OCTOBER 2013 | ISSUE 10/VOLUME 219W W W . U N I T E D C O N T R A C T O R S . O R G

Playing to WinUCON Strategy forSuccess in Politics

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San Luis Obispo, CA

805.543.0113

Turlock, CA209.632.5084

UNITEDCONTRACTORS

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United Contractors Magazine (ISSN: 2166-3777) is published monthly, except December, by United Contractors, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Correspondence should be directed to the United Contractors office at the above address, by phone at (925) 855-7900, by e-mail at info@unitedcontractors.org or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offices. Postmaster: Send address changes to: United Contractors Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2013 Published in the U.S.A.

2013 UNITED CONTRACTORS BOARD OFFICERS

President ..............................................Michael Ghilotti

Vice President/President-Elect ...............Kevin Albanese

Secretary/Treasurer ...............................Kevin Albanese

Secretary/Treasurer-Elect......................Bruce Daseking

contentsUNITED CONTRACTORS BOARD OF DIRECTORSKevin Albanese, Joseph J. Albanese, Inc.; Jim Alvey, Appian Engineering, Inc.; Jerry Condon, Condon-Johnson & Associates, Inc.; Bruce Daseking, McGuire and Hester; Brian Gates, Top Grade Construction, A Goodfellow Bros. Company; Rich Gates, DeSilva Gates Construction; Michael Ghilotti, Ghilotti Bros., Inc.; Brett Kincaid, O’Grady Paving, Inc.; Bret Lawrence, Woodruff-Sawyer & Co.; Rob Layne, O.C. Jones & Sons, Inc.; Jeff Prevost, Lockton Companies, LLC; Robert Purdy, RGW Construction, Inc.; Bob Rahebi, Redgwick Construction Company; Donna Rehrmann, Stomper Company, Inc.

UNITED CONTRACTORS COMMITTEE CHAIRSAssociates: Bret Lawrence (Associate Director), Woodruff-Sawyer & Co.; Jeff Prevost (Associate Director-Elect), Lockton Companies, LLC | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Rick Seifert (Chairman), Preston Pipelines, Inc. | Scholarship: Janice Lajoie (Chair), GE Capital

UNITED CONTRACTORS STAFFMark Breslin, Chief Executive Officer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor Contracts Manager; Lucia Sbarro, Labor Relations & Member Services Assistant; Steve Geney, Labor Negotiations Consultant; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Kristina Knecht, Administrative Assistant; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Online Services Manager; Joan O’Brien, Education Manager; Jenn Rogers, Senior Manager of Events; Marlo Fregulia, Event Assistant; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Mallori Spilker, Regulatory Affairs Manager; Kevin Pedrotti, Legislative Advocate; Tony Dorsa, CARB Consultant

O C T O B E R 2 0 1 3 5

More Inside:

www.unitedcontractors.org

6

28 RED TAPE30 WE ARE UNITED CONTRACTORS32 SAFETY CORNER36 LAST CALL

UP Front You Follow All That?By Rob Layne, O.C. Jones & Sons, Inc.UCON Government Relations Auction Chairman,UCON Past President 2011, 2012

LABORACA (Obamacare) Update: UCONProvides Industry GuidanceBy Ruby Varnadore, Labor Contracts Manager

INSIDE the CapitolPaving a Road Toward Reliable Highway FundingBy Congressman John Garamendi

Preserving the Quality of Construction: SB7By Senator Anthony Cannella

OCTOBER 2013ISSUE 10, VOLUME 219

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• Restoring Funding • Infrastructure Challenges & Opportunities• UCON’sPoliticalCalendar

25th Annual Government Relations Auction & Dinner—Auction Item Preview

OCTOBER 2013 | ISSUE 10/VOLUME 219W W W . U N I T E D C O N T R A C T O R S . O R G

Playing to WinUCON Strategy forSuccess in Politics

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Politics vs. Ted Nugent?Yes, it is true. I’m one of those people that actually enjoys political talk shows. The headphones when I’m running, the truck radio, even the TV in the evening are all tuned in to some political discussion. It’s my own form of reality entertainment, I guess. I have a few friends who ask me how I can listen to that stuff all of the time, and I admit that every so often I do hit overload on all the political pitches. At those moments, I calmly reach out and flip the dial over to Ted Nugent, crank the speakers up to 11 and relax for a bit. Thus refreshed, I switch back to the topics of the day. So what’s the point of this? It’s twofold. First, we’re not all interested in the same things, and second, we all need to sit back and refocus once in a while.

Every issue of this magazine has some discussion concerning how United Contractors is participating in the political arena.

You might not be personally interested in the “inside baseball” discussions of our government agencies, and that’s okay—we’ve got people who actually enjoy that stuff. But “not your interest” does not equal “not your concern.” Outside of yourself, there is no greater influence on the success and prosperity of your business than your government. You following?

You might be one of those people who don’t care for special interest groups, and all of this talk of lobbying and government relations makes United Contractors seem like another special interest group. Well, in the words of my favorite diplomat, Dennis Rodman, “Guess what? We are.”

It just so happens that our “special interest,” the construction industry, is one of the main drivers of our economy. Furthermore, construction and maintenance of our infrastructure is one of the critical services our government actually should be funding. Cleaner environments and faster, safer transportation seems like a much wiser investment of your tax dollars than studying the mating habits of fruit flies. But if our industry isn’t there to remind our legislators where our money should be spent, it’s amazing where those dollars end up instead.

By Rob Layne,O.C. Jones & Sons, Inc.

UCON Government Relations Auction Chairman,UCON Past President 2011, 2012

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O C T O B E R 2 0 1 3 7

The hard work of refocusing our efforts in the Government Relations arena is beginning to pay dividends to United Contractors members. Those of you who attended the annual BBQ the last two years probably noticed the huge influx of politicians, from local boards to state offices, in attendance. They recognize the influence we are gaining, and they want to be a part of it.

If you get a chance, take the time to check out the calendar of events our Government Relations Committees have put together for this past year (page 22). It’s incredible when compared to what we were doing 10 years ago. We are now at the point where UCON is being sought out for our opinion and input in the political arena. Legislators are coming to us for support on their bills. Agencies are inviting us to sit

Outside of yourself, there is no greater influence on thesuccess and prosperity ofyour business than yourgovernment. You following?

down with them and discuss their own operations. Just recently, the Legislative Analyst’s Office asked us to participate in their review of Caltrans for areas of improvement.

This is the direction we want to be headed. It’s taken effort and commitment to get here, and it’s going to take even more going forward in

today’s budget environment. So even if you’re not interested in following the day-to-day legislative arena, remember that it’s important for your bottom line that you show you care.

Our Government Relations Auction, the biggest fundraiser we put on each year to support our efforts in this area, is November 2 (see page 24). Money talks, people. Your support of this event is one of the better investments you can make for the future of our industry. Attend. Sponsor. Donate. u

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8 W W W. U N I T E D C O N T R A C T O R S . O R G

ACA (Obamacare) Update:UCON Provides Industry Guidance

LABOROver 60 UCON members and others in the construction industry attended UCON’s Affordable Care Act seminar in San Ramon. The seminar featured presentations and Q & A from Associate member Filice Insurance’s Michelle Montoya, and J. Tim Biddle of Segal Co. (benefits advisor and actuary for many of the union Trust Funds). A massive amount of information was distilled down into three hours, and attendees were given packets to help them begin moving forward with ACA compliance efforts.

The union construction industry is in a unique situation within the framework of ACA compliance. Multiemployer health plans were not adequately taken into account during the creation of the ACA regulations,

so now the various government agencies are having to play catch-up in determining how certain regulations are going to

apply to employers and employees covered by multi-employer plans. Many of the rules are still up in the air, and there are currently interim exemptions in place for multiemployer plan employers for some rules such as the W-2 reporting of healthcare costs for union employees. On a national level, legal representatives and advisors for the various trust funds are lobbying for permanent exemptions for multiemployer plans for some rules. In the meantime, all of the Trust Funds for UCON’s signatory unions have been working diligently to make any necessary changes to their plans and provide required information to the plan participants, as well as assisting signatory employers with the information that they need.

UCON is continuing to be on the forefront of providing guidance for our members. Following the seminar, bulletins were sent out to contractor members and seminar attendees with additional information. Helpful documents and links have been posted on our ACA web page (www.unitedcontractors.org/aca), which we will continue to update and to make available to both members and non-members. u

Notices of Coverage Options

October 1, 2013 was the deadline for employers to send notices of health insurance coverage options to their existing employees. These notices must also be given to new hires at the time of hire from October 1 onward—for 2014, notices given to new hires within the first 14 days of employment will meet the “time of hire” definition. If you haven’t already, visit UCON’sACAwebpageforsamplenotices and cover letters.

60+ UCON members, and other construction industry associates attended our Affordable Care Act seminar.

