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President’s Message   When I became UTCA president this past September, I decided to focus on and increase our membership recruitment and professional training opportunities. I’m glad to report that nearly halfway through my term I feel the Association is on track to meet and exceed my goals.   UTCA hosted 13 training seminars this past winter which were geared around safety and personal development. More than 350 people attended these educational opportunities. Many of these training seminars are facilitated by leading professionals in their respective fields and provide a tremendous value to our member firms. I would like to thank Dan Neville for his continued efforts in coordinating these events. I encourage all of our member firms to send their associates in an effort to strengthen, not only your individual company, but our industry as a whole.   On behalf of our Board of Directors, I would like to thank our membership for their continued dedication and loyalty to our association. We have worked tirelessly to create the premier industry-leading organization. Our members and sponsors are the backbone of the UTCA and the Association thrives because of your support, participation and commitment. Thanks to the recent renewal of the Transportation Trust Fund, we anticipate economic conditions will continue to improve for our industry and I encourage each of you to revisit your vendors, suppliers, sub-contractors, and industry professionals who are not current members and urge them to join our association. The UTCA continues to be the association of choice for the construction industry in New Jersey, and as you know, they will benefit from membership.

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  I would like to recognize Foley, Inc. on celebrating 60 years in business. Congratulations to the entire Foley family on achieving this incredible milestone! I would also like to congratulate Atlantic Infared on celebrating 15 years in business. Well done! In addition to our features, in this magazine you will find the latest updates on legislative, safety, and labor issues impacting our industry.   I look forward to seeing many of you at our upcoming Northern Membership meeting on April 27th at the Pines Manor in Edison and also at our Sporting Clay event on May 2nd at Lehigh Valley Sporting Clays in Coplay, PA. The Northern Membership meeting provides excellent networking opportunities and the UTCA staff always secure timely and informative speakers. The bi-annual Clay Shoot is a day of fun and philanthropy as we gather to support the Robert A. Briant, Sr. Memorial Scholarship Fund.   It is a privilege to serve as UTCA President. I am eager to see continued progress during the remainder of my term and for many years to come.

Best regards,

Jim Coddington Utility and Transportation Contractor, APRIL 2017


APRIL 2017

Contents

Volume XLII, Number 2

Published Bimonthly During 2017 Office Address: 1670 Route 34 North Farmingdale, NJ 07727 Mailing Address: PO Box 728 Allenwood, NJ 08720 (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Anthony Attanasio Zoe Baldwin Dan Neville Advertising Manager: Helene Nasdeo

Features 4 20 29 33 43 55 64 89 95

Foley CAT Celebrates 60 Years In Business Atlantic Infrared Celebrates 15 Years In Business A Message From Assembly Environment Chair, Tim Eustace Remembering NJDOT Commissioner Jamie Fox 2017 Changes for the Group Health Insurance Market Choosing the Right Retirement Plan for Your Business PKF’s Pile Driving Rigs Payoff Replacement of the Affordable Care Act - Where it stands & What you Should Know ARTBA Foundation Safety Certification Program

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

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Departments 2 33 48 69 77 80 83 93

President’s Message Legal Dig Engineering Exhange Accounting Corner Labor Relations Safety Perspective Legislative News Financial Overview

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Cover

Pictured on the cover, standing left to right, are Jamie Foley, Kim Foley and Ryan Foley.

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Cover Story

FOLEY CAT CELEBRATES 60 YEARS IN BUSINESS

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By: Anthony Attanasio, Executive Director

  or Jamie and Ryan Foley, CEO and President respectively of Foley CAT, being the third generation to run the family business is a tremendous honor, but also a tremendous responsibility. The brothers relish this challenge and continue to adapt and grow their beloved company to meet the needs of today’s ever changing market. Now celebrating their 60th year in business, Jamie says they embrace the opportunity to take the Foley brand to even greater heights while preserving the company’s core mission. “Our vision as a company is to create customer experiences that create customers for life. The way we achieve our vision is by following our company’s values.”   Foley Inc.’s values are trust, communication, relationships, mutual respect, and astonishment. These values guide every decision the company makes, and the brothers attribute adherence to these values as the main reason for Foley’s continued to growth.” “Values are the secret to our success, it’s proven more true than we ever could have imagined” says Ryan. “Going hand in hand with our values are the people we employ. The caliber, commitment, and capabilities of our employees are incredible.”

gan operating their own business 45 years prior to their involvement with Caterpillar. In the early 1900s, Edward J. Foley, Sr. was working as a foreman for a bicycle manufacturing company. It was around this time that automobiles sparked his fascination, and in 1911, he opened the first Foley family business: a MitchellLewis Motor Company dealership in Newark, NJ. After a decade of successful operation, Edward Sr. saw the writing on the wall for Mitchell-Lewis Motors, and opened a Chevrolet dealership on Newark’s bustling Broad Street.   Edward Foley, Jr. was not only destined to follow in his father’s footsteps running the family business, he was also fated to be the Foley that created the partnership with Caterpillar Inc. Before joining the family’s Chevy dealership, Edward, Jr. worked for General

  Jamie and Ryan are quick to point to Chief Operating Officer and Executive Vice President Susan Connolly as the person all employees should strive to emulate. Susan was instrumental in developing the company’s first set of values twenty years earlier, following a visit to the Caterpillar’ factory in Peoria, Illinois. Susan has said what she admires most about the company is that “Foley Inc. doesn’t fear change; it embraces it.”   The Foley CAT we see today rests upon a foundation built by Jamie and Ryan’s father Edward “Kim” Foley III, their grandfather Edward Jr., and great-grandfather Edward Sr. The Foleys be4

Foley Rents newly renovated showroom featuring available jobsite equipment including concrete cutting saws, air compressors, concrete and material handling power buggies, rammers, and utility vehicles to name a few. Utility and Transportation Contractor, APRIL 2017


Needless to say, Kim’s boys have assumed the mantle admirably, and carried on the family’s tradition of customer service, versatility, and forward thinking. After graduating with a bachelor’s degree from Colgate University and an MBA from UNC at Chapel Hill, Jamie, like his father, first worked outside the family business. Gaining experience in a different, but no less difficult field, Jamie worked on Wall Street as a foreign currency trader at Credit Suisse for several years before joining Foley in 1999. Also like his father, Jamie would get to experience many sectors of the company on his eventual rise to CEO. He began as an assistant sales manager, working the floor for six months before being appointed to oversee the newly formed light construction sales force.

A Foley technician performing a Cat Certified Rebuild (CCR) on a 773D off-road dump truck. A CCR consists of rebuilding every component, more than 350 tests and inspections (plus the automatic replacement of more than 7,000 parts), giving the machine a “second life” at a fraction of the cost of a comparable new machine.

Motors and proudly served our country in the Navy during World War II. In 1957, a call from a business associate led Edward Jr. to an opportunity to become a Caterpillar tractor dealer. Little did he know, he was setting the business on a 60-year course of growth and fortune as a member of the Caterpillar family of dealerships. In 1957, Foley Machinery was born in Union, New Jersey. The Foleys purchased the assets of former CAT dealer Smith Tractor, and quickly transitioned into the tractor sales business. Not long after, Ed Jr. sold the family’s Chevy dealership and after a decade of business in Union, moved Foley Machinery to a 20-acre tract in Piscataway, New Jersey.   Kim Foley began working full time for the business in 1971, starting out as a truck engine account manager. In the early years, Ed Jr. would continually move him from job to job, leading Kim to joke that at the time, the rest of his coworkers probably thought he was incapable of holding a full time job. However, in 1979, after eight years of working his way through every aspect of the operation, Kim’s father named him company President. In 1984, Ed Jr. retired and sold the business to Kim.   After Kim became CEO of the now Foley Inc., the company took off and experienced incredible growth. Kim, like all of the Foleys, attributed much of the company’s success to the many dedicated, talented, and motivated employees that he considered partners in the journey. Much of the Foley success is surrounded by this concept of partnership. They not only believe in the value of partnering with employees, but also with their customers and suppliers. Kim was once quoted as saying, “We want to be the unbeatable business partner… We want to provide primarily Caterpillar-driven solutions that help our customers build and power a better place to live. That’s what it’s all about.”   As the second generation to run the business, Kim knew the true test of a company’s strength was successfully passing the business down to the next generation. Kim said “The fact that you’re still around is testament enough, but the real challenge is: can you get the business from one generation to the next? The successors must understand the dynamics of the business, and understand its challenges - are they willing to work hard? Are they really appreciative of the opportunity that’s being presented to them?”

  In 2001, Jamie truly left his mark on the family legacy when he took over the struggling Foley Rents division. Since its inception in 1996, Foley Rents had yet to turn a profit. In his first year running the division, Foley Rents had its first profitable year. His second year running the division, profits doubled. It didn’t take long for Jamie to earn his way into the Executive office, and in 2005 he was named company President.   Ryan Foley also joined the family business in 1999. He had graduated from the University of Vermont with a Bachelor of Science in Business Administration, and spent five years learning the trade as a sales representative for Burton Snowboards. While he didn’t go directly into the family business, Ryan always knew that was where his career would end up.   Ryan started as a customer support representative until 2002, when he was tasked with launching the company’s hydraulic business. He continued his ascension through the company, serving in the roles of heavy construction sales manager, VP of customer relationships, seven years in the Foley Rents division and most recently, as President.   From 2004 to 2006, Foley Inc. enjoyed three consecutive years of record sales. By 2007, Kim was feeling confident that his sons were ready to take over the day-to-day operations of the company. He put into action a transition plan that would transfer the company to his sons over a two-year period while he assumed the role of Chairman. One major event that the Foleys could not have seen coming, was the stock market crash and the great recession that followed. Between the years 2009-2011, sales would drop 33% and the company would lose more than 100 employees. However, Kim taught his sons well; they were ready for the challenge, guid-

Staging equipment in preparation for a customer appreciation event, skid steers line the parking lots.

