ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can...

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Spring 2008 • A Publication of the Alabama Road Builders’ Association Spring 2008 • A Publication of the Alabama Road Builders’ Association Spring 2008 A Publication of the Alabama Road BuildersAssociation ROADBUILDER THE ALABAMA Also: ARTBA Special Report Construction Material Price Inflation Member Profile: Reed Contracting Services, Inc. Legislative Preview

Transcript of ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can...

Page 1: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

Spring 2008 • A Publication of the Alabama Road Builders’ AssociationSpring 2008 • A Publication of the Alabama Road Builders’ AssociationSpring 2008 • A Publication of the Alabama Road Builders’ Association

ROADBUILDERTHE ALABAMA

Also:

ARTBA Special Report

Construction Material Price Inflation

Member Profile: Reed Contracting Services, Inc.

Legislative Preview

Page 2: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

Travel to Mexico with ARBA and discover the Hilton Los Cabos Beach & Golf Resort. Located between San Jose del Cabo and Cabo San Lucas, this recipient of the AAA four-diamond award provides a desirable locale for the 2008 ARBA Convention in Mexico.

Situated on the southernmost tip of the Baja Peninsula on the Sea of Cortez, Hilton Los Cabos Beach & Golf Resort boasts the only swimmable beach in the area, water sports activities, shopping and stunning 18-hole championship golf courses nearby.

Also available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach.

The Hilton Beach and Golf ResortSan Jose del Cabo, MexicoJune 4–8, 2008 Hilton

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Join us on the shores of the Baja Peninsula at the2008 ARBA Convention

For more information call ARBA at 334-832-4331.

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Page 3: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

EQUIPMENT.SUPPORT.SOLUTIONS.

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Page 5: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 5

ROADBUILDERSpring 2008 • A Publication of the Alabama Road Builders’ Association

THE ALABAMA

CONTENTSExecutive Director’s Message ...................................7

President’s Message ..................................................9

From the Alabama Department of Transportation ................................11

Legislative Preview 2008 ........................................ 13

Construction Material Price Inflation .................. 16

ARTBA’s SAFETEA-LUReauthorization Plan ............................................. 19

ARTBA Special Report ........................................20

Member Profile:Reed Contracting Services, Inc. ..........................23

Heard Along the Highway . ..................................25

Index to Advertisers ..............................................26

Advertisers.com ....................................................26

ARBA OFFICERS, DIRECTORS & STAFF

PresidentGREG ABRAMSON

Vice PresidentST (SONNY) BUNN, JR.

TreasurerSHERMAN SUITTS

SecretaryMICHAEL H. MCCARTNEY, II

Immediate Past PresidentTIM MULLENDORE

Directors 2007-2008KEITH ANDREWSRANDY BILLINGSLEYTERRY BUNNRANDY BUTLERBOB DAWSONCRAIG FLEMINGJOHN FULLERLEE GROSSJOHN HARPERMITCHELL HARRISRON JACKSONDAVE JONESKEITH (TAC) MIMSJOHN E. MURPHY, IIICHRIS NEWELLDAVID REEDIKE SCOTTPAUL B. SCOTT, JR.JIM WAITZMAN, JR.JOHN G. WALTONNORMAN WALTONCHARLES E. WATTS, JR.

Published for:Alabama Road Builders Association630 Adams AvenueMontgomery, AL 36104(334) 832-4331Fax: (334) 265-4931www.alrba.org

STAFF

EXECUTIVE DIRECTORBILLY [email protected]

COMMUNICATIONS DIRECTORTERRI [email protected]

ADMINISTRATIVE ASSISTANTSHIRLEY [email protected]

Published by:

Naylor, LLC5950 N.W. 1st PlaceGainesville, FL 32607(352) 332-1252 or(800) 369-6220Fax: (352) 331-3525www.naylor.com

PUBLISHERKathleen Gardner

EDITORJulie Bancroft

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PUBLICATION DIRECTORRick Sauers

ADVERTISING SALESSusan Maracle, Beau Merrifield,Rick Sauers, Mark Tumarkin

MARKETING ASSOCIATEAlex Scovil

LAYOUT AND DESIGNDeb Churchill Basso

ADVERTISING ARTDana Marleau

©2008 Naylor, LLC. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

PUBLISHED MARCH 2008/ALR-Q0108/7075

Page 6: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

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Page 7: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 7

EXECUTIVE DIRECTOR’S MESSAGE

TOLLS NOT THE ONLY ANSWERBY BILLY NORRELLARBA EXECUTIVE DIRECTOR

GOV. BOB RILEY stated many times over the past year that he was instructing his Department of Transportation to identify a number of high-prior-ity infrastructure projects that could be paid for by charging tolls for traveling on or over those specifi c structures. That list is now public and includes some much-needed recommendations that are critical to particular regions of our state.

This is indeed an innovative way of thinking for Alabama to consider, and it is one that can be help-ful when desiring to expeditiously complete a proj-ect that might not otherwise occur—or at least take considerably longer when fi nanced and constructed through traditional methods. The transportation con-struction industry will eagerly partner with the state to build, through the competitive bid process, these projects. But concern still exists about where the much-needed revenues will come from to take care of the rest of the state not identifi ed in those specifi c regions.

Although we are not talking about it here in Ala-bama, converting existing infrastructure into a toll road has become popular in many parts of the coun-try. Foreign companies are entering into partner-ships with states to purchase existing infrastructure and convert those roads to toll-driven throughways in exchange for a windfall of cash. Gov. Riley has stat-ed he has no intention of converting existing roads to toll roads. Only new construction is being considered for tolling.

Today, on the verge of becoming a gridlocked state, Alabama faces a challenge that demands a sim-ilarly bold imagination and a willingness to invest in

our transportation system. The need is dire. Federal, state and local budgets are coming up $45 billion short annually throughout the nation on what are the necessary investments just to maintain current high-way conditions. The August 2007 bridge collapse in Minnesota is just one example of our nation’s infra-structure vulnerability.

Congress will soon begin holding hearings in preparation for the next six-year highway-transit investment bill, which is due in 2009. Groups such as the U.S. Chamber of Commerce and the congres-sionally mandated National Surface Transportation Policy and Revenue Study Commission are recom-mending increases in federal gasoline taxes. This is a special opportunity to put forward a new vision and approach for Alabama’s transportation network.

It is imperative to protect and preserve our exist-ing infrastructure. This is a fundamental govern-ment responsibility. Investments now are necessary to shore up an ailing road and bridge network. This can and should be improved by raising the state gas tax, which has not been increased in more than 15 years. Tolling, public-private partnerships and other user fees are also part of the solution.

