JOURNAL OF THE ASSOCIATED GENERAL … constructor journal of the associated general contractors of...

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CALIFORNIA CONSTRUCTOR JOURNAL OF THE ASSOCIATED GENERAL CONTRACTORS OF CALIFORNIA July 2008 STATE’S BUDGET CRISIS FRONT and Center as AGC Members Convene in Sacramento for Annual Legislative Day STATE’S BUDGET CRISIS FRONT and Center as AGC Members Convene in Sacramento for Annual Legislative Day

Transcript of JOURNAL OF THE ASSOCIATED GENERAL … constructor journal of the associated general contractors of...

CA L I F O R N I A

CONSTRUCTORJ O U R N A L O F T H E A S S O C I A T E D G E N E R A L C O N T R A C T O R S O F C A L I F O R N I A

July 2008

STATE’S BUDGET CRISIS FRONT and Center as AGC Members Convene in Sacramento for Annual Legislative Day

STATE’S BUDGET CRISIS FRONT and Center as AGC Members Convene in Sacramento for Annual Legislative Day

ON THE COVER:

Published by:

FeaturesCon Expo to Showcase Billions in Upcoming Public Projects . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Member Converge on Capitol for Annual Legislative Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

AGC’s National Legislative Priorities for 2008-09 . . . . . 10

AGC’s PAC in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

AGC Promotes Construction through Career Days . . . 11

Affinity Partners Deliver Increases Value for AGC Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

DepartmentsLegal News:When Insurance and Indemnity Collide . . . . . . . . . . . . . . 6

Industrial Relations:Minimizing Risk through Good-Record Keeping… . . . 13

Association Highlights:Member News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Regional News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Safety Corner:Keeping a Watchful Eye on Safety Legislation . . . . . . . . . 18

Contractor Outreach:McCarthy’s ‘Heart Hats’ Stage Trainingand Tour for Boy Scouts . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Published monthly for members ofAssociated General Contractors of California 3095 Beacon Boulevard West Sacramento, CA 95691 • (916) 371-2422www.agc-ca.org

California ConstructorThe Voice Of The Construction Industry

Publisher Kathy Varney — McGraw-Hill Construction, (206) 378-4700

EditorCarol A. Eaton — Eaton Communications

Manager, Design & ProductionJeff Kruger — McGraw-Hill Construction, (626) 932-6193

Graphic Designer/ProductionLorraine Delgado — McGraw Hill Construction, (626) 932-6148

Advertising/SalesSandra Brown — McGraw-Hill Construction, (800) 279-1954Maggie Hartley —McGraw-Hill Construction, (626) 932-6174Michael Moffat — McGraw-Hill Construction, (800) 851-5554

Advertising CoordinatorKatherine Culliver — McGraw-Hill Construction, (626) 932-6172

Correspondence: Address editorial correspondence to: Journal ofthe Associated General Contractors of California, 3095 BeaconBlvd., West Sacramento, CA 95691, 916/371-2422 or call CarolEaton at 707/789-9520 or [email protected] 2008

As we go to press this month, California does not have abudget for the fiscal year 2008-2009, and the deadline ofJune 15 for the passage of a budget bill came and went withlittle fanfare. During AGC’s Annual Legislative Day June 18,guest speakers painted a very gloomy picture regardingwhen the state’s budget may be passed. Given California’sprojected $17.5 billion deficit, it is unlikely that a budget willbe passed by August.

The AGC Legislative Day provided the opportunity formore than 100 members from throughout the state to meet California’s politicalleadership and discuss issues of primary concern to the industry. Our advocatesDave Ackerman, Jamie Kahn and Paul Gladfelty together with their staff and JohnHakel did an outstanding job putting this entire day together! The lobbying effortsby our members at this annual event helps demonstrate to our elected leaders thatAGC is fully engaged and paying attention to their representation.

A top discussion point on all the legislative visits made by AGC members was thatif a budget is not in place by July 1, public agencies may not be able to make progresspayments. Members provided legislators with first hand information on all costsrelated to de-mobilizing and mobilizing projects and stressed the ripple effect thiswould have on the economy and the state’s infrastructure. Members also lobbied tokeep Prop 42 monies away from the budget talks. For the most part, the atmospherein Sacramento was pessimistic that a new budget can be achieved unless it includesmore cuts and increases in income from fees. AGC members can access the positionpapers presented to legislators at www.agc-ca.org under the legislative advocacysection.

With all this said, if a state budget is not passed and even if contractors perform-ing public works are not paid, subcontractors and material suppliers will still need tobe paid. As some of you may remember, nearly six years ago when the state’s budgetwas delayed, AGC contractors agreed to keep Caltrans projects going and workedout payments for their subcontractors and suppliers in order to keep projectsmoving forward. However, due to current economic conditions, including rising fueland material costs, many contractors report they will not be able to keep projectsgoing this time around.

In addition to member visits with legislators, AGC’s Legislative Day included afull panel of speakers representing the state’s top political and agency leadership, asoutlined in the highlight pages in this issue. Leading off this list of high profile speak-ers during the morning session was Insurance Commissioner Steve Poizner, whoprovided his thoughts on the state’s economic future, the importance of educationprograms and more. We all came away from his briefing with a strong indicationthat Poizner is interested in running for Governor.

An important panel discussion with the Department of Industrial Relationsprovided members first hand information on meal and rest periods, off haul truck-ing and the department’s discontinuance of using precedential decisions. Memberswere treated to a lively question and answer period on numerous topics, whichserved to confirm the great working relationship AGC maintains with the Depart-ment at all levels.

Given the current state of California’s economy, negatively impacted by twodecades of budget problems, significant increases in fuel and material costs and ahousing market that continues to decline, among many other factors, it is moreimportant than ever that AGC members make their voices heard in the capitol.AGC’s continued work with broad coalitions, including labor and pro businessgroups, is critical to impart on our legislators the importance of reversing the state’santi-business trend and promoting California’s infrastructure and buildingprograms to jump start the economy.

- Thomas T. Holsman

AGC-member contractorW.E. Lyons ConstructionCo., Oakland, built anew equestrian centerfor Menlo Circus Clubin Atherton that will beshowcased in a majorcharity event nextmonth. (See page 18 for story.)

Photo by Susan Lohwasser

Associated General Contractors of California 3

CHIEF EXECUTIVE OFFICERTABLE OF CONTENTS

California’s State Budget Crisis

4 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

California’s public agencies are in the envi-able position of having $150 billion dollars attheir disposal for scheduled projects butthere’s one problem…not enough contrac-tors. Why? The situation can be explained byseveral factors: the mistaken belief that work-ing with public agencies poses too much redtape; the burgeoning need to simultaneouslybuild and renovate public buildings andinfrastructure; and a skilled labor shortageaffecting the industry.

However, contractors that are activebidders in public works recognize that theeconomic opportunities are bountiful andpossess minimal risk.

Public agencies routinely plan multi-yearproject schedules, but few contractors areaware of the contracting opportunities avail-able. Gilbert Ivey, Chief Administrative Offi-cer, Metropolitan Water District, explains:“The need for public works continues toincrease. Our sister agencies are developingand executing multi-billion dollar capitalimprovement programs, but there are notenough contractors or skilled labor to get thejob done. As a result, public agencies arechallenged by a limited number of competi-tive bids.”

