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Constructor Magazine - December 2008 - Associated General ...

GOVERNMENT RELATIONSWWW.AGC-CA.ORGThe Year of ChangeDespite Looming Deficit, Voters Showed Willingness to Investin Future through Passage of Bond MeasuresBy Dave AckermanAs predicted by most reporters and pollsters,Barack Obama swept across thenation as voters agreed with his message of“change.” However, in California his coattailswere not long enough to make much ofa change in the state’s political landscape.Californians once again sorted throughvarious initiatives with great scrutiny, defyingpolitical pundits who try to place Californiavoters into a political category.Overall, Congress will gain in democraticnumbers; however, California did notcontribute to the gain with congressionalpercentages remaining the same—unlessthe absentee and provisional ballots in the4th Congressional race change the outcomefor Tom McClintock, who led by 50.1percent as of this writing.In the State Senate, the pivotal race wasin the 19th Senate District in Ventura andSanta Barbara Counties, a position formerlyheld by Republican Tom McClintock.Although all of the precincts had beenreported with democratic candidateHannah-Beth Jackson leading by 108 votesover Republican rival Tony Strickland, therewere still absentee ballots that had yet to becounted in the race and it was too close tocall at press time.In the Assembly, the Republicans hadthe most to lose in terms of legislativeraces, but they fared better than anticipatedwith the Assembly Republicanslosing three seats (AD 15, AD 78 and AD80) and gaining one (AD 30), for a netloss of two seats. The Assembly will have50 Democrats and 30 Republicans – fourshort of a two-thirds majority going into2009.On the ballot front, California votersPROPOSITIONSAGC’S POSITIONProposition 1A – High Speed RailSupportSafe, Reliable High-Speed Passenger Train - $9.8 Billion Bond Act.Proposition 3 – Children’s Hospital -$980 Million BondProposition 7 – Renewable EnergyProposition 10 – Renewable Energy /Alt. Fuel BondsProposition 11 – Redistricting - InitiativeConstitutional Amendment and StatuteProposition 12 – $900 Million Veteran’s BondSupportOpposeOpposeSupportSupportnarrowly approved a constitutionalamendment to require that marriage isbetween a man and a woman (Prop 8),one of the more controversial initiatives.Californians also narrowly rejected thestatus quo politics by voting for Prop 11,which takes reapportionment out of thehands of the Legislature and entrusts thenew legislative districts to be drawn byan independent commission.Californians overwhelminglysupported treating farm animals in amore humane way by voting for Prop 2,yet rejected initiatives Prop 7 and Prop10 to impose greater mandates andincrease revenues aimed at renewableenergy.The voters also showed compassionby passing Prop 3, the $980 millionbond act to construct and expand children’shospitals, and Prop 12, the $900million Veterans Bond Act.Lastly, voters approved Prop 1A,which will provide for an additional$9.8 billion to finance high-speed rail“bullet train.” The fact that it wasapproved despite California’s loomingbudget deficit indicates that Californiansare willing to invest in California’sfuture.The AGC did very well on its recommendationsfor statewide propositions;the association took positions on six ofthe propositions, and all of those positionsprevailed on Election Day.On the local level, AGC districtsactively supported three measures. InSanta Barbara, Measure A which willcontinue a 1 /2 cent sales tax for streetsand roads for the next 30 years passed,and a similar Measure S proposal inStanislaus County was still within apercentage point of passing at presstime. In Los Angeles, voters approvedMeasure R, which would increase salestax by a 1 /2 cent for the MetropolitanTransportation Agency.Overall, it was a mixed bag withvoters turning out in record numbers,and California voters showing the restof the nation that as a whole they arefar more centrist in their votingpattern. Even in difficult economictimes, voters in California were willingto approve long-term bond measuresand tax increases, which means they arewilling to take on debt in order toprovide better transportation servicesfor the future.Note: As of this writing, there were stillseveral thousand absentee ballots yet to becounted which could impact Prop 11(Redistricting), SD 19, CD 4 and possiblyAD 10, currently won by a Republican.4 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


FEATUREConstruction Looks for Bright Spots in theGolden StateBy Ken Simonson, Chief Economist,AGC of AmericaWWW.AGC-CA.ORGCalifornia’s construction industry seems tohave tumbled from the summit of Mt.Whitney to the depths of Zabriskie Point.Will contractors be able to regain any altitudein 2009 or will they continue towander through Death Valley?State construction employment reacheda summit of 949,000 workers, seasonallyadjusted, in February 2006, at the peak ofthe homebuilding boom. (Seasonal adjustmentis a statistical technique to allowcomparison across months for data thattends to vary because of weather, holidays,etc.) By September 2008, employment hadtumbled 15% to 804,000, the lowest totalin five years. That was twice as great a dropas the percentage decline in constructionjobs nationally.Of course, homebuilding has sufferedthe bulk of the decrease, but some nonresidentialsegments shrank as well. Forinstance, heavy and civil engineeringconstruction employment fell about 7%from September 2006 to September 2008.In contrast, nonresidential buildingconstruction employment was slightlyhigher each month from January throughSeptember 2008 than in the same monththe year before.September was likely the high-watermark, unfortunately. That month, contractorsbegan to report that developers figurativelyhad the loan window slammed downon their hands as they reached forconstruction loans. The state was frozenout of the bond market for a while. Vallejodeclared bankruptcy and other localgovernments also faced dire fiscal shortfalls.Ken SimonsonEven with the credit markets reopeningslightly, projects are still beingdeferred or cancelled. Many developershave concluded that office, retail orhotel developments no longer makesense when employment, consumerspending and travel are all declining.The plunge in stock markets andhome prices has had multiple consequences—allbad—for construction.Colleges and hospitals that had countedon endowments or capital campaigns topay for construction may no longerThe one truly bright spot for construction ismaterial prices. After the wild upswing indiesel, asphalt, steel and copper prices in thefirst seven months of 2008, prices should start2009 close to year-ago levels.have the funds available. Local governmentsand school districts that dependon property and transfer taxes have hadto slash budgets. The state’s expectedincome taxes, especially from capitalgains, have withered.There are rays of light for construction.Voters on Election Day approvedtens of billions of dollars in new bondsfor high-speed rail, hospitals, publicschool and community college additionsand renovations, as well as salestax increases for transportation projectsin Los Angeles, Santa Barbara, Sonomaand Marin.These approvals follow major bondprograms passed in 2006. In addition,hospitals statewide are under mandateto construct extensive—and veryexpensive—seismic retrofits.Not all of these projects will goahead in the near future. But theyrepresent a potentially rich backlog forcontractors.The strongest construction segmentnationally in 2009 should be powerconstruction—power plants, transmissionlines, wind and solar “farms” andother renewable power projects. Californiawill get a hefty piece of each ofthese types of projects, in spite of theprotracted permitting process for manyof them.Energy construction—refineryupgrades, pipelines, oil and gas fieldsand demonstration projects—will alsobe a hot category nationally. Californiawill get a share of this work, too.The outlook for public constructionis mixed. Most of the federal governmentis operating at least until Marchunder a “continuing resolution” thatholds spending at the same level as lastyear. But Congress did pass increasedfunding for military construction,veterans’ hospitals and homeland securityprojects. These jobs will be sprinkledthrough California.There is a growing likelihood thatCongress will pass an economic stimulusbill that will contain some fundingfor infrastructure projects. It is tooearly to say what portion of that moneywould benefit California. But the stateis well represented in Congress, both innumbers (a tenth of the entire House ofRepresentatives) and in leadership, inthe form of Speaker Nancy Pelosi.Housing, while not exactly a bright6 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