To brace for the deluge of freight traffi c on Ala-bama’s roads that has been predicted from the Univer-sity of Alabama-Huntsville in its report Transportation Infrastructure in Alabama, and reaffi rmed through the work of the speaker of the House’s Infrastruc-ture Committee, we need to prepare for tomorrow. The Federal Highway Administration says America is in the early stages of a “freight bottleneck” capac-ity crisis. The agency reports more than 200 freight

Doing nothing to address the transportation challenges at hand would be the costliest approach of all.

Better roads mean better jobs and better lives.

Page 8: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

8 The Alabama Roadbuilder • Spring 2008

Alabama District • 1-800-292-4013

bottlenecks cost the trucking industry $8 billion in economic losses annually and 243 million hours of delay each year. The challenge becomes greater with truck traffi c expected to double in the next 25 years.

North Carolina recently adjusted its indexed (to the cost of wholesale fuel prices) gasoline tax rates to 30.15 cents per gallon. A recent article in the Charlotte News & Observer noted that fuel prices had exceeded $3 per gallon. Alabama’s tax rate is 18 cents per gal-

lon, but the per gallon cost is almost identical to that of North Carolina. Georgia’s fuel tax rate is only 7.5 cents per gallon (with a sales tax on top of that), but their per gallon costs mirror their Southeastern neighbors at the $3 per gallon mark. Another reminder that at a time when gasoline prices can fl uc-tuate a nickel between breakfast and lunch, the fuel tax rate has little impact on the price you pay at the pump.

The Alabama Road Builders Asso-ciation has an innovative plan to pre- pare our road and bridge systems for

the future. Indexing Alabama’s motor fuel and gasoline tax rate to the con-struction material cost would ensure that expenses keep up with the rising cost of the materials used in construct-ing and maintaining our infrastructure. Collecting fuel taxes at the terminal allows fewer opportunities for fuel tax evasion. And continuing to replace our aging and obsolete county bridges, while allowing the counties who have met their bridge needs to use those pro-ceeds for resurfacing those same county roads, will make our rural roads safer.

ALDOT Director Joe McInnes said it best. “Funding will need to be addressed in some fashion or we will become a maintenance agency. I wish we could do more, but we are strug-gling with funding.”

Why we have such congestion is no mystery. Since 1982, the U.S. popu-lation has grown nearly 30 percent and auto and truck traffi c has almost doubled while new highway capacity has grown just 6.6 percent. The cost to build highways has increased 43 percent since the beginning of 2004. Doing nothing to address the transpor-tation challenges at hand would be the costliest approach of all. Better roads mean better jobs and better lives. The status quo is no solution.

The Alabama Road Builders As-sociation, founded in 1947 and based in Montgomery, is the only Alabama association that exclusively represents the collective interests of all sectors of Alabama’s transportation construc-tion industry. Alabama’s transportation construction industry generates more than $3.5 billion in economic activity annually and provides employment for more than 36,500 Alabamians. ❏

It is imperative to protect and preserve our existing

infrastructure. This is a fundamental government

responsibility.

Page 9: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 9

PRESIDENT’S MESSAGE

ALABAMA NEEDS YOUR SUPPORTBY GREG ABRAMSONARBA PRESIDENT

YOUR ALABAMA ROAD BUILDERS ASSO-CIATION has another ambitious agenda for the coming legislative session. With efforts to index Alabama’s gasoline and motor fuel taxes to mate-rial price infl ationary indicators, promote a county bridge bond issue, relieve our contractor members from the liability nightmares that have long plagued our industry, and offer our heavy equipment dealers some additional contract protections, needless to say the plate is full.

These are just some of the bills we will be address-ing in the coming session. While we are out there protecting you, our members, by watching and pro-moting legislation that is good for our industry and defeating legislation that is harmful, we hope you are out promoting our industry and all that ARBA does for all the citizens of this great state. Never be ashamed to toot your own horn.

Our members provide a quality of life to all resi-dents that often goes overlooked and underappreci-ated. From the beginning of our organization, ARBA has sought to provide the best quality product possi-ble for all Alabamians. Today, it is no different. From every aspect of our industry, ARBA members pro-

vide services to the entire state that protect the safety of the traveling public, relieve congestion issues and improve the overall living experience enjoyed by all who reside here.

However, the ability to continue to perform these tasks is at risk. Revenues are diminishing for your road and bridge fund. Increased material costs, a diminishing amount of revenue, lawsuit expenses and fund diversions are threatening the very exis-tence of our industry. We are asking the Legislature to address this issue now rather than later, so we can continue to provide the services we have all come to expect and appreciate as Alabamians. We need your help to remind your elected offi cial friends about the importance of this issue.

Please take the time to contact your local House and Senate members and ask them to support the ARBA indexing legislation. Your contact could be the key vote we need to get this done during this session. If you have questions, you can always call me or the association office in Montgomery for information. We need your continued support and appreciate all you do for us. As the ARBA family, we can do great things if we all work together. ❏

From the beginning of our organization, ARBA has sought to provide the best quality product possible for all Alabamians.

Today, it is no different.

Page 10: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

10 The Alabama Roadbuilder • Spring 2008

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Gulf Coast Asphalt Co., LLC (GCAC) is a limited

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Page 11: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 11

FROM THE ALABAMA DEPARTMENT OF TRANSPORTATION

FUNDING PROPOSALS EXPECTED IN ’08 SESSIONBY JOE MCINNESTRANSPORTATION DIRECTOR, ALDOT

WHILE WE AT THE Department of Transporta-tion continue to seek effi ciencies in every facet of our operations, set priorities based on needs and safety, and look at innovative funding approaches, there are, at this writing, several proposals in the Alabama Leg-islature to generate new funding for transportation.

Other states are grappling with similar issues. All states have been affected by increased costs for con-crete, steel, asphalt and labor, with Alabama seeing an increase of about 40 percent for these categories since 2003. Rescissions of our federal dollars con-tinue to wreak havoc with our planning.

In Alabama, we continue to seek maximum effi -ciencies and to watch every dollar every day. Orga-nizationally, we have streamlined about as much as possible, and we just achieved our third perfect prop-erty audit accounting for more than 33,000 pieces of equipment valued at more than $300 million. This is a rare achievement in state government. Deborah Clark and Mike Elmore from our Equipment Bureau deserve much of the credit for this outstanding work. Additionally, we have operated for the past fi ve years using an unprecedented practice of setting priorities based on safety and needs versus wants instead of politically motivated decision making. Still, we have been criticized by some who feel they are not getting their fair share of our limited transportation dollars.

Several funding proposals are expected during the 2008 legislative session. Among them are proposals for raising the state gasoline tax, creating an index on the existing gasoline tax and creating a new bridge program similar to the program that replaced about 600 local bridges a few years ago. These proposals are not without merit, but it remains uncertain if any

can gain passage. The result may be that we continue to operate with existing funding sources, continued backlogs in resurfacing, and the potential for a reduc-tion in some programs and services.

