AGC San Diego Board of Directors
By Jim Ryan, Executive Vice President 

On the second Thursday of most months, beginning at 7:00 AM, 21 of your peers in the industry spend a few, often intense, hours dealing with the important issues facing the construction industry at the state, local, and national level. 

The AGC Board met Thursday, April 12, 2007. President Tom Anderson, Bergelectric Corporation presided.  Let’s look at some of the issues that were addressed.

Disadvantaged Business Enterprises Caltrans Interim Disparity Study

The AGC Board has been dealing regularly with this issue since the 9^th Circuit Court of Appeals issued a ruling that basically required states in the 9^th Circuit, including California, to apply only race neutral goals to Caltrans projects.  Caltrans is in the process of conducting a statewide disparity study.  If the study can prove discrimination has taken place, DBE goals will return, not only to Caltrans projects, but also to local projects throughout the state.  The Board heard a detailed report on the Interim Disparity Study and AGC’s options.  This is a very complex, sensitive issue.  The Board will analyze a detailed legal opinion of the report in May.

California Air Resources Board (CARB) Diesel Emission Standards

The AGC Board has partnered during the past with the Los Angeles based Construction Industry Air Quality Coalition (CIAQC) to address this issue.  The CARB Board will conduct a hearing on May 25^th in San Diego.  During this hearing, the final regulations are expected to be adopted. The regulations could effectively eliminate 60% of the off-road diesel construction fleet by 2010.  The Board was updated on a number of complex issues and options.  AGC has donated $20,000 to this effort.  The Board will take a final position during its May 10^th meeting.  AGC’s Diesel Emissions Task Force (Scott Erreca, Erreca’s Inc; John Nelson, FCI Constructors; Steve Coker, TC Construction; Mike Carcioppolo, Hawthorne Equipment; Mike Furby, Marathon Construction; Mike Shaw, Perry and Shaw; John Daley, Jr., Daley will make a detailed report.

San Diego Junior Achievement’s Enterprise Village 

The Board voted unanimously to sign a three year $75,000 commitment to create an AGC “Construction Company” office in Junior Achievement’s new Enterprise Village.  Enterprise Village is located at JA’s new headquarters at 4756 Mission Gorge Place.  The AGC Education & Training Committee had previously voted to recommend this action to the Board.  AGC’s Education Committee Chair, Byron Klemaske II from T.B. Penick & Sons, and Enterprise Village Committee Chair Greg Barnes of Procopio, Cory, Hargreaves & Savitch, LLP gave the presentation.

Over 12,000 5^th graders each year will be exposed to the construction industry and other industries at Enterprise Village.  Monday Morning Quarterback will feature an article on Enterprise Village next week.

The Board also

• Approved the 2006 AGC Financial Statements which showed a surplus of over $200,000 for 2006.

• Approved membership applications of 17 new members.  Membership Committee Chair, Kevin Elliott, Roel Construction Co., Inc. reported that 31 new AGC members were accepted during the first quarter 2007, and the Plan Room had a net membership increase of 61, for total of 92 new members in the first quarter 2007.

• Heard reports concerning a number of AGC’s meetings & events.  The April 16^th Spring Golf was sold out; over 300 attended AGC Affiliate Mixer at Dave & Buster’s in February; and the AGC Spring Conference in Napa appears to be heading toward a near sellout.

The members of the AGC Board are a dedicated group who take on the tough issues facing the industry for the entire industry.  The 2007 AGC Board of Directors includes the following members:

President- Tom Anderson, Bergelectric Corporation
Senior Vice President – John Daley, Jr., Daley Corporation
Vice President – Kevin Elliott, Roel Construction Co., Inc.
Secretary/ Treasurer- Diane Keltner, Synergy Electric Company, Inc.
Past President- Thomas L. Brown, Sierra Pacific West, Inc.
Tex Barnhart – Barnhart, Inc.
Terry Cameron – TC Construction Co., Inc.
Mike Carcioppolo- Hawthorne Machinery Co.
Dave Carlin – Soltek Pacific
Nigel Cary- Cox Construction Co.
Mark Filanc – J.R. Filanc Construction Co., Inc.
Davide Golia – Marks, Golia & Finch, LLP
Bill Haithcock – Casper Company
Christina Gomez Holben – St. Thomas Enterprises, Inc.
Tim Penick – T.B. Penick & Sons, Inc.
Tom Rademacher – FCI Constructors, Inc.
Jeff Scheidel – Scheidel Contracting & Engineering, Inc.
Barry Swaim – Tower Glass
Don Whitacre- D.A. Whitacre Construction, Inc.
Monty Wilde – Sim J. Harris, Inc.
Edward Wylie – C.E. Wylie Construction Co.

 

Update on Ban the Banner
By Jim Ryan, Executive Vice President

Last year, I returned from the Annual Labor & Employment Law Council Construction Labor Law Symposium expecting to finally have the NLRB issue a decision concerning the legality of the Carpenter’s Union banners that complain that owners of construction projects have a “labor dispute” when the actual targets of the carpenters are non-union contractors they are trying to organize.