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ed the company through very difficult years, and emerged stronger as a result.   In 2011, the economic storm had passed, and with a renewed focus on the customer, Jamie and Ryan embarked on the company’s third strategic plan. As Jamie put it, “Who are we serving, and what are their needs.” A new mission statement was also borne of this process: “We respond to our customers with innovative solutions to help them build and power our future!” The new plan and mission were rolled out in August of 2012 and their customers were grateful.   With the ink barely dry on the new mission, the Foley commitment to innovation and responsiveness was immediately tested during a major crisis. In October of that year, Superstorm Sandy ripped through our beloved state, leaving thousands of families and their communities in tatters. They knew that New Jersey was experiencing the worst natural disaster in its history, and that companies like theirs would need to provide support to government, construction companies, utilities and many more.   The Foleys immediately joined their corporate neighbors and partners to answer the call of duty, and kept the company open 24/7 for three weeks following the storm. Equipment was procured from all over America and their power generation division truly saved the day. Jamie recalls, “The state needed our help and we were able to deliver and help make a difference in the recovery efforts. We also took the opportunity to learn from the storm and have begun a new resiliency preparedness training program for our customers. We now pass down our lessons learned from the storm to help keep our customers better prepared for the next incident.”   One reason Foley Inc. was so ready to respond in the midst of disaster, was the lessons passed down by Edward Sr., Edward, Jr., and Kim. The Foleys have always recognized that the economy,

and business as a whole, lives in cycles. Sales will rise and fall, customers will come and go; but a successful company is just as prepared to take risks when times are good, as they are to make tough decisions when times get tough.   This versatility was key when it came to another difficult time for the company and our industry. During the years leading up to the renewal of the Transportation Trust Fund, Foley began to notice that some of their best customers were not replacing equipment. Many customers had become risk averse after the crash of 2008, and the company recognized the need to pivot. The brothers built up the rental fleet, and once again proved their mission true through their responsive ability to anticipate and meet the needs of their customers. The renewal of the Trust Fund in 2016 has several of Foley’s clients feeling very bullish, and the company is ready to shift its focus back to sales as the construction industry comes calling.   The future looks bright for Jamie and Ryan Foley. Despite Caterpillar Inc. dealing with a federal investigation and five years of declining sales, Foley Inc. just completed its fourth year of record success. Their strategic alignment with Caterpillar is as strong and necessary as it ever was. Jamie once again returns to the concept of partnership. “Caterpillar has been there to support us when we needed it, and we will be there for them.”   Looking ahead to the future requires looking back and appreciating your past. The Foleys recognize that it has been five years since they last revised their strategic plan and that it may be time to begin again. With advancements in technology increasing at a rapid pace, Jamie and Ryan intend to be continually ready to adapt in order to meet their clients’ needs.   This August, Atlantic City will host Caterpillar Inc.’s worldwide meeting. Jamie and Ryan are looking forward to this international gathering taking place in their home state. The two men who grew up in the Caterpillar family are eager to meet with their peers and celebrate 60 years of partnership, friendship, and success. UTCA congratulates Jamie, Ryan, and the entire Foley family on reaching this milestone, and look forward to another 60 years of growth and prosperity.

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Featured Article

ATLANTIC INFRARED CELEBRATES 15 YEAR IN BUSINESS

Marilyn Grabowski, aka “ The Lady In Red”, Continues To Break New Ground

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By: Anthony Attanasio, Executive Director

  ollowing in the footsteps of her grandmother Florence DeRosa, Marilyn Grabowski, aka the “Lady in Red,” continues to overcome barriers as she forges ahead in a largely male dominated industry. As Atlantic Infrared celebrates its 15th year in business, Marilyn can only imagine the pride and joy Florence would feel looking upon the powerful and successful CEO her granddaughter has become. Marilyn now proudly owns and runs three separate WBENC certified construction companies that service the utility industry.   The story of Atlantic Infrared is one of a company that began in a closet… literally. Atlantic Infrared was born in 2002 when Marilyn and her husband Tom put together a 3-person operation and

Pictured left to right are UTCA Executive Director Anthony Attanasio, Assemblyman Dave Rible (R-30), Marilyn and Tom Grabowski. 20

Marilyn set up her office in her condo’s walk in closet. Her operation now boasts more than 100 employees, and on Valentine’s Day, the 15th Anniversary of their official business certification with the State, the Grabowskis held a ribbon cutting for their brand-new world class facility located in Wall, New Jersey. These 15 years of growth and success began from very humble beginnings - much like her grandmother’s business did so many years earlier.   To appreciate what Marilyn has built with Atlantic Infrared, it is important to look back at her roots growing up as her grandmother’s sidekick. Marilyn’s great-grandmother passed away when her grandmother was only 17 years old, leaving Florence to raise five siblings on her own. At the age of 40, Florence earned her high school equivalency degree, got a driver’s license and went into the real estate business. However, as Marilyn would do so many years later, Florence wasn’t satisfied working for other people; she wanted to be her own boss, and launched her own business building homes and apartment buildings.   In her youth, Marilyn spent Saturdays working with her grandmother. She would travel to different job sites and spend time selling houses with her. In a true example of what a small world we live in, her husband’s father John had his own business installing vacuums in homes and often worked for Florence as a subcontractor. Tom would regularly tag along with his father to learn the family business. It brings a smile to Marilyn’s face to think about the real possibility that she and Tom were probably at the same construction sites together, but wouldn’t actually meet and fall in love until they were in their 40’s. Utility and Transportation Contractor, APRIL 2017


firms not to take on more business than they could handle, and advocated to the utility companies that DBEs and WBEs needed far more mentoring than they receive through the state.

Ribbon cutting ceremony at Atlantic Infrared’s world class facility.

  The couple met in 1999 at the Atlantic Club in Wall. Their first job only paid $500. She adopted a one-job-at-a-time philosophy, and within three years, had completed 300 jobs of this nature. She often credits her memory as her greatest gift. Marilyn prides herself on remembering every job, every customer, the work that was performed, and the people she worked with throughout the process. This philosophy and work ethic led to several business relationships that continue to flourish to this very day. While Marilyn ran the business side of Atlantic Infrared, Tom earned his reputation as the man who “magically moved water” on paving jobs. Marilyn would sell to municipalities and engineering firms on the benefits of the infrared process, and Tom and the company’s ever-growing operations team continued to deliver a superior product.

  Marilyn’s success, her ability to market her brand, and her mentorship of small, women, and minority owned businesses has garnered several prominent awards and recognitions. In 2009 and 2012, she was the recipient of the SDDC Outstanding Service Award. In 2014, she was recognized in New Jersey Monthly magazine as one of the state’s “Top 25 Leading Woman Entrepreneurs.” In 2015, she received the Enterprising Women Award and named in NJ Biz’s Top 50 Women in Business. In 2016, Marilyn was recognized by Professional Women in Construction as a Woman of Achievement, in addition to receiving an award from the Women President’s Organization as one of the 50 Fastest Growing Women Owned Businesses.   On February 14th of this year, Marilyn and Tom Grabowski cut the ribbon on Atlantic’s new corporate headquarters in Wall, New Jersey. However, it was not only Atlantic Infrared that was celebrating the occasion. Over the years, Marilyn has expanded the size and scope of her operation and has even started two new ventures. In 2009 Marilyn added Atlantic Infrastructure to perform larger milling and paving projects for utility companies. In 2011, Marilyn took her operation to even higher levels when she formed Atlantic InfraTrac, which specializes in performing utility mark outs for Verizon, Elizabethtown Gas, Atlantic City Electric, and New Jersey American Water.

  Marilyn beams with pride when she speaks about the business partners she has collaborated with for most of her 15 years in business. She points to Fletch Creamer and Joe Walsh of Creamer, Frank Evans of Skoda, and Jim Mazzella of Riverview Paving as mentors that helped teach her the industry. Today she shares this knowledge with CIAP interns-the firm has employed 12 civil engineering students in the last eight years with two of them now joining full time.   As Atlantic Infrared began to work on larger and more complex jobs, Marilyn’s influence in the infrastructure community continued to grow as well. She credits much of the company’s success to consistent branding – both on the jobsite and on her person. She wants to be known as the Lady in Red, and the color red is everywhere that Marilyn and her company goes. The whole team wears red every day, the trucks are red, and she has cornered the market on Valentine’s Day gifts, which her customers look forward to every year. Whether it be hot sauce, atomic fireballs, or red ruby slippers filled with candy, Atlantic Infrared’s customers and friends are eager every year to receive Marilyn’s newest Valentine’s Day treat!   Marilyn grew a closet office into a multi-million-dollar enterprise, and it wasn’t long before everyone knew about the Lady in Red. Her business acumen and unique branding soon caught the attention of the New Jersey Board of Public Utilities and in 2006, they invited Marilyn to join the Supplier Diversity Development Council (SDDC). Marilyn quickly became a leader in the SDDC and by 2012, took the reigns as the group’s President. During her tenure, Marilyn spent a significant amount of time working with other Women-owned Business Enterprises (WBE), and Disadvantaged Business Enterprises (DBE), in order to show them the ropes of the utility market, and the back office. She often counselled

  Marilyn is a clear leader in her field, and Atlantic Infra’s continued growth and success is a testament to her ingenuity and dedication. She is active in several industry groups and Associations. She is a Board Member of the New Jersey Common Ground Alliance, on the Advisory Board for Leading Women Entrepreneurs, is a Platinum member of the Women President’s Organization, serves on the Operations Committee of the New Jersey Utility Association, and is an active member of the Utility & Transportation Contractors Association.   You may be asking yourself, when does Marilyn find time to sleep? Anyone that has met her, let alone had the pleasure of working with her, knows that Marilyn’s energy and enthusiasm is endless. With three successful companies growing every day and a brand that has her competition seeing red, the sky is the limit for Marilyn. It is safe to say that Atlantic Infra will be enjoying many more milestone anniversaries to come. We all look forward to watching the Lady in Red lead her company as it continues to reach for the stars.

