Utility & Transportation Contractor October 2018

Utility & Transportation

contracTOR october 2018

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president’s message

From the desk of: joe walsh

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s I enter my term as President, our industry continues to face constant challenges. We fought hard and successfully passed legislation to increase the gas tax to replenish New Jersey’s failing Transportation Trust Fund and create a new infrastructure bank to fund local transportation projects. The challenge we face now is how the increased funds are allocated between NJDOT, NJ Transit and our counties and municipalities.

While NJ Transit and local governments are receiving increased funding, NJDOT continues to struggle to fund its annual capital program. Your Association leadership is working with the Governor’s Office and legislative leaders to address this issue. We must remain vigilant in making sure the state’s transportation agencies are held accountable to the industry, the legislators that voted for the gas tax and most importantly the taxpayer.

We are already two years into the renewal and we must begin planning for the campaign for the next increase. If we fail to show the taxpayers significant return on their investment, we will find it difficult to raise new revenue in future renewals.

Now is the time for us to look beyond the gas tax and start the discussion on mileage-based user fees and implementing CPI indexes. Under a mileage-based user fee, drivers pay for the miles they travel allowing the electric, natural gas, and hybrid cars to contribute their fair share to the cost of transportation maintenance and improvements.

Public perception continues to be a challenge for our industry due to issues that must and can be addressed. Delays due to utility and engineering challenges make some projects look inefficient to the public.

To motorists, a delayed project is usually blamed on the contractor because we are on the front lines of infrastructure delivery.

Regardless of whether a project is delayed due to the need to rework plans or if there is a utility delay, to the public we are the cause of the delay.

We must advocate for reforms to the State’s uniform traffic control process on our projects. While we are responsible for pro-

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tecting our employees, the traveling public and the pedestrians in our work zones, at times it appears that there is too much police presence on the project site. Uniform traffic control is not needed on every project and criteria should be developed to clearly identify when police are needed for this task. We are trained to create the safest work zone possible and this issue is costing taxpayers and ratepayers millions of dollars and it must be addressed.

On local streets, sewer, water and gas upgrades are not coordinated leaving residents wondering who is in charge. Our association needs to take a leadership role in creating communication between utilities and agencies, so we become better and more efficient consumers of our infrastructure funding.

We need to work on laws that allow contractors to recover their costs when municipalities and agencies abuse the Local Public Contracts law by rejecting responsible responsive competitive low bids.

The paperwork should not outweigh the price and the cost to the tax payer.

We must also continue to standardize bid documents, so estimators are not inundated with endless paperwork instead of focusing on the best construction solution and price.

As you can see, there is seemingly no end to the challenges facing our industry. But like the previous generations of UTCA leaders before me, we will attack those challenges head on.

I would like to thank Tom Hardell for his tireless efforts to continuously improve our industry on behalf of the Association.

I would also like to congratulate Anselmi & DeCicco on 60 successful years in construction and our 2018 Award Recipients for their many years of dedication to our Association and industry.

Best regards,

Joe Walsh

CONTENTS

Cover story 48 UTCA's 2018

annual convention

50

DEPARTMENTS

FEATURES

2 9 19 25 33 43 59

72 Anselmi & Decicco celebrates 60 years in construction 92 PKF - Mark III replaces raccoon creek bridge

President’s Message Legal Dig Accounting Corner Legislative News Safety Perspective Labor Relations

NEWS 83 A fresh look at employee benefits 89 george harms construction purchases manitowoc mlc100-1

The pipeline

Published Bimonthly During 2018

1670 Route 34 North Farmingdale, NJ 07727 PO Box 728 Allenwood, NJ 08720 PH: (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org

Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Zoe Baldwin, Dan Kennedy, George Lobman Advertising Manager: Helene Nasdeo Photographer: Image Up Cover Photo: Image Up Production/Graphics: Helene Nasdeo, Lauren Hagan Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition 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.

Utility & Transportation Contractor | october| 2018 3

DIANE B. ALLEN EQUAL PAY ACT

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he newly enacted Diane B. Allen Equal Pay Act (the “Act”), which became effective on July 1, 2018, imposes significant additional responsibilities on employers working in both the private and public sectors. The Act requires equal pay for “substantially similar work” and prohibits pay differentials (including benefits) among members of various protected classes. The Act modifies the Law Against Discrimination (“LAD”), N.J.S.A. 10:5-12, and portions of the laws that cover work involving public contracts and public works projects, specifically, `N.J.S.A. 34:11-56.14.

The Act makes it an unlawful employment practice “for an employer to pay any of its employees who is a member of a protected class at a rate of compensation, including benefits, which is less than the rate paid by the employer to employees who are not members of the protected class for substantially similar work, when viewed as a composite of skill, effort and responsibility.”

What is a “protected class”?

Employers must be aware of the expansive nature of the definition of “protected class.” Protected class includes any category noted under LAD such as race, creed, color, national origin, ancestry, age, marital status, civil union status, affectional or sexual orientation, pregnancy, sex, gender identity or expression, disability, and liability for service in the Armed Forces of the United States.

What is included in “compensation”?

Since the Act defines compensation as including benefits, it covers all forms of remuneration including: commissions; bonuses; profit sharing; deferred compensation; paid time off; expense accounts; car and gas allowances; retirement plans; insurance; other benefits.

What is “substantially similar work”?

The requirement to pay the same rate for “substantially similar work” will be based on the skill, effort and responsibility for the position. It will not be determined based on job titles, but on the work and/or management level responsibilities of the employee.

Responsibility involves the degree of discretion or accountability involved, amount of supervision received, whether the employee supervises others, and the degree the employee is involved in decision making.

It is important to bear in mind that the Act does not, at this time, make any distinction among geographic areas within the State.

It is possible that an employee in Cumberland County could demand compensation equal to an employee in Bergen County, even though those areas typically reflect geographic distinctions in wages.

Legal Dig

By: adrienne l. isacoff & J. Andrew kinsey, florio, perrucci, steinhardt & cappelli

When does an employer not violate the Act? Compensation practices do not violate the Act if the employer can show that employees are paid differently for the same work pursuant to a seniority system; a merit system; or other bona fide factors such as training, education or experience, or the quantity or quality of production.

The employer must be able to demonstrate that the above factors are not based on and do not perpetuate a differential in compensation based on sex or any other characteristic of members of a protected class. The employer must also demonstrate, among other things, that the factors that justify a pay differential are job-related with respect to the position in question.

Protections for Female Employees Female employees must be provided temporary reasonable accommodations for pregnancy and breast feeding. Specifically, N.J.S.A. 10:5-12(s) provides that it is an unlawful employment practice: For an employer to treat, for employment-related purposes, a woman employee that the employer knows, or should know, is affected by pregnancy or breastfeeding in a manner less favorable than the treatment of other persons not affected by pregnancy or breastfeeding but similar in their ability or inability to work. In addition, an employer of an employee who is affected by pregnancy shall make available to the employee reasonable accommodation in the workplace, such as bathroom breaks, breaks for increased water intake, periodic rest, assistance with manual labor, job restructuring or modified work schedules, and temporary transfers to less strenuous or hazardous work, for need related to the pregnancy when the employee, based on the advice of her physician, requests the accommodation; and, in the case of an employee breast feeding her infant child, the accommodation shall include reasonable break time each day to the employee to express breast

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milk for the child, unless the employer can demonstrate that providing the accommodation would be an undue hardship on the business operations of the employer. . . .

Legal Dig

Employee protections under the Act Executive Order No. 1 prohibits employers from inquiring about salary history during the interview process. Employers may not consider an applicant’s refusal to volunteer compensation information in any employment decision. We can expect to see similar legislation regarding compensation information with respect to private employment in the near future.

The Act prohibits employers from retaliating against workers for discussing their compensation with co-workers. Employers may not require an employee, as a condition of employment, to agree not to make these types of requests or disclosures. If there is a disparity in compensation that is prohibited under the Act, the employer may not reduce the higher paying position in order to achieve equal pay.

Workers can file a complaint about unequal compensation with the Department of Labor and Workforce Development (“DOL”).

If there is a violation, the employee will be awarded compensatory damages, and may be awarded punitive treble damages and attorneys’ fees if the conduct is found to be willful. An individual worker may join in class action litigation.

Work for Public Bodies (N.J.S.A. 34:11-56.4(a) Employers who enter into contracts with public bodies to provide “qualifying services” must report to the DOL information regarding the compensation and hours worked by employees categorized by gender, race, ethnicity and job category. “Qualifying services” means the provision of any service to the State or other public body except for “public work.” (See below for public work).

Public Work (N.J.S.A 34:11-56.14(b) “Public work” means “construction, reconstruction, demolition, alteration, custom fabrication, or repair work, or maintenance work . . . done under contract and paid for in whole or in part out of the funds of a public body . . . .” (N.J.S.A. 34:11-56.26).