It appeared last year that AGC’s Unfair Labor Practice charge filed 6 years ago, was won at the “lower court” level of the NLRB, and has been on appeal for 5 years at the “full” NLRB in Washington, would be decided.  We were told “expect” a decision by July or August of 2006.

No decision….during 2006 or 2007. When questioned on Friday (by me!), high ranking NLRB officials were optimistic a decision would be made in the “next few months.”

So…………..we just wait! 

By the way….take a minute to wave at those $10 per hour temp workers holding the big banner in front of the Port of San Diego offices.  The banner says, “Labor Dispute Port of San Diego.”  Unbelievable!

 

A Best Value Contracting Approach that Crosses the Line
By Jim Ryan, AGC SD Executive Vice President 

During the Annual AGC of America Labor & Employment Law Symposium, Gerald M. Waites, and attorney with the Washington D.C. Law Firm of O’Donaghue and O’Donoghue gave a presentation entitled,

“Recent Development in Best Value Contracting…A View from the Building Trades.”

Okay, I am a little naïve….I assume Gerard was going to discuss the “Best Value” Procurement System as it related to building construction! 

Wrong!

Evidently, Gerard’s law firm is “an old line Irish Washington DC law firm” that has represented nearly all of the Building Trade Unions for years.  He, however, specializes in public works contracting law and policy.  He has worked extensively on initiatives for Best Value Contracting, Design Build, Contractor Prequalification, and other matters as a legislative counsel, lobbyist and procurement consultant.  He lists activity in 14 states from Colorado to New York.

Now here is what bothers me about Gerard’s “pitch.”  His Best Value Contracting (“BVC”) method is a rather unimaginative, simplistic version of a system that many federal agencies used in the 1990’s….contractors submit a price based upon 100% construction documents….and that counts 60% of the points in the competition.  The contractors also submit with their bid a RFP detailing their qualifications for the project…and this submittal counts 40% of the points in the competition.  The contractor with the highest point total (and not necessarily the low bid) wins the contract.

Now…at some point I assume dots could be connected by skeptics that are not too flattering to the system.

·         A law firm with strong union connections

·         Sends out a partner to consult and lobby public entities across the United States

·         To convince them to pass laws that allow a delivery system that includes a great deal of subjectivity in the selection process.

·         And, as Gerard proudly announced during the presentation…”this system is endorsed by a number of the Presidents of the various Building Trades Unions.”

Hmmmm!!!

There is no question that the market is demanding alternative delivery systems.  Many owners, public and private, feel using a more qualifications based system will give them a better construction product.

Well…I can guarantee that if we allow groups into the creation of these new systems that have “agendas” that really have nothing to do with selecting the best contractor, but have a great deal to do with selecting a certain group’s “favorite” contractor, these systems will all disappear.

There is a reason that nearly every state had laws that require public entities to use the contractor with the low, responsible bid…and they could all go back to that system if special interests get too close.

Gerard, stay in Washington and practice labor law. The Building Trades need to focus on providing labor to contractors…they should not be endorsing one construction delivery system over another…there is simply too much temptation!

 

Oversight Committee Members Sought for city’s Water and Waste Water Systems
- AGC Members Encouraged to Apply

As we reported to you in February, the City of San Diego approved rate increases in the water and sewer systems in order to make $1.2 billion of improvements.  Last week, Mayor Sanders signed an ordinance establishing a new oversight committee, the Independent Rates Oversight Committee (IROC), which will review and analyze finances and efficiency measures in both systems.  IROC will play a vital role as the City continues to fight its way out of its fiscal crisis, and we encourage AGC member participation.

The IROC’s primary responsibilities will be to: Assist in the selection and retention of the independent firm(s) to conduct the annual financial and performance audits of the water and wastewater systems; review reports from staff and the independent audit organizations on rate and bond proceed expenditures; review independent performance audits of the water and wastewater systems; provide advice on the efficiency and performance of both systems; and oversee savings efforts and deposits to the “Dedicated Reserve from Efficiency and Savings” fund.

The new 11 member Committee will include ratepayer representatives and professional experts in the finance, accounting, legal and auditing industries.   Each candidate for appointment to the IROC is expected to possess substantial experience and/or be a member of the following classes and professions:

• Single Family Residential Ratepayer

• Finance/Municipal Finance

• Multi-Family Residential Ratepayer

• Legal

• Commercial/Industrial Ratepayer

• Construction Management

• Temporary Irrigation/Construction Ratepayer

• Engineering

• Auditing/Accounting

• Environmental

• Science

If you are interested in seeking a position on IROC, please go to:  http://www.sandiego.gov/iroc/app.pdf  and complete the application (deadline to file: May 7, 5 PM).  It should be noted that there may be a conflict of interest if you perform work for the City’s Water or Waste Water Department.  You may want to contact the City Clerk’s Office at 619-533-4000 prior to completing an application.

The IROC will meet every other month at a minimum and more often if deemed necessary by the chair of the Committee.  It will replace the current Public Utilities Advisory Committee and will continue to conduct public meetings to gather input from ratepayers and other stakeholders interested in the City’s water and wastewater systems. 

