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President’s Message   Well, it’s finally here. For years, myself and past presidents of the UTCA have written about the need to fully fund the Transportation Trust Fund. We have developed numerous studies outlining the infrastructure needs and the funding required to meet those needs. We have met with legislators and governors. We have participated in public education campaigns and talked with anyone who would listen about the severe negative consequences of not fully funding the Transportation Trust Fund. I never thought we would have reached this point. All of the money going into the fund, as well as over $400 million of general fund money, is dedicated to pay off all of the outstanding debt. There is no money for projects in State Fiscal Year 2017 starting July 1st and there is no ability to borrow additional money. It is unfathomable that the State’s leadership have allowed this to happen. Our infrastructure is collapsing, destroying our cars and hurting our economic recovery. Municipalities cannot plan on fixing their streets and bridges and businesses like ours cannot plan on any new work from the Department of Transportation or the local governments who had expected local aid grants. There are literally only days left to act and it is incumbent upon all of us to contact our state representatives and demand that they do the right thing for the people of New Jersey.   UTCA CEO Bob Briant serves as the Chairman of the Clean Water Construction Coalition which is a national group of 30 construction associations and LIUNA which advocates for increases in federal funding for drinking water and waste water construction projects. Piggybacking onto the annual ARTBA Fly-In in Washington, DC various members of the CWCC met to discuss funding issues and then meet with their congressional representatives to push for increases in funding and the passage of a clean water trust fund. NJ construction industry representatives, UTCA Board Members, UTCA Staff and myself participated in the meeting of the Clean Water Construction Coalition and visited our elected representatives on Capitol Hill. In Trenton we are also pushing for increases in funding and held a press conference on May 19th to use the occurrence of National Infrastructure Week to highlight the needs to address our drinking water and waste water problems.

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I want to take a moment to thank all of you for doing all of the things necessary to keep our Association strong. It is only through a strong united effort that we are able to continue our legislative and regulatory successes. 2016 has been a strong year. A record number of members and their families attended the Executive Seminar to Casa de Campo. Our scholarship funds are healthy from events like the Clay Shoot and Golf Tournament, which sold out quickly. The exhibit booths have also sold out for the annual convention. Our membership meeting attendance is growing but we need more members to attend. The membership meetings are a great networking opportunity as well as a place to hear the latest project, legislative and regulatory updates. You have recently received the 2016 edition of the UTCA Membership Directory. I want to thank all of the sponsors whose advertisements make the publication possible. Within the Directory is a listing of all of the UTCA committees and the committee membership. If you would like to serve on a committee please contact the Association staff.   In this issue of the Utility and Transportation Contractor there are feature articles on Ransome CAT celebrating 100 years of business and a look at a micro-tunnel project completed by the JR Cruz Company. Finally, like all of you, I personally benefited over the years from the advice and leadership and friendship that Pete Getchell gave to everyone in the association. His passing is a tragedy for his friends and family and a great loss to the industry and everyone who knew him. Pete will never be forgotten and is sorely missed.

Best regards,

Tino Garcia Utility and Transportation Contractor, JUNE 2016


JUNE 2016

Contents

Volume XLI, Number 3

Published Bimonthly During 2016 Office Address: 1670 Route 34 North Farmingdale, NJ 07727 Mailing Address: PO Box 728 Allenwood, NJ 08720 (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo

Features 5 12 29 38 63 65

Ransome CAT Celebrating 100 Years Of Success JRCRUZ Reconstruction Of Bergen Basin Sewer Long Term Care Insurance Tribute To Pete Getchell In Effect! The New Electronic Logging Devices Rule NJ Infrastructure Problems

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Editorial Contributors: Anthony Attanasio Dennis Hart Dan Neville Advertising Manager: Helene Nasdeo Photographer: Image Up Cover Photo: Image Up Production/Graphics: Lauren Hagan Helene Nasdeo Circulation: Helene Nasdeo

Departments 2 16 25 49 53 56 60

President’s Message Legislative News Legal Dig Financial Overview The Pipeline Accounting Corner Safety Perspective

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Printed By: American Plus Printers Affiliations: ARTBA Clean Water Construction Coalition Water Infrastructure Network UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, Farmingdale, NJ 07727. Periodical postage paid at Farmingdale, NJ and additional mailing offices. POSTMASTER: Send address changes to UTILITY AND TRANSPORTATION CONTRACTOR, PO Box 728, Allenwood, NJ 08720.

Cover

Pictured on the cover is Kristin Bromley Fitzgerald, President of Ransome CAT which is celebrating 100 years in business.

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Cover Story

Ransome CAT, CELEBRATING 100 YEARS OF FAMILY AND BUSINESS SUCCESS

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By: Anthony Attanasio, Executive Director

hen you represent the fourth generation to run a family business, that alone is something to celebrate. But this year is no ordinary year for Kristin Bromley Fitzgerald, President of Ransome CAT (also known as Giles & Ransome). For this is the centennial anniversary of the business her great-grandfather founded, and that incredible accomplishment is something we all should celebrate. Kristin is a dynamic leader who has a reverent appreciation for her family’s history and its impact on the building of the Delaware and Lehigh Valleys. She also has a keen eye for the future and is successfully taking her company forward into the next century. Kristin’s appreciation for the past and the history of Ransome CAT is the real guiding light for how she runs the company. “I always knew I wanted to be a part of the family business,” says Fitzgerald. “It was a legacy I was proud of and wanted to be a part of. I loved the business, the employees and the CAT brand.”   Her great-grandfather Percy Allan Ransome, along with his partner Arthur Giles, founded Giles and Ransome Inc. in 1916. In 1932, the business became part of the Caterpillar family. Giles and Ransome

originally began manufacturing and selling concrete equipment in Philadelphia and Kristin is especially proud of all of the historical milestones that her family’s company helped support in the growth of our nation’s first capital. She even sent an email to all of her employees that matched up the company’s milestones with Philly’s. Ransome CAT sold equipment to the contractors who built the Pennsylvania Turnpike, Walt Whitman Bridge, I-95, Veterans Stadium, Resorts (the first casino in At-

From left to right: J. Dawson Ransome - he left his position as VP of Sales at Giles & Ransome to form Ransome Airlines, which grew into the world’s largest commuter airline until it’s sale to Pan Am. P. Allan Ransome, Jr. - he served as President of Giles & Ransome during a period of explosive growth in the Philadelphia market. Ernest L. Ransome, III - he served as Chairman of Giles & Ransome during the transition of the company to the third generation.

lantic City), Lincoln Financial Field and countless skyscrapers, homes and businesses. Ransome CAT provided, serviced and maintained the equipment that literally built the greater Philadelphia region.   The next generation of Ransomes not only grew the company’s core business, but even branched off into several other very exciting endeavors. Kristin’s Great Uncle, J. Dawson Ransome, founded Ransome Airlines which was headquartered in Old Giles & Ransome facility on Hunting Park Ave. in Philadelphia, PA. The neon Northeast Philadelphia. Ransome Airlines grew to ultimately sign is currently atop the Bensalem, PA Headquarters.

