The Newsletter of the Roofing Contractors Association of California • Summer 2015

RCAC Executive Director’s Report: “Moving the Needle”

For nearly a year and a half, RCAC wagered a battle to save the Group 639 workers’ compensation insurance program and the 6% premium discount that our members enjoyed under that program. The battle was worth it, as it extended the program for two years beyond its planned termination date, saving RCAC members more than half a million additional premium dollars.

Unfortunately, last December the State Fund Board of Directors decided to terminate the program, reasoning that the new tiered pricing program adequately accounts for risk factors, rendering the premium discount redundant and associations unnecessary.

The decision initially came as a blow to RCAC. The group program saved members over $4 million in premiums over the course of more than a decade, and the administrative fee paid to the association to market State Fund and promote worker safety led to the creation of our safety program and provided the resources necessary to fuel RCAC’s successful advocacy efforts over the last several years.

Not only were Safety Days, the safety video library, and our catalog of safety handouts the result of the insurance program, but the relationship with State Fund opened the door to frank discussions with the insurer about the underground economy and insurance fraud, as well as auditing and underwriting practices applicable to the roofing industry.

As they say, however, “When one door closes, another door opens,” and the closure of the State Fund group program has prompted the association to perform an evaluation of itself on a number of levels, from member benefits and services to insurance programs to sponsorship packages and creative revenue opportunities.

What does this mean for our members? Hopefully, it means a new and improved RCAC. Occasionally taking a look in the mirror is valuable and allows for improvement and progress, while preventing stagnation and complacency. While the State Fund decision was not what we hoped it would be, I have every reason to believe the organization will be stronger, more relevant and focused, and more valuable to its members when all is said and done.

For starters, we are undertaking a member survey process to gain a better understanding of member needs, wishes, expectations, and opinions of RCAC. That process will take shape in two forms: RCAC staff is making phone calls to members, and an online member survey will soon be posted on surveymonkey.com. The results of these efforts will be reviewed by the RCAC Board of Directors at a strategic planning meeting in late July.

Next, RCAC has just completed a re-design of the association’s website. The new, more modern site is easier to navigate, includes a more robust Members Only section, more extensive legislative tracking and regulatory news,

Executive Director’s Report .................................... 1

Board of Directors ............................................ 2

Capitol Club ....................................................... 2

Calendar of Events ................................................. 3

Under the Dome ................................................ 3In this issue...

Heat Illness Regulations ........................................ 3

OSHA Heat Safety Tool App ................................ 3

Caution about RF Frequency Dangers ..................... 5

Respiratory Protection; Are You In Compliance?... 9

Contractors Insurance ........................................ 9

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features photographs of RCAC member roofing projects, and includes enhanced insurance and safety resources. Our Facebook and Twitter pages are also being updated and will be more active and relevant.

We have negotiated a program with Warren G. Bender Co. that will save RCAC members between 10% and 30% on their general liability insurance, helping to offset the loss of the State Fund workers’ compensation discount.

We held a webinar in late 2014 covering solar for roofers and plan to increase the frequency of our webinar offerings in 2015.

The RCAC Board has also committed to maintain an emphasis on safety and legislative advocacy as two of the central priorities of the association.

All of this is to say that positive things are ahead for the Roofing Contractors Association of California and its members, and what was seen as a setback may result in very favorable outcomes in the near future.

We look forward to interacting with you and sharing enhanced services, programs, and member experiences in the coming weeks and months.

Marc Connerly Executive Director

2014 RCAC Board of DirectorsEXECUTIVE COMMITTEE

Rex Souders – PresidentChristian Madsen – Vice PresidentBrett Maurer – Secretary/Treasurer

Steve Reardon – Past PresidentDIRECTORS

William Baley • Allen Brooks • John CleasbyAaron Hill • Richard Lawson • Ben Rucka

Gary S’Dao • Dave Stefko • Johnny Zamrzla

RCAC CONTACT INFORMATIONConnerly & Associates Inc.