(As of publication printing)

By Ruby Varnadore,Labor Contracts Manager

O C T O B E R 2 0 1 3 9

(As of publication printing)

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10 W W W. U N I T E D C O N T R A C T O R S . O R G

Paving a Road Toward Reliable Highway Funding

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By Congressman John Garamendi,(R) 3rd District

In January 2012 and again in April 2013, the non-partisan Congressional Budget Office (CBO) issued a dire warning: without strong action from our nation’s leaders, the Federal Highway Trust Fund will dry up by fall 2014. By 2015, CBO notes, we’d have to cut transportation funding by 92 percent or increase the gas tax by 50 percent, and both would be short term fixes anyway.

Time is running out on the Federal Highway Trust FundThe Trust Fund—the principal financer of our highways and transit systems—is in serious trouble, because it’s funded by the gas tax, and Americans are driving less and using more fuel efficient cars when they do drive. To that extent, it’s a victim of good public policy promoting more livable communities and combating climate change and air pollution. Years of austerity budgets haven’t helped either. Regardless, without a new approach to funding the Federal Highway Trust Fund, America’s already underfunded transportation infrastructure is about to face a crisis. The millions of Americans who rely on our interstate highways and public transit systems on a daily basis need a safe and reliable transportation infrastructure. The clock is ticking.

Decrease or Devolve?Some of my colleagues think the solution to this crisis is to expand deepwater drilling in the Gulf of Mexico and elsewhere and shift the federal royalties to the highway trust fund. Beyond the environmental and political problems of diverting funding from other long-established programs, this proposal will not even begin to fill the massive hole in the Highway Trust Fund.Other conservative Members of Congress argue that the federal government should retreat from transportation investments. Make it a state problem or let the private sector figure it out, they argue. I have a fundamentally different view of American history and America’s transportation needs. For four decades as a California

legislator, Deputy Secretary of the U.S. Department of the Interior, and Lieutenant Governor, I have fought for government support of infrastructure projects, because this is the foundation upon which the economy is built. On the need to reinvest in our nation’s infrastructure, I stand firmly with President Dwight D. Eisenhower, who created the Interstate Highway System, and President Ronald Reagan, who famously said, “The bridges and highways we fail to repair today will have to be rebuilt tomorrow at many times the cost.”

Raising the Federal Gas Tax?Some of my Democratic colleagues have called on Congress to raise the federal gas tax, perhaps by 10

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Without a new approach to funding the Federal Highway Trust Fund, America’s already underfunded transportation infrastructure is about to face a crisis. The millions of Americans who rely on our interstate highways and public transit systems on a daily basis need a safe and reliable transportation infrastructure. The clock is ticking.

O C T O B E R 2 0 1 3 11

cents a gallon (it’s currently at 18.4 cents a gallon). I understand this approach. After all, the gas tax hasn’t been increased in 20 years, but the cost of highway construction certainly has. If the gas tax were adjusted for inflation, CBO estimates it would be at 29 cents a gallon today, but based on current and projected driving patterns, that level of revenue would be insufficient to meet the critical transportation needs of America.

Beyond the serious challenge of securing the votes for an increase in the excise fuel tax, the reality is that funding would be based on a declining tax revenue base as America continues to improve gas mileage and transitions to hybrid, plug-in hybrid, electric, and advanced diesel vehicles. Reliance on an increase in the excise fuel tax will just put us back in the same predicament within a few years.

Kicking the Can Down the Road?Members from both parties have also suggested kicking the can down the road with a one-year extension of the Surface Transportation Assistance Act. We may wind up with this bare bones approach, and I may even wind

up voting for it, but the CBO estimates the uncertainty caused by this stop-gap would waste $14 billion dollars. That’s a princely sum to cover Congress’ failings, and it will only serve to put us in a worse position a year from now. Complex infrastructure requires multi-year coordination and predictable funding, not lawmakers careening from one fiscal showdown to the next.

VMT Tax?Others in Congress have suggested a transition to a “vehicle miles traveled” (VMT) tax. Under this system, instead of paying the tax at the pump, we’d pay the tax based on a small fee per miles traveled. There’s logic to this approach. After all, electric cars and hybrids add wear and tear on the roads too, and their owners should contribute to road maintenance. And this funding source is intuitively fair, charging Americans based on their usage of public roads and not the fuel consumed. Realistically though, it’s difficult to see this Congress voting for a significantly new approach to revenue collection.

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Continued on next page

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12 W W W. U N I T E D C O N T R A C T O R S . O R G

Reliable Highway Funding (cont.)

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Viable Options for Long Term InvestmentThe task before Congress is to find lasting revenue for our transportation infrastructure through a mechanism that can actually pass Congress. That’s why I’ve called on my colleagues to take a serious look at Build America Bonds, a National Infrastructure Bank, and Tax Increment Financing.

Build America Bonds were a key feature of the American Recovery and Reinvestment Act in 2009, with $181 billion worth of bonds distributed during the life of the program. Unfortunately, Congress let the Build America Bonds program expire in 2010. That was a terrible mistake. The bonds enabled state and local governments to secure funding they needed for local infrastructure investments at a fraction of the borrowing cost. The bonds also helped ensure local support and accountability for the project. As we look for ways to grow the Highway Trust Fund, Build America Bonds should be part of the solution.

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The 2013 Dr. J. Don Brock TransOvation™ WorkshopWhere Technology Meets the Road

October 28-30 | San Jose Tech Museum of Innovation

Driverless cars are coming. What could it mean for our roads and bridges?

Key speakers

Google’s driverless car and other emerging technologies will no doubt transform transportation in America. Join an exclusive group of private sector executives and public agency officials as they discuss and begin preparing for how these inevitable advancements in technology will influence the design, construction and maintenance of transportation infrastructure at the third annual “Dr. J. Don Brock TransOvation™ Workshop.” Attendees will work collaboratively in small groups to create an industry blueprint on how to meet the challenges posed by autonomous cars and other game-changing technologies.

Space is limited. Register: www.transovation.org

Bryant Walker Smith, Stanford Center for Automotive Research

Phaedra Boinodiris, IBM

Mitch Bainwol, Alliance of Automobile Manufacturers

Ross Smith, Microsoft

O C T O B E R 2 0 1 3 13

President Obama first called for a National Infrastructure Bank in 2008 and again as part of his American Jobs Act in 2010. Sadly, Congress refused to vote on his plan, and thousands of jobs and billions of dollars of infrastructure projects were lost in the process.

We should revisit the Infrastructure Bank, which has attracted bipartisan support in House and Senate legislation, but has not been advanced in either chamber. The Infrastructure Bank would leverage public and private capital to issue loans to municipalities for surface transportation infrastructure. After an initial investment from the government, the Bank would be self-sustaining, recouping interest and loan payments from borrowers. The Bank would be attractive to state and local governments, because the interest rate would still be far more generous than a loan from a commercial bank.

Tax Increment Financing (TIF) is another tool we should consider. With TIF, regions deemed “blighted” can be identified as a zone worthy of subsidized infrastructure investment. Over a fixed number of years after construction, the projects would be largely paid for by collecting tax revenue on the developed property. While TIF zones are more limited in scope than an infrastructure bank, they can and should be part of a broader strategy to bolster the Highway Transit Fund.

As we face an impending transportation funding crisis that everyone agrees is coming, let’s keep an open mind as we work through the options.

Build America Bonds, a National Infrastructure Bank, and TIF

zones might be our only foreseeable options to preserve and build the infrastructure America will need to pave a road to a more prosperous tomorrow. u

Congressman John Garamendi represents California’s Third Congressional District and serves on the House Transportation and Infrastructure Committee. Like most Americans, he relies on safe and well-maintained roads to do his job.

Check our our Last Call, and its game board approach to highway transportation investment options (page 36), courtesy of the Automobile Club of Southern California. Contact UCON’s Government Relations Director, Emily Cohen for more information, or visit www.unitedcontractors.org.

14 W W W. U N I T E D C O N T R A C T O R S . O R G

Preserving the Quality of ConstructionSB7 Ensures Higher Quality on Public Works Projects

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By Senator Anthony Cannella,(R) 12th District

This year, I am honored to co-author Senate Bill 7 with Senator Darrell Steinberg, to ensure we receive the highest quality and efficiency on public works construction projects and to attract the highest skilled workforce.

Most governmental entities in California already know the value of paying prevailing wage and already pay it, including the state, counties, school districts, general law cities and most charter cities.

Some charter cities use a loophole in current law to pay less than prevailing wage by exempting themselves from the state’s prevailing wage law. This bill simply states

that as a condition of accepting state funding for public works projects, charter cities must agree to pay the workers the prevailing wage on all of their public works projects.

As a civil engineer and a former mayor, I know first-hand the value of paying prevailing wage. Prevailing wage attracts the most efficient, highly skilled, best-trained streamlined workforce, providing the best value on construction projects. It provides apprenticeships to train the next generation of skilled craft workers. There is no question that prevailing wage provides the greatest long-term value. Good wages ripple through the economy of the entire region, benefitting local businesses, and strengthening the local tax base. Everyone benefits.

