AGC San Diego Board of Directors Rejects Staff Plan to Double Pension Benefits

 

The AGC San Diego Board of Directors voted 21-0 on Thursday to reject a plan proposed by the AGC staff to double the staff’s pension benefits. The plan, as presented to the Board, included a provision that would eliminate not only any increased contribution as a result of dramatically increased benefits, but would have also eliminated for, at least a few years, any contribution to the pension plan.

 

Staff explained that the proposal was a win-win situation. The staff would benefit by having a much larger pension provided by AGC, and AGC would be able to benefit because the contribution to fund this new benefit could be deferred beyond the terms of any existing Board member.  It was proposed that the funds that had been set aside to fund the staff pension could be used to enhance AGC social events that are attended by the Board members.

 

The reaction of the Board to this plan was not very reserved.  Staff tried to explain that all of this actuarial “stuff” is very complex, and that the Board should just not worry about the details and move forward with the plan.  A number of Board Members responded by asking staff, “Are you crazy!”  However, staff responded by suggesting that the Board is composed of contractors and affiliate members….you can’t be expected to be pension experts.  If it does not work out, the membership will understand and will accept a dues increase to fund the benefits. And remember…it will be the problem of a future Board anyway!!

 

A Board member responded to all of this by agreeing that pensions are very complex and difficult to understand.  However, you do not need to be an actuary to understand that doubling the pension benefits for the staff and eliminating the contribution to fund the pension will not work.  The Board member also made it perfectly clear that the results of this type of plan are the responsibility of the Board…they do not have a staff member or anyone else to hide behind if the plan does not work!!!

 

Staff was asked to sit down, the plan was voted down unanimously, and the staff now understands that the AGC Board has no intention of accepting an ill-conceived pension funding plan that provides some questionable short-term benefits but is devastating in the long-term.

 

(Editor’s note…ok this all may not have actually happened, but…. I suspect that our Board would have reacted in this matter if the staff did propose such a plan…perhaps we should have more contractors on the San Diego City Council.  The Council accepted a similar plan a few years ago…and their bad decision will affect the funding of the City’s infrastructure and services for decades.  And yet, the responsibility for all of this has been placed on the City staff at the time…the Council members at the time say they were confused!!!  Hmmm… we increased benefits and eliminated the funding…doesn’t seem all that complicated does it!

 

 

AGC San Diego’s Spring Conference This Week

 

If you notice AGC members missing later this week it is because nearly 150 members will be attending the AGC Spring Conference at the RIU Resort in Cabo San Lucas, Mexico. The Conference begins Thursday and will conclude on Sunday. Sponsors for the event include:

 

Collins Plumbing

Echo Pacific Construction

FCI Constructors, Inc.

Helix Electric, Inc.

J.R. Filanc Construction Co., Inc.

John Burnham Insurance, a Division of UnionBanc Insurance Services, Inc.

Modern Masonry

Roel Construction Company, Inc.

Rossin Steel, Inc.

West Coast Group Benefits

 

The business meeting will feature Steve Sandherr, the CEO of the AGC of America and Tony Fulton, formerly the   University Architect for the Department of Environmental Engineering at SDSU. The agenda for the Spring Conference also includes a variety of activities ranging from deep-sea fishing to shopping in the Cabo area, to golf at the Cabo San Lucas Country Club.

 

 

Bill Sharp, Barnhart, Inc. Elected to AGC San Diego Board of Directors

 

Bill Sharp, the COO of Barnhart Inc., has been elected to the AGC San Diego Board of Directors to complete the term of Edward Wylie, C.E. Wylie Construction Company.  Mr. Wylie resigned in order to devote more time to his business. The bylaws call for the Board of Directors to appoint a member to complete a term of a member that resigns.  This term will end in December of 2009.  The position is a General Building Contractor position on the Board.

 

Bill Sharp has been serving on the AGC Executive Committee as one of the two individuals appointed to the Executive Committee each year by the AGC President.  However, this position was not a voting position on the Board.