spot, may at least stop falling nationallyin 2009. In recent months, sales of newand existing single-family houses havemore or less stabilized, while inventoriesof new homes for sales have shrunkby more than a third. It is possible,though far from certain, that homesales will pick up for the country as awhole in the first half of 2009. If so,then homebuilders may pick up theirtools in the second half. However, arecovery in multi-family constructionseems unlikely before 2010, and manyCalifornia markets also have too manysingle-family homes for sale to providemuch hope of a homebuilding recoveryin the state in 2009.The one truly bright spot forThe strongestconstruction segmentnationally in 2009should be powerconstruction—powerplants, transmissionlines, wind and solar“farms” and other renewablepowerprojects.construction is material prices. Afterthe wild upswing in diesel, asphalt,steel and copper prices in the firstseven months of 2008, prices shouldstart 2009 close to year-ago levels. Withthe weak U.S. economy and slowergrowingdemand from the developingworld, prices should remain morestable in 2009 and may even driftlower.In sum, the prospects for constructionin the Golden State are generallylackluster but not uniformly dull.Meanwhile, materials costs will makeconstruction much more affordable forowners willing to go ahead. Building in2009 would be a smart move, becauseprices are likely to resume their rapidrise once the U.S. economy springsback to life, perhaps as early as thebeginning of 2010.THE VOICE OF THE CONSTRUCTION INDUSTRYAssociated General Contractors of California 7


FEATUREWWW.AGC-CA.ORGThe Worst Declines May Be Over If GovernmentRescue Succeeds, McGraw-Hill Forecaster SaysBy Bruce Buckley, ENR CorrespondentConstruction activity is falling fast and willhead down again next year at a slower pace,but only if the government bank rescue andplanned economic stimulus work.That’s the discomfitting scenario describedby McGraw-Hill Construction, the parent ofENR and Architectural Record, during theOutlook09 Executive Conference in Washington,D.C. on Oct. 23.Construction starts are on pace to tumbleto $555.5 billion in 2008—a 12% drop fromthe previous year. Steady declines will continuethrough 2009, dropping another 7% to$514.6 billion, says Robert Murray, vice presidentof economic affairs at McGraw-HillConstruction.The forecast assumes that the bank rescueand anticipated additional stimulus packagesRobert Murrayaimed at jump-starting the economy andunfreezing the credit markets will besuccessful. Still, considerable drops areexpected even if government interventionsucceeds. “By whatever broad measure ofthe industry that you look at, it’s clearly inretrenchment,” Murray says.Housing, the center of the financialhurricane, suffered the biggest decline thisyear, with single-family housing falling36% to $128.8 billion and multi-familyfalling 30% to $44 billion.The worst may be over. Althoughsingle-family housing starts have been inconsistent free-fall since 2005, declinescould ease considerably in the comingyear. Dropping from a peak of 1.626million units in 2005 to 937,000 units in518 North Redington Street • Hanford, California 93230Crushing, Demolition, RecyclingBush Engineering's years of experience in placing mobilecrushing plants at job sites can bring cost benefits on site. Processingthe concrete, asphalt or natural rock at the job site can save youroperation the high costs of dumping and transportation feesassociated with these unwanted materials.We employ rotary impact crushersspecifically designed to crush mostforms of concrete, asphalt or naturalmaterials while extracting any rebar,steel mesh or iron pipe.Demolition and RemediationWe specialize in a variety of demolitionand land clearing services such as:• Bridges, factories, warehouses,single family dwellings and more.• Land Clearing and Grubbing for realestate property development projects.• Site remediation with expired landfills.MATERIAL SALESBoth our Hanford and Lemoore yards have strong inventories ofrecycled 3/4" Class II base that meets the strict qualityrequirements of CALTRANS. Other sizes are available on request.For Additional Information:JEFF FARRISBush Engineering, Inc. Lic. No. 888139Office (559) 584-1575 • Cell (559) 351-1752 • Fax (559) 584-1591A bond is nota piece of paper . . .It is a valuedrelationship witha constructionindustry professional.SERVING ALL OF CALIFORNIA(951) 788-8581License# 07057738 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


2007, starts fell an additional 38% in 2008to 582,000 units. McGraw-Hill Constructionis forecasting a relatively modestdecline of 4% in 2009 to 560,000 units.A souring market for condos promptedthe multi-family housing sector to takea dive in 2008, dropping 30% to $44billion. Although many developers areshifting interest toward apartmentprojects, Murray says that sector is forecastto see another 6% decline to $41.4billion.On the positive side, manufacturersbuilt 69% more this year than last, $29.6billion worth, with most of the upsurgecoming from the oil industry. And electricutilities upped their construction of allkinds 55% to a near record level of $24billion.But even the bright spots, such asmanufacturing and utilities, may fadenext year, as the sour economic environmentdrags down all parts of theconstruction market.The tight credit markets will continueto erode commercial sector starts, whichwill fall 10% in 2008 to $89.8 billion—levels seen at the beginning of the decade.Retail projects are seeing some of thebiggest declines, echoing the decline ofthe housing sector. Additionally, Murraysays that bankruptcies by major retailers,such as Linen’s N Things, Sharper Image“By whatever broadmeasure of the industrythat you look at, it’sclearly in retrenchment,”Murray says.and CompUSA, will add to the decline inthe coming year. Murray forecasts another12% decline in 2009 to $79 billion.Next year, the office market could take thebiggest hit in the commercial sector withan 18% drop in new start square footagepredicted. The booming hotel market willfinally pull back as well, Murray says.After four years of steady increases,institutional building starts could flatten.The sector increased by 7% in 2008 to $124.4billion, but could drop slightly to $121billion in 2009 as financial pressures forcepublic agencies to defer projects in the nearterm, Murray says.Government restraint is also expected tohamper public works activity. The sectordipped 5% in 2008 to $114.8 billion andcould fall another 5% in 2009, Murray says.Next year, Murray forecasts that even withthe potential for government stimulus thatwould boost infrastructure, highways andbridges starts could slide 4% in 2009 to $50billion. Even with increasing ridershipreported by many mass transit systemsnationwide, that sector could also decline by5% in 2009 to $3.8 billion.The electric utility market has seen wildswings in activity in recent years, but continuesat a high level from a historical perspective,Murray says. The sector surged 55% to anear record $24 billion in 2008 and coulddrop 30% in 2009 to $16.8 billion. At thatlevel, starts by dollar value would still be thefourth largest of the decade.Since 1971, we have helped stop theftsfrom hitting your company’s bottom line!CICP works with local and regional lawenforcement to protect your assets, onand off the job site.– Metal thefts are on the rise– Internal and external thefts arereaching 10 year highsRewards and Recoveries since 1980:Rewards: $188,400.00Recoveries: $108,006,800.00In a soft economy you can’t afford not tobe a part of this organization!For more information, check us out atwww.constructioncrime.com or call us at(916) 372-2984 to find out how you canstop theft on your jobsite!THE VOICE OF THE CONSTRUCTION INDUSTRYAssociated General Contractors of California 9