Jointly, the Metropolitan Water District ofSouthern California, Los Angeles UnifiedSchool District, Los Angeles World Airports,Port of Los Angeles, and the AGC of Califor-nia are hosting California Construction Expoon August 21 at the Los Angeles ConventionCenter to actively introduce and match

contractors to public works and toincrease their access to skilled labor.

Hosted for the first time in August2006, the event is unique to the publicsector, with various public agenciescollaborating to bring projects andcontractors together in one place.However, meeting the demand forincreased contractor capacity is far fromsolved, and contractors continue to bedoubtful about working with public

agencies, regardless of prompt paymentand improved business efficiencies atmany government agencies.

Margaret I. Hernandez, Director,Contracts & Purchasing Division at thePort of Los Angeles, notes, "The Port ofLos Angeles’ 10-year capital improve-ment plan forecasts expenditures of over$3 billion dollars for terminal enhance-ments, transportation, security, andwaterfront development projects. Ourstaff is committed to making opportuni-ties available to all segments of the busi-

ness community, and especially smallbusinesses."

CalCon Expo 2008 recognizes thatcontractors need to be wooed, so effortsto improve contractor relations are apriority. Workshops rich with informa-tion and resources, and a contractormatchmaking event are planned atCalCon Expo 2008 to create enthusiasmfor public works. Guy Mehula, ChiefFacilities Executive, Los Angeles UnifiedSchool District, explains, “With a $20billion school construction and modern-ization program, we have a large stake inthe effort to attract greater contractorcapacity. Our goal is to be known as the‘Owner of Choice’ among contractors,and we are committed to invest in theirlong-term success.”

CalCon Expo 2008 intends to showcontractors that public agencies offer aviable and attractive alternative to work-ing in the private sector. Workshops willshowcase CIP in different constructionsectors, green building, technology, andhow to attract and develop skilled labor.There will be a Green Pavilion along withforums explaining how to navigate thepublic contracting process. CalCon Expo2008’s message to the constructioncommunity is: “We want to work withyou and increase your presence in thepublic sector market. We promise tomake it easy.”

For sponsorship, exhibitor andattendee registration opportunities, visitwww.calconexpo.com.

CalCon Expo to Showcase Billions in Upcoming Public Projects

FEATUREWWW.AGC-CA.ORG

Public Agencies Seeking Qualified Contractors for Their Jobs Will Highlight Construction Opportunities Ahead in California

“The need for public works continues to increase.Our sister agencies are developing and executing

multi-billion dollar capital improvement programs,butthere are not enough contractors or skilled labor toget the job done.As a result,public agencies are

challenged by a limited number of competitive bids.”-- Gilbert Ivey,Chief Administrative Officer,

Metropolitan Water District

Coming Next MonthNext month’s California Constructor will focus on Safety,

and will highlight the winners of AGC of California’s 2008 SafetyAwards of Excellence competition. Look for it all in August!

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When a subcontractor’semployee is injured andsues, general contractorsexpect that the subcon-tractor will indemnifythem from the claim. Arecent Court of Appealdecision may underminethat expectation.

In JPI Westcoast Construction v. RJS &Associates (156 Cal. App 4th 1448 (2007)), thesubcontract included a standard indemnityprovision requiring the subcontractor to fullyindemnify the general contractor against allclaims except those resulting from the generalcontractor’s sole negligence or willful miscon-duct. The subcontract stated:

“… Subcontractor shall indemnify andhold harmless … Contractor (Indemnitees)… from all claims, damages, losses andexpenses … attributable to bodily injury, …death or injury … arising out of or in connec-tion with the performance of the Work ofSubcontractor performed … in connectionwith the Project, … even if caused jointly andconcurrently by the negligence of the Indem-nitees and Subcontractor … The aboveindemnity provisions do not extend to, orcover any loss, damage, or expense arising outof the sole negligence or willful misconduct ofContractor …”

During the course of the project, a subcon-tractor’s employee was accidently killed. Theemployee’s family sued, and the jury found thesubcontractor to be 70% responsible and thegeneral contractor to be 20% responsible(10% to other entities). Based on thecontract’s indemnity provision, the subcon-tractor was responsible for the full amount.

The judgment was settled in full by thesubcontractor’s primary and excess insurancecarriers. The subcontractor’s primary policypaid out its policy limits, leaving approxi-mately $3.9 million to be paid. The subcon-tractor’s excess carrier paid the remaining$3.9 million. This is the result we wouldexpect. However, the subcontractor’s excesscarrier then sought reimbursement of$866,666.67 (the 20% allocated by the jury tothe general contractor’s fault) from the gener-

al contractor’s CGL carrier, and the courtreached a result one would not expect.

The Court determined that the generalcontractor had been fully indemnified,even though claims for reimbursementwere being made against its carrier. Addi-tionally, the Court determined that theexcess carrier had a right to reimburse-ment, because the excess policy containedan “other insurance” provision. The “otherinsurance” provision stated that the excessinsurance was secondary to all other insur-ance that could cover the claim. The Courtconcluded that the general contractor’scarrier had to pay out its policy limitsbefore the subcontractor’s excess carrierwas obliged to contribute. The Court ofAppeal affirmed.

Effect of the DecisionWhile there is no question that a

subcontractor can be required to indemni-fy a general contractor for claims arisingout of joint liability, this court held thatindemnity obligations in the subcontractwill not be allowed to control or dictateinsurance obligations. Because the generalcontractor’s liability (20%) was a coveredloss under the general contractor’s CGLpolicy, the Court determined that thegeneral contractor’s carrier had to respondand be exhausted before the subcontrac-tor’s excess carrier stepped down to coverthe same liability.

Therefore, whenever a judgment islarger than a subcontractor’s CGL policylimit, the general contractor’s CGL policymust pay for all covered claims until thepolicy is exhausted. Only then, will thesubcontractor’s excess carrier be obligatedto step down and pay any remaining

balance. This allows the subcontractor toescape some of the indemnity obligationsit agreed to take on when entering thecontract. The indemnity provisionrequired the subcontractor to pay anyamount the general contractor becameliable for. Instead, the Court lookedbeyond this indemnity obligation anddecided that because the general contrac-tor paid nothing, it had in fact beenindemnified. It appears that no considera-tion was given to the real world effect onthe general contractor.

If the general contractor’s CGL policyis required to pay for claims, the negativeeffect on the general contractor is twofold.First, it will reduce the available policylimits for any other claims within the same

policy period. In this particular case, theCourt found that the general contractor’scarrier was responsible for reimbursing$866,666.67. Therefore, if there are anyadditional claims during the same policyperiod, the general contractor will have$866,666.67 less in insurance coverageavailable to cover any other claims. Ulti-mately, this could mean that the generalcontractor will have to come out of pocketto settle other claims. Second, such apayment may cause the general contrac-tor’s insurance premiums to rise. Thesereal-world implications are risks that thegeneral contractor shifted to its subcon-tractor when it bargained for the indemni-ty provision. However, when the provisionand insurance obligations collided, theCourt ruled that the insurance contract isparamount in controlling the carrier’spayment obligations.