Already this year we are seeing some of our sister states push for increased state gasoline taxes. In Idaho, where the current tax per gallon is 25 cents (set in 1996), the Legislature is being asked to increase the per gal-lon tax by as much as 10 cents. The Atlanta Journal-Constitution reports that a diverse grassroots coalition of about 50 organizations in Georgia is calling for new funding, with the proponents showing fl exibility for how an increase might be implemented—including transit funding and regionalized sales taxes.

In Alabama, and other states, public-private part-nerships and state-initiated toll projects are being studied to determine to what extent tolls can pay the debt service associated with fi nancing major new capacity projects. ALDOT is supporting a modest change to our existing toll statutes to accommodate new funding opportunities. The reality is that toll-funded construction is not the answer to all our fund-ing issues; it merely has the potential as a niche within our changing industry. U.S. Transportation Secretary Mary Peters made a rare visit to Alabama in January to meet with Gov. Riley and ALDOT offi cials to sup-port this innovative concept.

These and other issues, including the fi fth attempt to create a Transportation Commission, will be con-sidered by the Alabama Legislature in its current session. Like many of you, we will watch with great interest and we hope you will join us in efforts to make Alabama and this state’s transportation indus-try better. ❏

Page 12: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

12 The Alabama Roadbuilder • Spring 2008

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Also in Stock: Safety Vests, Flags, Pavement Tape, Stripping and Marking Tape, Refl ective Cone Collars, Sign Hardware, Refl ective Tapes, Emergency Warning Lights and Sign Posts.

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Responsible Being responsible isn’t something we take lightly. It’s actually the motivating forcebehind everything we do. Our goal is to provide quality products, every delivery, every day, and to faithfullystrengthen the relationships we have with the people and communities where our facilities are located.

Committed We’re especially committed to providing our employees with a safe work environmentand our safety record ranks among the best in our industry. We also go to great lengths to protect our nation’snatural resources. Working closely with the Wildlife Habitat Council, we’ve helped many of our properties becomecertifi ed wildlife habitats.

Neighbor As a good neighbor, we help build stronger communities. Each years thousands of studentslearn about geology and earth science in our “open air classrooms.” We supportlocal education projects across the country, fromadopt-a-school programs to adult literacy eff orts.We sponsor scholarships, fund libraries and parksand build playgrounds, nature trails, fi sh pondsand butterfl y gardens.

Vulcan Materials Company, a responsibleneighbor, committed to operationalexcellence in all that we do.

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YOURCONCRETEREINFORCING SOURCE…for reliability and expertprofessional service inreinforcing bars. We’ve beenserving the Alabama highwayindustry for over 40 years.Ed Boone - Marcus Capps.

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Page 13: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 13

LEGISLATIVE

ARBA Projects Another Productive Sessions we prepare for the start of the 2008 regular legislative session on Feb. 2, your association has

spent a busy off-season preparing for the push of an ambitious legislative agenda highlighted

by the need for additional transportation funding. No one knows for sure what all can be

accomplished, but despite the differences that may be in place, the one thing that your industry can take

comfort in is that every one of Alabama’s elected officials wants a healthy and successful road system

in their district. Whether it is protecting those funds that provide the lifeblood for Alabama’s highway

program or working to raise additional funds to continue the much-needed growth in our construction

program, your association will be working with all members of the Legislature.

The centerpiece of the ARBA legis-lative package is our user fee indexing legislation sponsored by Rep. Mac Gip-son, R–Prattville, which would annually adjust the state fuel tax rates to keep up with material cost increases. Work has been underway for some time to estab-lish support for and educate legislators about this effort, and we are hopeful the session will bring about successful results. The legislation would also allow local county user fees to be adjusted by vote of the county commissions in an attempt to assist in transit efforts in the state’s metropolitan areas. If our state is to continue the recent economic growth trend it has enjoyed, its infrastructure must be prepared to address those ever-growing needs, and that requires more state road revenue.

A county bridge bond issue is also being proposed in an effort to continue the work that went on from 2000-2005 through the Garvee bond program and was so successful for the industry. In addition, a heavy equipment dealer protection bill will be proposed to pro-vide our equipment dealers in the state protection from one-sided contractual negotiations.

Legislative Preview

Legislation to restore the sales tax exemption on construction materials will be pursued once again. In addition, a bill will again be introduced to limit liability for contractors while projects are under construction. While we will be fending off almost certain assaults on road and bridge funds, here are some of the other issues we expect to address during the coming months.

Legislation is again being fi ne-tuned to change the collection of the fuel tax to the terminal point in an attempt to capture any fuel tax revenues that might go uncol-lected. Thanks to the hard work of the Alabama Commission on Infrastructure, a group of statewide leaders assembled and led by Speaker of the House Seth Hammett, once again many transporta-tion related issues will receive immediate consideration this session. Speaker Ham-mett has expressed serious interest in the creation of a Transportation Oversight Commission, as well as moving respon-sibilities for railroads and waterways over to ALDOT. An effort to create public/pri-vate partnerships (tolls) to address infra-structure needs will also be debated.

Other legislation to look for includes the use of road and bridge funds for

things other than their intended pur-pose—maintaining Alabama’s roads and bridges—and use in such areas as pub-lic transit. While we are not opposed to mass transit, we have always believed that local support should be responsible for supporting such efforts.

In addition, efforts to use road and bridge revenues to assist the Department of Public Safety are bring considered. While we recognize and appreciate the partnership we have with the Department of Public Safety, the needs far exceed the means at the Department of Transporta-tion, so any diversion of these revenues would be met with great resistance from our industry. Anti-quarry legislation is also projected to resurface during the session, and our industry will work dili-gently to defeat such efforts.

As the session progresses, we will update our membership with weekly wrap-ups and more timely alerts as they are needed. Please let this offi ce know of any local efforts that you become aware of throughout the course of the spring session. As always, we appreciate all you do for Alabama’s transportation construc-tion industry and look forward to another productive legislative session.

s we prepare for the start of the 2008 regular legislative session on Feb

Page 14: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

Traffic Control Equipmentand Services

Protection Services Inc.a Division ofStabler Companies Inc.