The problem is that some contractors try to win low bids by cutting corners by short-changing workers through lower salaries, which they can only do in charter cities. By paying those lower wages, those charter cities undermine the quality of a construction project and the economy of an entire region. Lower wages attract a less-skilled, less efficient, less productive and less streamlined workforce. Furthermore, those low wage workers are more likely to become a costly burden on the public safety net. The taxpayers ultimately get less value for their construction dollar because of much lower productivity from those workers.

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O C T O B E R 2 0 1 3 15

For example, a 2011 study conducted by Colorado State University, Pueblo senior economist Kevin Duncan compared similar public library projects built in two cities: Gilroy, with prevailing wage, and Palo Alto, without it. The Palo Alto library, built without prevailing wage, came in at $430 per square foot. But the Gilroy project, which paid prevailing wage, spent only $326 per square foot, a savings of 25 percent that resulted from the far superior productivity of the workers paid

these wages. They know that their jobs are dependent on the success of the company they work for.

I believe that the government should not suppress wages, and the loophole that charter cities currently take advantage of does just that. u

Senator Anthony Cannella represents our 12th District in the California State Senate. Find out more at www.district12.cssrc.us

prevailing wage. The same study also showed much greater benefits to the economy in Gilroy, where 71 percent of the project value went to local contractors, compared to only 12 percent in Palo Alto.

I can point to a dozen other studies that support these findings. Without question, prevailing wage brought the taxpayers the best value.

I care about receiving the maximum efficiency and productivity and value for every tax dollar we spend on public works construction in this state, in charter cities and everywhere else.

We must remember the history of the prevailing wage laws in the United States. The Davis-Bacon Act was named after named after its two Republican sponsors, Senator James J. Davis and Representative Robert L. Bacon. It was signed into law by President Herbert Hoover, also a Republican. California’s prevailing wage law was enacted more than 50 years ago, by Governor Goodwin Knight, yet another Republican. This June, conservative Republican Congressmen Paul Ryan and Peter King voted to uphold the federal act. (http://clerk.house.gov/evs/2013/roll191.xml) So there is strong support of prevailing wage laws on both sides of the aisle.

Those making prevailing wage are our middle class. They are the hard workers that America is built on. They’re not greedy—they’re not going to get rich on

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Don’t Look Down Restoring the funding needed to keep construction projects moving is our goal.

If you drive 20 miles in any direction today in California, you’ll likely find workers repairing or improving a road or highway.

That surge in construction over the past few years was caused by two things – the passage of Proposition 1B in 2006, which pumped $19 billion into construction projects large and small across the state, and an infusion of federal stimulus funds in 2009.

Unfortunately for heavy construction contractors, construction workers and California’s motorists, those funds are just about all spent. What’s coming next should concern everyone: California is going over a transportation “fiscal cliff” that’s going to cause projects – and jobs – to dry up in the next several years.

Two charts tell the tale.

The first shows how rapidly and steeply transportation spending will fall off during the next two years, from

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LEGISLATIVEADVOCACY

O C T O B E R 2 0 1 3 17

a peak of nearly $6 billion a year in 2011-12 to about $3 billion a year in 2014 and going forward.

The second is Caltrans’ one-year-out project list, compiled every six months to give contractors a look at projects in the pipeline. In the second half of 2010, there were nearly $4 billion in projects projected for the following year. Today, there are just over $1 billion in projects in the short-term pipeline.

UCON President Michael Ghilotti said contractors and labor have been very effective in the past decade in persuading elected officials and voters to fund long-overdue infrastructure rebuilding efforts. Yet unlike previous efforts when California enjoyed a strong economy and high levels of voter support for infrastructure spending, todays political environment is reversed, making the task of increasing funding levels more difficult than ever.

“Contractors and labor can be proud of our leadership role in passing Prop. 1B, which invested $20 billion in bonds on transportation infrastructure,” Ghilotti said. “Our industry has also lead the fight to pass other statewide measures that protected the gas tax from legislative raids, and this is a great legacy of success.”

This time, however, will be more challenging because voters are reluctant right now to increase the public works spending that maintains and upgrades our transportation system.

“The point I’m stressing to our members is that nobody’s going to solve this problem if we don’t. But if the industry

stands together, I’m confident we can get the job done.”

Ghilotti said the California Alliance for Jobs, a labor-management partnership on which he serves as co-chair, is working with employers, the basic craft unions and other industry partners in developing a political strategy to secure more transportation funding.

“There’s no ‘silver bullet’ to restore adequate funding to infrastructure projects, but there are a number of possible solutions that, if

taken together, could really help to keep projects in the pipeline,” he said.

Among them are:

• Cap and Trade, the state’s program to sell a limited number of credits of carbon dioxide emissions, will expand in 2015 to include automobile fuels, creating a potential new source of transportation funding. The industry is working hard to ensure that these new fuel revenues go towards transportation-related greenhouse gas-reducing projects. This could generate between $2-$4 billion a year.

• Increasing the Diesel Fuel Excise Tax, which would generate almost $250 million in additional annual revenue for the state highway account.

• Restoring Truck Weight Fees to fund transportation projects. These funds were diverted by the Legislature to help repay the Prop. 1B bonds but could generate about $900 million a year for transportation construction.

Longer-term, the industry is exploring other options, including reducing the threshold to pass sales tax increases from two-thirds to 55 percent; increasing the vehicle registration fee; and instituting Caltrans reforms to ensure more funding is spent on projects and less on overhead.

To keep up to date about the latest information about the fiscal cliff, visit www.rebuildca.org. u

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OurNation’sInfrastructure:Challenges and OpportunitiesUnited Contractors is a founding member of the Clean Water Construction Coalition—a national organization that has grown to 27 chapters in 22 states, employing 10,600 people, and committed to securing much-needed funding for the nation’s clean water and safe drinking water programs.

America’sInfrastructureNeedsVisualize a future of broken roads and bridges, failing sewer systems, malfunctioning power grids, condemned airports, and not enough money to fix them or to build new ones to serve an expanding population. What would that cost the United States in terms of lost jobs?

A study released in January 2013 by the American Society of Civil Engineers estimates that the United States needs to spend $2.75 trillion to maintain and improve its infrastructure by 2020—roughly 66 percent more than the currently expected funding over that same time period—or else the resulting job losses would total 3.5 million. Moreover, the study also projected that if current trends are not reversed, the cumulative cost to the U.S. economy from 2012 to 2020 will be more than $3.1 trillion in Gross Domestic Product (GDP), and $1.1 trillion in total trade. “The results show that deteriorating infrastructure, long known to be a public safety issue, has a cascading impact on the nation’s economy, negatively affecting business productivity, gross domestic product, employment, personal income and international competitiveness,” the accompanying report stated.

While the study projected the biggest funding gap, $877 billion, for highway and other surface

transportation projects needed by 2020, it also saw funding shortfalls for water and sewer infrastructure.

Clean water and safe drinking water go hand-in-hand with a healthy economy. The fact is that clean, healthy, affordable water is something every American should be able to rely on. However, the Nation’s pipes—some 72,000 miles of which are over 80 years old—are failing and need replacing; outdated sanitation facilities are inadequate to handle new standards; and sewers are overflowing, causing environmental damage and beach closings. Federal agencies, states, and local municipalities all acknowledge that spending on clean water has fallen far behind systems needs—the Environmental Protection Agency estimates the funding needs for total water infrastructure works at more than $202.5 billion over the next 20 years.

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By Bryan Esposito,Federal Advocates, Inc.

Clean Water Construction Coalition (CWCC)LEGISLATIVEADVOCACY

O C T O B E R 2 0 1 3 19

For every $1 billion spent on water infrastructure, approximately 47,000 jobs are created and up to $6 billion in additional GDP is realized. Beyond the jobs that could be created, other critical sectors of our economy rely on clean water, including the $45 billion commercial fishing industry, the soft drink manufacturers that generate $54 billion in sales, and the manufacturing sector that uses more than 13 trillion gallons of clean water each year.

appropriations levels. Included in the President’s FY13 Budget submission was $1.175B for the Clean Water SRF and $850M for the Safe Drinking Water SRF. The funding levels in the final agreed-upon Continuing Resolution represent the Senate’s commitment to both programs, and the Coalition’s efforts to advocate for the highest possible funding levels.

The current Congress is focusing on various answers to the problem; namely, the recently enacted FY13 appropriations; the proposed Water Infrastructure Finance and Innovation Authority; and the recently introduced “American Infrastructure Investment Fund Act of 2013.”

FY13 AppropriationsOn March 26, the President signed into law another continuing resolution (CR) to fund the Federal government from March 27 through the end of the fiscal year. For the Clean Water SRF and the Safe Drinking Water SRF, the CR funding levels are $1.452B and $908.7M respectively.