Certified payrolls must be submitted for employees subject to the Prevailing Wage Act. DOL has modified the form of certified payroll to include information regarding sex, race and ethnicity, which must now be reported.

Significantly, the types of employees who must be included on certified payroll has not changed. “Workman” or “worker” is still defined as a laborer, mechanic, skilled or semi-skilled, laborer and apprentices employed by the contractor and engaged in the performance of services directly upon the public work. (N.J.S.A. 34:11-56.26). At this point, the law does not appear to require that employees such as estimators or administrative personnel must be listed on the certified payrolls. Based on the terms of the new law, since “public work” contracts are distinct from contracts for “qualifying services” there is at least a good faith basis to conclude that those employees whose work is associated with public works contracts, but are not listed on certified payrolls

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(i.e., not covered by the Prevailing Wage Act), do not fall into any reportable requirement by employers.

Best Practices All employers must take a careful look at their employee compensation and other practices. Steps to protect against liability include careful job descriptions and revisions of your employee handbook. You should include language to this effect: The company prohibits employee compensation and benefits based on sex, race, age, sexual orientation and any other legally protected classification. The company strives to provide equal pay for substantially similar work, when viewed as a composite of skill, effort and responsibility. Factors taken into consideration when setting pay for employees at the company include job description, job responsibilities, managerial/supervisory status, seniority, performance, merit, productivity, disciplinary history, experience, training, education, ability and physical or mental exertion requirements. Pay differentials based on lawful factors other than sex, race, age, sexual orientation or other protected classification shall not constitute a violation of this policy.

This is just a summary of some of the changes made by the law.

You should consider revising your employee handbook, formulating more detailed descriptions of the qualifications needed for each position, maintain records regarding compensation for all employees, and take other steps that your employment lawyer may advise.

the new revenue recognition accounting: what will the impact be for the construction industry?

By: ron martino, withum

ALERT: Private construction companies will need to comply with ASC 606 for financial reporting periods beginning after December 15, 2018.

One might say, “Well is this really going to impact my company?

I am a small contractor, my costs are my costs, and my revenue recognized is not going to change.” There may be some truth to that comment. However, until the construction company’s management walk a representative sample of its contracts through the new ASC 606 guidance, they cannot be sure of that belief.

This assessment is imperative because the accounting can vary significantly depending on the conclusions drawn. Once the assessment is completed, it is possible that the application of ASC 606 may only yield a few adjustments, both at the transition stage and the ongoing application of ASC 606. Nonetheless, the application of the new standard will indeed require more robust financial statement footnotes for revenue recognition.

While ASC 606 retains the current percentage-of-completion method of recognizing revenue on long-term construction-type contracts, there are refinements to the costing inputs that may require a planned and extended effort on the part of the contractor’s management teams. This particularly includes enhanced communication amongst the accounting, project management, and estimating departments. For example, companies now need to identify specific job costs associated with mobilization activities such as costs to move personnel, equipment and materials to the project site in order to account for separately and capitalize in accordance with ASC 606 rather than accelerate costs-to-date entirely upfront. If they haven’t already done so, contractors need to begin identifying the impact to their financial statements, financial performance metrics, financing, and tax planning.

So if I haven’t caught your attention yet, please consider the following advice at a minimum. A construction company should be reviewing at least some of the various ASC 606 articles, summaries and practice aides available and commence ASC 606 planning well ahead of the upcoming year-end. One might ask why? Well, say for example, if a company has a reporting cycle that ends on December 31, 2019 and issues comparative financial statements, then the company will need to choose one of the two available transition methods each having qualitative and quantitative considerations that take careful analysis, a collaborative effort by management and enhanced internal documentation to implement. For these reasons, construction associations across the country are doing everything they can to educate and alert their most valuable members on the urgency to assemble an internal revenue recognition task force, digest the new ASC 606 standard, review all their existing in-place contracts, apply the new five-step process for revenue recognition, determine the transition method they wish to use to adopt the new standard, and communicate with their trusted advisors on any anticipated effects to their company.

Accounting Corner

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he impact of Revenue from contracts with customers (ASC 606) affects virtually all entities who enter into contracts with customers, whether public, private or not-for-profits. ASC 606 will completely replace all revenue guidance under US Generally Accepted Accounting Principles, including the existing guidance for construction-type contracts under SOP 81-1.

This far-reaching revenue recognition framework will impact a construction company’s accounting systems and processes, financial reporting and documentation functions, operating software systems, internal controls, and financial ratios. Construction companies will need to exercise subjective, yet consistent judgement when reviewing and accounting for revenue from contracts with customers under ASC 606.

The fundamental principle of the new five-step recognition process is to recognize revenue such that it depicts the consideration which the company expects to be entitled to in exchange for the transfer of promised goods or services to its customers. The key to this five-step process is that the steps are to be achieved consecutively, or else proceeding to the next step will not be possible.

Those steps are illustrated below:

So again, one may say, “This will probably have little to no impact on my financial statements.” However, to further emphasize the importance, I liken the ASC 606 implementation process to that of injuring one’s ankle. Would one rather run to the urgent care center, receive treatment and be told they have a very bad sprain injury versus not seeking care and finding out after weeks of letting it go that they did in fact break their ankle that now requires more extreme measures and pain to correct it?

Many are saying the implementation process will be a good ex-

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Accounting Corner

ercise for companies and a sort of renewal process for clarifying terms within existing and upcoming long-term contracts. Starting the implementation process now before the overwhelming year-end close period will prove to be essential for all companies. The early implementation will enable the improving or enhancing of accounting policies and procedures, the development of significant judgements and estimates, the identification of performance obligations, the assessment of the probability of collection, and the analyzing of contract modifications including change orders, time and material tickets, incentives and/or liquidated damages. Furthermore, a proactive implementation process will allow companies to have time to exchange dialogue with their trusted advisors regarding the anticipated effects to their financial statements and related disclosures, financial performance metrics, financing, and tax planning before the year is out.

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Ultimately, construction companies will have to make several new significant judgements and apply several new concepts upon adoption of the new revenue recognition standard – ASC 606. They may reach different conclusions about the number of performance obligations or the amount and timing of variable considerations (i.e. performance awards or claims) to include in the transaction price. Even if the accounting impact is minimal, companies are realizing now that the implementation of the new standard takes more time and effort than originally anticipated.

Benjamin Franklin said it concisely, “If you fail to plan, you are planning to fail!”

About the Author. . . Ron Martino is a Partner at Withum, Team Leader of the Construction Services Team and ASC 606 Revenue Recognition Specialist. Ron is a licensed Certified Public Accountant in New Jersey and is a Certified Construction Industry Financial Professional (CCIFP®). Ron has more than 20 years of professional experience, providing attest, tax and consulting services to contractors, suppliers, manufacturers and distributors to the construction industry.

legislative update By: zoe baldwin

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EST LAID PLANS It’s been a frenzied start for the new legislative session, with big issues in the headlines and legislation moving on a host of issues. As per usual, the top issue of the day has been the economy and how to fix it.

“The reason we're unveiling an economic master plan? The damn economy hasn't grown.” Gov. Phil Murphy said as he presented the extensive new strategy. For his part the Governor recently unveiled an Economic Master Plan that focuses on targeted investments, mainly in tech-oriented firms. This is a departure from the last administration, which tended to prefer tax breaks and payments-in-lieu-of-taxes to lure big business.

The good news for contractors is that the master plan calls for increased investment in infrastructure. For transportation, the document states that the Department of Transportation is in the process of developing a “comprehensive strategy to ease mobility and congestion,” that will focus not only on long-term capital investments, but on immediate and near-term operational strategies as well. The plan also specifically identified an increased focus on Positive Train Control, Gateway Tunnel, Portal Bridge, and projects at Newark Airport. There were other, more vague references to investments that we will have to keep an eye on, including one on wastewater and drinking water improvements statewide, a section on offshore wind, and a mention of ensuring that our ports are ready to handle large scale cargo necessary in the construction of offshore wind facilities.

TAX RATES CHANGE BUT REVENUE STAYS THE SAME On October 1 the gas tax increased by 4.3 cents per gallon in response to falling collections at the pump. Part of the 2016 TTF reauthorization was language enabling minor increases without legislative approval to ensure that capital plan funding remains steady despite fluctuating rates of fuel consumption. A three-person committee was established to review the tax's performance annually to determine whether it's bringing in too much, too little, or the just the right amount to cover the cost of our annual capital needs. Last fiscal year revenue was $125 million short of

In response to the increase, Republican Assemblyman Jay Webber and Senator Kip Bateman have introduced legislation that would reverse this process, once again involving the Legislature in all increases. While the legislators cited their fears of never-ending gas tax increases, it is worth noting that under their preferred process the TTF was completely drained, starved of any revenue between 1988 and 2016. Although neither bill is posted for a hearing at this time, UTCA weighed in with the sponsors directly to state our opposition.