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expand and that expansion continues today through generation after generation. In 1916 the company had one full time employee, in 2016 that number has grown to 508. They began with one office and now operate in 9 different locations. As previously mentioned, the company began with a service territory of Philadelphia. Today, Ransome CAT is headquartered in Bensalem, PA and is the exclusive Caterpillar dealer for all of Southern New Jersey, Northern Delaware and Southeastern Pennsylvania. Kristin and the entire Ransome CAT team look at their territory and know that for 100 years and counting they have succeeded in building relationships and partnerships that resulted in the success of their customers.   Ransome CAT now has three separate divisions with an extremely diverse customer base, in the private and public sectors, serving firms Main Construction A&D Shop in Bensalem, PA.

become the world’s largest commuter airline until 1986 when it was acquired by Pan American World Airways.   Kristin’s father, Wayne Bromley, is another great story of attaining the American dream. Wayne worked four jobs to put himself through college. In 1977, Wayne joined the company going to work for his father-in law Ernest Ransome III. He literally started at the bottom before rising to become the company’s President. He began inspecting undercarriages and then worked through many different divisions of the company. His father-in-law intended to test his son-in-law’s mettle. In 1990, Wayne began to purchase the shares of other Ransome family members and continued on in the tradition of excellent customer service by believing the customer’s success was Ransome CAT’s success.   Kristin is a 2001 graduate of Ithaca College. Upon graduation she immediately went to work in the family business. Kristin said that there is no requirement or urging for family members to work for the business. Everyone is given a shot to work for the company if they choose, but success is not guaranteed. Like many successful company leaders, Kristin did not start at the top of her company but worked in many of its divisions before earning her position as President. Upon joining Ransome CAT, Kristin started as a Rental Power Sales Representative renting AC units, large generator sets, compressors and chillers in Delaware and New Jersey. In 2003 she became a member of the marketing group as an Assistant Marketing Manager. From 2004-2008 Kristin worked with Ransome Rents in Atlantic City, first as Rental Coordinator and then as the Branch Manager. In 2008 she returned to the main office in Bensalem and became General Sales Manager for Ransome Engine, prior to being promoted to President of Engine Sales in 2010. In 2013 Kristin was chosen as the next President of Ransome CAT and has proudly and successfully served in that role ever since. The partnership with Caterpillar in 1932 led Ransome CAT to quickly

Front of Giles & Ransome’s Headquarters in Bensalem, PA. 6

Used Equipment lot in Bensalem, PA.

active in all phases of heavy, highway, site, utility, marine and environmental remediation construction. The company not only sells equipment, but has a very robust rental division as well. Ransome CAT is also seeing tremendous growth in its electric power generation and marine industries service lines. The former is helping power such varied customers as casinos, hospitals, universities and many more. The marine division is taking advantage of the company’s location along the Eastern seaboard and is becoming a big player in the fishing industry and in beach replenishment projects.   Kristin’s focus on the future revolves around being nimble and embracing change. She has led the efforts to work with new technology and become a more diverse and advanced company. Kristin’s company is now integrating GPS technology into new equipment while retrofitting older machines. The usage of GPS technology in equipment helps their customers analyze and improve performance. Greater efficiency leads to greater profits and Kristin believes continuing to stay ahead of the rapid advancements in technology is the path to mutual success. “We are always improving our technical capability to increase speed, turnaround, and ultimately profitability for our customers” says Kristin.   Kristin and her husband Doug Fitzgerald are raising their two boys, Clark (6) and Wayne (4) in the Philadelphia suburbs of Southern New Jersey. While it is still to be determined whether her boys will choose the same path their mother has chosen, Kristin’s vision for the future is clear. “We continue to build on past success, seek to evolve, and want to stay two steps ahead of our customers in order to help them be more successful. We will continue to live by the company’s corporate vision of the last 100 years to “Be the Best!".

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Featured Article

JRCRUZ’S BERGEN BASIN SEWER RECONSTRUCTION PROJECT By: Anthony Attanasio, Executive Director

JRCRUZ is a company which represents the third gen-

The project goals specifically include: - Attain NYSDEC water quality standards - Reduce CSO discharges into the Bergen Basin by 67 MG/YR - Improve water quality in Jamaica Bay - Maximize the use of existing facilities by increasing the flow to the Jamaica Waste Water Treatment Plant - Have the new system only operate in wet weather - Decrease pollutant loading - Reduce floatables and odors in the receiving waters.

eration of the Cruz family to operate successfully in the infrastructure construction industry. Led by Evaristo (Evarett) Cruz, Jr., a member of the UTCA Board of Directors, JRCRUZ is known for its high quality work in wastewater, water supply, transportation and general construction. However, the company is especially proud of its reputation as one of the industry’s leading companies in the field of microtunneling. That reputation, and the skills that built it, are currently being put to the test on the New York City Department of Environmental Protection’s Bergen Basin Sewer ReconMatthew Cruz, Evarett’s son, is the Project Manager for struction and CSO Improvement Project. this project. Matt began his career at JRCRUZ as an intern   The New York State Department of Environmental Conservation (NYSDEC) placed New York City under a con- at the age of 17. He worked part time while going to school sent order to reduce Combined Sewer Overflow (CSO) discharges into Jamaica Bay and its tributaries. Currently, CSO discharges into the Bergen Basin are creating environmental, health and safety concerns. The existing twin 36-inch sewers under the Belt Parkway create a bottleneck which result in the CSO to both Bergen Basin and Jamaica Bay. New York City DEP recognized that there was additional capacity at the Jamaica Waste Water Treatment Plant and set out to direct more wet weather flow to that destination. This project consists of the construction of a new interceptor consisting of one 54-inch pipe parallel to, and twin 36-inch pipes across, the Belt Parkway at 150th Avenue. The new sewer will then connect to an existing 72-inch sewer at the intersection of 150th Avenue and 126th Street. The JRCRUZ Project Team.

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and handled timesheets and material orders. After college he moved into permits, payments and eventually moved into construction management. He has now risen to the project management level and leads a highly skilled team that from day one sought to deliver the most efficient project possible for the project owner and NY taxpayers.   From square one, the JRCRUZ team identified cost and time saving measures through Value Engineering (VE). The VE process saved the DEP more than $1.5 million and produced a better and safer project. The project originally called for one 48-inch pipe, but VE produced the 2 36-inch pipe approach. This allowed the project to avoid clipping an existing 42-inch pipe saving tremendous time and effort. The VE also eliminated 6 months of disruption to the Belt Parkway which would have required significant lane closures and safety concerns due to a temporary bridge that would have been necessary. The Belt Parkway is one of the most congested roadways in America and could ill afford lengthy traffic disruptions. The introduction of microtunneling produced a less disruptive process than an open cut excavation would have and was the lower cost alternative. The original engineer’s estimate for this project was $35 million. Thanks to JRCRUZ’s adjustments in construction methods the project costs were kept under $20 million which greatly pleased the NYCDEP.   The project is currently under construction. It was bid in March of 2014 and JRCRUZ broke ground in August of 2014. The estimated completion date is January of 2017.

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The JRCRUZ Microtunnel Boring System.

