The Associated General Contractors of America, San Diego Chapter, Inc.

November 18, 2019 The VOICE of Construction

In This Issue

Groundbreaking Ceremony Complete!

City set to Launch Disparity Study

92nd Annual Meeting - Dec. 17

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The AGC Board of Directors and

the AGC staff welcome the following new members.

Groundbreaking Ceremony Complete! AGC East County Headquarters and Apprenticeship Training Center is Under Construction... Eddie Sprecco, CEO On a sunny fall day in Lakeside, the AGC Board of Directors and AGC Apprenticeship Training Trustees, broke ground on the future home of AGC in front of 200-plus contractors and community members from across the region.

At Thursday's ceremony, 2019 AGC Board President, Steve Friar, thanked past Presidents Eric Stenman (2017) and Jeff Harper (2018) for their key contributions in taking this project from concept to reality. He also recapped the obstacles faced in the planning process and major progress made in 2019 to break ground this year. Many had a hand in getting to this important milestone - and many more will be thanked when it is time to cut the ribbon! AGC Apprenticeship Trust Chair Thomas L. Brown spoke about the importance of the new training center to the construction industry, and to the greater San Diego region. These comments were reiterated by Supervisor Dianne Jacob who noted the need for highly skilled workers to build the regions infrastructure and the importance to residents of her district - construction provides well paying, fulfilling careers that often don't require a four-year degree and accompanying debt.

AGC's Motto: "It's Good Business to do

Business with an AGC Member."

Board Member Mike Furby thanked Supervisor Jacob for supporting the industry during her time in office, and for the River Park plan that balances the need for Commercial and Industrial centers with open space and community parks. The location on Riverford Road in Lakeside is in the center of a growing construction industry hub that stretches across East County. Mike also thanked his father, Jim Furby, for recognizing the importance of AGC to the region and for his contributions to the project. Lisa Anderson, Chair of the Lakeside Chamber of Commerce welcomed AGC to the community as their newest member. Doug Barnhart, on behalf of project General Contractor Barnhart-Reese Construction, presented an Engraved Ceremonial Shovel to AGC noting the Groundbreaking Date of November 14, 2019. After donning their ceremonial hard hats, Board members and Trustees put gold shovels in the ground, officially kicking off the project. Following the ceremony, attendees walked next door to a reception hosted by Marathon Construction, RDO Equipment, and AGC Apprenticeship Trust. While there is much more work to be done, Thursday was a big day for the future of the construction industry in San Diego. Thank you to all who attended and contributed to this effort - can't wait to see you in summer of 2020 for the ribbon cutting!

City of San Diego Set to Launch Disparity Study Mike McManus, Director of Engineering Construction & Industry Relations

Last week, the San Diego City Council voted to select a consultant to launch a Disparity Study. BBC Research will be awarded a $500,000 consultant contract to do the study which is expected to launch this spring and is scheduled to be completed by the summer of 2021. The study is intended to validate, or not, that the City provides equal opportunities to women and minorities in employment, contracting, and public works projects.

BBC is considered one of the top disparity study firms in the nation. BBC has completed nearly 80 disparity studies for cities, states, government agencies, and other entities all across the country. They have also provided expert testimony related to disparity studies, minority- and woman-owned business programs, and the Federal DBE Program on several different occasions, most recently as part of the defense of the California Department of Transportation's (Caltrans) implementation of the Federal DBE Program-which was based in large part on a 2007 BBC disparity study-in Associated General Contractors of America, San Diego Chapter v. California Department of Transportation.

One of the controversial elements of the usual disparity study methodology is the question of determining availability of minority and women owned firms. For projects that are federally funded by the USDOT, various court cases say that the standard is to establish that there is statistical evidence of under-utilization of minority firms by an agency, plus there must be anecdotal data of race or gender-based barriers to full and fair participation. Then the remedies must be narrowly tailored, so the remedy fits

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the evidence. Most recent disparity studies use Census data to determine the number of women and minority owned contractors in a market area, and then compare that data to prime contracts awarded by the agency and sub-contracts utilized on those projects.

In California, there is an additional element that local agencies, like the City of San Diego, must consider which would be Proposition 209. Prop. 209 was a 1996 referendum that prohibits discrimination and effectively banned the use of race or gender-based goals in government funded employment, contracting or college admissions, unless that jeopardizes the receipt of federal funds. Thus, federally funded projects may have race or gender-based goals, but state or locally funded projects are prohibited in California from using the very same goals. The City staff seems to fully recognize this as they affirmed at Council that the study will be "Prop. 209 compliant."