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Tel.: 205-681-3395 • Fax: [email protected]

Specializing in installation of highway guardrails, signs and fencing

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14 The Alabama Roadbuilder • Spring 2008

Page 15: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

The Alabama Roadbuilder • Spring 2008 15

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Legislative Committees of Interest to ARBA and Alabama’s Transportation Construction Industry:

HOUSE COMMITTEE ASSIGNMENTSSpeaker of the House – Seth HammettRULESChair - Guin, KenVice Chair - Buskey, James E.Ranking Minority Member - Johnson, RonBoyd, Barbara BigsbyFord, Craig Galliher, BlaineGreeson, Todd Laird, RichardPage, III, John G. “Jack” Payne, ArthurRobinson, John Scott, Roderick “Rod”Warren, Pebblin W. Ward, Cam

GOVERNMENT APPROPRIATIONSChair - Knight, Jr., John F.Vice Chair - Page, III, John G. “Jack”Ranking Minority Member - Gaston, VictorAllen, Gerald Baker, AlanBeasley, William M. “Billy”Canfi eld, J. Gregory “Greg”Grantland, Ronald Hall, LauraLetson, John J. “Jody” Love, JayNewton, Charles O. Salaam, YusufThomas, Elwyn

GOVERNMENT OPERATIONSChair - Robinson, OliverVice Chair - Fite, LeaRanking Minority Member - Payne, ArthurBoyd, Barbara BigsbyColeman, Merika Hill, MikeHoward, Ralph A. Hubbard, MikeLetson, John J. “Jody” Moore, PatMorrow, Johnny Mack Shiver, Harry

SENATE COMMITTEE ASSIGNMENTSPresident ProTempore – Hinton MitchemRULESChair - Barron, LowellVice Chair - Little, T. D. “Ted”Deputy Chair - Lindsey, W. H. “Pat”Bedford, Jr., Roger H.Butler, Tom Denton, Bobby E.Figures, Vivian Davis French, SteveGriffi th, Parker Mitchem, HintonRoss, Quinton T. Smith, Harri AnneSmitherman, Rodger M.

FINANCE & TAXATION GENERAL FUNDChair - Bedford, Jr., Roger H.Deputy Chair - Singleton, BobbyVice Chair - Griffi th, ParkerBarron, Lowell Benefi eld, KimBishop, Charles French, SteveGlover, Rusty Lindsey, W. H. “Pat”McClain, Edward B. “E. B.”Mitchem, Hinton Orr, ArthurPenn, Myron C. Preuitt, JimSanders, Hank

COMMERCE, TRANSPORTATION AND UTILITIESChair - Ross, Quinton T.Vice Chair - Barron, LowellBedford, Jr., Roger H.Bishop, Charles Coleman, LindaGlover, Rusty Holley, JimmyLindsey, W. H. “Pat” Mitchem, HintonPreuitt, Jim Sanders, HankSmith, Harri Anne

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16 The Alabama Roadbuilder • Spring 2008

ARTBA

Construction Material Price Inflation:

BY WILLIAM BUECHNER, PH.D.VICE PRESIDENT, ECONOMICS AND RESEARCHAMERICAN ROAD AND TRANSPORTATION BUILDERS ASSOCIATION

This period of stable prices came to an abrupt end in 2004. At the start of the year, China’s demand for steel scrap led to a worldwide shortage and a precipitous rise in prices for fi nished steel products. The spring and sum-mer of that year saw a 50 percent increase in the aver-age price of hot-rolled plates, bars and structural steel, catching many state DOTs and contractors by surprise. Most affected were bridge fabricators and installers, whose suppliers were defaulting on signed contracts. Highway contractors, who use much less steel, were not as imperiled.

Their turn came in 2005, when cost increases spread to core highway construction materials. The price of crushed stone for road building rose twice as fast in 2005 as in 2004 and accelerated again in 2006. Cement prices also began to rise in 2005, driven by expanding construc-tion of new homes and commercial buildings combined

Throughout the 1990s and into the first years of the current century, highway contractors faced little risk of construction cost inflation. Between 1990 and 2003, the cost of

highway construction materials rose an average of just 1.6 percent per year according to the U.S. Bureau of Labor Statistics, an agency of the Labor Department that collects price data on thousands of products. This was about half the increase in the Consumer Price Index, which rose an average of 2.7 percent per year. For state departments of Transportation and for highway contractors, this relative stability of construction costs made it possible to plan and bid highway projects with little risk that actual costs would differ substantially from bid prices.

A Core Risk for Highway Contractors

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The Alabama Roadbuilder • Spring 2008 17

with limited supply. In 2005, the average price of ready-mix concrete was 12 percent higher than in 2004, followed by another 12 percent increase in 2006. Asphalt proved to be an even bigger problem, driven by the rising cost of petro-leum and new cracking techniques that squeeze more fuel from a barrel and leave less asphalt. In 2005, asphalt paving mixtures rose 8 percent, followed by an increase of almost 30 percent in 2006. The chart shows prices for core highway construction materials, including the sea change in the cost environment that occurred in 2004 and 2005.

In 2007, the cost of highway construction materials slowed a bit, rising just about 5 percent. The decline in homebuilding and increased supplies of cement both helped stabilize costs, although the recent spurt in the price of oil may pose a new problem.

Even with the recent slowdown, however, the average cost of highway construction materials is 40 percent higher today than in 2003. Fortunately, labor and overhead costs have risen less, but even when these costs are factored in, the cost of highway construction has risen at least 25 to 30 percent in just the past four years. The Consumer Price Index, by comparison, is up only 12.5 percent.

This infl ation in highway construction costs has seriously impacted state DOTs and highway contractors.

First, it has eroded the purchasing power of highway user fee revenues. The federal gas tax, which was set at 18.3 cents per gallon in 1993, today buys about half as much highway construction as it did then. The value of state and local high-way revenues, including fi xed-rate motor fuel taxes and vehi-cle registration fees, is also eroded by highway construction cost infl ation. The failure of user fee revenues to keep pace with infl ation means state and local DOTs fall farther and farther behind their highway investment needs each year.

Second, cost infl ation has put a serious strain on state and local highway construction budgets. State DOTs developed their surface transportation improvement plans (STIPs) for 2005-07 during 2003 and 2004 before the increase in construction costs became evident. The projects ultimately cost far more than expected. Many states, hoping to avoid postponement or cancellation of projects, pushed forward with more projects than could be afforded. Between 2004 and 2006, the value of construction work put in place on highways and bridges soared from $58 billion to $72 bil-lion according to the U.S. Census Bureau, which is the fed-eral agency that collects and publishes data on construction spending in the U.S. Of this $14 billion increase, only $2 billion came from the federal highway program. The rest came from state and local highway budgets, representing a 40 percent increase in state and local highway spending in just two years. Bond issues, reserves and general funds account for some of the increase, but it can’t continue with-out additional revenues.

Third, contractors had to build the risk of higher prices into their bids. When construction material prices are rela-tively stable as in the 1990s, projects can be bid with little risk of making a serious mistake. But in a period of rising

prices and cost uncertainty, a mistake can mean bankruptcy. Contractors have to build in a margin to account for this risk, particularly for multi-year construction projects where supplies are unwilling to commit to prices or quantities. The result is higher bids, not only to refl ect actual cost increases to date but also the risk of future increases that are currently unknowable. This adds to the budgetary pressures on state and local DOTs.

