAY Florida / $32.8m / U.S. Army Corp of Engineers, Jacksonville BOSTON HARBOR DEEPENING Massachusetts / $122m / New England District WOODWARD ISLAND BRIDGE California / $16.5m / County of San Joaquin WOODWARD ISLAND LEVEE MAINTENANCE & REHABILITATION California / $6.7m / Woodward Island Rec. Dist. 2072 CALCASIEU RIVER & PASS HOPPER RENTAL Louisiana / $4.5m / U.S. Army Corp of Engineers, New Orleans JACKSONVILLE HARBOR DEEPENING Florida / $22.8m / U.S. Army Corp of Engineers, Jacksonville SEAL BEACH MAINTENANCE DREDGING California / $2.2m / U.S. Army Corp of Engineers, Los Angeles

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A MESSAGE FROM OUR COO 2018 - Another Outstanding Year for The Dutra Group. I am honored to report that this past year has, once again, brought great success and accomplishments to our company. These successes reach far beyond financial results, which were outstanding, but also to a variety of important and key elements that form the fabric of our organization. Operationally, all segments successfully executed our projects with exceptional results. Particularly noteworthy is the Delaware Deepening Project, where the combination of the Stuyvesant and the Paula Lee crews and management overcame severe weather and sea conditions, and unexpected soil conditions, to successfully complete a very challenging project. Also noteworthy are the combined efforts across segments, led by the Delta construction team, with its very successful completion of the Chevron Mallard Farms Project. The quarry team, Bay Area dredging team, and the other construction teams also successfully brought home a variety of projects and important tasks. Of course, some of these accomplishments could not have been made without the outstanding contributions of our support teams, namely the equipment, fabrication, purchasing and safety departments. Of course, none of these accomplishments could have occurred without the true commitment and support of our most valuable asset — our employees. Your commitment to our guiding principles and core values, and your resiliency in overcoming our many challenges has further defined the great company that we are. Your character and capability will continue to position The Dutra Group for great future successes. I am most proud of what may be our greatest success for 2018 - our exceptional performance in safety throughout the company. Safety is The Dutra Group’s number one core value. Our goal this year was to ensure that each and every employee considers safety to be the highest priority at all times. It is clear from our excellent safety record this year that this re-emphasis has indeed taken hold. Statistically, our collective efforts have resulted in a 19 percent reduction in our EMR and a 67 percent reduction in our OSHA Incident Rate. These results are truly outstanding. Our pursuit of excellence in safety is never-ending, your continued commitment to this core value will further propel our success in the future. I look forward to another exciting year in 2019, to our continued commitment to quality service to our nation’s water infrastructure, and to the continued safety for all our employees. Best,

Harry Stewart, Chief Operating Officer


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DREDGING Strategically headquartered in the San Francisco Bay, Dutra Dredging performs environmentally-conscientious dredging for both the public and private sectors across the entire Pacific Coast region. As a leader in the industry with over 100 years in the dredging business, Dutra employs the latest technologies, operates under comprehensive regulatory oversight, and adheres to strict compliance reporting requirements. • • • • • • • •

Maintenance dredging and navigation improvements in ports, harbors, shipping channels, and inland waterways One of the largest fleets on the Pacific Coast Environmental habitat restoration Contaminated sediment remediation Infrastructure demolition Submerged and upland slope protection Underwater foundations and footings Wetlands construction and reclamation

With a staff of tenured engineers and deep experience across a breadth of projects, Dutra outpaces the competition by offering a broad range of cost-effective removal and disposal options including: • • • •

Split hull dump and hopper scow open water disposal Re-handling of spoils to upland locations Hydraulic sediment pump-off and placement Dewatering & off-haul

MARINE CONSTRUCTION Established in 1972, Dutra Construction is a full-service construction company that provides skilled expertise in creating and maintaining marine infrastructures in the west, from the Rocky Mountains to the Pacific Rim. • • • • • • • •

Wharf and dock construction Marine rock & material placement Marina construction Pile driving & installation Environmental remediation of wetlands Bridge & pier construction Demolition Levee construction, repair & maintenance • Mooring systems • Outfalls and pipelines

MATERIALS Dutra Materials is a key supplier of aggregate in Northern California. With a waterside quarry strategically located in San Rafael, marine barge-loading equipment, and material distribution centers scattered throughout the San Francisco Bay and Sacramento Delta, Dutra is the most cost-effective transporter of quality aggregate in the region. The San Rafael Rock Quarry has been an active mine for over 100 years. A highly skilled staff of geologists, mining and civil engineers enables Dutra Materials to manufacture a wide variety of products, most of which are available for land or waterside distribution. • • • • • • •

Rip rap Base rock Drain rock Asphalt concrete Recycled aggregates Fill material Permeable material

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FEATURED PROJECT

PORT AUTHORITY: CHANNELING A NEW ERA FOR CANAVERAL

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or those who have never cruised the Atlantic along Florida's central coast, Canaveral is a name often associated with space infamy, a place world-renowned for rocket launches and historic NASA missions. But in the region known as the Space Coast, just south of the cape’s jutting shoreline, sits Port Canaveral – a dynamic cruise, cargo, and naval harbor, and the second largest cruise port in the world. In 2018, Port Canaveral celebrated its 65th anniversary as a commercial seaport with fanfare, and revealed a 30-year master plan for expansion. It was The Dutra Group’s foundational work there–a two-year, $30 million dredging project to deepen and widen the main channel–that served as the linchpin for advancing the Port’s strategic vision. Wrapped in 2016, Dutra’s dredging contribution was a noteworthy upgrade to maritime infrastructure, considered valuable for both the state and the nation. »

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Before Dutra came on board, Port Canaveral was already considered a world-class hub for travel, trade, and commerce. However, the main channel’s topography prevented the Port from hosting larger cruise and cargo ships, a hurdle to long-term growth. In collaboration with the U.S. Army Corps of Engineers, the Port’s design engineering team from CH2M Hill turned to Dutra’s Dredging division to create the necessary clearance for big-boat business. In early 2014, Dutra's prized derrick barge (D.B.) Paula Lee, transited the Panama Canal to Florida, and a team of 20 dredge division workers began the extensive task of removing material 44 feet deep.

