a g e n d a i. call to order ii. recommended actions · 2014-11-13 · artba report (ruane) – •...

Associated Pennsylvania Constructors BOARD OF DIRECTORS MEETING

November 19, 2014 Hershey Lodge and Convention Center

A G E N D A

I. CALL TO ORDER II. RECOMMENDED ACTIONS A. Routine Matters

1. Call to Order, Quorum Present, Recognition of Newly Nominated Board Members, Self-Introductions……………………..…………Clarke

2. Present Minutes of July 29, 2014 Board Meeting

for Approval ………………………………(enclosure)……. Clarke

3. Consent Agenda……………………………………………. .Clarke a. Transfer Items from Consent Agenda to Regular Agenda (if necessary) b. Approve Consent Agenda 4. Approval of New Members ………………(enclosure)..........Hoogstraten 5. 2014 Dues Receipts Report………………(enclosure)………Hempt III. INFORMATION AND PROPOSALS

A. National Association Reports

1. TRIP Report……………………………………………………….Wilkins 2. ARTBA Report……………………………………………………Ruane

B. Legislative Advocacy Reports:

1. 2015 Legislative Outlook and Issues……………………………...Wagner 2. Seasonal Worker UC Issue Discussion……………………………Wagner 3. Keystone Funding Coalition ……………………………………...Wolff 4. TCI-PAC Report………………………….(enclosure)…................Snyder 5. APC Educational Trust Fund Report……..(enclosure)…………...Latham 6. Highway Education Foundation Report…………………………..Van Buren

C. Risk Allocation Committee Report…………………(enclosure)……..........Hoffman D. Discussion on Winter Maintenance………………………………………...Hoffman

E. United Associations/PennDOT Relations -- Breakout Discussions:

1. Personnel Development and Training 2. PennDOT Organization 3. PennDOT Quality Initiatives 4. Project management concerns

IV. CONSENT AGENDA

1. Safety Committee …………………………………………...Wagner 2. Bridge Committee…………………………(enclosure)…….Girondo 3. EEO-DBE Committee……………………..(enclosure)…….Hoogstraten 4. PHIA Report………………………………(enclosure)……...Lawson 5. Investment Committee…………………….(enclosure)……..B. Shorb 6. Public Private Partnership Committee…….(enclosure)……..Mezey

V. OTHER BUSINESS

1. Building Committee……………………….(enclosure)……..Kinsley 2. Proposed 2015 APC Budget……………….(enclosure)…….Hempt

VI. FUTURE MEETING DATES

• ARTBA Northeast Regional Meeting December 10-11, 2014 Washington, DC

• CAWP-APC Joint Annual Meeting February 18-22 Westin, Key West, FL

• APC Summer Board Meeting

July 19-21, 2015 The Greenbrier, White Sulfur Springs, WV

Associated Pennsylvania Constructors BOARD OF DIRECTORS MEETING

July 28-29, 2014

Presiding: Geoffrey W. Clarke, President Present:

Geoffrey W. Clarke, President Craig Hoogstraten, Vice President Max C. Hempt, Treasurer Robert E. Latham, Executive Vice President Leonard Bellanca Barry Epley Dominic P. Girondo Michael Glezer Daniel Hawbaker Michael Hawbaker Albert Hoffman Patrick Kinsley John R. Kulka James Kutz Kevin Loftus Daniel Lucas Dennis Luzier John F. McCaskie John Mills Charles J. Niederriter Michael Palo Basil Shorb Matthew Shorb Mark Snyder Clayton Stahl Andrew Swank James Van Buren Kent Wible George Wolff (Triad) Jason Wagner (APC Staff) Lisa Sagan (APC Staff) Cindy Sells (APC Staff)

Guests:

Chad Basinger, Swank Construction John Becker (ACPA) Mark Compton (PA Turnpike) Paul Detwiler III, NESL Brian Eberhart, Callahan Paving Products Kent Frese, TeamLMI Gary Hoffman (PAPA) Jeffery Lamb (HRI) Eric Madden (ACEC) Eric Nicolson, Center Concrete Pete Ruane (ARTBA) Fred Thomson, Kinsley Construction Will Wilkins (TRIP)

Peter Vlahos (PACA) Absent: James J. Anderson

Richard Barcaskey (CAWP) Steve Bussanmas Terry Callahan Francis J. Colella Matthew Cummings William J. Cummings James Davis (CAEP) W. Logan Dickerson John DiRenzo Michael J. Driscoll, Jr. Mark Eckman

L. A. Glasgow S. Scott Grannas Greg Gunn Bruce Hottle Kevin Johnson John Kibblehouse, Jr. Thomas Lawson Joseph M. Martosella, Jr. Owen McCormick Charles Merlo George E. Mezey Robert Miner Stephen M. Muck A. Ross Myers William J. O’Connor David Patterson James Parsons Robert B. Priest Bruce Rambo Kevin Reed John P. Rutter Mark Schug Wayne Schug Kevin Schultz Wilmer Schultz George Searle Russell Swank Richard Wagman Edward Wagoner Thomas Westrom Kenneth Wolf

President Clarke called the meeting to order July 28, 2014 at 8:03 a.m. Self-introductions were made.

APC Board of Directors Meeting July 28-29, 2014 – Page 2 TRIP Report (Wilkins) – Since the beginning of the year, TRIP has been partnering with contractors, regional chambers of commerce, state DOTs and business communities to speak at news conferences in order to make a case for a fix for long term reauthorization and the Transportation Trust Fund. To date, TRIP has done 11 state reports and 23 news conferences. ARTBA Report (Ruane) –

• APC members were asked to meet with their senators to support the Carper-Corker-Boxer Amendment.

• The House passed a $10.8 billion bill that will temporarily sustain the program through May 2015. • Last week, the Senate adopted a version of the House bill and have taken up four amendments that

would allow them to change the proposal, providing they get enough votes. • ARTBA is optimistic that there will be a positive result in the upcoming months.

