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Suit-Quotes Spring 2017 1 Suit-Kote First to Complete Large Scale SAMI Interstate Project SPRING 2017

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Page 1: Suit-Kote First to Complete Large Scale SAMI Interstate ... · Suit-Kote First to Complete Large Scale SAMI Interstate Project SPRING 2017. 2 Suit-Kote Corporation Winter stuck around

Suit-Quotes Spring 2017 1

Suit-Kote First to Complete Large Scale SAMI Interstate Project

SPRING 2017

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Winter stuck around a little longer than usual this year, which slowed down the start of our work season. Despite battling unpleasant weather conditions, when the temperature began to rise and the sun slowly began to shine, we were ready to get started.

During the off season we took advantage of the downtime to retool and reeducate employees across the Company. Many different training programs were conducted in the areas of safety, human resources, equipment operation, and supervisor leadership. We are proud of the progress that we have made and understand that learning and education is essential for the continued success of Suit-Kote. We remain committed to providing our employees with the necessary resources, to ensure

continued development of skills that provide opportunities for advancement and contribute to the betterment of Suit-Kote. As you will see in the pages of this newsletter, Suit-Kote is at a turning point between the past and the future. Where we go from here and how we get there is dependent on a vision of our future and the dedication of our employees to assist in achieving our goals. Throughout the last couple of decades, the Company has grown in size, employees, geography, and technology. We have not stood still in our ever changing industry, instead, we have adopted a managed growth approach, which has served us well. Now that we have grown to our current size, we must alter our course slightly, to enable us to seize the incredible opportunities before us. We must make changes to our current management structure and develop a succession strategy for the next generation of leaders. Suit-Kote is fortunate to have so many qualified and dedicated people to carry us to the next level. We will also need to recruit and develop others from outside the organization to help us maximize our potential, but make no mistake this organization will succeed and thrive, because of those who have dedicated their professional careers and helped to make us what we are today. When change occurs, it can bring with it an uncertainty, as well as, create a fertile ground for the imagination to run wild. Admittedly, there are many rumors that serve to consume the thoughts of many. I want to take a moment to dispel some of those inaccuracies. Suit-Kote is dedicated to its privately owned, vertically integrated business model. We will forever be dedicated to purchasing asphalt, manufacturing asphalt emulsion, applying our products and processes to the road, staying on the cutting edge of industry innovation, and possessing the best, most qualified work force around. We share the same commitment for each of our divisions and intend to provide the necessary leadership and resources to make them even better than they are today. Currently, Suit-Kote Corporation is in the best shape it has ever been in, both fiscally and structurally. We are well positioned to grow and reach our true potential, but we will not accomplish that dream without each and every one of you. We are at a turning point between what we are today and what we will become. As President and CEO of this Corporation, I choose to dream big and aim high, when it comes to tomorrow. I have witnessed amazing accomplishments by all of you over the years and I am convinced the only thing that can stop us, is not believing in each other. I believe in you and I hope that you will not let this turning point sap your belief in me. Great opportunity lies ahead, now lets go take advantage of it together!

President’s Perspective FRANK SUITS, Jr.

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4. Employee Intracompany Transfer Program 62% of applicants find success

5. Suit-Kote Welcomes Frank Cawkell Former Exxon-Mobil Americas Asphalt Manager joins the team

6. News From Around the Company What’s new(s) in the Suit-Kote family

8. Jamestown Shop Grand Opening The facility gets a state-of-the-art makeover

9. AGC NYS Takes on Government Regulations Challenges two business crippling regulations in court

10. The Largest SAMI Project in New York State History Suit-Kote teams up with Region 3 to slow reflective cracking

12. Safety Spotlight Safety committee is formed to improve workplace safety

13. Employee Handbook Policy Changes A highlight of some of the policy changes for 2017

14. Suit-Kote Unveils New Trakstar Program New employee evaluation process

15. Prevailing Waste Empire Center gets a look behind the curtain of prevailing wage

16. CHIPS Funding Hits Another Record High State increases funding for the fifth straight year

17. Project C.U.R.E. Suit-Kote teams up to help Project C.U.R.E.

18. Route 318 in Seneca County Gets Rescued Longitudinal joint repair flex product saves the day

19. A New Facility in Caledonia, NY is Almost Ready Caledonia is set to fill the void left by the closing of Rochester

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Intracompany Transfer Program Success

The second year of our intracompany transfer program is now over, and it once again proved to be a huge success.

In all, sixty current Suit-Kote employees applied for open positions this offseason. Many employees applied for multiple open positions across all divisions of the Company. Of those sixty applicants, thirty-seven of them were chosen for a new position. Two individuals declined the offer, but thirty-five of them accepted the new role.

A main component to our program is any employee who applies will be granted an interview for the position. We are proud to report that each employee was contacted and offered an opportunity to interview, but in some rare cases applicants declined.

In just our second year, internal applicants were chosen for intracompany transfers at a rate of 62%. In pursuit of finding the most qualified men and women to fill vital roles at Suit-Kote, we did not have to look very far. Nearly all of the positions filled were well above what could be considered entry level giving everyone who applied an opportunity to grow within the Company.

It is our intention to keep this program up and

running well into the future because it is important for everyone to understand this Company will reward hard work and dedication. We want to develop individuals to work as a team to help Suit-Kote reach its full potential.

In recent years we have gone to great lengths to create opportunity for those who are willing to work hard and improve their skills. Over the next few years we will continue to implement programs designed to increase opportunity and identify the leaders of tomorrow.

Internal applicants were chosen for intracompany transfer at a rate of 62%.

Another Satisfied Customer

Eric Hill’s Cold-in-Place Recycling crew gets a surprise from a happy resident.