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Legislative News

FEDERAL & STATE UPDATE By: Anthony Attanasio, Executive Director   Last year, our immediate past President, Scott Lattimer, used the imagery of Lucy pulling the football from Charlie Brown as a metaphor for what it felt like trying to advocate for the renewal of the Transportation Trust Fund (TTF). More than a year later, with less than two months until the fund completely runs out of cash, it is hard to believe we are still waiting for action from our State’s leaders to renew the fund. While UTCA continues to be a lead advocate in educating our elected officials on the dire crisis of the fund, there is still no legislation, let alone an agreement to speak of at the time this article is being written. UTCA CEO Bob Briant and Executive Director Anthony Attanasio continue to crisscross the State holding dozens of meetings every month with legislative and political leaders. They say you can lead a horse to water but you can’t make it drink. That is clearly the case with the TTF. Governor Christie is insisting that the legislature should come up with a plan that must include tax fairness (cuts in unrelated taxes elsewhere in the State budget) and he will then decide whether to sign the package he is presented. While we admire the Governor’s desire to see taxes reduced on the most overtaxed state in the country, time is running out to renew the fund. Legislative leaders continue to discuss the size of a potential program, what taxes would fund the new program, and which taxes they are willing to cut in order to appease the Governor’s call for tax fairness. It did not help matters when it was revealed in May that the Governor’s revenue projections for FY 16 and FY 17 were a combined $1.1 billion short of their original estimates. This complicates matters when one is considering tax cuts that would further reduce revenue to the State’s coffers. UTCA, along with the other members of the ForwardNJ coalition will continue to advocate for a long term, robust and sustainable renewal of the TTF. I encourage you to contact the Governor’s office and your legislative representatives and 16

implore them to take action on this issue before it is too late.   When folks ask me how things are going, I tell them other than TTF life is great. As advocates, there is only so much we can do to spur action on the TTF. That requires political leadership and courage from our elected officials. In many other legislative and political matters UTCA continues to enjoy great success.   In May, UTCA saw A2863, its legislation regarding fairness in the application of apprentice programs advance out of the Assembly Labor Committee. This bill requires every contract subject to State prevailing wage requirements to require each worker employed under the contract to be enrolled in, or have completed, a registered apprenticeship, unless the contractor or subcontractor certifies that the worker is paid not less than the journeyworker wage rate. Under the bill, a “registered apprenticeship program” is an apprenticeship program which is registered with and approved by the United States Department of Labor and which provides each trainee with combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade and meets the program performance standards of enrollment and graduation under 29 C.F.R. Part 29, section 29.6. The language in this bill was born of a compromise reached between industry advocates and the NJ Building Trades. This compromise has reached the Governor’s desk before and was even signed into law as a part of last year’s Water Infrastructure Protection Act, a bill UTCA championed and carried over the finish line in the State Senate. This bill would solve what has been a contentious issue in the past in a fair manner for all parties. This was recognized by the Assembly Labor Committee when it was voted out of committee with an 8-0-1 vote. It now heads to the full Assembly for consideration. The Senate version of the bill, S2173, is sponsored by industry ally Senator Paul Utility and Transportation Contractor, JUNE 2016


Sarlo (D-36). Thanks go out to our friends at the NJ Building and Construction Trades Council, ACCNJ and many others for a true team effort to support this legislation at the committee level.   UTCA attended a successful American Road and Transportation Builders Association (ARTBA) Washington D.C. Fly-In on May 9-11. Meetings were held with several Congressional offices where UTCA Board members and staff advocated for both transportation and water/sewer funding. The UTCA delegation met in person with long time industry ally Congressman Frank LoBiondo (R-2) and UTCA’s new friend and industry advocate Congressman Tom MacArthur (R-3) to discuss critical issues facing our industry.   UTCA also recently hosted several very successful fundraisers for elected officials who support our industry. Events were held for Congressmen LoBiondo and MacArthur in recognition for their hard work to pass the F.A.S.T. Act. In addition, UTCA hosted events for NJ Senate President Steve Sweeney (D-3) and Assemblyman Troy Singleton (D-7). Both are passionate advocates for the TTF renewal, and Assemblyman Singleton is the prime sponsor of A2863 and several other critical pieces of legislation important to the industry. Thanks to those of you who participated in these events especially our friends at ACECNJ who joined with UTCA to make all of these events so successful.

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PLEASE CONSIDER SUPPORTING UTCA’S CONSTRUCTORS FOR GOOD GOVERNMENT PAC   UTCA continues to be the leading voice in Trenton and Washington D.C. for the construction industry. Whether it is providing expert testimony before business and legislative groups or positively effecting the legislative process, UTCA stands alone in its record of achievement for our industry. This success can only be made possible by your support of the Association and more importantly with your support of the industry’s PAC: Constructors for Good Government. Please consider making a contribution in 2016 as UTCA plans to be very active in the upcoming legislative session and a robust PAC only strengthens our voice. Thank you for your continued support.

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Legal Dig

NEW JERSEY’S PUBLIC WORKS BOND ACT, TRUST FUND ACT, & MUNICIPAL MECHANIC’S LIEN LAW: RECOVERY UNDER ONE DOES NOT PRECLUDE RECOVERY UNDER ANOTHER By Paul T. Fader, Esq., Association Legal Counsel

  Contractors and subcontractors are afforded three statutory forms of security for obtaining payment for the value of labor or materials furnished in connection with public works contracts pursuant to the Public Works Bond Act, N.J.S.A. 2A:44-143; the Trust Fund Act, N.J.S.A. 2A:44-148; and Municipal Mechanic’s Lien Law, N.J.S.A. 2A:44-125 (“MMLL”). The Public Works Bond Act, N.J.S.A. 2A:44-143, requires the general contractor for a public agency contracting public works projects to furnish a bond in order to ensure payment for the performance of labor and supply of materials. The Trust Fund Act, N.J.S.A. 2A:44-148, directs that when payments are made to a general contractor, those sums constitute a trust in favor of unpaid materialman and laborers. The trust then attaches to monies paid by the public agency to the hands of the general contractor. The MMLL, N.J.S.A. 2A:44-125, protects an unpaid subcontractor by enabling it to claim against monies due to the general contractor payable by the public agency. A recent decision by the New Jersey Appellate Division reiterates that these three statutes should be read cumulatively and that recovery under one does not preclude recovery under any of the others.   In an unpublished Appellate Division decision, Vincent Pools, Inc. v. APS Contractors, Inc. (Docket Nos. A-2670-13T3, A2688-13T3, decided March 18, 2016), a subcontractor, Vincent Pools, Inc. (“Vincent”), initiated a lawsuit to collect the balance due for work performed on behalf of the general contractor, APS Contractors, Inc. (“APS”), in connection with the installation of plaster work on a municipal pool project in Jersey City. After Vincent completed performance, Jersey City contended that the quality of the plaster was defective and demanded that APS remove Utility and Transportation Contractor, JUNE 2016

