Zachry Advantage 2016 - Issue 1

Issue 1, 2016 Information for Zachry Corporation Employees, Families and Friends

INSIDE

ZACHRY HOSPITALITY’S GROWTH CONTINUES P. 11

HENRY B. GONZÁLEZ

CONVENTION CENTER P. 8

CAPITOL AGGREGATES INSTALLS NEW CONTINUOUS EMISSIONS MONITORING SYSTEMS P. 12

DEAR READERS, As we begin a new year, I am incredibly optimistic about our future. We are completing the execution and implementation of a number of significant successes in each of our businesses.

Our achievements, and the lessons we have learned from them, are unbelievably valuable to us and position our companies well. We completed a very strategic repositioning of our aggregate operations with new plants and upgrades to existing facilities. We developed, and are implementing, a new and exciting management control system that utilizes mobile technology. We are completing our largest construction project ever. Finally, we acquired an existing hotel property and are developing an additional new hotel on property we recently purchased.

These major achievements are absolutely reasons to celebrate, but they are also important moments to reflect. We must remember that big achievements take enormous commitment and effort that can, at times, place strain on our people and our culture. Many hours and much sweat and sacrifice have gone into every task. While it is not possible for me to individually thank every one of our employees who has contributed to these successes, I hope each of you knows how much I appreciate everything you have done.

We continue to be united as individuals and as a company by our shared values which are intended to define who we are and how we treat, and expect to be treated by, each other. At times of great stress or strain, such as the execution of big dreams or big projects, immediate crises may inadvertently push aside our priorities or strategic plans. Over time, however, our shared commitment to our core values will always steady the business and reinforce our focus on personal and professional relationships.

Mark Twain observed that “the secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and starting on the first one.” This is true whether it is in reference to a child’s project at school, any of the major achievements I have mentioned, or the refocusing of a business culture.

Every employee in our company was recently given the opportunity to participate in a survey developed by the renowned Gallup organization. The survey, conducted hundreds of thousands of times in other organizations, is specifically tailored to identify the level of employee engagement as a proxy for the success of the business. Each business can define “success” in its own way with the only assumption being that

happy, engaged employees produce better results regardless of how you define success. I believe that is a very safe assumption to make and, beyond that, I believe that every one of us would rather work in that kind of environment. So, to take a lesson from Mark Twain, our first “small manageable task” is to conduct the survey from which we will get a glimpse into where you are and where you want to go. The next steps will be to analyze the results and put together a plan for how we get to where we all want to go. My sincere thanks go to every person who participated in the survey.

We are a company of dreamers and builders. Together, we will do both.

David S. Zachry, President and CEO

WE WANT TO HEAR FROM

YOU!

Zachry Advantage is your magazine. It is designed to keep employees informed on company happenings and we want to hear from you.

Please send your story ideas, suggestions for improvement or maybe a cool photo taken on the job to Public Affairs at public.affairs@zachrycorp.com or by calling (210) 871-3366.

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EDITORIAL BOARD MEMBERS Christie Boubel Robert Chapa John Farrow Ben Fox Joel Galassini Chris Jaworski Nancy Lopez Gerry McKervey Connie Norton

Wendy Parker TJ Pritchard Lee Scheel Tonya Settles Tara Snowden Marie Surls Kevin Walters Patti Webber

QUERIDO LECTOR, Al iniciar un nuevo año, me siento increíblemente optimista en cuanto al futuro de nuestra empresa, ya que estamos concluyendo con la realización e implementación de un gran número de importantes éxitos en cada una de ellas.

Mediante estos logros que posicionan favorablemente a nuestras empresas hemos aprendido lecciones increíblemente valiosas para nosotros. Hemos finalizado un reposicionamiento estratégico en nuestras operaciones de agregados con nuevas plantas y actualizaciones a instalaciones ya existentes. Asimismo, hemos desarrollado e implementado un nuevo y extraordinario sistema de control de gestión que utiliza tecnología móvil. También, actualmente estamos terminando nuestro mayor proyecto de construcción con la adquisición de un hotel existente y el desarrollo de un nuevo hotel en una propiedad que compramos recientemente.