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Suit-Kote is proud to welcome Frank Cawkell to the Company. Frank is a major part of our organizational structure transition. He is a skilled professional who has worked with Suit-Kote for much of the last decade when

he headed up the asphalt division for ExxonMobil’s Canadian operation known as Imperial Oil. In December of 2016, Mr. Cawkell decided to retire from Exxon after a thirty-six year career. His tenure at Exxon began in 1982 as a process control design engineer at the Dartmouth Refinery. He would go on to hold many different positions at the refinery in the areas of plant engineering, economics, scheduling and optimization. Frank gained an understanding of the oil industry from the ground up and used this knowledge to develop a career path with Exxon that took him all across the world. He spent time in the Crude and Products Supply and Trading division of the company as well as a stint as an internal auditor. Soon he would move into the Sales and Marketing division and it is here where he found his true calling and passion. Cawkell’s rise accelerated from Canadian Aviation Manager to Canadian Wholesale Fuels Manager until finally reaching the pinnacle, becoming the Americas Asphalt Manager. It was in this role that he developed the asphalt business strategy for ExxonMobil which is used today in their operations around the globe. Frank Suits, Jr. was delighted to have the opportunity to bring Frank Cawkell on board. “Frank has a fundamentally strong background in Asphalt and Petroleum Products – specifically from his more than three decade tenure with Imperial Oil (ExxonMobil Canada),” said Frank Suits, Jr. “He will bring to Suit-

Kote a proven management style – that combines strategic planning for Suit-Kote with a strong focus on management development of our younger leaders.” Many people at Suit-Kote have witnessed Mr. Cawkell’s abilities and business acumen first hand over the last several years as a customer of Imperial Oil /ExxonMobil and are excited to be able to work with him on the same side. In addition to his other accomplishments, he is also recognized as one of the asphalt industry’s top executives by the world renowned Asphalt Institute. His knowledge and experience is rivaled by few anywhere in North America and we are fortunate to be able to bring him on at such an important time in our history. After Mr. Cawkell retired from Exxon he was courted by many different companies inside and outside of the Asphalt industry. He decided to accept an opportunity to work with Suit-Kote because of our culture. “I have always been impressed by the culture of Suit-Kote,” said Cawkell. “There is so much opportunity out there and this Company is well positioned to capitalize on it. The culture combined with a strong set of values is what sets this Company apart from so many others. I am honored to be a part of shaping the future of the company.” We are very pleased Suit-Kote is fortunate to have this opportunity to bring a proven leader who has an astute understanding of our specialized industry into our management team. His professional experience is unique and is a perfect fit for Suit-Kote. His mentoring and leadership abilities will no doubt pay dividends to current and future leaders of Suit-Kote. Frank Cawkell holds a Bachelor of Applied Science in Chemical Engineering from the University of Waterloo, Canada. He also has a Masters of Business Administration ( MBA) from Dalhousie University in Halifax, Nova Scotia. He is an avid hockey fan and coached youth hockey in Canada for nearly twenty-five years. He currently resides in Richmond Hill, Ontario (Suburb of Toronto) with his wife, Cathy. They have four grown Children ages 30, 28, 25 & 22.

Suit-Kote Brings on New LeaderFrank Cawkell joins the team

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In MemoriamRichard G. Thorington, 82, of Fisher Ave., Cortland, passed away following a brief illness on March 9, 2017 in Upstate Medical Center, Syracuse.

He was born September 21, 1934 in Cortland, a son of the late Alfred and Velma Soules Thorington.

He started work for Suit-Kote in the early 1970’s, and was waiting to be called back to work this spring before becoming ill.

To say Dick was a family man is an understatement. He loved his large and extended family very much, especially his wife, Kathi L. Wood Thorington, his children, grandchildren, brothers, sisters, nieces, nephews and his Suit-Kote ‘family’.

Mr. Thorington loved horses and his family would appreciate memorial contributions in his name be directed to an Equine Therapy Program of your choosing or to the charity of your choice.

Dennis R. Ohman, 67, of 17680 Peninsula Drive, Meadville, passed away Monday, March 27, 2017, at home.

Dennis was born in Jamestown, NY on January 12, 1950, a son of the late Eugene and Thelma (Newbree) Ohman.

On April 12, 1975 Dennis married Karen L. Orr; she survives.

Dennis was employed by Suit-Kote as a truck driver and was also employed by Crawford County Human Services for more than 20 years. A US Veteran of the Marine Corps, Dennis served his country from June 19, 1969 until his honorable discharge on June 14, 1971. He attended schools in Jamestown, NY and received his diploma from PENNCREST School District. He was a member of VFW Post #2006. Dennis enjoyed playing cards, riding bikes and tinkering to either improve or repair something.

In addition to his wife Karen of 41 years, Dennis is survived by a son Michael Ohman, his wife Lisa and their son Hudson of Tennessee, a daughter Pamela Ohman and her children Tayten and Kylan of NJ, two sisters Linda Riffel and her husband Dennis R. of Kennedy, NY, Sandra Dowd and her husband Dennis R. of West Ellicott, NY, several nieces, nephews, great nieces and great nephews.

Dennis was preceded in death by his parents, Eugene and Thelma Ohman.

Bon VoyagePlease join me in extending best wishes to Jim “Fitzy” Fitzpatrick, who retired from Suit-Kote on May 31st. Fitzy has been a valued member of the Suit-Kote family since he joined us in 2007. Announcements like this bring with it mixed emotions – happiness for Jim who can now pursue his favorite interests in retirement and sadness that we will no longer get to experience his cheery personality. He will truly be missed. Best of luck Fitzy and may you enjoy every day of retirement– you have certainly earned it!

Jim Rice has decided to retire after spending seventeen years as a laborer/flagger. He represented our company well and we wish him the very best.

Nancy Chase was a mainstay with the Company for nearly twenty six years. She worked in our accounting department and was a dedicated member of the team. Nancy will be missed by all of those who had the pleasure to work with her over the years.

Dottie Lingner was hired more than twenty years ago. Between her and her former supervisor, Larry Preston they formed one of the longest serving duos in Company history. Dottie retired at the beginning of the season after spending quite a bit of time struggling over the decision. She gave so much to Suit-Kote and we are sure her leaving was not an easy call. Good luck Dottie and enjoy your retirement.