Quality Assurance and Control Sessions (Frese) – Discussion of general topics and survey results. Adjournment – President Clarke recessed the meeting at 11:37 a.m. President Clarke reconvened the meeting July 29, 2014 at 7:50 a.m. PA Turnpike Commission (Compton) –

• Compton asked for APC’s continued support on legislative action in our work zones and on All Electronic Tolling.

• The Turnpike is working on legislation to get cameras in work zones. • The capitol plan, for the PA Turnpike, is $600 million in 2014 and 2015, and continues to work on

expansion projects which include a portion of I-95 and the southern beltway. With All Electronic Tolling the PTC can decrease their workforce from 2,100 to 800 (75% of the Turnpike’s revenue is captured by E-Z Pass).

Quality Assurance and Control Sessions Continued (Frese) – Discussion of general topics and results of TeamLMI’s survey. Approval of Minutes – Motion was made and carried to approve minutes of the May 6, 2014, meeting. Approval of New Members (Hoogstraten) - Motion was made, seconded and carried to approve the new members listed below: NEW ACTIVE MEMBERS Midland Asphalt Materials, Inc. 88 Barrett Road Woodland, PA 16881 (814) 857-5129 Shawn Ward, Technical Rep. (asphalt emulsions and related components) NEW AFFILIATE MEMBER Vollers Excavating & Construction, Inc. 3311 US Highway 22 North Branch, NJ 08876 (908) 725-1026 Thomas Vollers, President, CFO, Treasurer (heavy, highway, utilities construction)

APC Board of Directors Meeting July 28-29, 2014 – Page 3 NEW ASSOCIATE MEMBER Zimolong, LLC 1429 Walnut St., Suite 1201 Philadelphia, PA 19102 (215) 665-0842 Wally Zimolong, Esquire (construction law firm) RESIGNED/CANCELLED ACTIVE MEMBERS Baseline Contracting, Inc., Coplay, PA – no reason given Main Stream Industries, Inc., Bernville, PA – no reason given RESIGNED/CANCELLED ASSOCIATE MEMBERS Cemex, Inc., Wampum, PA – failure to pay dues Hilti, Inc., Tulsa, OK – budget constraints Building Report (Kinsley) – There has been an ongoing issue with the APC exterior concrete fluting of the building, for about 5-10 years. A consultant was hired to inspect and make recommendations regarding the exterior of the building and the parking deck structure. The findings were not unexpected: the parking deck has damage due to water infiltration, reinforcement, corrosion and wear and tear from traffic and snow removal. With regards to the building, there is a more serious problem with the concrete fluting on the towers; it had begun falling off and creating a high-risk issue. The challenge is that the budget was based on a preliminary set of plans and the cost was around $750,000. The committee had one of its members take a second look and found the cost to repair the towers was under budgeted. The projected expense was closer to $1million. The committee has decided to reevaluate their recommendations. They will meet with the consultant again and get more input from the contractor; and present another proposal at a later board meeting. A repair that requires immediate attention, and the committee has approved, is to seal a cracked joint on the parking deck that is causing water to leak into the electrical room. Financial Update (Latham) –

• APC implemented a five year plan to pay off the ETF and established a policy that APC, ETF and PHIA would operate on a balanced budget.

• Membership dues are based on awards from the previous year (July 1- June 30) and won’t be restored until 2015/2016. However, APC is expected to see growth due to the expansion of PennDOT jobs.

• To all indications, APC’s budget is projected to break even for the 2014 fiscal year. Nominating Committee Report (Hawbaker) –

New Contractor Board Members: Nominations: Fred Thompson, Kinsley Construction, York, PA Frank Piedimonte, Brayman Construction, Gibsonia, PA Jeffery Lamb, HRI, State College, PA Seth Myers, American Infrastructure, Worcester, PA Greg Andricos, G.A. & F.C. Wagman, York, PA

Motion was made, seconded and carried to approve the new board members.

APC Board of Directors Meeting July 28-29, 2014 – Page 4

Associate Members whose terms expire: (nominate for additional 3 years, or nominate up to four others for three-year term) Current Nominations

Terry Callahan (14) Bruce Hottle (2017) Greg Gunn (14) Wayne Willey (2017) Bruce Hottle (14) Rob Strewig (2017)

Motion was made, seconded and carried to approve the associate board members.

Current Associate Members: Kevin Johnson (15) Matthew Cummings (16)

Bob Priest (15) William J. O’Connor (16) Barry Epley (15) Tom Lawson (16) Eligible for Life Status: (20 years on the Board or Past President) Emeritus Status: John Kulka, HRI John McCaskie, Swank Construction Company Russ Swank, III, Swank Construction Company

Motion was made, seconded and carried to approve emeritus status for the three board members.

Resigned Active: Dwight C. Weible (Retired) Ross Myers

District Vice President Vacancies: District 4-0 Vice President – Wayne Schug District 8-0 Vice President – Mark Eckman District 12-0 Vice President – Clayton Stahl

District 2-0 Vice President - Mike Hawbaker Motion was made, seconded and carried to approve the district vice presidents.

Educational Trust Fund Trustees: There are no vacancies. Highway Education Foundation Board of Trustees: There are no vacancies.

Upcoming Meetings:

APC Board of Directors Meeting November 19, 2014 Hershey Lodge & Convention Center APC/PennDOT Fall Seminar November 19-21, 2014

Hershey Lodge & Convention Center Adjournment – There being no further business, after motion was made, seconded and carried to approve, President Clarke adjourned the meeting at 11:39 a.m.