When Insurance and Indemnity Collide

By Raymond E. Kong

LEGAL NEWSWWW.AGC-CA.ORG

Appeals Court Ruling Undermines Expectation that SubcontractorsWill Indemnify GCs From Claim When Sub’s Employee Is Hurt

Whenever a judgment is larger than a subcontractor’s CGL policy limit, the general

contractor’s CGL policy must pay for all coveredclaims until the policy is exhausted.Only then will thesubcontractor’s excess carrier be obligated to step

down and pay any remaining balance.

Associated General Contractors of California 7THE VOICE OF THE CONSTRUCTION INDUSTRY

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How To Get What You Bargained For

Due to the Court’s focus on the “other insurance”clause, it seems that this is where some modificationcan be made to ensure that the general contractor’sCGL policy need not be exhausted before a subcon-tractor’s excess carrier contributes. The Court notedthat the “Other Insurance” clause involved in this casecontained the following sentence: “However, thisprovision will not apply if the other insurance isspecifically written to be excess of this policy.” Thismakes it clear that a subcontractor’s excess policy canbe primary to other insurance. To avoid the outcomeof JPI Westcoast, as a general contractor, you shouldmodify your subcontracts to require subcontractorsto make any excess insurance purchased, whetherrequired by contract or not, primary to any of yourinsurance. This would shift the burden to the subcon-tractor to purchase an excess policy that acknowl-edges that it will step down before your own insur-ance is exhausted. If the subcontractor purchases thewrong insurance, it will be in breach of its contractand its indemnity obligations will not be so easilyignored as they were in JPI Westcoast.

Raymond E. Kong is an Associate with Bell, Rosen-berg & Hughes LLP, Oakland. He can be reached [email protected], or (510) 832-8585.

Construction Industry BriefsRecent business and economic highlights of the construction industry

nationally and within California include the following:

The producer price index (PPI) for finished goods jumped 1.4% inMay, seasonally adjusted, and 7.2% compared to May 2007, accordingto the Bureau of Labor Statistics. As reported by AGC Chief EconomistKen Simonson, PPIs for construction in particular have soared, with thebiggest jump being for highway and street construction (4.0% fromprevious month and up 15% from May ’07), followed by other heavyconstruction (3.5% and 13%).

Construction earnings (payrolls, supplements to wages and salaries,and proprietors’ income) slid 0.7 percentage points, seasonally adjusted,in the first quarter of 2008 according to the Bureau of Economic Analy-sis. Construction earnings fell in 35 states and the District of Columbiaand rose in 15 states.

The Bureau of Labor reported recently that between April and May2008, seasonally adjusted nonfarm payroll employment increased in 29state and DC, decreased in 17 states, and was unchanged in four states.

8 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

Over 100 AGC members descended onSacramento June 17th and 18th for the 2008AGC Legislative Day.

The activities started on June 17th with areception in honor of legislators who are carry-ing AGC sponsored or co-sponsored bills thisyear. Honored at the reception were:

Senator Ron Calderon, author of SB 1449(payment bonds); Senator Lou Correa, authorof SB 1337 (LLC corporate status); SenatorDick Ackerman, author of SB 1631 (greenmailprohibition); and Assembly Member Fiona Ma,author of AB 983 (deficient plans and specifica-tions). Each legislator expressed his or herstrong support for the construction industry.

The AGC Legislative Day on June 18thbegan with a presentation from InsuranceCommissioner (and rumored candidate forGovernor) Steve Poizner. CommissionerPoizner discussed efforts by his office tocombat various insurance fraud operations anddetailed his efforts to monitor and controlworkers’ compensation insurance, realizingthat the construction industry is subject tosome of the higher workers’ comp rates in theemployer community.

Senate ProTempore (elect) DarrylSteinberg (D-Sacramento) and AssemblySpeaker Karen Bass (D- Los Angeles)were next to address the attendees andfocused on the current budget and fiscalcrisis facing the state. Speaker Bass wassworn into office in May while SenatorSteinberg will assume the ProTemporeposition at the conclusion of the legislativesession. Both legislative leaders empha-sized the political difficulty of achievingearly consensus on a state budget this year.

John Duncan, Director of theDepartment of Industrial Relations, ledan informative panel discussion coveringmany of the regulatory issues involvingthe construction industry. In addition toDirector Duncan, Deputy Director DaveRowan, Chief Counsel for Labor Stan-dards Enforcement Bob Roginson andWorkers’ Comp Administrative DirectorCarrie Nevans discussed issues rangingfrom underground economy enforce-ment, prevailing wage determinationsand meal and rest periods to workers’comp enforcement.

AGC Lobbies the Legislature

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During lunch, Chris Kahn, Deputy Chiefof Staff and Legislative Secretary to Gover-nor Arnold Schwarzenegger, presented theGovernor’s perspective on the currentbudget discussions and described the “Big 5”process involving the Governor and fourlegislative leaders that will be employed toreach a consensus in order to approve the2008-09 state budget.

AGC members spent the afternoon inmeetings with their legislators discussing theimpact a delayed state budget or diversion ofProposition 42 revenues would have onconstruction projects. Members alsoexpressed opposition to legislative efforts toincrease workers’ compensation costs on theconstruction industry.

Capping off the day was a final stop atGallagher’s Irish Pub, giving everyone achance to wind down and share their legisla-tive stories and experiences.

AGC thanks their sponsors of LegislativeDay: Robin Carr, Glenn M. Gelman &Associates; Luke Caswell, Enterprise FleetManagement, and Andy Tocko, AllianceSolutions Group.