2215 21st St., Sacramento, CA 95818(916) 456-4790 Fax: (916) 456-7672

Ilene Connerly — AdministratorMarc Connerly — Executive DirectorJulie Cisneros — Senior Consultant

Corinne La Fazia — Membership Director

RCAC SAFETY DIRECTORFor safety-related questions and information

Marc Connerlymconnerly@connerlyandassociates.com

RCAC/NRCA MEMBERSHIP INFORMATIONCorinne La Fazia

NRCA and RCAC West CoastMembership Director

(909) 305-4996 or clafazia@nrca.net

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California RoofPAC CAPITOL CLUBCalifornia RoofPAC funds RCAC’s legislative advocacy efforts. The following individuals and businesses have

generously donated to California RoofPAC:

(Over $1,000 in contributions this year):Dave Stefko, Eberhard Roofing Co.

Steve Reardon, Enterprise Roofing ServiceRichard Lawson, The Lawson Roofing Co., Inc.

Christian Madsen, Madsen Roofing & WaterproofingJoe Zamrzla, Stone Roofing Co., Inc.

Rex Souders, Tecta America Southern CaliforniaDennis Ryan, Waterproofing Associates, Inc.

Johnny Zamrzla, Western Pacific Roofing Corp.

Gold Sponsors

Silver Sponsors

Risk Management Services

Platinum Sponsors

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Upcoming Calendar of EventsJuly 30th – RCAC Board Strategic Planning SessionSan Diego, CA

July 31st – RCAC Board MeetingSan Diego, CA

August 7th – 19th Annual RCAC Challenge Cup Golf TournamentFranklin Canyon Golf Course, Hercules, CAVisit www.rcacal.com to register.

Under The DomeLegislative Report

In the 2015 legislative session, 79 bills have been identified as warranting scrutiny as the proposals wind their way through the legislative process, including 12 bills flagged as “high interest” on the part of RCAC.

RCAC is in support of AB 1347. The bill establishes for state and local public contracts entered into on or after January 1, 2016, a claim resolution process for contractors applicable to all claims in connection with public works. The bill has passed the Assembly by a unanimous vote and is awaiting hearing in the Senate.

RCAC strongly opposes AB 1354, entitled the “Equal Pay for Equal Work Act of 2015.” The bill would require certain employers, prior to becoming a contractor or subcontractor with the State, to submit an income equality program to the Department of Fair Employment and Housing for approval and certification, and to submit periodic reports of its compliance with that program. It would also require the program to include the collection of data on the compensation paid to employees, including data sorted by gender and race, and policies that prevent discrimination. The bill represents additional red tape and paperwork for California employers, and is another example of government meddling in the affairs of the state’s businesses. AB 1354 has passed the Assembly and awaits hearing in the Senate.

The bills of less significance to RCAC include four Career Technical Education bills supported by the association, and AB 12, which is also supported and would require state agencies to review and revise that agency’s regulations to eliminate any inconsistencies, overlaps, or outdated provisions in the regulations, to adopt the revisions as emergency regulations, and report to the Legislature and Governor. The bill is one of many proposals authored in recent years aimed at assessing and revamping the state’s regulations and regulatory processes. However, this item is Continued

authored by Democrat Ken Cooley from the Sacramento area, so stands a better chance of success than many of its predecessors, which were often carried by Republicans. AB 12 recently passed the Assembly by a unanimous vote and is awaiting hearing by the Senate Committee on Governmental Organization.

There are many bills on RCAC’s bill tracking list that have become two-year bills, meaning that they were introduced this year, but did not move through the hearing process, and will be heard or will die next year.

Heat Illness Regulations Update

With the warm weather months upon us, you are reminded that new Cal/OSHA Heat Illness Regulations went into effect on May 1, 2015. Heat illness and fall protection are two high priorities for Cal/OSHA enforcement personnel, and they are actively seeking violators. Make sure that you are familiar with the regulations and fully in compliance.

A copy of the heat illness regulations, including a variety of resources, may be found here: http://www.dir.ca.gov/dosh/heatillnessinfo.html.

OSHA – Heat Safety Tool App for Smart Phones

When you’re working in the heat, safety comes first. With the OSHA Heat Safety Tool, you have vital safety information available whenever and wherever you need it – right on your mobile phone.

The App allows workers and supervisors to calculate the heat index for their worksite, and, based on the heat index, displays a risk level to outdoor workers. Then, with a simple “click,” you can get reminders about the protective measures that should be taken at that risk level to protect workers from heat-related illness-reminders about drinking enough fluids, scheduling rest breaks, planning for and knowing what to do in an emergency, adjusting work operations, gradually building up the workload for new workers, training on heat illness signs and symptoms, and monitoring each other for signs and symptoms of heat-related illness.