For Paul Miller, Suit-Kote was the last stop on a long career. Prior to working for our Belmont facility, Paul put in twenty years with the Town of Hume. His last thirteen with the town were as the Town Highway Superintendent. After retiring from the Town of Hume, Paul worked for the Federal Agency, Southern Tier West, which is the planning board of the Appalachian Regional Commission.

While at Suit-Kote Paul Miller was instrumental in building the marketplace in Elk (PA), McKean (PA), Potter (PA) and Allegany (NY) counties. He and wife Rondus will now have more time to spend with their four grandchildren and one great grand child.

Steve Schoonover, know to most as “Schoonie” dedicated his professional career to Suit-Kote. Schoonie developed into one of the best operators in the Company and has probably forgot more about his machines than most people will ever know. We wish you the very best!

News from around the company

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Welcome AboardBrian Pepper has joined our sales and marketing division as a market analyst. Brian previously worked in the insurance industry at McNeil and Company. He is a native of Homer, NY. He is a graduate of SUNY Brockport and brings with him a tremendous skill set. He is working closely with our sales department learning our markets and the economics that goes into our bidding process. Brian was married last fall to the former Meghan Finn. They are expecting their first child in October.

Richie Volpe is our new sales person representing us in Montgomery and Schoharie Counties. Richie is a former highway superintendent and has a tremendous amount of experience in maintaining roads and understanding municipal budgeting. He will split time between our Oneonta and Oriskany facilities and will be responsible for sales and working with our operations divisions at each location.

Paul Diely is our new dispatch supervisor in Oriskany. Prior to joining Suit-Kote he was the store manager for Advance Auto for 11 years where he oversaw the complete operation of the business. He and his wife Julie reside in Lee Center, NY and have two kids Todd (10) and Jolene (15).

Cathy Perham joins Suit-Kote as our new administrative assistant in Oriskany after a 16 year career with Rome Strip Steel. Recently, her previous employer sold the business to the Worthington Industries. Cathy served as an administrative assistant and purchasing coordinator until her departure. While working for a brief time for Worthington, she missed the family owned business atmosphere and looked for a company that felt more like home. Welcome to the Suit-Kote family Cathy. When she is not working she is likely to be found driving her vintage 1971 Volkswagon Bug to the golf course for a round of 18 holes.

Jamie Sesar joins our Bentleyville operation as an administrative assistant. Jamie worked for us last year as a temporary employee, but was retained at the beginning of this season as a full time Suit-Kote employee.

Danielle Gower has joined Suit-Kote as an accounts payable clerk. She previously worked as an environmental testing laboratory named Microback. She is a Cincinnatus native and recent graduate of Morrisville College where she studied equine science. Her degree has been very helpful to her and her family because they are avid horse lovers and own several of them.

Kara Ingram is a new accounts payable clerk who was an administrative assistant with the Ithaca Board of Realtors before joining Suit-Kote. Kara attended the College of DuPage, Illinois and holds a Patient Care Tech license from the JCM Institute. She

spent most of her childhood in West Palm Beach, Florida until 2003 when she moved to Illinois. She loves to hunt, fish and chase her children around.

CongratulationsCongratulations to Emily and Matthew Finn - they are expecting their first child on November 2nd! We are so happy for you both.

Former Suit-Kote employee Michael Gates recently graduated from the police academy and was sworn in as a Cortland County Deputy Sheriff. We are proud of you Officer Gates and please no tickets!!!

To See the Future, We Must Understand the Past by Brent Hall

We wanted to provide a little historical data to remind us all where we have come from and give a preview of an anticipated busy 2017 construction season.

Neat Asphalt sales Tons:2015 – 267,000 2016 – 318,0002017 – 322,000 (estimated)

Modified Sales Tons:2015 – 75,0002016 – 63,9002017 – 108,000

Emulsion production in gallons:2015 – 42 million2016 – 48.5 million2017 – 60 million (estimated)

Railcars received by Suit-Kote:2015 – 32992016 – 45092017 – 4500 (estimated)

Barges received:2015 – 152016 – 162017 – 20+ (estimated)

Total tons moved by Suit-Kote2015 – 451,2002016 – 508,0002017 – 586,000 (estimated)

We will move the equivalent volume of 300 Olympic swimming pools of asphalt this year! Or another way to look at it around the same amount as 293,000,000 2 Liter bottles of soda!!

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Every year, Memorial Day weekend ushers in a new beginning. Bringing a hopeful look ahead as Summer is almost here. This year Suit-Kote Jamestown chose to kick off the holiday weekend with a grand opening of its new 17,000 square foot facility.

Over the years, Suit-Kote Jamestown grew in service area and volume. It is a central hub of the Company’s Western New York and Pennsylvania operations. Due to the expanded responsibility and work, the Suit-Kote Board of Directors decided to make a large investment into upgrading the facility.

In 2015, the idea of building a new state-of-the-art facility was born, but in order to bring it to reality, Suit-Kote would need to acquire three acres of land adjacent to the current facility. In addition, it would require the demolition of a building that stood on the property for many decades.

Prior to moving forward with the project, Suit-Kote met with city and county officials about the concept of investing in Jamestown. Local officials were very receptive to the idea and immediately contacted the Chautauqua County Industrial Development Agency (IDA) to assist. Through the cooperative effort between Suit-Kote and the IDA, a tax lease and payment in lieu of taxes agreement was reached allowing the project to go forward.

On the Friday of Memorial Day weekend, local dignitaries and Suit-Kote officials were on hand to take part in a ribbon cutting ceremony. This event was the culmination of nearly three years of planning, demolition and construction.

Speaking to reporters at the ceremony, Frank Suits, Jr. said “We’re located in many communities throughout the state, and honestly, I’m not accustomed to being treated with this much support. Just

from a pure cooperation perspective, I think Chautauqua County and the city of Jamestown are certainly pointing out to Suit-Kote that we’re welcomed in this community. Our Company is extremely proud to be involved in the community.”