1. Pictured during the June 17th reception with legislators, AGC advocate Dave Ackerman with Senator Ron Calderon (D-Montebello). 2. Michelle Loveall, FirstRegional Bank, and Jamie Khan AGC Advocate, with Assemblywoman Fiona Ma (D-San Francisco) and Senator Lou Correa (D-Santa Ana). 3.AGC-CA PresidentWayne Lindholm with Insurance Commissioner Steve Poizner, AGC-San Diego President John Daley, and AGC Legislative Chair David Colon, NK DAVID CON-STRUCTORS. 4. John Nunan, Unger Construction Co., Bob Hall, J. R. Roberts Corp., Dave Garese, Excel Bonds & Insurance Co., Senate Pro Tempore (Elect) DarrellSteinberg (D-Sacramento),Bob Christenson,Panattoni Construction,and Jim Hunt and Bill Koponen,Syblon Reid.5.Jamie Khan with Dave Rowan,Deputy Director,Department of Industrial Relations (DIR), John Duncan, Director, DIR, Tom Holsman, AGC CEO, and Bob Roginson, Chief Counsel, Division of Labor StandardsEnforcement. 6. Chris Kahn, Legislative Secretary and Deputy Chief of Staff to Gov.Arnold Schwarzenegger. 7. Catherine Tubbs,The Won-Door Corp.,Andy Tocko,Alliance Solutions Group, Tim Truax, Law Offices of Timothy M. Truax, Charles Gale, Metropolitan Water District, Mike Roddy, Washington Division of URS Corp.,Assembly Speaker Karen Bass, Dan McGrew, Griffith Company, Robin Carr, Glenn M. Gelman & Associates, David Colon and Michelle Loveall. 8. Senator DickAckerman (R-Tustin) addressing Bob Cowan,Marina Landscape, Inc.,Richard Tirrell,GCI Construction,Dan McGrew,Wayne Lindholm,Hensel Phelps ConstructionCo., and the youngest AGC recruit, Ian McGrew. 9. Barbarette Newman, Redwood Resources, Blaise Fettig,Vortex Marine Construction, Inc., Aaron Silberman,Rogers, Joseph & O’Donnell,Tyrone Evans and Ricky Johnson, both of RCJ & Associates,Assemblywoman Fiona Ma, Chuck Fletcher, MCE Corporation, and BobBrosamer, R & L Brosamer, Inc. 10. Wrapping up at the reception at Gallagher’s were Paul Gladfelty, AGC Advocate, with Jim Ryan, AGC – San Diego ExecutiveDirector.11.Mike Blach,Blach Construction Co.,with Jim Hawk,Rosendin Electric,Inc.,and Jeff Davis,Central Concrete Supply.12.Bill Hamilton,AGC,Raul Guedea,AGC-San Diego Apprenticeship Program, Annor Gowdy, Brickley Environmental, Assembly Member John Benoit and Jerome DiPadova, Skanska USA. 13. RandyDouglas,Tierra Contracting,Tony Morelli,AGC,Steve Blois,Blois Construction,Assemblyman Pedro Nava (D-Santa Barabara),Blair Douglas and Arlie Williford,TierraContracting.14.Mark Berry,R.J.Berry Jr. Inc.,Blaire Sobba,Granite Construction,Gary Rohman,ECCO Equipment,Assemblyman Bill Maze (R-Visalia),Robert Berry,R. J.Berry Jr., Inc.,Gary Castro,KRC Safety,Nick Seals, Seals/Biehle General Contractors,and Michael Jurkovich,Kimble,MacMichael & Upton.

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10 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

On a national scale, AGC of America haslong maintained a strong voice in the politicaland regulatory arenas in Washington D.C.,fighting for the interests of its more than35,000 construction industry member firms.The national association works in comple-ment to the nationwide network of AGCchapters, including AGC of California, wholikewise work to protect members' interests atthe state, regional and local levels.

Some of AGC's Legislative Priorities for2008 (outlined in greater detail on the associ-ation’s website) include:

• Environment Issues: Federal environ-mental policies seek to minimize and mitigatethe environmental footprint of the construc-tion process. To minimize the environmentalbarriers to business opportunities, AGC advo-cates for environmental policies that arereasonable and achievable. Among other topissues, AGC opposes legislation to expandClean Water Act Permit requirements forconstruction work that may impact any wetor damp areas within the U.S.

• Infrastructure Investment: AGCsupports increased infrastructure investmentat a level that provides the necessary fundingto meet the nation's growing infrastructureneeds. AGC supports increased investment inaviation infrastructure funding, opposestemporary suspension of the gas tax, supportspreserving federal highway and transitcommitments to surface transportation fund-ing, and supports creation of a long-term,sustainable, off-budget source of clean waterfunding to finance construction and mainte-nance of this infrastructure.

• Labor & Employment: The association isworking to address the employment chal-lenges that employers face in the constructionindustry. The association contends thatensuring a strong and skilled workforce is notpossible without enacting a comprehensivenational immigration reform policy andreasonable and achievable health care reform.

• Legal Issues: AGC supports legal reformthat can improve the business climate byremoving the threat of frivolous litigation,reducing insurance costs, and stabilizingprices to the consumer. Top issues include theContractor Good Samaritan Act protection,

due process for constructors in regards toimmigration violation issues, and bringingthe 80-year-old Longshore Act into the21st century.

• Procurement Issues: AGC supportsprocurement reform to improve deliveryof construction services. Top issues dealwith bid shopping, construction is not a“commodity,” the false claims act, reverseauctions and more.

• Safety & Health Issues: AGC supportscommon–sense OSHA reform legislationwhich provides protection for small busi-nesses while promoting a safe and healthywork environment. One top issue dealswith personal protection equipment, withthe association opposing a “one size fits

all” mandate for providing personalprotective equipment for the industry.

• Tax Issues: AGC supports loweringthe federal tax burden on individuals,construction companies, and other busi-ness as a means of promoting investment,business development, and businessexpansion. The association is committedto working to ensure the total repeal of the3% withholding tax, and supports thepermanent reduction of the death tax onfamily owned businesses and theiremployees, among other things.

For more in-depth information onspecific issues that AGC is addressing thisyear, visit AGC’s website www.agc.org.

AGC’s National Legislative Priorities

FEATUREWWW.AGC-CA.ORG

Greater Infrastructure Investment, Less Regulation and Lower TaxesSo Members Can Grow Their Business Rank Among Top Issues

A Look at AGC’s PAC in ActionLegislative actions have a major

impact on the state’s construction busi-nesses, and AGC of California has longrecognized how important it is to electmembers to the California legislaturewho are willing to listen to industryconcerns, understand them and actaccordingly. The industry’s opponentson important business and industryissues are powerful. They are spendingbig money to elect candidates who donot share the same values and concernsand will fight efforts to protect theconstruction industry.

Political Action CommitteeAGC of California sponsors a Politi-

cal Action Committee (PAC) thatsupports state and local candidates andan Issues Political Action Committee(Issues PAC) that provides support forstate and local issues. The AGC/PACcontributes to all candidates in allparties who demonstrate an under-standing of the construction industryand who show the most promise ofprotecting the interests of California’scontractors and those in the construc-tion industry. The Issues PAC supports

ballot measures or proposals thatstrengthen California's constructionindustry and fights against thosemeasures that pose a threat to it.

The AGC/PAC and Issues PAC relyon donations for funding. Support fromAGC members is vital to the CandidatesPAC and Issues PAC programs.

120 Club Recently, AGC created the “120

Club” to recognize individuals whocontribute $1,000 or $500 during acalendar year. The AGC 120 Club nameis derived from the fact that there are120 combined Assembly Members andSenators in the State of California. The120 Club supports those that are willingto give the construction industry a fairand balanced hearing on issues thatcome before them during the legislativesession. AGC members that join the 120Club receive additional benefits such asusage of a private club room during theSpring and Fall Conferences.

How To Join the 120 Club?It’s easy to become part of the 120

Club, contact John Hakel at (626) 608-5800 or [email protected].

AGC Promotes Careers in Construction Through Series of Career Days StatewideStudents Learn of Opportunities in Industry through Recent Eventsin Sacramento, Fresno and North Bay

WWW.AGC-CA.ORG

Associated General Contractors of California 11THE VOICE OF THE CONSTRUCTION INDUSTRY

Continuing its focus on showcasing theconstruction industry to the youngpeople who will be its future workforce,AGC of California has spearheadedseveral career day events in recentmonths in the Sacramento area, CentralValley and North Bay regions.

All totaled, more than 2,500 studentswere exposed to the opportunities thatconstruction industry careers offersduring the three recent events.

Teichert Construction was host thisyear of the 8th Annual greater SacramentoArea Career Day on April 17. More than

1,200 junior high and high school studentsfrom 47 schools and six counties partici-pated in the event.