and correct the work. APS refused and instead offered to acid wash the pool. Thereafter, Jersey City terminated the contract with APS. Jersey City asserted that termination was appropriate and contended that it had satisfied its payment obligations to APS for the work completed on the pools prior to the termination. Nevertheless, Jersey City conceded that it did not pay APS for certain outstanding change order work requests and, in turn, APS withheld that amount from Vincent. Consequently, Vincent resorted to filing a municipal mechanic’s lien against the project funds due and owing from Jersey City to APS, and a lawsuit seeking, in relevant part, the enforcement of its municipal mechanic’s lien against Jersey City.   At trial, the jury rendered a verdict in favor of Vincent on the municipal mechanic’s lien claim in the amount of $150,498.92. The jury also awarded $502,966.00 to APS on its cross-claim against Jersey City. However, the trial judge reduced APS’ judgment to $352,467.00 in order to deduct the amount previously paid by Jersey City to APS for the portion of the contract due to Vincent.   On appeal, Jersey City contended that the trial court’s decision amounted to a double payment to APS for Vincent’s work because APS already received the full amount of the funds appropriated for the project. The Appellate Division noted that a lien filed under the MMLL is limited to the amount owed by the public agency to the general contractor at the time the lien is filed or what becomes due under the prime contract thereafter. The MMLL also pertains to the full amount of the public contract as the amount to which a lien may attach, and not just the amount that may be allocated to a specific portion of the contract. Therefore, the fact that Jersey City still owed funds to APS on the contract and the change orders 25


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pertaining to the entire project – not just the subcontract scope of work performed by Vincent – entitled Vincent to a lien against the funds remaining in the hands of Jersey City that were due and owing to APS at the time the lien was filed. The Appellate Division noted that Jersey City did not double pay for Vincent’s work since the trial court judge reduced APS’ award to offset the amount Jersey City previously paid in connection with the plastering services. Accordingly, the Appellate Division affirmed the trial court’s decision with respect to Vincent’s lien claim.   In addition, the Court noted that the availability of alternative remedies pursuant to a claim under another statute, such as the Trust Fund Act, did not negate Jersey City’s exposure under the MMLL. The ability to obtain relief pursuant to one statute does not preclude recovery under a different statute.   The holding in this case is important for general contractors and subcontractors who perform services or provide material in connection with public works contracts because it illustrates how filing a valid lien claim under the MMLL provides an avenue for protection when attempting to obtain payment. Public owners may not shield themselves from their obligations to subcontractors simply by asserting that payment for the subcontractor’s scope of work has already been made. Any funds remaining and owing to the general contractor for the project as a whole are subject to a valid lien claim. Contractors and subcontractors will be well served by familiarizing themselves with the applicable requirements under these three statutes. Written by Paul T. Fader, Esq. and Dorthy Koncur, Esq., Florio Perrucci Steinhardt & Fader, LLC.

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LONG TERM CARE INSURANCE

It’s All About Taking Control Of Your Future

By: Bob Damato, Partner, RDA Benefit Services What is Long Term Care?   Long Term Care is defined as the assistance needed when we are unable to care for ourselves, due to a chronic illness, physical injury, frailty or a cognitive (mental) impairment. Healthcare professionals and Medicare classify this type of care as custodial care, as compared to acute or rehabilitative care. Twenty years ago, most of us wouldn’t even think about protecting our major assets from long term health issues. But now that we are living longer, we need to consider what the future may hold.   The U.S Department of Health and Human Services confirmed that 7 out of 10 people over 65 will require some period of ongoing assistance at some point in their lives*. And the average length of time that people need long term care services is 2.4 years. Every year, the number of people needing these services is growing, since we are living longer. Currently, the cost for a single room in a quality nursing home is around $10,000 a year in New Jersey or New York**. And the costs are increasing about 5% every year. That means the costs in 20 years will be about $20,000/month***. Will your Group Health Insurance or Medicare pay for any of these services?   There is limited coverage for care under most insurance policies and through Medicare. So ask yourself—how will we pay for the rest of the care we need? Here are your options: 1. Do nothing at all. Depend on your spouse, your children or a few very good friends for this care-- that works for a few weeks, then what happens when you really need certified, long term care for many years? Utility and Transportation Contractor, JUNE 2016

2. Pay for LTC services from your savings or your retirement accounts--with after-tax dollars. 3. Utilize the Federal Medicaid system--after you have spent down your current assets to pay for these services. 4. Purchase an individual long term care insurance policy to allow yourself to stay in your own home and receive quality care. Long Term Care Insurance policies can be customized to meet your needs and your budget.   These policies can be customized, choosing a specific daily benefit amount and a length of time for care. You can also choose an elimination period, as well as include inflation protection, a shared care rider, waiver of premium rider, paid up survivor benefit rider and more. If both spouses enroll at the same time, there is always a spousal discount available for both policies. It is also important to know that premiums can be tax deductible and when you are receiving care, the benefits are tax-free.   Be sure to seriously consider Long Term Care Insurance as part of your retirement plan. For more information about Long Term Care Insurance and for a custom proposal, please contact RDA Benefit Services, LLC at 855-693-0772 or email ndamato@rdabenefits.com. *US Department of Health and Human Services, National Clearinghouse for Long Term Care Information, www.longtermcare.gov **John Hancock 2013 Cost of Care Survey ***Met Life Market Survey of Nursing Homes, Assisted Living Adult Day Services, November 2014 29


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PETER FRIEND EUGENE LEADER GETCHELL MENTOR A TRIBUTE TO HIS LIFE AND WORK

With the recent passing of Peter (“Pete”) Getchell, our industry and the company that he led for over twenty years, PKF-Mark III, Inc (“PKF”), has lost an iconic leader, and a strong and supportive voice. Pete grew up in Long Island, NY and went on to attain a civil engineering degree from Notre Dame in 1969. Upon graduation, his first job was with Chicago Bridge and Iron, where he entered and completed their engineering training program. Subsequently, he worked for other construction firms in the Pennsylvania and New Jersey area before starting with PKF as a Project Superintendent in 1981. As he rose through the ranks of PKF, he often led its largest bridge and highway projects, while at the same time demon-

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Pete Getchell is inducted as UTCA President by Steve Brawer on September 23rd, 1995 at the UTCA 30th Anniversary Convention

strating ever greater leadership potential. In 1992 and for the following 20 years, Pete served as PKF’s president and then CEO. While president at PKF, Pete led with an openness to new ideas, a commitment to self-perform critical work on our projects, and a dramatic belief in and loyalty to PKF’s employees. During his years of leadership, the company initiated—with great success— its own performance of, among others, electrical, foundations, and marine work. Pete also instituted and was a strong proponent of PKF’s leadership committee structure, as well as our CareerBuilder and Incentive Compensation structures. Pete was a firm believer in the need for his company and our industry to recruit, mentor, and promote next generation craftspersons and management, and to move them into responsible positions as they grow and learn. He also led PKF in the pursuit of a number of Utility and Transportation Contractor, JUNE 2016


PETER FRIEND EUGENE LEADER GETCHELL MENTOR A TRIBUTE TO HIS LIFE AND WORK

Pete’s love for his work and our industry was only exceeded by his love for his best friend and wife of 46 years, Catherine. They together enjoyed all of their animals and restoration of their farm in Bedminster, PA. In March, family and friends gathered to remember Pete in a celebration of his life, with many stories fondly told about his impact and legacy in our industry.