The OSHA Heat Tool is available in Spanish for Android and iPhone devices. To access the Spanish version on the iPhone, set the phone language setting to Spanish before downloading the app.

Stay informed and safe in the heat, check your risk level.

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The following companies generously support the efforts of RCAC:

www.southcoastshingle.com

www.vdaconsulting.com

www.firestonebpco.com

www.wgbender.com

www.ajg.com

www.paccoast.com

www.duro-last.com

www.roofingsupplygroup.com

www.certainteed.com/CertainTeed/Undefined/Roofing

www.cleasby.com

www.dataforma.com

www.andreini.com

www.nationalcoatings.com

Email: stuart.pendleton@gmail.com

www.malarkeyroofing.com

www.roofmaster.com

www.4flyers.com

www.usa.sarnafil.sika.com

www.alliedbuilding.com

www.gaf.com

www.boltonco.com

www.unionroofingcontractors.org www.arcnc.net

www.beachandoneill.com

www.fleetmatics.com

www.safetycompliance.com

www.rcasocal.org

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For more information about safety while working in the heat, see OSHA’s heat illness webpage, including new online guidance about using the heat index to protect workers.

The source code for this app is available for download:https://www.osha.gov/SLTC/heatillness/heat_index/heat_app.

html

National Roofing Contractors Association and United Union of Roofers, Waterproofers and Allied Workers Caution about RF Frequency Dangers

Roofing workers are cautioned to be aware of possible radiofrequency (RF) hazards on rooftops. Most buildings contain rooftop components designed to provide for the comfort of the building occupants and efficient operation of processes taking place within the building. Examples include HVAC units, electrical boxes, skylights, solar collectors, water tanks, smoke vents, and material storage tanks. Some components are shrouded or hidden by decorative elements such as fences or ornamental panels to improve building aesthetics. One such component most workers on a roof may be oblivious to and which poses serious and possibly immediate danger to workers is a telecommunications transmitter that emits RF radiation or energy.

According to the Federal Communications Commission (FCC), radio waves and microwaves emitted by transmitting antennae are one form of electromagnetic energy. RF is invisible energy in the electromagnetic spectrum, and exposure to it can be harmful to people. The exposure’s harm will vary according to power levels, length of exposure time, and distance from the source.

Sources of RF energy on a rooftop often are not obvious and usually are not properly marked or defined as danger zones by warning signs. In many cases, for aesthetic reasons, transmitters or antennae are hidden by building elements that can obscure their presence yet not reduce the risk of serious harm to unsuspecting workers.

The FCC notes high levels of RF may heat biological tissue and increase body temperature. These so-called “thermal effects” result from the body’s inability to dissipate heat buildup quickly enough to avoid tissue damage. The National Institute for Occupational Safety and Health (NIOSH) states thermal effects may produce “potentially damaging” changes to cell tissue as a result of the

temperature increase. At lower levels of RF exposure insufficient to produce thermal

effects, the American Academy of Environmental Medicine reports studies indicate “significant harmful biological effects” may occur from non-thermal RF exposures.

Scientific literature reports nervous system and immune system dysfunction, cancer, kidney

damage, and neurological effects, according to the organization. There is less concern for exposures to the general public than for workplace locations, such as rooftops, where worker proximity to transmitters, along with longer exposure duration, can more readily occur. Though the full extent of the biological effects of RF exposures is not known, NIOSH believes there is sufficient evidence to be concerned about occupational human exposures.

Ultimately, the FCC is charged with evaluating the effects of RF exposures and determining exposure limits.

NRCA and UURWAW recommend the following precautions be taken to minimize RF exposures:

• A roofing contractor must ask a building owner or facility manager whether RF transmitters are present and, if so, their specific locations. The information should be provided in the form of a written map or drawing.

• Through the building owner or facility manager, a roofing contractor must ask the FCC licensee of the transmitter whether the equipment may be shut down or barrier devices installed for the duration of the roofing work. RF-blocking personal protective equipment is available that may be useful, such as eyewear and clothing that protects the wearer from RF radiation.

• If the equipment can be shut down or shielded, written verification from the licensee of the dates and times the transmitter will be shut down or a shielding device put in place must be obtained and lockout/tag out procedures considered.

• If the transmitter must be removed and reinstalled to perform roofing work, a roofing contractor must inform the licensee so employees of the licensee can perform the removal and reinstallation.

