THE VIRGINIA TRANSPORTATION CONSTRUCTION ALLIANCE December 2016

PAGE 1

Dedicated to Advancing the Interests of the Transportation Construction Industries

Although the 2017 Virginia General Assembly session will be a “short” session because it is not a budget year, it is the budget that will be the driving most of the activities. Several months ago, Virginia’s revenue forecast showed that the state would enter 2017 with a $1.5 billion budget shortfall. Because Virginia is a constitutionally mandated “balanced budget” state, the General Assembly must make the necessary budget cuts to bring the biennial budget into alignment with revenue forecasts. While there will be another revenue forecast done in December, the shortfall number will likely remain in the $1.5 billion range.

When rebalancing the budget, legislators often look to other “cash” sources to make up the revenue shortfall. We saw this last year when the General Assembly considered transferring over $100 million from VDOT to the Port of Virginia. VTCA was successful in blocking the proposed transfer.

Our number one priority for the 2017 General Assembly session is simple. We will oppose any effort to raid the transportation trust fund and will PROTECT THE TRANSPORTATION FUNDING SUCCESS WE ACHIEVED IN 2013.

In addition there will be several other issues we will be focusing on, including:

Project Labor Agreements (PLAs): We were successful several years ago in getting the General Assembly to pass legislation that prohibited requiring PLAs on transportation construction projects. However, P3 projects are not subject to that limitation. We are talking to legislators about expanding the PLA ban to P3 projects.

Aggregate Producer Reclamation Fees: We will once again this year support DMME in their efforts to increase the reclamation fees on aggregate producers that have no operating experience in Virginia.

Gas Tax Floors in Northern Virginia and Hampton Roads: Unlike the statewide gas tax, the regional gas taxes in NOVA and Hampton Roads do not have a floor (minimum). Consequently, when gas prices fall, the tax revenue falls as well. VTCA will support an effort to put the statewide gas tax floor in NOVA and Hampton Roads.

Procurement of Professional Services: VTCA will work with other associations to pass legislation requiring local governments to state on the face of any procurement whether it is for professional or non-professional services. This will limit the ability of local governments to circumvent the restrictions for professional services procurement.

If you are reading this, you have a vested interest in transportation policy. It is imperative that you have a personal connection with your state Delegate and Senator. What can you do?

• Drop a note in the mail or send an email to introduce yourself and your company. See page 157-162 of the VTCA Directory for contact information.

• Invite them to come visit your operations. VTCA staff will be happy to help coordinate and to attend. • Walk the halls of the General Assembly during the session and visit with your legislators. Again, VTCA staff can show you

around.

Budget Will Drive Legislative Session

PAGE 2

VOX POPULI

Dear VTCA Members:

On November 18, over 20 VTCA members had an opportunity to sit down with Republican gubernatorial candidate Ed Gillespie at the VTCA office in Richmond. We heard his thoughts on transportation and we were able to share our views with him. As I was riding back to Roanoke, I was struck by the significance of the meeting and I wanted to share a few thoughts with you.

To be clear, this was not the first time we’ve met with a gubernatorial candidate; in August we met with Virginia Lieutenant Governor Ralph Northam, a Democratic candidate. What struck me about this most recent meeting in particular was the significance of the crowd in the room.

In attendance were a former Virginia Secretary of Transportation, a former VDOT Commissioner, several prominent contractors doing design-build and PPTA projects, smaller and larger bridge builders, prominent aggregate suppliers, paving contractors and several engineering professionals doing work all across the state.

VTCA President Paul Miklich, several past presidents and a number of current board members were in attendance. The folks in the room ranged from business owners to senior executives within their respective firms. It was a very distinguished group of people and I was proud to be with them.

What became clear during this meeting was the unique opportunity we had been given to again discuss transportation construction, maintenance, design, policy and funding with a prospective governor. We had a very fruitful discussion that lasted almost two hours. We covered a host of topics and scenarios and, at times, we were very candid in our differences.

I believe it is in discussions like these where transportation policies and positions are formed and crafted. While we didn’t solve all issues that day, we did open the door and lay the groundwork for future discussions.

Since becoming the first VTCA President over 10 years ago, it was apparent that day how far your Alliance has come. Our goal ten years ago was to be an organization representing all facets of the transportation construction industry. We have succeeded and will continue our impressive accomplishments on your behalf. We strive every day to be a well-respected and trusted source of information for members, the public, municipal and state governments and elected officials alike. Our most recent member survey indicated that advocacy was still the highest priority. I saw that in action on November 18.