FEATUREWWW.AGC-CA.ORGFMI Sees Significant Downturn AheadTight Credit, Shrinking Backlogs Will Create ChallengingEnvironment for Contractors throughout U.S.By Heather Jones, FMI CorporationThe good, the badand the ugly. Thegood: nonresidentialconstructionshould finishup 2008 in thepositive territory,marking fivestraight years ofgrowth. The bad:2009 will bringan end to thecycle with asignificant downturn in growth. However,it should be the bottom in terms of percentdeclines. The ugly: the continued loss in2010 will be off of the large downturn of2009. The bottom in terms of dollarvolume will be in 2010.Put in place construction is based uponthe amount of construction built each year,not the value of the construction startedeach year. For this reason, 2008 appearsmore positive than it actually is. Constructionthat was started in 2007 and early2008 and is still being built or finished ispropping up the growth for 2008. The painfrom the fall in starts will not be felt until2009 and 2010.Tight CreditTight credit is contributing extensivelyto project delays and cancellations. Accordingto FMI’s Third Quarter NonresidentialConstruction Index (NRCI), project delaysare 2.2 times the normal rate and arecurrently at 17%. Project cancellations are2.5 times the normal rate and are currentlyat 9.9%. Contractor backlogs are alsogetting shorter. They have shortened from11 months in the first quarter to 10months in third and fourth quarters. So, ifcontractors have a little less than a year’sworth of backlog (that is subject to delaysand cancellations), 2009 has a small hopeof not being so “bad.” This means thatbacklogs will probably shrink considerablyin 2010, making it “ugly.” The ugly yearalso has a slight chance of not being sougly if the government’s fiscal policiesactually work and credit unfreezesbefore backlogs run out and delayedprojects fill in the gaps while newprojects are brought into the pipeline.We believe that credit is likely to loosensome from where it currently standsbut that standards will remain tightuntil 2011. Cheap and easy credit isgone. Equity requirements are also likelyto increase. Under the Troubled AssetRelief Program (TARP) there were norequirements that banks actually lendthe money out. Banks have been andwill continue to be reluctant to makenew loans for some time.Our forecast assumes that a massivefederal infrastructure spending bill willnot be passed and put into constructionduring the forecast period. The timing(if any) of a major package is unknownand should not be arbitrarily placedinto a forecast. If a major package wereto be passed, it then takes time to beworked into actual construction. Aprime example of this is the federalmoney that was given to New Orleanspost-Hurricane Katrina versus the actualamount of construction that hasbeen put in place. Construction needstime to be planned, designed and alsoapproved.There is also no guarantee that anyfunding from a new package would beused in addition to the old source. Forexample, if federal funds were given toa state for highway and street projects,it is possible that the state could use thefederal money and then reallocate theold highway money to another area ofneed such as paying off interest on itsbonds. If this occurs, no additionalconstruction is actually built. The latest“proposal” calls for an investment of$60 billion over 10 years. This amountis a fraction of the highway bill fundinglevel and is far shy of the $1.6 trillionthat is needed to fix our crumblinginfrastructure. The source of the fundingfor a major infrastructure packageis also in question.Impact of Housing MarketHousing is a very important sectorfor the construction industry. It hasdecreased from 56% of total constructionin 2005 to 37% in 2008. It isexpected to account for 37% to 38%per year though 2012. Historically, theresidential sector has averaged around45% of total construction. Housing isalso a leading indicator for nonresidentialconstruction. As housing boomsTight credit is contributing extensively to projectdelays and cancellations.According toFMI’s Third Quarter Nonresidential ConstructionIndex (NRCI), project delays are 2.2 timesthe normal rate and are currently at 17%.and expands into new areas, demandfor nonresidential segments such asschools, grocery stores, banks and otherretail establishments follow. Conversely,as housing corrects, nonresidentialconstruction declines. Housing (andthe economy) is difficult to write aboutin these turbulent times. The situationis changing on a daily basis. On the dayof this writing, it is rumored that a $50billion bailout is forthcoming forhomeowners. We believe that it is likelythat some sort of assistance packagewill be enacted and that it will be bene-10 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


ficial to the housing industry. However,we believe that despite this assistance(barring anything radical andcompletely unpredictable) that housinghas not yet reached the bottom interms of dollar value (but that it has interms of percent decline).The housing sector has good longtermgrowth prospects. The populationin the United States is expected to growfrom 300 million in 2006 to 400 millionin 2039. That is an increase of 100million people in about 33 years. Thispopulation will have to live somewhere.Multi family construction will recoverand begin to grow before single familyconstruction due to an increase inrental construction. This populationgrowth and eventual increase in residentialconstruction also bodes well forthe future growth of nonresidentialconstruction. Nonresidential constructionwill experience an increase in theout years as the population will needhighways and streets to drive on, powerfor their homes and water and sewerservice. And of course, an infrastructurestimulus package would only causethis construction to occur sooner.Fallout from OverallEconomyObviously, the construction industryis not only dependent on the housingindustry. The general economy is adriver for both residential and nonresidentialconstruction. Most or all of 2008will likely be called a recession despitenot yet having two consecutive quartersof negative GDP. Declining housing andemployment will contribute to this classification.A high level of exports due toa cheap dollar and the stimulus packagewere artificially propping up GDPgrowth for parts of the year.Real GDP decreased 0.3% in the thirdquarter according to advance estimates.GDP for the second quarter was reviseddown to 2.8% in final estimates, downfrom the 3.3% reported in the preliminaryestimate. It grew 0.9% in the firstquarter and the fourth quarter estimatefor 2007 was actually revised down to adecline of 0.2%. Consensus Forecastspredict that GDP growth will be 1.4%for 2008 and 0.0% for 2009. We believethat these estimates are fairly accuratebut that they are extremely sensitive tothe drivers discussed below.Construction Put in PlaceEstimated for the United States by FMIMillions of Current Dollars4th Quarter 2008 2008 2009 2010RESIDENTIAL BUILDINGSTotal Residential 371,942 345,937 359,906NONRESIDENTIAL BUILDINGSTotal Nonresidential Buildings 481,621 421,375 398,490NONBUILDING STRUCTURESTotal Nonbuilding Structures 186,375 191,616 199,318Total Put in Place 1,039,938 958,928 957,714Unemployment’s ImpactThe employment situation continuesto deteriorate. The unemployment raterose to 6.5%. This rate is fairly lowhistorically, especially during a recession.However, it is at a four year highand feels high compared to recentlevels. Employment decreased by240,000 in October to 137.7 millionfollowing job losses that totaled 1.2million over the first 10 months of 2008with over half of the decrease occurringin the last three months. Depending onthe effectiveness of the government’sfiscal stimulus, unemployment ispredicted to reach at least 7% and maypossibly reach as high as 8%. However,the job losses have been concentrated inmanufacturing, residential and hospitalityso far. We expect significant lossesin the financial sector to begin appearingin the fourth quarter and the firsthalf of 2009. While these job losses areindicative of a bad economy, some ofthe losses may be slightly overstated asthey relate to construction. Job losses inmanufacturing have correlated todeclines in manufacturing constructionin the past. As manufacturing constructionevolves from traditional manufacturingto refining, steel mills and basicmaterials, productivity improvementsand construction to meet regulationsmay increase construction whiledecreasing employment. However, theexpected job losses in the financialsector are expected to translate into adecreased demand for office construction,ultimately translating into areduced demand for commercial/retailconstruction.Federal Funds RateAnother important indicator forconstruction is the federal funds rate. Thisrate influences borrowing rates and mortgagerates. At the end of October, the Fedlowered its rate to 1%, the lowest sincerate since 2003. The Fed said that the“intensification of financial marketturmoil is likely to exert additionalrestraint on spending, partly by furtherreducing the ability of households andbusiness to obtain credit.” The centralbank said that “downside risks to growthremain,” holding out the promise offurther rate cuts if needed. The rate-cutdecision was unanimous. Federal ReserveChairman Ben Bernanke and hiscolleagues pledged that they would“monitor economic and financial developmentscarefully and will act as neededto promote sustainable economic growthand price stability.” We believe that thegovernment can and is managing its fiscalpolicy as well as it can.Neither the economy nor constructionlook good for 2009. A deteriorating jobsituation, reduced consumer spendingand tight credit are negatively affectingboth. The economy is expected to turnaround before nonresidential construction.The only bright spot for 2009 islower commodity and oil prices and aweak but not negative non buildingconstruction sector.Heather Jones is the Chief ConstructionEconomist of FMI Corporation. FMI is aleading provider of management consultingand investment banking services of theworldwide construction industry.THE VOICE OF THE CONSTRUCTION INDUSTRYAssociated General Contractors of California 11