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“We had to account for the rough seasons and how to parse out work inside the harbor versus offshore... It was necessary preparation to minimize risk and equipment damage, and to keep our guys safe.” - Anthony Germain, Dutra Project Manager


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The two-year job was immense; along with several tug boats and two dump scows to dispose material at designated sites offshore, the team ultimately removed a massive 3.5 million cubic yards of sediment. “It was a huge undertaking,” recalls Project Manager Anthony Germain who oversees Dutra’s East Coast operations. “For one mechanical dredge, that’s a lot of material, especially for a deepening project with hard digging involved.” Marine dredging projects are notoriously complex and host a wealth of compounding factors that can impact job productivity. In Port Canaveral, Dutra was working in areas ranging from five miles offshore to  »


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CANAVERAL BY THE NUMBERS

$30M

Budget for a

24/7

Operation with

25

Personnel

1240

Scow loads disposing of

3.1M cu. yd.

of material in the ODMDS (Ocean Dredged Material Disposal Site)

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nearly three miles in-shore. Success on the job required steadfast attention to sediment consistency, adherence to strict environmental mandates, and planning for changeable weather conditions in hurricane territory. “In early planning we had to account for the rough seasons and how to parse out work inside the harbor versus offshore, where we were handling more material, ” adds Germain. “It was necessary preparation to minimize risk and equipment damage, and to keep our guys safe.” As Project Manager Ray Waters can attest, the versatility of D.B. Paula Lee’s unique four-anchor system is one of Dutra’s greatest assets for maintaining progress in uncertain conditions. While most dredges are held static to the seafloor, the Paula Lee is designed with taught-line anchors to ride the tide with ease, a feat of smart engineering and complemented by a nimble team that knows how to manage an active waterway. It was this expertise that enabled Dutra’s thumbprint on other key expansion projects in the Port. “We showcased our abilities to other subcontractors, which resulted in helping on projects like widening berths to accommodate bigger ships at dock and excavating material for upland disposal so rip-rap could be placed to armor the

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shoreline,” said Waters. “It extended our timeline onsite, but our value was definitely recognized.” Environmental considerations and sustainable operations are necessary for any marine dredging project. Working in a diverse ecosystem like Florida, the needs are more intense. All work was performed under specific conditions of environmental permits issued by the U.S. Environmental Protection Agency, U.S. Army Corps of Engineers, and Florida Department of Environmental Protection. Dutra also hired two Marine Endangered Species Observers to oversee daily operations, who were tasked with scanning the jobsite for manatees and whales, and testing water clarity three times a day for clearance to work. Then there were the turtles.

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“We had to outfit the rig with a custom lighting system and specific cast restrictions so we wouldn’t disrupt turtle nesting season,” recalls Waters. “It’s details like that which make a project extremely memorable.” Certainly memorable and also enduring; Dutra created the necessary gateway to host the world’s largest cruise and bulk cargo ships, which resulted in a massive return on investment for the Port. In a recent press release celebrating its landmark year, Port Canaveral boasted an increase of its annual cruise passengers to 4.6 million, including historic profits for all aspect of its operations and expansion into commercial rocket cargo. If there were ever a time to visit the Space Coast, now would be it.


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FEATURED PROJECT

TIDAL TENACITY: THE MALLARD FARMS PIPELINE REPLACEMENT PROJECT

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he Suisun Marsh in Solano County, California is the largest brackish water marsh on the West Coast. In the summer of 2018, The Dutra Group’s Ryan Abood was onsite managing a project for Chevron unlike any other in both setting and in scope. It was the height of windy season in the Delta river region at the time. As Abood recalls he had the frequent habit of glancing northeast from his station in Honker Bay to watch the spinning windmills on the Montezuma ridgeline. »

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MALLARD FARMS BY THE NUMBERS

$17.5M Budget for

40,000

Man Hours with

0

Lost Time Injuries

4

Crane Barges

9,000 ft.

Pipe Suspended over Honker Bay

175

Crane Barge Support Shifts

200

Piles Driven & Removed

1.4M gal

Potable Water by Barge

4

Crew Boats

120 days

Providing Crewboat

“I would look at the horizon hoping for those turbines to slow down,” recalls Abood. “The wind blew constantly at 30 miles per hour which would create really large waves in the bay – just crewing in and out to the jobsite everyday was an adventure.” Blustery weather was just one of many challenges during the Mallard Farms Pipeline Replacement Project. In collaboration with lead contractor ARB Construction, the multifaceted undertaking for The Dutra Group required endurance, inventive capability and surgical-like precision to help replace a 9,000-foot section of pipeline integral to Chevron’s Bay Area Products Line system. From early planning to conclusion, agencies such as The U.S. Army Corps of Engineers, California State Lands Commission, California Department of Fish and Wildlife, and the

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“The wind blew constantly at 30 miles per hour which would create really large waves in the bay – just crewing in and out to the jobsite everyday was an adventure.” - Ryan Abood, Dutra Project Manager

U.S. Coast Guard provided close watch with regulatory and environmental oversight. In the marine construction industry, there exists no standard operating procedure (SOP) for replacing nearly 1.7 miles of gas pipeline beneath protected wetlands. The new steel pipe would be installed using a process called horizontal directional drilling from two entry points – one in set in Honker Bay, and the other to the north in Grizzly Island. Adjacent to the defunct section, a fresh pilot hole would be bored underground where new pipeline would be pulled through to connect at either end. As the marine support contractor, Dutra provided the entire framework to carry out the project’s methodical process in careful, sequential order: first, construct temporary work platforms at both end points to support the 85,000 pound drill rigs; next, assemble new pipeline in 3,000-foot sections and create a support pile system to suspend them over Honker Bay. Lastly, Dutra would help pull the new pipeline through, secure it, and breakdown the jobsite without a trace. To construct the work areas, more than 20,000 tons of rock material was transported by barge from the Dutra Materials quarry. 200-foot pipe sections were first assembled at the Dutra Yard in Rio Vista and then transported down the Sacramento River by barge to Honker Bay. After transport, the sections were welded together on a splicing barge to prepare for staging. Dutra also provided barges for massive amounts of potable water; 1.4 million of gallons were ultimately required for the sensitive drill procedure. »