In closing, I wanted to pass along my compliments to the Board, committee members and the VTCA staff for all they have accomplished to make VTCA what it is today. I feel strongly that because of a strong membership and dedicated leadership, VTCA has and will continue to achieve the goals we set over ten years ago. For that I’m grateful.

Rick JamesExecutive Vice PresidentAdams Construction Company

WINTER MEETING

PAGE 3

Schedule at a Glance

February 2 – President’s Reception at 6:00 p.m.

February 3 – Opening Breakfast at 7:45 a.m. General Session I from 9:30 – 11:30 a.m. VTCA Day at Gulfstream Park at 12:30 (optional) Golf at Turnberry Isle (optional)

February 4 – Hosted Breakfast on Your Own General Session II from 8:30 – 11:30 a.m. Golf at The Diplomat (optional) Party in Paradise Begins at 6:30 p.m.

February 5 – Depart Paradise (or stay a little longer if you can!)

Accommodations

Margaritaville Beach Resort rests on the legendary Hollywood Broadwalk. Make your reservations by visiting www.margaritavillehollywoodbeachresort.com or by calling 844-562-5625. Use our group code VTC0131. Rates are subject to taxes and fees, currently 12%, and a resort fee of $15 per night.

Run of the House - $299Ocean View - $319Ocean Front - $399Junior Suite - $449 (all are Intercoastal view)

For all the details visit www.vtca.org/vtca_calendar/events/2017_vtca_winter_meeting/. Call VTCA’s Lisha, Jan or Stephanie with questions.

The National Sand, Stone and Gravel Association (NSSGA) believes that changing Congressional committee structures following the Presidential election will have a significant impact on the mining community.

The Senate Environment and Public Works Committee (EPW) – which has jurisdiction over infrastructure spending and environmental regulations– will have a new Chairman, John Barrasso (R-WY) and Ranking Democrat Tom Carper, (D-DE).

Ashley Amidon, Director of Government Affairs for NSSGA said “Senate EPW will certainly play an integral role in discussions of President-elect Trump’s proposed $1 trillion infrastructure investment plan, as well as on key regulatory issues such as the onerous Waters of the U.S. (WOTUS) rule…” WOTUS has been vigorously opposed by the VTCA and NSSGA through outreach to Congress.

Senator Barrasso is a champion for overturning the WOTUS rule, which causes a permitting nightmare for aggregate producers. Carper is very active on surface transportation issues and is a proponent of increasing revenues into the Highway Trust Fund.

The annual Aggregate Safety Seminars are set for December 6 in Fredericksburg and December 7 in Roanoke. This year’s slate of speakers promises to be as impressive as those in the past.

We are happy to have Max Corley, of Dinsmore & Shohl, as the keynote speaker, providing his insight to matters related to the Mine Safety and Health Administration. Other hot topics include:

• The use of drones in mining, specifically as it relates to safety. David Hattan with Identified Technologies will discuss the many applications of drones in the mining industry.

• The issue of pump safe operation will be presented by Mark O’Sullivan of Godwin Pumps (Xylem).

• A presentation on rigging/crane safe operation and maintenance. Ron Witt is a certified MSHA Instructor, Master OSHA Instructor, and an instructor for the Rigging Institute.

• MSHA’s Northeast District Manager Pete Montali, and DMM’s Phil Skorupa and Vernon Harris will give their respective updates.

• The seminars wrap up with a particularly beneficial Q&A session.

Remember, these great seminars only work if you come!! Registration is available online at http://bit.ly/SafetySem16.

New Senate Leadership Looks Favorable To Aggregates Industry

Safety Seminars Coming In December

The initial offering of an MSHA Law Seminar by the Division of Mineral Mining took place November 1-3. The Seminar was offered at DMM headquarters in Charlottesville and was attended by approximately 30 safety professionals from around the Commonwealth.

The Seminar was patterned after an MSHA class that has been offered in North Carolina by the North Carolina Department of Labor for years and attracted many people from Virginia. The DMM, under direct leadership of Vernon Harris, welcomed the suggestion from the VTCA Aggregate Safety Committee to develop one closer to home. Based on the success of this Seminar, the DMM is planning on offering at least two in 2017.

Initial MSHA Law Seminar A Success

PAGE 4

THE ROCKPILE

DMM’s Vernon Harris addresses the MSHA Law Seminar class

November was a busy month for Individual Safety Awards. VTCA, in partnership with the Division of Mineral Mining (DMM), participated in numerous safety presentations to individuals achieving years of service without a lost time accident. A tip of the hard hat to these individuals and their operations for unwavering dedication to safety.