FEATUREWWW.AGC-CA.ORGEconomic Downturn to Continue In 2009, CIRB ForecastsMost Major Sectors of California’s Construction Industry WillFace Continuing Economic Challenges AheadBy Ben BartolottoThe economic downturn and credit crisisstarted in the housing sector but is impactingall construction sectors as well as the generaleconomy. Efforts to get credit flowing and torecapitalize financial markets as well as necessarymarket corrections will take time toproduce results. Given the severity of the creditcrisis, this downturn may not be as short orshallow as the 2001 recession, which lastedabout eight months. And California’s economicoutlook is more negative than the rest of thecountry’s, pointing to a challenging period forthe state’s private-building and public-worksconstruction sectors.In 2008, there are declines in all majorsectors of the state’s construction industryexcept in the public-buildings sector, whichshows a 6.1% gain. Most of the decline in 2008,as in 2007, is in the residential building sector.Total California construction volume,private and public, is estimated at $60.29billion in 2008, down 19.7% ($14.81 billion)from 2007’s $75.10 billion. The downturn inresidential building has accounted, respectively,for 84.6% and 70.5% of the 2007 and 2008declines in total construction. The bulk of theremaining decline in 2008 is in private nonresidentialbuilding and heavy construction.In 2009, the total volume of constructionin California is forecast to decline by 5.4%overall to $57.05 billion. This forecast assumeslittle if any improvement in residential buildingbut continuing declines in private nonresidentialbuilding and heavy construction.Residential BuildingResidential building including new buildingsand alterations and additions totals andestimated $18.67 billion in 2008, down 35.9%from 2007 and is forecast at $18.76 billion in2009, practically unchanged from 2008. The2008 and 2009 totals are the lowest since1982’s $14.35 billion adjusted for inflation.New housing units total an estimated66,000 in 2008, down 41.6% (47,000 units)from 2007. The 2008 decline follows a 31.2%decline in 2007 and a 21.4% decline in 2006.While the entire decline was in single-familyhousing in 2006, 2007 and 2008 saw doubledigitdeclines in both single- and multi-familysectors. New single-family units are estimatedat 34,000 in 2008, down 50.3% from 2007and the lowest level on record. (Comparablerecords go back to 1954.) Multi-familyunits total 32,000 in 2008, down 28.3%from 2007.Private NonresidentialBuildingPrivate nonresidential building totalsan estimated $20.27 billion in 2008, down13.0% from 2007, adjusted for inflation.The decline in 2008 follows four consecutiveyears of increase (2004 through 2007).Those increases were preceded by threeyears of decline (2001, 2002 and 2003).Private nonresidential building peaked at$26.18 billion in 2000, mostly from boomlevels in the San Francisco Bay Region.Private nonresidential building is downin all regions of the state in 2008 withdouble-digit declines in the 7-countySouthern California Region (-17.0%) andthe Central Coast Region (-18.0%). Smallerdeclines are in the San Francisco Bay (-7.0%), Sacramento-Sacramento Valley (-9.0%) and San Joaquin Valley (-4.0%)Regions.Among major building categories thelargest decline in 2008 is in new officebuildingconstruction, down $1.168billion (33.2%). That same category postedthe second largest gain in 2007 (up$626.6 million or 21.7% from 2006). Thelargest gain in 2007 was in alterations andadditions (up 8.2% from 2006).Other major categories with largedeclines in 2008 are new industrial buildings,down 32.5%, hotels and motels,down 23.9%, amusements, down 48.6%,stores and other mercantile buildings,down 6.9%, alterations and additions toexisting buildings, down 3.1%, and othernew nonresidential buildings, down16.6%. (Other new nonresidentialincludes private educational, medical, religious,agricultural and other categories.)The only major private-nonresidentialbuildingcategory to increase in 2008 iscommercial parking garages, up $50.0million (6.0%).Private nonresidential building is forecastat $17.64 billion in 2009, down 13.0%from 2008. If achieved, that is the lowestannual total since 1996’s $15.39 billion.Public BuildingsThe public building sector (government-ownedbuildings) totals an estimated$11.20 billion in 2008, up 6.1% from2007. Schools and community colleges,the largest public-buildings category,totals an estimated $5.10 billion in 2008,down 4.5% from 2006. The balance ofpublic building construction totals $6.10billion in 2008, up 16.9% from 2007. Thelargest category in the balance of publicbuildings is state college and universityconstruction. That category totals an estimated$1.51 billion in 2008, up 5.8%from 2007.Public building construction as awhole is forecast to decline 1.6% in 2009to $11.02 billion with a 3.3% gain in theschool-building category but a 5.7%decline in the balance of public buildings.Heavy (Nonbuilding)ConstructionThe year-2008 heavy (nonbuilding)construction total is estimated at $10.15billion in starts and contract awards,down 16.4% from 2007, adjusted forinflation. The largest component of theheavy construction sector is roads andbridges, which totals an estimated $4.10billion in 2008, down 7.7% from 2007and the lowest total since 2005’s $3.29billion.Contracts and starts for the balance ofheavy construction (includes utilities, rail,sewage treatment, water systems, dams,river and harbor, power plants, airports,parks, sitework) total an estimated $6.05billion in 2008, down 21.4% from 2007.The largest category in the balance ofheavy construction is water-and sewerworksconstruction, which totals an estimated$3.19 billion in 2008, down 26.2%from 2007’s $4.32 billion. The 2007 waterand-sewer-workstotal was up 26.3% from2006’s $3.42 billion adjusted for inflation.Heavy construction is forecast to total12 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