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The most remarkable and defining characteristic of the Mallard Farms project, however, was its singular staging process. Midway through the project, engineers abandoned an original float system due to the bay’s windy conditions. With only three weeks to spare, Dutra’s Fabrication shop got to work on a custom, triple roller system to suspend and glide three, 3,000 foot-long sections of pipeline set side-by-side in the middle of Honker Bay. From a birds-eye view, the system resembled a train track extending into the water from the marsh’s edge. As part of the San Francisco Bay tidal estuary, the Suisun Marsh is subject to tidal ebb and flood. During the pile installation process in Honker Bay, crews worked at odd hours with special equipment to navigate the

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"In the face of unforeseen delays, a rapidly expanding scope, and forging new methods among shifting tides, the Mallard Farms project is a premier case study that showcases The Dutra Group's resourcefulness, agility, and reliability." - Harry Stewart, Dutra Chief Operations Officer


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difficult and muddy shallows. “At low tide, the bay would recede to three or four feet deep,” said Abood. “Our crews would have to work tide shifts during low tide cycles to prevent getting stuck out there for hours, waiting to crew out at the end of the shift.” After the arduous task of setting up the new staging system, the project’s grand finale was the pipe installation process: For 56 continuous hours, all four crane barges and crews worked around the clock to pullback the new pipeline in place, stopping only twice to weld the final sections together. Lastly, Dutra divers and barges helped tie in the new pipeline into the original line. The final stage of critical, bypass surgery was complete. In the end, teamwork, tenacity and the

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masterful interplay of Dutra’s core capabilities enabled the effective completion of a $17 million project without incident. Chief Operating Officer Harry Stewart adds that the project is a preeminent example of the company's strengths at work. "In the face of unforeseen delays, a rapidly expanding scope, and forging new methods among shifting tides, the Mallard Farms project is a premier case study that showcases The Dutra Group's resourcefulness, agility, and reliability."


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EQUIPMENT UPDATE

A WORD FROM EQUIPMENT

“Safety, service, and support” is the credo amongst The Dutra Group Equipment personnel: At all our yards, facilities or field sites near and far, we strive to maintain a safe workplace for employees across all divisions. But we can’t do it alone – safe operations and maximizing equipment utilization is a collaborative effort between multiple departments. We are grateful for the alliance with Safety, Operations, Accounting, Job Cost, Purchasing, Risk, Legal, and Corporate as key partners working toward a common goal.

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he 2018 dredging dry-dock schedule included major work on the Sarah Reed and getting her into USCG Subchapter M compliance. We also had the Columbia up in Mobile, Alabama for comprehensive hull and machinery repair along with paint. Here in California, the Beaver was dry-docked for extensive hull repairs and paint.

Team performance was notable this year: Consolidated crews from Equipment, Dredging and Safety performed a major rebuild/repair on our DB-24 in Rio Vista, California. That team worked over 10,000 man-hours without a recordable incident. In addition, the Rio Vista Yard worked 2,706 days, and the Fab Shop worked 482 days, both without lost time or recordable incidents. The dredge Stuyvesant saw duties on both coasts this year; Equipment assisted field personnel in repairs at project sites and during transits. Prior to departing the West Coast to transit the Panama Canal, The Stuyvesant will undergo intensive repair and head back to East Coast operations. This year, Dutra Materials saw the replacement of its crushing and screening


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“Thanks to the collective effort put forward from all divisions, 'safety, service, and support' thrived in our operations throughout the year.” - Steve Lee, Dutra Equipment Manager

equipment with Powerscreen jaws and cones. With the Decker Island acquisition, the department gained resource capacity and equipment. Additionally, we are pleased to announce the building of a new 6,000cy dump scow currently under construction in Indiana that will be delivered mid-year 2019. Dutra Fabrication also played an essential role in our support offerings and worked on many projects this year, namely Mallard Farms, Woodward Island, and the DB-24. Thanks to the collective effort put forward from all divisions, “safety, service, and support” thrived in our operations throughout the year, with marked gains to set the bar for a successful 2019. See more: www.dutragroup.com/fleet.html & www.dutragroup.com/fabrication.html


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Project Highlights The Dutra Group brings strong commitment, competitiveness, and development to our valued clients— anywhere and everywhere.

CAPACITY. CAPABILITY. CHARACTER.

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Oakland, California Client: COE - (SF) District

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Columbia River, Oregon C l i e n t : C O E - Po r t l a n d D i s t r i c t


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3

San Francisco, CA C l i e n t : Po r t o f S a n Fra n c i s c o

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Boston, MA C l i e n t : C O E - B o s to n ( M A ) D i s t r i c t

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6

7

Woodward Island, CA

Sacramento, CA

Oakland, CA

C l i e n t : C o u n ty o f S a n J o a q u i n

C l i e n t : A EC O M - C C S

C l i e n t : H aw k D e ve l o p m e n t

PROJECT DETAILS: 1. Oakland Harbor O&M Dredging Oakland, California Client: U.S. Army Corps of Engineers San Francisco District Service: Maintenance Dredging Derrick Barge #24 2. West Coast Hopper Dredging Columbia River, Oregon Client: U.S. Army Corps of Engineers Portland District Service: Maintenance Dredging Dredge Stuyvesant