During the daylong event, studentswere able to participate in hands-on activi-ties such as operating heavy equipment,welding, a driving simulator, and rockclimbing. Cement masons and bricklayersencourage students to grab a trowel or abrick. All these activities are designed tooffer students a glimpse of the diversity ofcareers in the industry.

In addition to the AGC of California,additional construction industry part-

ners in the event included the FederalHighway Administration and the Cali-fornia Department of Transportation. Atotal of 58 construction related compa-nies, associations, apprenticeshipprograms and government organizationsprovided booths for students to exploredifferent trades.

In the Central Valley, AGC of Califor-nia’s San Joaquin District held its firstCareer Day at Fresno State on May 9,which drew more than 375 students from15 area schools.

Welding, Fabrication & ConstructionTeacher Richard Jacobsen, from Le GrandUnion High School commented: “Thisevent definitely opened up my students’thoughts as to the possibilities for employ-ment and training in the constructionindustry. The students were very excited tolearn about the heavy equipment. Eventhough it is non-traditional, I had severalfemale students interested in pursuingheavy equipment career options. If AGChosts this event next year, I will definitelybring students again.”

Gary Castro, Chair of the San JoaquinDistrict of AGC, stated: “Constructionemployers, associations, and apprentice-ship programs provide technical skills andtraining to individuals who prove them-selves to be hard-workers and trustworthy.With fewer vocational education classesavailable in our schools, I feel it is impor-tant that AGC provides this informationto kids in the Central Valley.”

In the North Bay Area, AGC participat-ed in the North Coast Builders ExchangeCareers in Construction Expo, held at theSanta Rosa Veterans Memorial Buildingon May 14th. Approximately 1,000students from Sonoma, Lake and Mendo-cino Counties attended the event, wherethe AGC booth was a big hit with studentsand educators alike.

For more information on career days aswell as other construction industry relatedtraining and professional development atAGC visit: www.agc-ca.org.

A student tries out a piece of equipment during the Career Day.

More than 1,200 students from 47 schools participated in the Career Day hosted by Teichert Construction.

Associated General Contractors of California 13THE VOICE OF THE CONSTRUCTION INDUSTRY

Good record keeping is critical forconstruction management, especially inregards to meal and rest periods. Recentlythis has become a hot topic throughoutthe state of California, so here are somesuggestions on what you, the contractor,can do to minimize your risk.

Meal Periods: Provide a meal period ofat least 30 minutes to each employee bythe end of the employee’s fifth hour ofwork and before he starts his sixth hour ofemployment and a second meal period ifhe works more than 10 hours. There is anexception to this second meal period for

up to 12 hours, provided: 1) the employeeagrees to forego this second meal period,and 2) he was given his first meal period.

Rest Periods: Comply with the restperiod requirements in your collectivebargaining agreements that meet the equalprotection requirements of Work Order

16-2001. Should there be no rest periodsin the collective bargaining agreement, theemployer is required to authorize, andpermit, all employees to take a 10 minuterest period as practicable in the middle ofeach four hour period of work. These restperiods can be staggered on an individual

basis to avoid interruption of workflow, orto maintain continuous operations, or theemployer may schedule rest periods tocoincide with breaks in the flow of work.The employer may limit the location ofthe rest period to the employees’ immedi-ate work area.

Record Keeping: The employeesshould individually acknowledge that theytook 30 minute meal period(s) and thatthey took or were authorized or permittedto take a rest period each four hour workperiod. It is also recommended thatemployers maintain a pre-employmentpolicy that outlines when and where mealand rest periods must be taken.

When in doubt please call the AGC’sIndustrial Relations Department North at(925) 827-2422 or AGC Industrial Rela-tions Department South at (626) 608-5800for guidance.

Minimizing Risk through Good Record-Keeping

WWW.AGC-CA.ORG

By Carol Hackler, Contract Administrator, IR Deprtment - South

INDUSTRIAL RELATIONS

It is recommended that employers maintain a pre-employment policy that outlines when and where meal and rest

periods must be taken.

14 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

In this changing economy, constructioncompanies need a competitive advantage.AGC of California has forged partnershipswith a variety of providers in order to deliv-er products and services that save AGCmembers time and money, provide profes-sional expertise, offer solutions to reducerisk and improve productivity. All theseprograms and other offerings are availableon AGC’s website at www.agc-ca.org

Some of the AGC affinity partners andtheir services are briefly highlighted here:

• McGraw Hill Construction – McGraw HillConstruction offersAGC of Californiamembers special pric-

ing on a host of its Network products,including Dodge data for specific geograph-ic regions in California at rates 35 percentoff regular subscription rates. The McGrawHill Construction Network features asimple, easy-to-use online service forprojects and plans; Project DocumentManager to help contractors contract,connect and manage project intelligencethroughout the construction cycle; timelyaccess to projects to beat the competition;and much more.

• SeaBright Insurance Company – Thiscompany has beenendorsed by AGC asthe workers’ compen-sation insurer for itsCalifornia members.

In addition to state-wide coverage,SeaBright offers collectively-bargained

workers' compensation for unioncontractors, owner-controlled andcontractor-controlled insuranceprograms and U.S. Longshore andHarbor workers' compensation foremployees working on the waterfront.SeaBright provides its policyholders withexpert loss control, claims and medicalmanagement services to help themprevent accidents and effectively managetheir insurance costs. SeaBright is ratedA- IX "Excellent" by A.M. Best. AGCmembers receive many unique benefitswhen they insure with SeaBright, includ-ing: a 5% discount; coverage and excep-tional service from a construction insur-ance specialist; competitive pricing basedon each policyholder’s unique exposuresand loss experience; and more.

• AGC Employers’ Health Trust – TheAGC Employers' HealthTrust is a tax exemptemployee benefit plan thatoffers flexibility in acompany’s employee bene-

fit plan. The plans can be customized bychoosing the combination of offeringsthat is best suited to meet an individual

company’s needs and budget. All medicalplans provided comprehensive coverage.Plans include:

• Health Net – Value 40 (HMO) /Value 40 (PPO) / HSA 30 (PPO)

• Western Health Advantage – Premier15 (HMO) / or Advantage 70 (HMO) /2800 HSA Plan (HMO)

• Kaiser Permanente – Pick from $15co-pay/ $20 co-pay / $30 co-pay / $50 co-pay / $30/$1000 Deductible HMO /$0/$1500 Deductible HSA

• Delta Dental – Choose betweenDelta’s Preferred Option Program A(DPO) or DeltaCare Plan 765 (DMO)

• Enterprise Fleet Management – AGCof California andEnterprise FleetManagement (EFM)have partnered

together to offer AGC-CA membersdiscount prices on fleet vehicle services.EFM is a division of Enterprise Rent ACar that manages commercial vehiclefleets for businesses across the UnitedStates. The AGC-CA member discountcan be combined with GM and EFMdiscounts for big savings. Both the EFMdiscounts and GM discounts are on topof manufactures incentives. Discounts onvehicle prices are just one of many bene-fits of this program.