• Roofing workers must be trained to recognize RF transmitters, told the hazards of working in areas where transmitters have not been shut down and the symptoms of RF exposure, and told the importance of heeding warning signs or restricted access areas and the fact warning signs and restricted access areas may not always be present.

For more information, please contact Tom Shanahan, NRCA’s Associate Executive Director of Enterprise Risk Management, at tshanahan@nrca.net or Harry Dietz, NRCA’s Director of Enterprise Risk Management, at hdietz@nrca.net.

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Celebrating 75 years in business, Warren G.

Bender Co. is one of the Sacramento region’s

largest independently owned insurance

brokerages. The mission of this family

business is “providing protection, superior

service, and education to those who matter

most – our customers.”

WGBCO clients represent many

industries, such as manufacturing, public

works construction, property development/

management, healthcare and others. “We

know our strengths and grow from that base

without trying to be everything to everyone,”

explains Stephen Bender, President and CEO.

“We’ve journeyed many roads with clients

as they’ve changed their business models

and risk profi les, and continue to provide

guidance to build ongoing relationships and

preserve their bottom line.”

Steve Bender started in the family

business in 1972, learning from his father

Warren, the company founder. In Steve’s 41-

year tenure, the company has grown from

three employees to 42, and is now looking

to WGBCO’s third generation of leadership.

One of Steve’s daughters, Maggie Bender-

Johnson, is Director of Operations, and

nephew, Christopher Bender, manages the

company’s Employee Benefi ts Department.

Both are part of a succession team of fi ve

people who share the passion and vision,

and understand the company’s core values --

family and non-family talent working together

for a successful and robust future.

In 2008, Warren G. Bender Co. moved

headquarters to Roseville after 70 years in

Sacramento, and in 2010, opened a Southern

California offi ce. Though personal insurance

was the company’s mainstay for the fi rst

30-plus years, commercial insurance now

represents about 85 percent of their revenue

base, with personal insurance, employee

benefi ts, and surety as the balance.

“We design insurance and risk

management programs to fi t our clients’

changing needs, and that could be 20 or more

lines of coverage for any given client,” says

Bender of their diverse commercial clients.

“They have a myriad of risks they have to

respond to and we’re the architects for their

coverage.”

“We are fi ercely proud of WGBCO’s

values and history, and are excited about

our next generation of growth and service,”

he concludes. “Every day has its challenges

but at the end of the tough day, we can say

we stayed true to our ethics and our values,

and that’s what will inspire us for another 75

years.”

www.wgbender.comp: 916.380.5300

516 Gibson Drive, Suite 240

Roseville, CA 95678

Warren G. Bender Co.75 years of depth and dependabilityDenise Metz, Chris Bender, Maggie Bender-Johnson, Stephen Bender, Edward Johnson, Roland Guillen

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Respiratory Protection; Are You In Compliance?Provided courtesy of Safety Compliance Company. For more information, call (800) 901-7926.

Have you done your annual Fit Testing? Determine if your company has required respiratory protection or if chemicals being worked with are above the Permissible Exposure Limits (PEL) after using a feasible engineering control (booth, exhaust fan, etc.). If yes, the next step is to develop a written Respiratory Protection Program.

The Program shall contain these primary elements along with additional site specific elements, reviews, and recordkeeping items:

1. Administrator: The Administrator shall help in the selection process for type of respiratory protection, sizes needed, schedule of filter changes, reviewing the program, etc.

2. Selection: Selection is determined by reviewing the MSDS, following manufacturer’s guidelines, industry standards, and/or an industrial hygienist air monitoring results.

3. Medical Evaluation: Medical evaluation is required for all required respiratory users including particulate mask (dust mask). This has to be completed by a health care professional reviewing a questionnaire and/or a respiratory physical. All HIPAA laws should be followed.

4. Fit Testing: Fit Testing is required annually on all tight sealing respirators to determine proper fit and seal. It consists of a negative/positive test and a hood with a smelling agent or quantitative testing.

5. Care, Maintenance, and Inspection: Care, maintenance, and inspection is required by each respirator user prior to use. Respirators are required to be cleaned, stored in a sealed bag, and inspected for any damage to the face piece, straps, etc.