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A MESSAGE FROM ASSEMBLY ENVIRONMENT CHAIR, TIM EUSTACE By: Assemblyman Tim Eustace, District 38 Chair, Assembly Environment & Solid Waste Committee   New Jersey's infrastructure is in disrepair. Our roads, bridg-

es, and transit system are on track for upgrades following the recent gas tax increase, but that is of little solace to our aging water and sewer systems that have little hope of finding funding in the upcoming State budget.   Public outcry following the revelation that high levels of lead lurk in water systems across the country has woke a sleeping giant in New Jersey. Our state needs to turn its focus underground, and make sure that we act in time to stem the tide of disrepair – but the problem is far greater and more complex than just the age of our systems.   Many of our public water funds have been raided by local governments that were tasked with protecting our drinking water. Instead of putting water usage fees back into system upgrades, some municipalities have used the money to fill budget holes. This practice of robbing Peter to pay Paul has led to a complete breakdown in maintenance cycles and the abandonment of critical upgrades such as lead joint removal and the creation of new drought interconnects.   In cities like Hoboken, pipes burst on a frequent basis, creating a revolving door of fixing things only after they break. This disrupts people's lives and has a domino effect on surrounding infrastructure.   Similarly, combined sewer overflows have been polluting our ocean, rivers, and streams for decades, threatening the commercial and recreational economies that thrive around our waterways. As climate change brings stronger storms, these outdated, overburdened systems will only get worse, and NJ ratepayers will be stuck coping with the consequences.

issue: A4569 The "Water Quality Accountability Act"; imposes certain testing, reporting, management, and infrastructure investment requirements on water purveyors; and A4415, which require water purveyors to conduct water loss audits. Once we have the ability to determine where the weaknesses in the network are located, we can begin to plan how to fix them.   Second, we have to work with publicly owned systems to work out kinks in the way they operate their water utilities. We can no longer allow water fees to be reallocated to pay for other projects. The State should work with the public systems to alleviate debt held by the system so that utilities can afford to fix pipes and other aging components.   Third, we can use our water and sewer system to generate power. Earlier this year the Assembly Telecommunications and Utilities Committee held a hearing that would allow for virtual net metering for hydropower facilities. Building a hydropower plant at existing dams in North Jersey can allow for utilities to save money on electricity bills, create jobs, and combat climate change all at the same time. Within water and sewer systems, there are also many opportunities to potentially add hydropower within new pipes. Portland, Oregon has been adding turbines to pipes to utilize the system to create energy. We can replace old pipes and create energy.   I will be visiting with public and privately owned water and sewer systems over the next few months to discuss these ideas with them. Together we can solve these problems, create jobs, deliver clean water safely to residents, and make sure waste is disposed of properly.

What can we do?   First, we have to identify and prioritize the biggest problems across our systems. As Chair of the Assembly Environment and Solid Waste Committee, I have made this a priority and recently introduced and held hearings on two bills aimed at this very Utility and Transportation Contractor, APRIL 2017

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Legal Dig

THE UTCA LOSES A FRIEND - REMEMBERING NJDOT COMMISSIONER JAMIE FOX By Paul T. Fader, Esq., Association Legal Counsel

  Jamie Fox was twice Commissioner of the New Jersey De-

partment of Transportation. Once under Governor McGreevey and once under Governor Chris Christie. That alone tells you a lot about Jamie Fox. He was respected by both Democrats and Republicans even though he was a staunch liberal. He was smart, hardworking and cared about public policy and his home state of New Jersey.

  Over the last two decades Jamie was one of the most important government officials impacting both transportation policy and implementation. He was a friend to the transportation industry who understood the important role that heavy highway contractors play in New Jersey and often sought advice on policy issues from the UTCA.   In 2003, Governor McGreevey appointed Jamie DOT Commissioner and he was able to fix the beleaguered Department of Motor Vehicles with its ever recurring car inspection problems, as well as the New Jersey EZPass system. He guided the consolidation of the Turnpike and Parkway and worked to ensure a coordinated approach to transportation by NJ Transit, the NJ Turnpike Authority, the Parkway and the Port Authority of New York and New Jersey.   In 2007, he became Deputy Executive Director of the Port Authority where he oversaw the tristate area’s three airports, seaports, the PATH commuter train system and the redevelopment of Ground Zero: the World Trade Center site and the Freedom Tower.

conservative Republican Governor appointed Jamie Commissioner of NJDOT in an effort to bring the Democratic controlled legislature and Governor Christie to an agreement on funding the transportation trust fund. While Commissioner Jamie did not succeed in the trust fund reauthorization, he did however, put his heart and soul into it because he knew it was the right thing to do for New Jersey. It was that hard work that laid the groundwork for its ultimate success.   On a personal note, Jamie was one of my best friends. We met in 1982 while working on Bob Torricelli’s first campaign for Congress. I was a blue collar kid, so when Bob won Jamie took me to buy my first suit so I could work in a congressional office. We worked together for the next several years. In 1986 he was in my wedding party; a life long friend who I relied on for both personal and professional advice. When he became Chief of Staff to Governor McGreevey, he asked me to join him in the Governor’s office as Governor’s Counsel and Director of the Authorities Unit. It was an honor to work with Jamie again.   While he was slight in stature, he was the strongest person

I ever knew. He never backed down from a fight or moved off his convictions and principals whether policy, political or personal. He was an openly gay man for the entire time I knew him which must have been very difficult, particularly 36 years ago when we met. That took courage. But that was Jamie, a strong, smart and loyal friend who served our state with distinction. He will be missed.

The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. Utility and Transportation Contractor, APRIL 2017 33

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2017: A YEAR OF MANY CHANGES FOR THE GROUP HEALTH INSURANCE MARKET

By: Nancy Damato, Partner, RDA Benefit Services •  Has your status as a small employer for health benefits changed, as a result of the changes to the law regarding group size calculations, now that union employees must be included? •  Are you getting very high rate increases or, even worse, is your current insurance carrier dropping you, as a result of this new calculation? •  Are you a large employer struggling with keeping your premiums down and still offering plans with rich benefits?   The rising costs of health insurance and the changing regulations, along with the political changes in the headlines on a daily basis, are a constant concern of every business owner. Here are several changes that are occurring in 2017 that you need to be aware of: 1. For the purpose of determining group size, the following categories of employees count: full-time employees (working 30 or more hours), union employees, part-time employees, and variable hour employees. Seasonal workers will also count unless they work fewer than 120 calendar days and they are the only reason the employer exceeds the 50 employee count threshold. Partners, owners and spouses do NOT count in determining group size.   If the total count exceeds 50 employees, then the eligible group (even if it is fewer than 50 employees) must now find coverage in the mid or large group insurance market. 2. Partners, owners and their spouses can no longer be the only participants on a traditional group health plan, even if they have other employees with coverage elsewhere. As a result, they are forced to choose individual health insurance or some other type of group plan that allows these participants. 3. Husband and wife businesses (with no other employees) can no longer be insured with a traditional group plan and must seek

coverage in the individual market or another type of group plan. MORE PLAN DESIGN OPTIONS FROM INSURANCE CARRIERS   Starting in 2017, some carriers are offering creative plan designs to groups that meet certain criteria. Self-funded carriers and alternate carriers also offer other plan options. Implementing high deductible health plans is another way to save money on premiums. Supplementing these plans with a Health Savings Account or Health Reimbursement Arrangement, gets the employee involved in their own cost of care and makes them a better consumer. Considering these options can often times result in a savings on the premiums of up to 20% or even more.   In addition, there are innovative ways that give you the flexibility to offer a selection of group health plans and supplement them with a HRA (Health Reimbursement Arrangement) product that comes with additional services. The result is custom-designed health insurance plans as a long-term financial solution. Encouraging the use of the plans‘ integrated wellness programs can also have a positive result on the employees’ well-being.   Technology is also playing a part in managing the administration of employee benefits and the other Human Resources functions as well. Making good use of benefits management automation can result in costs savings and reduce errors in benefit enrollments.   With change as the new normal, now is the time to take a fresh look at your complete benefits package to make sure that you are in compliance, that you are offering the best benefits package at the best value, and that you are taking advantage of all the tools available to meet these goals. For more information, please feel free to contact Nancy Damato, RDA Benefit Services, LLC at ndamato@ rdabenefits.com or 855-693-0772.

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ACECNJ’s Engineering Exchange   Welcome to the inaugural segment of ACECNJ’s Engineering Exchange, something we hope will become a regular feature in Utility & Transportation Contractor.   I’ve represented the business interests of New Jersey’s consulting engineering firms for the past seven years in my capacity as President of the American Council of Engineering Companies of New Jersey (ACECNJ), the business trade association for New Jersey’s engineering profession. Prior to that, my public service included – among other positions - two years as Chief of Staff to Commissioners Jack Lettiere and Kris Kolluri at the New Jersey Department of Transportation. As Chief, my responsibilities included not only helping the Department accomplish its mission but also to balance the interests of contractors and engineers. From my own experience, I know there was a time in New Jersey where contractors and engineers occasionally found themselves on opposite sides of the same issue. At times, things could get contentious. Working closely together to advance the interests of the broader construction industry was not something often contemplated.   What a difference a few years can make. ACECNJ and UTCA have begun teaming up to advocate for common interests and are working hard to forge a relationship that will benefit consultants and contractors alike and will result in more efficient and effective delivery of services to key clients throughout New Jersey. Thanks to the foresight of your leadership, including your Chief Executive Officer Bob Briant, Jr., and your Executive Director Anthony Attanasio, our two organizations are making unprecedented strides that we hope represent the beginning of a winning relationship.