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board of Directors Meeting – November 19, 2014

APPROVAL OF NEW MEMBERS by

Craig A. Hoogstraten

NEW ACTIVE MEMBERS PKF-Mark III, Inc. Rencor, Inc. 17 Blacksmith Road 24 Tannery Road Newtown, PA 18940 Somerville, NJ 08876 (215) 968-5031 (908) 534-2131 Glenn A. Ely, President Ernest E. Renda, President (heavy, highway general contractor) (heavy highway: bridge construction, earthwork & drainage, underground utilities) Simmonds Construction Services, LLC 912 Chartiers Ave McKees Rocks, PA 15136 (412) 533-1340 Winston M. Simmonds, President/CEO (General contractor, highway and street construction) NEW ASSOCIATE MEMBERS Atkins North America, Inc. Gilmore & Associates, Inc. 105 Fieldcrest Avenue, Ste 204 65 E. Butler Ave, Suite 100 Edison, NJ 08837 New Britain, PA 18901 (732) 590-3036 (215) 345-4330 L. Joe Boyer, CEO Steven D. Gilmore, P.E., CEO (consulting, transportation engineering & design) (consulting civil engineering) Royal Truck & Equipment, Inc. Hunt Valley Environmental, LLC 6910 N Route 3098 632 Hunt Valley Circle Coopersburg, PA 18036 New Kensington, PA 15068 (610) 282-4090 (724) 594-0805 Rob Roy, President Andrew Dzurko, Member (safety equipment manufacturer) (environmental consulting) Allegheny Iron & Metal Co., Inc. Parsons Transportation Group 2200 Adams Ave 1601 Market Street, Suite 900 Philadelphia, PA 19124 Philadelphia, PA 19103-2301 (215) 743-7760 (215) 606-2300 Charlie Dolaway, Owner Todd Wager, President Hank Dolaway, Onwer (engineering, consulting, technical, and Kirk Dolaway, Owner professional services industry) (recycling of industrial scrap metals & demolition Materials) RESIGNED/CANCELLED AFFILIATE MEMBER Noralco Corporation, Pittsburgh, PA – no reason given RESIGNED/CANCELLED ASSOCIATE MEMBER Tool Sales & Service Co., Inc., East Pittsburgh, PA – haven’t seen any benefits from membership

1ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting - November 19, 2014

ACTIVE MEMBERS 2013Jilco, Inc. 299 Kuharchik Construction, Inc. 5,500 Leeward Construction, Inc. 2,427 3 Rivers Pipe Profiling LLC 1,249 Total 9,475

AFFILIATE MEMBERS 2013CAEP - Total -

CAWP - A. Folino Construction, Inc. 4,261 Total 4,261

ASSOCIATE MEMBERS 2013Construction Crane & Tractor, Inc. 750 Dixon Contracting & Supply 750 Jersey Precast 750 Total 2,250

TOTAL DUES RECEIVABLE 15,986 11/6/2014

2014 DUES RECEIVABLEby Max J. Hempt

ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting - November 19, 2014

2014 DUES RECEIVABLEby

Dues Invoiced Dues Dues(Net of Writeoffs) Paid Receivable

ACTIVE MEMBERS 88 Members (invoiced) 434,648 84 Members (paid) 425,173 4 Members (outstanding) 9,475

AFFILIATE MEMBERS (CAEP) 6 Members (invoiced) 24,678 CAEP (13 Members @ $850) (invoiced) 11,050 6 Members (paid) 24,678 CAEP (paid) 11,050 0 Member (outstanding) 0 CAEP (outstanding) 0 CAEP Totals 35,728 35,728 0

AFFILIATE MEMBERS (CAWP)57 Members (invoiced) 168,353 CAWP (58 @ $300 + 1 subsidiary) (invoiced) 17,10056 Members (paid) 164,092 CAWP (paid) 17,100 1 Members (outstanding) 4,261 CAWP (outstanding) 0 CAWP Totals 185,453 181,192 4,261

Total Contractor Dues 655,829 642,093 13,736

ASSOCIATE MEMBERS240 Members (invoiced) 175,951 57 ARTBA Members (invoiced & paid) 19,950237 Members (paid) 173,701 57 ARTBA Members (paid) 19,950 3 Members (outstanding) 2,250

Total Associate Dues 195,901 193,651 2,250

11/6/2014 851,730 835,744 15,986

Max J. Hempt

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – November 19, 2014

TCI-PAC Report

By Mark Snyder, Chairman

TCI-PAC Protects Act 89 Supporters No House Republican—including all those whom voted for Act 89—lost a bid for re-election except State Rep. Mike Fleck who lost the GOP primary race and was running as a Democrat. Fleck’s support of Act 89 was not a factor is his primary or general election defeat. More of note was that 4 of the 8 GOP pick-ups (outlined below) in the House were against Democrats who voted AGAINST Act 89. The other 4 pick-ups were open seat elections. In the Senate, one of the GOP pick-ups featured state Rep. Mario Scavello who was running on his positive vote for Act 89 and easily won the Senate seat in Monroe County. However, Senator Tim Solobay of Washington County lost his re-election bid. Solobay voted for Act 89. It is not believed this was a factor in his failed re-election attempt. Below is an outline of the key races in the PA General Assembly Senate and House. Those in highlight were supported by the TCI PAC.

SENATE Winner Loser Senate 26 (Delaware)-open seat

Tom McGarrigle (R)—GOP hold John Kane (D)

Senate 32 (Fayette)-open Pat Stefano (R)—GOP pick up Deb Kula (D) Senate 40 (Monroe)-new seat Mario Scavello (R)—GOP pick up Mark Aurand (D) Senate 46 (Washington) Camera Barolotta (R)—GOP pick up Tim Solobay (D)*

*=denotes incumbent

House Winner Loser House 46 (Washington) Jason Ortitay (R)—GOP pick up Jesse White (D)* House 52 (Fayette) Ryan Warner (R)—GOP pick up A.J. Boni (D) House 74 (Chester)—new seat

Harry Lewis (R)—GOP pick up Josh Maxwell (D)

House 81 (Huntingdon) Richard Irvin (R)—GOP hold Mike Fleck (R/D) House 83 (Lycoming) Jeff Wheeland (R)—GOP pick up Rick Mirabito (D)* House 115 (Monroe)—new seat

David Parker (R)—GOP pick up Maureen Madden (D)

