The City of San Diego Needs an Availability Study

By Jim Ryan, AGC Executive Vice President

The City of San Diego’s staff and the Citizen’s Equal Opportunity Commission are again “exploring” new requirements for contractors bidding City of San Diego projects. The new requirements that are being considered include:

 

1.   Requiring all bidders to submit Subcontracting Outreach (SCOP) paperwork.  This involves providing a 3”-6” thick binder of documents for each project that a contractor

      bids.  Currently, the top 3 bidders are required to meet this requirement.  The proposal would include all bidders….even if there are 15 bidders on the project.

 

2.   Before final retainage is paid to prime contractors, the City will do a complete audit of the project to insure that all reported subcontract participation actually occurred

      during the project!

 

3.   Reduce the SCOPe threshold from $250,000 projects to $200,000.

 

These provisions are part of the recommendations provided by Franklin M. Lee an attorney from Tydings and Rosenberg, an East Coast Law Firm hired by the City to analyze ways to increase “small business” participation on City projects.  Many at the city confuse “small business” with minority business.  Franklin justified most of these recommendations because Los Angeles uses these techniques. Franklin needs to understand that justifying something in San Diego because Los Angeles does it, is like telling a Michigan football fan that it is a good idea because Ohio State does it.!!

 

Last week, AGC provided the City’s staff with our written submission for the AGC of America Chapter Diversity Award, which was awarded to the AGC San Diego Chapter during the AGCA Convention on March 10^th.  This submission details a record of success for increasing diversity in the San Diego’s construction industry.  We suggested to the City that our system (which was outlined in last week’s MMQB) actually accomplishes something ….a real contrast to the diversity seeking programs the city has implemented over the years.

 

Whenever we meet with City officials and prove to them that their ideas to bring diversity to the industry are flawed…they plead with us to “give them some ideas.”

 

OK….here is an idea…that will work.

 

#1.  The City should drop all programs, etc., that are currently in place that are designed to bring diversity to the construction industry.  They do not work.

 

#2.  The City should retain a consultant that the City and the various construction associations with members that complete construction projects for the City agree is a professional, and will conduct a study that is credible when it is completed.

 

#3.   The consultant should be retained to complete a very detailed “Availability Study.”  An Availability Study is a study that details the number of firms that are minority or female owned that are available to complete City projects either as a subcontractor, supplier, or as the prime contractor.  This study should detail the availability of firms by gender and race.

 

Why do we need this????

 

This decades old diversity problem on City of San Diego projects has at its core a basic problem.  The City Council and the City Staff assume that there are plenty of minority and female firms available to complete city work.  The industry has been unable to find these firms. 

 

This study would tell us all if they actually exist.  If they do, I am confident the industry will respond.  If they do not exist, then the City and the industry have a different problem to solve.  If they do not exist then the City must join with organizations, like the AGC, to encourage craft training and possibly offer assistance to individuals that are interested in becoming contractors.

 

It is just possible that the reason the City programs continue to fail is that they have been trying to direct construction contracts to firms that do not exist!

 

Either way…..we need to find out, or the latest effort by the City will end up like all of the other efforts….going  nowhere!!!

 

Finally, it should be noted that the concept of conducting an Availability Study was not originated with the AGC…..the 9^th Circuit Court of Appeals has demanded that Availability Studies be completed as part of case decisions on the subject. 

 

 

NECA San Diego…We are Waiting for your Response!

By Jim Ryan, AGC Executive Vice President

 

Our March 3, Monday Morning Quarterback included the following article:

 

NECA in Sacramento Responds to Greenmail….How About San Diego?

By Jim Ryan, AGCSD Executive Vice President

 

The IBEW in Sacramento was recently involved in a greenmail plot on a very large project in Sacramento. The Sacramento Bee took issue with the IBEW on their editorial page. (see 2/12 MMQB at www.agcsd.org)  The local National Electrical Contractors Association Chapter (NECA) in that area wrote the following letter:

 

(NECA letter in response to their 2/2 editorial to the Sacramento Bee)

 

Re “CEQA’s being hijacked; where are the enviros?” editorial Feb 2: “On behalf of the National Electrical Contractors Association (NECA), allow me to concur with your calling into question abuses of the California Environmental Quality Act process for purposes other than protecting the environment.

 

NECA is an industry association made up of electrical contracting firms that employ members of the International Brotherhood of Electrical Workers (IBEW). NECA members hire and employ IBEW electricians because they are the best trained workers in the field and they live in our community.

 

However, that is not to say that we agree with the tactics of the environmental organizations, labor unions, “neighborhood groups” or members of the legal community who engage in the tawdry business of “greenmail.”  CEQA was adopted in 1970 as a ground breaking means of protecting California’s environment. To use it to achieve any  other means is a disgrace.