It was obvious to those in attendance, this project was a shining example of government cooperating with private business for the betterment of the community. Unfortunately, this is not the case in many other parts of New York.

Jamestown Mayor Sam Teresi complimented Suit-Kote for being an excellent corporate neighbor and for also stepping up to revitalize this particular area that was in need of a partner willing to restore it to productive use.

“We’re proud to house them here in the community and we’re also very happy to be a good customer,” said Mayor Teresi. “The purpose of their product is to extend the useful life of asphalt streets. The product works well.”

Chautauqua County Executive Vince Horrigan credited the IDA Business Development Manager Carol Rasmussen for her dedication and support of this project.

“This is about coming together to support business because that’s what it is all about in Chautauqua County,” Horrigan said.

The new Jamestown facility is now open for business - on time. Suit-Kote is grateful to Gary Risley, Darin Smith and others who worked so hard to turn this vision into a reality.

Jamestown ShopGrand Opening

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AGC NYS Stands upChallenges MWBE & Project Labor Agreement

The Associated General Contractors of New York State (AGC NYS) recently

filed two court cases that, if successful, could change the way business is done in New York State.

Under the leadership of AGC NYS President Mike Elmendorf, this organization has embarked on a mission to fight for the rights of taxpayers, employees and companies who operate in the construction industry.

Over the last two months, AGC NYS has decided to challenge two regulations foisted upon the industry by the State of New York. In the first case, AGC NYS Files Suit Against Five State Agencies to Highlight an Illegal Administration of Women and Minority Business Enterprise Program (MWBE).

The MWBE program has been problematic to virtually every company in the construction industry. The way the program works is it attempts to force companies who are awarded public works projects into farming out up to 30% of their work to other businesses who qualify for special treatment under the MWBE program.

For example, let’s look at a typical slurry seal project in which Suit-Kote was the lowest qualified bidder. In this case, Suit-Kote mines the aggregate, manufactures the asphalt emulsion, trucks the materials, prepares the road surface and applies the finished product to the road. Essentially, this vertically integrated business model does not leave anything to subcontract out.

One would think in situations like this, logic might prevail and allow for a waiver of this regulation. Not so, instead the government agency in charge oftentimes forces companies to displace their own workers to hire somebody else who qualifies as a MWBE.

The 30% threshold set by this regulation is actually not a mandate thanks to a United States Supreme Court decision that found this practice unconstitutional. Unfortunately, this finding did not discourage New York’s politically driven leadership, instead they simply changed direction slightly. Instead of mandating this regulation, they changed the wording from quota to goal. Giving the appearance that

companies would only need to make a good faith effort to try and use WMBE approved organizations. However, in reality the hurdles are much higher.

Suit-Kote has run into the enforcement of this “goal” several times and almost went to court to protect the jobs of its workers. But, amazingly government officials have a fail safe to prevent employers from suing, they simply pull the project and do not complete the work leaving affected companies with no recourse.

Industries like road construction and maintenance are highly specialized. In the case of Suit-Kote, it takes years of learning and working to understand how to work with the many different materials used to maintain roads. Being forced to use companies who are not accustomed to these products is a losing proposition for the taxpayers, motorists and the displaced highly skilled Suit-Kote workers.

In the second case AGC NYS joined with eight Member Firms in a Joint Suit Challenging Thruway Project Labor Agreement (PLA) Mandate. PLA’s are a regulation designed to protect union workers from having to bid for work. A PLA, in most cases mandates a successful bidder, whether union or non-union to use organized labor. Just like in the WMBE case it forces non-union companies to displace their own workers to use those from the union hall. Of course proponents of PLA’s say non-union employees are allowed to work, but in most cases the contract requires four union employees to be hired for every one nonunion worker - and to make matters worse, nonunion employees are required to pay union dues while on the project. Now that seems fair, right?

Unfortunately, this case was dismissed by Supreme Court Judge Greg Gilbert using a legal technicality and is currently being appealed. This is an obstacle in the fight, but the fight for fairness will not end here.

In today’s society there seems to be a “knee-jerk” compulsion to do what is politically correct instead of what is right. These two cases are prime examples of this and thankfully AGC NYS is finally standing up and fighting against these politically expedient regulations. We applaud their efforts and wish them luck!

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Upstate New Yorker’s know a lot about reflective cracking on the Interstate. They may not know the technical name or how it happens, but they do know the feeling cruising down the highway only to be interrupted intermittently by bumps in the road. Depending on how long they have been there, they can be rather disruptive to the driving experience.

Due to the fact that Interstate’s like I-81 have a concrete base the likelihood of the reflective cracks making their way to the surface every one to three years is almost a certainty. This is a constant concern for New York State Department of Transportation (NYSDOT) officials and they are always trying to figure out a new way to alleviate this problem.

The conventional solution for this type of problem would start with removing all of the asphalt atop the concrete. Then use heavy machinery to break up or rubblize the concrete base. The final stages would include applying a base, binder and top course and voila - problem solved. This solution seems easy enough, but there is one problem, it is very expensive.

In 2015, before the start of the I-81 resurfacing project set to address reflective cracking from the Onondaga County line south to Polkville, NYSDOT Regional Materials Engineer Tom McPhilmy approached Suit-Kote officials about using a stress absorbing membrane (SAMI). With dwindling financial resources available, Mr. McPhilmy along with

fellow NYSDOT Region 3 Construction Engineer Sidney Kaine, P.E., decided to try and think outside the box to find a cost effective method for solving this perennial problem.

The SAMI project idea was proposed to NYSDOT Region 3 Director Thomas Smith, P.E. Soon after, Director Smith greenlit the project and Suit-Kote won the competitive bid.

The project began in the summer of 2016 and is scheduled to be completed in the fall of 2017. The crew milled out three inches of blacktop for the mainline and one and a half inches from the shoulder.