Aggregate Industries: Steven Miller – 20 years, Hamie Rowe – 25 years, Malcom Hall – 30 years, Garrett Howard – 30 years

Individual Safety Awards

THE ROCKPILE

PAGE 5

Virginia Vermiculite: William Deavers – 35 years

Rockydale Quarries Corporation: Paul Mattox, Jr. – 20 years, Richard Taylor – 20 years

Boxley: Thomas Colville – 15 years, Cecil Mayhew – 20 years, Jack McCarthy – 20 years, Calvin Bates – 35 years, Darrell Sowder – 30 years, (Not pictured) - Larry Huff – 30 years, Jerry Gray, Jr. – 15 years, William Phelps – 15 years

PAGE 6

VDOT NEWS

VDOT has updated and posted the revised 2016 version of VDOT’s Design-Build template documents (Parts 3-4-5) on their web site. The updates bring Part 5 in line with the 2016 Road and Bridge Specifications. Parts 3 and 4 reflect changes recently discussed with VDOT in VTCA’s Design Build committee meetings. One key change is new language addressing the use of Alternative Technical Concepts (ATCs) which became allowable following changes in Virginia code earlier this year.

The new Design-Build templates are available online at www.virginiadot.org/business/design-build.asp.

Virginia Tech Transportation Construction Management Institute – 29th Year

VDOT Updates Parts 3, 4 & 5 Of The Design Build TemplateRegistration Now Open!

Following twenty-eight years of leadership development for Virginia’s transportation industry Virginia Tech, VDOT and VTCA are excited to announce the 29th edition of the unparalleled staff development program, the Transportation Construction Management Institute (TCMI). Don’t miss the opportunity to give your future leaders the advantages of participating and graduating from this program.

Held on campus at Virginia Tech, TCMI is designed specifically for transportation construction industry professionals who are actively engaged in project management. The program focuses on the latest procurement and contracting trends with an emphasis on the management of design-build contracts and building and maintaining a safe working culture. The rigorous and rewarding Institute will improve participants’ ability to:

• Administer contracts, make decisions;

• Establish effective teams and maintain strong relationships and high trust levels with and within VDOT and the road building industry;

• Resolve disputes on-site and complete projects in a more cost-effective and competitive manner;

• Apply newly acquired leadership, management and interpersonal skills to areas of increased responsibility and authority.

TCMI will be held February 22 - March 3. TCMI is limited to 30 participants. Generally the class is composed of half industry and half VDOT professionals. Space is limited and available on a first-come first-served basis. The registration deadline is February 15, 2017. Early registration is recommended. Register at www.cpe.vt.edu/tcmi.

VTCA member employees are eligible for a TCMI scholarship! An exclusive benefit of being a member of the largest transportation construction and engineering organization dedicated to the advancement of the industry is a $500 tuition rebate. For details please contact VTCA’s Tom Witt.

VDOT Releases Final Version Of DB Rideability SpecificationThe Department has been expanding its use of rideability specifications on contracts but did not have language that fit the unique pricing structure found on Design-Build contracts. The new Design-Build readability language is based on the Design-Bid-Build specification currently in use, however the Design-Build language pay adjustment is based on square yard (SY) instead of ton. The new special provision has absolute pay adjustment based on SY which is independent of any unit price (ton or SY) or lift thickness.

The final language is available at www.vtca.org/images/uploads/DB_Rideabillity_Special_Provision_111616.pdf.

District Dialogues offer a unique opportunity to meet with senior VDOT professionals and hear about their business plans and issues that affect you as you do business in the Districts. In particular, the Northern Virginia District has a very robust transportation construction program enhanced by regional funding streams. In fact, over the next 18 months, the NOVA District’s construction program will exceed $3 billion.

Don’t miss out – sign up today! Details at bit.ly/NOVADistrictDialogue.

Northern Virginia District Dialogue On December 8 – Still Time To Register!

PAGE 7

MEMBER NEWS

Wagman Heavy Civil was recognized for its outstanding safety programs at the 2016 American Road & Transportation Builders Association National Convention. ARTBA’s annual Contractor Safety Awards were developed to promote worker safety and health as core values of the transportation design and construction industry. Wagman demonstrated a low “OSHA Recordable Rate” as measured against benchmark metrics established by the Bureau of Labor Statistics.

Wagman’s submission focused on efforts to implement an innovative program that reflects the company’s commitment to safety as a core value. Wagman’s safety model engages every employee at some level to increase awareness of safety throughout the organization. Company President Mike Glezer said “We are continually implementing best-in-class programs to improve our safety program at Wagman. This award recognizes the commitment from everyone at Wagman who has embraced safety as our part of our culture – our leadership, management, supervision and our workforce who live out our safety program every day.”