Estos importantes logros son definitivamente razones para celebrar, no obstante también son momentos importantes para reflexionar. Hay que recordar que grandes logros también conllevan grandes compromisos y esfuerzos que pueden, a veces, causar tensión en nuestra gente y nuestra cultura. Estamos consientes de los sacrificios, las horas y el sudor que han sido invertidos en cada una de estas tareas.

Y aunque no es posible agradecer individualmente a cada uno de nuestros empleados que han contribuido en estos grandes logros, deseo que cada uno de ustedes sepa cuánto le agradezco todo lo que han hecho.

Lo que es más, continuamos unidos como individuos y como empresa compartiendo los mismos valores que definen quiénes somos, cómo tratamos a los demás y como esperamos ser tratados por otros. Sabemos que en momentos de gran estrés o tensión, tal como en la realización de grandes sueños o grandes proyectos, crisis inmediatas pueden inadvertidamente hacer a un lado nuestras prioridades o planes es-

tratégicos. Sin embargo, con el paso del tiempo el compromiso con nuestros valores siempre va a mantener nuestra empresa y reforzará nuestro enfoque en cuanto a las relaciones personales y/o profesionales.

El conocido escritor, Mark Twain dijó: “El secreto de salir adelante es empezar.

El secreto de empezar es romper complejas tareas abrumadoras en pequeñas tareas manejables y entonces así comenzar con la primera de ellas”. Esta cita aplica tanto como en un proyecto de un niño en la escuela o como en alguno de los logros importantes que he mencionado al igual que en el reenfoque de una cultura empresarial.

Cada empleado de nuestra empresa recientemente recibió la oportunidad de participar en una encuesta desarrollada por la reconocida organización de Gallup. El estudio llevado a cabo cientos de miles de veces en otras organizaciones está específicamente diseñado para identificar el nivel de compromiso del empleado para el éxito de la empresa.

Cada empresa puede definir “éxito” a su manera con la creencia que empleados felices y comprometidos producen mejores resultados. Independientemente de cómo definan el éxito creo que es una suposición muy acertada y creo que cada uno de nosotros preferiría trabajar en ese tipo de ambiente positivo.

Por lo tanto, tomando en cuenta las palabras de Mark Twain, nuestra primera “pequeña tarea manejable” fue conducir la encuesta para saber en qué lugar del camino te encuentras y hacia donde quieres llegar. Así que nuestro próximo paso será analizar estos resultados y establecer un plan de cómo llegar hacia donde queremos ir. Sin más por el momento, les doy mi sincero agradecimiento a todas las personas que participaron en la encuesta.

Somos una empresa de soñadores y constructores. Juntos, haremos ambas cosas.

CONTENTS

2

Dear Readers

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Querido Lector

4/5 6/7 8/10 11 12 13 14/15 16

Developing Zachry in the Carolinas The Zachry Scene COVER STORY: Henry B. González Convention Center Zachry Hospitality’s growth continues with addition of new property Capitol Aggregates installs new continuous emissions monitoring systems Project wins for Zachry keep coming The Zachry Way Through the Lens

COVER: Phase one complete of Henry B. González Convention Center building.

Photo/R.C. French Photography

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Developing Zachry in the Carolinas

From the ground up Zachry is focused on one of the fastest growing regions in the country stretching from Virginia to Florida. Approximately 17 percent of the national transportation budget is directed to this region for rebuilding and upgrading of highways and bridges.

Zachry established its first permanent office outside of Texas in Raleigh, North Carolina, the epicenter of its regional operation. The office opened in July 2012 and has grown to 107 Zachry employees in the region; that number is expected to grow substantially in 2016 according to Regional Manager Pike Riegert.

New culture with deep roots “If you go anywhere in Texas and hear the Zachry name everyone knows who you are talking about,” said Reigert. “In the Carolinas, Zachry is just starting to become a recognized name in the industry.”

With a tight-knit group of contractors and owners in the Carolinas, it is not an easy market to break into. Zachry is not the first out-of-state company to try to gain a foothold in the region, but the difference is the way Zachry committed resources to the area prior to procuring the work.

“We established an office out here with an estimating and management staff without necessarily having the work in hand to support it,” Reigert explained. “Because of that we have gained the reputation as a local contractor rather than an outof-state contractor doing work within the state.”