To review the original FY13 appropriations situation for clean water and safe drinking water, on July 10, 2012

the House Appropriations Committee reported the FY13 Interior Appropriations Bill. Included in the Bill was $689M for the Clean Water SRF and $829M for the Safe Drinking Water SRF. The amounts represented a significant reduction in the programs, bringing them back to the levels of the Bush Administration. On September 25, the Senate Appropriations Committee approved its version of the FY13 Interior Appropriations Bill. Included in it was $1.465B for the Clean Water SRF and $919M for the Safe Drinking Water SRF—both at the FY12

Continued on next page

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Water Infrastructure Finance and Innovation AuthorityOn March 20, the Senate Committee on Environment and Public Works reported S.601, its version of the reauthorization of the Water Resources Development Act. Of specific note is the Water Infrastructure Finance and Innovation Authority (WIFIA) title of the bill. That title provides loans and loan guarantees to various eligible entities to carry out specified eligible projects including clean water and safe drinking water projects. The bill authorizes $50M for each of FY14-18. However, since it is a loan program, the $50M would support funding $500M in projects each year for a total of $2.5B over the life of the bill. This estimate is based on a similar highway program after which this is modeled where for every $1 (one dollar) appropriated to the program $10 can be lent out. The loan approach supports significant leveraging of appropriated dollars.

WIFIA is seen as a supplement to support the traditional annual general fund appropriations for the Clean Water and Safe Drinking Water SRF’s. The Coalition has been advocating in support of a WIFIA program since it first surfaced as a possibility last Congress.

American Infrastructure Investment Fund Act of 2013On February 26, Chairman John D. (Jay) Rockefeller IV (D-WV) and Senator Frank R. Lautenberg (D-NJ), Chairman of the Surface Transportation and Merchant Marine Infrastructure, Safety, and Security Subcommittee, introduced legislation that would leverage federal investment to rebuild and expand transportation infrastructure and create American jobs. S. 387, The “American Infrastructure Investment Fund Act of 2013,” would establish a $5B fund that would incentivize private, State, and regional investments in transportation projects around the country by providing eligible products with financial assistance. Specifically the bill would:

• Establish within the Department of Transportation (DOT) a Fund designed to leverage federal dollars to incentivize private investment in transportation projects that maintain American economic

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LEGISLATIVEADVOCACY

Infrastructure Challenges and Opportunities (cont.)

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O C T O B E R 2 0 1 3 21

competitiveness, which would be authorized at $5 billion for fiscal years 2014 and 2015;

• Use a variety of tools, such as loans and loan guarantees, to provide financial assistance to eligible projects that would be evaluated in an objective and transparent manner to encourage private, State, regional, and local entities to make capital investments into these critical projects;

• Define eligible types of projects including rail lines, marine ports, pipelines, airports, highways, bridges,

Through the work of United Contractors and the Clean Water Construction Coalition, we can continue to preserve and protect the vital infrastructure needs of our country and help ensure that our industry continues to have the opportunities to keep American strong. u

For more information on the Clean Water Construction Coalition, visit www.cleanwaterconstructioncoalition.org, or contactUCON’s Director of Government Relations, Emily Cohen atecohen@unitedcontractors.org.public transportation systems,

and other transportation-related projects. The Fund would be designed to allow it to broaden its investment portfolio in the future into other infrastructure projects, including telecommunications, energy, and water projects; and,

• Authorize a multimodal National Infrastructure Investment Grant program within DOT at $600 million for fiscal years 2014 and 2015, which would provide funds to build new or improve existing transportation infrastructure.

Conclusion“Public and private investment and new, innovative strategies are needed to repair, rebuild and revitalize the nation’s transportation system,” Janet Kavinoky, Executive Director of Transportation and Infrastructure for the U.S. Chamber of Commerce, said in a statement accompanying the American Society of Civil Engineers’ report.

The problems facing the nation’s infrastructure are evident. But so, too, are the solutions. With continued advocacy, we can ensure that the federal government does its part to provide much needed funding for important infrastructure projects; thereby supplying critical jobs for workers, enhancing the economy, and ensuring that America’s expanding population is serviced for the years to come.

Infrastructure Challenges and Opportunities (cont.)

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The UCON Delegation met with the following members of Congress on critical industry issues in the first week in June at the Washington D.C. Federal Fly-In:

Congressman Jeff Denham - R (CA-10)Congressman Mike Thompson - D (CA-5)Congressman Mark Takano - D (CA-41)Congressman John Garamendi - D (CA-3)Congressman Paul Cook - R (CA-8)Congressman Doug LaMalfa - R (CA-1)

,

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LEGISLATIVEADVOCACY UCON’s2013

Political Calendar“Your Seat at the Table”

May: Dinner Fundraiser for Assemblyman Jim Frazier (AD-11)

August:District Meeting with Congressman Eric Swalwell (CA-15)

August: Assemblyman Ken Cooley (AD-08)

August:Assemblyman Raul Bocanegra (AD-39)

August: Assemblyman Anthony Rendon (AD-63)

August: Senator Anthony Cannella (SD-12)

August: Senator Jim Nielsen (SD-4)

August: Senator Rod Wright (SD-35)

August: Senator Ted Lieu (SD-28),

September: District Lunch with Assemblyman Kevin Mullin (AD-22)

September: Senator Jerry Hill (SD-13)

September: District Dinner with Assemblywoman Susan Bonilla (AD-14)

October 17th: Annual New Democrats Golf Tournament

September: District Dinner with Assemblyman Rob Bonta (AD-18)

September: District Lunch with Assemblyman Rich Gordon (AD-24) Upcoming:

You’ve heard us say it before—“In politics, if you don’t have a seat at the table, you’re lunch.” UCON’s Government Relations team works aggressively to make sure that our key policy makers understand the importance of our industry, and are willing to listen, learn from, and offer support through legislation and key policy decisions. If you are interested in joining us for a political meeting, or in meeting with your own member of Congress, State Assembly or Senator, let us know!

,

Committee Spotlight: UCON Legislative Committee

The newly created UCON Legislative Committee exists to provide value to our members through involving the membership in legislative action and determining, analyzing, and carrying legislation. The group also participates in the legislative process to promote and protect member interests, and new opportunities for infrastructure investment. This committee promotes relationship building with legislators and works to implement construction related policy changes to create an optimal bidding environment. Meetings are quarterly, two of which are via conference call, or as determined by the committee.

This year the Legislative Committee members have provided crucial feedback on various pieces of legislation ranging from that which protects prevailing wages in charter cities, to legislation related to payments on public works projects, legislation regarding damage prevention laws, policy’s pertaining to certified payroll, contractor certifications and more! If you are interested in joining the UCON Legislative Committee, contact Emily Cohen, Director of Government Relations, (925) 362-7304, ecohen@unitedcontractors.org.

2013 Legislative Committee Members:Gary Andrews, Amos & Andrews, Inc. Kim Carone, McGuire and Hester Robert Chrisp, Chrisp CompanyJake Concannon, Arthur J. Gallagher Insurance Brokers of California, Inc./Gallagher Construction ServicesCatherine Delorey, Oles Morrison Rinker & Baker LLPDebbie Ferrari, MAG TruckingSean Fillippini, Downey Brand Law FirmRobert Fried, Atkinson, Andelson, Loya, Ruud & RomoRick Guzman, Rosendin Electric, Inc. Rob Layne, O.C. Jones & Sons, Inc.Craig McCullum, Arthur J. Gallagher Insurance Brokers of California, Inc./Gallagher Construction Services Joe McGowan, Rogers Joseph O’Donnell Bob Rosin, Leonidou & Rosin Professional CorporationJoanne Schultz, Brutoco Engineering & Construction, Inc.Kim Scruggs, Columbia Electric, Inc.Hal Stober, Gordon N. Ball, Inc.Chris Young, D.W. Young Construction Co., Inc.Kevin Pedrotti, UCON Legislative AdvocateEmily Cohen, UCON Staff LiaisonMallori Spilker, UCON Staff Liaison

O C T O B E R 2 0 1 3 23

September: District Lunch with Assemblyman Kevin Mullin (AD-22)

September: Senator Jerry Hill (SD-13)

September: District Dinner with Assemblywoman Susan Bonilla (AD-14)

October 17th: Annual New Democrats Golf Tournament

September: District Dinner with Assemblyman Rob Bonta (AD-18)

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24 W W W. U N I T E D C O N T R A C T O R S . O R G

AUCTIONP R E V I E W

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Join us as we celebrate 25 years of the Government Relations Dinner & Auction supporting United Contractors Government Relations efforts to increase public works funding for contractors, protect industry interests inside the Capitol, defend industry against burdensome regulations, and improve California’s business climate.

Luau25th Annual Government Relations Dinner & AuctionSaturday, November 2, 2013, 5:00pm - 11:00pmCraneway Pavilion, Richmond Marina District $130 member / $160 non-member

Auction Sub-CommitteeThank you to our auction sub-committee who give their time and dedication to reach out to members and industry affiliates to support UCON government advocacy.

Rob Layne, O.C. Jones & Sons, Inc. – Auction ChairmanBruce Daseking, McGuire and Hester – Auction Co-chairAndrew Vasconi, A. J. Vasconi General EngineeringKevin Dern, Ghilotti Bros., Inc.Debbie Ferrari, MAG TruckingCatherine Delorey, Oles Morrison Rinker & Baker LLPChris Thorsen, Ritchie Bros. Auctioneers (America) Inc.Roger Mason, Sweeney, Mason, Wilson & BosomworthRob Pitts, TBC SafetyTrony Fuller, West Coast Aggregates, Inc.Bret Lawrence, Woodruff-Sawyer & Co.