BROTHER CAN YOU SPARE A DIME Industries and individuals across the state have watched with interest as the effort to legalize recreational marijuana comes closer to fruition. For some, the interest is in the revenue expected from taxing the new industry while others just want to have fun. For the construction industry however, it has meant making sure that any legislation includes strong employer protections that support the testing and monitoring necessary to keep our industry safe. At the time of this publication, draft legislation is very clear in its protection not only of construction employers’ rights, but also of the broader federal regulatory structure we are subject to. The Senate expects to hear the bill before the end of October, although efforts to legalize have repeatedly missed timelines set by the sponsors and Governor.

Legislative News

State leaders face the difficult challenge of solving a pension and retiree health benefits liability estimated at more than $150 billion - almost four times as much as the state's budget – as well as a stubbornly high unemployment rate, and several other economic indicators that compare unfavorably with national figures. In two unrelated incidents, the topic even garnered amusingly-mild swearing from Governor Murphy.

the $2 billion target, spurring the administration to make up the difference.

USE IT OR LOSE IT In the August issue of the Utility & Transportation Contractor, we updated you on the Association’s effort to tighten up the way the New Jersey Department of Transportation allocates local aid funding to local governments. The measure has since been introduced by Senator Paul Sarlo (s2863), and Association staff has held meetings with our allies in the engineering community as well as with the Association of Counties. Some positive changes have come from those discussions and we still expect a hearing on the bill before winter, although also expect some pushback from the local government units who prefer to aggregate Local Aid funding. That said, we are confident we can work through these issues and pass meaningful and necessary reform.

IN THE HOPPER UTCA has been working with our partners in the engineering community on legislation to enable design-build contracts on state transportation projects. At the time of this publication, the draft language is being finalized and we

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expect introduction by both Transportation Committee Chairs before winter.

On the local side, we’re drafting legislation to remove a loophole in Local Public Contract Law that allows owners to select bidders on certain types of projects. We are also working with our friends at the Electrical Contractors Association in support of s2947, which would require the release of bid list prior to the bid date. Finally, we are looking at legislation that would require engineer estimates to be posted on the day bids are opened and require that the CFO or equivalent certify that the owner has full funding for the cost of the engineer’s estimate.

Legislative News

We will continue to work on these initiatives and will keep you up-to-date you as our efforts progress.

PUSH EM BACK/HIT EM HARD/MAKE EM FIGHT FOR EVERY YARD Much of legislative work is behind the scenes, working to stop bad ideas before they become law. While most of our defensive efforts are handled behind the scenes, two such items recently rose to a point worth noting.

The first bill was thankfully pulled from the Senate floor before the vote, saving contractors from being subject to a “reverse auction” situation. Under this method, bidders can see bids submitted by competitors and are given the opportunity to submit increasingly lower prices until the auction is closed and the contract is awarded to the lowest bidder. This structure is not only bad for contractors, but for safety of workers and the health of the industry as well. We are working with legislative leadership to ensure that, at a minimum, if this bill is back on for a vote all references to construction and public works are removed.

Another bill may sound familiar to our long-time readers, as we’ve been fighting it off since 1994; once every few years it pops up, and UTCA is ready to respond. S1518 would require any state department to conduct an over-the-top cost analysis that proves “substantial cost savings to the state” for any contract over $100,000 otherwise performed by state employees. Outside procurement help is essential to keeping our project pipelines flowing while maintaining state oversight, and this bill would all but stifle industry efforts to obtain temporary procurement assistance at agencies like the Infrastructure Bank or DEP. FILE UNDER: IT’S ABOUT TIME In September, Congress announced a bipartisan, bicameral agreement on the Water Resources Development Act (WRDA). Formally titled the “America’s Water Infrastructure Act of 2018,” the consensus legislation was announced last week by House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA), House Transportation and Infrastructure Committee Ranking Member Peter DeFazio (D-OR), Senate Environment and Public Works Committee Chairman John Barrasso (R-WY), Senate Environment and Public Works Committee Ranking Member Tom Carper (D-DE), House Energy and Commerce Committee Chairman Greg Walden (R-OR), and House Energy and Commerce Committee Ranking Member Frank Pallone (D-NJ). This Legislation has passed the House and is pending action in the Senate.

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The bill would reauthorize the Safe Drinking Water State Revolving Fund (SDWSRF) at $1.174B for FY19, $1.3B for FY20 and $1.95B for FY21. The FY18 appropriation for SDWSRF was just $1.16B, meaning that if authorized and implemented, the SDWSRF would be funded at 180% of current levels by 2020.

According to various projections, New Jersey needs to invest approximately $40 billion to replace and upgrade its water infrastructure and this funding will provide a much-needed shot in the arm for projects across the state.

GATEWAY As we’ve previously reported, the Trump administration considers the Obama-era Gateway funding arrangement nonbinding, and the administration’s lack of support has set off alarm bells at home. However, in the unlikely event the Administration decides to move forward with funding for the $13 billion tunnel project, the Gateway Development Corporation (GDC) overseeing the plan is making sure it's prepared. In late September the corporation selected Ernst & Young to be the financial adviser for the project, a role that will involve working on procurement strategies and identifying private and other funding sources that could minimize public costs. UTCA submitted comments to a recent GDC request for information regarding procurement and will continue to weigh in where applicable.

UTCA staff including CEO Bob Briant, Jr. along with contractors Lisa Chowansky of HC Constructors and John Maisano of New Prince Concrete joined 5th Congressional District Representative Josh Gottheimer in a roundtable discussion on infrastructure priorities. The discussion, held at the Bergen County Labor Council Hall in Paramus, focused mainly on the partnerships and funding needed to advance the Gateway Tunnel Project.

UTCA was thankful for the opportunity to participate and looks forward to seeing this critical project move toward construction.

Please consider supporting the UTCA PAC, Constructors for Good Government UTCA continues to be the leading voice for the infrastructure construction industry in Trenton and Washington DC. 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 is only possible with your support and more importantly, with your support of the industry’s PAC: Constructors for Good Government. Please consider contributing as a robust PAC greatly strengthens our voice. Thank you for your continued support.

workplace safety audits By: travelers indemnity company

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What is the difference between a safety audit, a safety inspection and a safety observation?

Safety audits are not the same as safety inspections or safety observations. A safety audit is typically a management function to verify that safety organizational practices and safety process requirements, established to control risk, are being implemented as expected and are having the desired impact. Audits allow managers and safety professionals to verify that the safety program is applied as designed and continues to control hazards.

A safety inspection is typically conducted by supervisors or frontline employees and is typically limited to monitoring safety conditions in their local work area.

A safety observation focuses on the actions, positions and behaviors that could increase the likelihood of an employee accident.

Observing the positions and behaviors of people at work can identify workstation deficiencies that may not be otherwise apparent from a traditional inspection approach. It’s also an opportunity to engage employees in your safety program. Acknowledging employees who are following safe work procedures reinforces their safe behavior.

Audits, inspections and observations should be done on a routine, scheduled basis, although safety inspections and safety observations are typically conducted more frequently than safety audits.

Safety audits Safety audits help ensure that your safety programs are structured effectively. Here are some ideas for conducting a safety audit. Consider the audit in two phases: First, determine if the program you will audit is properly structured. Second, conduct a front-line assessment to verify that the program is being implemented as expected.

Is the program adequately designed?

• Review previous history including OSHA or injury logs, accident reports, observations, inspections and employee complaints. Do they indicate a need for changes to your program?

• Check outside reference sources, such as equipment manufacturer’s manuals, Safety Data Sheets, OSHA regulations and national consensus standards. Have there been any changes since your process was last audited?

• Review your organization’s safety policies, procedures, training logs, and safety rules for adequacy. Do employees know what is expected of them and do they have the knowledge and skills needed to perform satisfactorily?

• Have clear lines of authority and responsibility been defined? Do managers know what is expected of them and how they will be held accountable?

Safety Perspective

t is important for an organization to establish safety controls, but it is unrealistic to expect these barriers to function flawlessly and forever. To ensure that hazards do not “slip” out of control, and to continuously improve safety performance, there should be ongoing evaluations to determine if control processes remain in existence and functioning effectively. Safety audits, safety inspections and safety observations are proactive, preventive measures to help ensure that hazards remain controlled and provide an opportunity for continuous improvement of your safety and health program.

Is the program effective?

• Do the controls in place appropriately minimize the risk of injury and property damage?

• Verify with employees that they understand and are following the designated safety policies, procedures, rules and regulations.

• Verify that safety communications and training adequately prepare employees for the tasks they perform.

• Evaluate the effectiveness and ability of line management to manage safety in their assigned work areas.

• Do managers set a good safety example when in work areas?

Develop corrective actions to address any weaknesses in your safe-

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ty program.

Safety inspections and observations Safety inspections and observations help to identify and correct unsafe conditions and behaviors. Here are some ideas for developing inspection and observation programs that may ensure control processes remain in existence and functioning effectively.

• Set an inspection and observation frequency (e.g., hourly, daily, weekly, quarterly) that is consistent with the degree and complexity of the risk.