House 120 (Luzerne)-open seat

Aaron Kaufer (R)—GOP pick up Eileen Cipriani (D)

House 146 (Montgomery) Tom Quigley (R)GOP pick up Mark Painter* House 157 (Chester) Warran Kampf (R)—GOP hold* Marion Moskowitz (D) House 169 (York)—new seat Kate Klunk (R)—GOP pick up Unopposed

*=denotes incumbent

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – November 19, 2014 TCI-PAC Report – Page 2 Board of Directors Participation Plan The TCI-PAC has established a goal of 100% minimum participation by Sponsoring Association Boards Members; $1000/company by one of the following methods:

• One check from board member to TCI-PAC • Company PAC check to TCI • Multiple checks from executives in board member company • Sponsor TCI event at $1000 level or greater • Initiate “Company Plan” • Attendance at Legislative event – check to TCI which writes a TCI check to legislator; or

your check to a legislator’s fundraiser. The APC Board approved this policy during the April 25, 2011 Board meeting.

##


Educational Trust Fund by

Craig Hoogstraten

Last year we achieved our goal of enacting comprehensive transportation funding legislation – an annual boost of $2.3 billion to our market by 2017. This year we started down the path to defending that legislation and building continued public support and coalition support for candidates who voted for Act 89. Below are examples of activities funded this year by the APC Educational Trust Fund:

The Keystone Transportation Funding Coalition’s bi-weekly newsletter; Organizing local and regional chambers of commerce support and non-industry groups to

continue to voice their support via op-ed pieces and to hold transportation-related meetings with chamber members;

Funding support for organizing the Keystone Coalition’s grassroots meetings with Pennsylvania’s congressional delegation in advocating for MAP-21 funding;

Appearances by APC and other coalition members on PA Newsmakers, Behind the Headlines, and PCN call-in shows;

$50,000 annual funding for The Road Information Program’s past and pending reports on the importance of investing in Pennsylvania’s transportation system;

Operations and continued information leadership by the Pennsylvania Highway Information Association (PHIA) www.pahighwayinfo.org.

The Educational Trust Fund Trustees held several meetings this year and made phone calls encouraging participation by contractors. The trustees also began a campaign for Associate member involvement as follows: $5,000 Maximum Sponsor Recognition in Highway Builder and at Fall Conference $2,500 Gold Sponsor Recognition in Highway Builder and at Fall Conference $1,000 Silver Sponsor Recognition in APC Newsletter Update $500 Bronze Sponsor Listing in Year End Highway Builder The following Associate Members stepped up as ETF supporters. Construction Crane and Tractor, International Union of Operating Engineers, Traffic Planning and Design.

2014

2013

Projected

Budget

Year End

2014 Year End

REVENUE Contractors $ 550,000

$ 487,086

$ 473,430

Other Revenue $ 87,000

$ 235,940

$ 6,600 TOTAL

$ 637,000

$ 723,026

$ 480,030

2013

Projected

http://www.pahighwayinfo.org/

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – November 19, 2014 Educational Trust Fund Report - Page 2

2014

Budget Total

Year End

2014 Year End

EXPENSE PHIA Expense $ 150,000

$ 40,000

$ 130,000

Other Expense $ 471,000

$ 862,342

$ 518,000 TOTAL

$ 621,000

$ 902,342

$ 648,000

NET

$ 16,000

$ (179,316)

$ (167,970)

###

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board of Directors Meeting - November 19, 2014 1

Risk Allocation Committee Report Submitted by Albert Hoffman, Chairman

The most recent Risk Allocation Committee meeting was held on October 28.

APC is seeking to clarify Contractor’s responsibilities and limit their liability as a Co-Permittee on NPDES permits. Issues being addressed include:

• Conflicts between DEP and PennDOT as to the correct forms to be used; • Responsibility for cost of unforeseen E & S measures to correct inadequate designs; • Relief from the unwarranted risk resulting from owner inability to “final” projects until

long after all Contractor obligations are fulfilled.

The Committee is working to develop standard specifications to be included in Pub. 408 to establish a Department-wide uniform approach to procedures and payment for testing, excavation, hauling and disposal of unforeseen residual and hazardous excavation. APC is participating in a “100-Year Pipe” task force to resolve issues that have arisen from application of the new specification. The task force has a two-fold purpose, the first being a preventative effort to avoid designs and material selections that are incompatible with field conditions. The second purpose is to develop standard remediation procedures to correct commonly occurring deficiencies in lieu of remove and replace and/or contract credit resolutions. There was no opposition to the recent Clearance Transmittal for an APC proposed revision to Pub. 408, Section 901.03(b) to establish that roadway and bridge deck repairs are not incidental to the Lump Sum Item. As a result, a revised specification will be put into effect without a second CT round. APC and the Department are pursuing strategies to reduce project delays and claims. Establishment of a formal decision tree for all projects is anticipated to be an extremely beneficial measure, as well as 100% adoption and use of Share Point (PennDOT) or Kahua (Turnpike) document management software to identify issue status responsibility on a daily basis. The Department will investigate obtaining pre-construction borings and providing unit price bid items for sign structure foundations in lieu of the present practice of no borings and a lump sum “Drilled Shaft” bid price for sign structure foundations. APC requested that the ECMS system be modified to include issuance of an email alerting the contractor of the status of estimate payments. APC will meet with the Department to develop a reasonable solution to the Department’s recent demand for resource-loaded CPM schedules due to their concern that contractors may be managing backlogs irresponsibly. The next Risk Allocation Committee is rescheduled for January 21, 2015 at 9:30 am