$9.63 billion in 2009, down 5.1% from 2008adjusted for inflation. The 2009 forecastdecline, if achieved, would be the thirdconsecutive annual decline in heavyconstruction. The 2009 forecast includes an8.8% decline in roads and bridges and a2.6% decline in the balance of heavyconstruction.Construction EmploymentIn 2008, California construction employmentaveraged an estimated 812,700, down79,600 (8.9%) from 2007 and down 136,300(14.4%) from the 949,000-employment peakposted in the month of February 2006(seasonally adjusted). In 2009, constructionemployment is forecast at 780,500, down32,200 (4.0%) from 2008 and the lowestemployment level since 2002’s 774,400.Ben Bartolotto is Research Director withthe Construction Industry Research Board(CIRB). CIRB is supported in part by grantsfrom the California Construction AdvancementProgram, Construction Employers’ AssociationConstruction Industry AdvancementFund of Southern California, and Fund forConstruction Industry Advancement.Summary Of Construction Trends And Forecasts –All Categories, 2007-2009State Of California(DOLLAR AMOUNTS ARE IN $BILLIONS, ADJUSTED FOR INFLATIONAND STATED IN CONSTANT 2008 DOLLARS.)PERCENT CHANGEEST. FORC. 2007- 2008CATEGORY 2007 2008 2009 2008 2009PRIVATE BUILDING CONSTRUCTION (BUILDING PERMIT VALUATIONS IN $BILLIONS)RESID BLDG $29.11 $18.67 $18.76 -35.9% + 0.5%PRIV NONRES BLDG 23.29 20.27 17.64 -13.0% -13.0%TOTAL PRIV BLDG $52.40 $38.94 $36.40 -25.7% - 6.5%PUBLIC WORKS CONSTRUCTION (CONTRACT AWARDS & STARTS IN $BILLIONS)PUBLIC BLDGSSCHOOLS & COMM COLL $ 5.34 $ 5.10 $ 5.27 - 4.5% + 3.3%BALANCE PUBL BLDS 5.22 6.10 5.75 +16.9% - 5.7%TOTAL PUBL BLDS $10.56 $11.20 $11.02 + 6.1% - 1.6%HEAVY CONSTRUCTIONROADS & BRIDGES $ 4.44 $ 4.10 $ 3.74 - 7.7% - 8.8%BALANCE OF HEAVY 7.70 6.05 5.89 -21.4% - 2.6%TOTAL HEAVY $12.14 $10.15 $ 9.63 -16.4% - 5.1%TOTAL PUBL WORKS $22.70 $21.35 $20.65 - 5.9% - 3.3%TOTAL ALL ($BIL.) $75.10 $60.29 $57.05 -19.7% - 5.4%NEW HOUSING UNITS (1,000s)TOTAL UNITS 113.0 66.0 67.0 -41.6% + 1.5%SINGLE-FAMILY 68.4 34.0 34.0 -50.3% 0.0%MULTI-FAMILY 44.6 32.0 33.0 -28.3% + 3.1%CONSTRUCTION EMPLOYMENTTOTAL (IN 1,000S) 892.3 812.7 780.5 - 8.9% - 4.0%SOURCE: CONSTRUCTION INDUSTRY RESEARCH BOARD. NOVEMBER 7, 2008Portable Rock Crushing ServicesAvailable Anywhere in CaliforniaAsphalt & Concrete Recycling YardsLos Angeles, Orange & San Diego Counties;Also in Northern & Central California AreasCMB / CL II Base Material Available800-300-6120THE VOICE OF THE CONSTRUCTION INDUSTRYAssociated General Contractors of California 13


INDUSTRIAL RELATIONSA Year of AccomplishmentsBy Mark Reynosa, Field Services Manager – Industrial Relations Northern CaliforniaWWW.AGC-CA.ORGThe AGC of California’s Mission Statementreferences that AGC is committed toimproving the profitability of its membersthrough excellent services. Labor Relations isone of the key services provided by AGC,and the Industrial Relations Departments inNorthern and Southern California areresponsible for delivering this service. Thefollowing brief review of 2008 achievementsin negotiations, grievance advocacy, andlabor publications exemplifies this commitmentto excellent Labor Relations service.NegotiationsBetween the Northern California andSouthern California Industrial RelationsDepartments, two stand alone MasterLabor Agreements were negotiated in2008. Both departments worked withtheir respective craft committees andcraft negotiation committees duringinformal discussions and/or formalnegotiations with the unions. In NorthernCalifornia, the IR Departmentsuccessfully negotiated new Master LaborAgreements with the Pile Drivers (2008-2012) and a new tentative agreementwith the Cement Masons (2009-2013). InSouthern California, the IR Departmentsuccessfully finalized and published thenew Master Labor Agreements with theOperating Engineers and Iron Workers.On behalf of the industry, the new termsand conditions of a majority of theseagreements, including the new rate andfuture increases, were and will bepublished with the Department ofIndustrial Relations (DIR) for prevailingwage determinations.Grievance AdvocacyThe Industrial Relations Departmentswere responsible for the administration,management, and advocacy of approximately50 grievances in 2008. The objec-14 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


tive with each grievance is to assist andadvise members and to ensure theintegrity of the labor agreement. Amajority of grievances were dischargerelated. However, there were grievancesthat had implications on the intent ofthe respective agreement such as grievancesthat alleged subcontracting, hiring(jurisdictional) and classification violations.One of the benefits of AGC advocacyis the access to craft/negotiationcommittees to review these grievances.Without this advocacy, a negativeconclusion may have occurred for themember. Furthermore, the integrity ofthe labor agreement could have beenjeopardized, which may have created anegative impact to other signatorymembers and the industry.Labor PublicationsSouthern California published anddistributed over 30 Labor RelationsBulletins, while Northern Californiapublished and distributed over 40. Theseinformational and advisory labor relationsbulletins were related to the industryand the Master Labor Agreementsuch as meal and rest periods, inclementweather, union wage and fringe benefitincreases, and holidays. In addition tobulletins, the departments published anddistributed the 2008 Union Directories,2008-2009 Wage Scale Books, andMaster Labor Agreement Binders as wellas held two seminars related to theindustry and contract compliance.These are just a few of the 2008accomplishments. 2009 will be anotherbusy year. The AGC’s Industrial RelationsDepartments are here to serviceour union contractor membership withlabor relations support throughout California.As the only statewide association,continuity of service in Northern andSouthern California with AGC is whatyou can count on. Please contact theAGC Industrial Relations DepartmentSouth or North when questions or issuesarise.For more information about AGCIndustrial Relations services, pleasevisit our website at http://www.agcca.org/services/industrial/or contactthe IR Department South at (626) 608-5800 or North at (925) 827-2422.Susan Lohwasser’s PhotographyCentral & Southern California209-966-5402Northern California415-567-7818• Completion photos •A night shot of the newly completed Camarillo librarywww.thebuildersart.comTHE VOICE OF THE CONSTRUCTION INDUSTRYAssociated General Contractors of California 15