After the milling, tack coat was applied along with a newly formulated joint adhesive. One and a half inches of SAMI was laid on top of the tack coat and one and a half inches of 9.5 mm hot mix asphalt placed over the mainline and the shoulders.

A SAMI SolutionA new approach to slow reflective cracking

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The mix design called for the use of 76E -28 asphalt, crushed gravel and crushed sand in the top course. However, prior to applying the SAMI underneath, the mix formulation was sent to an independent laboratory for testing. The NYSDOT wanted to verify the SAMI met all of the specialized structural and flexibility standards.

In addition to the highly specialized materials, Suit-Kote also employed special plant mixing procedures as well as project specific paving and rolling techniques. Suit-Kote’s Construction division crew was constantly studying the

results and were able to make on-the-fly decisions to allow this project to reach its full potential.

This new approach to repair a surface with an old deteriorating concrete pavement base could start a new cost effective trend in New York. It is expected to retard reflective cracking by anywhere from six to eight years more than tripling the results of a simple mill and pave.

When completed this Fall the project will have milled 865,000 square yards and placed 42,000 tons of SAMI, 72,000 tons of 9.5 mm top course, 143,000 gallons of tack coat and 1,020,000 linear feet of joint adhesive making this I-81 SAMI project the largest of its kind ever attempted in New York.

With the eyes of an entire state focused on the results of this job we are excited about the future use of this product and confident the taxpayers got their money’s worth!

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By Josh Lynn & Ryan DuBoisAs we continue to grow and evolve as a company, the Safety Department is constantly looking for ways to improve the safety culture. Safety culture can be defined as a set of core values and behaviors that emphasize safety as an overriding priority. Suit-Kote Corporation has made great strides over the last 30 years in improving our safety culture; however we believe there is still room for improvement.

A growing trend within the construction and manufacturing industry is the development of a “Safety Committee” as a method to improve the overall workplace safety. Suit-Kote has decided to develop a safety committee. The primary goal of the committee is to provide a forum where safety driven committee members can hold educational, insightful and productive discussions to address global and individual safety concerns that exist throughout Suit-Kote.

A strong and successful safety committee begins with the dedicated, forward thinking and safety conscious employees who serve on that safety committee. We also wanted this committee to be as diverse as possible. For this reason, this committee is not composed of just foreman or just road crew employees. This committee is a thorough representation of the vertically integrated company we truly are.

Members are asked to serve on the committee for one year, but can serve more than one year. Remember the goal of this committee is to address safety concerns throughout Suit-Kote. Committee members are proud to serve on this committee and take their commitment seriously.

The executive leaders of our organization discussed who should represent the inaugural class and chose the following employees to represent their respective divisions throughout the 2017 season:

Frank Suits, Ryan DuBois, Josh Lynn, Paige Howell, Louis Morgan, Brian Monroe, Greg McCartney, Derek Bump, Brennan Bezon, Robert Cobb, Ken Mowers, Darin Smith, Harvey Anderson, Jake Eggleston, Al Paquin, Don Knickerbocker, Dana Sherman, TJ Law and Don Niver.

Topics will vary and will come from all members of the committee. In other words, the committee wants to hear

your concerns, your safety issues and your opinions. If you are not on the committee but feel as though you have a topic that needs to be addressed or discussed; please reach out to one of the members above! Your topic can be specific to the division you work in or general in nature. Some of the early discussions at these meetings have included: • Developing a Protocol for Converting Emulsion Trailers to Asphalt Trailers • Recent Fatalities Involving The Handling of Cutback • Reducing Explosion Potential Around Suit-Kote • OSHA and MSHA Inspections • Fire Department Facility Tours • Developing a Temporary Traffic Control Checklist • Backing Incidents and Solutions • Electronic Logging Devices • Container Labeling

Anyone that is interested in joining the Suit-Kote Safety Committee in 2018 is more than welcome to contact the Safety Department to express their interest.

A Year in ReviewBy Alexis DrummWhen I started at Suit-Kote nearly a year ago, I had no idea what I might walk into. I thought “how many regulations can there possibly be that relate to paving roads?” Well I have been completely surprised to find out that Suit-Kote doesn’t just simply “pave roads” and furthermore, there are a lot of governing regulations! I have spent the last year learning about the industry and the applicable regulations. At the same time, I have been working to efficiently implement improvements to maintain compliance and to keep up with the ever-changing regulations. This has been challenging, satisfying, interesting, enjoyable and, at times, frustrating. Thankfully, I have had so much support along the way. The people I have met across the company have been amazing and tremendously helpful; I know I can count on anyone to lend me a hand when it comes to anything from a quick question to a major improvement project. I sincerely appreciate everyone’s eagerness to maintain compliance and I look forward to continuing to navigate through the regulatory world.

Safety SpotlightSafety committee formed

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2017 Policy Changes

At the end of every year the Human Resources Department conducts an employee handbook review. The purpose of this review is to update policies and make the many necessary changes to comply with the ever changing laws.

As you will see, we have made a few additions and updates to our handbook. We have attempted to highlight them so you are aware of the changes. If you would like to read each of these policies in full, you will find a copy at any of our offices, it is located on the Suit-Kote internal “P” drive. Soon Human Resources will be sending out a current copy via email to all employees who have furnished a valid address.

Bone MarrowEmployees who typically work an average of 20 or more hours per week may take up to twenty-four (24) unpaid work hours of leave to undergo a medical procedure to donate bone marrow.

Employees are required to provide a physician’s verification regarding the purpose and length of each leave. 

EthicsA company’s reputation for integrity is its most valuable asset and is directly related to the conduct of its officers and other employees. Therefore, employees must refrain from any activity, or having any financial interest, that is inconsistent with the Company’s best interest, and also must refrain from activities, investments or associations that compete with the Company, interfere with one’s judgment concerning the Company’s best interests, or exploit one’s position with the Company for personal gains...