There are few options for dealing with this risk. One is for the contractor to bear the risk, in which case it will be built into higher bids. Another is for the state or local DOT to bear some or all of the risk by incorporating price adjust-ment clauses into project contracts. Since the 1970s, many states have done this for asphalt. But current cost uncertain-ties go well beyond the price of asphalt. A third might be to incorporate some fl exibility into project designs, permitting choices of materials to refl ect future prices.

Unfortunately, cost uncertainties will be with us for some time. The cost slowdown in 2007 is likely to be temporary. A recovery in homebuilding is not expected for another year or so, but when it occurs the slack in building materials will dry up. In addition, China, India and other countries are engaging in a round of road and transportation building to enhance their competitiveness that will put upward pres-sure on prices for highway materials. Even Russia has just

Prices of Core Highway Construction Materials Have Risen Sharply Since 2003

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© ERNEST PRIM. IMAGE FROM BIGSTOCKPHOTO.COM

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18 The Alabama Roadbuilder • Spring 2008

Hines, Ridolphi, Carper & Aman, Inc.Specializing in the Construction Industry

Insurance

Contract Surety

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Montgomery Location4131 Carmichael Road

Suite AMontgomery, AL 36106

Ph.: 334.272.6200Fax: 334.272.4705

Birmingham Location5300 Cahaba River Road

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Ph.: 205.969.6115Fax: 205.969.6116

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announced a major multi-billion dollar highway construction program.

In the U.S., Congress will be under pressure to enact a substantial increase in federal highway investment in the next surface transportation authoriza-tion bill. The current bill, SAFETEA-LU, expires Sept. 30, 2009. At current levels, federal highway investment falls about $20 billion short of the amount needed just to maintain cur-rent physical and performance condi-tions on the nation’s highways. Each year, congestion on the nation’s high-ways gets worse, transportation costs rise and U.S. businesses become less competitive in the world economy. If Congress even partially incorporates ARTBA’s recommendation for a 10-cent increase in the federal motor fuels tax and a new “Critical Commerce Corridors” program to add signifi cant freight capacity to the nation’s highway system, there will be an increase in highway construction in the U.S. in the next decade.

This would mean more construc-tion work, but it would also add to the current pressures on materials sup-plies. The timing and amount of price increases is hard to predict, but they will surely happen. So state DOTs and highway contractors will have to get used to a new environment of price uncertainty and develop new solutions as we move into the second decade of the 21st century.

ARTBA is the transportation construc-tion industry’s consensus voice on the fed-eral level in Washington, D.C. Recently ARTBA co-hosted a national conference on highway construction costs. To see information and presentations from the conference, please visit http://www.artba.org/about_artba/divisions/contractors/cost_conference.htm. ❏

Many states, hoping to avoid postponement or cancellation

of projects, pushed forward with more projects

than could be afforded.

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The Alabama Roadbuilder • Spring 2008 19

During the past 10 years I have been involved with ARTBA, it has become clear to me that no other national association is more effective in advancing the interests of the U.S. transportation construction industry.

But we cannot rest on our laurels. As Hall of Fame Coach Don Shula told us at the 2007 ARTBA National Convention, “Success isn’t fi nal; it’s a celebration of your latest accom-plishment—and you have to work harder to stay on top.”

I believe we are up to the challenge.

THE YEAR AHEADIn the year ahead, I am looking forward to working with

you to achieve four broad goals: developing and protect-ing our U.S. transportation market; focusing the “It’s Our Future” campaign fully on SAFETEA-LU reauthorization; expanding support for ARTBA’s advocacy activities; and broadening ARTBA’s professional and executive education programs.

Protecting and developing the transportation market is an issue that will be on all of our minds in the year ahead. As you know, we face a catastrophic funding shortfall in FY 2009 if changes are not made to meet earlier SAFETEA-LU funding commitments. By 2009, it is expected that the High-way Trust Fund will fall some $19 billion short of revenue needed to meet existing commitments. Addressing this key challenge is a top priority.

“IT’S OUR FUTURE!”Likewise, we will begin to evolve the “It’s Our Future”

branding and image program into a full-force SAFETEA-LU reauthorization campaign. To date, “It’s Our Future” has developed invaluable research, assembled advertising and branding materials for ARTBA and its chapters and mem-bers, and begun work to help address key workforce develop-ment needs.

A key focus in the months ahead will be an active campaign to promote and build support for ARTBA’s reauthorization pro-

SAFETEA-LU

ARTBA’s SAFETEA-LU Reauthorization Plan:How we say it is as important as what we say

BY LEO A. VECELLIO, JR.ARTBA CHAIRMAN

It is an honor to serve as 2007-2008 ARTBA chairman!

posals, which include, among other things, expanding the core federal highway/transit program and creating a “Critical Commerce Corridors” (3C) freight ini-t i a t ive .

A R T B A recently held an offi -cial “launch” to brief industry and “inside the Washington Beltway” reporters about our reau-thorization plan. These kinds of activities will be greatly expanded throughout 2008. A comprehensive 72-page ARTBA reauthoriza-tion report will be distributed to members of Congress, executive branch and federal agency offi cials and to candidates and thought leaders around the country. It can be viewed online in the “government affairs” section of www.artba.org.

INDUSTRY-WIDE BENEFITSI also want to join with you to broad-

en industry support for ARTBA’s advocacy continued on page 22

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20 The Alabama Roadbuilder • Spring 2008

SPECIAL REPORT

The report crystallizes the major issues fac-ing the 2009 reauthorization of the federal sur-face transportation program and is a call to action on the immediate need to begin addressing the nation’s growing transportation challenges.

In many ways, the Commission report echoes the ARTBA SAFETEA-LU Reauthorization Task Force report’s call and suggested approaches for refocusing, restructuring, reforming and refi nanc-ing the federal surface transportation programs.

SUMMARY OF REPORTThe report includes a comprehensive docu-

mentation of the nation’s vast surface transpor-tation challenges, including an assessment that the nation’s unmet annual surface transportation needs total in the range of $225 billion to $340 bil-lion. Bridging this gap, the Commission believes, would produce improvements in the physical condition and performance of all modes of sur-face transportation. The Commission’s fi nancing recommendations are based on this needs assess-ment and assumes the historic 40 percent federal share of these investments.

The Commission recommends completely restructuring the existing federal surface trans-portation program to become “performance-driv-en, outcome-based, generally mode-neutral and refocused to pursue objectives of genuine national interest.” In replacement of the existing programs would be 10 functional programs:• Rebuilding America—to upgrade existing

transportation facilities• Global Competitiveness—to ensure the

effi cient movement of freight

ARTBA Special ReportCommission Releases Major Transportation Overhaul Proposal

The National Surface Transportation Policy and Revenue Study Commission unveiled its 258-page

report to Congress at a Jan. 15 Washington, D.C., press conference. The commission is one of

two congressionally chartered entities created in SAFETEA-LU to develop recommendations for

Congress on how to best meet the nation’s surface transportation needs.