Special Thank You – To Ritchie Bros. Auctioneers (America) Inc. for donating their auctioneer services for our event!

Your Participation Is CrucialThe funds raised at this event go towards our aggressive government advocacy efforts—which our members and our industry need now, more than ever. Public funds on the state and federal level have been the contractors’ lifeline—and will continue to be so in the foreseeable future. As such, we must maintain our presence, our voice and our agenda in Sacramento and DC.

“Money talks, people. Your support of this event is one of the better investments you can make for the future of our industry. Attend. Sponsor. Donate,” says Rob Layne, of O.C. Jones & Sons, Inc. and UCON’s 2013 Auction Chairman. Read more of what Rob has to say in his Up Front, page 6.

How can you participate?• Sponsor—Be a key sponsor of the event and get

premiere marketing for your business!• Donate—Donate an auction item or money in any

amount to help us with the event! We are accepting LIVE and SILENT auction items this year.

• Attend—And invite other UCON members and industry affiliates to attend and support our industry!

O C T O B E R 2 0 1 3 25

Auction Sponsors(as of magazine print time)

P C & N Construction, Inc.Woodruff-Sawyer & Co.

Platinum Sponsors Gold Sponsors

Silver Sponsors

Dinner Wine Sponsors Bar Sponsor

Bronze SponsorsLaborers Local No. 304Pacific Boring, Inc.Stevens Creek Quarry, Inc.

Friends of United Contractors

(Sponsors as of publication printing date)

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AUCTIONP R E V I E W

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Member Donations:Auction Item PreviewHere is a preview of what you will be seeing at this years’ Government Relations Dinner & Auction on November 2nd. Thank you to all our Auction Donors!

Hawaiian Vacation—Maui Trip for TwoDonated by: Brian Gates, Top Grade Construction, A Goodfellow Bros. Company

Caribbean Cruise PackageDonated by: Mike Ghilotti, Ghilotti Bros., Inc.

NorthStar at Tahoe—1 Week VacationDonated by: Bob Purdy, RGW Construction, Inc.

3 Nights at “Pacific View” Ocean Front Luxury Home in Fort Bragg, CADonated by: Rod Stevenson, Stevenson Supply

2 Round Trip Tickets to Mexico or HawaiiDonated by: Rod Stevenson, Stevenson Supply

Waterfront Sacramento River House—1 Week Vacation (4 bdr)Donated by: Donna & George Rehrmann, Stomper Company, Inc.

Sonoma Wine Country WeekendDonated by: Jennifer & Rob Pitts, TBC Safety

Carmel-by-the-Sea CottageDonated by: Richard & Beth DeAtley, West Coast Aggregates, Inc.

Safari Adventure on the Sonoma SerengetiDonated by: Robert Chrisp, Chrisp Company

Travel & Getaways:

O C T O B E R 2 0 1 3 27

2 Day Catalina Island Tour or Fishing Trip for FourDonated by: Mark Hazen, MCK Services, Inc.

Napa Valley Stand Up Paddle for Two with Oyster and Wine PairingDonated by: Bob Rahebi, Redgwick Construction Company

Striper Fishing Trip on the Sacramento RiverDonated by: Rod Stevenson, Stevenson Supply and Cal-Vista Erosion Control Products

Hot Air Ballooning over NapaDonated by: Roger Mason, Sweeney, Mason, Wilson & Bosomworth

San Jose Sharks Penthouse Suite (12)Donated by: Kevin Albanese, Joseph J. Albanese, Inc.

San Jose Sharks Center Ice Tickets (4) Donated by: Mike Carter, All American Rentals

Golden State Warriors Tickets (2)Donated by: Jerry Condon, Condon-Johnson & Associates, Inc.

Golden State Warriors Tickets (4)Donated by: Andre Simms, Lehigh Hanson Round of Golf at Sequoyah Country ClubDonated by: Mike Carter, All American Rentals

Black Female Labrador PuppyDonated by: Bruce Daseking, McGuire and Hester

Family Portrait Photo SessionDonated by: Cathy Breslow, Breslow Imaging

RADIO FLYER® Town & Country Little Red WagonDonated by: Friends of UCON

SCHWINN® Double Trailblazer Trailer (bicycle attachment)Donated by: Friends of UCON

Experience:

Sports:

Something Different:

Kids Items:

Technology:Canon Power Shot Digital Camera

Panasonic HD Video Camera

Logitech Headphones - UE 6000

Ultimate Ears Wireless Speaker

Timbuk2 Messenger Bag(All of the above) Donated by: Michael Kelly, West Valley Construction Co., Inc.

Thank you to our current donors! See the complete list of items/donors at www.unitedcontractors.org/donations Do you have a vacation house, sports tickets, or need ideas on what to donate? Contact: Jenn Rogers,

Senior Manager of Events, (925) 362-76309 or jrogers@unitedcontractors.org

28 W W W. U N I T E D C O N T R A C T O R S . O R G

By Tony Dorsa,UCON CARB Consultant

On Friday, September 13, 2013 (Friday the 13th, oddly enough!) California Air Resources Board (CARB) issued an advisory, indicating the U.S. EPA has granted CARB authorization to enforce all provisions of the In-Use Off-Road Diesel Regulation.

As stated in many of UCON’s previous member bulletins and magazine articles, until now, the only enforceable provisions of the Off-Road regulation have been reporting, labeling, idling limitations, and sale disclosures. This EPA authorization allows CARB to begin enforcing bans on adding Tier 0 and Tier 1 engines, as well as the emissions reduction provisions of the California Regulation.

R E DTAPE

CARB Alert:U.S. EPA Grants Waiver to California Air Resources Board

What You Need to Know Now:According to Regulatory Advisory #MSCD 13-25: CARB will phase in enforcement of various elements of the rule beginning January 1, 2014.

• Tier 0. Commencing January 1, 2014, NO fleet may add a vehicle with a Tier 0 engine to its fleet.

• Tier 1 for Large and Medium Fleets (over 2500 HP). Commencing January 1, 2014, a large or medium fleet may not add a vehicle with a Tier 1 engine to its fleet. The engine Tier must be Tier 2 or higher.

• Tier 1 for Small Fleets (up to 2500 HP). Commencing January 1, 2014, Small Fleets may add only Tier 1 engines which were registered with CARB and issued an Equipment Identification Number (EIN) prior to January 1, 2012, or if the engine entered California for the first time after January 1, 2012.

• Emissions Performance Requirements. Large Fleets will now have until July 1, 2014 to meet the performance requirements originally scheduled for January 1, 2014. Annually thereafter, performance

O C T O B E R 2 0 1 3 29

and compliance dates will revert to January 1. Medium Fleets compliance date is January 1, 2017 and Small Fleets January 1, 2019.

UCON’sEffortsUnited Contractors (UCON) is involved in litigation with EPA over whether the federal Clean Air Act allows such a rule to be promulgated, and will be working alongside our industry affiliates analyzing EPA’s waiver decision. UCON will keep our members apprised of any new developments, but please feel free to contact us if you have any questions. u

Direct Link to Regulatory Advisory #MSCD 13-25:http://www.arb.ca.gov/msprog/mailouts/msc1325/msc1325.pdf

For more information, contact Tony Dorsa, UCON CARB Consultant, (408) 649-4383 or consultingTD@aol.com, orMallori Spilker, UCON Regulatory Affairs Manager, at(925) 362-7318, mspilker@unitedcontractors.org.

AT YOUR SERVICECOMPLIANCE EDUCATION COMES TO YOU: ON SITE, CUSTOMIZED TRAINING

FOR YOUR BUSINESS

Having trouble training your employees to keep up with the ever-changing CARB regulations? CARB Consultant, Tony Dorsa, offers specialized training designed to meet your company’s specific needs regarding On-Road, Off-Road, Portable Power, Stationary Power, CARB, and Local Air District compliance.

Services Provided: • CometoYOURsiteandtrain1-3membersofstaffto become CARB Compliance Monitor• Ensurestaffmembersunderstandyourspecificfleet and budgeting needs• Assistanceindevelopingandimplementingfleet-specific Compliance Plans• TeachstafftorecognizeCARBissuesandhandlebasicCARB and Local Air District record-keeping and reporting tasks• Half-day($750.00)andfull-day($1500.00)sessionsavailable

United Contractors members receive a 10% discount!