Building the brand Riegert has spent the last year developing this region for Zachry with a team that has been devoted to establishing Zachry’s presence in a fast-developing new market.

“Zachry is becoming known for quality work performed in an efficient manner,” said Riegert. “For example, when Zachry committed to an aggressive schedule on the I-20 project, the perception was, that the timeframe was unattainable.

We rolled up our sleeves and redesigned the project. The changes reduced the number of stages, or traffic pattern 4

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New joint venture office with FlatIron in Greenville, South Carolina.

Photo/Javier Cano

changes, from seven to three which resulted not only in a faster completion but less disruption to drivers. Our competitors and South Carolina Department of Transportation were very impressed with the accomplishment and definitely took notice of our success.”

Carolina culture change Zachry brings a different culture to employees in its new market. In the Carolinas, most local contractors do not have permanent craft employees--companies simply lay off field workers when a project ends. “We want 20-year employees,” said Riegert. “By developing workers who are loyal to Zachry, we are going to develop a better team that does better work.” Zachry is committed to keeping skilled employees on the payroll, giving them the opportunity to work on a steady flow of projects.

“We want 20-year employees.

By developing workers who are loyal to Zachry, we are going to develop a better team that does better work.”

- Pike Riegert, Regional Manager

Rain rain go away

Work work work

Currently the Carolina team is working on the reconstruction of the interchange of Interstates 40 and 77 in Statesville, North Carolina. The project, which began in the fall of 2012, has faced substantial weather-related challenges. In 2013, rain delayed the project for more than 180 days. In addition, the month of October 2015 marked the highest monthly rainfall in recorded history in the area.

While the project faced major delays, the team mitigated the schedule impact by teaming with an engineering firm that redesigned the project and streamlined the process which allowed Zachry to focus on building the permanent infrastructure. The result was a faster construction process, with less impact on motorists and significant savings for the customer.

What is making Zachry’s venture in the Carolinas a success is the completion of major roadway projects including the $70 million bid/build reconstruction of Interstate 20 in South Carolina that was won in 2012, followed by the $89 million roadway bid/ build project in Statesville, North Carolina, that will be completed this year. On Jan. 29, 2016 the team also won a $100 million project to reconstruct an 11-mile section of Interstate 20 near Columbia, South Carolina.

Now, a $231 million joint venture project in Greenville, South Carolina, to rebuild parts of Interstates 85 and 385 is underway. This design/build project began in January 2016 and will will continue for approximately three years. With successful major roadway projects completed and more underway with bids out for several more, Zachry is here to stay in the Carolinas and will continue with a deep commitment to the things they build and to the people that are making it happen.

Houston we have a problem The region’s thriving construction industry has posed recruiting challenges for Zachry. While there are efforts to recruit the amount of skills needed, there is still a shortfall. To overcome this, Zachry is tapping into its workforce in Houston as the massive Grand Parkway project winds down.

“Bringing employees here from Houston will bring a great deal of talent and experience to the project,” said Chris Bain, assistant project manager for the Statesville project. “This will also help us show the other workers what it means to work for Zachry. We have a family atmosphere with one team and are always concerned about each other’s success.”

Workers lay pavement while working on the I-40/I-77 interchange in Statesville, North Carolina. The $89 million project began September 2012 and is expected to be finished in 2017. Photo/Chris Bain

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the

ZACHRY

SCENE Jeff Scott is Zachry Hospitality’s new controller

Born in Indiana and raised in Oklahoma, Zachry Hospitality Controller Jeff Scott says, “I’m really glad to be back in Texas.”

Scott joined Zachry Hospitality on Sept. 14, 2015, following a career spanning nearly 30 years. He has extensive experience in finance operations within the hospitality industry – starting at Holiday Inn, moving to Doubletree, then to Hilton Austin, and on to the Hilton Hotels Corporation, where his most recent position was as Complex Director of Finance in Key West, Florida.

Working for Zachry Hospitality has been an eye-opening experience. “There is a genuine desire to be progressive, and while I have worked in many hotels and companies that are progressive in certain ways, they are often controlling from the top and mid-level suggestions are not always welcomed or employed,” said Scott. “It is the total opposite here. I am glad to be affiliated with this company and feel very lucky.”

Zachry Hospitality Vice President of Operations Robert Thrailkill places high value on ensuring the organization’s business operations are well poised for the future.