• Online Safety Training – AGC of Cali-fornia and Click-Safety havejoined forces toprovide

members with comprehensive on-linetraining programs to help companiesmeet their training requirements. EachClickSafety training course is designedby environmental health and safetyprofessionals with decades of experience.The management control panel or track-ing system was created by a team ofinformation management specialists,safety professionals, and businessmanagers to be of the highest quality,simple and easy to use. Each ClickSafetytraining course provides employees witha review of knowledge and skills neces-sary to perform their respective worktasks with minimal risk to their healthand safety and the environment. Theseprograms are now available on AGC’swebsite at www.agc-ca.org.

Affinity Partners Deliver Increased Value for AGC Membership

FEATUREWWW.AGC-CA.ORG

"Membership in AGC has provided me with the tools to make it in a very competitive industry,and to

manage the growth of my business.We've gone from a very small company mentored by another AGC member

to an established general contractor working on multimillion dollar jobs.AGC has always been

an important partner in our success." -- Miguel Galarza,President,

Yerba Buena Engineering & Construction

Associated General Contractors of California 15THE VOICE OF THE CONSTRUCTION INDUSTRY

• Verizon Wireless – This program isavailable to eligiblecontractor membersof the AGC of Cali-fornia, who can now

receive exclusive savings and benefits

through a new partnership betweenAGC, National Purchasing Partners(NPP) and Verizon Wireless. This part-nership provides creative solutions that

save contractors time and money. Just afew examples include:

• Account management, ordering andreporting tools

• GPS Field Force Manager tool -provides customizable mobile forms for

data capture in the field – track materi-als, incident reports, job status and audit-ing and more

• Wireless data cards – connect

jobsites to the internet without settingup temporary fixed line connectionfees, access email, data and informa-tion while away from the office.

• Holman HR – AGC and Holman HRhave teamedup to givemembers anadvantage

through use of their on-line humanresources services. Holman HR offerswebsite access to over 100 HR formsand documents that can be down-loaded and customized, employeehandbooks and more. The package ofservices offers members the tools of anHR professional that demand theresources of large company withoutpaying large sums of money.

For over 75 years,REED & GRAHAM INC.has served Contractors & Developers throughout the area.We recently upgraded our facilities in San Jose toensure quality production, convenient to the entire Bay Area from one location. At Reed & Graham, we are committed to providing the right products at the right price...now and in the future.

Past Present Future

Asphalt & Emulsion 800-446-2560✔Base Rock ✔Emulsions-mfg & spread ✔Hot Mix ✔Cold Mix

OverKote 800-446-2560✔Asphalt Pavement Coating ✔Crack Filler ✔Oil Spot Seal

✔Bumper Adhesive ✔Loop Filler

Geosynthetics 888-381-0800Statewide

✔Geosynthetic Fabrics ✔Geogrids ✔Erosion Control ✔Drainage Composites ✔Water Proofing ✔Sediment Control✔Root & Vegetation Control ✔Pipe ✔Containment Liners

✔Porous Pavement ✔Green Roof Component

STATE CONTR. LIC. #158410

verote

Divisions of Reed & Graham, Inc.408-287-1400

For more information email: [email protected] www.rginc.com

REED &GRAHAM

INC.

"My membership in and involvement with AGC has played an integral role in helping me to grow

my business. I have been able to meet people interested in the services I provide and take

advantage of programs and incentives negotiated byAGC on a national level. I recommend joining this prestigious organization as often as I can,

and I am thankful for the benefits my membership provides me on a daily basis."

-- James Beasley,Account Executive,Enterprise Fleet Management

16 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

Katy Allen, Director of Public Works for SanJose, CA presented an Award of SpecialRecognition to general engineering and build-ing contractor Robert A. Bothman, Inc. (RAB)at a San Jose City Hall ceremony duringNational Public Works Week last month.

The award was presented for RAB’s workin delivering the Lake Cunningham RegionalSkate Park to the city three months ahead ofschedule and under the project budget.

At 68,000 square feet, the Lake Cunning-ham Regional Skate Park is the largestpurpose built skate park in California. Itfeatures the longest full pipe, the tallest VertWall in the World and the largest cradle in thenation. In addition the park has 11 bowls andstreet course. The park has also developed acult following on YouTube with many under-ground videos springing up.

The park was designed by ZachWormhoudt to bring the best of the urbanlandscape to a safe and controlled area wereskaters can enjoy the railings, curbs, steps,and tunnels of the City without endangeringthemselves or the general public.

Terry Todd, Senior Project Manager withRAB, said "Our experience in structuralconcrete really lends itself to skate park

construction. We have built several nowand they are a natural extension to ourportfolio. You really have to control quali-ty out there as the skaters can find everyimperfection. This is where our ability toself-perform our work and our focus on aquality project really pay off."

RAB has worked extensively for theCity of San Jose Public Works Departmentand the San Jose Redevelopment agency inits history. In addition to Lake Cunning-ham Regional Skate Park RAB hasconstructed the Guadalupe River Park, SanJose’s signature water front park and manyother projects.

AGC Members Win TRANNY Awards

The California Transportation Foun-dation recently held its 2008 TRANNYAwards luncheon, and several AGC ofCalifornia members took top honors. Theawards were held on June 4 at the Sacra-mento Convention Center.

C.C. Myers, CEO of Rancho Cordova-based C.C. Myers, Inc., was named TRAN-NY'S 2007 Person of the Year, recognizinghis tremendous achievements in Califor-

nia transportation industry.In learning of his selection as Person of

the Year, Myers commented, “C.C. Myers,Inc. is dedicated to providing safe, qualityhighway and bridge work, so I'm acceptingthis award on behalf of all of our employ-ees and subcontractors. And yes, it's true:I like to get the work done quickly!" In2007, the company completed the repair ofOakland's MacArthur Maze in just 17days, 32 days ahead of schedule. Monthslater, over Labor Day weekend, C.C.Myers, Inc. replaced a 350-foot section ofthe east span of the Bay Bridge, finishing11 hours ahead of schedule.

C.C. Myers, Inc. as well as other AGCmember firms were also honored in addi-tional categories, including:

• Major Structure Project Of The Year:Bay Bridge Seismic Retrofit Roll-In – C.C.Myers, Inc; Caltrans District 4

• Freeway Project Of The Year: SR-22Design Build HOV Lane – OCTA, Parsons,Caltrans, the joint-venture, Granite-Myers-Rados (Granite Construction, C.C.Myers, Inc and Steve Rados Construction),Hatch Mott MacDonald, FHWA, URS,PBS&J, RBF.

• Project of the Year: Benicia-MartinezBridge – Kiewit Pacific Company, T.Y. LinInternational, CH2M Hill, FCI Construc-tors, Bay Area Toll Authority, CaltransDistrict 4, and Earth Mechanics

Hensel Phelps Selected forKaiser Project

Kaiser Permanente recently selectedHensel Phelps over eight other generalcontractors for the new Anaheim MedicalCenter project in California.

The selection and initial work autho-rization allows the Hensel Phelps team tobegin preconstruction services for Kaiserto develop the project schedule and targetbudgets. The main project will consist of a434,000-square-foot, six-story hospitalwith 262 beds. In addition, the project willinclude a 30,000-square-foot central utilityplant, a 170,000-square-foot hospitalsupport building, a 1,660-car parkinggarage, and associated site work for the 27-acre campus. Kaiser Permanente will openthe doors for service in April 2013.