3. SF Pier 39 Dredging San Francisco, California Client: Port of San Francisco Service: Maintenance Dredging Derrick Barge #24 4. Boston Harbor Deepening Boston, Massachusetts Client: U.S. Army Corps of Engineers Boston District Service: Harbor Deepening Dredge Paula Lee

5. Woodward Island Bridge San Joaquin Delta, California Client: County of San Joaquin Service: Bridge Construction Crane Barge Kelso Derrick Barge #5 6. Southport Levy Maintenance Sacramento, California Client: AECOM Service: Levee Maintenance Crane Barge #8

7. Shoreline Park – Brooklyn Basin Oakland, California Client: Hawk Development Service: Pile Driving & Pier Construction M4100 Crane and Kelso Barge


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DUTRA MUSEUM

DUTRA MUSEUM FOUNDATION UPDATE

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n Monday, August 27, 2018, the Dutra Museum Foundation held their 4th Annual Golf Tournament Fundraiser at the Marin Country Club in Novato, California. The purpose of the annual event is to raise funds for The Dutra Group's higher education scholarships distributed through the Portuguese Historical Society and Rio Vista High School. In addition, Dutra Museum selected North Marin Community Services (NMCS) as their partner charity.

A HUGE THANK YOU TO OUR SPONSORS! TITLE SPONSOR The Dutra Group DINNER SPONSOR Cathay Bank

GOLD SPONSORS Flyers Energy Kjeldsen, Sinnock & Neudeck Liberty Mutual McPherson Crane & Rigging

PLATINUM SPONSOR Carson Wealth Clifton Larson Allen, LLC Ghilotti Construction Montezuma Wetlands Syblon Reid Mission Critical Lira's Supermarket Ritchie Bros. Auctioneers North Bay Petroleum Silverado Contractors Petersen Cat Pendleton Group Pacific Tugboat Service

SILVER SPONSORS Cota, Cole & Huber, LLP FD Thomas Front Porch Realty Gahagan & Bryant Associates, Inc. Nova Group SBC Global Concepts Underground Construction

BLOODY MARY BREAKFAST BAR Valero

CLOSEST TO THE PIN SPONSORS Lira's Supermarket Rasmussen Equipment Company

FIRST DRINK AT DINNER eTrac, Inc.

CLOSEST TO THE LINE SPONSOR FMI Corporation LONGEST DRIVE - WOMEN SPONSOR Oles Morrison Rinker & Baker

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On January 1, 2018, Novato Youth Center, a previous tournament donation recipient, merged with Novato Human Needs Center and became NMCS. Both organizations have served the community for decades, and the vision of the newly formed organization is to build a strong and healthy community for all. Much like the goal of The Dutra Group’s scholarships to extend "hope and opportunity," the mission of NMCS is to empower people of all ages to achieve success within a diverse community—at home, school, and at work. The organization provides life-enhancing programs and developmental experiences for their community to thrive including educational, enrichment, and support services at their two facilities in Novato. At one location, families access childcare, after-school programs, and family counseling services. The other location hosts additional services including access to an emergency food pantry, temporary rental assistance program, job seeking, financial planning, and immigration aid. Together the organization assists over 6,000 of Novato’s low-income children, adults, and seniors. Due to the huge success of the event, Dutra Museum Foundation was able to present a $10,000 donation check to the NMCS and increased scholarship funding by 28 percent. With the support of many sponsors, Dutra hosted an action-filled day on the course with several interactive tents. Chair massages, a corn hole competition, gambling hole, and chipping contest entertained guests throughout the day. For attending foodies, the event featured authentic tacos and gourmet pork sliders served on the course. Additional highlights included an Irish bagpiper and the voice talent of a Novato teen who sang the national anthem for the fourth consecutive year.

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Don’t miss our 5th annual tournament, which will be held on Monday, August 26, 2019, at Marin Country Club. We look forward to entertaining our golfers with new surprises in honor of the event’s first milestone year. If you would like more information about our 2019 tournament and the ways you can get involved, please send a note to Denise Dutra at deniseddm@yahoo.com. Thank you for all the continued support of the Dutra Museum Foundation.

ABOUT THE ORGANIZATIONS

North Marin Community Services helps more than 5,500 people annually through an array of services delivered by more than 60 highly qualified staff and 255 dedicated volunteers at our two locations. Visit: northmarincs.org

The Dutra Museum Foundation is a non-profit 501(c)3 organization with a commitment to community support through funding higher education scholarships. See more: dutramuseum.org


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SAFETY UPDATE

DUTRA SAFETY HONORS 2018 HARVEY FREEMAN AWARD RECIPIENT, JOHN KRENECKI

The safety of our employees at The Dutra Group is one of our greatest responsibilities, and something we do not take lightly. At The Dutra Group’s annual meeting, the Safety Department announced the honor of the 2018 Harvey Freeman Award was granted to Site Safety Health Officer, John Krenecki.

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he Harvey Freeman Award is given to an employee who demonstrates exceptional qualities that would make Harvey proud: integrity, honesty, mutual respect and leadership. In addition, Harvey was proactive and open-minded in understanding that safety and production can, and should, exist together. A dedicated employee for more than 28 years, John Krenecki exemplified these qualities. In 2017, John helped us out a lot on the 19 sites with DWR. He brings a lot of experience and respect from working in the field all these years. He is very good at working and communicating with the boot’s on the ground crew. As he worked on the CB8 with younger crews he mentored them along as far as DSOPs and how to stay safe. He was

instrumental in keeping a great safety record on board the CB8! John has a strong desire and drive to foster the Dutra safety culture. He understands the importance of SSHO position and takes it very seriously. The Safety Leadership Team continued to meet in 2018, identifying issues, resolving conflicts and moving forward as one voice in continuing to improve the Dutra safety culture. More than 300 training episodes occurred this year, including the training of 33 potential SSHO/DSR representatives in February. We performed strategic safety "stand downs" to increase safety awareness and we restated to the entire company that safety is our No.1 Core Value. See more: www.dutragroup.com/safety.html


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INTERN UPDATE

RECRUITING TOP TALENT The Dutra Group has been hitting the road on a search for our next Summer Interns! Fall and Spring is a very busy season on college campuses with Career Fair events. With competition for young talent becoming more intense, career fairs are a great way to interact with emerging talent right on their own turf.