“Jeff has tremendous depth of experience and we are excited to bring that experience to bear upon the growth we are pursuing,” he said. “Growth does not happen by accident, but by plan, and bringing Jeff on board is part of that plan.”

To prepare for the growth, Scott and his team are focused on standardizing finance activities as well as policies and procedures.

“It is vital we improve our efficiency by exploring new hotel technology solutions to replace some manual aspects of our current financial reporting processes,” he said. “A challenge we have engaged is to create a platform that we can standardize and distribute across our current hotels while allowing for future growth.”

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Senior Vice President and Chief Financial Officer for Zachry Corporation Andy Stokes added, “Jeff brings a fresh set of eyes and great experience with systems and processes.

Coming from Hilton, he knows which systems do and do not work in terms of operations management, budgeting, forecasting and modeling, and that is tremendously valuable.”

Zachry Hospitality Controller Jeff Scott is focused on standardizing finance activities to prepare for growth. Photo/Zain Badiwala

Haven for Hope A special thank you to all of the Zachry employees and families that participated in the volunteer event at Haven for Hope on Saturday, Jan. 30th. More than 80 volunteers, painted the intake lobby and courtyard areas of this safe haven for the homeless. Photo/Frankie Arguello

Holiday DĂŠcor Winner Heavy Support/Admin team won a $100 Visa gift card in the first annual holiday decorating contest.

The contest was open to all Zachry Construction and Capitol Aggregates employees at all locations.

Photo/Anna Kersch

Blue Santa Zachry Home Office gathered donations of toys and food items for the San Antonio Blue Santa Program. This year the project provided assistance to more than 3,000 families including 12,000 children.

Photo/Frankie Arguello

World Safety Award Zachry Construction Corporation was selected as the recipient of the 2015 World Safety Organization Concerned Company/Corporation Award. The award was based on safety practices, previous safety recognitions, local community support and the support to small and disadvantaged businesses. Photo/ZCC

Light it up!

The Hilton Palacio Del Rio won Best Lighting Display of a Building in Mayor Ivy Taylor’s 5th Annual Light Up Downtown Holiday Contest held during December in San Antonio. San Antonio citizens voted online for their favorite holiday displays and decorations of downtown buildings, storefronts and shops. More than 80 participants entered the contest. Photo/Aden Cortez

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COVER STORY

Henry B. González Convention Center Phase ll begins Hunt-Zachry joint venture delivers phase one ahead of schedule

Zachry continues its tradition of transforming the face of downtown San Antonio with the massive expansion and renovation of the city’s Convention Center. The $325 million project is the largest capital project in San Antonio’s history, and on Jan. 26 an official ribbon-cutting ceremony marked the conclusion of the first and largest phase of this transformation.

In January 2016, three years and four months after being awarded the design/build contract by the City of San Antonio, the Hunt-Zachry joint venture completed phase one of the project four months ahead of schedule. During the pre-construction phase of the project the Hunt-Zachry team proposed a revised phasing for the project and for an adjacent street project the City had with another contractor to relocate Market Street. The revised phasing allowed the team to construct the expansion in a more streamlined manner and also helped the adjacent contractor stream8

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line its project. This close collaboration also made it more seamless for citizens as they traveled through the project while allowing the Convention Center to move in to the new facility four months earlier than originally anticipated.

“It was a great partnership between Hunt and Zachry, and one that will define the kickoff to San Antonio’s rebranding and repositioning,” said Building Division Director of Operations Darrell Arevalo. “The city is known as a tourism and hospitality destination with a rich and deep history, but is also striving to develop a new identity as a progressive commercial hub. This new state-of-the-art convention center expansion will help in confirming that.”

Indeed, the structure’s innovative design and construction has entrenched it in the top tier of convention centers nationwide, while the size of the convention center alone catapults it to top 10 status.