CONTRACTOR SPOTLIGHTWWW.AGC-CA.ORGUnion Engineering Marks 50 Years with AGCErnie Ford and his construction company,Union Engineering Company, Inc., Ventura,reached a notable milestone in 2008: a halfcentury of membership in the AssociatedGeneral Contractors in California.The company that was founded by Ford’sfather, Ernest H. Ford, in 1953 joined theassociation in 1958, and has been an activeAGC member ever since. As the currentowner of Union Engineering Companyalong with his sister, Becky Elkins, Ernest L.Ford has long been actively involved in theleadership of the Tri-Counties District,serving on the Board of Directors and asChair several times, the latest in 2003. Hereceived the District’s Member of the YearAward in 2006.Union Engineering Company is reportedlythe oldest construction company inVentura County. Performing work for bothpublic and private agencies, the company isexperienced in a range of work, including:Ernie Ford was commended for his service asChair of the Tri-Counties Board of Directors in2003, with wife, Carly, by his side.grading, paving and excavating projects;construction of concrete structuresincluding small bridges and stormdrains; pile driving; retaining walls;dewatering; cast-in-drilled hole piles;erosion control; electrical tower and polefootings; electrical substation belowgrade installation; relay houses; pavepower transmission line access roadsincluding maintenance grading anddrainage repairs; installation of undergroundutilities; small buildings; pumpstations; and earthquake retrofitting ofbridges.Although its current workload isconcentrated in Central and SouthernCalifornia, Union Engineering Companyis also licensed and has performed workover the years in Arizona and Nevada.The company continues to be a familyowned and operated business, withErnie Ford serving as president andmanager, his wife, Carly Ford, as secretary-treasurer,and sister Becky Elkins asvice president.Congratulations to Ernie Ford andUnion Engineering Company for 50years with AGC. The AGC thanks himand his company for their many contributionsto the association and the industryover the years!Past PresentFutureFor over 75 years,REED & GRAHAM INC.has served Contractors &Developers throughout the area.We recently upgraded our facilities in San Jose toensure quality production, convenient to the entireBay Area from one location. At Reed & Graham,we are committed to providing the right productsat the right price...now and in the future.Asphalt & Emulsion 800-446-2560✔Base Rock ✔Emulsions-mfg & spread ✔Hot Mix ✔Cold MixOverKote 800-446-2560✔Asphalt Pavement Coating ✔Crack Filler ✔Oil Spot Seal✔Bumper Adhesive ✔Loop FillerGeosynthetics 888-381-0800Statewide✔Geosynthetic Fabrics ✔Geogrids ✔Erosion Control✔Drainage Composites ✔Water Proofing ✔Sediment Control✔Root & Vegetation Control ✔Pipe ✔Containment Liners✔Porous Pavement ✔Green Roof ComponentveroteDivisions of Reed & Graham, Inc.408-287-1400For more information email:sales@rginc.comwww.rginc.comREED &GRAHAMINC.STATE CONTR. LIC. #15841016 VOLUME 38, NUMBER 12 — DECEMBER 2008THE VOICE OF THE CONSTRUCTION INDUSTRY


The VoiceoftheConstructionIndustryCONSTRUCTORCALIFORNIA CONSTRUCTOR MagazineRates and SpecificationsCalifornia Constructor is the award-winning monthly publication for the AGC of California.Distributed statewide, it reaches more than 18,000 readers each month . . . and is nowAVAILABLE ONLINE AND IN PRINT!In a recent reader survey the audience gave the following endorsements:• 84% of readers rated this publication as useful to extremely useful for their business• 97% of the readership rated the overall publication as a “quality publication”• 63% of the audience rated getting the publication and product information as important to extremely importantfor their companies2009 DISPLAY RATESSize 1X 3X 6X 12XFull page $ 2,263 $ 2,150 $ 2,037 $ 1,924Inside Front Cover 2,603 2,473 2,437 2,212Inside Back Cover 2,603 2,473 2,437 2,212Back Cover 2,715 2,580 2,444 2,3092/3 Page 1,801 1,712 1,621 1,5311/2 Island 1,491 1,416 1,342 1,2671/2 Horizontal 1,491 1,416 1,342 1,2671/3 Vertical 1,134 1,077 1,021 9641/3 Horizontal 1,134 1,077 1,021 9641/4 Horizontal 809 769 728 6881/4 Vertical 809 769 728 688Rates above are for four-color advertisements. B&W rates are .80 of four-color rates.FREQUENCYDiscounts are based on frequency of ad placement. Advertisementsneed not run consecutively to receive a frequency discount. If youcontract for more than one ad to receive the lower rate and then in12 months do not run the other ads, you will be short-rated to theearned frequency rate.DISCOUNTSOnly one of the following discounts may apply:Member discount: 20% discount for AGC members.Agency Discount: 15% discounts on ads placed by an accreditedadvertising agency.SPACE AVAILABILITYPlease call ahead to check for space availability. Reservationswill be taken by phone; however, a signed insertion order formis required to guarantee your space.Contact us: AGC of California3095 Beacon Blvd., West Sacramento, CA 95691916-371-2422 phone, 916-371-2352 faxManager, Communications & Conference:Pam Gray • 916-371-2422 phone 916-371-2352 faxgrayp@agc-ca.orgEditor — AGC California Constructor Magazine:Carol Eaton • 707-789-9520 phone, 707-789-9519 faxeatonc@comcast.netAD SIZES Magazine trims to 8.5 x 11"Full pageCovers7.5" w x 10" h7.5" w x 10" h2/3 Page 4.9375" w x 10" h1/2 Island 4.9375" w x 6.5" h1/2 Horizontal 7.5" w x 4.8125" h1/3 Vertical 2.375" w x 10" h1/3 Horizontal 4.9375" w x 4.8125" h1/4 Horizontal 7.5" w x 2.3125" h1/4 Vertical 3.6875" w x 4.8125" hFor full bleed ads, please add .125" to each size of time size.AD MATERIAL REQUIREMENTSPlease supply your digital art as:Adobe Illustrator EPSCMYK, fonts converted to outlineAdobe Photoshop TIFCMYK, 300 dpiAdobe Acrobat PDFCMYK, high-resolution print qualitySEND AD MATERIALS TO:Katherine Culliver • 1-877-260-3621katherine_culliver@mcgraw-hill.comContact us: McGraw-Hill ConstructionPublisher:Kathy Varney • 206-378-4707 phone , 206-378-4720 faxkathy_varney@mcgraw-hill.comAccount Managers:Maggie Hartley • 626-932-6174 phone, 626-932-6163 faxmaggie_hartley@mcgraw-hill.comMichael Moffat • 415-357-8092 phone , 415-357-8096 faxmichael_moffat@mcgraw-hill.comFind us online at: www.agc-ca.org


CALIFORNIA CONSTRUCTOR MagazineEditorial CalendarMonth Features Advertising Close DateJanuary AGC of California’s New 2009 Leadership December 15, 2008February Trends in Project Delivery January 16, 2009Special Focus: Public/Private PartnershipsMarch Legal Issues in the Construction Industry February 17, 2009Special Section: AGC Spring Conference GuideApril Insurance, Workers Comp & Financial Risk Management — Building Your Bottom Line March 17, 2009Special Focus Section: BIM & Integrated Project DeliverySeparate Special Section: AGC Career Days/ Workforce DevelopmentMay 22nd Annual AGC Constructor Award Winners April 17, 2009June Focus on Safety - AGC Safety Awards of Excellence Winners May 15, 2009July Legislative Issues, Grassroots Activism, & Highlights of AGC’s Legislative Day June 17, 2009August Construction and the Environment: Regulatory Challenges Facing California Contractors July 17, 2009Special Market Focus: Green BuildingSpecial Section: AGC Fall Conference GuideSeptember New Technology and the Construction Industry August 17, 2009October Construction Education and Workforce Development September 17, 2009Focus on Education Foundation Activities, Industry LiaisonsNovember Infrastructure/Transportation Construction October 16, 2009Building California’s Ports, Airports & RoadwaysDecember Year in Review/Forecast for 2010 November 17, 2009CONSTRUCTORContact us: AGC of California3095 Beacon Blvd., West Sacramento, CA 95691916-371-2422 phone, 916-371-2352 faxManager, Communications & Conference:Pam Gray • 916-371-2422 phone 916-371-2352 faxgrayp@agc-ca.orgEditor — AGC California Constructor Magazine:Carol Eaton • 707-789-9520 phone, 707-789-9519 faxeatonc@comcast.netContact us: McGraw-Hill ConstructionPublisher:Kathy Varney • 206-378-4707 phone , 206-378-4720 faxkathy_varney@mcgraw-hill.comAccount Managers:Maggie Hartley • 626-932-6174 phone, 626-932-6163 faxmaggie_hartley@mcgraw-hill.comMichael Moffat • 415-357-8092 phone , 415-357-8096 faxmichael_moffat@mcgraw-hill.comFind us online at: www.agc-ca.org