...Employees of the Company shall conduct their personal affairs such that their duties and responsibilities to the Company are not jeopardized and/or legal questions do not arise with respect to their association or work with the Company.

Employment of RelativesSuit-Kote will consider a member of an employee’s immediate family for employment if the applicant possesses all of the qualifications for employment for the position.

An immediate family member may not be hired, however, if the employment would create either a direct or indirect supervisor/subordinate relationship with a family member or create an actual conflict of interest or the appearance of a conflict of interest. These criteria will also be considered when assigning, transferring or promoting an employee. For purposes of this policy, “immediate family” includes the employee’s spouse, brother, sister, mother, father, stepmother,

stepfather, children, stepchildren, father-in-law, mother-in-law, sister-in-law, brother-in-law, daughter-in-law, son-in-law and any other member of the employee’s household.

Employees who marry or become members of the same household may continue employment as long as there is not a direct or indirect supervisor/subordinate relationship between the employees or an actual conflict of interest or the appearance of a conflict of interest. Should one of the above situations occur, Suit-Kote will attempt to find a suitable position within the Company to which one of the affected employees may transfer. If accommodations of this nature are not feasible, the affected employees will be permitted to determine which of them will resign.

SolicitationEmployees may distribute literature and solicit other employ-ees for charitable and non-profit organizations during non-working time provided it does not interfere with the normal operations of the office, reduce employee efficiency, annoy fellow employees, or pose a threat to the Company’s security. Employees should be respectful of coworkers who choose not to participate in a charitable solicitation.

In an effort to ensure a productive and harmonious work envi-ronment, persons not employed by The Company may not so-licit, post, or distribute literature or merchandise in the work-place at any time for any purpose.

Personal Leave of AbsencePersonal leaves of absence are granted, for “good cause,” at the sole discretion of management, for a period not to exceed six (6) months. Personal leaves of absence will only be granted if they do not disrupt the business and operation of the Com-pany...

...Requests for personal leaves of absence should be made in writing to the Human Resources Department. When the need for the leave is foreseeable, a 30 day notice is required. When the leave of absence is unforeseen, an employee must give no-tice as soon as practical. The request must specifically state the purpose of the leave and the dates on which it is requested to begin and end. The final decision concerning the request will be made by Human Resources in conjunction with the employee’s management team. Depending on the nature of the request, approval by the President may also be required. Approval is based on a number of considerations, including the reason given for the request, the number of previous re-quests, the length of service and job performance, and the needs of the department. Approval or denial of the request is generally given to the employee in writing.

EMPLOYEE HANDBOOK

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Trakstar

Suit-Kote Corporation has crossed the threshold from being a small family-owned business to a large corporation. As a matter of fact, the United States Government classifies a large corporation as employing 500 or more employees. According to that metric, Suit-Kote has been in that category for several years now.

It is no secret when companies grow they need to make changes to sustain that growth and also to meet the challenges that come with it. Suit-Kote’s goal is to continue on the same path and emerge in markets all across the Northeast United States. In order to do this, it must retool and prepare for the future.

First on the priority list is investing in its most valuable asset - employees. Over the next five years, corporate leadership has committed to integrating a new employee evaluation process know as Trakstar. Trakstar is a software package primarily designed to track employee performance, but it offers so much more.

This new program will roll out in phases over the next five years. This year will be phase one - employee 360 reviews. A 360 review is a process giving supervisors an opportunity to provide employee performance reviews in real time throughout the hectic work season. By using an email address and a smartphone, managers will be able to make detailed assessments of each workers knowledge, skills and abilities. This information will be a valuable resource to supervisors and employees alike. It will allow them to understand their strengths and weaknesses to become better at their job.

The purpose of the performance appraisal is to evaluate employee job performance. The performance appraisal

takes into consideration the quality of the employee’s work, job knowledge, initiative, attendance, teamwork, conduct, communication skills, and other criteria that properly reflects the employee’s job performance. Performance appraisals also provide supervisors and employees an opportunity to discuss job duties, identify areas needing improvement, encourage and recognize strengths, and set goals for the next review period.

Phase one will also include an opportunity for workers to evaluate their supervisor’s leadership skills. Employee feedback is vital to the success of leadership and this program should yield positive results for all of those who faithfully participate.

Future phases of the Trakstar Program will be based around skill development and identification. In order to give each employee the opportunity to grow and succeed at Suit-Kote, a full skills and abilities review must be conducted to properly chart a future career path. In addition, Trakstar will also play a major role in identifying tomorrow’s leaders and developing them to be able to lead the next generation. Succession planning is more important now than ever before. We need to plan now in order to keep the character and culture of Suit-Kote intact.

The final phase will tie it all together by developing a system to reward progress and development. The final goal is to allow this program to have a direct impact on individual compensation. Meaning, if employees embrace this challenge and work to develop their knowledge, skills and abilities, they will be rewarded for their efforts.

Suit-Kote Introduces an Employee Evaluation Trakstar Program

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By E.J. McMahon

New York state, its local governments and public authorities are committed to spending tens of billions of dollars on public works in the next five to 10 years. But under current law, they’re also committed to

wasting billions of taxpayer dollars on public works — to subsidize the above-market compensation of the state’s shrinking but politically influential construction unions.

The culprit is New York’s long-standing requirement that contractors pay the local “prevailing wage” on publicly funded construction projects. Rooted in late 19th century worries that government contracts would be won by firms importing cheap labor, the law is now little more than a protection scheme for unions.

In reality, the mandated pay levels are neither truly prevailing nor limited to wages, in the normal sense of either word.

“Prevailing” is defined by law as the amounts set forth in union contracts covering as little as 30 percent of the building trades where the project is located. The mandated “wage” includes union fringe benefits, priced at levels far beyond the private-sector norm. Even the definition of “locality” is distorted, conforming to a multitude of arcane union jurisdictions rather than metropolitan or regional boundaries.