Photo/R.C. French Photography

Team Photo Back Row – Left to Right: Fred Allison, Alponlinio Mendez, Fausto Rodriguez, Jonathon Schleuter, Glen Young, Rene Garcia, Roland Gloria, Rick Glover, Doug Huztler, James Summerville; Middle Row: Dave Roberson, Chris Delgado, Bill Hardwick, Alfred Garcia, Ruben Castro, Elizabeth Williams, Fabian Leal, Adam Lopez, Steven Hall, Rey Rosado, Ignacio Vivanco; Front Row: Juan Obregon, Marcos Garcia, Jesse Garza, Juan Zarza, John Aguilar, George Ocasio, Darrell Arevalo Photo/R. C. French

“Zachry prides itself on participating in projects that have a positive impact on the development of San Antonio, and especially those of historic nature such as this,” said Arevalo.

“Strategically this has also been a great opportunity for the vertical side of Zachry’s business, allowing us to demonstrate expertise in complicated, well-scheduled construction projects, and grow our resume and portfolio. I believe this will open a great many new doors for us, and that’s exciting.”

In February, Hunt-Zachry began work on phase two. This includes renovations to some buildings and demolition of others on the west side of the old convention center, located across from the Hilton Palacio del Rio, to create stunning new outdoor areas and mixed-use facilities.

“When this is complete, the area will tie into HemisFair Park, which is undergoing its own redevelopment,” explained Project Executive Glen Young. “The greatest impact of phase two will be to make that part of the River Walk accessible to the public in a vibrant new setting.”

Young noted that a key factor in the successful execution of the project was the excellent working relationship between the partner, Hunt, Zachry, and the City of San Antonio and the Convention Center Team.

“The entire City team has been terrific to work with,” he said. “The city’s personnel have been very cooperative and professional in how they managed this huge project.”

Challenges underfoot Ironically, the legacy of the original HemisFair ’68 installation was the cause of some of the most pressing challenges for the construction team.

“The expansion site is the location of the original HemisFair and, as we were drilling shafts and doing below grade work, it seemed that everywhere we went we encountered obstructions – items left underground, like footings from the old monorail,” said Young.

CONCRETE PACKAGE The project also provided Zachry’s Building Division with the opportunity to learn from its counterparts in the Heavy Division on the concrete package.

“We were able to draw supervisors and craftspeople from the Heavy Division to help on the concrete and site work. The integration between them and the Building team was excellent and in the end we were able to help the joint venture in many other areas. We have learned a lot from our Heavy Division teammates and that is helpful because our goal is to get back to

our roots and begin to self-perform some of the work again,” said Project Manager Rey Rosado Gonzalez.

Concrete package by the numbers: • 25,000 CY of concrete • 421 Concrete Piers • 11,400 feet of grade beams • 460,000 sq ft of slab on ground (SOG) • 300,000 sq ft of slab on metal deck (SOMD)

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COVER STORY (continued)

Other successfully scaled hurdles included working around the active 60-inch sewer line that runs through the middle of the site and the chilled water lines that feed a loop in the downtown metro core. The sheer enormity of the project required the careful orchestration of a large workforce performing a myriad of tasks. At the height of the project, more than 650 construction personnel were on site.

Well positioned for the future “Inside and out, the convention center is state of the art and will put San Antonio in a whole new light with convention planners - allowing us to be seen as a progressive and modern city,” said Zachry Hospitality Vice President of Operations Robert Thrailkill. “People like shiny new things, so I believe we are going to attract a lot of attention with this facility.”

He added, “As for the Hilton Palacio del Rio – because of our location, brand affiliation, 50-year history, infrastructure and wonderful staff, we are in great shape for the future and stand to benefit from everything going on downtown. From a convention perspective, the number of room nights is trending up for 2017, and 2018 is going to be an especially big year, as it also happens to be the city’s tri-centennial celebration.”

TOP: On Jan. 26 an official ribbon-cutting ceremony celebrated the completion of the first and largest phase of the new Henry B. González Convention Center. At the ceremony, city officials unveiled a virtual water artwork. BOTTOM: Balcony view overlooking Market Street. Photos/R.C. French Photography

Fast facts about the Convention Center 16.8 million pounds of steel ... enough to make 4,200 average-sized American cars

The largest ballroom in Texas

Miles of ethernet cord

189 mi.

Miles to Dallas from San Antonio Miles of electrical cable

294 mi.

370 mi.

4.5 football fields worth of carpet

(263,000 square feet)

12 Escalators, 7 Elevators & 600+ Doors

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Zachry Hospitality’s growth continues with addition of new property Zachry Hospitality will add a brand new hotel to its continually expanding portfolio with the land acquisition and proposed development of a new Embassy Suites hotel and conference center on San Antonio’s Northwest side.