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his recruiting season, Human Resources Manager Patty Dutra Bruce has been attending various college fairs with another internal Project Engineer. Students want to know what they can expect from an internship with Dutra and having PEs be able to share their own first-hand experiences helped to drive interest about the company’s many opportunities. The goal of Dutra’s program is to provide first-hand experience on their heavy construction and dredging projects to teach students how to apply their college knowledge in the workplace. Each intern is assigned to a Project Engineer as their internal mentor which provides them an opportunity to lead and manage in ways that are not typically available. The goal of this assignment is to support our PE’s development with more management driven responsibility. The role of the PE is to serve as a point person to help guide and answer questions for our interns

MEET OUR 2018 INTERNS: Name: James McLaughlin Division: Equipment University: San Jose State Major: Mechanical Engineering

Name: Tanner Chesnut Division: Dredging University: Arizona State Major: Construction Management

throughout their initial training period. Each PE is required to provide their intern monthly status updates about the training and progress they have made. At the end of their term they conduct and give an official exit performance review. As part of the completion, interns are required to conduct an exit report to demonstrate the skills and knowledge they gain from their experience. Dutra strives to help students build their careers by providing quality internship opportunities. To learn more about Dutra’s internship program please visit our careers page. Our 2019 internship positions are seeking applications!

Name: Terence Grady Division: Dredging University: Eastern Washington Major: Mechanical Engineering

Name: Christopher Pedroni Division: Construction University: Arizona State Major: Construction Management

Name: Lucas Walker Division: Delta University: San Francisco State Major: Business Administration


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IN OUR COMMUNITY

SUPPORTING STUDENT JOURNEYS WITH THE BEAVERS 2018 was a busy year for Harry Stewart: In addition to leading each of Dutra’s Dredging, Construction and Quarry operations as president, the chief operating officer of The Dutra Group also volunteered his time mentoring the next generation of industry recruits with The Beavers, a heavy engineering construction association.

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ultiple times a year, The Beavers host “Student Day” and facilitate site visits to notable construction projects for college students in civil engineering and construction management. Held near schools where the association provides academic scholarships, the aim of the program is to engage and inspire students on the range of possibilities as they prepare for careers in the industry. Among that inspiration is access to senior-level guidance from executives like Harry. “Educational development is always topof-mind for us, and supporting the curiosity of aspiring young professionals is a key part of the journey,” said Harry, who sits on the Board of Directors of The Beavers. “Participating in programs that support student advancement is enriching and an important part of giving back to the industry.” Founded in 1955, the purpose of The Beavers is to promote goodwill and friendliness within the heavy engineering construction industry, and to support young individuals pursuing careers in the field. In 2018, three Student Day events showcased construction and engineering projects of different size, scope, and category: a $1.8

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“Participating in programs that support student advancement is enriching and an important part of giving back to the industry.” - Harry Stewart, Dutra Chief Operations Officer

billion design and build project of the Loop 202 South Mountain Freeway in Phoenix, Arizona; a $1.2 billion Mid-Coast Trolley project in the heart of San Diego; and a $112 million fish passage facility at Mud Mt. Dam near Mt. Rainer, Washington, commissioned by The U.S. Army Corps of Engineers. For each project, Student Day follows a similar format: The day begins with a briefing of the site to 50 – 100 students and a few accompanying faculty members. Depending on the project’s location, students attend from local colleges, which include Sacramento State, Chico State, and University of California, Berkeley and Davis; University of Arizona and Arizona State; San Diego State, Cal State Northridge, and University of California, San Diego; University of Washington, Washington State and Oregon State. After students arrive on location, the presenting construction firm provides a full overview of the project’s core elements, and its impact on local communities and state infrastructure. Next, students embark on a site tour with members of The Beavers who are executives in the construction industry. With safety precautions in place, students get the opportunity to get up-close and experience

how a large-scale construction project looks and feels. Afterward, the group discusses the site over lunch, where project leaders field questions and The Beavers address additional student inquires about the industry at large. “Industry professionals tend to tout the building of the project as the coolest part of what we do – but the whole procurement process leading up to the award of a contract can be very extensive, and students were eager to learn more,” said Harry. “In today’s climate, there is a high demand for entry-level field engineer positions, and estimating and project management roles. We discussed the skills necessary for students to develop, like business acumen, communication skills, and the evolution of surveying technologies and project management software.” With mentorship, experience, and opportunity readily available for students who hope to join the construction and engineering workforce, the sky is the limit. For more information on The Beavers, visit thebeavers.org.


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DUTRA CAREERS

THE DUTRA GROUP OFFERS A SOLID FOUNDATION FOR CAREER OPPORTUNITY AND GROWTH 1989

1989-1993 Deckhand Hired on with The Dutra Group as Deckhand on the Harry-B, Sarah Reed

FROM DECKHAND TO SUPERINTENDENT, DENNIS SALYERS EXEMPLIFIES SUCCESS AT THE DUTRA GROUP

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r. Salyers has over 26 years of operational and supervisory experience in marine construction, dredging, and related activities. As a Superintendent, Dennis oversees the planning and directing of numerous private, state and federal projects. His expertise incorporates his lengthy experience working and operating all of The Dutra Group's vessels as a deck engineer, deck operator, crane operator, and captain.

1993-1995 Captain Went to school and received Captains license. Served as Captain of the Harry B. Terri Lind doing various dredging and construction projects.

1995-1996 Boatman Phase 1 of the Oakland Deepening, Harbor was dredged to -42ft and material was taken to Sonoma wetlands and Oakland

1996-1998 Deck Engineer Paula Lee and Dredge Antone. Operator for Oakland Deepening.