The process for determining and implementing the pay mandate is extraordinarily opaque. The state Labor Department, which administers the law outside New York City, apparently doesn’t even verify that the 30 percent union-coverage threshold is actually being met in all cases.

As shown in a new Empire Center report I co-authored with Kent Gardner of the Center for Governmental Research, the higher union pay boosts total building costs by 15 percent in the Hudson Valley, 20 percent on Long Island and in the Buffalo area and 25 percent in New York City.

So, for example, the prevailing wage law will inflate New York City school construction costs alone by $1.4 billion over the next five years.

It will account for $340 million of the $1.7 billion the state plans to spend on Moynihan Station and the Javits Convention Center renovation.

These findings are consistent with other estimates, including a city Independent Budget Office study last year, which found that a prevailing-wage requirement would boost the cost of affordable housing by 23 percent. That didn’t stop Gov. Cuomo from unsuccessfully attempting to force the union-pay mandate on affordable-housing projects built by developers receiving the city’s 421-a property-tax breaks.

Higher prevailing-wage rates don’t flow entirely to current workers. The law also provides an ongoing backdoor taxpayer-funded bailout of union pension and welfare plans, most of which are struggling to stay afloat.

Based on their latest filings, New York’s top 25 construction-union pension plans have $12 billion in unfunded liabilities — a challenge compounded by their rapidly aging membership profiles, with fewer workers supporting a growing number of retirees.

Just over one-third of employer contributions to construction union pension plans were needed to cover the actuarially determined “normal” cost of benefits earned by active workers. The rest — nearly two-thirds — was billed to cover the plans’ unfunded liabilities.

Beyond total pay rates approaching or exceeding $100 an hour for some trades, the prevailing-wage law also effectively saddles contractors — union and non-union alike — with productivity-sapping union work rules. So, for example, on a high-rise New York construction site, highly paid operating engineers must stand by to push the buttons on fully installed automated elevators.

New York’s constitutional requirement for public-projects workers to be paid “the rate of wages prevailing in the same trade or occupation in the locality” could be more affordably implemented by reforming the law so it links pay rates to union contracts only when unions represent at least half the workers in a locality. Otherwise, contractor pay on public-works jobs should be based on regional private-sector averages. And “wage” should be redefined to mean just that — pay, not benefits.

While championing the interests of building-trades unions, Cuomo also has been working hard to cultivate the image of a master builder in the tradition of Nelson Rockefeller and Robert Moses. But when the governor proclaims “any government funding for construction has to go to union jobs,” he’s also promising to give away the store.

It’s Time to Rethink NY’s Prevailing Wage Law

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CHIPS Funding Hits Record HighState increases funding for the fifth straight year

The 2017-2018 Enacted Budget included record funding increases for transportation infrastructure! The Governor and state lawmakers heard the message that they needed to increase local road and bridge funding from over 600 Town and County Highway Superintendents. On March 7, 2017, Suit-Kote personnel and Superintendents from around the state converged on Albany asking lawmakers for an increase in CHIPS funding and the answer they received was YES! Thanks to our unified effort every county, city, town and village in the state will receive a record level of state pavement funding!Over the past six years we’ve nearly doubled the amount of money dedicated solely to local governments for highways, bridges and culverts. Local transportation funding was

appropriated at $793 million, almost a quarter of the DOT Capital program in the 2017-2018 Enacted Budget! The Executive Budget proposed in January included $463 million in CHIPS base funding, $100 million in local PAVE-NY and $100 million in local BRIDGE-NY all of which was agreed upon in the five-year capital plan. Our advocacy efforts led to an additional $65 million in Extreme Winter Recovery Funding (EWRF,distributed through the CHIPS formula) and a $50 million bump to the local BRIDGE-NY program. The Senate

Republicans were instrumental in supporting this increase and keeping the distribution of EWRF through the CHIPS formula which more fairly dispurses the money state-wide. Our success is an enormous accomplishment considering that we are up against other advocacy efforts requesting increases in funding for things like education and healthcare.

The overall New York State Department of Transportation Capital Program increased by over $1.6 billion; $1.5 billion of which went to the State and Local Construction Program.

DOT Capital Program $5.97B - $1.631BDOT State/Local Construction $3.747B - $1.5033BLocal pavement funding(CHIPS/PAVE-NY)$643M - $65MLocal BRIDGE-NY funding $150M – up $50M

As you know, for many years New York’s massive local infrastructure system was not even a blip in the Albany budget process. This is despite the fact that localities are responsible for far more of the state’s lane miles and about 50% of its bridges.

Notwithstanding everyone’s efforts road, culvert and bridge conditions continue to deteriorate and more is needed to maintain the system.

Suit-Kote’s advocacy efforts locally and state-wide with various highway superintendent associations and continuous outreach to state legislators is critical. We must continue to educate our elected officials to make sure that infrastructure receives the support necessary to encourage growth and economic vitality in New York.

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Suit-Kote and Otsego Academy Team up to Deliver Health and Hope to the World