The land procurement, which closed in December of 2015, is located at the southeast corner of IH-10W at Loop 1604 and is part of the 32-acre mixed-use development, Landmark Centre. The Fulcrum Development-owned center will include office and retail space, restaurants and hotels, including the new 203-room Embassy Suites.

“Surrounded by more than 600,000 square feet of corporate headquarters for several major businesses, Six Flags Fiesta Texas, La Cantera Mall and the University of Texas at San Antonio, this was a prime location and a stellar expansion opportunity for us,” said Rene Garcia, vice president of development for Zachry Hospitality.

Zachry’s Building Division will begin construction on the hotel by September of this year, Garcia noted, with the expectation to be open for business in the first quarter of 2018.

While the eight-story design will adhere to the franchise brand standards, it will include enough updates to be considered a prototypical Embassy Suites. The most significant changes will include modifications to some of the more recognizable design elements associated with the brand, including a new signature atrium and feature an outdoor pool and expanded meeting spaces.

Zachry Hospitality expects to break ground on its new Embassy Suites property

by September this year. Rendering/Zachry Hospitality

“This prototypical design will allow us to best serve the local market,” explained Garcia. “Particularly with the increased meeting and event space and the outdoor pool area, those enhanced amenities will cater not just to business travelers and meeting planners, but to the leisure market as well. Beyond hosting conferences, we’re hoping to become a top venue for family events like weddings and reunions.”

Zachry Hospitality Vice President of Operations Robert Thrailkill noted that the company will be able to leverage the resources of its existing sales, human resources and finance operations to effectively manage the new operation’s expenses and develop synergies among the Zachry Hospitality properties.

“For multiple reasons, the new Embassy Suites property is an impressive milestone for our company,” said Thrailkill. “Being able to build a brand-new facility is a fantastic opportunity for us. We are growing in a very deliberate fashion with an eye toward acquiring and building properties that are best in class in their marketplace.”

The new 203-room Embassy Suites will occupy a prime location at the corner of IH-10W and Loop 1604. Rendering/Zachry Hospitality

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Capitol Aggregates installs continuous emissions monitoring systems Systems work to monitor and reduce air pollutants

In 2012, Environmental Protection Agency (EPA) announced more stringent emissions standards for cement plants, effective September 2015. The new EPA rules call for dramatic reductions of mercury, acid gases, particulate matter and hydrocarbons from cement kilns and included requirements for continuous emission monitoring to ensure compliance. According to the Final Amendments to Air Toxic Standards for Portland Cement Manufacturing Fact Sheet, the rule is expected to significantly reduce pollution from Portland cement manufacturing over 2010 levels when fully implemented, cutting emissions of mercury by 93 percent, hydro-

Contractors install one of the CEMS monitor probes at Capitol’s cement plant.

Photo/Paul Detterline

chloric acid by 96 percent, particulate matter by 91 percent, and total hydrocarbons by 82 percent.

To manufacture Portland cement, the most common type of cement in the world, Capitol Aggregates works with raw materials like limestone, shale, clay and sand and heats these at high temperatures in a kiln to form a crystalline rock-like substance called clinker.

Clinker, along with other additives such as gypsum, is ground into the fine pow-

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der commonly referred to as Portland Cement.

As the raw material is heated and moves through Capitol’s cement plant kiln, which is approximately 12 feet in diameter and 162 feet long, certain compounds are released in the gases from the clinker production. The kiln exhaust gas includes the regulated compounds mercury, hydrocarbons, particulate matter, hydrogen chloride, sulfur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO) and Carbon Dioxide (CO2). Capitol controls the emissions from the modern preheater precalciner cement kiln system using state-of-the-art control technologies such as low NOx burners, a scrubber, bag houses and selective non-catalytic reduction.

According to Capitol Aggregates Director of Environmental Affairs Paul Detterline, there were no cement plants that met all the emissions requirements at the time they were established.

“Each plant has had to address its own unique challenges in order to meet the new standards,” he explained.

“While the Capitol Aggregates kiln was one of the kilns that set the cement industry standard for hydrogen chloride emissions, we needed to upgrade our continuous emissions monitoring systems (CEMS) to comply with the new EPA requirements and timeline.”

