City Council Members Accuse the Construction Industry of Racism and Discrimination
By Jim Ryan, Executive Vice President 

On August 1, Mayor Jerry Sanders apologized for the City’s “lack of action” in creating opportunities for minority and female owned firms on City of San Diego construction projects.  His apology came at the City Council’s Committee on Rules, Open Government, and Intergovernmental Relations (Rules Committee), where a report was received on the City’s Equal Opportunity Contracting program for the fiscal year 2007 (7/106-7/1/07). 

Mayor Sanders apologized because Asian, Black, and Latino Contractors received 7% of the City’s prime construction contracts, which represented 3.9% of the total contract value.  The same groups received 12.3% of the subcontracts awarded by the prime contractors that represented 8% of the total subcontracted contract value.

Councilmember Tony Young was upset with these numbers.  During the Rules Committee meeting he said, “We believe that there probably is, almost for sure, that there is some discrimination going on in this city, there is some racism going on in this city.” Art Cribs, who recently resigned from the City’s Citizen’s Equal Opportunity Commission said, “Corrupt, compromised and newfangled schemes to camouflage practices of discrimination, continue to plague our society, including San Diego.”

When Councilmember Young reviewed the Mayor’s report detailing which races/gender were awarded City contracts, the boxes in the report detailing African American participation included no prime contracts for African Americans and $111,000 in the subcontract box.  When asked to comment on the African American numbers to San Diego City Beat he said, “If someone who came into town and just looked at the numbers, he would say there’s a good chance that there is (racism).  Either no one who is African American, or no one who is a women, can do the work or that there seems to be some system or individuals who have decided not to allow equal participation.”

Councilmember Donna Frye was also upset with the report, which contained boxes only for African Americans, Asian Pacific, Caucasian, and Hispanics…..and no reference to women owned firms.  City Beat reported that during the Rules Committee meeting, Frye said “I found it interesting that as sad and sorry as the empty box under African Americans is, at least you got a box.  Women didn’t get a box.  We’re still fighting to get a box.  Especially since I’m pretty sure women are half the population.”

As a result of all of this, Councilmembers Young and Frye have asked in a memo to City Attorney Michael Aguirre to research legal strategies that would allow the City to ignore Proposition 209, the voter approved initiative that prohibits government entities from giving preference based upon race or gender.

The Mayor, through the Citizens’ Equal Opportunity Commission, held an Equal Opportunity Contracting Summit on August 28^th in response to all of this.  AGC was not invited because we would become the “focus” of the Summit if we were to attend.

Hmmm…I find it interesting that the organization that represents the prime contractors that win the vast majority of City contracts was not invited……again, I find it interesting….but not surprising.

After three decades of government entities trying to solve the diversity in construction “problem,” I am convinced that the well-meaning politicians that produce quotes like those above are in a difficult position.   When their constituents complain about the percentage of construction contracts they are awarded, the politicians seem to feel they have no choice but to infer that the industry is practicing discrimination and is racist.  The solution they propose usually involves a quota system that requires awarding a percentage of all City contracts to each group that is complaining in a proportionate amount to the number of citizens living in the public entity that are of that ethnicity or gender.  This strategy has never worked and usually is found to be illegal.  But, to call for this strategy in public meetings is good politics for the politicians. 

The next step will be a year or two of meetings, summits, etc., and eventually nothing much happens.  During this whole process, the politicians seem to infer that those that are doing the work are somehow racists and are practicing discrimination.

Well…AGC understands this.  We understand that we are usually the “bad guy”.  For this type of effort to work politically, an “enemy” is needed, and throughout the country it usually ends up being the local AGC Chapter…and San Diego is no exception

The fact of the matter is that the only San Diego organization that has made any real progress in bringing diversity to the construction industry is the AGC.  In next week’s Monday Morning Quarterback, I will detail our efforts and show our political leaders that AGC, instead of being the enemy, is actually leading the way. 

The industry is offended…we do not like to be call racists…we do not like to be accused of practicing discrimination…especially when we are one of the most diverse industries in the United States.  

 

A Summer These Students will not  Forget!

By Brad Barnum, Vice President Government Relations

Thanks to AGC members, Construction Tech Academy (CTA), San Diego State University (SDSU), and Cloud 9 Shuttle, ten students have a story to tell about what they did for eight weeks this summer.   From all indications, they are wonderful stories, ones shared by the contractors who hired them.

We have attached an article written by Allison Mason of Contractor News and Views that provides a great summary of the inaugural “Summer Jobs Program”.  Allison, Marcy Knopman, and I spent one morning with some of the students, and we were quite impressed with what we saw.  I think you will agree!