MEMBER NEWSWWW.AGC-CA.ORG

Katy Allen, Director of Public Works, San Jose, addresses the crowd at the official opening of the LakeCunningham Regional Skate Park last month.

Robert A. Bothman, Inc. Honored DuringNational Public Works Week

Associated General Contractors of California 17THE VOICE OF THE CONSTRUCTION INDUSTRY

McCarthy Completes SanDiego Project

McCarthy Building Companies, Inc.recently completed construction of a newfive-level, 295,000-square-foot parkingstructure for Sharp Healthcare in theKearny Mesa area of San Diego.

Situated on Sharp Healthcare's 37-acrecampus, the new $13 million parkingstructure is designated for use by the orga-nization's employees. The structure wascompleted within an aggressive timeline ofless than 12 months.

McCarthy led and coordinated thedesign effort for the new Sharp Healthcareparking structure, which features an open

air design. The structure is constructed ofcast-in-place concrete, with five levels ofparking and spaces for approximately1,000 vehicles. The open structure designminimized the fire protection require-ments and contributed to the team's abili-ty to keep the project scope under controland within budget.

The official ribbon-cutting ceremonytook place on Friday, May 30, 25 daysahead of schedule.

Green Building CollaborativeLaunched

A collaboration of three national lead-ers in green building consulting, Swiner-ton Management & Consulting, Simon &Associates, Inc. and BuildingWise LLC,recently launched the Enhanced BuildingPerformance Group (EBPG).

The new collaborative will focus on theexisting building market, assessing thepotential for owners and manager tomaximize the benefits of upgrading theirbuildings to LEED and green standards.The goal is to assist clients in achievingincreased performance, improved returnsand commitment to environmental lead-ership with their existing building projects.

CorrectionEditor’s Note: KeithUlinger, director ofprojects for RobertA. Bothman, Inc.,was misidentified inlast month’s issue.We apologize for theerror. The item isrerun in part below.

Bothman Adds New Directorof Projects

General contractor, Robert A. Both-man, Inc. of San Jose, one of NorthernCalifornia’s leading sports facilitydesign/build contractors, recentlyannounced the appointment of KeithUlinger to the position of Director ofProjects.

Ulinger brings 20 years of construc-tion industry experience to the company.Working previously for Hunt Construc-tion, he was responsible for all aspects ofproject management and client relationson many projects in excess of$100,000,000.

Keith Ulinger

18 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

This August the Menlo Circus Club inAtherton will showcase its newly complet-ed equestrian center, completed by AGCmember contractor W.E. Lyons Construc-tion Co., Oakland, when it holds its annu-al horse show, the oldest such show on theWest Coast. Dating back over 80 years, thisyear’s event is expected to raise over $1million for local charities.

W.E. Lyons successfully completed theapproximately $6 million, 25,000-square-foot center for the exclusive private clubearlier this year under a design-buildcontract. LDA Architects, San Francisco,designed the facility under contract toLyons, which features post and beamconstruction, extensive wood panelinginside and a variety of other high-endfinishes. The project included demolitionof the existing, 80-year-old structure andconstruction of the new facility thatincludes 65 new horse stalls, as well as a

W.E. Lyons ConstructsEquestrian Center

PROJECT SPOTLIGHT SAFETY CORNER

new entry pathway and street lighting,new riding arena, and four acres of sitedevelopment.

Despite various challenges, includ-ing routing and installation of themechanical/electrical/plumbingsystems, the design-build teamcompleted the project under budgetand on schedule, according to W.E.Lyons President Greg Lyons. He notesthat the project illustrates W.E. Lyons’increased presence in the sports facili-ties market sector.

One of the oldest family-owned andmanaged general contracting anddesign-build firms in the Western U.S.,W.E. Lyons has specialized in commer-cial, multi-family, retail, high-tech,manufacturing and industrial construc-tion since it was founded in 1926.

Keeping aWatchful Eyeon SafetyLegislationBy Bo Bradley

There are currently two pieces of worri-some proposed legislation in regards tosafety in construction. The AGC Safety& Health Council and our AdvocateJamie Kahn are keeping a watchful eyeon both of them.

The first proposed legislation is AB354. The purpose of this bill is to requireemployers who do any type of workrelated to lead construction, demolitionor abatement to go through a registra-tion process much like they are requiredto do for asbestos. This bill is currentlyin the inactive file, but may be revived atany time. It would in no way enhancethe safety of workers or the public onlead related work. The bill is sponsoredby an industry group of Asbestos Abate-ment Contractors, not a public agencyor health related organization. If passed,this bill would serve to only complicateand confuse the already extensive safetyregulations that are required when doingany type of lead related work. The AGCof California opposes this bill.

The next piece of legislation is AB1988. AGC of California has signed onwith a concerned group of employersand associations lead by the CaliforniaChamber of Commerce to oppose thisbill as written. This group is diligentlyworking to help make this a working billto the benefit of the industry. We do notbelieve there should be an additionalfiling fee of $250 as is currentlyproposed. The two main issues we areaddressing are the Abatement and theAppeals Process. We are looking at whatwould make the process more efficientand shorten the time of the appealsprocess. We hope to come to a workingresolution soon. The Safety & HealthCouncil will keep you informed as toour progress.

For more information on these orany safety and health related issues,please contact Bo Bradley at (916) 371-2422.

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Tri Counties District Celebrates Student Achievements

WWW.AGC-CA.ORG

Associated General Contractors of California 19THE VOICE OF THE CONSTRUCTION INDUSTRY

REGIONAL NEWS

Dr. Barry Jones, professor in CalPoly’sConstruction Management Program, andCalPoly students who participated in andwon first place at the AGC of America’sNational Competition this springdiscussed their achievement during arecent Tri-Counties District membershipmeeting. The students won first place inthe Heavy-Civil Division of the nationalstudent competition, held during AGC’sNational Convention in Las Vegas thisyear. Dr. Jones and his students discussedthe challenges they faced in winning theaward. Pictured here, Tri-Counties ChairSteve Rarig and Scholarship Chair RandyDouglas stand with Dr. Jones (center withenvelope) and instructor Erik Simon aswell as the CalPoly student team members.

Members of the AGC-Caltrans Safety Task Forcehad a tour May 23 of the San Francisco-OaklandBay Bridge replacement project. Caltrans saysthe replacement of the eastern span of the SanFrancisco-Oakland Bay Bridge will cost $5.4 bil-lion and will be completed in 2013. Pictured, leftto right, are: Tom Walsh with Sully-MillerContracting Co. of Anaheim (and chair of theAGC-Caltrans Safety Task Force); VinceRodriguez, Caltrans HQ Safety Coordinator; andPaul Jefferson, Caltrans project inspector (TheHanna Group).

The graduates of AGC’s 2008 Executive Leadership in Construction Training program are pictured here.Held in April at Pepperdine University, the program for the first time this year awarded participants withthree continuous education units.The program is taught by respected construction industry leaders whooffer real world experiences that participants can relate to.

20 VOLUME 38, NUMBER 7 — JULY 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY

Top 10 Projects AwardsFollowing are the top 10 public project awards California last month, compliments of McGraw-Hill Construction.