Several years ago, Theresa Suits began to volunteer her time and resources to do philanthropic work for Project C.U.R.E. (Commission on Urgent Relief and Equipment). Project C.U.R.E. is the largest provider of donated medical supplies and equipment serving 130 developing countries around the world. Project C.U.R.E. identifies, solicits, collects, sorts and distributes medical supplies and services according to the imperative needs of the world. Theresa’s work focuses on Project C.U.R.E.’s collection program. From a warehouse in Cortland, she prepares thousands of donated, life saving medical supplies and equipment for shipment to one of Project C.U.R.E’s sorting facilities. After a complex inspection, inventory and logistics process, the shipment is absorbed into an enormous inventory at one of the various Distribution Centers that annually places millions of dollars worth of medical supplies and modern equipment directly into the hands of doctors and nurses in under-resourced hospitals, clinics and community health centers around the world. In the past, Theresa and her Project C.U.R.E. Chapter in Central New York teamed up with Walmart to use their vast trucking fleet to transport medical supplies to the Nashville, TN Distribution Center. Unfortunately, due to strategic transportation logistics changes, Walmart had to alter their delivery routes leaving Project C.U.R.E without a trucking partner. With inventory stacking up in the Cortland area warehouse, Theresa Suits needed to find a solution to her trucking issue. Realizing there were not too many national trucking alternatives like Walmart, Suit-Kote stepped in and offered help. Frank agreed to donate the trucking from Suit-Kote to Project C.U.R.E, so that the supplies would get where they needed to be without further delays. With a warehouse full of donations, the only obstacle left standing in the way of a successful operation was labor - who would load the truck? Theresa had an idea. She reached out to Otsego Academy, where her son Peter is enrolled as a college freshman, to see if they might be interested in volunteering their time to a good cause. Several students at Otsego Academy jumped at the chance and partnered with a couple of Suit-Kote employees to help prepare the cargo for shipment. The pallets were prepared and the truck was loaded. Everyone had a bright smile on their face and knowing that they were doing

something good made the time pass by in a flash. At the end of the day, the doors on the Suit-Kote tractor trailer closed and the medical supplies headed to Philadelphia. Additionally, a second truck load full of supplies was delivered to Philadelphia by Suit-Kote the following week.

Project C.U.R.E. is a top flight charity and is the recipient of the GuideStar Exchange Platinum Seal, the Charity Navigator Four-Star Rating and is ranked by Forbes as one of the 20 Most Efficient Large U.S. Charities. If you are interested in learning more, please visit their website projectcure.org or contact Theresa Suits at [email protected].

Special thanks to the Otsego Academy students and Suit-Kote volunteers Bill Weddle and Gerry Tracy teaming up to deliver health and hope to the world.

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Every year around Earth day the New York State Department of Transportation (NYSDOT) recognizes projects that are environmentally sustainable, innovative or are considered to be a best practice. The longitudinal joint repairs Suit-Kote and NYSDOT Region 6 have been doing meet all 3 criteria. The longitudinal joint repair projects have been selected for a NYSDOT GreenLites Operations Best Practice Leader Award. Congratulations to NYSDOT official Jonathan Engels who brainstormed with Steve Rebman to find a better, lower cost solution to fix this problem. It is good to see your efforts rewarded!!

Route 318 RescuedLongitudinal joint repair saves the day

We have all seen it before while travelling on the highway - a long gouge in the road surface likely cause by a dragging tractor trailer axle or a large farm implement. When you think about it, it makes sense how much damage dragging a piece of steel at a high rate of speed could do, but sometimes it makes you scratch your head as to how long it happened without the driver realizing it.

Well, what is described above is exactly what happened to Route 318 in Seneca County recently. The actual gouge or groove in the road was deep and uneven and was about 5.3 miles long. In the past, the New York State Department of Transportation (NYSDOT) officials tried to remediate the problem by applying crack sealant to the imperfection, but due to the uneven width and depth of these types of problems, crack sealant failed to fix the problem.

After being contacted by NYSDOT, Suit-Kote suggested trying our new Longitudinal Joint repair product. The officials in Region 3 agreed to give it a try and Suit-Kote used a micro-surfacing unit with a 2 foot box to apply specially formulated E Flex material to the groove. And voila, the problem was solved!

Suit-Kote’s innovation once again provided a low cost solution to a difficult problem. Another case of the public and private sector coming together to make a difference in the lives of the motoring public and the taxpayers.

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Suit-Kote CaledoniaIn 1977 Suit-Kote acquired its Rochester facility in a multi facility acquisition with Koppers. The Rockwood Street location had been a vital piece of Suit-Kote’s Southern Tier and Western New York operation for nearly four decades.

Prior to the start of the 2014 work season a decision was made to take the City of Rochester location off line and to use the Suit-Kote Buffalo manufacturing facility to take over its responsibilities. Any other customer needs would be met by the Watkins Glen facility.

Due to an aging facility, failing infrastructure and its intercity location, Suit-Kote Rochester had outlived its usefulness.

Three years later, with customer demand increasing, Suit-Kote needed to make a strategic investment, but for the reasons outlined above a new location away from the hustle and bustle of city living was required.

Steve Rebman and Brennan Bezon set out to find a location capable of meeting our needs and was also strategically located to accommodate direct trucking routes to major highways.

A small town named Caledonia, New York seemed a perfect fit for Suit-Kote and its future plans. It is located south west of Rochester in Livingston County and its local officials welcomed this new operation with open arms.

Suit-Kote purchased the land and the existing structures on a fourteen acre parcel. However, prior to breaking ground they would need to be given approval by the town board, the planning board, and both the county and town zoning boards. Brennan Bezon and Ryan DuBois worked tirelessly with government officials to gain approval for the site.

Just three days after the bank closing on April 21st, Suit-Kote broke ground and began erecting tanks to be ready for use in the 2017 season.

It is anticipated by July 1, 2017 Suit-Kote will have six storage tanks with the ability to store 145,000 gallons of emulsion on site. The tanks will primarily store rapid set 2 (RS 2), high float rapid set 2 (HFRS 2) and high float medium set 2 (HFMS 2) asphalt emulsions.

In addition, the new Caledonia facility also has an 8,100 square foot office and shop which will be helpful as this location prepares for future growth.

Next year the plan is to continue to enhance this facility by doubling its capacity and by expanding the product list to include tack coat and various other emulsions.

The Suit-Kote construction crew lead by Tom Vosburg’s crew did an excellent job preparing the site, erecting the tanks and getting this facility online for 2017!

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A step by step look at how Caledonia was built

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Suit-Kote Corporation1911 Lorings Crossing

Cortland, New York 13045

Polkville Cortland

Oriskany

Oneonta

Watkins Glen

CaledoniaBu�alo

Watertown

Jamestown

Pennsy

Rail TerminalBelmont

Meadville

Fosterdale

Tonawanda

Bentleyville York

PrebleHomer