On behalf of AGC and its Board of Directors, I would like to thank Tom Anderson (AGC’s 2007 President), and the “Foundation for Success Committee” for making this program a reality.  The following contractors also should be thanked for the commitment to hire a student for the summer:

Barnhart, Inc. - Tex Barnhart and Justin Taylor
Bergelectric Corporation - Tom Anderson and Carl Zirkus
Brady Company- Carol Ray and Tom Di Fiore
Clark Construction - Carlos Gonzalez and Chip Hastie
Daley Corporation - John Daley, Jr. and Gary Kaland
Hensel Phelps - Wayne Lindholm , Alex Begg, Bill Welch, Tom Diersbock
Pacific Rim Mechanical - Terry Broyles and Rick Amison
Reno Contracting - Walt Fegley
Sundt Construction - Dan Meler and Carol Brooks
Swinerton Builders - Don Adair and Paul Vujica
T.B. Penick & Sons - Tim Penick and Michelle Matricardi
Turner Construction - Carmen Vann

Success would not have been achieved without the partnership with Construction Tech Academy.  Thank you to Glen Hillegas, Kathy Thompson, and Jack Chapel for finding energetic and committed students.  Dr. Ken Walsh, Associate Professor from SDSU’s College of Engineering, thank you for finding Sam Tolpen at Patrick Henry High School, and thank you for your continued leadership at SDSU.  Some of these high school students are now your students!  The best quote from one of the students sums up their summer experience, “We are getting paid, but we really should be paying them [the contractors].”

John Hawkins of Cloud 9 Shuttle….thank you, and thank your staff and drivers for providing a much needed transportation program.  We could not have done it without you!  We couldn’t have had transportation without funds, so thank you Tom Anderson (Bergelectric), Kevin Elliott (Roel Construction), Scott Erreca (Erreca’s, Inc), Candace Friedman (Acme Safety & Supply), Ron Hall (McCarthy), Jeff Harper (Harper Construction), Ed Nokes (ABD Insurance Services), and Tom Rademacher (FCI Constructors) for stepping up to the plate.

Scholarships are not far away for future students in the program, and we would like to thank the following AGC members who have contributed to the initial fundraising drive:  Tom Anderson (Bergelectric), Tex Barnhart (Barnhart, Inc.), Russel Baumgartner (Concrete Contractors Interstate), Greg Becker (Cement Cutting), Scott Brady (Brady Company), Scott Erreca (Erreca’s, Inc.), Mark Filanc (J.R. Filanc Construction), Jeff Harper (Harper Construction), and Tom Rademacher (FCI Constructors). 

The summer of 2007 was an unforgettable one, and we look forward to many successful summers ahead!  If your company is interested in hiring a student for next summer, please email Marcy Knopman, AGC staff liaison for the Foundation for Success Committee at mknopman@agcsd.org  and she will place you on the list.

We also continue to look for financial assistance to help pay for transportation services and future scholarships. 

Plans are already underway for the Summer Job Program 2008! Carlos Gonzalez, Clark Construction, has stepped up to chair the Foundation for Success Committee. If you would like to be a part of this rewarding committee, click here.

 

AGC Helps Keep “Clean Construction Equipment” Requirement Out of Infrastructure Bond Projects

A legislative move to require particulate traps be retrofitted on construction equipment used on projects funded by last year’s infrastructure bond measures was stopped in Sacramento last week with strong pressure from AGC, construction stakeholders, and labor.  Amendments to SB 410 (Simitian) would have been overly burdensome and unnecessary to an industry that is currently complying with the most stringent air quality regulations in the country that were recently adopted by the California Air Resources Board.

The recently adopted CARB Off-Road diesel equipment rule will impact all equipment owned by construction firms operating in California.  The rule will require construction fleets to retrofit 20% of their fleet each year until the entire fleet has be equipped with Particulate Matter (PM) traps or replaced with new equipment.  By its own admission, this is the most expensive rule ever adopted by CARB.

There is the very real issue of a lack of supply to meet the demand that would have been created by SB 410.  Currently, CARB has verified just one device that can realistically be used on a piece of equipment at a construction site – at a cost of between $20,000 and $25,000 per engine.  It is not verified for all pieces of equipment.  It triggers a fuel penalty and increases greenhouse gas emissions, as do almost all of the devices being verified by CARB.  