• Metropolitan Mobility—to relieve congestion in major urban areas

• Connecting America—to provide rural connectivity

• Intercity Passenger Rail—to develop regional passenger rail networks

• Highway Safety—to help reduce traffi c fatalities

• Environmental Stewardship—to mitigate transportation’s impact on the natural environment

• Energy Security—to promote alternative fuel development

• Federal Lands—to provide public access on federal property

• Research & Development—to ensure a national research programThe Commission calls for stake-

holders in each of these areas to develop plans to meet performance objectives. The performance objec-tives and development/implementation of these plans would be coordinated by a new inde-pendent commission, the National Surface Transportation Com-mission (NASTRAC).

N A S T R A C would also ident i f y

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the federal investment share of this national surface transportation plan and recommend a fi nancing proposal. As this new structure would be mode-neu-tral, the Commission proposes to allow Highway Trust Fund revenues to be used for all surface transportation proj-ects, including passenger and freight rail activities. It should be noted, however, the Commission also endorses a series of new freight and passenger rail fees that presumably would be deposited in the fund. The Commission also rec-ommends changing the Highway Trust Fund’s name to the Surface Transpor-tation Fund. Under the Commission’s proposal, Congress and the president would be given an opportunity to reject or accept the NASTRAC transportation plan and fi nancing proposal.

While the current program structure is being transitioned to the NASTRAC programmatic and fi nancing process, the Commission recommends immedi-ate action to begin generating the rev-enue to meet the nation’s transportation needs. The Commission calls for action in 2008 to ensure the solvency of the Highway Trust Fund and ensure SAF-ETEA-LU’s FY 2009 funding commit-ments are delivered. The Commission endorses a number of options to achieve this goal, including the proposal from Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Republican Charles Grassley, R-Iowa.

To achieve the Commission’s short-term investment goals, the

report proposes to increase the federal motor fuels user fee annually by fi ve to eight cents per gallon over the next fi ve years. Under this proposal, the cumula-tive increase would be between 25 to 40 cents per gallon and the revenues nec-essary to begin improving the system would be generated. The motor fuels user fee would then be indexed to infl a-tion following this ramp-up period. The Commission also endorses other fi nanc-ing alternatives, including congestion pricing, tolling, public-private part-nerships and freight-based user fees. Furthermore, the report recognizes the need for states to increase their surface transportation investment levels.

For the long-term, the Commission is calling for a study to guide the tran-sition from a fuel tax supported system to a vehicle miles tax fi nancing mecha-nism by 2025. This would ensure that revenues would be generated commen-surate with system use and irrespective of the type of vehicle or fuel utilized.

In addition to its program structure and fi nancing recommendations, the Commission recognizes the environ-mental review and approval process for transportation projects has become overly cumbersome and results in increased project costs. To combat these ineffi ciencies, the Commission rec-ommends addressing two areas in the short-term: eliminating redundancies in the National Environmental Policy Act (NEPA) process; and streamlining the lengthy permitting processes. The Commission’s recommendations center around resolving problems earlier in the NEPA process and reducing the overall amount of paperwork involved.

MINORITY REPORTThe report includes “Minority

Views” from Commission Chair and U.S. Transportation Secretary Mary Peters and Commissioners Maria Cino and Rick Geddes (both Bush Admin-istration appointees). They disagree

with the majority views regarding the size and scope of the future

federal role in guiding and helping fi nance the nation’s

surface transportation programs. They sug-gest the federal role

should be limited to maintaining the existing Interstate Highway System, helping relieve freight “bottlenecks” and encouraging states to adopt market-based approaches to fi nancing highway investments. In particular, they argue that an increase in the federal motor fuels excise is unnecessary to meet the nation’s transportation needs.

ARTBA PRIORITIESARTBA leaders and staff have

worked closely with members of the Commission throughout their delibera-tions. Then ARTBA Chairman Mike Walton, of the University of Texas at Austin, testifi ed before the Commission at a fi eld hearing in New York City dur-ing November 2006 and ARTBA First Vice Chairman Charles Potts, CEO of Heritage Construction & Materials, tes-tifi ed before the Commission at a Wash-ington, D.C., hearing in March of 2007. Both leaders highlighted the recommen-dations of the ARTBA SAFETEA-LU Reauthorization Task Force, which were fi nalized in January of 2007. Former ARTBA Chairman Gene McCormick, of PB, and ARTBA Vice President of Economics and Research Bill Buechner served on the Commission’s “Blue Rib-bon Panel of Transportation Experts.”

Like the Commission report, ARTBA is specifi cally advocating restructuring the federal surface transportation pro-gram to achieve major national objec-tives. This vision includes two major components largely endorsed by the Commission:• Increasing core federal surface

transportation investment to the level documented by the U.S. Department of Transportation’s needs assess-ment. ARTBA has specifi cally pro-posed increasing the federal motor fuels tax and indexing the tax to support these investments. ARTBA’s recommendations also endorse toll-ing, public-private partnerships and other innovative fi nancing mecha-nisms to generate new transportation revenues. ARTBA’s SAFETEA-LU reauthorization recommendations specifi cally call for a transition to vehicle mileage tax to fi nance transportation improvements in the longterm;

The Alabama Roadbuilder • Spring 2008 21

continued on page 22

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22 The Alabama Roadbuilder • Spring 2008

• Creating a new federally-led, perfor-mance-driven program, the Critical Commerce Corridors (3C) Program, to build the transportation system capacity necessary to ensure the safe, secure and effi cient movement of freight throughout the U.S. ARTBA’s 3C program calls for fi nancing these investments through new freight-related user fees and creating new budget “fi rewalls” to ensure these revenues are dedicated to freight improvement projects.In addition to these major objectives,

a number of other specifi c ARTBA rec-ommendations were endorsed in the Commission report, including:• Establishing a “state maintenance

of effort” requirement to ensure all levels of government are investing appropriately to address the nation’s transportation needs;

• Limiting the number of “alterna-tives” that must be considered in the transportation planning process to reduce project delivery times and setting time limits on environmental reviews;

• Expediting the environmental review process for projects with minimal environmental impacts; and

• Increasing federal investment in transportation research and ensuring research projects are based on merit.

NEXT STEPSCommissioners will present their

report to member of the House Trans-portation and Infrastructure Committee at a Jan. 17 hearing. The Senate Envi-ronment and Public Works Committee will hold a similar hearing Jan. 23.

While the coming days will include signifi cant debate between the Com-missioners over the majority and minor-ity views, it is important to note all Commissioners clearly recognize the need to increase surface transportation infrastructure investment. While Com-missioners may differ over how these investments are fi nanced, the Commis-sion’s report provides a solid foundation for the 2009 federal surface transporta-tion program reauthorization debate.