Pete Getchell presents the William Feather Memorial Award to his good friend, Ed Nyland, at the UTCA 30th Anniversary Convention

Along with his family, all of PKF and UTCA miss their friend, leader, mentor, and inspiration for so many years,

environmentally healthy initiatives, including a solar array at the company’s Ottsville equipment yard and the purchase of a significant percentage of hybrid vehicles. In later years, Pete was thrilled to drive an all-electric Tesla. During his tenure at PKF, Pete became a staunch leader in the construction industry. Pete was fully engaged with the New Jersey Utility and Transportation Contractors Association, serving as a board member from 1988 through 2014, and as its president from 1995 to 1996. In addition, Pete served as a board member of the American Road and Transportation Association, and recently was that association’s Contractors Division president. Pete was known within the UTCA for his passion for contracting and fair dealing and personally enjoyed the very enriching friendships that were spurred on by his involvement with the UTCA and ARTBA. 39

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Financial Overview

LOAN DOCUMENTS ARE SERIOUS BUSINESS! By: William J. Ruckert, Provident Bank

  Reading loan documents is an arduous, boring task that is often left to the attorneys and bankers to take care of. While respective counsel are primarily responsible for the drafting of documents, their efforts should not preclude business owners from reading them. Loan documents are vital tools that provide guidance to business owners in handling the company’s financing. They need to be clear and concise, but should also provide some flexibility for both the borrower and the bank.   The amount of paper dedicated to loan documents has grown precipitously over the years as borrowers and banks seek to protect themselves. The increasing amount of government regulations/ oversight however, is the leading cause of the voluminous paperwork. Compliance is the leading cause of the increased number of documents; however, the primary critical contractual obligations remain the same in the Promissory Note, Loan Agreement and if applicable, Guarantees.   Negotiating the key elements of these documents should be materially completed before attorneys get involved. Terms and conditions should be mutually agreed upon between the bank and the borrower. They should be easy to understand and find in the aforementioned documents. Failure to identify and agree on the critical issues enumerated in the loan documents ahead of time will haunt all parties in the future. Some of the key loan terms include amount, rate, term, repayment, collateral, guarantees and covenants. All of these items should be prominent and a review of Definitions in the Loan Agreement should remove any question as to what the terms mean.   Generally speaking, loan documents are intended to protect the bank but that in no way means borrowers should acquiesce to all the bank’s requirements. Some conditions are onerous, and part of a “blanket” document that the bank or its counsel, may have used in the past. In reviewing the documents the bank may at times say “no” in the negotiations, but at least there is an understanding of what is required. Remember, loan documents are a contract between two parties and that the bank has responsibilities too. As mentioned, the key elements in loan documents should be negotiated well before arriving at the closing table. Loan docu-

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ments should memorialize, not change, the conversations/agreements between the bank and borrower. While representations and warranties absorb a large amount of space in the documents, they should largely be mundane and easy to understand. Nevertheless, you should read and comprehend these items because if something goes wrong, the bank will enforce them.   This leads us to covenants. There are many kinds of covenants, but we will focus on the Affirmative and Negative ones here. Affirmative items generally include what financial reporting the borrower agrees to provide. Here you will find what is required for financial statements, tax returns, Accounts Receivable/Payable reporting, etc. There should be no surprises in this section of the Loan Agreement, and if an upgrade in financial reporting is required by the bank, it should have already been agreed upon.   Negative covenants are a little trickier as each bank has its own philosophy as to what financial measurements are important. Standard ratios that have been used over the years include liquidity, leverage and debt service. These measurements have been expanded in recent years to calculations such as Fixed Charge Coverage and Funded Debt to EBITDA, to name a few. Here again, these ratios should be well defined in the Loan Agreement and be sure you understand the math. Covenants are important to all parties involved, and banks vary as to which ones are deemed more relevant. They are not a one-size fits-all measurement as industries, companies and business models are not all the same. Provident Bank uses a simplistic approach to determine covenants because simply stated, the most important covenant of all is meeting the agreed-upon payment due date.   The amount of paperwork can seem daunting and while the business owner’s attorney is charged with reviewing documents, the owner should understand them too. Similarly, the bank is obligating itself under the loan documents, therefore your banker should have a full understanding of what is being agreed upon. If your banker can’t explain the loan documents to you, then it’s time to get a new bank. 49


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The Pipeline

By: Dennis Hart, Director Of Utility Operations   Under the leadership of Executive Director Andy Kricun, Deputy Executive Director Marge Dellavecchia and the Camden County Board of Freeholders the Camden County Municipal Utilities Authority is fast becoming a leader in environmental protection and stewardship. Through hard work, forward thinking and the low cost financing provided by the New Jersey Environmental Infrastructure Trust the CCMUA has been at the forefront of environmental leadership. Since the inception of New Jersey’s State Revolving Fund loan program in the 1980 CCMUA has been one of the top borrowers to take advantage of the low interest funding program managed by the NJEIT and the New Jersey Department of Environmental Protection.   The County Regional Wastewater Treatment System treats the sewage discharged every day from properties in Camden County. The Camden County MUA treats 58 million gallons of sewage per day at their plant, the Delaware No. 1 Water Pollution Control Facility. This flow travels through 135 miles of pipe assisted by 27 pump stations. The CCMUA was required to construct these facilities by the United States Environmental Protection Agency to bring Camden County into compliance with the Federal Clean Water Act. In older urban areas within New Jersey and across the country the sewer systems were combined with the storm water drainage systems so that the storm water would be treated by the sewerage treatment systems. However, as a rainstorm continues the amount of water is far greater than can be conveyed by the collection systems and treated by the sewerage plants. Overflow points were constructed which allows the mixture of storm water and untreated sewage to discharge untreated into waterbodies to prevent overflows into the streets or basements and also prevents the wash-out of the treatment plants. Camden City, Gloucester City and the CCMUA have 28 such CSO points operating throughout the county.   Over time, Executive Director Kricun has used the low cost financing to plan for the upgrade of the waste water treatment plant Utility and Transportation Contractor, JUNE 2016

and the systems leading to the plant. Even though the plant was meeting all of its NJDEP permit limits they continued to upgrade the system which provided better quality water being discharged than required under their permits and saving money by utilizing more efficient treatment units and pumps and motors. This environmental success was accomplished without having to raise the rates paid by the county ratepayers.   The CCMUA has not rested on its laurels and has a lot of work under planning which will be put out to bid in the near future. The construction of systems to treat all of the water being discharged by the CSO points is not financially possible nor feasible at all of the locations. The Camden County Freeholders and the CCMUA has taken the leadership role in working with municipal and other partners in the county to plan and construct projects throughout the area which will prevent the storm water from entering the system and causing discharges through the CSO points. Known as Green and Grey Infrastructure Projects, the CCMUA is currently out for bids for two green infrastructure projects. The first involves completing a 5 acre riverfront park adjacent to their wastewater treatment plant. This will provide riverfront access for their neighbors and also capture about 5 million gallons of storm water per year.   The second project involves construction of several rain gardens across Camden City in order to reduce the storm water burden on Camden's combined sewer system and correspondingly reduce the potential for combined sewage flooding. In the Crammer Hill section of Camden City they are working on the Cramer Hill Nature Preserve. The CCMUA is in the process of completing plans and specs to create a 20 acre riverfront park in the Cramer Hill section of Camden.   At the Wastewater Treatment Plant there will be pump and motor upgrades. The CCMUA is in the process of finalizing plans and specifications to upgrade the motors and controls of its wastewater