CONTACT Tony DorsaTD Consulting Services—Diesel Emissions Management(408) 649-4383ConsultingTD@aol.com

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San Diego, CA 8 / -North S.F. Bay Area, CA 800/321-5550South S.F. Bay Area, CA 877/246-4086

Sacramento, CA 800/548-0688Reno, NV 877/809-6492Las Vegas, NV 877/809-6493Houston, TX 866/247-9449

Los Angeles, CA 800/821-4478N. LA/Ventura, CA 877/246-4087Orange County, CA 800/772-8004San Brndno/Rvrsd, CA 877/246-4085

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40 YEARS – 1973Contractor Member:Sanco Pipelines, Inc.Dave Schrader

36 YEARS – 1977Contractor Member:Maggiora & Ghilotti, Inc.Gary Ghilotti

Associate Member:U.S. Pipe & Foundry Co.Robert Waddington

31 YEARS – 1982Contractor Member:Pacific Boring, Inc.David Cline

29 YEARS – 1984Contractor Member:Ranger Pipelines, Inc.Tom Hunt

20 YEARS – 1993Contractor Member:Norwood ConstructionLarry Norwood

19 YEARS – 1994Contractor Member:Lone Star Landscape, Inc.Robert Samaniego

18 YEARS – 1995Contractor Members:O.C. Jones & Sons, Inc.Kelly Kolander

R.J. Gordon Construction, Inc.John Johnson

17 YEARS – 1996Contractor Member:K.J. Woods ConstructionCompany, Inc.Kieran Woods

16 YEARS – 1997Contractor Member:Bugler ConstructionShelley Bugler

15 YEARS – 1998Contractor Member:Condon-Johnson &Associates, Inc.Jerry Condon

14 YEARS – 1999Associate Member:M.B. McGowan & Assoc.Ins. Agency, Inc.Michael McGowan

10 YEARS – 2003Contractor Member:Neary Landscape, Inc.Brian Neary

Associate Member:MAG TruckingDebbie Ferrari

9 YEARS – 2004Contractor Members:Flatiron Construction Corp.Richard Grabinski

Michels TunnelingRay Post

8 YEARS – 2005Contractor Member:Penhall CompanyScott Hustad

Associate Member:Robust Network SolutionsWadih Zumot

7 YEARS – 2006Contractor Members:D & D Pipelines, Inc.Dennis McElligott

W. C. Maloney, Inc.Amy Campbell

Associate Members:Last & FaoroWilliam Last, Jr.

RDO Integrated ControlsAndrew Evans

5 YEARS – 2008Contractor Member:Campanella CorporationMike Campanella

OCTOBER MEMBER ANNIVERSARIESUnited Contractors would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in October:

Associate Members:Groeniger & CompanyRick Groeniger

Tri-West Tractor, Inc.Randy Cram

25 YEARS – 1988Contractor Members:Redgwick ConstructionCompanyBob Rahebi

St. Francis ElectricBob Spinardi

24 YEARS – 1989Associate Member:CEMEXMike Camello

21 YEARS – 1992Contractor Member:R & B Equipment, Inc.Rick Jeffery

O C T O B E R 2 0 1 3 31

3 YEARS – 2010Associate Member:OSHA Training CenterJulia Dozier

2 YEAR – 2011Associate Member:Protection EngineeringMichael Weston

1 YEAR – 2012Contractor Member:M & M Foundation &Drilling, Inc.Gregory Moeller

Associate Members:Commercial Credit Group, Inc.Kevin Libert

TPR Traffic SolutionsRon Allen

Have you ever said “It won’t happen to me”? Don’t wait for an accident on the jobsite. Fill out our Crisis Management Preparation Guide and get our new Crisis Response Plan which includes:• Streamlined policies/procedures for jobsite accidents• Comprehensive list of contacts including support services• 3 phase action plan in the event of a critical incident

This product will be available on www.unitedcontractors.org by October 15th.Questions regarding Crisis Management? Contact Kristina Knecht, (925) 855-7900, kknecht@unitedcontractors.org. u

New UCON Product:Crisis Response Plan

United Contractors carries a wide range of products to service our members. Browse through our product form and find employer, safety, legal and labor products, all tailored to your business. Members can also download many of these forms for free in the Contractor Resources Center. Visit www.unitedcontractors.org/products.

www.flatironcorp.comA HOCHTIEF Company

An investment in transportation is an investment in the future. Every dollar spent on transportation infrastructure generates

five dollars in economic activity. As one of the leading infrastructure contractors in North America, Flatiron has delivered

many successful transportation projects. In Oakland, Flatiron is designing and building the new automated people mover to

carry passengers between BART’s Coliseum Station and the Oakland International Airport. Learn more online:

Oakland’s new Airport Connector

What is the GHS?The GHS is an acronym for The Globally HarmonizedSystem of Classification and Labeling of Chemicals. TheGHS is an international system for standardizing andharmonizing the classification and labeling of chemicals.It is a logical and comprehensive approach to:• Defining health, physical and environmental hazards

of chemicals.• Creating classification processes that use available

data on chemicals for comparison with the defined hazard criteria.

• Communicating hazard information, as well as protective measures, on labels and Safety Data Sheets (SDS).

The elements in the GHS supply a mechanism to meet the basic requirements of any hazard communication system, key elements of which include deciding if the chemical product produced and/or supplied is hazardous and to prepare a label and/or Safety Data Sheet as appropriate.

32 W W W. U N I T E D C O N T R A C T O R S . O R G

SAFETY corn

erRegulatory authorities in countries adopting the GHSwill thus take the agreed criteria and provisions, andimplement them through their own regulatory process and procedures. The GHS Document provides countries with the regulatory building blocks to develop or modify existing national programs that address classification of hazards and transmittal of information about those hazards and associated protective measures.

Why was the GHS developed?The production and use of chemicals is fundamental to all economies. The global chemical business is more than a $1.7 trillion per year enterprise. In the US, chemicals are more than a $450 billion business and exports are greater than $80 billion per year.

While the existing laws and regulations are similar, theyare different enough to require multiple labels for the same product both within the US and in international trade and to require multiple safety data sheets for the same product in international trade. Several

US regulatory agencies and various countries have different requirements for hazard definitions as well as for information to be included on labels or material safety data sheets.

Does implementing GHS change responsibilites for current hazard communications programs for contractors and other industries? No. The requirements for communicating the hazards of

By Robert E. Downey, RED Safety Consulting, and Cam Dickinson, Woodruff-Sawyer & Co.

Safety Bulletin:The Globally Harmonized System of Classification and Labeling of Chemicals (GHS)

Find the chart (left) and more information online at: https://www.osha.gov/Publications/HazComm_QuickCard_Pictogram.html

O C T O B E R 2 0 1 3 33

chemicals used in the workplace to protect workers from those hazards remain the same. Providing training, assuring proper storage, maintenance and controls of hazardous materials, assuring proper handling and disposal remain a part of contractor compliance programs. The changes are focused on more consistent safety data sheets for communicating information to employees and clearer labels and warnings that are

and reduced costs from compliance with hazard communication regulations.

• Application of expert systems resulting in maximizing expert resources and minimizing labor and costs.

• Facilitation of electronic transmission systems with international scope.

• Expanded use of training programs on health and safety.

• Reduced costs due to fewer accidents and illnesses.• Improved corporate image and credibility.

internationally recognized.

What are the benefits?The basic goal of hazard communication is to ensure that employers, employees and the public are provided with adequate, practical, reliable and comprehensible information on the hazards of chemicals, so that theycan take effective preventive and protective measure for their health and safety. Thus, implementation of effective hazard communication provides benefits for governments, companies, workers, & the public.

It is anticipated that application of the GHS will:• Enhance the protection

of human health and the environment by providing an internationally comprehensible system.

• Provide a recognized framework to develop regulations for those countries without existing systems.

• Facilitate international trade in chemicals whose hazards have been identified on an international basis.

• Reduce the need for testing and evaluation against multiple classification systems.

Benefits to companies include:• A safer work environment

and improved relations with employees.

• An increase in efficiency

Continued on next page

34 W W W. U N I T E D C O N T R A C T O R S . O R G

SAFETY corn

erBenefits to workers and the public include:• Improved safety for workers and others through

consistent and simplified communications on chemical hazards and practices to follow for safe handling and use.

• Greater awareness of hazards, resulting in safer use of chemicals in the workplace and in the home.

When will the GHS be implemented?• GHS has been adopted federally and in California

and is applicable now.• By December 1, 2013, all employers are required

to provide to their employees training on the new labels elements and safety data sheets format to facilitate recognition and understanding. u

Key Excerpts from Federal OSHA Website www.osha.gov/dsg/hazcom/ghs.html (a 47 page document entitled: “A Guide to The Globally Harmonized system of Classification and Labeling of Chemicals (GHS)” providing detailed information regarding the Globally Harmonized System. It contains numerous documents, fact sheets, quick cards and other references to assist employers.) For online training on the new Safety Data Sheets as well as information regarding new pictograms used in the GHS system, please visit www.clicksafety.com.

Robert E. Downey, www.REDsafetyconsulting.com, is a specialist in loss prevention and safety. He is an authorized OSHA instruction and recognized author and has been associated with Woodruff-Sawyer since 1999 providing training, safety and loss control services to clients. Cam Dickinson is with Woodruff-Sawyer, a UCON member since 1994. For more information, visit their website at www.wsandco.com.

(888) 234-9244 • www.ntsafety.comWITH 21 NATIONWIDE LOCATIONS, WE’RE WHERE YOU NEED US TO BE

Have an engineered plan...