Low Bidding General Contractor Project Title Apparent Low Bid Project CityAmount

Desilva Gates CA/DOT Construct Bypass $137,136,260 Lincoln(03-Pla-65-R19.3/R38.3) 033338U4

Archer Western Contractors Alvarado WTP Upgrade/Expansion - $47,339,896 La MesaOzone Project K083904C

USS Cal Builders, Inc. LATTC Building 'A' Restoration and $41,986,000 Los AngelesModernization 17T77100307

Granite Construction CA/DOT Widen to 4 Lane Expressway $39,246,180 Independence(09-Iny-395-R104.6 092144U4

C Overaa & Co Construction Center for the Arts Building - $35,268,000 LivermoreLas Positas 0806

Bayley Construction Mark Keppell High School $33,953,000 AlhambraModernization - Phase 2 1139

J D Diffenbaugh Thermal Sheriff Station and $32,751,507 ThermalProfessional Constructors Aviation Complex

Mallcraft, Inc. Municipal Golf Course BP08314 $32,139,691 West Covina

C Overaa & Co Construction Richmond Advanced Recycled $31,460,000 RichmondExpansion Water SD320

Proven Management Inc Victoria Canal Intake & $30,395,394 Victoria IslandPump Station 105470

Associated General Contractors of California 21THE VOICE OF THE CONSTRUCTION INDUSTRY

Susan Lohwasser’s PhotographyCentral & Southern California

209-966-5402Northern California415-567-7818

w w w.t h e b u i l d e r s a r t .c o m

July 14-18Safety training,“Hazardous Waste Operations andEmergency Response,” at Joshua Casey, Anaheim.

July 16Safety training,“Heat Illness Prevention Compliancefor Employers,” at AGC’s West Covina offices.

July 17Monterey Bay District Barbecue Mixer.

July 18Safety training,“Traffic Control Safety,” at NationalUniversity San Bernardino.

July 21Safety training,“Asbestos Awareness,” at Joshua Casey,Anaheim.Safety training,“8-Hour HAZWOPER Annual Re-fresher,” at Joshua Casey, Anaheim.

July 23Safety training,“Asbestos 16-Hour Operations andMaintenance,” at National University, San Bernardino.

July 24Los Angeles, Orange County, Riverside-San Bernardino Districts and CFMA Seafood Dinner on the Hornblower, Newport Beach.Safety training,“Medic First AidTM Version 6.0,” atJoshua Casey, Anahiem.

July 28Safety training,“Lead Awareness Training,” at NationalUniversity.

August 4Training,“An Introduction to BIM,” at DynalectricLos Angeles, Los Alamitos.

August 5Safety training,“Medic First AidTM Version 6.0,” atJoshua Casey, Anahiem.

August 11Safety training,“Hazardous Waste Operations andEmergency Response,” at Joshua Casey, Anaheim.Training,“BIM Coordination,” at Dynalectric Los An-geles, Los Alamitos.Safety training,“Asbestos 16-Hour Operations andMaintenance,” at Joshua Casey, Anaheim.

August 18Safety training,“Asbestos Awareness,” at Joshua Casey,Anaheim.Safety training,“8-Hour HAZWOPER Annual Re-fresher,” at Joshua Casey, Anaheim.

August 21Safety training,“Medic First AidTM Version 6.0,” atJoshua Casey, Anahiem.California Construction Expo 2008 at the L.A. Con-vention Center, Los Angeles

August 25Training,“NavisWorks Coordination,” at DynalectricLos Angeles, Los Alamitos.Safety training,“Lead Awareness Training,” at NationalUniversity, San Bernardino.

August 28San Joaquin District training,“Stormwater Pollution Prevention,” at the Fresno MetropolitanFlood, Fresno.

CALENDAR OF EVENTS

Associated General Contractors of California 23THE VOICE OF THE CONSTRUCTION INDUSTRY

As part of its “Heart Hats” communityoutreach program, project team membersof McCarthy Building Companies, Inc.recently staged a “nuts and bolts”construction training session along with aguided tour of the $260 million RadyChildren's Hospital Acute Care Pavilionconstruction site for a local San Diegotroop of 10-year-old Boy Scouts seeking toearn their engineering badges.

The Boy Scout troop began with anorientation and Q&A session in theconference room of McCarthy's onsiteconstruction trailer, before going on tostudy construction drawings and a 3-Dmodel in the planning room. The boyslearned firsthand from McCarthy repre-sentatives how such a grand project goesfrom construction drawings to actualcompletion.

From there, the Boy Scouts and theirparental guardians suited up in hard hats,vests and safety glasses and proceeded ona guided tour of the actual constructionsite, where they were given a behind-the-

scenes peek of the new Acute Care Pavil-ion coming out of the ground. The BoyScouts were able to view the skeletalframe of the four-story structure – eleva-tor shafts and all – and learn what willmake this project “green.”

"It was gratifying to experience thewonder and excitement of these young,eager-to-learn Boy Scouts," said Steve VanDyke, Senior Project Manager forMcCarthy, who spearheaded the commu-nity outreach event. "It was a goodopportunity for us to expose youngpeople to the types of jobs available in theconstruction industry, should theychoose this career path later on."

Situated on a 148,650-square-foot siteat the southeast end of the Children’sHospital campus at 3020 Children's Wayin the Kearny Mesa area of San Diego, thenew state-of-the-art Acute Care Pavilionwill house a surgical center with 16 operat-ing rooms, 80 private patient rooms, anew-natal intensive care unit and a cancercenter. Slated for completion in 2010, the

building is striving for LEED certification.The McCarthy “Heart Hats” community

involvement program is dedicated to encour-aging, supporting and recognizing McCarthyemployees' volunteer efforts in a variety ofcauses to ensure real needs are being met incommunities where employees work, live andplay. Some of the past recipients of McCarthyHeart Hats efforts in Southern Californiainclude American Heart Association, RonaldMcDonald House Charities, Children’sHospital of Orange County, Kaiser Vallejo

Hospital Community Clean-Up, Ocean Insti-tute, Olive Crest Homes and Services forAbused Children, the Salesian Boys and Girl’sClub, the Salvation Army transitional hous-ing Nancy Painter Home, and the San DiegoChildren’s Hospital and Health Center. Inaddition to recognizing outstanding employ-ee volunteers and providing a companywidepaid volunteer day, McCarthy “Heart Hats”donates countless hours of in-kind servicesand monetary contributions to improvecommunities each year.

Editor’s Note: This new “Contractor’sOutreach” feature is designed to spotlight theways AGC member contractors are giving backto their local communities. If your company hasa community service project or program thatyou think is noteworthy, please contact theeditor at [email protected].

Troop Visits $260 Million Rady Children’s Hospital Construction Site in San Diego

WWW.AGC-CA.ORGCONTRACTOR OUTREACH

The McCarthy “HeartHats”community

involvement program isdedicated to encouraging,supporting and recognizing

McCarthy employees'volunteer efforts in a variety

of causes to ensure realneeds are being met in

communities whereemployees work, live

and play.

McCarthy’s ‘Heart Hats’ Outreach ProgramStages Training and Tour for Boy Scouts