WWW.AGC-CA.ORGMEMBER NEWSMcCarthy Nears Completion OfER Expansion Project1 2McCarthy Building Companies, Inc.was slated to complete work on the72,000-square-foot expansion of theWomen’s Center emergency room atRancho Springs Medical Center inMurrieta in November.The $32.4 million project for UniversalHealth Services, Inc. entailedconstruction of a two-story, cast-in-placeconcrete building with stud framing,plaster exteriors and punched windows.McCarthy is also performing site work atthe 5.5-acre property, includingconstruction of a 252-space parking lotwith associated site improvements.According to McCarthy ProjectManager John Metoyer, work on thehealth facility initially was scheduled forcompletion on December 10 but, despiteadded work scope, the project was acceleratedto an early November completiondate."We've faced a number of constructionchallenges on this emergency roomproject, but we've managed to pulltogether as a team to get more done inless time," said Metoyer. "The project isespecially unique in that it integrates9,000-PSI high strength concrete mix forthe structural columns into the 5,000-PSI structural deck concrete with no coldjoints, which added a high degree ofdifficulty to the concrete work."Placing the 9,000-PSI concrete waschallenging because it cured much fasterthan the 5,000-PSI mix used for thedecks. The columns were poured monolithicwith the deck, which required carefulcoordination and timing for theTHE VOICE OF THE CONSTRUCTION INDUSTRYdelivery of the 9000-PSI mix design sothat the two mixes could be blendedwhere the concrete deck and columnsjoin. McCarthy constructed mock-ups ofthe column-to-deck connections todetermine the best sequence and methodof placement.“It was a tremendous feat and undertaking,”said Metoyer. “We pulled it offwith minimal consequences and gotbetter and better with each pour.”LAUSD Awards Turner$230 Million In SchoolConstruction WorkThe Los Angeles Unified SchoolDistrict (LAUSD) recently awardedTurner Construction Company $230million of contracts to serve as thegeneral contractor for three major newschool construction projects.Turner was selected to performgeneral contracting services for the SaraCoughlin Elementary School inPacoima, Calif. The scope of workincludes an addition to the existingschool, which was built by Turner. Thecontractor will construct a one-storykindergarten building, multi-purposebuilding, a two-story facility for classroomspace and expand and renovatethe kitchen area, library and media lab.Completion is scheduled for September2009.Turner is serving as the generalcontractor for the LAUSD Valley RegionHigh School #5 in San Fernando, Calif.,which is scheduled for completion in3 4New President’s Club MembersSix members were inducted into the AGC ofCalifornia’s President’s Club during the StateBoard of Directors meeting in Indian Wells inOctober, honoring their strong member recruitmentefforts. Among those inducted (all picturedwith Sr. Vice President Tom Foss) were: 1. AnitaYoung of Union Bank; 2.Jim Hunt of Syblon Reid; 3.Clint Larison of Reyes Construction; and 4. TomBrickley of Brickley Environmental. Also inductedwere Tom Foss of Griffith Company andBernadette Jurich of McGraw-Hill Construction(not pictured).September 2010. The scope of workincludes buildings to house classrooms,administration space, food service facilitiesand a gymnasium. Site work includesathletic fields and bleachers.Turner is also serving as the generalcontractor for the LAUSD Central RegionHigh School #13 in Los Angeles, Calif.Scheduled for completion in December2010, the scope of work includes a threestoryclassroom building, administrationspace, a performing arts building, library,cafeteria, gymnasium and athletic fields.In addition, Turner recently substantiallycompleted the LAUSD East ValleyHigh School 1A project in Sun Valley,Calif. 10 weeks ahead of schedule andthree months before the start of the newschool year.Associated General Contractors of California 19


Top 10 Projects AwardsFollowing are the top 10 public project awards California last month, compliments of McGraw-Hill Construction.Low Bidding General Contractor Project Title Apparent Low Bid Project CityAmountManson Construction Berth 145-147 $97,902,892 San PedroWharf Extension 2605Golden State Bridge, Inc. CA/DOT Replace Bridges 01-Hum- $39,290,450 McKinleyville101,200-143.7/145.2,0.3/0.801296104Brown Construction Inc New Student Housing $38,312,000 Arcata(College Creek Apts) XHS503Bay Cities Paving & Grading, Inc. CA/DOT Widening - Ramp Meters & $37,143,789 FremontRoadway Rehabilitation 04253794EDGE Development Inc Old Town Civic Center Ph 2 PW0607 $31,508,998 TemeculaSummit Builders South Region Elementary School #7 $31,500,000 Los Angeles5640063Howard S Wright Constructors ATC / GPC / HSC Buildings at $29,900,000 VenturaVentura College 39120PMC Corporation Phase 1A Tertiary Wastewater $19,148,563 Modesto(Pacific Mechanical Corp.) Treatment 0826Shimmick Construction Temporary Terminal Facility 0807 $19,130,000 San FranciscoZolman Construction & Bascom Branch Library/Community $17,750,000 San JoseDevelopment Inc. Ctr (West Side Library) 143920 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


WWW.AGC-CA.ORGASSOCIATION HIGHLIGHTSVariety of Activities and Events MakeAGC’s 2009 Fall Conference a SuccessBy Pam GrayAGC attendees enjoyed a variety ofactivities surrounding this year’s FallConference in Indian Wells. The eventstarted with Will Durst, a politicalsatirist, providing his own brand ofhumor. A 2 1 /2-hour session with GlennGelman, Glenn M. Gelman Associates,provided participants with “Traits of aSuccessfulContractor.”Social activitieson Friday includeda golf tournament,croquetand bocce balltournaments.Glenn GelmanWill DurstThe eveningfeatured pictureswith our ownRalph Larison’svehicle – the“Woody”featured on theFall Conferencebrochure and theever-popularband “Rockola.”AGC of Californiaand theFall ConferenceCommittee thankour sponsors forthis year’s Conference.Our sponsorsmade it all possible. We hope youcome back next year!Congratulations to all our tournamentwinners, including the following:Golf Tournament:• 1st Place Winners: Gerry DiIoli,John Hakel, Dave Jenkins, Mike Ruzek• 2nd Place Winners: Sean Conrad,John Douglas, Steve McGough, BradWilliams• 3rd Place Winners: Bill Howard, RonRunnels, Erwin Villegas• Closest to the Pin Winners: NikkiAffinito and Kyrk Reid• Longest Drive Winners: SeanConrad and Susan NunanTHE VOICE OF THE CONSTRUCTION INDUSTRYPictured l-r are Fall Conference Chair Michelle Loveall, AGC of CA President Wayne Lindholm, AGC ofAmerica President Doug Barnhart, and Co-Chair Mike Roddy.Crouquet tournament participantsCroquet Winners:• 1st Place Winners: George Atkinsonand Danielle Dennis• 2nd Place Winners: Don Dolly andBillie Mehas• 3rd Place Winners: Beverly Cavinand Tom MehasBocce Ball Winners:• 1st Place Winner: Issac Alford• 2nd Place Winner: James BaldwinThe “Woody” carAssociated General Contractors of California 21