A copy of the Commission’s report is available at www.transportationforto-morrow.org. ❏

activities that benefi t not only members—but also the entire industry. We will recruit new members, expand our grassroots programs, and secure additional long-term fi nancial commitments from major industry fi rms to support campaign and associa-tion goals. And, I will be working with ARTBA executives to continue the good work of our regional leadership teams.

EDUCATING INDUSTRY LEADERSFinally, I want to work with you

to continue the ARTBA Founda-tion executive education and profes-sional development programs through the Transportation Builder Institute academies. Over the years, ARTBA’s programs have trained hundreds of executives, industry professionals, future leaders, safety professionals

and more. These programs help us address both workforce development goals and professional development requirements and help ensure that our industry’s workers are equipped to meet the demands of a rapidly changing marketplace. I believe we have much to offer through ARTBA’s academies and hope that we can expand this service to members and non-member professionals.

AN IMPORTANT YEARThis year is a watershed year for ARTBA, with immediate funding challenges

and critical SAFETEA-LU reauthorization debates on the horizon. I am confi dent, however, that meeting these challenges will be a success for ARTBA because of our experience and because of the depth and commitment of our membership. Together, we can meet our goals. ❏

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continued from page 19

By 2009, it is expected that the Highway Trust Fund will fall some $19 billion short of revenue needed to meet existing commitments. Addressing this key challenge is a top priority.

continued from page 21

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The Alabama Roadbuilder • Spring 2008 23

MEMBER PROFILE

Reed Contracting Services, Inc.PROVIDING YEARS OF EXPERIENCE WITH SAFE AND TIMELY SERVICES

Founded in 1987 by Michael Reed, Reed Contracting

Services, Inc. began with one dump truck. Since then, the

firm has grown to more than 250 employees and has a

large inventory including numerous pieces of equipment as well

as trucks. With headquarters located in Huntsville, Ala., Reed

Contracting is a full-service heavy construction contractor that

provides quality site work; underground utilities; state, county,

and city street and highway construction; and asphalt paving.

At Reed Contracting, we know the importance of doing a project safely, on time and to the customer’s complete sat-isfaction. Our business has been built and continues to grow because we are committed to providing safe, quality, and above all, compliant, timely services to our customers. Using formalized methods and preplanned processes, Reed devel-ops a working plan for every project. That plan is monitored with on-site inspections and quality control evaluations to assure that the job is performed to the customer’s complete satisfaction.

Reed Contracting has two strategically placed asphalt plants in the Madison County (Huntsville) area. Plant One is

located in the North Huntsville area, along with our opera-tions and shop facilities. Plant Two is located to the south of Huntsville. We produce quality hot mix asphalt for our own paving operations and for others. Our customers include Alabama DOT, surrounding counties, municipalities, feder-al contractors, developers and general contractors. We have state-certifi ed labs and personnel at each plant to ensure each job gets quality in every ton.

Building roads to meet city, county, state and federal specifi cations takes special expertise, and Reed Contracting Services has what it takes. Years of experience and high-performance equipment means you will get a better job completed in less time. Reed Contracting has employees who are dedicated and dependable, and they take pride in their work accomplishments. Reed has consistently main-tained a reputation for safety, high performance, reliability and unquestioned integrity with its various customers and has an extensive, proven record of superior performance. ❏

The Alabama Roadbuilder • Spring 2008 23

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PRODUCTS & SERVICES MARKETPLACE

24 The Alabama Roadbuilder • Spring 2008

For John DeereSales and Service, Call On:

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Proud Member of ARBA

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ARBA CONVENTION AT THE HILTON LOS CABOS IS HERE!

The annual ARBA convention is nearly here. Join us June 4–8, 2008, at the Los Cabos Hilton Beach & Golf Resort. The Hilton Los Cabos Beach & Golf Resort is the perfect Cabo San Lucas Mexico travel destination. This elegant Cabo Mexico hotel greets you from the moment you arrive with amazing service and tranquil luxury. Among Los Cabos Mexico hotels, they offer the only swimmable beach, allowing for a relaxing and rejuvenat-ing seaside vacation at this Cabo San Lucas resort. Providing spectacular views and magnifi cent service, the Hil-ton Los Cabos is the ideal destination for a Cabo San Lucas vacation. Mark your calendars today and be on the lookout for registration information for the best convention event yet!

HEARD ALONG THE HIGHWAY

The Alabama Roadbuilder • Spring 2008 25

ALABAMALEGALS.COM PROVIDES PUBLIC NOTICES WEB SITE

The Alabama Press Association has created a statewide public notices Web site, AlabamaLegals.com. With the par-ticipation of almost every APA member newspaper, this site provides a free and searchable database of public notices that are published in the newspapers across the state. On AlabamaLegals.com, notices are easily searchable by county, newspaper, start date or keyword.

AlabamaLegals.com provides more access and allows more openness in government than ever before by putting these notices online as well as in the printed newspaper publications. Now anyone can easily search one database for important notices such as settlements, government contract bids or other notices from around the state.

The site has been online for several years, but participation really boosted last year, with almost all Alabama newspapers posting their notices. To fi nd notices currently and previously posted, go to: http://www.AlabamaLegals.com. Drop-down menus are provided to refi ne your search, and the site also provides a list of participating newspapers which is updated almost every week.

ARBA members will once again descend on the nation’s Capitol in May

for its annual D.C. Fly-In. The event is scheduled for May 19–21, 2008, so mark your cal-endars and plan to join us for this quick trip. You will be up and back the next day as we cover a lot of ground dur-ing our short time in Washington, D.C. Visits to con-gressional offi ces, a special dinner with Alabama delegation

members and a breakfast the next day with a delegation member as the guest speaker will complete the agenda for the two-day trip. Be on the lookout for infor-mation about this great event.

ARBA FLY-INWASHINGTON D.C.

MAY 19–21, 2008

ARBA SPRING FLING: COTTON CREEK, ORANGE BEACHMAY 8–9, 2008, THURSDAY-FRIDAY!

The annual Spring Fling golf and fi shing tournament is set once again for this May on Alabama’s Gulf Coast. Make your plans today to be a part of this exciting activity. Join ARBA friends and ALDOT guests as we participate in a two-day event consisting of a fi shing rodeo and a golf tournament. Watch your mailings for registration forms that are coming soon!