SB 410’s clean construction requirements would have slammed the door shut for smaller companies and minority-owned businesses to work on bond projects.  Fewer bidders would have reduced the buying power of the bonds and resulted in fewer completed projects.  Because devices would need to be installed prior to bidding on a project, many medium and small size companies would have been unable to bid.  Fewer bidders drive up the cost of the projects and limit the number of projects that can be completed with the bond dollars.  The CARB requirement is already expected to add $2 billion to the cost of the bond program.

SB 410 would have had a devastating impact on construction companies that employ nearly one million Californians.  Coupled with the push to comply with the CARB rule, many construction businesses would have been forced to either significantly reduce their workforce to be in compliance or go completely out of business – which would mean the loss of as many as 10,000 high-wage union jobs.

A big “Thank You” goes to Dave Ackerman, AGC’s Legislative Advocate, for his tireless efforts to defeat the amendments.  Credit also goes to the Operating Engineers, Laborers, and Carpenters!

 

AGC of America Supports Funding for Infrastructure Improvements

 

Bridge Reconstruction Initiative

AGC submitted a statement in support of the National Highway System Bridge Reconstruction Initiative at a hearing last week in Washington D.C.  The hearing was called to address the nation's response to the 74,000 structurally deficient bridges recently highlighted by the tragic failure of the I-35 bridge in Minneapolis.

 

The bridge reconstruction initiative would increase inspection standards for bridges on the National Highway System, provide dedicated funding to states distributed according to a needs- based formula to address the deficient bridges, create a new Highway Trust Fund-like funding mechanism, and increase the federal excise tax on gasoline by five cents to provide the new trust fund with necessary revenue.  The initiative would also prohibit any of the funds from being earmarked for specific projects.

 

AGC noted that increasing the federal motor fuels tax on gasoline is vital to address not only bridge needs but transportation infrastructure needs in general.  AGC renewed its long-standing call for the gas tax to be indexed for inflation to ensure that the buying power of the revenue is maintained.   AGC also recommended that states that have shifted more than 80% of their federal bridge funds to other needs should be moved down the priority list to receive these new funds.  AGC supports the provision to forbid earmarking.

 

A formal bill has not yet been introduced.

 

"Build America Bonds"

Senators Ron Wyden (D-Ore.) and John Thune (R-S.D.) last week announced the introduction of legislation authorizing the issuance of $50 billion in "Build America Bonds" over the next six years to finance roads, rail, bridge, water and other critical infrastructure projects.  AGC of America's Steve Sandherr participated in a press conference with Senators Wyden and Thune and other industry stakeholders in support of the legislation.  AGC views this effort as an additional one-time supplement to any increase AGC is able to get in the user fee.

 

The legislation would establish a commission to provide funding for "qualified projects" proposed by a state.  The funding would provide a one-time boost in supplemental infrastructure funding above the amount the Highway Trust Fund and other federal construction spending programs currently supported. 

 

AGC Industry Liaison Committee Chairs to Participate in Regional Construction Forum

Four chairs of AGC’s Industry Liaison Committees will participate in the 9^th Annual Paths to Partnership Networking Forum on September 20 at the Sheraton San Diego Hotel and Marina - East Tower.  The forum has been an effective tool in helping contractors establish new business relationships, learn how to do business with government agencies, learn about challenges associated with building, maintaining, and improving public infrastructure, receive a look-ahead of upcoming public agency projects, participate in panel discussions, obtain Small Business and Disabled Veteran Business Enterprise certification information, and visit vendor and public agency exhibits.

Airport Liaison Chair Jon Wald (Sundt Construction) and City Liaison Chair Jeff Scheidel (Scheidel Contracting and Engineering) will participate in the “Linking Regional Construction Projects” panel; Caltrans Liaison Chair Jeff Turner (FCI Constructors) will participate in the “Infrastructure Bond Cooperative Outreach” panel; and Public Building Liaison Chair Rick Cohen (Jaynes Corporation) will participate in the “Building Now for the Future of Education” panel.  

Over 800 guests are expected to attend the forum, which is being sponsored by the San Diego County Water Authority, the California Department of General Services, Caltrans, and over 50 public agencies throughout the region.  Registration begins at 12:00 Noon, with a welcoming program at 1:00 PM.  The discussion panels begin at 1:30 PM, and a networking reception will close the event from 3:00 – 5:00 PM.  Exhibits are open from 1:30 – 5:00 PM

Information/registration material can be obtained via the Internet at www.pathsreg.org.  Registration before September 14 is $25 per person.  Registration after September 14 is $40.  For more information, or if you have any questions, please contact Emily Yanushka at (858) 522-6515.