• Convert the items to be inspected into a checklist and use it to guide inspections and observations. Consider adding pictures to the checklist to illustrate proper methods and controls. Checklists provide formal structure to the inspection and the corrective action process that will follow.

Safety Perspective

• First-line supervisors are valuable as safety observers because they have the authority to coach and counsel their employees on all aspects of their performance.

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• Decide whether the safety inspection will be done individually or as a team. Is special expertise needed, e.g., fire protection, industrial hygiene, etc.? Maintenance employees are often a good choice for safety inspection teams as they usually are well-versed in facility operations and may be able to correct minor hazards immediately.

• When making inspections and observations let employees know who you are. They are closest to the operation and can explain how and why they do what they do. They can also point out hazards that concern them.

Summary To continuously improve your safety performance, conduct ongoing safety audits, safety observations and safety inspections to ensure control processes remain in existence and functioning effectively. They are proactive, preventive measures that can be taken before injuries occur.

Travelers Indemnity Company www.travelers.com

recent developments in ny & nj law pose challenges to employers utilizing restrictive covenants By: alexander x. saunders, esq., peckar & abramson

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Currently, there are three bills in the New York State Senate under consideration in the labor committee. Bill S1589 seeks to establish that restrictive covenants are not enforceable as to an employee who has been terminated for reasons other than misconduct and as to employees who are not "unique," or do not possess trade secrets, have not purchased or sold any portion of the business and are not "learned professionals." Additionally, the proposed legislation would bar restrictive covenants in the case of attorneys. Bill S4610 seeks to prohibit employers from requiring low-wage workers from entering into non-compete contracts as a condition of employment and would require non low-wage workers to be informed of such a potential agreement at the beginning of the hiring process.

Bill S6554 would forbid employers from requiring non-compete agreements from employees earning less than $75,000 annually. For all other employees, the proposed bill would require all non-compete agreements to be in writing and signed by the employee and the employer, be provided before an offer of employment or 30 days prior to the non-compete agreement going into effect. The bill also proposes that for any employee discharged without cause, a non-compete agreement is ineffective. Notably, the proposed legislation would provide for recovery of attorneys' fees to an employee filing suit for violations under this section.

Although it is unclear whether these bills will ultimately be signed into law, it shows the trend toward legislative action in this area, and employers must be aware of this fast-changing legal landscape.

Recent court cases also provide additional considerations for employers seeking to protect their business interests by using restrictive covenants.

In Document Techs., Inc. v. LDiscovery, LLC,1 the Second Circuit Court of Appeals, applying New York law, upheld the federal district court's refusal to enforce non-compete clauses against a group of former employees. The defendants included four former employees and the competing company that hired them after they resigned from plaintiff, DTI. The former employees signed employment agreements with the plaintiff that included one-year non-compete and non-solicitation clauses and a non-disclosure clause. They resigned from the plaintiff and signed employment agreements with the competing company with the understanding that they would not begin work until the following year, after the non-compete term had expired. However, soon after resigning from DTI, the former employees began creating client lists to utilize once they commenced their new employment.

The appellate court concluded that DTI failed to state a claim where there was no allegation that the defendants actually violated the non-compete period, and no allegation that any client information had been provided to the new employer. While the employees had taken preparatory steps to begin competing with DTI, this was not enough to violate the non-compete clause according to the court. Merely preparing to compete was not sufficient where defendants had agreed that the employment of the former DTI employees would not begin until after the expiration of the non-compete period and there was no allegation of any other violation of the restrictive covenants.

Labor Relations

ecent legal developments in New Jersey and New York continue to redefine the limits of restrictive covenants in an employment context. Employers often rely on restrictive covenants to prevent a former employee from soliciting its clients, working for a competitor or utilizing confidential or proprietary information. While the courts have held that an employer may legitimately protect its business interests with a restrictive covenant, the courts have traditionally scrutinized the scope of such agreements. A number of recent cases in both states are illustrative of the courts' continued interest in providing guidelines for an employer seeking to limit employees' post-employment actions. Furthermore, state legislatures have become involved in this area, as evidenced by three bills currently under consideration in the New York State senate.

In a recent New Jersey case, the federal district court found that where an employer used multiple agreements and restrictive covenants, the most stringent of them was unenforceable. In ADP, LLC v. Trueira,2 the employee left his employment at ADP and joined a rival firm. Citing three separate agreements, ADP sued to enjoin the former employee from providing services to the competitor for a period of one year. The court found in favor of ADP on two of the three agreements but refused to enforce the broader terms of the third agreement, referred to as the RCA. The court concluded that the RCA included language that was impermissibly broad and did not serve the employer's legitimate interests because the other two agreements sufficiently protected ADP.

Utility & Transportation Contractor | october| 2018 43

The agreements at issue were referred to as the SRA, NDA, and RCA. The SRA and the NDA contained non-solicitation provisions that prohibited solicitation of clients of ADP for a period of one-year after ceasing employment. The RCA, on the other hand, was much broader. It included a one-year non-compete provision within any territory represented by ADP and imposed broader non-solicitation and non-disclosure obligations.

Labor Relations

ADP argued in favor of the more restrictive RCA arguing that it served its legitimate interests. The employee argued, however, that ADP’s legitimate interests were already adequately protected by the SRA and NDA and, therefore, the RCA was unnecessary.

The court agreed with the employee and found that the "legitimate concerns said to justify the RCA were adequately vindicated by those prior agreements." Furthermore, the court noted that other employees were not required to sign RCAs, which only successful salespeople were asked to sign. This, reasoned the court, indicated that "ADP sought to handcuff, and minimize the competitive clout of, a small class of particularly successful sales people."

Additionally, the court found that the RCA was overly broad to the extent it applied to all of ADP’s existing clients, regardless of whether the employee had any prior contact with them. Ultimately, the court ruled that the employee should not be prohibited from working for the competitor but would be prohibited from soliciting ADP’s clients to the extent he knew about them.

The prohibition on the use of ADP's proprietary information was

44 Utility & Transportation Contractor | OCTOBER| 2018

deemed to be reasonable and enforceable.

The employee argued that the non-solicitation requirements only prohibited him from soliciting ADP clients with whom he had dealings with. The court rejected that argument noting that the plain language of the agreements applied to any clients with which the employee was "involved." Applying this definition, the court found that the employee had likely breached the non-solicitation language and therefore, ADP was entitled to an injunction but only as to the obligations in the SRA and NDA. The court also shortened duration of the injunction to eight months, rather than the twelve-month non-compete period called for under the agreement.

These cases demonstrate that courts only enforce restrictive covenants to the extent they are necessary to protect an employer's legitimate business interests. Courts often narrow the scope of restrictive covenants in a process sometimes referred to as "blue lining." Employers must use caution in utilizing restrictive covenants in light of legal precedent and the potential legislation outlined above.

1

731 F. App'x 31 (2d Cir. 2018)

2

ADP, LLC v. Trueira, No. CV 18-3666, 2018 WL 3756951 (D.N.J. Aug. 8, 2018

About the Author. . .Alexander X. Saunders, Esq., is a senior counsel in the law firm of Peckar & Abramson, which represents employers in all matters concerning labor relations and employment law compliance. For more information, send an email to asaunders@pecklaw. com.

Cover Story

UTCA's 2018 Annual Convention draws a large crowd By: zoe baldwin

I

t’s official: we are running out of ways to say, “Thank you!” to all of you who help make the UTCA Convention a success year after year. The 2018 Annual Convention drew more than 1,300 people representing more than 300 companies to the Borgata Hotel and Casino in Atlantic City for three days of networking and festivities. Each year, the Convention draws new attendees and long-time members, forging a stronger industry for us all.

As always, a major highlight of the event was the exhibit floor, where more than 80 companies displayed their wares, running the full gamut of goods and services that help keep you in the business of building. The Convention is now in its fourth year at the Borgata, which once again provided a world class experience.

Kicking off the Convention was of course the annual Fall Golf Outing at the Atlantic City Country Club in Northfield. We could not have asked for a better turnout this year – we sold out six weeks before the event! Approximately 100 golfers came out for the outing and luncheon. Thanks to our golf sponsor, Tenna, and everyone who participated, the Fall Outing was an absolute success and set the bar for the weekend to come. Later that evening came the always-popular Opening Reception, sponsored by Foley, Inc. The crowd enjoyed food, drinks, and networking as

Bob Briant, Jr. and Tom Hardell present Jay Sciortino of Construction Risk Partners with the 2018 Larry Gardner Memorial Award

48 Utility & Transportation Contractor | OCTOBER| 2018

The Money Booth sponsored by Kennedy Companies is always a big attraction during the Exhibits at the Convention.

day one of the Convention came to a close.