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Accounting Corner

NEW LEASE RULES MAY EFFECT CONSTRUCTION COMPANIES By: Roy Kvalo, The Curchin Group

  Accurate and sound financial statements are a key ingredient to any company’s success. Perhaps nowhere would this be more important than in the construction industry. In addition to monitoring economic job performance, the somewhat unique borrowing and bonding requirements encountered in this industry have made financial statements prepared in accordance with generally accepted accounting principles (GAAP) a necessity.   It is perhaps easy to understand why it is important for a Company’s financial statements to be comparable from year to year. But to be truly useful for third parties, including the analysis of banks and bonding companies, the accounting principles must also help ensure that the company’s financial statements are comparable with others in the industry. In this regard, the old lease standards have fallen short. In fact, as early as 2005, the U.S. Securities and Exchange Commission (SEC) issued a comprehensive report on off-balance sheet activities that recommended changes be made to the existing lease accounting rules to provide greater transparency in financial reporting. At that time it was estimated by the SEC that leasing transactions comprised the largest group of offbalance sheet transactions and were estimated to have amounted to $1.25 trillion in off-balance sheet operating lease commitments for SEC registrants alone.   In response to these findings, the Financial Accounting Standards Board (FASB) began a project to improve the GAAP standard for leases. As part of the project the FASB solicited comments from many different financial statement providers and users. The general feedback received by the FASB from stakeholders-including investors, creditors and others--was that the additional transparency, while necessary, might come with a great deal of cost and added complexity. To mitigate this concern, the 2016 FASB

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Leases Standard generally retains the current model for expense recognition. We should also note that the new lease standards do not affect leases with terms that are twelve months or less (shortterm operating leases).   Interestingly, the FASB also found that many investors, creditors and analysts were already aware of the off-balance sheet transactions and were making their own adjustments to reflect the actual economic liabilities of leases. Therefore, the new regulations should not be a surprise to the investment community but will result in a more accurate refinement of the estimated liabilities that are already provided by the analysts on their pro forma balance sheets.   This however, is not the case for privately held companies. As the new lease accounting standards are rolled out over the next few years, there will be significant changes to the balance sheets in the form of “right-of-use-assets” and lease liabilities. In this case, there are no alternative lease standards for nonpublic or privately held entities, with one very important exception. The standard will allow the election of an accounting policy (applied consistently to all leases) which will utilize a risk-free discount rate for the measurement of lease liabilities. This exception will simplify the calculation process significantly.   The effect on individual construction companies related to this accounting change will be fairly varied. Since construction companies generally rely on borrowing and bonding in normal operations, the new lease regulations could have a significant impact on this industry overall. Under the new rules, loan covenants in existing agreements that were adopted under the old lease rules, may no longer make sense. The working capital and debt to equity ratios for instance, will naturally be affected by the changed balance

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sheet presentation. The calculation of bonding capacity could also be materially different. As one might imagine, the assets and liabilities that would be recorded on the balance sheet will not necessarily cancel each other out, especially for larger companies that have a higher volume of complex lease transactions.   It may be advantageous for companies affected by the new lease standard to not only anticipate how new leases will affect the financial statements but also understand how existing leases will be specifically classified and accounted for under the new leasing standards relative to existing loan and bonding agreements. With some preplanning, management will be in a much better position to develop a strategy to navigate through some of the pitfalls that may arise in the implementation of the new standards.   Taking a proactive stance to advise the bankers and bonding agents about how these changes will specifically impact your company might be a good first step in ensuring that they have every opportunity to appropriately adjust the terms going forward in order to avoid continuing agreement terms that might not be achievable. Since most contractors will be affected similarly, there might be a natural inclination to assume that the banks and bonding companies will be well prepared for these changes. However, each company is different and will be presented with its own unique facts and circumstances.   Another important area where construction companies might be affected is in existing or proposed ownership agreements. For instance, buy-sell agreements, especially those that rely on a formulaic approach in valuing the business will clearly be affected by the new standard.   In the long run, the new lease standards will provide more accurate, comparable and transparent financial statements. But in the meantime, understanding that each company comes with its own unique facts and circumstances, it is important to include the discussion of the new lease standards in any planning conversation. About the Author. . . Roy Kvalo is the Director of Litigation and Valuation Services at The Curchin Group. He is responsible for managing all of Curchin’s litigation and valuation engagements, from initial contact to final report and/or expert testimony. Roy has been involved in numerous litigation cases, as well as business valuations for estate and gift tax compliance, and buy-sell agreements. He also serves as a court-appointed expert, and is admitted to the roster of mediators for economic aspects of family law cases. Roy is a graduate of Rutgers University, and teaches a forensic accounting course at Monmouth University.

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Safety Perspective

WORK AT ELEVATION: LIFE SAVING PROTCOL By: David Kliwinski, Parsons

  Work is considered to be “at elevation” if a person could be injured if they fell from it, even if it is at or below ground level including falls from ladders, scaffolds, and equipment, falls into excavations, and falls from elevated work surfaces. Each activity must be evaluated based on level of risk and exposure to determine effective means of fall protection. OSHA’s Fall Protection construction standard 1926 sets a uniform threshold of 6 feet above which employees must be protected from fall hazards. Hierarchy of Risk Mitigation for Work at Elevation 1. Eliminate the Hazard • Move the work to ground level so there is no risk of falling If you can’t… 2. Prevent the Fall - Limit Your Exposure Protect Yourself from the Hazard • Put up a solid barrier, wall or guardrail system to prevent fall exposure If you can’t… 2. Prevent the Fall – Use Equipment to Access the Elevation • Use a stair tower, or scaffold to access the work location. Or use a mobile elevating work platform - MEWP (i.e. aerial or scissor lift). If you can’t… 2. Prevent the Fall – Use Fall Restraint • Use a full body harness with restraint device or fixed lanyard to keep from reaching the edge. If you can’t… 3. Control the Consequences – Use Fall Arrest • Wear a harness and shock absorbing lanyard that will arrest your fall.