Before you get inover your head.

As projects become more complex, the importance of having the correct engineered plan and proper equipment design are imperative to a safe and productive work site. Thorough planning helps you ensure worker safety, maximize e� ciency and avoid costly mistakes. Site specifi c engineering also helps you address sticky situations, such as crossing utilities or excavating near adjacent structures. In support of our trench and tra� c safety customers, National Trench Safety has established one of the best site specifi c engineering divisions in the business, led by industry veteran Joe Turner, P.E. We have the knowledge and expertise you need to develop engineered plans for the deepest, widest, most complex jobs you’ll see in the fi eld.

CONSULTINGDESIGN equipment& Service

Explaining the risks of the system

Determining the most e� cient, cost e� ective solution

Creating a comprehensive plan tailored to your needs

Engineering and designing site specifi c trench andtra� c plans

Providing documentation to keep you in compliance

Providing the correct trench and tra� c safety equipment to execute the plan

Providing equipment to complement a contractor’s owned equipment

Providing professional insight for the duration of the project

Others talk. We deliver. It’s what we do.

For over 90 years, we have been delivering creative solutions that help

companies manage their exposures and control costs. You can count on us

to keep pace with and anticipate your needs.

We have dedicated Construction Insurance, Surety and Employee Benefits

experts to serve you.

We will help you succeed in today’s highly competitive business environment.

To learn more, please contact Bret Lawrence at 415.402.6549, or visit us

online at www.wsandco.com.CA License 0329598AN ASSUREX GLOBAL PARTNER

© Woodruff-Sawyer & Co., 2013

O C T O B E R 2 0 1 3 35

(888) 234-9244 • www.ntsafety.comWITH 21 NATIONWIDE LOCATIONS, WE’RE WHERE YOU NEED US TO BE

Have an engineered plan...

Before you get inover your head.

As projects become more complex, the importance of having the correct engineered plan and proper equipment design are imperative to a safe and productive work site. Thorough planning helps you ensure worker safety, maximize e� ciency and avoid costly mistakes. Site specifi c engineering also helps you address sticky situations, such as crossing utilities or excavating near adjacent structures. In support of our trench and tra� c safety customers, National Trench Safety has established one of the best site specifi c engineering divisions in the business, led by industry veteran Joe Turner, P.E. We have the knowledge and expertise you need to develop engineered plans for the deepest, widest, most complex jobs you’ll see in the fi eld.

CONSULTINGDESIGN equipment& Service

Explaining the risks of the system

Determining the most e� cient, cost e� ective solution

Creating a comprehensive plan tailored to your needs

Engineering and designing site specifi c trench andtra� c plans

Providing documentation to keep you in compliance

Providing the correct trench and tra� c safety equipment to execute the plan

Providing equipment to complement a contractor’s owned equipment

Providing professional insight for the duration of the project

COCOC NE ZOZOZNE

(A(A(LALALLLL

MO

MO

MV

OV

OEVEVSESE

ATATAHAHAH

LFSP

EED)

CP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O T

L O S E 1 T U R NL O S E 1 T U R NL O S E 1 T U R NL O S E 1 T U R N

End

DEAD ENDBACK TOSTART

Start

Vehicle Miles Traveled(VMT) TaxesA VMT tax is based on the number of miles

driven. Collecting such a tax would require a

new reporting mechanism to determine the

number of miles each motorist drives. No

state has yet enacted a VMT tax, although

some states are investigating the concept,

and Oregon is conducting pilot tests.

As seen in Westways®. Copyright © 2013 Automobile Club of Southern California. All Rights Reserved. Reprinted by Permission.

Could it be done? Yes, but complex and costly to implement; fraud and privacy issues need to be addressed; not likely to happen in the near term.

Would it raise enough money? It could, if set at a high enough rate and regularly adjusted to meet fi scal needs or keep pace with infl ation.

Increase the Gas TaxTraditionally, federal and state taxes on motor vehicle fuel have funded

transportation projects. In California, motorists pay 39.5 cents a gallon in

state gas taxes, 2 cents a gallon in state underground storage tank fees, plus

18.4 cents in federal gas taxes, generating more than $10 billion a year for

transportation. But most gas taxes haven’t been raised for decades, and their

buying power is declining because of infl ation and newer cars that get better

gas mileage. Each one-penny increase in the state gas tax would raise about

$160 million a year, costing the average California driver just $7 annually.

Could it be done?Technically very easy, but publicly and politically unpopular.

Would it raise enough money? A signifi cant increase could easily generate much of the needed near-term funding.

Increase the Vehicle License Fee (VLF) or Registration FeeThe VLF (0.65 percent of a car’s value—$65 for a

$10,000 car) currently raises about $2 billion a year to

pay for local government services. Vehicle registration

and other DMV fees raise about $2.8 billion per

year (about $100 per registered vehicle) and pay for

motorist services, such as the CHP and DMV.

Tolling and “Road Pricing”It’s becoming increasingly common to levy

tolls on motorists who drive in special express

lanes or on new toll roads.

Would it raise enough money? Tolls could help build new roads, lanes, and related transit services, but they won’t generate enough money to pay for the rest of the transportation system.

Could it be done? Advances in electronic tolling make it easier to implement. But charging a fee to use existing regular lanes and streets—proposed by some offi cials—is very unpopular.

California voters have a long history of approving special sales taxes to

fund specifi c transportation projects, usually in half-cent increments at

the county level. A statewide sales tax could augment or replace the

gas tax. A 1 percent tax would generate more than $6 billion a year.

Sales Taxes Specifi cally for Transportation

Could it be done? Popular because funds stay local and voters know how money will be used. A statewide option could be successful if it follows the same model.

Would it raise enough money? It could. Current local taxes generate over $4 billion a year for roads and transit in the 19 counties that have them; revenue grows with the population, the economy, and infl ation.

0 . 0 1 9

0 . 0 8 8

0 . 4 1 5

0 . 1 8 4

*Includes 2-cent/gallon state underground storage tank fee.

**Most Southern California counties have a 0.5 percent local transportation sales tax program; in Los Angeles County it’s 1.5 percent.

***Price varies daily.

Infrastructure BondsBonds are like taking out a mortgage.

The government borrows money

to build a road or rail line and uses

future tax revenue to repay the money

over time. California voters approved

nearly $20 billion in transportation

bonds in 2006 to fund key projects

that might not otherwise have been

built—and created an ongoing debt

for taxpayers.

Could it be done? Voters have to be willing to approve bonds for specifi c purposes.

Would it raise enough money?Probably not. Bonds usually build capital projects but don’t address ongoing operations and maintenance needs. And some amount of future taxes would have to be set aside to repay the bonds. W

Craig Scott is a transportation policy specialist at the Auto Club of Southern California.

10%

TO C

HP/

DM

V

26%

TO L

OC

AL

RO

AD

S(IN

CLU

DES

BIK

E/PE

DES

TRIA

N)

31%

TO T

RA

NSI

T

33%

TO H

IGH

WA

YS

AN

D F

REE

WA

YS

PRICE AT THE PUMP

BASE GAS PRICE

TOTAL TAXES

LOCAL SALES TAX

STATE SALES TAX

STATE GAS TAX

FEDERAL GAS TAX

*

*

***

*

What You Pay Per Gall onin Taxes

4 . 0 0 0

3 . 2 9 4

0 . 7 0 6

2013 CALIFORNIA TRANSPORTATION FUNDING

31%Where I t GoesThe Auto Club has reviewed several approaches to investing more in transportation that various states are considering. Here’s a brief analysis of each one’s chances for success.

$5.9LOCAL SALES TAXES

$4.1FED

ERA

L FUEL TA

XES

$6.7LO

CAL TAXES/

TOLLS/FARES $1

.6

TRUCK W

EIGHT F

EES/

DIESEL S

ALES T

AX

TOTAL

$29.4*

$6.4STATE FUEL T

AXES

$2.8

VEH

ICLE

REG

ISTR

ATIO

N

AN

D O

THER

DM

V F

EES

$1.9

FEDERAL G

ENERAL FUN

D

Transportation funding is complicated. Much of the money comes from motorists and other system users, is put into different pots, and is then allocated according to complex formulas. The illustrations on these pages are a simplifi ed snapshot of the current funding picture in California.* Does not include one-time state bonds.

(in billions)

Could it be done?Technically easy; publicly and politically extremely unpopular. California voters have repeatedly rejected this option.

Would it raise enough money?Only if the amount of increase is very high.

Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Where It Comes From $

$

$

$

$

$

$

$5.9$5.9$5.9LOCAL SALES TAXESLOCAL SALES TAXESLOCAL SALES TAXES

$4.1$4.1$4.1$4.1

FEDER

AL FU

EL TAX

ES FED

ERA

L FUEL TA

XES

FEDER

AL FU

EL TAX

ES

$6.7LO

CAL TAXES/

TOLLS/FARES $1

.6$1

.6$1

.6$1

.6$1

.6$1

.6

TRUCK W

EIGHT F

EES/

TRUCK W

EIGHT F

EES/

TRUCK W

EIGHT F

EES/

DIESEL S

ALES T

AX

DIESEL S

ALES T

AX

DIESEL S

ALES T

AX

TOTAL

$29.4*$29.4*

$6.4STATE FUEL T

AXES

STATE FUEL TAXES

$2.8

$2.8

VEH

ICLE

REG

ISTR

ATIO

N

VEH

ICLE

REG

ISTR

ATIO

N

VEH

ICLE

REG

ISTR

ATIO

N

AN

D O

THER

DM

V F

EES

AN

D O

THER

DM

V F

EES

$1.9$1.9$1.9

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

(in billions)(in billions) Where It Comes FromWhere It Comes FromWhere It Comes FromWhere It Comes FromWhere It Comes From$5.9

2013 CALIFORNIA TRANSPORTATION FUNDING

0913_WLA_TranFund_REPRINT.indd All Pages 9/26/13 8:55 AM

CALLLAST

COCOC NE ZOZOZNE

(A(A(LALALLLL

MO

MO

MV

OV

OEVEVSESE

ATATAHAHAH

LFSP

EED)

CP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O TP A R K I N G L O T

L O S E 1 T U R NL O S E 1 T U R NL O S E 1 T U R NL O S E 1 T U R N

End

DEAD ENDBACK TOSTART

Start

Vehicle Miles Traveled(VMT) TaxesA VMT tax is based on the number of miles

driven. Collecting such a tax would require a

new reporting mechanism to determine the

number of miles each motorist drives. No

state has yet enacted a VMT tax, although

some states are investigating the concept,

and Oregon is conducting pilot tests.

As seen in Westways®. Copyright © 2013 Automobile Club of Southern California. All Rights Reserved. Reprinted by Permission.

Could it be done? Yes, but complex and costly to implement; fraud and privacy issues need to be addressed; not likely to happen in the near term.

Would it raise enough money? It could, if set at a high enough rate and regularly adjusted to meet fi scal needs or keep pace with infl ation.

Increase the Gas TaxTraditionally, federal and state taxes on motor vehicle fuel have funded

transportation projects. In California, motorists pay 39.5 cents a gallon in

state gas taxes, 2 cents a gallon in state underground storage tank fees, plus

18.4 cents in federal gas taxes, generating more than $10 billion a year for

transportation. But most gas taxes haven’t been raised for decades, and their

buying power is declining because of infl ation and newer cars that get better

gas mileage. Each one-penny increase in the state gas tax would raise about

$160 million a year, costing the average California driver just $7 annually.

Could it be done?Technically very easy, but publicly and politically unpopular.

Would it raise enough money? A signifi cant increase could easily generate much of the needed near-term funding.

Increase the Vehicle License Fee (VLF) or Registration FeeThe VLF (0.65 percent of a car’s value—$65 for a

$10,000 car) currently raises about $2 billion a year to

pay for local government services. Vehicle registration

and other DMV fees raise about $2.8 billion per

year (about $100 per registered vehicle) and pay for

motorist services, such as the CHP and DMV.

Tolling and “Road Pricing”It’s becoming increasingly common to levy

tolls on motorists who drive in special express

lanes or on new toll roads.

Would it raise enough money? Tolls could help build new roads, lanes, and related transit services, but they won’t generate enough money to pay for the rest of the transportation system.

Could it be done? Advances in electronic tolling make it easier to implement. But charging a fee to use existing regular lanes and streets—proposed by some offi cials—is very unpopular.

California voters have a long history of approving special sales taxes to

fund specifi c transportation projects, usually in half-cent increments at

the county level. A statewide sales tax could augment or replace the

gas tax. A 1 percent tax would generate more than $6 billion a year.

Sales Taxes Specifi cally for Transportation

Could it be done? Popular because funds stay local and voters know how money will be used. A statewide option could be successful if it follows the same model.

Would it raise enough money? It could. Current local taxes generate over $4 billion a year for roads and transit in the 19 counties that have them; revenue grows with the population, the economy, and infl ation.

0 . 0 1 9

0 . 0 8 8

0 . 4 1 5

0 . 1 8 4

*Includes 2-cent/gallon state underground storage tank fee.

**Most Southern California counties have a 0.5 percent local transportation sales tax program; in Los Angeles County it’s 1.5 percent.

***Price varies daily.

Infrastructure BondsBonds are like taking out a mortgage.

The government borrows money

to build a road or rail line and uses

future tax revenue to repay the money

over time. California voters approved

nearly $20 billion in transportation

bonds in 2006 to fund key projects

that might not otherwise have been

built—and created an ongoing debt

for taxpayers.

Could it be done? Voters have to be willing to approve bonds for specifi c purposes.

Would it raise enough money?Probably not. Bonds usually build capital projects but don’t address ongoing operations and maintenance needs. And some amount of future taxes would have to be set aside to repay the bonds. W

Craig Scott is a transportation policy specialist at the Auto Club of Southern California.

10%

TO C

HP/

DM

V

26%

TO L

OC

AL

RO

AD

S(IN

CLU

DES

BIK

E/PE

DES

TRIA

N)

31%

TO T

RA

NSI

T

33%

TO H

IGH

WA

YS

AN

D F

REE

WA

YS

PRICE AT THE PUMP

BASE GAS PRICE

TOTAL TAXES

LOCAL SALES TAX

STATE SALES TAX

STATE GAS TAX

FEDERAL GAS TAX

*

*

***

*

What You Pay Per Gall onin Taxes

4 . 0 0 0

3 . 2 9 4

0 . 7 0 6

2013 CALIFORNIA TRANSPORTATION FUNDING

31%Where I t GoesThe Auto Club has reviewed several approaches to investing more in transportation that various states are considering. Here’s a brief analysis of each one’s chances for success.

$5.9LOCAL SALES TAXES

$4.1FED

ERA

L FUEL TA

XES

$6.7LO

CAL TAXES/

TOLLS/FARES $1

.6

TRUCK W

EIGHT F

EES/

DIESEL S

ALES T

AX

TOTAL

$29.4*

$6.4STATE FUEL T

AXES

$2.8

VEH

ICLE

REG

ISTR

ATIO

N

AN

D O

THER

DM

V F

EES

$1.9

FEDERAL G

ENERAL FUN

D

Transportation funding is complicated. Much of the money comes from motorists and other system users, is put into different pots, and is then allocated according to complex formulas. The illustrations on these pages are a simplifi ed snapshot of the current funding picture in California.* Does not include one-time state bonds.

(in billions)

Could it be done?Technically easy; publicly and politically extremely unpopular. California voters have repeatedly rejected this option.

Would it raise enough money?Only if the amount of increase is very high.

Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Transportation funding is complicated. Much of the money Where It Comes From $

$

$

$

$

$

$

$5.9$5.9$5.9LOCAL SALES TAXESLOCAL SALES TAXESLOCAL SALES TAXES

$4.1$4.1$4.1$4.1

FEDER

AL FU

EL TAX

ES FED

ERA

L FUEL TA

XES

FEDER

AL FU

EL TAX

ES

$6.7LO

CAL TAXES/

TOLLS/FARES $1

.6$1

.6$1

.6$1

.6$1

.6$1

.6

TRUCK W

EIGHT F

EES/

TRUCK W

EIGHT F

EES/

TRUCK W

EIGHT F

EES/

DIESEL S

ALES T

AX

DIESEL S

ALES T

AX

DIESEL S

ALES T

AX

TOTAL

$29.4*$29.4*

$6.4STATE FUEL T

AXES

STATE FUEL TAXES

$2.8

$2.8

VEH

ICLE

REG

ISTR

ATIO

N

VEH

ICLE

REG

ISTR

ATIO

N

VEH

ICLE

REG

ISTR

ATIO

N

AN

D O

THER

DM

V F

EES

AN

D O

THER

DM

V F

EES

$1.9$1.9$1.9

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

FEDERAL G

ENERAL FUN

D

(in billions)(in billions) Where It Comes FromWhere It Comes FromWhere It Comes FromWhere It Comes FromWhere It Comes From$5.9

2013 CALIFORNIA TRANSPORTATION FUNDING

0913_WLA_TranFund_REPRINT.indd All Pages 9/26/13 8:55 AM

O C T O B E R 2 0 1 3 37See Congressman John Garamendi’s article Inside the Capitol on page 10 for more information about investing in transportation funding.

HYDRANTS.

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FERGUSON.COM/WATERWORKS

HYDRANTS.

HDPE PIPE.

PVC PIPE.

VALVES/FITTINGS.

COUNT ON USLast year was a momentous time in waterworks.

We joined forces to give you a complete waterworks solution.

There is one thing we supplythat professionals have come to rely on again and again -- our people.

Northern California Waterworks Team

HaywardModesto

FresnoSanta RosaSacramento (2)

Bakersfield (2)SalinasPlant

ChicoSan JoseClovis

ReddingSparks, NV

ALL LOCATIONS

Nobody expects more from us than we do®

© 2012 Ferguson Enterprises, Inc. All rights reserved.

FERGUSON.COM/WATERWORKS

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