Forward NJ founding members honored for TTF advocacy. From left: UTCA CEO Bob Briant, Jr., Senator Steve Oroho, Forward NJ Chairman Tom Bracken, Laborers' Steve Gardner, ACECNJ President Joe Fiordaliso, Kivvit Managing Partner Maggie Moran and ACECNJ Chairman Bernie McNeilly.

  ACECNJ and UTCA worked the halls of the Statehouse together on the historic Transportation Trust Fund agreement reached last Fall which has resulted in an 8-year, $2 billion annual stateside capital program for NJDOT and NJ TRANSIT. We continue to partner to ensure that the capital program is implemented and these new funds are used to push work onto the street as quickly as possible. 48

  Our two organizations have routinely advocated together in support of ACECNJ’s signature issue, making sure that Qualifications Based Selection (QBS) is the procurement method used for all design & engineering services. This issue is a no-brainer for both industries – consultants understand that selection based on the qualifications and expertise of the designer results in the best product at the best overall value to the client. Contractors understand that the best design saves time and money and prevents claims and change orders.   UTCA recently joined a coalition led by ACECNJ to vigorously oppose an initiative to increase the formal education requirements before candidates can sit for the Professional Engineer (PE) licensing exam to a Master’s degree or 30+ credit hours beyond a Bachelor’s degree. The initiative - known as “BS+30” - is a flawed concept on numerous levels: it would decimate the engineering profession in New Jersey; increase costs and decrease competition; and make New Jersey less economically competitive. Worse yet, there is NO data or evidence to suggest that current requirements are insufficient and BS+30 is warranted or necessary. Not surprisingly, no other state in the Union has enacted – or is even contemplating - BS+30.   Our two organizations also share a desire to expand the use of alternative delivery methods like Design-Build and P3. Under the right circumstances and for certain projects, use of alternative delivery methods would be another tool in an agency’s toolkit to expedite project delivery. ACECNJ and UTCA have worked closely together to shape legislation and advocate for its passage in Trenton.   ACECNJ has regularly invited UTCA Board Members and Anthony Attanasio to participate as judges for our annual Engineering Excellence Awards (EEA) competition. The competition, which culminates in the Engineering Excellence Awards banquet every March, honors the top projects of the past year and the teams of consultants, contractors and clients whose innovation, skill and expertise made them possible. This March, at the 46th annual Engineering Excellence Awards banquet, ACECNJ announced its top project awards of 2016 and contractors joined consultants and clients to accept these awards. The Grand Honor award in the Small Project category was presented to AmerCom, Williams Pipeline and Creamer Sanzari, A Joint Venture for the project Metro Road Bridge Replacement in 9 Days. The Grand Honor award in the Large Project category was presented to AECOM/STV/Santiago Calatrava/Parsons, the Port Authority of New York & New Jersey, and Skanska Koch for the project World Trade Center Transportation HUB.     ACECNJ’s recent banquet was also special in that it included several individual achievement awards. Bob Briant Jr., and Anthony Attanasio joined other founding members of Forward NJ to receive a distinguished service award for its advocacy work in support of the renewal and replenishment of the Transportation Trust Fund. Utility and Transportation Contractor, APRIL 2017


Engineers and contractors have never enjoyed a closer working relationship than we do today. This partnership is good for both industries. It is good for the greater construction industry. It is good news for our shared clients. And it is good news for New Jersey’s economy and for taxpayers. Indeed, contractors and engineers working together toward shared goals and priorities is a winning combination.

On behalf of ACECNJ, I look forward to growing and enhancing this relationship even more in the months and years to come. Thank you again to Bobby and Anthony for the opportunity to discuss issues of importance on these pages now and in future issues of Utility & Transportation Contractor. Be sure to check back soon. Joe Fiordaliso President, ACECNJ

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SMALL BUSINESS GUIDE:

Choosing the Right Retirement Plan for Your Business By: John Higgins, CFP, AIF, CFS, Patterson Smith Associates   As an up & coming construction firm, you’ve reached a certain level of success and built a comfortable future for your family. Depending on the size of your company, you’ve also created jobs so your employees can provide for their families. But what’s the next step? Establishing a retirement plan for your small business will help ensure that you and your employees have a steady stream of income, even after you retire. This is even more critical as the physical nature of your work, as a contractor, typically makes it difficult for employees to work into their 60’s.   There are many types of retirement plans available to companies, but a select few are most beneficial to small business owners. SEP IRAs, SIMPLE IRAs, and safe harbor 401(k)s are the most commonly used plan types because of their simplicity, affordability, and minimal administrative requirements.

SEP IRA Benefits •  This plan is easy to set up and administer. •  Annual compliance testing and IRS filings are not required. •  Contributions are tax-deductible. •  Employer contributions can vary each year, and they do not   have to be made every year.   –  For example, an employer can contribute 4 percent one year, 0 percent the next year, and 2 percent the year after that. •  Employers can exclude certain employees, such as anyone under age 21, those who have not been employed for at least three of the last five years, or those who have earned less than $600 in either the current or prior year. Important considerations •  This plan is employer funded only. •  The same contribution percentage must be used for all eligible employees (This includes you as the employer). •  Loans are not allowed. SIMPLE IRA Benefits •  This plan is easy to set up and administer. •  Annual compliance testing and IRS filings are not required. •  Employer contributions are tax-deductible. •  Employees can contribute to this plan. •  Employers can exclude employees who have not received at least $5,000 in compensation during any two preceding calendar years (do not have to be consecutive years) and who are not expected to earn at least $5,000 in the current year.

  PLAN OVERVIEW   To help you determine which plan may be best for your business, the information below highlights the major benefits of each plan type, as well as important considerations to keep in mind.

Important considerations •  Employer contributions are mandatory. Employers must make either a nonelective 2-percent contribution to all eligible employees regardless of participation or match 100 percent of employee deferrals up to 3 percent of compensation. •  SIMPLE IRAs have a unique two-year rule associated with their distributions and rollovers. They cannot be rolled over to any other retirement account (except another SIMPLE IRA) within the two-year period beginning on the first date of participation in the plan. In addition, IRA owners under age 59½ who distribute within the two-year time frame (in which a premature distribution exception does not apply) will be fined a 25-percent premature penalty instead of the normal 10-percent penalty. •  Loans are not allowed.

SAFE HARBOR 401(k) Benefits •  This plan has the same features as a traditional 401(k) without the annual nondiscrimination testing.

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•  •  •  • 

Employer contributions are tax-deductible. Employees are allowed to contribute. Profit-sharing contributions from the employer are allowed. Loans are allowed.

Important considerations •  Employer contributions are mandatory. For a 401(k) to be a safe harbor plan, employers must do one of the following:    – Make a nonelective 3-percent contribution to all employees regardless of participation.    – Match 100 percent of employee deferrals up to 3 percent of compensation, plus 50 percent of employee deferrals in excess of 3 percent and up to 5 percent of compensation (for a total of 4 percent). •  Although nondiscrimination testing is not required, Form 5500 must still be filed annually. •  Distributions from this plan require a triggering event. Which plan should you choose?   With so many choices available, it can be difficult to find the right fit. You might start by asking, “What’s most important to me in a retirement plan?” Here are a few examples:

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•  If low cost and minimal maintenance are priorities for your business, a SEP or SIMPLE IRA would be an appropriate fit. •  If you have highly compensated employees and want to give them the opportunity to maximize their retirement savings, a safe harbor 401(k) would allow for that, as long as you are willing to make the employer match. •  If you are a sole proprietor with no employees and want to maximize your own retirement savings, a SEP IRA could be your best option.   By understanding what each plan has to offer (and what it doesn’t), you’ll be well prepared to make the best choice for your retirement, as well as the retirement of your employees.   This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

About the Author…. John Higgins is a financial advisor located at Patterson Smith Associates, LLC 3 Elm Street, Suite 201 Morristown, NJ 07960. John offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at 973-326-9300 or at john@psabenefits.com.

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PKF’s BET ON RTG PILE DRIVING RIGS PAYS OFF BIG By: Brian M. Fraley, Fraley Construction Marketing

  An RTG RM 20 Pile Driving Rig hammers battered piles in the shadows of a Pennsylvania Turnpike bridge abutment on a narrow strip of land between an embankment and a roadway on a warm October morning in 2016. Upon driving an H-pile to refusal, the operator deftly executes a 180-degree turn within a confined space and crawls a short distance to retrieve the next H-pile. A worker from PKF-Mark III hooks it up, the rig lures and secures it, and then travels back to the work site. The mechanical process repeats itself over and over, indicating that serious productivity is afoot.   The RM 20, preceded by the RG 19 T on the PA Turnpike/I-95 Interchange Project, represents the willingness of a forward-thinking contractor to break with tradition to install bridge foundations. PKF historically relied on a crane-suspended pile hammer. Its decision to rent pile driving rigs from Equipment Corporation of America (ECA) is paying off with doubled productivity, reduced labor, increased safety, and cost-savings. Connecting the Missing Link   Interstate 95 from Maine to Florida was completed in 1969 with no connection to the Pennsylvania Turnpike. Since that time, motorists have been forced to navigate crowded backroads to transfer between highways. The PA Turnpike/I-95 Interchange Project – jointly owned by the Pennsylvania Turnpike Commission, Pennsylvania Department of Transportation (PennDOT), and Federal Highway Administration (FHWA) – will create the missing link.   Newtown, Pa.-based PKF has been plowing through Section D10 since being awarded the $142.9-million contract in August 2014. The firm is working aggressively to finish construction by October 2017. The contractor’s scope includes reconstructing and widening 2.5 miles of the Turnpike in Bucks County; building 64