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• A double or Y-type lanyard is required to achieve 100% fall protection while moving or traveling. If you can’t…STOP and go see your Supervisor! Work at Elevation: Life Saving Protocol Absolutes for the Use of Personal Fall Arrest Systems • Use personal fall arrest as a last resort. * Perform the work so that fall arrest is not required * Use other means and methods to access the work • Make sure you are trained on how to properly use personal fall arrest equipment. * Inspect your equipment before each use to ensure it is in good condition * Do not use damaged equipment or equipment that has not been inspected * Never use a harness that has been subjected to shock loading from a fall * If you are unsure how to use fall arrest equipment ask for help • Only attach to approved anchorage points. * Anchorage points must be rated for 5,000 lbs (22.2 kN) or the maximum expected load * Handrails and other small structures and equipment cannot be used for anchorage unless capacity is verified * If you are in doubt about the capacity of an anchorage point, contact your Foreman or Supervisor • Make sure your anchorage point is at or above shoulder level and preferably directly above you. * Anchorage points located below the back D-ring will allow you to free fall greater than 6 feet (1.8m) increasing the load on your body and the possibility of hitting something at a lower level

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* Plan for clearance distances and swing fall hazards • Use a dual leg, Y-type or twin lanyard to achieve 100% fall protection.   * When moving to a different location, you must attach one lanyard to a suitable anchorage before removing the other lanyard from its anchorage for 100% tie-off. • Know the Rescue Plan. Work at Elevation: Life Saving Protocol Worker/Crew/Supervisor Actions to Help Keep People Safe Individual Actions You Can Take to Protect Yourself and Others   • Make sure you know the fall protection methods for the task you are about to perform.   • Always plan to protect yourself when working at elevation.   • Inspect and use your fall restraint and fall arrest equipment properly. Know the difference!   • Ensure scaffolds are complete and know when fall protection is needed on scaffolding.   • Protect yourself and others by covering or barricading floor and wall openings.   • Ensure all tools and equipment are secured from falling to a lower level.   • Designate a drop zone is clearly identified with barriers and signs erected in a conspicuous location.   • Intervene when you see others who may not be using fall protection properly or who may be at risk of falling. Crew Actions That Make a Difference   • Plan the work and understand the fall protection needs prior to starting.   • Stop work immediately if someone is at risk of falling!   • Discuss observations of unsafe conditions or actions as a group and take action to correct the issues.   • Contact your Foreman or Supervisor if you need help.   • Report any observation or near miss to your Supervisor or HSE Manager. Foreman/Supervisor Actions to Keep Your People Safe   • Review the pre-task plan and make sure everyone understands the fall protection requirements.   • Develop a rescue plan prior to allowing personnel to work at elevation.   • Make sure everyone has the correct fall protection equipment.   • Ensure that everyone has the proper fall protection training.   • Monitor the work to make sure everyone is safe.   • Summon the Competent Person to resolve issues if necessary.   • Discuss and resolve any issues regarding fall protection with individuals and with your crew.   • Hold your people accountable for following these absolutes. Other important considerations: 1. Be on the lookout for floor holes and wall openings and make sure they are properly covered or protected. 2. Follow safe work practices when using ladders and scaffolds. 3. Watch out for people working below – place barricades to prevent people from being hit by dropped objects.

About the Author…. David Kliwinski has over 25 years of construction safety experience, and is presently employed by Parsons as a SH&E Director. He is a registered Certified Safety Professional who has functioned in a leadership role as a Safety Director working for several large contractors. His experience includes General Contracting and Engineering in a variety of fields including industrial process and construction, heavy civil, infrastructure, and commercial building construction. David is a degreed Civil Engineer (MSCE) with an Associate’s degree in Safety from West Virginia University. He is a member of several safety associations including National Construction Safety Executive Committee, National Safety Council’s Construction Division, American Society of Safety Engineers, and Utility and Transportation Contractors Association. David was recently recognized by the National Safety Council for the Distinguished Service to Safety Award (DSSA) in September 2014 and presently serves as the Chairman of the National Safety Council Construction Division. He is an active contributor in elevating safety in the industry and continues to contribute by actively participating in Safety conferences and organizations and by publishing articles. David lives in Doylestown, Pennsylvania with his wife of 31 years and their three daughters.

Additional requirements and guidance on fall prevention and protection and working at elevation should be provided in the Project Health & Safety Plan which is available from your Supervisor or Safety Manager. Utility and Transportation Contractor, JUNE 2016

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IN EFFECT! THE NEW ELECTRONIC LOGGING DEVICES RULE & WHAT IT MEANS TO YOU By: Alan Mar & Jeffrey Spatz, The Graham Company

  There’s an elephant in the room with commercial contractors and it’s time to address it.   For contractors with commercial motor vehicle drivers subject to the hours-of-service (HOS) rule, that elephant is the potential falsification of records – whether with or without employer knowledge. Unfortunately, accounts of drivers falsifying logs to gain more time on the road and even accounts of supervisors directing drivers to falsify logs are not hard to find. Less sinister are the accounts of mere driver error that may occur when calculating hours manually.   An accident involving a commercial motor vehicle with a driver subject to the HOS rule where another party is injured or killed will open Pandora’s Box to claims and litigation. Add to that mix a driver’s intent to inaccurately report HOS and the situation gets even more complex. The situation becomes increasingly worse with employer knowledge (actual or constructive), direction, or consent; in this case, punitive damages are likely. While there should be insurance coverage in place for injuries and damage resulting from motor vehicle accidents, typically punitive damages – awarded with the intent to punish wrong-doing and the wrongdoer – are not insured or insurable. Suddenly, the elephant in the room has grown too large to ignore. To address the problem of inaccurate HOS logging, a new rule has been designed to improve compliance with the existing HOS rule.   On December 16, 2015, The Federal Motor Carrier Safety Administration (FMCSA) amended the Federal Motor Carrier Safety Regulations (FMCSRs) to establish the electronic logging device (ELD) rule to improve compliance with the hours-of-service (HOS) rule. What Is An ELD?   An ELD is a device that automatically records a driver’s driving time, facilitates the accurate recording of the driver’s HOS, meets the technical specifications of the ELD rule, and is integrally synchronized with the engine of the commercial motor vehicle (CMV). Four Components of The ELD Rule 1.  Minimum performance and design standards for hours-of-service (HOS) electronic logging devices (ELDs) – intended for ELD manufacturers 2.  Requirements for the mandatory use of these devices by most drivers currently required to prepare HOS records of duty status (RODS) – mandates the use of the ELDs to make it easier for drivers to accurately capture their HOS records 3.  Requirements concerning HOS supporting documents 4.  Measures to address concerns about harassment resulting from the mandatory use of ELDs – protects drivers from their motor carrier and its

