Greetings!

12-4-15

John’s Soapbox:

Easier Said Than Done!

I spent my “formative years” bidding and trying to build Public Works projects and make a profit. Yes-I tried to do it safely, but my primary goal was to get it done, get it done in accordance with our schedule, and hit our budget or beat it. These rather simple goals put me at odds sometimes with the Engineers who always had “designed it perfectly” and the Owners who refused to ever admit that something was being demanded of the Contractor that he was not required to do at the time of submission of his bid. I always thought if the Owner had not paid for the work at the time of bid, and it was reasonable to assume the Contractor could not have known the work was required at the time of the bid, the Contractor got to be paid for that “extra work”. Funny-the Owners and Engineers did not see black and white issues like I saw black and white issues.

I now get a chance to listen to “war stories” that are quite similar to what I experienced from 1979 through 2007 (roughly the year I stopped listening and experiencing!). I am thinking there is a problem, and a solution to the problem that I faced, and that many of you face in making money on Public Works projects today.

The problems to making money in Public Works Projects is as follows:

1. Contractors and Engineers never have just the right amount of time and information to “nail down” all of the “moving parts” that need to be analyzed for a truly accurate design and cost estimate for building what is represented by the plans and specifications supplied to us to bid on.
2. Contractor goals are hardly ever aligned with the designer’s goals or the owner’s goals. Therefore, there are three (or more) very competent groups of people all striving to reach their own goals in descending order of importance to their respective firms. It can get complicated quickly.
3. Contractors are required to perform the work but someone else has to decide if the work is acceptable or not. This creates differences of opinion in progress scheduling, and progress payments and final completion ‘triggers”.
4. Even if a Project has a very qualified and experienced Contractor, a great set of Project Plans and Specifications, and an owner with “deep enough pockets” to pay for the work, the world is so complicated that sharing of information is not synced up and delays are hard to absorb with the thin margins (or no margins) that it takes for the Contractor to be the low bidder in the first place. Keep in mind the Engineer generally has a fixed budget to some extent as well.

So how can this very “dynamic” situation be quantified, measured, and have time and cost considerations assigned to it in a reasonable way? Lots of consultants make a living on all of this right?

How about considering formal or informal partnering on more projects? My experience is that partnering provides a means to align the various goals and priorities of each entity, and provides a methodology to share in the risk/reward of putting the three disparate groups together to come up with a better solution than any of the three could have on their own. The Owner, the Engineer, and the Contractor HAVE TO GET ALONG. None of them are perfect and we all realize how competitive the elusive Public Works profit dollar is, so how about helping each other out? Instead of putting all of the “means and methods” of performance of the work on the Contractor, and trying to influence and regulate the Contractor’s means and methods throughout the project, the Engineer and Owner can have an opportunity to avoid claims and delays by partnering with the Contractor to get the job built to the goals that overlap and do not conflict.

Easier said than done?

More to come on this issue—–

That’s All Folks!

John

Recycled Road Materials

The Transportation and Public Works Department is always seeking opportunities to re-purpose, reuse or recycle materials used in our Field Operations.  Each year we recycle about 2000 tons of the asphalt removed from City streets that have failed.  We take most of this material to an asphalt plant, where it is crushed and processed into an asphalt mix that can be used as a new roadway surface.

Before the old material can be added to a new roadway asphalt mix, it must first be crushed and screened to the appropriate size. This material is then used as part of an asphalt mix we call RAP or Recycled Asphalt Pavement. The RAP mix used to rebuild Santa Rosa’s streets contains 20% recycled asphalt.  RAP is quite durable and has a similar life expectancy to that of asphalt mixes made with all new materials.

Asphalt recycling reduces the consumption of scarce natural resources (aggregate and asphalt) and fossil fuels.  Recycling asphalt also dramatically reduces the consumption of resources such as fuel, machinery, transportation and labor when compared with producing virgin asphalt materials.

Did you know that asphalt is the most recycled material in the USA?