piers for the 14-span I-95 flyover ramp; replacing three mainline bridges; constructing a four-span bridge; and repairing two bridges.   This project has special meaning to PKF as a local contractor, according to Vice President Larry Keough. “It’s one of those signature jobs we’ve been focused on for many years, he says. “To have the privilege to be the first one out of the gate is pretty impressive.”   Piling Superintendent Sabrina Villanti sits in a job trailer rattling off details on bridges as if she keeps a set of plans in her head. “All of our piling is in the main five bridges on this contract,” she explains over the muffled pounding of the RM 20 just outside.   This contract consists of several foundation elements, including 60,000 linear feet of H-piles, roughly 31,000 square feet of soil nail wall earth support, 16,000 square feet of steel sheet pile earth support, and 6,000 linear feet of drilled shafts. Abandoning the Traditional Method   PKF has relied on a crane-suspended vibratory hammer with leaders since being founded in 1969. Breaking with tradition on a megaproject by switching to a pile driving rig might seem risky, but PKF planned it carefully.   Keough clearly recalls the events leading up to the decision. The schedule dictated that PKF would need to run three pile driving operations concurrently. At the time, it was running two crawler cranes with vibratory hammers and the RG 19 T with a vibratory hammer. PKF considered renting a third crane and even purchased a second hammer. Utility and Transportation Contractor, APRIL 2017


one person on the ground and another feeding the machine and that’s your crew.”   The primary operator boarded his first RTG Pile Driving Rig in Summer 2015. ECA dispatched Langan and an ECA factorytrained service technician to the site at the outset to train the crew on the RM 20 set the pace for a smooth transition.   “Given his experience with the previous machine (RG 19T) it only took him a couple of days to get acclimated,” Keough recalls, adding that ECA’s support was key. “He felt comfortable having a phone number he could call and get all of the information and make sure he was doing all the right things.”   “There’s no question we’re crushing our labor production numbers,” Keough says confidently. “To drive piles the conventional way versus the RM 20, it’s cheaper to go with the RM 20 even with the price of the rental.” Feeding the Beast   The RM 20 gave PKF the ability to double production, but the onus was on its crew to maintain a steady supply of piles. Keough and the crew, recognizing the rig’s hyperefficiency, dubbed this process “feeding the beast.”

PKF drove 14 x 89 H-piles to dense bedrock at 12 to 80 feet, although 35 feet was the average. Piles were capped with a heavy-duty steel tip for addeded protection.

  “We were seeing productions that were leaving the crane-suspended vibratory hammer in the dust,” Villanti says of the RG 19 T. “We were doubling, if not tripling production, based on how many sheets we could drive in a day.”

  It required both physical and mental effort for PKF’s crew. While the piles arrive on site marked with driving depths, they do not always match the supplied borings. It requires the team to choose and manage piles based on how the others are going in to avoid waste.   PKF was accustomed to being able to revisit driven piles before splicing because the hammer with leader dangles overhead and can be repositioned. Using a track-mounted machine like the RTG required careful selection of pile sizes and immediate splicing in

  PKF’s interest in the RM 20 had been piqued in Winter 2015 during a demonstration at ECA’s Aldan, Pa. location. Although there was no need on the PA Turnpike/I-95 Interchange Project at the time, PKF was impressed. ECA’s New York/New Jersey Regional Sales Manager Bruce Langan arranged for the contractor to test the RM 20 on another project.   The RM 20 took center stage in August 2016. PKF’s decision to scratch the itch and try out ECA’s RM 20 paid off. Its ability to double production allowed the contractor to eliminate the third set-up altogether. The contractor further capitalized by putting the unused second crane to work with a crew of carpenters.   “The RM 20 has essentially doubled my production,” explains Keough, “hence, I didn’t need a third set-up.” More Production, Less Labor   The RM 20 also reduced manpower. The traditional set-up requires a crane operator supported by a full crew of pile drivers whereas the RM 20 requires an operator and a two-person crew.   The crew has adapted well with the RM 20 as the centerpiece of the pile driving operation. PKF has two operators, neither of which are piling rig operators.   The self-sufficiency of the RM 20 eliminated the need for one of our key foremen, according to Keough. “The RM 20 is so selfsufficient you don’t need a key foreman,” he says. “You just need

PKF-Mark III Piling Superintendent Sabrina Villanti and ECA New York New Jersey Regional Sales Manager Bruce Langan worked closely to keep the RTG Pile Driving Rigs operating at peak performance on the PA Turnpike/1-95 Interchange Project.

areas where driven piles were clustered several rows deep. PKF rose to the challenge as evidenced by the crew’s production rate of up to 20 piles installed per day.   The RM 20’s productivity dazzled PKF regardless of whether the piles were plumb or battered. The RM 20 can effectively drive battered piles because of its adjustable leader, which can tilt backwards 45 degrees, and forward and sideways 18.5 degrees. The

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high turning point of the mast provides stability in even the most extreme inclinations. A New Level of Accessibility   Upon evaluating the positioning of the piers and abutments, in addition to the topography, PKF recognized that positioning the crane at street level to service the pile driving operation presented challenges. The RM 20’s ability to maneuver on the jobsite proved essential.   “The RM 20 is perfect for this project because you have high mobility in a confined area,” explains Sales Director North America Dirk Himborg of Rammtechnik, GmbH. “The rig has the option to be fitted with a hydraulically-driven mast foot and back jackups to facilitate lifting and rotation of the undercarriage, which is especially helpful on uneven surfaces and confined work spaces.”   It was not just the RM 20’s confined space functionality, but also its ability to navigate challenging terrain, especially mud. While a crane could have been positioned to avoid the mud altogether, the problem on PA Turnpike/I-95 Interchange Project was that there was often nowhere to position it.   Villanti recalled an instance where PKF needed to relocate the pile driving operation to the other side of a bridge with a 13 ½-foot clearance. The operator hydraulically tucked the RM 20’s mast down and crawled underneath. Breaking down and relocating a crane would have been cost-prohibitive. HRS 5 Hydraulic Hammer Delivers Power Surge   PKF had been using the RG 19 T Piling Rig with a vibratory hammer in Summer 2015 before the RM 20 with an HRS 5 Accelerated Hydraulic Hammer took up a permanent position on the site. The RG 19 T was driving sheeting and soldier piles for non-load bearing applications, but traffic was shifted onto newly constructed facilities in September 2016, prompting the need for a different approach.

RM 20 Makes PKF a Better Neighbor   PKF was driving piles with hammers and leads from 7 a.m. to 10 p.m. Despite its respect for local noise ordinances, Keough admits that some nearby residents expressed concern.   “When we switched to the RM 20 there were no complaints even though we were closer to the neighborhood,” he recalls. “You can stand 30 feet away from that hammer (HRS 5) and not wear ear protection whereas you couldn’t do that in the traditional setup.”   “It’s much quieter than any traditional pile driver out there,” adds Langan. “There is a noise percussion system built into the hammer to eliminate the ring I call the church bell sound when you hit steel on steel.” The HRS 5 contains a drive cap system, an easily replaceable plastic insert that prevents steel on steel contact. More RTG Rigs, Foundation Work in PKF’s Future   PKF and ECA have enjoyed a 20-plus year relationship. “We’ve bought a lot of equipment from ECA over the years,” Keough says. “The one thing that we know after using the RG 19 T and the RM 20 is that given the right circumstances there’s no question we would purchase those units in lieu of the traditional crane, hammer, and leads.”   And the opportunity is likely to increase. PKF, once focused only on self-performing its foundation work on its heavy/highway construction projects throughout Eastern Pennsylvania, New Jersey, and Northern Delaware, will now provide this work as subcontractor. Based on its successful switch on the PA Turnpike/I-95 Interchange Project, the odds look good that the fleet will include RTG Pile Driving Rigs.

  “This is an accelerated hammer so whatever position you have you get a double push,” explains Himborg. “It gives the ram weight not only an up push, but also a push down so you don’t lose any energy. You’re not relying strictly on gravity.”   The HRS 5 delivers up to 53,104 foot-pounds. PKF especially appreciated the ability to adjust the energy going into the hammer with the flick of a thumb.   The HRS 5 not only delivers a higher percentage energy transfer than a traditional diesel hammer, it is also faster, delivering 50 to 170 blows per minute. The rate was so rapid that the on-site PennDOT inspector had concerns about being able to keep track of the pile count. Fortunately, the RM 20 records the count, which alleviated that issue.   The added power of the RM 20 with HRS 5 facilitated compliance with an aggressive PennDOT specification, which requires 20 blows per inch to refusal on bedrock. PKF was penetrating a silty sand surface, underlain by a tougher layer of saprolite, which varied in depth. PKF drove 14 x 89 H-piles to dense bedrock at 12 to 80 feet, although 35 feet was the average. Piles were capped with a heavy-duty steel tip for added penetration.

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Accounting Corner

CONTRACTORS:

EXECUTE A STRUCTURED SELECTION PROCESS TO EMBRACE NEW TECHNOLOGY By: Jack Callahan, CohnReznick LLP

  While technology is rapidly altering the landscape of many industries, the construction industry has historically been a slow adopter of technological change. It is clear to us that embracing change and technological advancement has great potential to offer a competitive advantage for those contractors who choose to adopt early.   What is the most important feature of construction software? Several answers may come to mind; however, all answers can be tied to several core business objectives: increasing income, creating operational efficiencies, managing general and administrative expenses, and mitigating risk. If an organization is relying on an outdated system, or heavy, Excel-based, disconnected manual processes, it can be extremely difficult to not only support decision making, but also manage change, mitigate risk, or maintain competitiveness in today’s business environment.   The following provides a framework for understanding the business need for technology and selecting the appropriate solutions for your business.