###


APC Safety Committee Report Submitted by Chris McHugh, Chairman

The APC/PennDOT Joint Safety Committee last met on August 8, 2014. Below is a summary of that meeting and the items the committee is focusing on. New 70 MPH speed limit/work zone speeds The committee is very concerned as to the effects of the newly posted 70 mph speed limits and the message that motorist can now travel faster on the roadways. While the committee isn’t opposed to the 70 mph speed limit, the posing of 55 mph in many interstate work zones is of great concern. The committee renewed its call for PA’s laws to be changed to allow for automated speed enforcement cameras to be permitted in work zones. A recommendation was made to the APC Board that they make this a legislative priority and push for action within the General Assembly on this subject. A subcommittee of members in conjunction with the PA Turnpike and PennDOT will be developed to draft a white paper on the topic in order to get the policy discussions moving. APC will lead this effort. Work Zone Traffic Control Manager Training Update The Work Zone Traffic Control Manager certification program continues to proceed with one pilot train-the-trainer session conducted. This item will be a key part of the Safety Session at the Fall Seminar. A timeline and process for moving forward is being developed. A draft policy was sent to the legal department and official training would start early in 2015. This entire program was a major initiative of the committee and was developed over the course of the last year. OSHA’s Proposed Silica Standard OSHA’s has proposed a rule regarding silica standards on highway construction projects. The proposed standard will essentially cut the Permissible Exposure Limit (PEL) in half. While the public comment period is now closed, OSHA encouraged contractors to go to its website for more information on the proposed standard, which can be found at www.osha.gov/silica. OSHA made a presentation at the last meeting and said that the silica standard hasn’t been updated since 1971 and therefore the agency is proposing a new standard for crystalline silica in construction in order to protect workers from the dangerous effects of silicosis. Required Safety Training on All Highway Projects The committee discussed the possibility of advocating for a minimum level of safety training for all highway workers—such as the OSHA 10 hour course. The committee discussed the need and effectiveness of possibly requiring such minimum training levels. The committee will look into what other states require in this regard. More discussion will be had on this topic in the future. Establishment of a Safety Award Program The committee is interested in establishing a safety award program which would be of benefit to the membership. A small ad hoc working group will be formed to flesh out the details of a possible recognition program and make recommendations to the committee in the future.

# # #

http://www.osha.gov/silica


Bridge Committee Report Submitted by

Dominic Girondo, Co-Chairman

Greg Burkhart, PE and Joe Rovnan, PE of J.D. Eckman Inc. gave the Committee a presentation on the challenges their firms faced performing an emergency contract to stabilize, shore and jack to vertical alignment the superstructure on two approach spans to the I-495 Christina River Bridge in Wilmington, DE. The spans became vertically misaligned by as much as 18 inches after the supporting piers tilted transversely. The stabilization procedure required the installation of groups of drilled shafts to support temporary towers from which the superstructure was jacked back to grade and supported so the bridge could be re-opened to traffic. Eckman is now removing the tilted piers by wire sawing, and will construct new piers supported by a new grade beam system which will bear on the drilled shafts for permanent support. The following topics were addressed at the last Bridge Committee meeting: Fly ash shortages developed last summer as a result of cool weather which significantly reduced electrical power demand, and therefore the production of fly ash. MTD advised the Districts of ways to expedite mix design approvals for replacement sources of fly ash to avoid project delays. The Department is proceeding on the assumption that the availability of fly ash will continue to decrease as a result of more and more coal-fired generating stations are being phased out for environmental reasons. The Department has issued two new BC Standards to newly approved Standard Drawings which will contribute to accelerated superstructure construction:

• BC 770 Steel Mid-Span Diaphragms for pre-stressed concrete beam bridges • BC 725 Precast deck slab panels

APC requested PennDOT to consider revising the structure concrete curing specifications to state that "when seven day cylinder breaks are lower than the specified seven day strength, curing must continue until seven day strength is achieved" (rather than curing must be continued for a full 28 days). The Bolt Payment Task Force reported on its conclusion that bolt payment issues can be substantially decreased if most repairs are bid “Each” as specifically detailed, with bid item to include bolts, plates and shapes as well as labor and access. A designer member of the committee suggested improvements that can be made to disc bearing standard drawings that will increase the likelihood of their use instead of pot bearings. The committee discussed inconsistencies in the use of LRFD design procedures for temporary shoring and requested the Department to clarify points of conflict. The next Bridge Committee meeting will be scheduled for January, date to be determined.

###

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board of Directors Meeting: November 19, 2014 1

DBE/EEO Committee Report

by Craig Hoogstraten, Chairman

Final Federal DBE Rule Changes Effective as of November 3, 2014

The US Department’s Final Rule, issued by Secretary Foxx on October 2, 2014, took effect November 3rd. The final rule improves DBE program implementation in three major areas.

• First, the rule revises the uniform certification application and reporting forms,

creates a uniform personal net worth (PNW) form for use by applicant owners, and collects data required by the Department’s surface transportation reauthorization, Moving Ahead for Progress in the 21st Century Act (MAP-21).

• Second, the rule strengthens the certification-related program provisions, which include adding a new section authorizing summary suspensions under specified circumstances.

• Third, the rule modifies several other program provisions concerning such subjects as: overall goal setting, good faith efforts, transit vehicle manufacturers, and counting for trucking companies.

DSP4 DB Requirements Finalized by PennDOT PennDOT has finalized changes to DSP 4 – for 100% State funded projects. With changes in Act 89, the MBE-WBE designation is replaced with DBE and DB as defined below:

Disadvantaged Business. A business that is owned or controlled by a majority of persons, not limited to members of minority groups, who are subject to racial or ethnic prejudice or cultural bias. Diverse Business (DB). A disadvantaged business, minority-owned or women-owned business or service-disabled veteran-owned or veteran-owned small business that has been certified by a third-party certifying organization and is both an ECMS Business Partner and pre-qualified, if required.

In most cases, goals will not be included on 100 percent state funding projects, rather the apparent low bidder is required to demonstrate its good faith efforts to solicit subcontractors that are DBs through the Department’s ECMS website by 3:00 P.M. prevailing local time within 7 calendar days after the bid opening. Details of the requirements of the new DSP4 and the new DSP7 resulting from the final state and federal rules will be subject of the Contract Administration Workshop Thursday afternoon.