ELD functions Who Is Required To Use An ELD? Interstate CMV (§49 CFR 390.5) drivers currently required to keep RODS (§49 CFR 395). Below are the four exemptions: 1.  “Short-haul” drivers * 100 air-mile radius drivers may continue to use time     cards per §395.1(e)(1) * 150 air-mile radius non-CDL freight drivers may   continue to use timecards per §395.1(e)(2) 2.  Using paper RODS for not more than 8 days during any 30-day period 3.  Conducting “drive away/tow away” operations 4.  Driving vehicles manufactured before model year 2000 ELD Implementation Phases Phase 1: Awareness and Transition Phase (02/16/16 – 12/18/17) – voluntary use of automatic on-board recording device (AOBRDs), or ELDs, or devices with logging software programs versus paper logs for RODS. Phase 2: Phased-in Compliance Phase (12/18/17 – 12/16/19) – mandatory use of ELDs with existing AOBRDS grandfathered for 2 years Phase 3: Full Compliance Phase (12/16/19) – AOBRDS must be upgraded or replaced by ELDs. HOS Supporting Documents Although ELDs will be utilized, supporting documents are still needed to verify “on-duty, non-driving time.” A supporting document needs to have 4 elements: 1.  driver name (or carrier-assigned ID) 2. date 3. location 4. time Carriers must retain a maximum of eight supporting documents per 24hour duty day. Supporting documents can include: 1.  bill of lading 2.  dispatch records 3.  expense receipts related to on-duty (not driving periods) 4.  electronic mobile communication records 5.  payroll records Next Steps for Motor Carriers 1.  Speak to your current insurance broker to verify exposures 2.  If the new ELD rule applies to you, develop a compliance action plan with an experienced safety consultant 3.  Ensure a “no surprises” environment for your fleet team by instilling knowledge on ELD subject matter

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NJ’s INFRASTRUCTURE PROBLEMS: A Case Of Misplaced Priorities And a Failure To Use The TTF Properly By: Assemblywoman BettyLou DeCroce   The ancient Romans built a global empire based on a 55,000 mile network of roads stretching from Britain to the Tigris-Euphrates River system and from the Danube River in Germany south to Spain and northern Africa.   The road system, meticulously maintained by the Roman government, not only carried soldiers to battle, but facilitated a robust international economy that allowed the trade of goods from Asia and Africa to the heart of Europe. The Roman roads outlived the empire and lasted well into the Middle Ages.   On June 29, 1956, President Dwight Eisenhower signed the Federal-Aid Highway Act. The legislation created a 41,000-mile national interstate highway system an spurred the construction of countless connecting roads and highways that would give Americans, not only the freedom to travel, but a convenient system to move freight and consumer goods to virtually any corner of the United States.   Eisenhower recognized that a surface transportation system of quality roads, bridges and tunnels was essential to national security and to commerce. Yet, 70 years later Americans have forgotten the importance of surface transportation investment. Our roads, bridges and tunnels are crumbling. They are dying of neglect. Many are unsafe, even dangerous and nowhere is that more true than in New Jersey.   A 2013 report on New Jersey’s public infrastructure by the American Society of Civil Engineers found that: • 35 percent of the state’s major roads are in poor shape • 624 of the state’s 6,566 bridges (9.5 percent) are structurally deficient. Another 1,710 (26 percent) are functionally obsolete The state has other infrastructure problems as well: • New Jersey has 218 hazardous dams • The state needs an infusion of $7.9 billion in drinking water infrastructure needs over the next 20 years • $32.5 billion is needed to improve wastewater treatment facilities over the next 20 years.   The numbers tell an alarming and disgraceful story. How is it that the Roman Empire could maintain a viable infrastructure system for millennia but New Jersey can’t maintain its roads and bridges for a half- century?   The problem is priorities. For far too long public officials of both parties, social leaders and the media have lobbied to spend Utility and Transportation Contractor, JUNE 2016

billions of taxpayer dollars on social programs and non-essential projects instead of our critical infrastructure needs. Enormous sums of taxpayer money have been diverted from what we must do as a government, to projects that are clearly not critical.   In New Jersey we spend millions of public dollars each year on artificial turf fields, dog parks, entertainment and monuments and not nearly enough on our transportation infrastructure. Why? In all candor, I can tell you that public officials get greater kudos from the public when we stand at ribbon cuttings for new park equipment than when a bridge is replaced or a road repaved. But we can’t effectively run a state based on easy photo ops. We must pay attention to what’s truly important. That’s why in New Jersey we must support the referendum on the November ballot that will dedicate all the revenues from the motor fuels tax and the gross receipts tax from the sale of petroleum products to the Transportation Trust Fund. It’s misleading to tax consumers for the purchase of gasoline and oil under the notion that the money will go to transportation funding only to see the money siphoned off for other purposes such as state debt payments.   Every year our transportation infrastructure crumbles, the more it costs us in business-related travel and worker productivity. Delivery trucks and commuters stuck in miles of traffic because of poor road design costs money and reduces the desirability of businesses to invest in New Jersey. According to various estimates from government institutions and non-profit organizations, the efficiency lost because of poor infrastructure is probably in excess of $195 billion per year nationally. The Economist magazine’s recent study of the cost of infrastructure failure estimates that in America the average cost of congestion to a car-owning household is $1,700 a year.   Outdated road designs are also hazardous to commuters. It has been reported that poorly maintained roads may contribute to up to a third of all highway fatalities, or more than 14,000 deaths every year.   The imperative to improve our state’s infrastructure is undeniable and the benefits innumerable. Ironically, while many of my colleagues in Trenton are struggling to find ways to stimulate our economy, one of the simplest and most beneficial stimulus plans is right in front of us; invest in infrastructure.   Infrastructure creates construction jobs and jobs at asphalt and concrete plants. It creates jobs in steel plants and it spurs the need 65


for the purchase of new trucks and other construction equipment. The money from those jobs and purchases will trickle through the economy, boosting consumer spending on everything from clothes to meals at restaurants.   So given the obvious benefits of infrastructure why isn’t the state legislature able to come up with a plan to finance the upgrade of our roads and bridges? Why can we not agree to a dedicated transportation fund and reap the economic benefit of capital improvements? Do we need to have a tragedy such as the one that occurred when the I-35W bridge in Minneapolis collapsed, killing 13 people and injuring 145 others before we act? It should not take a tragic failure of our infrastructure system to compel legislators to do their duty. All we need is common sense and a legislature that can wean itself off the compulsion to spend recklessly on non-essential programs while ignoring its most basic obligations. Failing to maintain our infrastructure is not a taxing problem, it’s spending problem. We spend too much taxpayer money on unproductive things, while ignoring the basic obligations of government.   It’s extremely important to our state’s future for all of us to work for voter approval of the transportation funding amendment that will appear on the November ballot. It’s time for New Jersey to get its fiscal priorities in order. Join me in the fight to put New Jersey on the road to prosperity.

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Continued from Page 63 About the Authors: Jeffrey A. Spatz, CHST, CET is an Assistant Vice President at The Graham Company. Spatz can be reached at jspatz@ grahamco.com or on Twitter @TheGrahamCo. Alan Mar, CSP, CDS, CESCP, ARM is a Senior Safety Consultant at The Graham Company. Mar can be reached at amar@grahamco.com

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treatment plant's raw sewage pumps. This project is expected to be out for bids this fall.   Not only is the CCMUA a leader in waste water treatment but they are also focusing on becoming energy efficient and reducing their carbon footprint. The CCMUA is in the process of developing plans and specifications for a new sludge digestion facility which, when coupled with a combined heat and power system will reduce the CCMUA's sludge production by about 50% and also generate about 4 MW of electricity to help reduce the plant's vulnerability to power outages. Their plan is to be totally energy self-sufficient by 2020.   Throughout this major effort the authority is looking forward to working with construction contractors who provide quality and timely work and will help them implement their environmental vision.

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