On Friday, the Luncheon began with a welcome from President Tom Hardell followed by the presentation of the 2018 Larry Gardner Memorial Award to Construction Risk Partners for their consistent support of our industry, Association, and members. The Premier Sponsor of this enjoyable event was Williams, our amazing friends in energy and in the State House. After the award presentation, the crowd was enlightened with the history and policy lessons offered by Judge Napolitano. This informative guest was thanks to our gracious sponsors, the Operating Engineers Labor Employer Cooperative (ELEC).

Early in the evening was an event new to the Convention, a cocktail party hosted by the UTCA Young Professionals Committee.

The new Committee did a great job organizing and ultimately drew more than 50 young professionals. Sponsored by the law firm of O’Toole/Scrivo, young professionals from all parts of our industry were able to get acquainted and hopefully get some business at the Convention’s newest party.

This year’s President’s Reception and PAC Auction were a great success by all accounts, thanks in part to our amazing sponsors, C & H Agency and United Airlines. We were very pleased to be joined by leaders and representatives from the Operating Engineers Union Local 825. This year, attendees bid on nearly 100 items to benefit the UTCA Constructors for Good Government Political Action Committee. A new app for the silent auction called Handbid along with Professional auctioneering by Ritchie Brothers energized the room and helped to raise more than $31,000. Our industry PAC is one of the most important tools

The program closed with a drawing sponsored by our Premier Breakfast Sponsor, Construction Risk Partners for his-and-hers watches and a Microsoft Surface Pro. Congratulations to Bill Kretschmer of Komatsu who won the Surface Pro and Bhavik Shah of Ralph Clayton & Sons who took home the designer watches.

The exhibit floor came to a close with a grand prize drawing sponsored by Hoffman Equipment. Congratulations to Ron Powell, the lucky winner of a Napa Valley trip and wine tour for two!

Cover Story

Judge Andrew Napolitano addresses the sold out Friday Luncheon crowd.

we have in the fight for legislative and regulatory change. Many thanks to all of our donors and bidders, your generosity is critical to strengthening our industry’s voice in Trenton.

We would also like to thank the corporate sponsors of our PAC Auction Party, without whom, none of this would be possible: Atlantic Concrete Products, Cohen Seglias Pallas Greenhall & Furman PC, Earle Asphalt, EIC Associates, JESCO, M.L. Ruberton Construction, Northeast Remsco Construction, South State, Tilcon NY, and Vianini Pipe.

Joe Walsh presents Tom Hardell with a plaque thanking him for his service as UTCA President this past year.

Saturday afternoon brought the return of the Annual Spouse’s Program held at the Gypsy Bar. Sponsored by J. Fletcher Creamer & Son, Medium Craig McManus once again performed to a packed room, directly sharing his supernatural insights with many in the crowd. Elsewhere in the Borgata, there was stiff competition at the Fifth Annual UTCA Poker Tournament sponsored by Montana Construction. Luke Smith of Wells Fargo took home the purse of $425. Congratulations to our winner.

Tom Hardell presents Brendan Binder with the NJ Construction Industry Hall Of Fame in honor of his father, Bob Binder.

The Saturday morning breakfast program paid tribute to outgoing President Tom Hardell, with the traditional presentation of the personalized manhole cover provided by Campbell Foundry. Tom has always been an outspoken leader and advocate for the construction industry, working throughout his term to make sure that elected leaders at all levels of government were familiar with UTCA projects and priorities. Thanks to his leadership, the Association was able to pass legislation that reformed and standardized the process for differing site conditions. Tom also led a delegation to Washington, D.C. to meet with Congressional representatives to address industry concerns and the need for long term and sustainable federal funding for infrastructure. Tom has been a relentless advocate on behalf of our industry, and we cannot thank him enough.

Vincent (left) and John Maisano enjoy the Young Professionals Happy Hour.

The Annual Reception was sponsored by Komatsu and Komatsu Northeast and featured a professional red carpet style step-andrepeat, where UTCA photographer David Glasofer captured all the glam. Everything came together to make the Saturday night Gala a memorable affair: Bob Binder of Binder Machinery was

Utility & Transportation Contractor | october| 2018 49

Cover Story

posthumously inducted into the New Jersey Construction Industry Hall of Fame. His son, Brendan, accepted the award on his behalf. Later in the evening, Tom Hardell was recognized for his year of service and success as Association President, and Brian Tipton of Florio Perrucci Steinhardt & Cappelli, gave the Oath of Office to Joe Walsh, officially swearing him in as UTCA’s new President. Following his induction, Joe thanked everyone for their support and presented his agenda for the upcoming year.

The evening program continued with the presentation of the Fourth Annual Robert A. Briant, Sr. Memorial Award to Scott Lattimer of Clyde N. Lattimer and Son Construction. The award celebrated his achievements during his tenure as a UTCA Board Member, Past President, his leadership on several Association committees, and his tremendous dedication to the broader community. Scott thanked his family, colleagues, and the UTCA Board of Directors. This award recognizes the tireless efforts of Bob Briant, Sr. during his many years of service to the UTCA and is considered the Association’s most prestigious honor. Finally, Cheers the Band took the stage, which really got the crowd moving on the dance floor after a delicious dinner. Special thanks to Connell Foley for sponsoring the evening entertainment.

50 Utility & Transportation Contractor | OCTOBER| 2018

The UTCA staff and Convention Committee are applauded for planning this successful event. Next year we’re changing it up again as the Convention returns to the newly-designed Tropicana Casino & Resort. Our dates will be September 26-29, 2019.

Mark your calendar!

Brian Tipton, right, inducts Joe Walsh, UTCA's new President.

the alphabet soup of chemicals in our drinking water By: dan kennedy, director of environmental & utility operations

I

was recently talking with an old friend from college who hit me with an unexpected question. “So what do you know about PFOA?” This from a guy known for keeping it pretty simple, never going much past discussions on sports and our good ol’ days as undergrads. He knew I was professionally involved in these types of things and as a resident of a town in Pennsylvania with contaminated drinking water, his fears of the unknown lead him to ask this left field question.

The answer to his question is “a lot,” but that’s not what’s important. The main takeaway here is that he asked the question and that this topic is at the front of his mind; my otherwise-disengaged pal has joined the growing number of Americans worried about the safety of his family. Issues with the contamination of drinking water have hit a tipping point that many (including myself) believe will lead to a renewed push for expanded treatment in drinking water systems not seen since the early heyday of the Safe Drinking Water Act.

While the enormity of the issue is absolutely a concern for both the State and its water-drinking residents, the good news is that

Regulated vs. Unregulated Contaminants Amendments to the Safe Drinking Water Act in 1984 established a relatively unknown state entity called the Drinking Water Quality Institute (DWQI), which plays a critical role in developing drinking water standards. The DWQI is made up of scientists and water system professionals, and by design, keeps politics out of the process. The standards that have already been set through the process prescribed in the Act, as well as those set by the EPA directly can be found here: https://www.nj.gov/dep/standards/ drinking%20water.pdf Although the DEP goes through the rule-making process to establish a Maximum Contaminant Limit (MCL) for a particular hazardous contaminant in drinking water, the DWQI is responsible for researching and recommending to the DEP the actual limits for the MCL. This process can take years for each MCL and has drawn criticism from all sides for either being too passive or too aggressive depending who you are listening to.

Through a subcommittee structure, MCL recommendations are developed taking into consideration risk to public health, analytical methods and available treatment technologies. After the DEP receives this recommendation and after the Commissioner accepts it, he or she must direct the Department to proceed with formal rulemaking, complying with the requirements of the Administrative Procedures Act (APA).

The Pipeline

As New Jersey has more historic contamination than most, we are at the forefront of dealing with these challenges. Unlike the issues you have been hearing about related to lead contamination, issues around industrial chemicals in drinking water are directly related to source water. Setting standards for unregulated contaminants will help accelerate investment in drinking water infrastructure – no small task given the massive scope of work the effort would entail.

these issues can be addressed by installing rather uncomplicated water treatment technologies. UTCA members are well positioned to participate in this opportunity, but allow me to back up for a moment and provide some context for UTCA’s advocacy on the issue.

After that process plays out, an MCL has the effect of law and is implemented based on the new regulatory standards. MCLs become defacto Specific Ground Water Quality Standards, which are used to set clean-up levels for contaminated sites statewide.

As you can tell, this process is not only lengthy, but wonky and ripe with conflict. The outcomes have big implications for utilities and property owners, which is why most agree that the process should be left to the experts.

More information about the DWQI can be found here: https:// www.state.nj.us/dep/watersupply/g_boards_dwqi.html

Utility & Transportation Contractor | october| 2018 59

The State of New Jersey Leads the Nation During the last Administration, the Commissioner of DEP accepted recommendations from the DWQI to establish MCLs for several hazardous chemicals known to be in drinking water in New Jersey including Perflourononanoic Acid (PFNA) and 1,2,3 Trichloropropane (1,2,3 TCP). The Murphy Administration has stayed the course and the MCLs for both of these compounds have made their way through the APA process and are now lawful standards. What this means is that monitoring for these chemicals becomes a requirement for most public water systems and that water companies will have to address exceedances of the new standards. The puts New Jersey at the vanguard of this issue, well ahead of other states and the federal government.