 

*** REMINDER:  BUILD SAN DIEGO ENTRIES DUE SEPT. 10^th BY 5 PM. Any questions, contact Rae Krushensky at 858-731-8157. 

Invitations for the Build San Diego Awards Luncheon on November 1^st at the Manchester Grand Hyatt will arrive in the mail this week.  We have also attached the invitation for your convenience.

 

AGC- San Diego Chapter 2008 Membership Directory

The Associated General Contractors, San Diego Chapter is committed to providing our members with the information and tools you need to help grow your business. For this reason, we have partnered with Naylor, LLC again this year to publish our annual Membership Directory. Naylor currently works with over 20 AGC chapters including AGC California. The Membership Directory serves as the official image piece for AGC-San Diego Chapter.

A Naylor representative will be contacting you regarding advertising opportunities in the 2008 Membership Directory starting September 26th. We encourage you to allocate a part of your advertising dollars to support AGC-San Diego Chapter’s 2008 Membership Directory.

For more information on advertising, please contact Jason White, Naylor, LLC, 800-369-6220 x 6970 or JaWhite@naylor.com.

We will officially begin the 2008 Membership Directory updates in October, however, if you would like to submit your listing early, simply click here to make any necessary changes. Any questions regarding advertising or listing, please contact Marcy Knopman, Director of Communications at mknopman@agcsd.org, or call (858) 731-8162.

 

The AGC Specialty Contractor’s Council Tailgate and KGB Sky Show….Saturday September 22nd
By Jim Ryan AGCSD Executive Vice President

The Annual AGC Aztec Tailgate & KGB Sky-Show is now just around the corner.  

With this event, you can treat your employees to a fun football tailgate, attend a great college football game, and witness the best fireworks show most of us have ever seen, all for $40 per ticket!!!!  It’s a great package deal!  Remember, the profits from this event go to fund scholarships for SDSU’s JR Filanc Construction Engineering and Management Program!!!!

Click here for registration form for the 7^th Annual AGC Specialty Contractor’s Council Tailgate  ….register now…. All tickets on hand are now sold!  A final order will be made Tuesday morning

The Specialty Contractors prepare tri-tip carne asada with a “real man’s” stainless steel barbeque that is 20 feet long, and is transported on a large trailer with tandem wheels.  The barbeque is owned by Bergelectric and American Technologies.  It is probably worth the ticket price just to see the grill and our Specialty Contractors preparing the food!!!!  A great tailgate…..great college football……and the KGB Sky Show…..Give your employees a treat…….register now!!!!!

Contact Rae Krushensky at 858-731-8157 with any questions.

 

“AGC Education & Training….Building a Solid Foundation”
The latest AGC Education Catalog (July – December 2007) is now posted on our website, or you can CLICK HERE FOR CATALOG 

Safety Training Classes
 

SEPTEMBER
CPR/First Aid – September 26- Click here for flyer / Click here to register
 

Construction Education Training Classes

 

SEPTEMBER
Delay & Disruption - September 13- Click here for flyer/ Click here to register
Excel Formulas & Functions –September 18- Click here for flyer/ Click here to register
MAP 12 O’clock High -September 18- Click here for flyer/ Click here to register
Prevailing Wage September 19- Click here for flyer/ Click here to register
EM385-1-1 September 20, 21- Click here for flyer / Click here to register
HR Seminar- September 20- Click here for flyer
LEED Building – September 25- Click here for flyer / Click here to register

 

All committee meetings are held at AGC unless indicated otherwise 

SEPTEMBER
Sept. 12 – Affiliate Members’ Council – 12 PM (changed from Aug. 23^rd)
Sept. 12 – Government Relations – 10 AM
Sept. 12- PAC – 11:30 AM
Sept 17- YCF – 12 PM
Sept. 18- HR Committee Meeting- 11 AM
Sept. 19 – Public Building Liaison – 7 AM
Sept. 21 – Builders’ Exchange – 7 AM 

AGC Toastmasters- Every other Wednesday- 7 AM at the Roel Training Center. Click here

For more information, please contact the President of Toastmasters for AGC, Mandy Parent at mparent@4datanet.com

 

UPCOMING AGC EVENTS

SEPTEMBER…
September 15 – AGC Softball Tournament
September 22 – SDSU Aztec Football Tailgate & KGB Sky Show- click here for registration form

October 12- Midway Mixer- click here for registration form
November 1 - Build San Diego Awards   
December 1- Holiday Dinner Dance- Hotel del Coronado
December 13- Annual Meeting- Hilton Mission Bay 

SAVE THE DATE – 2008  

Spring Conference in Cabo San Lucas, Mexico – April 17-20, 2008