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26 The Alabama Roadbuilder • Spring 2008

AGGREGATESMartin Marietta Aggregates....................................8

AGGREGATES/CRUSHED STONEVulcan Materials Company ...................................12

ASPHALT & ASPHALT PRODUCTSGulf Coast Asphalt Company ...............................10

ASPHALT EMULSIONS/EMULSIFYING AGENTSErgon Asphalt & Emulsions, Inc. .............................4

ATTORNEYSBurr & Forman, LLP .............................................26

CONSTRUCTION EQUIPMENTCowin Equipment ...................6, Outside Back Cover

CRUSHED LIMESTONEThe Rogers Group, Inc. ........................................14

CRUSHED STONE/GRANITE/RIPRAPSoutheast Materials Corporation ..........................25

DRILLING & BLASTING CONTRACTORSApache Construction ............................................18

EARTHWORK/GRADINGS.A. Graham Company, Inc. .................................26

ENGINEERSThompson Engineering ........................................14

EQUIPMENT RENTAL & SALESThompson Tractor .................................................3Warrior Tractor and Equipment ............................24

GUARDRAIL & HIGHWAY SAFETYAlabama Guardrail, Inc. ........................................14

INSURANCEPalomar Insurance Corporation ............................24

INSURANCE & BONDSHines, Ridolphi, Carper & Aman, LLC ...................18Turner Insurance & Bonding Company..................... Inside Back Cover

LIME/QUICKLIME/HYDRATED LIME SLURRYChemical Lime .....................................................24

LUBRICANTSThe McPherson Companies, Inc. ..........................24

PAINT SUPPLIERSSafety Coatings, Inc. ............................................26

PILE DRIVING EQUIPMENTPile Equipment, Inc. .............................................10

PIPE-MANUFACTURED PRODUCTSCrumpler Plastic Pipe, Inc. ...................................14

PRECAST CONCRETE PRODUCTSSherman Dixie Concrete Industries ......................22

READY-MIXReady Mix USA, Inc. .............................................18

RECRUITING SERVICESPlacement Central, Inc. ........................................26

STEELGerdau Ameristeel ...............................................12

TRAFFIC CONTROL EQUIPMENTAlabama Barricade, Inc. .......................................12

TRAFFIC CONTROL SIGNAGEProtection Services, Inc. ......................................14

TRUCK SALES, PARTS & SERVICESW.W. Williams ......................................................15

ADVERTISER WEB ADDRESS PAGEAlabama Barricade, Inc. ..................................www.alabamabarricade.com ....................12Alabama Guardrail, Inc. ...................................N/A ............................................................14Apache Construction ........................................N/A ............................................................18Burr & Forman LLP ...........................................www.burr.com ..........................................26Chemical Lime ..................................................www.chemicallime.com ...........................24Cowin Equipment .............................................www.cowin.com ........6, Outside Back CoverCrumpler Plastic Pipe, Inc. ..............................www.cpp-pipe.com ..................................14Ergon Asphalt & Emulsions, Inc. .....................www.ergonasphalt.com ..............................4Gerdau Ameristeel ............................................N/A ............................................................12Gulf Coast Asphalt Company ..........................www.gcachouston.com ............................10Hines, Ridolphi, Carper & Aman, LLC .............www.hrcallc.com ......................................18Martin Marietta Aggregates ............................www.martinmarietta.com ...........................8The McPherson Companies, Inc. ....................www.mcphersonoil.com ...........................24Palomar Insurance Corporation ......................www.palomarins.com ...............................24Pile Equipment, Inc...........................................www.pile-eqp.net .....................................10Placement Central, Inc. ....................................N/A ............................................................26Protection Services, Inc. ..................................www.protectionservices.com ...................14Ready Mix USA, Inc. .........................................www.rmusainc.com ..................................18The Rogers Group, Inc. .....................................www.rogersgroupinc.com ........................14S.A. Graham Company Inc. ..............................www.sagraham.com ................................26Safety Coatings, Inc. ........................................www.safetycoatings.com..........................26Sherman Dixie Concrete Industries ................www.shermandixie.com ...........................22Southeast Materials Corporation ....................N/A ............................................................25Thompson Engineering ....................................www.thompsonengineering.com ..............14Thompson Tractor ............................................www.thompsontractor.com ........................3Turner Insurance & Bonding Company ..........www.tibcoinc.com ............Inside Back CoverVulcan Materials Company..............................www.vulcanmaterials.com .......................12Warrior Tractor and Equipment ......................N/A ............................................................24W.W. Williams ...................................................www.wwwilliams.com ..............................15

INDEX TO ADVERTISERS PROFILES

ADVERTISERS.COM

PAINT SUPPLIERSSafety Coatings, Inc.20180 Safety Lane, P.O. Box 399Foley, AL 36536-0399Phone: (251) 943-1638Fax: (251) 943-3689E-mail: [email protected]: www.safetycoatings.comSafety Coatings manufactures all types of traffic paints, including DOT approved, Federal Specs, Parking lot paints, Hi-Build traffic paint, and Loop Sealant. We have been in business since 1979, and are known for our quality and service. Please call us for any of your traffic paint needs.

RECRUITING SERVICESPlacement Central, Inc.PO Box 12194Atlanta, GA 30355Phone: (404) 467-7930Fax: (404) 467-7928E-mail: [email protected]: N/ASearch and placement of construction management people who specialize in the heavy and highway industry. Site Development - Earth Moving - Road, Highways, Bridges, & Dam Construction - Water & Wastewater Treatment - Water, Sewer, & Storm Drain

S.A. Graham Company, Inc.www.sagraham.com

6965 U.S. Highway 231 Office: 334-735-2362Post Office Box 726 Fax: 334-735-2363Brundidge, AL 36010 E-mail: [email protected]

Burr & Forman LLP combines a 100-year history in the Southeast with a forward-thinking approach to providing legal solutions. With over 180 attorneys in offi ces in Alabama, Georgia, Mississippi and Tennessee, we offer a wide range of business and litigation services to clients in

several industries with local, national, and international interests.

420 North Twentieth Street, Suite 3400Birmingham, AL 35203

Ph: (205) 251-3000 Fax: (205) 458-5100www.burr.com

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Montgomery Birmingham

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Page 28: ROADBUILDERTHE ALABAMAAlso available at the hotel is the full-service Spa Ixchel, where you can enjoy a massage at the infi nity pool or on the beach. The Hilton Beach and Golf Resort

Volvo paving and compaction equipment isn’t beige anymore. It’s yellow.

But it takes more than paint to make it a Volvo. An extensive, global dealer network with superior parts, service, and industry knowledge will keep you on the job and your profits high. Our broad range of financial services will help you get the equipment you need. It’s the opportunity to own premium equipment and the comfort of knowing you have experts to back you up. Only then does it truly become a Volvo.

Experience our compaction, paving, and motor grader equipment packaged with everything Volvo offers. Because when you’ve got a road to build, we’re ready to get the job done.

Volvo Construction Equipment www.volvoce.com/naMORE CARE. BUILT IN.

BIRMINGHAM MOBILE MONTGOMERY HUNTSVILLE / DECATUR PENSACOLA OXFORD

www.cowin.comP: (205) 841-6666

800-239-2694F: (205) 841-2639

IT TAKES MORE THAN PAINT TO MAKE IT A VOLVO.

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