6. Training: Training on the proper use, limitation, and recordkeeping is required.

Safety Compliance Company can help your company meet the requirements of a written Respiratory Protection Program. Ask your SCC Representative to help you to be sure that you are in compliance. SCC offers:

1. A written Respiratory Protection Program 2. Access to a Registered Nurse to evaluate Medical

Questionnaire 3. Fit Testing, maintenance, care, and training.

Contractors InsuranceBy Kenneth Grossbart of Abdulaziz, Grossbart & Rudman. For more information, call (818) 760-2000 or e-mail ksg@agrlaw.com.

Insurance is defined as coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril; a means of guaranteeing protection or safety. Some insurance is optional and some is required. Contractors

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have many options and we thought that we would take the time to highlight some of the insurance that is required and other available options in the construction industry - keep in mind this does not cover everything.

Workers’ compensation is the insurance to pay the lost wages and medical expenses of an employee injured on the job. It is required for contractors before they are even licensed and all through their licensure, unless exempt - meaning there are no employees. There is no exemption for C-39 roofing contractors. Contractors are required to disclose within their contract documents whether they carry workers’ compensation or if they are exempt. In California, failure to maintain workers’ compensation coverage when required can result in licensure suspension. Disciplinary action can be taken against the uninsured contractor during the licensure suspension for any work that is done because the contractor is considered unlicensed. Licensees in the State of California are required to have a surety bond in the amount of $12,500.00 in order to protect the consumer in case of defective construction or a violation of the Contractors’ License Law - this is commonly known as a Contractor’s Bond. There may be a Bond of Qualifying Individual required if the responsible managing officer does not own 10% or more of the voting stock of a corporation/LLC or there is a responsible managing employee qualifying the license. Cash deposits may be an alternative to these bonds but are not released for three years after the expiration of the license. Just as with workers’ compensation, license suspension will occur if the bond is no longer valid.

Outside of a contractor not paying for the bond and it being canceled or the surety canceling it for another reason, other reasons for a bond to no longer be valid and thereby the license suspended are:

(1) judgment or payment of claim which reduces the amount;

(2) the surety company is no longer authorized through the California Department of Insurance; and

(3) The responsible managing officer no longer owns at least 10% of the voting stock of the corporation/LLC. Note that the bonds listed above should not be confused with a Disciplinary Bond. Also note that a license bond is not in the true sense an insurance contract. The license bond does not protect you like an insurance policy.

Commercial General Liability Insurance (“CGLI”) is to protect against third-party bodily injury and accidental property damage. It is not required (unless the contractor is a Limited Liability Company), but contractors are required to disclose in their contract

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and bid documents whether they carry CGLI. A CGLI policy will usually cover bodily injury and property damage caused by unforeseeable events or accidents and injury or damage due to defective work.

Keep in mind that all policies differ and coverage is subject to specific exclusions and various endorsements. It is important for contractors to determine if a homeowner or business owner would contract with a contractor that does not carry CGLI before contractors decide not to carry it. CGLI is not intended to cover the contractors work product, but rather damages caused as a result of the contractor’s work product. The owner should still have their own property insurance. Many contracts even require the owner to purchase additional property insurance in order to protect the construction project - often called builder’s risk insurance. The purpose of this type of policy or endorsement is to protect for direct physical loss or damage to the covered property during the construction project. It protects the work during construction damages caused by vandalism, theft, fire, acts of god, etc; loss to equipment or materials that are meant to be incorporated into the work; and losses made possible by defective design or construction; as well as causing an injury to a person or property, so long as they are not subject to exclusion. Consequential damages such as delay damages and acceleration costs are usually excluded from builders risk policies. As a contractor, it is important to determine what type of protection is necessary on the project and make sure that the owner complies with it. Professional Liability Insurance is defined as a policy that pays damages for negligence of professionals, such as architects, engineers, or other design professionals. These policies generally cover the wrongful act or professional negligence of an architect or engineer on a construction project. Insurance, legally required or not, provides a way for contractors to limit their risk - to a certain degree. It is a good idea to consult with legal counsel and insurance professionals in order to gain a better understanding of the above insurance types as well as what else may be available in order to limit risk.

Kenneth Grossbart is recognized as one of the foremost authorities in California construction law. Over the past 30 years, Ken has become a respected speaker on Mechanic’s Liens and other construction related issues. Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients, and it does not establish an attorney-client relationship with the reader. This document is of a general nature and is not a substitute for legal advice. Since laws change frequently, contact an attorney before using this information.

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