The Pipeline

Most water companies that have exceedances of these MCLs will install a treatment technology to bring the water produced by the system into compliance. With PFNA, DWQI evaluated all possible approaches to treatment and concluded that at the present time the use of granulated activated carbon (GAC) treatment would be the most effective to install. This treatment technology has been installed proactively in NJ American Water’s Penns Grove Water System and is achieving the goal of removing PFNA. Two other recommendations (PFOA and PFOS, saving you the technical names) have been accepted by the DEP and are making their way through the regulatory process. These hazardous chemicals, along with PFNA, are just a few in a suite of chemicals known as PFCs. These types of chemicals were at one point in everyday use in homes, businesses, and military installations.

Many of these chemicals have been phased out of production and are no longer in use but the impacts remain. These chemicals, when ingested at excessive levels, have been linked to some cancers in humans and to reproductive and developmental problems in animals. Hence, the need for an MCL to protect public health. The issue of PFCs in drinking water has drawn national attention overshadowed only by the issues around lead contamination.

New Jersey has pushed ahead with new standards that, in most scenarios, will require impacted water companies to install new treatment technologies in the foreseeable future. These costs are all recoverable in the rate structure and the projects themselves are eligible for loans / grants from the I-Bank. Many projects are already in design or otherwise underway. Some have already been constructed. New Jersey’s water companies are well aware of this issue and the challenges ahead.

Looking forward, the DWQI workplan includes developing recommendations for MCLs for 1,4 dioxane, hexavalent chromium, chlorate, MTBE, percholate, and radon. Each has a set of unique complexities, including treatment options.

Construction Opportunities Once MCLs are in place, monitoring programs established and the options assessed, construction is the likely solution for many water systems. The design and installation of treatment technologies will also include system retrofits to accommodate the new components. Here are some important points to keep in mind:

60 Utility & Transportation Contractor | OCTOBER| 2018

• Treatment and system retrofits are eligible for I-Bank support through the federally funded Drinking Water SRF. If you encounter water companies not taking advantage of these programs, please let the UTCA know.

• UTCA will be seeking standardization of specifications for common treatment technologies that are known to address one or more MCL exceedances.

• UTCA will be seeking streamlining of DEP review processes for water companies that are seeking to install common treatment technologies to address one or more MCL exceedances.

• UTCA will encourage the BPU and DCA to support more proactive installation of treatment technologies prior to MCLs being established through final rule making by supporting their ability to recover costs within their rate structures.

• Members with competency in site remediation will see new project specifications to meet new groundwater standards for contaminated sites.

• UTCA’s Water Infrastructure Investment Program includes longer-term advocacy for a better way to address the thousands of unregulated chemicals in our drinking water. One MCL at a time will never get us where we need to be. Mandated broad spectrum treatment that can address multiple contaminants in areas of the state where there are known challenges should be discussed by the DWQI and if viable, legislation drafted and moved forward to enable that approach.

Please contact Dan Kennedy, Director of Environmental and Utility Operations if you would like to discuss this matter further.

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Feature Story

Anselmi & Decicco 60 Years of unusual challenges & Unique solutions By: al fritz & Thomas J. Anselmi Preface

T

his is the story of a New Jersey construction company that has been an integral part of this State’s infrastructure development for over 60 years.

Even before they formally incorporated in 1958, Anselmi & DeCicco’s founders had begun building a substantial construction business, specializing in residential site and paving work.

They steadily expanded their customer base to include schools and infrastructure construction. During this time they also initiated a relationship with their bonding company, which exists until today. Anselmi & DeCicco has played an ever expanding role in New Jersey’s infrastructure construction. Today, whenever you drive over a bridge, or ride a train, or fly into an airport in New Jersey – you probably have benefitted from Anselmi & DeCicco’s work.

Anselmi & DeCicco is still a multi-generational, family-owned business, employing over 100 professionals. Anselmi & DeCicco’s standards for excellence and value were shaped and nurtured

by Gus and Tom Anselmi, Sr. These standards are sustained by a dedicated and effective Management Team, currently led by President Henry Meyers. The company attributes much of its success to a loyal labor force, some of whom have been with the

Wantagh Parkway, Long Island

company for decades, and the good fortune bestowed on it by the grace of God. Anselmi & DeCicco has gotten to know and/or work with some of the most influential construction industry leaders in New Jersey, as well as individuals with outstanding reputations in the United States and on the world stage.

Anselmi & DeCicco is one of the original members of the Utility Contractors Association founded in 1965. Through the years, the association grew to include all types of heavy construction and became the Utility & Transportation Contractors Association of New Jersey. Anselmi & DeCicco has been a member since the beginning, proud to have been a part of all its accomplishments, and honored to be able to tell our story today.

You are invited to follow the story of Anselmi & DeCicco through six decades of development and growth.

Thank you.

Gus Anselmi & Tom Anselmi, Sr. 1958 through the 1960s

Sitting left to right: Bob Vermane, Sandy Carlstrom, Kathy Venier Standing left to right: E.J. Anselmi, Mike Buczynski, Craig Rumberg, Daryl Joyner, Nick DeRobertis, Tom Anselmi, Jr., Henry Meyers, Tom Anselmi, Sr., Gus Anselmi

72 Utility & Transportation Contractor | OCTOBER| 2018

Anselmi & DeCicco, Inc. was incorporated in 1958. The Anselmi brothers embodied the spirit of all entrepreneurs. Gus and Tom were the sons of immigrant Italian parents and grew up in a three bedroom apartment in Maplewood, NJ with two sisters and multiple relatives. Their father Dominic worked as a coal and ice man before joining with his wife’s uncle in a small construction business. After a brief time, he set out on his own. Gus had just graduated from Seton Hall University and joined his father right from the beginning, as did Tom Sr. while he was still in high

driving, foundations, bulkheads, fender systems, piers, and structures. Its growing expertise and experience in those areas allowed Anselmi & DeCicco to successfully complete larger, more intricate projects such as the laying of a sunken pipe line across the expanse of Barneget Bay.

The late 1960s saw Anselmi & DeCicco’s expansion into Connecticut mirroring its success in New Jersey, with pipe and utility work. In addition, the company’s growing reputation for successfully addressing challenging situations led to an ever expanding list of specialized site work. The 1960s also brought significant growth of the company’s professional office staff. New offices were established in Maplewood, NJ, which today remain as the company’s official headquarters. By the late 1960s, Anselmi & DeCicco was winning bids that were both growing in size as well as scope. For Gus and Tom Anselmi, Sr., there was nothing more satisfying than realizing their vision of building a successful construction company, which was flourishing by the conclusion of the 1960s.

The 1980s

The 1970s demonstrated how Anselmi & DeCicco’s forward-thinking management sustained the company’s growth momentum via the combination of a growing and recognizable increase in scope and capabilities, the effective use of select strategic alliances and the acquisition of niche companion companies.

The overall result . . . by the end of the 1970s, Anselmi & DeCicco had positioned itself to take advantage of the major technology changes that were going to be introduced in the 1980s.

For Anselmi & DeCicco, the 1980s was a time of significant growth, and represented substantial advances in the operating model of the company. Cutting edge technology was integrated into every project. And, while always an important component of all Anselmi & DeCicco jobs, engineering became an even more critical component of the company’s success.

Feature Story

school. Their father fell ill at a young age a short time later, and they took the reins of the new company. Gus and Tom were passionate about their company, and aggressively began to take advantage of bid opportunities that became open to them as a result of the incorporation. They began to win a growing number of larger construction projects involving pipe and utilities. One of the company’s early major successes was laying over 30,000 feet of new pipe for Berkley Heights, NJ. Anselmi & DeCicco quickly began to establish itself as a company that was capable and reliable--a company that could be trusted to complete unique or difficult jobs. It took persistence. It took sacrifice.

But, most importantly, it took the integrity and the conviction of the owners (Gus & Tom Anselmi, Sr.) that they could flourish in New Jersey’s infrastructure construction industry.

With the expanded scope of work in the early 80’s, Anselmi & DeCicco increased its office staff of knowledgeable, forward

The 1970s Nationally, the decade of the 1970s was impacted by a recessionary economy. Undaunted, Anselmi & DeCicco optimistically utilized the momentum of the 1960s to further broaden the scope of its work. The Connecticut division continued to capitalize on the reputation established in New Jersey for supporting suburban expansion. Excavation and site work projects escalated as the company became involved with foundation work, large pump stations, and utility structures.

It was in the 1970s that Anselmi & DeCicco established the ability to take on increasingly complex projects involving pile

Newark Airport

Dominic & Crew - Maplewood (early 1950's)

thinking employees. Additional engineers and technical support experts were brought in to manage new and increasingly sophisticated bid opportunities that were taken on by the company.