According to the Federal Highway Administration, 75 million tons of reclaimed asphalt pavement is reused every year.  This is nearly twice as much as paper, glass, aluminum and plastics combined.
video

video

FUNDING: Senate passes FAST Act, sends it to President Obama

For more information, click here!

Coming up!

The ECA Spec Committee has started meeting again. The committee is partnering with the City of Santa Rosa and discussing Bioswale issues, asphalt temperature requirements, and Santa Rosa sand equivalent specs for Class 2 baserock. With these discussions, the city will look into their requirements to see if any changes can be made.
Also discussed is partnering with the City in notifying ECA when they receive changes from DOHS and other public agencies.  We will notify our members first! Another reason to be an ECA member!

The first notification is from Colleen Ferguson, Deputy Director- Engineering in Capitol Projects Engineering:

“Effective immediately, the paint color for raised medians/nose islands is yellow (instead of white).  This change applies to projects currently under construction for which paint has not yet been applied.

Please also use this new standard for projects in design”.

These notifications will be included in our newsletter and will be located on our website under News – Announcements. Here is the link

Members in the News

Tom Jackson, General Manager of Veale Outdoor Advertising:
Northbay Biz – Outreach and Marketing: Get Their Attention  link

Business Journal Profile:  Marv Soiland link

North Bay Business Journal –
Spotlight: Leaders in Contracting, Richard Ghilotti, Ghilotti Construction Co.; Mike Ghilotti, Ghilotti Bros.; Glen Ghilotti, Team Ghilotti – Link

North Bay Business Journal – Guest commentary, Steve Page, General Manager of Sonoma Raceway, A private-sector solution for Hwy. 37 gridlock link

Greetings!

11-11-15

John’s Soapbox:

“OMG, LOL, BFF”

ARE YOU READY FOR THE MILLENNIALS?

Maybe “The Millennials” sounds like a new Pixar movie (ok-you are in a world of hurt if you do not know what a Pixar movie is). One thing for certain-as the last work force group known as the Baby Boomers age, retire, and move on, the new work force group, the Millennials, are nothing like the old group. If you know that, and are prepared for that, GREAT! Or as my demographic used to say – “Far Out”. For those that have not given their company culture, policy manual, website and communication system the makeover needed to connect with the Millennials, here are some interesting things for you to consider.

By the end of 2015 the Millennials are expected to overtake the Baby Boomers as the predominant work force group. Compounding this in the Construction industry, is that the majority of the majority will be Latino Millennials. Are you ready for that?

The Baby Boomer group who lived to work, and worked to live, will be phased out by a far more collaborative group of workers who learn differently, think differently, use and view technology differently, and will work differently than what you have been used to for the past 30 years. If you are not ready for this group, you may suffer finding and keeping good employees over the next 5-15 years. We are talking about that group of young people who were born in the 1980’s and 1990’s. That group is in their 20’s and 30’s right now.

For a Millennial who was born in 1988, when he or she graduated from high school, social media platforms like MySpace and YouTube were hitting the big time. Texting first came out in 1992 when they were four and they taught their parents how to text.  These workers know social media and are quite literally attached to their smart phones. Most of them (4 out of 5) go to sleep with their smartphones right next to them in their bed.

Part of the main difference is that these Millennials are “instant gratification junkies” when it comes to information. If you think you are going to have your senior people trot out the same “Power Point” presentations they did 10 years ago, and hold the attention span of someone who does everything in milliseconds, you are wrong. This new work force wants their information in 5 minute segments and they are not going to have the attention span to sit through a two hour presentation that does not demand interaction and change every 5 minutes or so.

In 2013, 18% of Millennials do not own either a laptop or a desktop computer or a land phone. They do everything on tablets and IPhone or Smartphones. In other words, these workers are mobile. And that fact is not just about communicating and informational gathering. If they do not have a chance to get the lifestyle they want from your firm in the environment they crave, they will go mobile on you and go find it elsewhere. Pay is not the primary reason for staying in a job anymore. Continuous learning is the Millennials’ trademark. They are driven by the ambition to learn and advance with skill sets, and collaborative accomplishments that they enjoy sharing with many people. Millennials are “job hoppers” and that should make you “elderly” baby boomer managers cringe thinking about training them, trusting them, then watching them head out after three years because another firm has a better website and culture that appeals to them. Time to “get on board” the Millennial train. If you cannot beat them, learn to keep them!