 

       -       Fran McDermott, Sacramento Executive Director

               National Electrical Contractors Association, Greater Sacramento

 

NECA San Diego…we would be happy to publish a letter on this topic from your chapter.  Just email it to me at your earliest convenience.

 

NECA San Diego….we would still be happy to publish a letter on this topic from your chapter.

 

 

Fundraiser for Mayor Sanders on April 8

 

AGC’s choice for San Diego Mayor is once again Jerry Sanders, and with the Primary Election fast approaching, we need to help him with his re-election campaign!  We endorsed him (and raised funds) the first time around, and we have endorsed him for re-election.  The time is now to once again step up to the plate!

 

On Tuesday, April 8, from 5-7 PM, we will have a fundraiser for Mayor Sanders...and we would like for you to attend!  The Mayor will be in attendance, and you will have a chance to visit with him and hear his plans for the City’s future.

 

Please open the flyer (click here), complete it, and fax it back to 858-558-8444.  You can also RSVP by calling Jean Freelove at 858-481-0300.

 

·        Up to $320 per person by personal check / $640 per couple w/ joint checking account

·        Check made payable to “Re-Elect Mayor Sanders”

 

It is unlawful for a contributor to be reimbursed by an individual, organization, business, or similar entity for a contribution supporting or opposing a City candidate.  

 

We know some of you have already contributed to the Mayor's Re-election campaign..."Thank You!"....but we hope you still will stop by.

 

 

Construction Costs Outrun Overall PPI; Steel Hikes Proliferate; McGraw-Hill Starts Rise

By AGC of America’s Chief Economist, Ken Simonson

 

The producer price index (PPI) for finished goods rose 0.2% in February, not seasonally adjusted (0.3% adjusted), and 6.4% over 12 months, the Bureau of Labor Statistics (BLS) reported on March 18.  The unadjusted PPI for inputs to construction industries climbed 0.6% and 5.5%.  Inputs to highway and street construction rose 0.7% and 11.3%; other heavy construction, 1.1% and 8.5%; nonresidential buildings, 0.6% and 5.6%; multi-unit residential, 0.3% and 3.7%; and single-unit residential, 0.5% and 2.8%.   

 

Significant contributors to the varying results included diesel fuel, up 2.2% and 48%; copper and brass mill shapes, 5.8% and 14%; hot-rolled steel bars, plates and structural shapes, 3.5% and 12%; asphalt paving mixtures and blocks, 0.6% and 3.7%; concrete products, 0.4% and 2.5%; insulation materials, down -0.1% and -3.9%; lumber and plywood, -0.2% and -5.8%; and gypsum products, -0.2% and -20%.

 

“Steel producers are reporting an unprecedented price spiral at a time of lackluster domestic demand, beckoning higher costs for everything from refrigerators to new office towers during a period of economic weakness.,” Econoplay (www.econoplay.com) reported on Thursday.  “The pricing gallop has been dizzying, soaring in excess of 50% for several benchmark products since hitting a cyclical trough last summer, toppling old records in recent weeks.  Domestic steel prices are now at the mercy of fast-rising import prices that are subject to global supply constraints, strong demand outside the United States, and stockpiling ahead of more predicted price increases….U.S. steel producers are running mills at full tilt as they win new foreign customers outside the traditional bounds of Canada and Mexico for the first time in living memory.  They’re also filling the gap left by foreign producers that have shied away from the U.S. market.

 

John Cross, vice president of marketing for the American Institute of Steel Construction, discovered a spike in the number of respondents seeing construction jobs put on hold—26% this quarter [in his latest survey of members] versus just under 15% in the fourth quarter.  Cross views the commercial construction downturn as “spotty,” seeing offsetting strength in energy-related and industrial projects, healthcare, and hotels and resorts - the latter a beneficiary of the cheap dollar, which draws in foreign tourists while keeping U.S. travelers closer to home.  “A lot of steel is rolling into Las Vegas,” he said, pointing out that steel production in January was higher than in any other month in history.”  

 

AGC has received numerous reports of recent and pending steep hikes for electrical steel, strand, anchors, wedges, studs, structural, carbon and alloy steel plate.

 

New construction starts in February advanced 2% from January, McGraw-Hill Construction reported March 18, based on its own data collection.  “The gain for total construction reflected a strong performance by non-residential building, which for the second month in a row was boosted by groundbreaking for several very large projects.  At the same time, non-building construction (public works and electric utilities) fell back from January’s elevated pace, and residential building dropped further as its lengthy correction continues.  For the first two months of 2008, total construction on an unadjusted basis [was] down 18% from the same period a year ago.  If residential building is excluded, the value of new construction starts during the first two months of 2008 increased a slight 1% compared to last year.”