Henry Meyers was one of these new hires. He joined the company in 1982, after graduating from the University of Houston with a civil engineering degree, and is now the president of Anselmi & DeCicco.

Anselmi & DeCicco built its first bridge on Bloomfield Ave. in Fairfield New Jersey in 1980. The company quickly established its place as a prominent contractor for major bridge construction projects, including new bridge construction, rehabilitation of existing structures, and movable bridges. The company capitalized on its cutting edge technology and expertise in spread footings, caisson foundations, concrete, structural steel, and precast concrete construction.

Utility & Transportation Contractor | october| 2018 73

Feature Story

Anselmi & DeCicco’s diversified abilities and engineering skills soon expanded to include large sitework and remediation projects. Three significant projects included the remediation of the PJP Landfill (including subcontracting Red Adair to extinguish underground fires), the Manasquan Reservoir, a joint-venture with an Italian company (Lodigiani), and the initial stages of Liberty State Park in Jersey City.

The 1980s represented exciting times for Anselmi & DeCicco.

The company was rapidly expanding and winning larger and more complex bids. It had established a reputation for integrity, reliability, cutting edge expertise, and a team that was able to successfully manage projects of increasing size and scope. In sum, the 1980s set the stage for an ever increasing service base . . . and solidified the company’s reputation for solving unusual challenges with unique solutions.

Port Monmouth

Approaching the 21st Century, Anselmi & DeCicco was more than ready to continue to expand in all areas of infrastructure construction.

The 21st Century (2000 through the Present)

The 1990s Following the advances made in the 1980s, Anselmi & DeCicco continued to be a leading contractor for many of New Jersey’s construction projects, including the Liberty Science Center.

The expansion into larger highway and infrastructure applications was a natural evolution from the company’s expertise in bridge and utilities work throughout the Tri-State area. During the 1990s, Anselmi & DeCicco worked extensively with NJDOT, NJ Turnpike Authority, and NYDOT. Notable projects included: demolition and bridge rehab of the Rte 1&9 viaduct in Newark; new interchange, rehab and widening of the Passaic river bridge on Rte. 46 & 20 in Clifton; and the Beaver Dam Bascule Bridge in Pt. Pleasant, NJ. New York projects included: the Meadowbrook Parkway Bascule Bridge and Wantagh State Parkway Bridge, both in Long Island.

Another major accomplishment in the 1990s was Anselmi & DeCicco’s advancement into airport construction. The company’s established expertise in foundation, footing and utilities work contributed to winning its first contract for Newark Airport’s Terminal C project. This project established a reputation for handling construction under the strictest safety and security standards, around highly sensitive aircraft and machinery, along with the ability to manage projects with extremely tight time schedules inherent in airport environments. The company’s airport contract work soon evolved to include taxiways, structures, foundations, and fuel lines.

74 Utility & Transportation Contractor | OCTOBER| 2018

Anselmi & DeCicco launched the 21st Century with sustained growth of its ever expanding services. It also welcomed the influx of a new generation of Engineers & managers, including Tom Anselmi, Jr. Tom started working for Anselmi & DeCicco in the 1980s as a laborer during his summers of high school and college. After graduating Syracuse University in 1995, he started full time in field supervision, and progressively moved into the main office. He is a founding member of the company’s board of directors and has recently become a shareholder in the company. Importantly, Tom and the new generation of managers have blended seamlessly with, and share, the founders’ dedication and optimistic vision of future directions.

The first decade of the new millennium saw continued growth of the construction started in 1999 on Newark Airport’s Terminal C. It also saw expansion into new areas, including refineries and train station construction. A wide variety of projects characterize this decade: the Rte. 46/23/80 interchange, involving 10 bridges, reconfiguration of the interchange, and utilities . . . all while maintaining traffic flow; reconstruction of the Metropark train station; taxiway, drainage, utilities and site work for the Te-

Safety Training

terboro Airport; and replacement of the Rte. 1 bridge over the Millstone River, which earned a National Award for Best Value Engineering.

Recently Gus’s grandson, E.J. Anselmi, has joined the company as Asset & Equipment Manager. E.J. is now the fourth generation, combining established values with new ideas, and continuing the realization of the vision of the founding fathers for a vibrant, successful company in the demanding, ever progressive construction world.

In 2018 Anselmi & DeCicco celebrates its 60th Anniversary of incorporation. Founders, Gus and Tom Anselmi, Sr., built their company on strong principles, hard work, growth with changing technology, and the determination to meet, and learn from, each new opportunity and challenge that presented itself. The company has grown and thrived. Through the years, management, technology and opportunities continue to expand under the company’s future-focused leadership. Its underlying principles have stood the test of time. Its progressive thinking ensured consistent and successful growth. Anselmi & DeCicco has secured its place as a dynamic and respected member of the Construction Industry in the Tri-State area. It is prepared and eager to meet, and grow with, the ever-changing unusual challenges of the industry and provide top quality unique solutions.

Feature Story

Now, well into the second decade of the new millennium, Anselmi & DeCicco’s future is bright. The company is thriving on an ever-increasing diversity of projects and services. Brand new Plauderville and Wesmont Train Stations, Newark Penn Station, and award-winning Rte. 18 over Rte. 1 project, have launched this decade on a successful start.

The Legacy

Utility & Transportation Contractor | october| 2018 75

By: nancy damato, rda benefit services

A

s 2018 comes to a close and we look forward to 2019, there are new challenges and opportunities that employers should be considering, as it pertains to employee benefits, benefits administration and compliance. Having a competitive employee benefits portfolio is especially important in attracting employees in today’s job market.

employees, for example, it is estimated that the savings could be more than $28,000 a year. Efficiencies can be created by using this technology for housing company policies and procedures, completing the processes of onboarding a new employee, maintaining accurate records on all current employees and eliminating many manual tasks.

Employee Benefits Benchmarking Reports

ERISA Compliance

Now is the time of year when most companies review their employee benefits portfolio for the upcoming year. Did you ever wonder what other companies in your industry are offering their employees and how your benefits portfolio compares? An Employee Benefits Benchmarking Report is available to provide you with all sorts of data on the types of benefits being offered by other companies in your industry. This report is very comprehensive and takes into consideration your location and number of employees, to give you the best data available. Benchmarking results provide detailed information about various benefits being offered, including health care benefits, life insurance and disability benefits, dental and vision, various combinations of these benefits, as well as paid time off and retirement benefits. This is an excellent tool to assist you in creating a competitive benefits package.

ERISA is a federal law that requires employers to adhere to certain regulations in regards to their health and welfare benefit plans. There is no small group exception to ERISA compliance—all size groups must comply. Compliance includes having a compliant Plan Document and Summary Plan Descriptions, providing annual notices to employees, 5500 Filings, summary annual report requirements and more. Typically, a wrap document is used to bundle all of an employer’s plans into a single plan document. There are many vendor solutions available to assist with a company’s compliance with ERISA.

Cost Saving Strategies for Health Insurance Employers are constantly challenged to find cost-effective, high quality health benefit programs. And of course, it is a known fact that offering superior benefits is key to attracting and keeping quality employees. Do you just renew the same plan every year because it is easy? We encourage you to consider alternate options, that can provide better benefits at a lower cost and include additional benefits and resources that encourage employees to take better care of themselves and become better consumers.

Wellness programs, telemedicine, 24/7 nurse line, resources to manage chronic conditions, gym reimbursements, to name a few, are all being included with many health programs today.

Including voluntary benefits and other non-traditional benefits is also important to employees.

Automated Benefits Administration Are routine HR tasks taking up a great deal of time? Do you have enough staff to manage all the HR functions that are necessary in today’s world? There are solutions that can automate these processes, so that they can be easily managed through an online portal. This can dramatically save time and money for your organization, as well as reduce errors. For a group with 75

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looking forward to 2019: a fresh look at employee benefits

Financial Wellness Studies have shown that employers and employees both agree that financial wellness programs are valuable. Statistics show that 2 in 5 employees feel less than financially well and these employees are very concerned about short-term goals, such as managing their debt, paying everyday bills, and living within their means. Healthcare out of pocket costs also play a role in a family’s financial wellness situation. A recent study by Met Life showed that employees are turning to their employers for assistance in addressing financial wellness, but that just 18% of employers are actually offering financial wellness programs, education, workshops and other financial tools. This is a much needed addition to any company’s benefits portfolio.

Businesses of all sizes face the challenges of keeping up with all these changes and requirements, when it comes to all aspects of employee benefits. Employers should have resources that can provide them with the information they need to be informed and stay compliant in today’s complex environment, as well as offer them the best in innovative employee benefit programs.

About the Author. . . Nancy Damato is a partner at RDA Benefit Services, LLC. RDA Benefit Services has been providing comprehensive employee benefit programs to UTCA member firms for over 20 years.

To learn more about the benefit programs we provide, please contact us at 855-693-0772.

Utility & Transportation Contractor | october| 2018 83

By: craig mongeau, Construction equipment guide, editor in chief New Jersey’s George Harms Construction is a leading contractor in the Garden State.

only 100-ton machine in that class that is manufactured here in the U.S. in Shady Grove, Pa.