AGC went on the record with some of the factors we believe should be considered by the City as they move forward with this study. It is important that the consultant be able to draw a distinction between being a licensed contractor and being a potential City contractor. This requires a careful determination about which specific contractors are "ready, willing, and able" to bid on City projects. Our suggestion is that the study evaluates contractors and subcontractors based on four basic requirements to meet the "ready, willing, and able" test beyond having the proper license:

• Bonding capacity • Experienced personnel who can comply with prevailing

wage laws • Substantial documentation of bidding or providing

quotes on past City projects • Meets the City's pre-qualification requirements for

bidding on City work

It is instructive to look back at what Prop. 209 was intended to remedy and then what has happened since. Prior to the passage of Proposition 209, a California statute mandated that general contractors demonstrate a good faith effort to subcontract at least 5% of their work on public contracts to woman-owned firms (WBEs), 15% to minority- owned firms (MBEs) and 3% to disabled veteran-owned businesses. Moreover, bids submitted by MBEs and WBEs were granted a 10% reduction when measured against bids from companies owned by white men. Since the passage of Proposition 209, the California Supreme Court has struck down attempts by municipalities to consider race or gender in their procurement programs. As common sense would dictate in a highly competitive industry like construction, with race or gender preferences no longer in effect, the number of MBEs and WBEs certified to bid on public

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contracts has declined according to several studies. Opponents of Proposition 209 insist that this amounts to "unfair access," and is due to continued discrimination within the construction industry. The other view is that price matters in a low bid proposition like a public works project. We would expect a difference in this competitive environment with high risk and low margins. Losing a 10% advantage would be a major factor in further participation in bidding. The burden of proof is on the City to demonstrate that racial, ethnic, or gender discrimination is occurring in the industry. A disparity study alone does not prove discrimination, as no "group" is ever likely to own any particular kind of business in the same proportion as its share of a region's population.

AGC San Diego Chapter's 92nd Annual Meeting Steve Friar, Hensel Phelps, AGC 2019 President It's hard to believe, but the holidays are now upon us, and as 2019 is nearing an end all eyes are looking ahead to see what 2020 has in store. As we close the year, we invite you to the Chapter's 92nd Annual Meeting on Tuesday, December 17, from 11:30 a.m. - 1:30 p.m. at the Hilton San Diego on Mission Bay (1775 East Mission Bay Drive, San Diego, CA 92109). 2019 was a busy year, a very good year for the construction industry, and a productive year for your Association - outcomes made possible by the active involvement of the 1100 members of AGC San Diego. At the Annual Meeting "Active Members" have the important task of electing individuals to fill open seats on the Board of Directors. Year round, this elected AGC leadership makes decisions on your behalf that influence local infrastructure funding, industry practices, public policy, and politics.

"Active" members are defined in the Bylaws as General Contractors (Building and Engineering) and Contractor members. Contractor members are Subcontractors that participate in one of AGC's major programs (health,

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apprenticeship, pension, etc.), and pay local dues that are equal to the dues paid by the General Contractors. While Specialty and Affiliate members will not be able to vote, the Board is convinced that sharing the valuable information about the association with the entire membership is important. In addition to the election of members to the Board of Directors, AGC San Diego CEO, Eddie Sprecco, will present the AGC's 2019 Annual Report, detailing the activities and finances of the AGC. This will include acknowledging our dedicated members who are the backbone of the San Diego chapter; our chairmen and chairwomen who head up the many AGC committees. Your involvement is critical, and the Annual Report will detail how valuable member resources are working for you. We encourage all AGC firms to take a couple of hours out of your schedule on December 17 to attend this final meeting of the year.

AGC Members STEP up to donate Thanksgiving items for STEP (Support the Enlisted Project) Contributed by Build & Serve Committee Members: Jodie Taylor, Career Construction and Elizabeth Tague, Sundt Construction By Jodie Taylor: The military community is near and dear to me, with my husband being in the U.S. Navy for the last 19 years, and his brother and uncles in the Marine Corps. As a member of the AGC's Build and Serve Charitable Alliance, I have been able to

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Please notify AGC if your company has relocated, or if there are updates to your company's listing (i.e. contacts, phone/fax, job titles, CSI codes, & certified business listings). Email Marcy Knopman