1998-2002 Operator of the DB24 and Paula Lee

2002-2008 Captain of the DB24

2008-2018 Promoted to Superintendent

Representative Projects 2015 - PRESENT / 2010-2011 Larkspur Ferry Terminal Berths & Channel Maintenance Dredging 2015 Brisbane Marina Entrance Channel Maintenance Dredging 2011- 2015; 2006-2011 Port Of San Francisco Maintenance Dredging

“From my early days as a deckhand on the Tug Sarah Reed to now Dredging Superintendent of West Coast Operations, The Dutra Group has always supported and encouraged my growth in the company. ”

2014-2015 Redwood City Harbor Maintenance Dredging 2014 Richmond Inner Harbor Maintenance Dredging 2006-2010 Oakland Harbor Navigation Improvements, 50' Deepening Project Phase 3,

- Dennis Salyers, Dutra Superintendent

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2002

2002 Office Engineer in the Estimating Department Dutra HQ, San Rafael, CA

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2001 Mike graduated from UC Berkeley with a B.S., Civil & Environmental Engineering May 2004 Field Engineer South Beach Harbor / Pier 40 Redevelopment project San Francisco, CA

September 2004 Field Engineer Port of Oakland Berth 32-33 Extension JV with Manson Construction Oakland, CA

June 2005 Project Engineer Oakland Inner Harbor Turning Basin Phase 2 Alameda, CA

April 2006 Obtained Professional Engineers (PE) License in California

July 2006 Project Engineer Multiple DWR Emergency Levee Erosion Repair Projects Hood, CA

January 2007 Project Engineer Brannan Andrus Levee Maintenance District OL 84-99 Repair Sites Rio Vista, CA

January 2008 Assistant Project Engineer Bay Bridge East Span Seismic Retrofit Project JV with Traylor Brothers Oakland, CA

November 2008 Project Engineer Cabrillo Way Marina Rehabilitation JV with The Griffith Company San Pedro, CA

January 2009 Project Manager Aqualink Landing at Belmont Pier Long Beach, CA

November 2010 Assistant Project Manager San Francisco Marina West Harbor Renovation San Francisco, CA

January 2013 Project Manager Bay Bridge East Span Seismic Retrofit Project Oakland, CA

2014 - Present Received MBA in May 2014 while working full time Haas School of Business at UC Berkeley Assigned to the Estimating Department as Chief Estimator San Rafael, CA

2019

FOR DUTRA CHIEF ESTIMATOR MIKE EDDE, DUTRA IS FAMILY

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ike Edde considers himself an anomaly. As part of a generation of workers prone to job hopping or chasing the next best offer, by contrast Mike's entire career has been solely encompassed at The Dutra Group. Little did he know that when he first interviewed at Dutra 16 years ago, it would be the start of a life-long career. Mike recalls his first interview with Harry Stewart at the San Rafael Rock Quarry on a warm November day. They were chatting in Harry's office discussing Mike's resume and career ambitions when Harry suddenly said, “Let’s hop in my car and I'll show you what we do here at Dutra.” Harry drove the pair to the bottom of the quarry pit explaining the ins and outs of the quarry operations. He took Mike by the barge loading facility and explained the local demand for rip rap to maintain the shorelines and levees in the Delta. He explained Dutra’s marine construction and dredging divisions and their history working on major marine infrastructure projects. It was all Mike needed to see and hear to know that Dutra was different: they self-performed their projects, tackled unique challenges, and were always on the water. Mike knew right then and there he had found the place for him According to Mike, it has been a stable and fulfilling journey marked by new challenges, successes and increased responsibilities. "Sixteen years later, I am still excited by this business and inspired by the people who make The Dutra Group such a special place to work," says Mike. "What I find unique about the culture at Dutra is the strong sense of community, care, and respect the company has for all its employees and their families. The company has maintained a philosophy to build from within and create its future leaders, which has helped shape me into who I am today. For this, I will always be grateful."


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INVESTING IN OUR PEOPLE

THE CLIMB PROGRAM TAKES EMPLOYEES TO NEW HEIGHTS With a company culture steeped in enterprise and ingenuity, The Dutra Group recognizes that growth should never feel like an uphill endeavor to be ventured alone. With systems already in place to support professional advancement and education, Dutra sought to create a new, internal program as dynamic and diverse as its employees.

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n May 2017, the Human Resources department revealed The CLIMB program (Continuing Leadership Instruction for Managing Business), a highly specialized professional development series for employees ready to expand their skill sets – and mindsets. With guidance on the curriculum’s goals and strategic vision from CEO Bill Dutra and COO Harry Stewart, CLIMB is designed to enhance the leadership and business skills of select employees, and expose them to The Dutra Group’s unique ecosystem and operations. “The program is a significant commitment for employees who are ready to take on more responsibility within the organization,” said Patty Dutra, manager of Human Resources. “Participants are given the access and tools to understand all the divisions, departments, roles, and functions they otherwise wouldn’t have the opportunity to know deeply.” The first round of CLIMB participants included 36 select employees, split into two groups. For 18 months, the two teams would meet every six weeks for an offsite near Dutra headquarters in San Rafael, California. But CLIMB is not designed to be eight hours of lecture; in fact, the first meeting was a daylong, outdoor ropes course. Setting the tone for the program, the out-of-office experience emphasized teamwork and invited new pathways of communication.

“By design, the employees selected for CLIMB are diverse in age, experience and job function, which enables new perspectives and the opportunity to learn from each other” - Rick Reese, Senior Consultant at FMI

Featuring exercises, case studies, field trips, and activities for hands-on problem solving, CLIMB is a learn-bydoing experience that gives its participants the tools and ideas to be more effective leaders. Rick Reese, a senior consultant at management-consulting firm FMI, facilitated session topics like Customer Relations Management, Communications Skills, Financial Acumen, Negotiation Skills, and Strategic Thinking. In parallel to Mr. Reese’s topics, Dutra department heads led deep-dive sessions with a focus on each of Dutra’s divisions – from Corporate Services and Accounting to Quarry, Dredging and Construction Operations.