Members will be nominated by the Mayor and confirmed by the City Council, which is also expected to refer candidates for the Mayor’s consideration.  The Mayor will provide a final slate of nominees for consideration by the City Council in late May.  All applicants will also be reviewed by the City Attorney’s office for eligibility to serve on IROC.

 

AGC Spring Golf Results:

The AGC Spring Golf Tournament was a tremendous success thanks to our major sponsors (Casper Company, Rossin Steel, and Marks Golia & Finch, LLP), all of our hole, beverage and contest sponsors and a group of very hard working committee members.

A complete list of all our sponsors and photos from the event will be posted on the AGC website in the photo gallery soon.

The course at the Country Club of Rancho Bernardo was in immaculate condition, the staff was extremely efficient, and the post-tournament prime rib dinner….delicious! 

We believe everyone who attended had a great time.  The tournament winners were:

Longest Drive 
Women’s    Darcy Wilson-Jones
Men’s         Paul Valenzuela

Closest to the Pin
# 4           Bill Keltner – 3 ½”
# 8           Randy Andrus – 4 ½”
# 12         Scott Vernon – 7’1”
# 17         Dan Cochetas – 7’ 11”

Tournament Team Winners

2^nd Place Peoria Net      Jeff Betts

                                   Pete Saucedo     

1^st Place Peoria Net      Steve Schippler

                                   Dan Spacone

2^nd Place Low Gross     Tim Burks

                                   Rod Nelson                                                     

1^st Place Low Gross     John Harper

                                  Ted Rossin

Congratulations!  We’ll see everyone again at the AGC Affiliate Day Golf Tournament on August 6 at the Sycuan Resort in Singing Hills.

Mark your calendars!

 

This Week - Expo Under The Stars- Friday, April 27^th and EXPO2007- Saturday April 28^th- Qualcomm Stadium
Mixer Presented By: ABD Insurance Services
A Blast Back to the Past!
Friday, April 27, 2007 from 6pm to 8:30PM at Qualcomm Stadium -Open to members of selected San Diego Associations and EXPO2007 exhibitors only!

Saturday, April 28^th- 8:30 AM- 2:30 PM- Free Admission- Qualcomm Stadium

For more information go to the EXPO website
http://www.expo4construction.com

 

April AGC Mixer- Tomorrow, Tuesday, April 24^th - 5:00 PM- 7PM at Seau’s

AGC member, RCP Block & Brick will be hosting the April 24 Mixer at Seau’s the Restaurant. As they did last year, RCP Block & Brick is joining together with their special vendors for this sponsorship. AGC attendees must pre-register by completing the attached form and faxing it to 858-558-8444. 

Remember, mixers are great events to bring your estimating, purchasing and project management staff to mingle with others in the industry.  Don’t forget to bring your business cards!

For additional information, contact Rae Krushensky at 858-731-8175 or see attached flyer

 

“AGC Education & Training….Building a Solid Foundation”

UPCOMING AGC CONSTRUCTION EDUCATION & SAFETY CLASSES

APRIL

Safety Training Classes
CPR/First Aid – Apr 25- SOLD OUT!
Spanish OSHA 10 Hour – Apr 27

MAY
Construction Education Classes
Project Engineering – May 8
NAVFAC CQM – May 8 & 9
Construction Estimating Bootcamp – May 9
Microsoft Project 2000/2003- May 15 & 16^th (class size limited to 12 students)
Preventing Sexual Harassment- May 16
Business Succession Planning - May 23
Microsoft Excel Formulas and Functions– May 29^th
EM 385-1-1 - May 31, June 1

Safety Training Classes
Crane Awareness – May 16
OSHA 10-Hour- May 21
CPR- May 30

Save the Dates

JUNE
Design a LEED Certified Building & LEED Commissioning- June 7 – July 5
Web CM - June 19
Scaffolding & Hazard Awareness- June 8
Trenching & Excavating- June 13
CPR- June 27 

 

APRIL
April 24 – Navy Liaison – 11:30 AM
April 26- Meetings & Events Committee- 12 PM
April 27 – Electronic Age Committee- 7 AM 

MAY
May 1- City Liaison – 1 PM
May 2- Safety Committee- 7 AM
May 2- Water Authority Meeting – 11:30 AM
May 10 – Specialty Contractors’ Council- 12 PM
May 15- HR Resources Practices Committee- 11 AM
May 15- Foundation for Success Meeting -12 PM
May 18- Builders’ Exchange- 7 AM
May 22- Construction Education & Training at CTA – 12 PM
May 23- Government Relations Meeting – 10 AM
May 24- Affiliate Members Council- 12 PM

 

UPCOMING AGC EVENTS
April 24 – AGC Mixer Seau’s Restaurant – TOMORROW HAPPY HOUR  5PM- 7 PM
May 31- June 3- Spring Conference in Napa
August 6 – Affiliate Day Golf Tournament – Singing Hills
November 1 - Build San Diego Awards