 

For more discussion of specific items, download AGC's March 2008 Construction Inflation Alert at www.agc.org/CIA.

 

 

iSqFt “Subcontractor” Seminar – April 2nd

 

iSqFt and the AGC San Diego Chapter will be holding a network information sessions in support of commercial general contractors in the San Diego area who utilize the iSqFt Private Construction Office to distribute their bid invites, host their project documents, and communicate with bidders about their upcoming projects.

 

The luncheon, sponsored by the AGC – San Diego Chapter and iSqFt, is scheduled for Wednesday, April 2nd from 11:00 am until 12:30 pm at the AGC office, located at 6212 Ferris Square, San Diego, CA 92121. 

 

An additional session will be held on Thursday, April 3^rd from 4:30 pm until 6:30 pm at the Pala Casino Spa & Resort, located at 11154 Highway 76, Pala, CA 92059.

 

Both sessions are FREE to attend.  To RSVP, please complete the registration form, or contact Jessica Kovack, AGC, at 858-874-8560 ext. 11, jessica@agcsd.org, or call iSqFt directly at 1-800-364-2059 and select option 3.

 

REGISTRATION FORM (CLICK HERE)

 

 

The AGC Spring Golf Tournament- Monday, May 12 – Wait List Only

 

As we have indicated on Thursday, March 26, the AGC Golf Tournament is completely sold out.

 

We do have a waiting list started, so members can still send in their registration forms (call Rae). Keep in mind that the tournament is 8 weeks away and plans can very well change by then.  If a cancellation comes in, we will go to the waiting list to fill the open spots.

 

Members who would like to contribute a raffle prize or donate to the raffle prize fund can complete the raffle form. Sponsor names will be announced during the raffle prize drawing at the dinner banquet after golf.  We suggest to those that are contributing an actual prize to attach your business card to the item.  This will remind the winners of your generosity. 

 

Contact Rae Krushensky at 858-731-8157 or at raek@agcsd.org with any questions.

 

Special thanks to

Casper Company, Rossin Steel, Inc. and Marks, Golia & Finch, LLP as our Major Sponsors!

 

 

Welcome New Members

 

The AGC Board of Directors and the AGC Staff would like to welcome the following new members to the Association.

AGC’s Motto "It is good business to do business with an AGC member.”

 

 

Company	Type of Work	Contact	Phone	e-mail
ARB, Inc.	GC- Heavy/Underground	Tim Burks	(949) 598-9242
Bolts 4U	Fastener & industrial distributor	Brian Maltby	(760) 736-0010	brian@bolts4u.com
Cal-State Compliance & Consulting	Labor compliance	John Young	(619) 741-1016	jfyoung@cox.net
Cunningham BMW	Auto Dealer	Tom Clark	(619) 442-8888	Tom.clark@cunninghammw.com
Hunsaker & Associates SD, Inc.	Civil Engineering	Dan Smith	(858) 558-4500	dsmith@hunskakersd.com
J. Reese Construction, Inc. a Barnhart Company	GC - Building	Doug Barnhart	(858) 759-4879	jreeseconstruction@live.com
J.R. Masonry, Inc.	Masonry	John Midose	(619) 444-1824	jrmas@cox.net
Owen Group	GC- Building	Michael Chegini		tferguson@owengroup.com
Simon Wong Engineering	Engineering	Simon Wong	(858) 566-3113
T-Mar Construction, dba Martin Corporation	Drywall/Plaster Steel	Mike Hamilton	(760) 489-7010	mike@martindrywall.com
Williams & Sons Masonry, Inc.	Masonry	Todd Williams	(619) 443-1751	todd@sons.sdcoxmail.com
Western Fire Protection	Fire Protection	Gary Pitchford	(858) 513-4949	gary@westernfireprotection.com

 

 

Please note: 
***** Please register on-line for classes ******
Go to our website at www.agcsd.org and click onto Calendar for either
Construction Education Classes or Safety Training.

 

March 25-26- CQM- 7:30 a.m.

March 25- Excel- Formulas & Functions -8:00 a.m.

March 26- CPR/First Aid Training – 8:00 a.m.

March 27- PM class- 3:00 p.m.

 

All meetings at AGC unless indicated otherwise
 

March

March 26– Government Relations Committee meeting – 10:00 a.m.

March 26 – PAC Committee meeting – 11:30 a.m.

March 28 – Technology Trends in Construction meeting – 7:00 a.m.

 

If you are interested in signing up for a committee, CLICK HERE

 

 

 

UPCOMING AGC EVENTS
 

2008 AGC Events
May 12 - Spring Golf

June 10 - Baseball Bash

July 18 - Day at the Races

August 2 - Affiliate Day Golf

October 11 - AGC Family Western Day