At the recent Manitowoc Group’s Crane Days event in Shady Grove, Pa., the company didn’t set out be a leader there, but when Rob Harms, CEO of George Harms Construction, saw a prototype of the new Manitowoc MLC100-1 crawler crane in action, he knew his company needed to purchase one — and as a result, the company became the first in the United States to place an order for the new 110-ton machine.

“Harms Construction was impressed that the manufacturing has been brought back to the United States,” Watters continued. “All manufacturers, including Manitowoc, have until now felt that they could not compete with the foreign manufacturers on the smaller machines. These are clearly more of an assembly line process and conventional wisdom says that we don’t do that well anymore. But Manitowoc is stepping up and saying we can take foreign manufacturing on at what they do well and we can beat them at their own game.”

What impressed Rob Harms about the MLC100-1 right away?

“The simplicity in the design,” he said. “I also was impressed with the counterweight system, the power plant, the controls, the cab, the way you can transport it.”

And there was another reason why the Manitowoc MLC100-1 appealed to Harms — it’s made in America.

“That’s a big deal for us,” he said. “If you look at any of our cranes, we have an American flag flying. I mean big American flags.”

Tim Watters, president of Hoffman Equipment of Piscataway, N.J., the dealer that sold the MLC100-1 to Harms Construction during the Crane Days event, echoed the patriotic sentiment.

“Let’s start with that it’s manufactured in the United States,” he said. “It is a feature that resonates with the customers and it is the

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harms construction buys first mlc100-1 in united states

Listening to Customers If a crane (or any piece of construction equipment) isn’t manufactured to meet the demands of contractors to efficiently and productively do their jobs, however, it doesn’t matter where it’s made — and the Manitowoc MLC100-1 was designed to meet the unique needs of American contractors.

“It is a very transportable machine,” Watters said. “It is designed to move in an operable configuration, where you can load and move the machine on a trailer. The next big feature is the cab, because it’s made in America for Americans. We know what Americans want. They need a wide body cab and that is what the machine has. It self assembles. It is optimized for transportation and after service support.”

Another important feature of the MLC100-1 is the crane control system, or CCS. “The Manitowoc company utilizes the same operator station — they call it the CCS, crane control system — in every single crane they manufacturer,” Watters said. “Any operator can go from any machine to another machine and they will find the same layout of levers, buttons, screens — every one is the same. This crane also will integrate the CCS into the operating system.”

The crane operates via Manitowoc’s CCS, which can be used in conjunction with the company’s Diagnostic Code App to quickly analyze diagnostic screens.

The MLC100-1 has an improved, wider cab design, with easier access to the cab made possible by additional grab bars and a movable left-hand console. In addition, the cab's high-back seat with head rest and electronic seat controls combine with improved HVAC performance for best-in-class comfort.

When Manitowoc launched its CCS in 2014, the company became the first manufacturer to introduce a common operating platform across multiple product lines. Each CCS unit features the same control layout, including a jog dial and central display

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NEWS

with standardized symbols. There are only seven major components that make up CCS, simplifying service and maintenance and delivering better reliability. The seven components are: crane controller, safety controller, small IO (input/output), large IO, joysticks, jog-dial and display. Each can be easily replaced if necessary, or even switched from another machine for the purposes of completing a job.

And it was this relationship and trust that Harms Construction has both with Manitowoc and Hoffman Equipment that led it to purchasing a prototype — Harms is confident that when the MLC100-1 is delivered to the company in the first quarter of 2019 that it will be a productive and important addition to its sizable crane fleet.

Other Features of the MLC100-1 The MLC100-1 has a 110-ton capacity and a maximum boom length of 200 ft. The new-model crawler crane has a load moment of 2,680 ft.-kips and is powered by a 300 hp Cummins 6.7 L Tier IV Final engine.

The crane features a self-assembly hook, which enables the operator to install the counterweight without any outside assistance.

During assembly, the crane uses a single segment of hoist line with a button termination, which is routed through sheaves in the boom butt. This eliminates the need to assemble the boom top and enables operators to get to work faster when compared with competing cranes in the same class.

The MLC100-1 has an improved, wider cab design, with easier access to the cab made possible by additional grab bars and a movable left-hand console. In addition, the cab’s high-back seat with head rest and electronic seat controls combine with improved HVAC performance for best-in-class comfort.

End users can customize the MLC100-1 with numerous options to suit their specific job site needs. These include a free-fall option, a third-drum option with 72-ft. wire rope, generator-powered boom lights and a cold weather package for high performance in the toughest climates.

The crane allows for easy service with high-visibility sight glasses and quick drains on every gear box. The main valve also is easily accessible.

A Long-Time Relationship Harry Rice, crane specialist of Hoffman Equipment, said all of these features of the MLC100-1 are a direct result of the Manitowoc Group’s focus on end users and incorporating what they’ve requested into its cranes’ designs. Simply put, they’ve been listening to their customers “Harms Construction has a long-time relationship with both Hoffman Equipment and Manitowoc,” said Rice. “They definitely feel that there is a great line of communication now between Manitowoc and the customer and what they actually want in a crane in today’s market.”

“They [Manitowoc] are building cranes for their customers now, where before they were building cranes for what they thought the need was,” said Harms. “Now, they are building it for what the actual need is. That was a big take away from our visit to Cranes Days and touring the manufacturing facility — that was a positive thing for us.”

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The MLC100-1 is the only 100-ton crawler crane proudly made in America.

“Harms has always been a great customer of ours,” said Watters.

“They own approximately 10 Manitowoc cranes and have been buying Manitowoc cranes since the early 1990s. They attended Crane Days primarily to see the new line that has been set up for Manitowoc crawlers since Manitowoc moved the crawler manufacturer process from Wisconsin to Shady Grove. But they were not planning on buying a crane when they got in the car that morning. After the introduction of the MLC100-1, we walked up and looked at the machine and within about 30 minutes they were pretty impressed with what they saw. They said ‘how much is it — we’ll take it.’”

Anticipating 2019 Rob Harms is looking forward to delivery of the MLC100-1 in early 2019 and already has big plans for it.

“We plan to use the new MLC100-1 mostly on our highway projects,” he said. “We have a project in Jersey City … the Route 7 Wittpenn Bridge. It’s a $197 million New Jersey DOT project that is going on right now. It’ll most likely go on that job and hopefully, we have more jobs coming up where we’ll put the crane to work. We had a big need for a 110-ton crane and we’ll be keeping it busy. It’s always nice to be the first one and we are excited to take delivery.”

Feature Story

pkf-mark iii replaces raccoon creek bridge By: george m. lobman, UTCA director of transportation agencies

I

n the early months of 2011, design work for the Route 130 Bridge over Raccoon Creek in Logan Township Gloucester County, NJ was under way. The Design was a partnership between the NJDOT Design Staff and AECOM, a Heavy Highway Design firm located in Piscataway, NJ. This just over 1-mile long project was to replace an existing lift bridge built during the last World War and will increase traffic lanes and allow for a center island barrier curb throughout.

The bid award was to PKF-Mark III of Pennsylvania for $52,981.60 on March 7, 2016.

The project was not going to be an easy fix in that it required a tremendous amount of Ground improvements due to the wet and marshy ground conditions adjacent Right-of-Way. The existing bridge is a structurally deficient lift structure and is being replaced with two parallel four-span continuous steel stringer fixed structures.

Although this project is not a mega project, it has some major elements of work especially the efforts at ground stabilization, heavy utility relocations, and in-water cofferdams.

The water restriction in the area would be very hard to work around if not for the in-water cofferdams. However, as fate would have it the first cofferdam was a monster to get accomplished. The cofferdam was to be outside the existing structure’s footing. During the driving of sheeting there was a subsurface obstruction found. A great amount of time and extra work went into sealing the completed cofferdam and yet it was still not tight enough to draw down the encapsulated water. A special sub-contractor, Sub-Technical Inc., was called in to seal the underwater leaking sheets so that a proper dry work area could allow for the construction of the new bridge foundation.

The project is about 50% complete at this time and the challenges still appear daily. Utility poles seem to always need to be temporarily moved out of or back into a project site. Ob-

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Existing bridge to be demolished.

viously, the summer is not the best time for this in that power is at a high demand during the hottest months. This results in power shutdowns being restricted until after mid-September.

The next stage of work calls for the demolition of one of the last few steel lift bridges in the State. This structure is over 90 feet high and top loaded with steel cables and a large pully system utilized to raise the bridge roadway above traffic for the navigable waterway below. This bridge has been in place since the 1940s and it remained operational right up to its recent demolition. The New Jersey Department of Transportation performed all roadway and permit operations while AECOM designed the new two structure components. Work is on-going and should be completed in mid to late 2019.

Panoramic view at first half completion.

96 Utility & Transportation Contractor | OCTOBER| 2018