 

Welcome to the AGC Board, Bill!!!

 

 

$400 Million to be Allocated to San Diego’s Goods Movement, But When?

 

San Diego’s construction industry received good news from the California Transportation Commission (CTC) last week, as $400 million was approved to be allocated to the region to improve key goods movement infrastructure, including highways, maritime facilities, rail lines, and border crossings.  The funds are part of the Proposition 1B $20 billion bond measure passed by voters in 2006.

 

The good news will become great news if the Legislature and Governor approve this allocation as part of the annual budget process over the coming months.  However, with the state facing a massive budget shortfall, you can expect all state funds to be closely scrutinized.

 

In any event, let’s go over the allocations and see what the region will get if all goes well with the budget.  The projects, their total costs, and the Prop 1B allocation:

 

·         SR 905 Freeway (Britannia Blvd. to I-805) – Total cost: $104.7 million.  Allocation: $91.6 million.

·         SR 11 and Otay Mesa East Border Crossing – Total cost: $715.2 million.  Allocation: $75 million.

·         Port of San Diego Access Improvements – Total cost: $191.3 million.  Allocation: $83.6 million.

·         Port of San Diego Wharf Extension – Total cost: $34.3 million.  Allocation: $15 million.

·         San Ysidro Intermodal Yard and South Line Mainline – Total cost: $147.5 million.

                                                                                                Allocation: $124 million.

·         Sorrento-Miramar Double Track Phase I – Total cost: $23.7 million.  Allocation: $10.8 million.

 

Total cost of all projects: $1.2 billion. Total Allocation for all projects: $400 million.

 

AGC applauds SANDAG’s Board of Directors, Executive Director Gary Gallegos, and his staff for their tireless efforts to protect San Diego’s fair share of the state’s infrastructure dollars (and for providing the above information!)Let’s make sure the Legislature and Governor don’t disappoint! 

 

 

“Politics 101” - Legislative Day in Sacramento, June 18

 

If you want to see "political action" first hand, please consider attending AGC's Annual Legislative Day in Sacramento on June 18.

 

Every year, nearly 100 members from AGC San Diego and AGC-California trek to Sacramento to talk "construction" issues with legislators.  This one-day visit to the State Capitol provides an up-close view of the legislative process and allows an opportunity for members to hear from legislative leaders, the Governor's Administration, and other political insiders.

 

We have received some good reviews from our "first timers" on this trip, and we have a number of AGC Board members who attend every year.  That is a good indication this trip to Sacramento is a good one!

 

We encourage you to participate in our Legislative Day on June 18.  Click here for a memo/registration form that has additional information.  We hope you will consider participating in this informative trip to our State’s Capitol.

 

 

SDSU’s First Filanc Lecture in Construction Ethics Coming April 24^th

 

This April 24^th, SDSU’s J.R. Filanc Construction Engineering and Management Program will host the first Filanc Lecture in Construction Ethics, beginning at 5:30pm at the Prado. This is the only recurring lecture focused on construction ethics in the country, and was conceived as an opportunity for the San Diego construction industry to hold regular forums on this critical topic. All AGC member companies are invited.

 

The first Distinguished Lecturer will be Mr. Oscar Boldt, Chairman of the Boldt Group, Inc. of Appleton, Wisconsin. Mr. Boldt will describe the ethical and financial considerations involved in the Boldt Group decision to provide construction equipment to the rescue and recovery efforts at the Murrah Building after it was devastated in the infamous explosion.

 

The evening will begin with a reception beginning at 5:30pm. The lecture will start at 6:30 p.m. accompanied by dessert, and the event will end by 7:30pm. There is no cost to attend. Please RSVP by April 10, 2008, to Jaime Speregen at speregen@mail.sdsu.edu or call 619-594-3943.  

 

 

Welcome New AGC Members

 

The AGC Board of Directors and AGC Staff would like to welcome the following new members to the Association.  Remember AGC’s Motto:  “It is Good Business to do Business with an AGC Member.”