As we continue to see decreasing supplies of workers for our construction crews, we need to focus on where the next group of workers and managers will come from. And since our crews are made up of (roughly) 60-70% Latinos, it is fair to say that your future managers are, for the most part, working in the field for you right now. Replacing a laborer is a tad bit easier than replacing an estimator that is getting ready to retire.   So what I am thinking, is the ECA can play a critical part in helping our membership out by facilitating some training programs that focus on a couple of items: 1) getting young people interested in construction work as a vocational career when college is not a viable or desirable option for them, and 2) providing “new age” training and skill workshops that appeal to the Millennials for grooming their skill sets for advancement in the types of lifestyles they are so ambitious to find, and 3) providing “continuing” education to we aging Baby Boomers that need to learn to communicate and work alongside the Millennials coming fast on our heels.

OMG.

That’s All Folks!

John

Money for Roads

Sonoma County supervisors on Tuesday voted to spend $13.5 million on county roads for over the next two years.

ECA wants to thank Craig Harrison & Michael Troy of SOS, Chris Snyder of OE3, Eric Levy of R&S Trucking, Art Deicke of Environmental Pollution Solutions & Cynthia Murray of NorthBay Leadership Council. All helped support and advocate for our roads!
link

10-13-15

John’s Soapbox:

Impossible-What If It Wasn’t?

After decades of underfunding of County roads and infrastructure, here we are in 2015 with the Supervisors having a chance to increase funding to make our roads better. While it is generally acknowledged that we have really crappy roads, the cost to make them go from “really crappy” to “good” is somewhat subjective. A reasonable estimate is that $40 million per year for the next 10 years could make a noticeable impact to the good.

So the County decided to reach out to business and industry in 2014 and ask us to “lead” an effort for a sales tax measure that would help fund the needed road repair costs. Thus was born Measure A and only 38% of the voters decided they wanted that tax measure to pass so it went down in defeat in June of 2015. What to do?

Well, the ECA, SOS, and OE3 have teamed up to advocate for additional budget dollars for our roads. We have been talking with Supervisors, Transportation and Public Works staff, and the County Admin staff to help convince them to recommend more dollars be directed towards road repair. While this is happening, the County has virtually every union collective bargaining agreement being renegotiated. Obviously, the renegotiation of these County worker’s pay/pension/benefits packages can have a HUGE impact on the available funds for road repair.

Please understand that I am not trying to take money away from hard working County workers. However, the way those contracts are negotiated is far different than how road funding is handled. Professional negotiators send offers, comments, and acceptance/rejection of terms, benefits, durations, etc. and none of these negotiations are public knowledge. Why not?

Here we were with Measure A trying to get a ¼ cent sales tax passed so we could raise $20 million per year for road funding. Voters did not trust that the Supervisors would spend it on roads as it was proposed as a General Tax. But the County is negotiating for County worker compensation that could far exceed what Measure A would have brought in. The County now has over 4,200 workers and a 1% increase in their compensation package would cost the County $4.6 million per year. I hear one union is asking for an 8% increase over 6 months. God Love Them. But-if the County employees all got that, that would be an increase of $36,800,000 per year. That is nearly the same amount it is estimated that our road repair costs are in order to make our roads go from “crappy to good”. So why are voters not able to decide how they want the current stream of tax income be spent?

I say, let the voters decide. Negotiate the best deal you can, then put the vote out to the voters to see if they want to have THEIR tax money go towards road repair, or County employee compensation packages.

Think my idea has a shot? Haha. Not a chance. It would be impossible. But, as the Grinder asks, Impossible-What If It Wasn’t?