For your project, the main components would be tailored to your needs.

Understand Objectives, Technology Landscape, Scope & Gaps   Before beginning the vendor selection process, a contractor must strategically prepare. It is important to understand the overall business strategy and objectives. A strategy provides the team with guiding principles to scope the effort and understand potential gaps in the technology landscape. It is important for the business objectives and processes to define software requirements. Without this analysis, the software will likely either be duplicative of products already implemented, or will include functionality that is not required to support business objectives.

Assemble a Knowledgeable Team   After gaining an accurate scope that defines the project approach, you are in a good position to determine the primary users and nominate individuals to join a cross-functional team. These individuals should be considered top performers in their areas – generally within finance, accounting, and operations and including field representatives – and have the ability to contribute valid opinions on future processes and software requirements. A team member from the IT department is a valuable contributor to the group, as having a resource that is well-versed in infrastructure related issues is very beneficial.

Create the Overall Approach   As depicted in the graphic below, it is important to have a structured, full-service approach that creates an inclusionary process.

Develop Requirements & Scorecard Develop Requirements   Once a team is established, determine what is needed in a new

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system. Categorizing a list into “must have” and “nice to have” business requirements is extremely important to maintain a focus on the product scope. Develop a Scorecard   A scorecard will incorporate scoring for the RFP response, requirements fit, pilot demonstration scripts (scored by each team member), and cost. Completing a scorecard will prove invaluable when the time comes to discuss vendors in greater detail.   How should an organization compare and contrast software solutions and vendors? Here are some items to consider:  • Specialty – Does the vendor have a particular specialty within the construction industry, or in the specific scope defined?  • Functionality – Does the software meet the high-level functional needs? If not, these vendors will not make a short list. For example, can the product scale? Is it mobile? Does it support my industry or functional contractor needs?  • Financial Stability – Is the company financially stable, and does it have a track record in the industry?  • Research & Development – How many staff are dedicated to software design and coding vs. marketing and administrative?  • Integration – How well does the software integrate with existing systems?  • Infrastructure – What type of infrastructure is required to run the solution?  • Implementation – What kind of data conversion will be necessary, and who will manage that? How will your employees be trained?  • Support – What support is available from the vendor after going live? How are upgrades or updates (bug fixes) managed?  • References – Request a list of similar companies that you

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can call to understand how the product fits within their organization and how they support it.  • Develop a scorecard – What will this process cost, and what will be the potential downtime as employees are trained? Conduct a Script Based Pilot   Take a deep dive into the functionality, utilizing process-based scripts that incorporate the “must have” business requirements. These scripts will help to identify product gaps and open a discussion with the vendor centered on work-arounds and / or customizations required to close those gaps. Most importantly, remain focused on the requirements list. Many products will offer “shiny” features that have the potential to distract your team. The “must have” and “nice to have” lists will help keep everyone on task. Complete Selection   After the short-listed vendors complete the scripted meetings, the team can now consolidate the scoring for each component and discuss the outcomes among the team, as well as with the wider stakeholder community. Based on feedback from the stakeholders and the team, it may be appropriate to follow up with vendors for specific items to ensure that the scoring is accurate and that team members feel that they have all of the information to make the best decision. Contact

For more information on selecting a software system, please contact: Sarah Stegman, Senior Manager, CohnReznick LLP sarah.stegman@cohnreznick.com or 301-280-1823 Jack Callahan, Partner & Construction Industry Practice Leader, CohnReznick jack.callahan@cohnreznick.com or 732-380-8685 Anthony Nazzaro, Principal, NOI Strategies – CohnReznick Advisory Anthony.nazzaro@cohnreznick.com or 973-863-4353

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Labor Relations

UPDATE ON U.S. DEPARTMENT OF LABOR RULE TO MODIFY OVERTIME EXEMPTION REQUIREMENTS By:Alexander Saunders, Esq & Gregory Begg, Esq., Peckar & Abramson

  In the December edition of the Utility and Transportation Contractor, we reported on the new rule issued by the U.S. Department of Labor ("DOL") which would have doubled the minimum salary threshold required for overtime exemption under the Fair Labor Standards Act ("FLSA"). The Labor Department's new rule would have increased the minimum salary needed to qualify for the overtime exemptions, from the previous level of $455 a week (or $23,660 a year) to $913 a week (or $47,476 a year), starting on December 1, 2016. Therefore, under the new rule, employers would have been required to pay FLSA overtime rate to millions of workers who were previously exempt or raise salaries to avoid the new overtime requirement.   However, since our prior article on this issue, there have been a number of significant developments. As it stands now, the DOL rule increasing the salary requirements for overtime exemption is not in effect and the rule faces an uncertain future.     On November 22, 2016, a Texas federal court judge issued an injunction blocking the overtime rule from taking effect. On December 1, 2016, the DOL filed its notice of appeal in the United States Court of Appeals for the Fifth Circuit. The DOL then requested expedited briefing on the issue, which was granted by the appellate court. However, on February 17, 2017, the DOL changed course and requested a 60-day extension to allow the incoming Trump administration time to consider the issues.

  At this point, it is unclear what the outcome of the matter will be. It is unclear whether the Justice Department under President Trump will continue the prior legal efforts to put the DOL rule into effect. The appellate brief in the Fifth Circuit was filed prior to inauguration so the appellate court could lift the district court injunction based on documents already filed. If the rule were to come into effect, modifying or reversing the rule would require the Trump administration to go through the administrative rule-making process or seek legislative changes with Congress.   This area of the law is changing rapidly and new developments may arise on very short notice. Employers should seek legal guidance on their compensation and overtime practices.   About the Author…. Alexander Saunders, Esq, senior coun-

sel at the law firm of Peckar & Abramson, P.C., advises a wide-range of companies in labor and employment matters. Gregory R. Begg, Esq, partner at the law firm of Peckar & Abramson, represents employers in all matters concerning labor relations and employment law compliance. For more information, send an email to gbegg@pecklaw.com.

  The appellate court's original schedule required all briefs to be submitted by the end of January based on an Obama administration request for a fast-track appeal. After President Trump took office, the DOL requested two extensions pushing the current deadline to May 1, 2017. These requests may signal that the Trump administration will discontinue the challenge of the Texas court's ruling. Utility and Transportation Contractor, APRIL 2017

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Safety Perspective

CONFINED SPACE A DANGEROUS PLACE By: Scott Pomarico, Sr., Phoenix Safety & Associates

True Story (31 August 1995, Egypt) Six people drowned Monday while trying to rescue a chicken that had fallen into a well in southern Egypt. An 18-year-old farmer was the first to descend into the 60-foot well. He drowned, apparently after an undercurrent in the water pulled him down, police said his sister and two brothers, none of whom could swim well, went in one by one to help him, but also drowned. Two elderly farmers then came to help. But they apparently were pulled by the same undercurrent. The bodies of the six were later pulled out of the well in the village of Nazlat Imara, 240 miles south of Cairo. The chicken was also pulled out. It survived. This is like the domino effect where one worker gets in trouble and the next worker tries to help and the third worker goes in to help and so forth.   OSHA has developed a new standard that pertains to confined space for the construction industry. OSHA estimates that about 224,000 establishments have permit spaces; 7.2 million production workers are employed at these establishments and about 2.1 million workers enter permit spaces annually. OSHA anticipates that compliance with these regulations will avoid 53 worker deaths and injuries, 4,900 lost workday cases and 5,700 non-lost time accidents annually.   The standard that most of us were following, was the confined space standard for general industry. This standard has been in place for many years, however it did not meet the needs of the construction industry for many reasons. On a construction site a confined space can evolve and change as we excavate the land. In one area, the soil is rock and there is no problem and then in another area the soil is soft and contains methane gas. OSHA saw that there was a need for a new standard to help keep the worker stay safe in the construction industry; as a result it developed a 80

great program that, if followed, allows many workers in confined spaces to remain safe.   When working in a confined space we must always follow the rules or someone could get hurt. Before we can even go into a confined space we must have the proper training, which includes confined space awareness and rescue training. In the awareness training, there are many topics which are discussed: Who will go into the confined space? Who will serve as the attendant and who will be the supervisor? The job specifics are also discussed to make sure that everyone is on the same page.   On the site, a permit must be filled out before anyone enters the confined space. Continuous monitoring of atmospheric and engulfment hazards must be done. Measures must be taken to prevent unauthorized entry. Specify acceptable entry conditions, including but not limited to atmospheric conditions such as oxygen levels, explosive substance limits and toxic substance limits. The employer will provide each authorized entrant or their representative the chance to observe monitoring or testing of permit spaces. This is a brief summary of what is necessary to work safely in confined spaces.   One other very important aspect of the new confined space standard for construction is confined space rescue. There are three basic ways this can be done. You can rely on emergency services to provide rescue, and this can be a suitable way to provide rescue, but there are some drawbacks to this method. In most larger cities, the rescue personnel are trained in confined space rescue and they can be used for rescue. There are some other towns which are smaller and do not have these types of services. As the employer, you must check with the emergency services in that region to see if Utility and Transportation Contractor, APRIL 2017


those services are available in the area you are working in confined spaces. Another consideration is, will they be on duty every day that you’re working. Sometimes they only work three days a week or on a rotating schedule. Additionally, what if the rescue services go out on a call they are no longer available to you and you must stop work until they return to their station?   Secondly as an employer you can hire a third-party company that is trained in confined space rescue and be there on call when you need them. This is a good option, because these companies have all the equipment and the trained staff ready and waiting. If you do not do confined space all the time this is a great option. The last option is the employer can have their own rescue team, which is trained and ready at all times. If you perform confined space projects on a daily basis this is an option you might want to look at, because the rescue team is ready when you are. The team can do

no other functions. A good practice is to set up a truck for confined space rescue and have two or more dedicated personnel for this service. They must be trained and practice the rescue techniques as often as need to be proficient at them. They must also be familiarized with every confined space in which they will be working. Confined space is a dangerous place to work, but with the right training, equipment and qualified people it can be safe, so you can go home to your family at the end of the day. About the Author….Scott K. Pomarico, Sr. is the Training Director at Phoenix Safety & Associates, LLC. He has over 20 years of experience in the construction industry. Scott travels all over the country providing training to companies in confined space and confined space rescue, as well as many other safety related topics. He can be reached at phoenixandassociates@ gmail.com