###


PA Highway Information Association (PHIA) Submitted By:

Thomas E. Lawson, President Jason W. Wagner, Managing Director

PHIA’s Board last met on October 27, 2014. Below is a summary of that meeting and future plans for the organization. Annual Meeting/Regional Meetings At the recent board meeting, it was suggested that the 2015 meeting be moved to later in the calendar year—possibly in the early fall timeframe. The consensus was that PHIA will focus its efforts in the first six months of 2015 on conducting regional meetings occurring simultaneously when the new General Assembly is considering the first budget of the new Wolf administration. PHIA will be focused in 2015 on promoting the regional and local benefits of Act 89 and also equally working to preserve the Motor License Fund and the additional revenues Act 89 generated for the state’s highway and bridge program. PHIA’s board is concerned that policymakers may look to the MLF as a source of surplus money to help balance the state’s general fund budget deficit which some project may approach $2 billion in the FY2015 year. Beginning in January, PHIA plans to conduct a series of regional breakfast series meetings. PHIA staff will coordinate with the new administration, PennDOT leadership and local regional chambers of commerce in order to provide speakers for these meetings. Programs and Advocacy With the passage of Act 89, PHIA is moving toward a supporting role to show the public the positive benefits of greater transportation investment. PHIA has begun production of monthly videos to release to the public, media and elected officials that will contain information on the safety and quality of life benefits of transportation investment. To date, three videos have been cut and released. Several more will be completed in the 2015 calendar year. Board Changes At the recent board meeting in October, PHIA accepted the resignations of William Keen and Michael Liptak as Board of Directors. Both Keen and Liptak requested to be removed. PHIA’s board currently sits at 31 members. A nominating committee has been formed to seek a new PHIA President as Tom Lawson’s term expires in April of 2015.

# # #


APC INVESTMENT COMMITTEE REPORT

By Basil A. Shorb, Chairman

The APC Investment Committee oversees the activity of the APC Investment Portfolio managed by ECA Investment Group in accordance with the Investment Policy approved as amended May 6, 2014 by the APC Board of Directors. Committee members include Geoff Clarke, Rich Wagman, and Craig Hoogstraten. The portfolio includes the investment funds for the Associated Pennsylvania Constructors and APC Educational Trust Fund. At December 31, 2013 portfolio market value was $820,158. On September 30, 2014 the portfolio asset value was $841,159. DOMESTIC EQUITIES $388,604 46.0% INTERNATIONAL EQUITIES $158,728 19.0% FIXED INCOME $208,070 25.0% CASH EQUIVALENTS $ 77,955 9% REAL ESTATE $ 7,802 1% _______________________________________________________________ TOTAL $841,159 100.0%

###


1

APC P3 Committee

George Mezey, Trumbull Corp., Chairman The P3 Committee last met March 19. During that meeting, the Committee discussed best practices in other states. The committee also discussed H.B. 1838 (Authorization of non-transportation P3s) It was the sense of the Committee that the APC P3 forum will help educate our members. There is a service component on P3’s. APC can provide as the generic source of information. APC will also hold periodic webinars, and seminars on the subject to keep members informed. APC should hold liaison meetings with the Department on the above issues. The committee plans to meet with PennDOT in December or January to debrief on the RBRP and make suggestions for future P3 project processes. Committee Members George Mezey, Trumbull Corp., Chairman, Michael Glezer, Wagman Companies Daniel Faust, AECOM James Van Buren, James Van Buren Enterprises Seth Myers, American Infrastructure Robert Alger, Jr. Lane Construction Company Geoff Clarke, Swank Construction Company W. Wayne Willey, Gannett Fleming Leonard Bellanca, APC Bob Latham, APC

###

ASSOCIATED PENNSYLVANIA CONSTRUCTORS Board Meeting – November 19, 2014 APC BUILDING COMMITTEE REPORT

Pat Kinsley, Chairman The APC Building Committee held a teleconference meeting on November 10, 2014 for the purpose of preparing a final recommendation on restoration and repairs for the APC Building façade and parking deck/garage, as well as reviewing and approving a 2015 Building Operating Budget. Following is a summary of their actions. History. Seeking a cost-effective solution to the delamination of concrete fluting on the 5-story front and rear elevator/fire escape towers has been a challenge for the committee for several years. Additionally, the use of front loader equipment and plows for snow removal this past winter, caused additional wear and tear on the rear parking deck, as well as the vehicle and pedestrian ramps. Since the building is almost 50 years old, there has also been visual evidence of other façade maintenance issues such as cracked glazed bricks and mortar joints in need of repointing. K&H Findings. As reported at the APC Summer Board Meeting, the committee has been working with Klein & Hoffman (K&H), restoration architects and engineers, who identified a list of 19 recommended repair tasks. Their findings revealed extensive signs of corrosion in the reinforcement steel resulting in concrete spalling, joint failures between parking deck and building, much-needed replacement of backer rod and sealant around brick and window boxes, possible structural issues in the vehicle and pedestrian ramps, and pedestrian safety issues with the delamination of concrete fluting on the front of the building. An initial cost estimate prepared by K&H was in the $800,000.00 range. Contractor Cost Estimates. Over the past 3 months, the committee has sought input from three (3) building restoration contractors, with respect to their opinion of costs for budget purposes, as well as “value engineering” suggestions. One company, Houck Services, Inc., came forth with several cost-saving ideas, a low estimate of $671,200.00, and a record of quality performance on previous work done on the APC building over the past 20 years. Committee Recommendation. After much discussion, the Building Committee is recommending to the APC Board that favorable consideration be given to approving $700,000.00, with work to be done by Houck, Inc. It’s the committee’s desire that work would begin in the Spring of 2015. The committee also defers to APC Executive Vice President Bob Latham to secure the appropriate terms and conditions for the loan amount that is supportable from a cash flow standpoint and acceptable to our accounting firm. 2015 Operating Budget. The committee approved the attached building operating budget which will be incorporated into the overall APC budget for 2015.