Roanoke Cement Company’s Richmond site has reached a safety milestone with admission into OSHA’s Safety and Health Achievement Recognition Program known as “SHARP.” The program recognizes small business employers who have succeeded with operating exemplary injury and illness prevention through OSHA’s “On-site Consultation Program.” The Program helps employers highlight potential hazards at their workplace, improve safety programs that are already in place, and offers the opportunity of a one-year exemption from routine OSHA inspections.

Acceptance into SHARP is a remarkable achievement that singles out individual sites as a model for worksite safety and health. Only 19 work sites in the Commonwealth have been accepted into SHARP, which is administered by the Virginia Department of Labor (VDOL).

“We are proud that of the 19 work sites, three are Roanoke Cement terminals including Front Royal, Norfolk, and Richmond,” said David Brinkley, Director of Distribution for Roanoke Cement. “The SHARP journey has taken several years -- working with consultants and the Department of Labor-- to create this level of safety at our sites. It is truly a cooperative relationship, as envisioned by the Governor, and one that we appreciate.” Delegate Betsy B. Carr and VDOL Director Warren Rice both made presentations to the Roanoke Cement employees and customers that were on-hand at the official event held in late October.

Vulcan Materials Company is pleased to welcome Glenn Cobb as Manager of Government Affairs and Community Relations for the Northern Region of the Mideast Division. Glenn will have responsibility for overseeing day-to-day governmental and community relations programs in the Northern Region. He will be based in the Herndon, Virginia office. Glenn has extensive experience in developing legislative strategies, working as a liaison with legislators, and serving as a spokesperson before planning commissions and other policy making bodies. Most recently he was the Vice President of Business Operations with the largest independent real estate firm in central North Carolina with responsibilities for marketing, advertising, growth and market development. He is a graduate of UNC Chapel Hill with a Bachelor’s Degree in Public Policy Analysis. He is also a graduate of the NC Institute of Political Leadership.

Mike Glezer, President of Wagman Heavy Civil, accepts the Contractor Safety Award from Granite Construction’s Bob Johnson.

Health Care CornerThe U.S. Department of Health and Human Services is predicting that “Obamacare” health insurance premiums in the individual health benefit exchanges will be increasing on an average of 25% in 2017. This is prior to the offset of government subsidies. Increases will vary greatly between states. Many insurance carriers are pulling out of the health benefit exchanges which is limited choice for many consumers. AP Group specializes in working with consumers in the private market. Contact us to discuss your options.

W. Montgomery Dise, President14021 Charter Park Drive Midlothian, VA 23114804-423-7700 ext. 309 (office)804-423-7701 (fax)www.apgroupinc.com

INDUSTRY NEWS

PAGE 8

A monthly publication of the Virginia Transportation Construction Alliance

Jeffrey C. Southard, Esq.Executive Vice President

Dara Jan Morehead, CAEDirector of Administration and Membership Services (Editor)

Thomas M. WittEngineer Director

Samuel L. HollinsAggregates Program Manager

Lisha G. ReynoldsProfessional Development Manager

Dana C. MorrisCommunications Technology Manager

Stephanie L. Rusnak Administrative Operations Manager

Sandy E. FarmerAccountant

The VTCA office will be closed December 23 & 26. We hope everyone has a safe and happy holiday!

VTCA Office Closed

On November 18 Charles Ryan Associates (CRA) honored VTCA’s Jeff Southard by presenting him with the “Charlie Award.” Named after company founder Charles “Charlie” Ryan, the award recognizes outstanding professionals who demonstrate a strong dedication and commitment for excellence in the field of communications. Jeff was chosen for his dedication to Virginians for Better Transportation (VBT), telling the story of the successes of HB 2313 across the Commonwealth and continuing to advocate for even more transportation dollars. On hand to witness the surprise presentation were 22 VTCA members who were in the VTCA office for a luncheon with Virginia gubernatorial hopeful Ed Gillespie.

In making the presentation, CRA Chief Strategy Officer Matt Isner said, “More than a decade ago we partnered with VTCA to create VBT to educate about and advocate for increased transportation funding. We were truly facing a transportation funding crisis and we had to make others outside of the industry care. We worked with Jeff over the next 10 years to make transportation matter – to the public, to business leaders and to lawmakers. Not an easy task.”

“Each year Jeff always kept his eyes on the end result – we had to have new, long-term, transportation funding. Year after year we would gain momentum. Bills would be introduced, not passed…And year after year Jeff would continue fighting. And, we all know what happened… In 2013, new, significant transportation funding passed and Jeff stood at the Capitol telling the many that gathered how we had just made history. He was a huge part of that.”

Jeff Southard Honored With The “Charlie Award”

Jeff Southard Receives the Charlie Award from Charles

Ryan Associates