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Legislative News

FEDERAL & STATE UPDATE

By: Zoe Baldwin, Director Of Government & Labor Relations IN THE STATE HOUSE   It’s the final countdown – On the last day in February, Governor Christie delivered his final Budget Address. The legislature is now holding preliminary public hearings on the proposed $35.5 billion in state spending, which represents a 2.9 percent increase over the budget he signed last June. Overall, the proposal assumes a 3.6 percent increase in revenue, and directs the bulk of the additional spending to pension payments and combatting the opioid epidemic.   Proposed transportation funding remains largely the same, offering $1.514 billion for NJDOT operations, $140.9 million for NJ Transit operations, and a recommendation of $1.311 billion for TTF debt service. The budget for DEP totals $274.3 million, a decrease of just under one percent of FY17.   The Democratically controlled legislature has expressed concerns, but Assembly Speaker Prieto said that he is willing to compromise on the lingering questions brought up by the budget address. Over the coming weeks, the Association will meet with legislative leadership to discuss our industry’s budget priorities. Kearny Landfill Early in the Christie Administration, an ample amount of DEP project procurement was moved to the Department of Treasury. As many of you are all too aware, this has not played out well. Recognizing the time and cost of preparing bids is essential to cost control and timely rollout of public work, yet Treasury has been using a process contrary to the best interests of taxpayers and the industry.   The Kearny Landfill bid solicitation was issued by the Dept. of Treasury’s Division of Purchase and Property. The document explicitly allows the project owner to take multiple offers, negotiate with and accept BAFOs from multiple bidders, then go back to the original submission without further negotiation. This process is

disingenuous and works against public interest. UTCA is working on legislation to move bidding back to DEP and ensure that traditionally accepted forms of bidding are used, no matter the agency. BS+30 An initiative underway in New Jersey is based on the proposition that a four-year degree is “not sufficient” to prepare licensed engineers for the future. This initiative proposes to require a Master’s Degree or additional 30 credits of graduate or upper level undergraduate courses, aka “BS+30” or “Raising the Bar.” This proposal would increase costs for owners and clients, discourage students from becoming engineers, and ultimately decrease competition. Given the complete absence of data supporting the proposal, this appears to be a classic case of a solution in search of a problem. UTCA, along with our industry allies the New Jersey Utility Association and the American Council of Engineering Companies (ACECNJ), met with legislative leadership and had a very healthy discussion on the downsides of this concept. While we don’t believe legislation will advance on this issue, the Association will remain vocally opposed to BS +30. TTF Cleanup Nearly six months after a bitter political impasse shuttered most of New Jersey’s transportation projects, lawmakers in both houses are working to pass a supplemental appropriation for road, bridge, and rail projects. The current proposal would allocate $400 million in supplemental spending on state infrastructure projects before the current fiscal year closes at the end of June. Those funds would be added to the $1.6 billion for transportation work that Christie and lawmakers previously authorized for the 2017 fiscal year. Sponsored by Senate President Sweeney, S3076 was passed by the Senate 36-1. It is now awaiting a hearing in the lower house where it will be heard alongside its Assembly counterpart, A98, sponsored by Assembly Speaker Prieto.

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In addition to the funding bill, Senator Sweeney has been working on a technical bill that aims to clarify some of the newer provisions in the TTF bill passed last fall. S3075 changes the authorization process for TTF capital projects; establishes The New Jersey Transportation Research Center within the NJDOT; clarifies the jurisdiction and process of appointing Capital Program Approval Committee; and removes funding from the Transportation Policy Review Board. The scope of the Senate President’s transportation policy bill is broad, and the Association is continuing work on technical amendments with the sponsor. The NJ Environmental Infrastructure Trust (EIT) As previously reported, UTCA led a legislative effort to require local governments and authorities to get a cost estimate from the EIT prior to advertising a project for bid. Sponsored by Gary Schaer in the Assembly and Brian Stack in the Senate, A1649/S853 passed the full Senate 36-0, the Assembly 66-4, and is now on the Governor’s desk awaiting signature. Changed conditions are something we all face in the field, and UTCA is making steady progress toward standardizing the way project owners handle them. After final stakeholder outreach including great input from the NJ Society of Municipal Engineers (NJSME), the draft legislation is nearly ready for introduction. Staff has identified potential sponsors and expects introduction this spring. ON THE HILL   Oh the Times they are A-Changin’ - Earlier this month, the Trump Administration introduced its federal Fiscal Year 2018 budget. Titled “America First - A Budget Blueprint to Make America Great Again.” The $1.1 trillion budget calls for a $54 billion increase in military spending while substantially cutting many domestic programs. The President’s federal FY 2018 budget targets the Environmental Protection Agency with a 31% budget cut while eliminating 20% of its workforce. However, the President’s budget guidance for EPA actually suggests an increase in funding for key infrastructure programs within the Department, including: $2.3 billion for the State Revolving Funds (SRFs), a $4 million increase over the 2017 annualized CR level; and $20 million for the Water Infrastructure Finance and Innovation Act program (WIFIA), which is equal to the funding provided in the 2017 Continuing Resolution. This credit subsidy has the potential to support $1 billion in direct Federal loans.

bill. Most notably, the proposal suggests: $20 billion in Federal grants for Clean Water SRFs over five years; $2.5 billion to address combined and sanitary sewer overflows; $375 million in grants for alternative water source projects, including projects that reuse wastewater and stormwater to augment existing sources; and $600 million for Clean Water pilot programs.   In addition, Congressman Blumenauer (D-OR) and Congressman John Duncan (R-TN) will be introducing a voluntary fee/labeling trust fund bill very similar to legislation that moved through the Senate WRDA reauthorization last year. This legislation differs from last year’s bill in that the revenue is allocated 50% for the Clean Water SRF and 50% for the Drinking Water SRF. The prior year’s measure funded the Clean Water SRF at 85% and the Drinking Water SRF at 15%. Senator Cory Booker (D-NJ) has agreed to sponsor the bill in the Senate.   If I had a trillion dollars ♪ - House T&I Committee Chair Rep. Bill Shuster (R-PA), said that he hopes an infrastructure package will be ready by fall, expressing concern that failure to do so could result in the loss of seats in both houses. The main speculation right now centers on the role of private money. The White House has referred to public-private partnerships as “the cornerstone" of the president's infrastructure plan, while Shuster insists that although P3s will constitute a portion of the funding, a more substantial federal contribution will be necessary.   The Association is expecting the FY 2018 federal budget process to be contentious, but will continue the fight to protect these and other funding sources that sustain our industry. Please consider supporting the UTCA PAC CONSTRUCTORS FOR GOOD GOVERNMENT   UTCA continues to be the leading voice for the construction industry in Trenton and Washington D.C.. 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 of the Association, and more importantly, with your support of the industry’s PAC: Constructors for Good Government. Please consider contributing in 2017 as UTCA will continue to be very active in the upcoming legislative session, and a robust PAC only strengthens our voice. Thank you for your continued support.

  On the Congressional side, House Transportation and Infrastructure Committee Ranking Member, Congressman Peter DeFazio (D-OR), has been developing a water infrastructure bill. Through our leadership in the national Clean Water Construction Coalition, a number of UTCA priorities have been included in the 84

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HEALTHCARE: REPLACEMENT OF THE AFFORDABLE CARE ACT WHERE IT STANDS TODAY & WHAT YOU SHOULD KNOW By: Wesley Anderson, True & Associates   On March 6, 2017, the House Ways and Means Committee and the House Energy and Commerce Committee released legislation as part of House Republicans’ effort to repeal and replace the Affordable Care Act (“ACA”) through a budget process known as reconciliation. The legislation, part of House Republicans’ American Health Care Act, repeals many of the ACA’s taxes and mandates while relaxing Health Savings Account (“HSA”) rules and replacing Marketplace subsidies (premium tax credits and costsharing subsidies) with refundable tax credits.   Like most complex bills, we anticipate this legislation will undergo significant changes before the full House and Senate attempt a vote to approve it. Democrats and some Republicans have already voiced their concerns.   While the legislation implicates a number of national health reform initiatives, the following highlights the provisions that directly or indirectly apply to, or have an impact on, employer-sponsored group health plans: Taxes in General   The legislation will repeal most of the taxes and fees contained in the ACA, including the additional Medicare tax on wages above $200,000 and net investment income, taxes on prescription drugs, premium taxes on insurance carriers and medical device manufactures’ taxes.

vious “leaked bill,” which fully repealed the Cadillac Plan Tax and replaced it with a tax on the top 10% of employer-provided health plans, this version will enforce the Cadillac Plan Tax effective January 1, 2025 rather than on January 1, 2020 as currently scheduled. HSA Changes   The bill would relax certain HSA rules specifically, increasing the maximum annual contribution to align with the maximum out-of-pocket limit for qualified HDHPs (for 2017, $6,550 self/ $13,100 family). Additional provisions would reduce the excise tax from 20% back to 10%, create new catch-up provisions for spouses and permit reimbursement for expenses prior to establishment of a HSA. Health FSA Changes   The bill repeals the federal rules that imposed an annual limit on health flexible spending account (health FSA) contributions ($2,500, as adjusted annually for inflation). Retain Pre-Existing Condition Exclusion   The prohibition on pre-existing condition exclusions remains in place; however, carriers in the individual and small group market may impose a 30% premium differential for individuals who experience a 63-day or more gap in creditable coverage in the preceding 12 months.