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“I have a new appreciation of different departments. Learning the details behind Corporate Services and Accounting were helpful to expand my perspective and understanding.” - Ross Campbell, Engineer in Dutra Quarry Operations

“By design, the employees selected for CLIMB are diverse in age, experience and job function, which enables new perspectives and the opportunity to learn from each other,” said Rick, who helped Dutra develop the program’s details. “Those already in leadership positions are pushed to think more broadly, and for budding management, it’s an introduction to subject-matter they’ve never been exposed to before.” Whether taking a field trip for a job site evaluation or running a mock-bid process,

CLIMB participants are challenged to problem-solve, troubleshoot, and share opinions on how to improve processes or operations. An employee in accounting can learn about quarry operations, or can better understand what goes into Dutra’s construction projects. As a result, participants gain shared consciousness and empathy on the issues and challenges faced by each division. They also gain insight into how Dutra’s cross-functional teams can collaborate on successful business development. “I have a new appreciation of different departments that I didn’t before,” says Ross Campbell, a quarry engineer who graduated from the program this fall. “Learning the details behind Corporate Services and

Accounting were helpful to expand my perspective and understanding.” As a high-level, internal professional development program, employees for CLIMB are selected by invitation only. While participation is voluntary, employees are asked to sign a commitment letter and are not permitted to miss more than two sessions. The next round will begin in March 2019 as an accelerated program designed for completion by December.


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HR UPDATE

HEALTH AND WELLNESS

As any Human Resources executive will attest, it is a well-known fact that providing a healthy workplace environment improves employee satisfaction and productivity. Focusing on employee wellbeing not only makes a happier workforce, it helps reduce costs related to absenteeism, turnover, workers' compensation, and medical claims.

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t The Dutra Group we continually seek to provide value and support employees in new ways to make this company a great place to work. But there is more to an organization than its systems and benefits package: Dutra Group has a long, proud history of being a company that exhibits a “culture that cares.” Whether its providing weekly meals for our hard-working employees, sending groceries to a worker who is out sick, or visiting a colleague in the hospital post-surgery, this culture of care begins with CEO Bill Dutra. Bill’s earnest concern and compassion for each of his employees is the guiding sentiment that informs how we approach our entire wellbeing practice. To be on the forefront of our employees’ health needs, the company created a Benefits Committee. Led by the Human Resources department, the committee consists of a small group of employees with varied backgrounds and medical plan designations. Each year the committee is responsible for administering an annual Benefits Survey to determine how well the company’s benefit plans are meeting the needs of our workforce. This survey is an important tool that creates a culture of feedback and gives our employees a platform to voice their opinions. The results have led to a variety of medical plan enhancements which include lower cost options, adding orthodontia, and enhanced dental and vision. In an effort to support at-work health and enhance our wellness offering, the company responded to employee requests for more ergonomic workstations. In addition to installing stand-up desks, Dutra extended a Wellness Equipment Reimbursement Program for the option to create an active workstation. Many employees designed desks to host walking treadmills, stair steppers, and cycling equipment. In addition to workstation upgrades, the company also hosts a free gym available to employees that is open daily. The gym includes a treadmill, recumbent bike, stair stepper, free weights, resistance bands, and other equipment to provide a range of activity options.

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On January 1, 2018, Dutra launched a new Flexible Spending and Dependent Care account plan to provide employees more value towards health and family care expenses. The voluntary plan is a way for employees to reduce their income taxes by putting pre-tax dollars into a special account. The flexible spending funds can be used to pay healthcare and dental costs that are not covered by insurance, such as co-pays, deductibles, prescriptions, and any out-of-pocket expenses. The dependent care account is an option for employees to put aside pre-tax dollars to pay for services such as preschool, summer day camp, before or after school programs, and child or adult daycare. As a family-owned company, Dutra knows that a productive work life is an extension of support at home, especially during critical times. The

“As Dutra continues to grow and evolve as a multi-faceted business, so will the myriad of ways we will seek to support the employee journey at every step of the way." - Patty Dutra Bruce, Dutra Human Resources

company’s Employee Assistance Plan (EAP) is an assessment, short-term counseling, and referral service designed to provide our employees and their families with assistance in managing concerns. In the unfortunate event of a tragedy, it is reassuring to know that there is a system in place to provide helpful guidance. EAP is a valuable resource offered at no charge that offers support and information during difficult times, as well as consultation on day-to-day worries. As Dutra continues to grow and evolve as a multi-faceted business, so will the myriad of ways we will seek to support the employee journey at every step of the way. To learn more about the benefits of working at The Dutra Group and to explore open career opportunities, visit the Opportunities section on our homepage at dutragroup.com.


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THE DUTRA GROUP EMPLOYEE AWARDS & MILESTONES

THANK YOU FOR YOUR DEDICATION AND SERVICE

2018 TENURE AWARDS

35

YEARS

Todd Gilbert

30

YEARS

Chris Peterson

25

YEARS

Andrew Quintana

20

YEARS

Will Wallgren

15

YEARS

Patty Dutra Bruce Michael Edde James Hagood

“I am proud of being with the Dutra family for 36 years. As the Senior Captain on the Tug Sarah Reed, I appreciate being a part of the Dutra vision and am thankful for the relationships that I have built.” - Todd Gilbert, 35 Years

10

YEARS

Ross Campbell Maureen Houghtailing Javier Medina James Morrison Bryan O’Sullivan Shannon Pasquan

5

YEARS

Alan Blanchard Sharon Gardiner Ryan Hand Garrett Lim Larissa Perry Jason Tse Nicolas Radde Vernon Sutton Kay Vazquez Richard Winkler