###

ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting – November 19, 2014

Projected ProposedSubtotals of Year-to-Date Year-to-Date 2014 2014 2015

REVENUE Categories Totals Budget Budget Year-End Budget NotesRENT 263,271 267,583 321,100 311,299 300,000PARKING 44,828 55,000 66,000 53,528 50,000MISC BUILDING INCOME 3,062 - - 3,100 3,200TOTAL REVENUE 311,161 322,583 387,100 367,927 353,200 1

Projected ProposedSubtotals of Year-to-Date Year-to-Date 2014 2014 2015

EXPENDITURES Categories Totals Budget Budget Year-End Budget NotesSALARIES 24,586 24,167 29,000 29,505 29,800PAYROLL TAXES 2,353 3,333 4,000 3,000 3,000SUPPLIES 2,827 2,500 3,000 3,000 3,000 Home Depot 465 Other 549 Grainger 212 Sam's Club 1,406 Guernsey Office Supplies 195 JANITORIAL 32,193 32,500 39,000 39,000 39,000 Cleaning Service 28,479 Recycle & Trash Removal - Refuse Disposal 3,715 Other - UTILITIES 70,002 71,667 86,000 86,000 78,000 2 Electric 66,148 Gas 92 Water 3,762 REPAIRS & REHAB 19,316 25,000 30,000 26,000 28,000 Eshenaur Fuels (plumbing) 1,068 Gerst M. Buyer (painting&rehab) 12,408 Hershocks (doors & locksmith) 738 RKC Plumbing & Heating 681 James Craft (central heat & air) 929 Simplex (Sprinkler/Alarms) 446 Woodcock Electric 1,718 Other 1,327 MAINTENANCE CONTRACTS 31,193 25,000 30,000 31,000 31,000 Cummins (emergency generator) 653 ThyssenKrup (elevators) 5,555 James Craft (central heat & air) 3,103 Choice Security 509 Derr's Bulk Trash Pick-up 625 Miscellaneous 678 Northeastern Mn (window washing) 933 Outside Maintenance 8,267 Pest Control 898 RKC Plumbing & Heating 7,074 Simplex (Sprinkler/Alarms) 2,898

APC YEAR-TO-DATE 2014 & BUDGET FOR 2015December 1, 2013- September 30, 2014

Building - Revenue and Expense

ASSOCIATED PENNSYLVANIA CONSTRUCTORSBoard of Directors Meeting – November 19, 2014

Subtotals of Year-to-Date Year-to-Date 2014 2014 2015EXPENDITURES Categories Totals Budget Budget Year-End Budget NotesDEPRECIATION 65,553 66,667 80,000 78,663 80,000 PROPERTY INSURANCE 4,958 4,000 4,800 4,958 5,000 PROPERTY TAXES 138,189 116,667 140,000 138,189 140,000 MISCELLANEOUS 4,331 2,417 2,900 4,722 4,500 TOTAL BUILDING EXPENDITURES 395,502 373,917 448,700 444,037 441,300

NET INCOME (NET LOSS) (84,341) (51,333) (61,600) (76,110) (88,100) 3

Notes:1. Considering depressed real estate office rentals in downtown Harrisburg, rent & parking revenues are expected to remain flat. Misc building income is derived from tenant rentals of APC Board Room.2. Unoccupied space HVAC & lighting has been cutback, thus budgeting less utility expense.3. Net Loss. Building occupancy is currently at 77%. Two or three new tenants in 2015 could erase this loss. Also need to recognize that APC does not pay rent for its 5th floor offices, conference room, and on-preimse parking for staff and APC members. This represents an approximate $120,000.00 annual expense savings. to the Association.


Notes 2013 2014ASSETS

CASH AND INVESTMENTS 978,404.40 1,016,120.49

Dues Receivable - Active 16,517.00 22,468.73Dues Receivable - Associate 7,900.00 3,400.00Dues Receivable - Affiliates 31,595.00 5,361.00Other Association Receivables 1 720,913.32 778,834.85TOTAL ACCOUNTS RECEIVABLE 776,925.32 810,064.58

Prepaid assets 52,496.36 51,188.10TOTAL CURRENT ASSETS 1,807,826.08 1,877,373.17

Real estate purchases 406,799.30 406,799.30Building 1,859,960.92 1,859,960.92Renovations 1,477,507.14 1,496,405.89Office equipment 410,703.12 403,348.12Vehicles 132,976.37 132,976.37TOTAL PROPERTY, PLANT & EQUIPMENT 4,287,946.85 4,299,490.60

Accumulated Depreciation (3,355,215.22) (3,422,615.55)NET PROPERTY, PLANT & EQUIPMENT 932,731.63 876,875.05

Investment - Controlled Corp. 2 (272,491.00) (579,966.00)

TOTAL ASSETS 2,468,066.71 2,174,282.22

LIABILITIES AND NET WORTH

Accounts payable 62,720.67 69,358.71Accrued expenses 14,896.46 22,871.14Deferred revenue - dues 153,955.10 149,235.32Deferred revenue - other 13,360.55 10,638.22TOTAL CURRENT LIABILITIES 244,932.78 252,103.39

Post Retirement Health Insurance 3 252,193.00 219,804.00Notes Payable - Integrity Bank 4 250,000.00 250,000.00TOTAL LONG-TERM LIABILITIES 502,193.00 469,804.00

TOTAL LIABILITIES 747,125.78 721,907.39

NET WORTH 1,720,940.93 1,452,374.83

TOTAL LIABILITIES AND NET WORTH 2,468,066.71 2,174,282.22

ASSOCIATED PENNSYLVANIA CONSTRUCTORSBalance Sheet

September 30, 2014

1


2013 2014 2014 2015REVENUES Notes Year End Proj Year End Budget BudgetACTIVE DUES 5 454,702 447,135 446,627 445,000 AFFILIATE DUES 6 252,248 229,054 235,842 230,000 ASSOCIATE DUES 185,250 186,376 182,250 176,000 ARTBA ASSOCIATE DUES 17,850 19,950 17,500 20,000 TOTAL DUES REVENUE 910,050 882,515 882,219 871,000