SAFETY CORNERAGC’s Safety & Health CouncilHard at WorkIn Regulatory, Legislative and TrainingArenas, Council Had Successful 2008,with Much Planned for 2009By Bo BradleyThe economy may be slow, but safety surelyisn’t! 2008 has been a very busy year withlots of action towards achieving our biggergoals and defeating legislation and regulationsthat lead us away from those goals.The Safety & Health Council, along withour Advocate Jamie Khan, was instrumentalin defeating AB 354. The measure wouldhave required anyone dealing with any kindof lead to go through a registration processsimilar to the asbestos requirements. It didnot enhance safety in any way. We were alsoinvolved in defeating AB 1988, which wouldhave had you pay to file an appeal and proveyour abatement prior to your appeals hearing,among other things.While the Concrete and Masonry Dustregulation was not popular with everyone,we were involved in the drafting of the regulation,and the majority feels that the way itis now written is doable for the constructionindustry. It could have been completely outof our control had the original language inthe proposed legislation gone through.The Safety & Health Council is workingwith Cal/OSHA and other associations tocreate an affirmative defense for the“Controlling Contractor.” If the regulation iswritten and passed correctly, this will helpthe general contractors practicing due diligenceand documenting it to not bepunished for the action of a subcontractor.It is believed that having this regulation willfirm up and clarify the difference betweenOveraa and Harris decisions and give thegood GC’s clear direction on what to dowithout having to involve an attorney.We are in the process of reviewing all ofthe videos in the Safety Lending Library(free rental to AGC of California members!)and updating them. If the content is stillrelevant, we will convert the VHS to a DVD.Eventually, the goal is to have the entirelibrary converted to DVD format. As youcan imagine, this is a time consumingprocess, and we are fortunate to have manyvolunteers!WWW.AGC-CA.ORGThe Annual AGC of CaliforniaSafety Excellence Awards was held inSouthern California for the first timethis year. We had a wonderful turnout,with some amazing awardwinners! Those winners are noweligible to apply for the NationalConstruction Safety ExcellenceAwards, and many are in the processof doing so. Keep an eye out inFebruary for the 2009 award applications.Another change to the AnnualSafety Excellence Awards is that theywill be held at the Spring Conferencein Monterey in 2009. Be sure toreserve your seat when you registerfor the Spring Conference, and planto stay for the Safety & Health Councilmeeting the next day.Also ahead for 2009, AGC will beoffering multiple Train-the-TrainerClasses for Heat Illness Prevention in2009. Be sure to check the eventcalendar at www.agc-ca.org fortraining near you.The Safety & Health Council isworking on our brand, so watch forour new look! We have over 130members and we’re growing. Do youhave a representative on the Safety &Health Council? If not, you’re missingout! You’re missing having astrong voice in the legislative andregulatory arenas as it pertains toconstruction safety. You’re missingbeing involved in the forming ofregulations. You’re missing valuablenetworking with fellow safetyprofessionals who bring a wealth ofknowledge to share. To learn moreabout the Safety & Health Councilor apply today, please call Tricia at(916) 371-2422.CALENDAR OF EVENTSDecember 18San Joaquin District Stormwater PollutionPrevention at the Fresno Metropolitan Flood, FresnoDecember 228-Hour HAZWOPER Annual Refresher at JoshuaCasey, AnaheimJanuary 5-6Sage Timberline Estimating Fundamentals inSan Francisco - Pleasant HillJanuary 8On-Center On-Screen Takeoff training in SanFrancisco - Pleasant HillJanuary 12Introduction to Building Information Modeling inLos AlamitosJanuary 14-1624-Hour Stormwater Pollution Prevention forConstruction Sites in Santa AnaJanuary 16Sage Master Builder Project Management course inSan Francisco - Pleasant HillJanuary 19Sage Master Builder Project Management course inManhattan BeachBuilding Information Modeling Coordinationtraining at Los AlamitosJanuary 20-21Sage Timberline Estimating Fundamentals inManhattan BeachJanuary 23On-Center On-Screen Takeoff training inManhattan BeachJanuary 26Navis Works Coordination in Los AlamitosJanuary 29-30AGC of California’s 1st Quarterly Division and StateBoard of Directors Meetings and Installation of OfficersBanquet at The Island Hotel Newport BeachFebruary 4-624-Hour Stormwater Pollution Prevention forConstruction Sites in Santa AnaFebruary 19Riverside-San Bernardino District MembershipMeetingMarch 2-3Sage Timberline Estimating Fundamentals inSan Francisco - Pleasant HillMarch 4-624-Hour Stormwater Pollution Prevention forConstruction Sites in Santa AnaMarch 4-7AGC of America 90th Annual Convention inSan DiegoMarch 9-1124-Hour StormwaterPollution Prevention forConstruction Sites in Fresno and OceansideMarch 13Sage Master Builder Project Management course inSan Francisco - Pleasant HillMarch 16Sage Master Builder Project Management course inManhattan Beach22 VOLUME 38, NUMBER 12 — DECEMBER 2008 THE VOICE OF THE CONSTRUCTION INDUSTRY


WWW.AGC-CA.ORGCONTRACTOR OUTREACHAGC Member Marina Landscape DonatesNew Landscaping for Western High SchoolAt over 50 years old, Western High Schoolin Southern California needed a lift. Thestaff at Western felt that the school coulduse some beautification improvements.Marina Landscape, Inc. worked withAssistant Principal Bob Jauregui to identifytwo critical areas within the schoolthat were in need of immediate attention.The first area was a large emptyplanter box in the school’s quad. Nearbyplanters contain established Pine andLiquid Amber trees, but the empty boxTHE VOICE OF THE CONSTRUCTION INDUSTRYwas collecting trash and was a potentialsafety hazard for students. The secondarea requiring improvement was a gardenon the south side of the campus. Thisfenced-in area contained some concrete,along with weeds and trash. The fencehas remained locked for over 10 years, sothe students have not been able to usethis area for studying or eating lunch.Marina Design Group LandscapeArchitect Corey Fox developed landscapeplans for the school’s garden, and MarinaDesign Group Irrigation Specialist ChrisCurry designed a new, efficient irrigationsystem to keep the future garden greenand healthy. On August 16, 2008, Marinaarrived at the school with a team of over20 landscape professionals who volunteeredtheir time and the materials neededto give the planter and the garden afantastic makeover. Several Western HighSchool students and teachers, along withAssistant Principal Bob Jauregui, were alsopresent to assist with the project.In the quad, Marina planted a 36” boxLiquid Amber, and planted the base of thetree with Begonias to add some color.Begonias were also planted around anexisting Liquid Amber in an adjacentplanter box.In the garden, Marina removed allexisting trees, fences and concrete, leavingbehind a single Plumeria plant in thecenter. Irrigation trenches were dug byvolunteers, and a new irrigation systemwas installed. Boulders were brought in,and many beautiful new plants wereadded to the garden, including YellowDaylilies, Variegated Lily Turf, HeavenlyBamboo, Mondo Grass, Philodendron,Pygmy Date Palms, Loquats, and a PurpleLeaf Plum.Marina later returned to the site toinstall new benches in the garden for thestudents to enjoy.Associated General Contractors of California 23

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