2018

“I grew up in a dredging family. Working for Dutra gave me the opportunity to travel from Europe to Hawaii - Alaska to Panama. Consequently, I was able to meet, work with and learn from many talented individuals and characters. The opportunity for personal growth within Dutra has immensely enriched my life and my family’s life.” - Chris Peterson, 30 Years


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IN MEMORIAM

MARVIN LARSON

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1934-2018

arvin was born December 12, 1934 and celebrated 55 years of marriage with his beautiful wife, Loretta. Marvin passed away September 10, 2018. The couple had three children – Erick Larson age 53 who lives outside of Nashville, TN, – Christopher Larson, age 49 of Reno, NV, and Kirsten Gluba, age 49 of Chico, CA. They have a grandson Jordan Gluba, age 18 who is the son of Kirsten Gluba, and is a student at City College in San Francisco. Marvin always had a passion for working with rock products. He started out early as an underwater demolition expert for the Coast Guard. He was attached to the Navy and the Marine Corp as well. His career brought him to the Basalt/Dillingham Company in the early 80’s. During these years he and Loretta lived and worked at the San Rafael Rock Quarry. The Dutra organization met Marvin and worked with him when Dutra had a distributorship for selling rock out of the SRRQ by barge. By mid-80’s, Marvin was very instrumental in promoting The Dutra Group's capabilities to purchase the SRRQ. In 1986, with a combination of senior management in Basalt, and Marvin’s good words for Dutra, Dutra became the owner of the SRRQ. Marvin then came to work for Dutra as a marketing and sales manager. In his early years he was instrumental with all of the facets of manufacturing rock product out of San Rafael. He was also a good public relations man with the neighborhood, and had a very personable talent in selling our rock products to the local contractors. At that time, he brought along a wonderful following of great people. Lad Stevenson was a project engineer with great potential in our industry, and later moved on to a great leadership role at Syar Industries. Also, Dave Hornsby was a land manager for entitlements, and was a close friend, that moved on to Vulcan Materials until retirement. Marvin also had a host of other close friends; Chuck Jeffries, Doc Bogart and his brother Jon Blegen. In Marvin’s later years he went to work for Bauman Landscaping, and was instrumental in setting up an innovative asphalt plant in the Richmond area. He moved to the foothills, and continued even in his retirement years to work and consult with many different contractors in the aggregate and asphalt world. He was always very ambitious, always had a can-do attitude, and always carried a great smile. He will be missed. We at The Dutra Group were very gratified for his support in giving us the opportunity to become the successor of the SRRQ. Let this be a time to remember the great contribution that he made to our industry.

IN MEMORIAM

PAULA LEE DUTRA

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1944-2018

t is with deepest regret that we announce the passing of Paula Lee Dutra on June 8, 2018. Born Paula Lee Gregg on September 9, 1944 to Paul and Lee Gregg, she was married to Bill T. Dutra from 1962 to 1986. Paula was a founder and partner with Bill in the formation of the Dutra Construction Company in 1972, which grew to what is known as The Dutra Group today. She remained an owner of the company through 1987. After she left the company, she dedicated her energy to her daughters, her grandchildren, and her dog, Sugar. Paula was instrumental in the early years of the Dutra company. She worked on many of the company’s political and charitable functions, and she found great pride in fostering the personal well-being of our employees and their families. She christened many of the Dutra vessels, but her pride was the Dredge Paula Lee, christened in 1982. The Paula Lee is still in service, and it played a major role in saving and rehabilitating many of the Delta islands that were subject to severe damage and loss in the early and late 1980’s. The Dredge Paula Lee has proved its usefulness from the San Francisco Bay tributaries, to Alaska and the Pacific Rim of Hawaii, and recently along the eastern seaboard with many dredging and harbor projects. Paula loved to spend hours in her garden tending to her roses while listening to music (Jimmy Buffet, Brooks and Dunn, and Hawaiian were among her favorites). She loved to travel and often found herself at Kaanapali Beach in Maui or cruising the open seas. She also enjoyed the time that she spent heading bluebirds and campfire groups for each one of her daughters. Her personality, smile, and laughter were larger than life and will be remembered by many. Paula Lee Dutra is the mother of three beautiful daughters, Denise Dutra Maloney, married to Sean Maloney, Aimi Dutra Krause, married to John Krause, and Patty Dutra Bruce, married to Erik Bruce. All three daughters are working at The Dutra Group today. She is the proud grandmother of Nicholas and Samantha Maurer, Chase, Grady, and Alexia Krause, Nikolai and William Bruce, stepgranddaughter Eliana Bruce, and step-grandchildren, Will, Ceara, and Taggart Maloney.


THE DUTRA GROUP Corporate Office 2350 Kerner Blvd., Ste. 200 San Rafael, CA 94901

Tel. (415) 258-6876 Fax (415) 258-9714

The Dutra Group recognized as one of America's safest dredging companies by Dredging Contractors of America

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CA’s Council for Dredging and Marine Construction Safety (CDMCS) held a series of meetings last November in Washington, D.C., including the Pipeline Task Force Meeting and its Q4 Meeting. The vision of CDMCS is to create a 100 percent injury-free workplace for the dredging and marine construction industry. In

collaboration with the U.S. Army Corps of Engineers as partners, the mission of CDMCS is to raise the industry standard on safety, protect workers, resolve disputes, and build a safety-first culture. CDMCS also held its First Annual Leadership in Safety Awards Dinner last November where The Dutra Group was honored to be recognized as one of America's safest dredging companies. Safety award recipients in attendance included The Dutra Group's very own Cliff Hunt and Howard Copper. Great job guys! You Rock! The safety of our employees at Dutra Group is one of our greatest responsibilities, and we do not take it lightly. Our Safety Leadership Team meets regularly to discuss top-level initiatives and results, with a focus on consensus building and communication throughout the company. See more: www.dutragroup.com/safety.html

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