 

Company	Type of Work	Contact	Phone	e-mail
All Access Rentals	Equipment Sales/Rentals	Kevin Aylesworth	(619) 222-9337	info@allaccessrentals.com
Baker Electric, Inc.	Electrical	Ted Baker	(760) 745-2001	tnbaker@baker-electric.com
Bari Construction, Inc.	Carpentry	Khodayar Khalatbari	(949) 854-5202	bariconstructioninc@yahoo.com
CCH Construction, Inc.	GC-Building	Chris Heeney	(619) 971-7209	c_cconstruction@sbcgobal.net
Christian Brothers, LLC	Water damage /restoration & Mold remediation	Mark Matthews	(619) 469-8985	Christianbrotherscc@msn.com
Davis Framing, Inc.	Carpentry	Steven Davis	(619) 463-2394	steved@davisframing.com
E.L. Hobbs, Inc.	Drywall/Plaster	Eric Hobbs	(619) 401-1708	ericlhobbs@cox.net
Interpipe Contracting, Inc.	Mechanical	Ronald Smith	(619) 596-7733	Interpipei@msn.com
Irving Hughes/CM	Consultant	Kirt Gilliland	(619) 238-4393	kirtw@irvinghughes.com
Lakewood Building Systems	Drywall/Plaster	Charles Hill	(619) 531-0693	Chill_lakeview@msn.com
Pennsylvania Development Partners	Painting	Kevin Osborne	(951) 240-5683	kosborne@pacoatings.com
Perry & Shaw, Inc.	GC-Heavy	Michael Shaw	(619) 390-6500
Professional Service Industries, Inc. (PSI)	Consultant	Bill Baker	(858) 455-0544	Bill.baker@psiusa.com
Pyro-Comm Systems, Inc.	Electrical	Charles Boyer	(714) 902-8000	cbeyer@pyrocomm.com
Triton Structural Concrete	Concrete	Russell Gennaro	(858) 558-1800	russg@tbpenick.com
TALL (Training Academy for Leadership and Learning)	Financial Planning/Profitability Consultant	Thomas York	(760) 889-0882	tom@gottall.com
Wasserman Masonry & Stone Builders, Inc.	Masonry Brick Block Stone	Gary Wasserman	(858) 551-7096	garywasserman@mac.com
West Coast Sacking, Inc.	Concrete	Bertha Orduno	(775) 359-8859	wcsacking@sbcglobal.net

 

Raffle Prizes Requested for the AGC Spring Golf Tournament- Monday, May 12th

 

Members who would like to contribute a raffle prize or donate to the raffle prize fund can CLICK HERE for raffle prize 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.

 

 

 

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.

 

April - (click on links to register for the following classes)

 

April 18- Scaffolding and Hazard Awareness- 6:45 a.m.

April 22- Microsoft Word Level 2- 8:00 a.m.

April 24- Construction Fundamentals 101- 8:00 a.m.

April 24- Project Management Class- 3:00 p.m.

April 30- CPR/First Aid- 8:00 a.m.

 

All meetings at the AGC office at 6212 Ferris Square unless indicated otherwise

 

April

 

April 15- Navy Liaison Meeting @ AGC - 11:30 a.m.

April 22- Foundation for Success Meeting- 12:00 p.m.

April 23- Government Relations Meeting- 10:00 a.m.

April 23- PAC Committee Meeting- 11:30 a.m.

April 25- Technology Trends in Construction Committee Meeting- 7:00 a.m.

April 25- Caltrans Meeting @ AGC – 8:00 a.m.

April 30- Affiliate Council Meeting- 12:00 p.m (postponed from April 9)

 

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

 

 

 

Mark your calendars!
 

April 17-20- Spring Conference- Cabo San Lucas

May 12- Spring Golf

June 10- Baseball Bash

July 18- Day at the Races  

August 4- Affiliate Day Golf

October 11- AGC Family Western Day BBQ