Perhaps the solution is to have ECA members write or call in to their Supervisors and tell them how they want their tax monies spent. Here (again), are the contacts for your Supervisors:

Supervisor Susan Gorin – Susan.Gorin@sonoma-county.org
Supervisor David Rabbitt – David.Rabbitt@sonoma-county.org
Supervisor Shirlee Zane – Shirlee.Zane@sonoma-county.org
Supervisor James Gore – James.Gore@sonoma-county.org
Supervisor Efren Carrillo – Efren.Carrillo@sonoma-county.org

That’s All Folks!

John’s Soapbox:

TAKE BACK OUR ROADS!

Tell Your Supervisor You Want County To Focus On Road Repairs!

The time has come for our industry members to step up, and sound off to your elected officials in Sonoma County. Our roads are in terrible shape because of several reasons:

1. We have 1384 miles of County roads
2. The County has spent money on other costs (like “Cost Of Living Allowances for their workers, pensions and public safety).
3. The rural roads were not built that great to begin with-some were just asphalt laid down on minimal baserock sections.
4. The lack of sealing the surface regularly has led to intrusion of water into the subbase. This accelerates the deterioration of the wearing surface dramatically.

There is a “not so hidden” cost to all that drive our rough roads. Studies have shown it costs an average driver upwards of $600/a year due to lower fuel mileage, tire wear, alignment and shock issues wearing out your vehicle faster. Our Supervisors know all of this. Yet, they tend to react and act in response to the loudest noises they hear. Since Measure A failed, the loudest voices they are hearing are for homeless advocates and affordable housing. There is a move to reduce the spending on fixing our roads and use that money for homeless shelters/housing/services, increasing wages for County workers, and many other costly special interest issues.

What we want is for the County Supervisors to “hold the line” or increase spending on fixing our roads. Voters defeated Measure A but not because fixing the roads was not important. They defeated the additional tax mainly because they believed the County already has enough money, they just need to prioritize their budget on roads more. And every one of the Supes said they would in June of 2015. Let’s remind them!

Here is the ask: Can you find the time to make one email, and one phone call per week for the next 4 weeks to each of the five Supes to request they spend more money on road repair in Sonoma County? If you can, I can guarantee this will have an effect-a positive one. Phone number for the County Supervisors is 707-565-2241. Here is emails for the Supes:

Supervisor Susan Gorin – Susan.Gorin@sonoma-county.org
Supervisor David Rabbitt – David.Rabbitt@sonoma-county.org
Supervisor Shirlee Zane – Shirlee.Zane@sonoma-county.org
Supervisor James Gore – James.Gore@sonoma-county.org
Supervisor Efren Carrillo – Efren.Carrillo@sonoma-county.org
That’s All Folks!

John Bly

Greetings!

9-16-15

John’s Soapbox:

TAKE BACK OUR ROADS!

Tell Your Supervisor You Want County To Focus On Road Repairs!

The time has come for our industry members to step up, and sound off to your elected officials in Sonoma County. Our roads are in terrible shape because of several reasons:

1. We have 1384 miles of County roads
2. The County has spent money on other costs (like “Cost Of Living Allowances for their workers, pensions and public safety).
3. The rural roads were not built that great to begin with-some were just asphalt laid down on minimal baserock sections.
4. The lack of sealing the surface regularly has led to intrusion of water into the subbase. This accelerates the deterioration of the wearing surface dramatically.

There is a “not so hidden” cost to all that drive our rough roads. Studies have shown it costs an average driver upwards of $600/a year due to lower fuel mileage, tire wear, alignment and shock issues wearing out your vehicle faster. Our Supervisors know all of this. Yet, they tend to react and act in response to the loudest noises they hear. Since Measure A failed, the loudest voices they are hearing are for homeless advocates and affordable housing. There is a move to reduce the spending on fixing our roads and use that money for homeless shelters/housing/services, increasing wages for County workers, and many other costly special interest issues.

What we want is for the County Supervisors to “hold the line” or increase spending on fixing our roads. Voters defeated Measure A but not because fixing the roads was not important. They defeated the additional tax mainly because they believed the County already has enough money, they just need to prioritize their budget on roads more. And every one of the Supes said they would in June of 2015. Let’s remind them!