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San Diego, CA 92121 (858) 558-7444

create a partnership with STEP (Support the Enlisted Project) for its recent food drive. We were able to collect and donate non-perishable items for more than 50 Thanksgiving meals for military families living below the poverty line in San Diego. These food items will be put together with a turkey (donated by a local college professor), bagged up to create a full meal, and distributed to military families in need on Wednesday, November 20. Not only does this allow military families to enjoy a nice meal as a family that they may not be able to afford, but also allows them to create unforgettable memories together. STEP is dedicated to building financial self-sufficiency for active duty military families or transitioning veterans through their EFA (Emergency Financial Assistance) Program. Over 60% of US military families fall below the poverty line. Since 2012, STEP has awarded over $1.7m in grants to more than 4919 military families. I'd like to thank all of our AGC members that collected and donated items for the food drive and a special mention to those who assisted in the delivery to the STEP office. The items will be distributed to families in need at the STEP office (9951 Businesspark Ave. Suite A San Diego, CA 92131) on Wednesday, November 20 between 10 a.m. and 1 p.m., and volunteers are needed to assist in this distribution. Please contact Jodie Taylor via email jodie@career-construction.com if you are interested in volunteering.

By Elizabeth Tague: To help with this effort, Sundt came together and collected non-perishable items to donate for STEP'S program in spirit of the Thanksgiving holiday, and even more so, as a gratitude to our military families for all they have done. I want to give a huge shout out and thank you to Edwin Cartagena as he was a key proponent for getting individuals on the San Diego Airport project rallied up to donate! I also want to thank Daniel Sahagun and Matt Herring for helping deliver the abundance (two truckloads) of non-perishable items we received! We came together to support this effort, and I would like to say thank you so much to all of those at Sundt who contributed and our subcontractors who participated as well: Bergelectric, Countywide, CTE, Facility Builders, Sundt Building Group, Sundt Concrete, and Sundt Transportation.

CLASSES

November Classes Nov 19 Nov 20 Nov 20 Nov 25

Advanced Microsoft Workshop CPR, First Aid & AED Training Effective Project Engineer Fall Protection 8-Hour Refresher

December Classes Dec 2 Dec 2-4 Dec 3 Dec 3 Dec 4 Dec 5 Dec 5 Dec 9-11 Dec 9-11

Beginning Microsoft Excel 2016 LEAN Construction Intermediate Microsoft Excel 2016 Stormwater Monthly Breakfast Forum Advanced Microsoft Excel 2016 Forklift 4 Hour Training Construction Law: Scheduling Impact Claims Estimating Civil Construction Fall Protection 24-Hour Training

Dec 9 Dec 11-12 Dec 11 Dec 12-13 Dec 12 Dec 16-19 Dec 16-17 Dec 17 Dec 18

OSHA Record Keeping CQM Foreman & Superintendent Boot Camp Blueprint Reading for Construction Preventing Sexual & Other Harassment OSHA 30-Hour Training LEAN Construction Flagger 4-Hour Training CPR, First Aid, & AED Training

For more information on classes, contact: Becca Schaffer at (858) 731-8155.

July - Dec 2019

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COMMITTEE MEETINGS Meetings are held at the AGC office (6212 Ferris Square, San Diego, CA 92121) unless otherwise noted in red.

November Meetings Nov. 19 Nov. 20 Nov. 21

2:00 p.m. 11:30 a.m 1:30 p.m.

Construction Leadership Council (CLC) (Job Walk) Specialty Contractors' Council (offsite) County of San Diego Meeting @ County

December Meetings Dec. 4 Dec. 4 Dec. 11 Dec. 13

7:00 a.m. 7:00 a.m. 11:15 a.m. 12:00 p.m.

Safety Meeting Public Building Airport Authority @ Airport Facility Technology Committee

About Monday Morning Quarterback AGC San Diego Chapter's Monday Morning Quarterback is a "hot off the press" and to the point Monday morning briefing on the important issues facing San Diego's construction industry. It is prepared by AGC Chief Executive Officer, Eddie Sprecco, and Executive Vice President, Brad Barnum.

Please contact Eddie Sprecco or Brad Barnum with your comments, or with information that should be conveyed to the industry through this service. Well over 3,000 individuals employed by AGC member firms are part of this system.

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The Associated General Contractors of America San Diego Chapter, Inc.

6212 Ferris Square, San Diego, CA 92121 | Phone (858) 558-7444 | Fax (858) 558-8444 www.agcsd.org

The VOICE of Construction