Capitol began planning for the $1 million upgrade in 2010. The installation began last March and the employee training, system debugging and equipment certification process is nearly complete. Capitol filed for and received the optional one-year extension to provide ample time to continue to test the system and ensure it is the best option for the plant.

“Previously, the kiln was continuously monitored for NOx, SO2, CO, and CO2.

Capitol’s Director of Environmental Affairs Paul Detterline views the cement plants emissions trends provided by the new CEMS equipment.

Photo/Kristen Parker

In addition, we now also continuously monitor the kiln for mercury, particulate matter, total hydrocarbons, oxygen, flow, moisture, stack temperature and stack pressure to ensure we adhere to EPA standards,” said Detterline. “The CEMS is able to measure as low as micrograms of emissions in a cubic meter of air passing across the kiln stack. It is extreme finite measuring.”

The addition of these emission monitors, coupled with the addition of a continuous raw material feed analyzer, has provided the plant with new tools for more precise chemistry control, allowing Capitol to meet these new EPA emission limits.

Project wins for Zachry construction Four recent project wins are keeping employees busy

US75-Collin County, Texas Zachry’s work on the US 75 Project in Collin County, Texas, is scheduled to begin in late spring of this year, with a projected completion in the fall of 2018. Located from the President George Bush Turnpike to Park Avenue in Plano, the 1.5-mile-long section will undergo a main-lane widening underneath an existing Kansas City Southern (KCS)/Dallas Area Rapid Transit railroad (DART) bridge and the Plano Parkway bridge. The KCS/DART railroad bridge will have 2 spans added to lengthen it by 150 linear feet while maintaining the railroad traffic. The bridge at Plano Parkway will be completely reconstructed.

FM 548-Rockwall County, Texas Zachry crews mobilized in late February on the 12.75-mile FM 548 project in Rockwall County, Texas. The project begins at SH 205, crosses Interstate 30 and ends at SH 66 in Royse City. Crews will replace or lengthen 34 cross-drainage culverts, replace 220 driveway culverts, provide additional paved surface width and overlay, and complete a variety of additional improvements. The primary challenge of the project, which is expected to be complete in the spring of 2017, will be ongoing maintenance of traffic.

Project Manager: Aaron Vrazel Superintendent: Charles Stone

Project Manager: Jeff Sienkiewicz Project Engineer: Shawn Talucci Field Engineer: Alan Kassen Superintendent: Felipe Salinas

I-20 widening from MM 49 to MM 60-Lexington County, South Carolina Zachry was recently awarded the I-20 widening project in Lexington County, South Carolina. The design/build project for the South Carolina Department of Transportation is currently in design, with construction to begin late spring of this year. The 11-mile project consists of constructing new Portland cement concrete pavement (PCCP) median travel lanes and reconstruction of existing lanes. Crews will place 180,000 cubic yards of PCCP in the new median lanes and reconstruction areas. The project also involves the construction of a new median bridge on I-20; a milelong section of noise wall; 36,100 linear feet of concrete median barrier; and the removal over 325,000 square yards of existing concrete pavement. The project is to be completed by the end of 2018.

Waller Creek The Waller Creek Conservancy and the City of Austin, through a Public-Private Partnership, awarded Zachry Construction Corporation the Waller Creek Park project as the Construction Manager at Risk (CMAR). The project includes the restoration of Waller Creek from Waterloo Park to Lady Bird Lake. The project revitalizes and restores this area by creating a chain of parks and connecting the community with a pedestrian infrastructure of creek crossings, sidewalks and overlooks.

Zachry will perform preconstruction services and eventually oversee all construction activities.

Project Sponsor: Travis Mross Project Manager-Civil: Tyler Farella Project Manager-Vertical: Chris Jaworski Pre-Construction Manager: Rick Glover Project Engineer: Hector Plata

Project Manager: Bill Voight Superintendent: Ray Farmer

ZUUS marks 20-year milestone with CPS Energy contract renewal CPS Energy recently awarded Zachry Underground Utility Services (ZUUS) a three-year renewal contract. The new contract which began on Feb. 1 of this year, involves converting overhead Infrastructure to underground Infrastructure in areas throughout San Antonio. This includes the installation of manholes and electric duct bank where needed.