Individual and Employer Mandate   The bill eliminates the individual and employer mandate penalties effective after December 31, 2015. The penalties are “zeroedout,” but the mandates remain in the law. Further, it appears any penalties associated with the 2015 calendar year could still be applied. Additionally, nothing in the legislation repeals the employer reporting requirements (Forms 1094-C and 1095-C) and penalties associated with failures to file these forms (or to file correct forms) would remain intact.

Refundable Tax Credits   Marketplace premium subsidies end under this legislation after December 31, 2019. The bill proposes a refundable tax credit for low and middle-income families ranging from $2,000 to$14,000 (based on overall household income) to assist in purchasing state approved, major medical health insurance coverage and unsubsidized COBRA coverage subject to eligibility criteria. Availability of such credits would also be determined based on age, with younger individuals qualifying for lower credits than older individuals.

Cadillac Plan Tax   The excise tax on high cost plans, known informally as the Cadillac Plan Tax, is delayed until 2025 under this bill. Unlike a pre-

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Financial Overview

ACTIVE & PASSIVE INVESTMENT MANAGEMENT What do each of these terms really mean? By: Edward Gartner, CFBS & Beth Ulrich, CFBS, CRPC Investment management can be active or passive. Sometimes, that simple, fundamental choice can make a difference in portfolio performance. During a particular market climate, one of these two methods may be widely praised, while the other is derided and dismissed. In truth, both approaches have merit, and all investors should understand their principles. How does passive asset management work? A passive asset management strategy employs investment vehicles mirroring market benchmarks. In their composition, these funds match an index – such as the S&P 500 or the Russell 2000 – component for component. As a result, the return from a passively managed fund precisely matches the return of the index it replicates. The glass-half-full aspect of this is that the investment will never underperform that benchmark. The glass-half-empty aspect is that it will never outperform it, either. When you hold a passively managed investment, you always know what you own. In a slumping or sideways market, however, what you happen to own may not be what you would like to own. Buy-and-hold investing goes hand-in-hand with passive investment management. A lengthy bull market makes a buy-andhold investor (and a passive asset management approach) look good. With patience, an investor (or asset manager) rides the bull and enjoys the gains. But, just as there is a potential downside to buy-and-hold investing (you can hold an asset too long), there is also a potential downside to passive investment management (you can be so passive that you fail to react to potential opportunities and changing market climates). That brings us to the respective alternatives to Utility and Transportation Contractor, APRIL 2017

these approaches – market timing and active asset management (which is sometimes called dynamic asset allocation). Please note that just as buy-and-hold investing does not equal passive asset management, market timing does not equal active asset management. Buy-and-hold investing and market timing are behaviors; passive asset management and active asset management are disciplines. (A portfolio left alone for 10 or 15 years is not one being passively managed.) Active investment management attempts to beat the benchmarks. It seeks to take advantage of economic trends affecting certain sectors of the market. By overweighting a portfolio in sectors that are performing well and underweighting it in sectors that are performing poorly, the portfolio can theoretically benefit from greater exposure to the “hot” sectors and achieve a better overall return. Active investment management does involve market timing. You have probably read articles discouraging market timing, but the warnings within those articles are almost always aimed at individual investors – stock pickers, day traders. Investment professionals practicing dynamic asset allocation are not merely picking stocks and making impulsive trades. They rely on highly sophisticated analytics to adjust investment allocations in a portfolio, responding to price movements and seeking to determine macroeconomic and sector-specific trends. The dilemma with active investment management is that a manager (and portfolio) may have as many subpar years as excellent ones. In 2013, more than 80% of active investment managers outperformed passive investments indexing the S&P 500 (which rose 29.60% that year). In 2011, less than 15% did (the S&P was flat for the year).1,2 93


The two approaches are not mutually exclusive. In fact, many investment professionals help their clients use passive and active strategies at once. Some types of investments may be better suited to active management than passive management or vice versa. Similarly, when a bull market shifts into a bear market (or vice versa), one approach may suddenly prove more useful than the other, while both approaches are kept in mind for the long run.   Edward J. Gartner and Beth J. Ulrich are registered representatives of and offer securities, investment advisory, and financial planning services through MML Investors Services, LLC, Member SIPC, 1140 Route 22 East Suite 202, Bridgewater, NJ 08807, Tel: 908-704-1800. Eddie Gartner may be reached at (908) 252-2328 or egartner@financialguide.com. Beth Ulrich may be reached at (732) 677-7012 or bulrich@financialguide.com This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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Continued from Page 89 Medicare Expansion   There has been a lot of talk about the importance yet inefficiencies of our Medicaid system. With nearly 73 million Americans on Medicaid and Children’s Health Insurance Program (CHIP) at a cost of $532 billion (in fiscal 2015) the Medicaid program has a major issue both fiscally and politically. Republicans promote a plan to give states more control over their own Medicaid plan. They propose legislation that would limit federal block grants. Placing limits would end a state’s incentive to enroll more residents. They would allow each state a choice – either continue receiving a block grant or switch to a per-capita allotment. This they feel would prompt states to make their programs more cost effective. What Should Employers Do?   For now, employers should continue to follow the requirements of the ACA. This bill will work its way through the legislative process and will likely have changes and amendments before it passes the House and is sent on to the Senate for their deliberations. As currently drafted, many of the provisions of the law will go into effect on January 1, 2018.

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Transportation Infrastructure Leaders Form Commission to Guide New ARTBA Foundation “Safety Certification for Transportation Project Professionals” Program (WASHINGTON) — The American Road & Transportation Builders Association (ARTBA) has announced the formation of an independent commission to guide the implementation of the new, industry-developed “Safety Certification for Transportation Project Professionals™” (SCTPP) program. It is a high profile group. The SCTPP Commission will be led by the chief executive officers of two of the largest transportation construction firms in the United States. Both are passionate safety advocates. David Walls, president & CEO of Austin Industries, based in Dallas, Texas, and Ross Myers, chairman & CEO of Allan Myers, based in Worcester, Pennsylvania, accepted appointments as co-chairs of the commission. Austin Industries has a $2 billion annual work volume and 7,000 employee-owners. Allan Myers is the largest civil construction and materials firm in the Mid-Atlantic region, employing 2,000 men and women. The nine-member SCTPP Commission met in Dallas in April and established operational policies to guide the certification program. Commissioners will provides leadership, governance and on-going oversight as the program, which launches nationwide in October 2016, moves forward. Joining Walls and Myers as SCTPP commissioners are top leaders from the transportation project planning, design and materials sectors, government, organized labor, and the trucking and insurance industries. They are: • Deputy Secretary of the U.S. Department of Transportation Victor Mendez; • WSP│Parsons Brinckerhoff President & CEO for the U.S. Central & South America Greg Kelly; • Ash Grove President & COO Randy Vance; • Recently retired Texas Department of Transportation Occupational Safety & Health Director Jerral Wyer; • Laborers’ International Union of North America Training & Education Fund National Apprentice Director James Urtz; • Cargo Transporters Inc. Director of Safety Jerry Waddell; and • Liberty Mutual Insurance Group Technical Director of Risk Control Services Don Tolbert. Ex-officio, non-voting members of the commission include: • Zachry Corporation President & CEO David Zachry, who is also the 2016 ARTBA chairman; • Astec Industries Executive Vice President & COO Rick Dorris; • HNTB Holdings, Ltd. President Paul Yarossi; • ARTBA President & CEO Pete Ruane; and • ARTBA Executive Vice President & COO Bill Toohey. Utility and Transportation Contractor, APRIL 2017

The SCTPP program is aimed at the thousands of transportation project supervisors, foremen, inspectors, project planners and designers who could make a huge, industry-wide safety impact by learning core competencies necessary to identify and mitigate potentially life-threatening on-site risks. It is also intended to create a “safety benchmark” for all future civil engineering and construction management program graduates who are interested in employment with industry-leading firms. The SCTPP program vision is to ensure the safety and well-being of construction workers, motorists, truck drivers, pedestrians and cyclists and their families by making transportation project sites world-wide zero safety incident zones. It has been designed to meet the rigorous protocols required for accreditation by the American National Standards Institute (ANSI) and the International Organization for Standardization ISO/IEC 17024. Top safety leaders developed the program, identifying the target audience and core competencies to be tested and creating of the exam questions. They include representatives from: Zachry Construction, Lane Construction, Granite Construction, the Kiewit Infrastructure Group, Oldcastle Materials, The Vecellio Group, Barriere Construction, Superior Construction, Liberty Mutual Insurance, the Arch Insurance Group, the Laborers’ Health & Safety Fund of North America, the Texas Department of Transportation, the National Institute for Occupational Safety & Health, Virginia Tech, The Center for Construction Research & Training, Plastic Safety Systems, InVia Pavement Technologies, and Mobile Barriers. To learn more about the SCTPP program and to access “FAQs,” visit www.puttingsafetyfirst.org, or contact ARTBA Senior Vice President of Safety & Education Brad Sant (bsant@artba.org) at 202.289.4434. The SCTPP program is a project of the ARTBA Transportation Development Foundation, a 501(c)(3) tax-exempt entity established in 1985 that supports a wide portfolio of research, education and public awareness programs and activities.

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UTCA Annual Convention To Feature

Kris “TANTO” Paronto

Hero Of The Benghazi Attack

Listen to “Tanto” set the record straight on what happened during the night of September 11, 2012 on the US Special Mission in Benghazi, Libya.

Friday Luncheon Keynote Speaker September 29, 2017 Borgata Casino & Spa Atlantic City

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