BULLETINS 8,325 8,245 7,900 8,000 HWY BUILDER/DIRECTORY ADS 176,381 200,000 165,000 185,000 FALL CONFERENCE 439,540 470,000 350,000 430,000 SEMINARS/MEETINGS 76,099 92,803 55,000 85,000 TCI-PAC 30,700 26,000 30,000 30,000 INTEREST/DIVIDENDS 21,553 17,937 20,000 20,000 INVESTMENTS - GAIN/LOSS 7 91,095 21,500 60,000 30,000 MISC. REVENUE 6,658 3,598 6,000 3,500 TOTAL OTHER REVENUE 850,351 840,083 693,900 791,500

APC BUILDING REVENUE 8 401,707 367,927 387,100 353,200 TOTAL REVENUE 2,162,108 2,090,525 1,963,219 2,015,700

2013 2014 2014 2013EXPENDITURES Year-to-Date Year-to-Date Budget BudgetSALARIES 9 530,657 560,900 540,000 572,000 PAYROLL TAXES 30,243 34,000 35,000 35,000 INSURANCE-FRINGE BENEFITS 66,491 86,000 70,000 95,000 401(K) 27,176 38,179 28,000 38,500 INSURANCE-RISK MANAGEMENT 13,950 12,000 * 14,000 12,500 OFFICE SUPPLIES 35,638 30,000 40,000 29,000 INTEREST EXPENSE 2,524 3,838 0 2,800 INFORMATION TECHNOLOGY 12,525 7,000 * 11,000 9,000 WEBSITE 1,425 2,307 2,000 2,000 PUBLICATIONS 85,146 94,000 90,000 90,000 POSTAGE 5,583 5,000 6,000 4,500 TELEPHONE/FAX 8,384 5,500 * 8,000 7,000 TRAVEL/AUTO 11,233 12,000 10,000 11,000 EDUCATION 1,960 325 * 5,000 3,500 PUBLIC AFFAIRS 26,347 26,000 25,000 25,000 ARTBA DUES 200,000 200,000 200,000 200,000 DUES & SUBSCRIPTIONS 14,160 15,000 13,000 13,000 PROCESSING FEES 10 9,077 14,000 0 10,500 PROFESSIONAL SERVICES 46,943 54,000 * 68,000 60,000 NATIONAL MEETINGS 7,638 9,000 6,000 9,000 FALL & SAFETY CONFERENCES 222,887 235,000 195,000 235,000 SEMINARS/MEETINGS 11 113,254 68,000 70,000 105,000 TCI-PAC 12 23,629 20,384 23,000 20,000

December 1- September 30, 2014APC YEAR-TO-DATE VS. BUDGET FOR 2014

2


December 1- September 30, 2014APC YEAR-TO-DATE VS. BUDGET FOR 2014

2013 2014 2014 2013EXPENDITURES (continued) Year-to-Date Year-to-Date Budget BudgetBUILDING LOAN PAYMENT 13 0 0 0 80,000 BAD DEBTS 47,026 33,502 22,000 25,000 MISCELLANEOUS 0 4,711 1,000 2,000 DEPRECIATION 10,855 12,200 * 15,000 3,300 TOTAL 1,554,751 1,582,846 1,497,000 1,699,600

BUILDING EXPENDITURESSALARIES 28,864 29,505 29,000 29,800PAYROLL TAXES 2,625 3,000 4,000 3,000SUPPLIES 3,178 3,000 3,000 3,000JANITORIAL 38,367 39,000 39,000 39,000UTILITIES 76,426 86,000 86,000 78,000REPAIRS 22,466 26,000 30,000 28,000MAINTENANCE CONTRACTS 32,677 31,000 30,000 31,000DEPRECIATION 75,866 78,663 80,000 80,000PROPERTY INSURANCE 4,743 4,958 4,800 5,000PROPERTY TAXES 138,189 138,189 140,000 140,000MISCELLANEOUS 3,390 4,722 2,900 4,500TOTAL BUILDING EXPENDITURES 426,791 444,037 448,700 441,300

TOTAL EXPENDITURES 1,981,542 2,026,883 1,945,700 2,140,900NET INCOME (NET LOSS) 180,566 63,642 17,519 (125,200)

LESS DEPRECIATION (CASH FLOW) 267,287 154,505 112,519 (41,900)

MINUS INVESTMENT GAIN (LOSS) 176,192 133,005 52,519 (71,900)

*Allocated Amounts


APC YTD v Budget December 1, 2013 – November 30, 2014

Notes

1. Reflects receivables to APC from prior loans from APC to the Educational Trust Fund.

2. Assets of Highway Education Foundation, the Educational Trust Fund and PHIA at year end 2012 and 2013. Balance sheet figure remains constant during the fiscal year.

3. Post-Retirement figure liability annually by actuary.

4. Short-term unsecured loan taken from Integrity Bank LOC for cash flow purposes. 2013

line was repaid by January 31, 2014.

5. Annual Direct Active Contractor Member dues billings. Dues volume is based on awards from July 1, 2013 to July 1, 2014. PennDOT and PTC volume lagging funding increase.

6. Annual Affiliate Contractor Member dues billings. See note above.

7. Annual audit statement combines Interest and Investment line items.

8. Anticipated decrease in rental income due to loss and downsizing of tenants. Some

renegotiated leases occurred in 2011. Building occupancy is 77%, which is an historical low for the APC Building. See Building Committee Report.

9. 2014 Salary Year End includes one time performance bonuses.

10. Fees assessed for processing credit card payments. 11. 2015 Budget includes Annual CAWP/APC Joint meeting in Key West. No Joint meeting

held in 2014 due to Con-Expo. 12. TCI-PAC operations budget – does not include political contributions.

13. Annual payments for note on proposed building repairs.

####

a g e n d a i. call to order ii. recommended actions · 2014-11-13 · artba report (ruane) – •...

Documents