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the

ZACHRY

WAY

Value Spotlight This year’s 2016 United Way campaign resulted in another great year of employee participation with a company match totaling $332,366.19. The campaign is held across the company in each division with pledges and cash donations showing a

TOGETHER WE CAN DO GREAT THINGS

level of enthusiasm, support and commitment that reflects the passion and strength of our communities. Zachry employees show the United Way every year that Together We Can Do Great Things!

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SAND CLINKER CRUSHER SLURRY PAVEMENT

14

GRAVEL KILN SANDPIT STONE GRINDER

ZACHRY ADVANTAGE

ISSUE 1, 2016

F

CEMENT QUARRY CONCRETE ROCKS

ZACHRY

KID ZONE

JO KES Q: What do you call a sleeping bull?

A: A bulldozer

N

Employee

Births

Baby Eleanor Farrow born to John Farrow, finance & tax manager, Home Office, and Jessica Farrow on Feb. 9, 2016.

Have some joyful news to share?

Let us know!

Send announcements to: public.affairs@zachrycorp.com

ZACHRY MILEMARKERS

Congratulations

25 Years

10 Years

Joe Garcia

Geronimo Elias

David Arzola

Roger A. Lopez

Ranulfo Banda

David H. Roberson

Oralio Chapa-Campos

40 Years Adolfo Gomez

Dave Disbrow, chief operations officer at Capitol Aggregates, presented Dan Yentes an Operation Performance Recognition certificate for his continued performance of the Austin River Operation. Dan’s efforts have directly improved aggregate market conditions since 2011.

Fun Fact

50 Years

20 Years

35 Years

Rolando Alfaro

Mary Alvarado

Laura J. Anthe

Andres S. Tovar

Roberto Perales Javier Rodriguez

30 Years Gary Doty David S. Gonzalez Jr. Jose M. Riojas

15 Years Roland Arzola Bryan S. Golla

Rafael Serrato

Yolanda Russo

Terri Smith Feagin Ian K. Griggs Fabian R. Leal Carmen G. Martinez Lisa R. Munson Carolyn M. Price Marlon C. Vasquez

5 Years Kathryn Cordova Alfred S. Garcia Margaret Hernandez Ruben Salazar Richard Salinas

CAPITOL ADVANTAGE Information for Capitol Aggregates employees, families and friends

Issue 3, 2007

CapItol Celebrates Its 50 th annIversary

H.B. Zachry Company/Capitol Aggregates

In 1957, H.B. Zachry Company received a contract from the United States Air Force to rebuild runways at Bergstrom Air Force Base in Austin. To complete the job, Zachry needed large amounts of sand and gravel to create ready-mix concrete. Rather than purchase materials from another supplier, the company determined that it would be more efficient to start its own sand, gravel and ready-mix operations. Thus, Capitol Aggregates was incorporated on March 27, 1975.

Archival photo showing silos at Capitol’s cement plant under construction in the early 1960s. Photo/Capitol Aggregates

15

ZACHRY ADVANTAGE

ISSUE 1, 2016

SAN ANTONIO,TX

SA

PERMIT #1517

PE

PRSRT. STD. U.S. POSTAGE

PA I D

2330 North Loop 1604 West | San Antonio, TX 78248 P.O. Box 33240 | San Antonio, TX 78248 zachrycorp.com

I-40/1-77 Interchange in Statesville, North Carolina

U.S

P

SAN ANTONIO,TX

SAN

PERMIT #1517

PER

Through the Lens PROJECT:

FIRS

Submitted by:

Assistant Project Manager

Chris Bain

Zachry began working on the $89 million project in September 2012.

The I-40/I-177 Interchange project focuses on widening three miles along I-140 to six lanes and one mile along I-77. This interchange is a critical crossroad in the region that sees more than 70,000 vehicles per day and is expected to reach 110,000 by 2035.

Zachry is reconstructing five bridges and building an additional five to help improve traffic flow.

Give us a peek at a day in your shoes!

Send us your best shot! Send an email with a photo attachment at least 1MB in size and a description of what the photograph depicts to public.affairs@zachrycorp.com.

Include your name, job title and contact information in case we need more information.