Here is the ask: Can you find the time to make one email, and one phone call per week for the next 4 weeks to each of the five Supes to request they spend more money on road repair in Sonoma County? If you can, I can guarantee this will have an effect-a positive one. Phone number for the County Supervisors is 707-565-2241. Here is emails for the Supes:

Supervisor Susan Gorin – Susan.Gorin@sonoma-county.org
Supervisor David Rabbitt – David.Rabbitt@sonoma-county.org
Supervisor Shirlee Zane – Shirlee.Zane@sonoma-county.org
Supervisor James Gore – James.Gore@sonoma-county.org
Supervisor Efren Carrillo – Efren.Carrillo@sonoma-county.org
That’s All Folks!

John Bly

8-28-15

John’s Soapbox:

So What Happened to The Sonoma County Supervisors Commitment To Roads?

June 1, 2015 the voters rejected a Measure A sales tax initiative that would have added ¼ cent to County purchases for fixing County and City roads. The voters rejected it soundly. The ECA was a major advocate in this failed attempt, and many of our members wrote checks and supported the effort. Here we are, 3 months later, and it is time to put Measure A behind us and come up with a better plan.

Before coming up with a strategy, let’s look at what the Supes said following the defeat of Measure A:

District 1 Supervisor: We heard our community loudly and clearly – roads are a priority,” said Board of Supervisors Chairwoman Susan Gorin, as she acknowledged this month’s ballot-box defeat of Measure A, a proposed quarter-cent sales tax increase that supervisors said they intended to spend primarily on road fixes. “We’re going to focus on them in the near-term.”

District 2 Supervisor: We need to make sure we look under every rock and assign dollars to pavement preservation,” Rabbitt said. “We have to figure out what we’re doing long-term.”

District 3 Supervisor: It is frustrating; we want to fund as many roads as we can,” Zane said, while asking her fellow Board of Supervisors colleagues to join her in advocating to spend roughly half of the county’s delinquent property tax revenue set aside in a reserve account. “Why can’t we spend it?”

District 4 Supervisor: We can’t kick the can down the road any longer because it’ll fall in a pothole,” Gore said, reciting popular rhetoric he used last year during his campaign for supervisor.

He said the county could look at private financing to pay for road repairs or perhaps tax revenue from hotel bed taxes.

District 5 Supervisor: “The campaign was awfully run from the onset,” said Carrillo. “It’s not at all surprising. This is a reflection on the voters’ inability to trust the board.”

What the voters in essence said by rejecting Measure A, is that “we do not trust the Supes without a specific and accountable commitment of our tax dollars. The voters also said with their “NO” votes, that they felt the Supes had enough dollars to fix the roads but they needed better prioritization and improved efficiencies to come up with the needed money to fix our roads.

There is zero appetite for any more tax measures. Rest assured, I am not going to forget the public comments of each Supervisor last year making statements that roads are our biggest priority.

The ECA will do the following:

1. I will personally discuss the road funding priority with each County Supervisor in the next few weeks.
2. I will meet with several other groups to strategize on how to apply pressure to the Supes to have more priority given to roads – AS PROMISED BY EACH OF THEM!
3. I will write an Op-Ed piece to the Press Democrat urging voters to refocus on roads in light of the Supes seemingly trying to spend money on everything else-from a “Living Wage” to expanding their number of employees in the last few months.
4. I will organize and advocate for other groups to write each Sonoma County Supervisor and urge them to refocus their attention on funding for roads.
5. I will send our Emergency Manual out to the County Emergency Director again, and urge them, in person, to call those contractors and suppliers listed in our manual if and when El Nino hits this winter.
6. I will write a “white paper” fact sheet on the impact of wet weather on roads that are cracked and explain to each Supe the additional cost will be on them If they do not find the dollars to fix the roads sooner rather than later.
7. I will also work with affiliated groups more on the State level to pressure the State to devote more STIP dollars to Sonoma County and Marin County roads.

Your thoughts and opinions are always welcome!

That’s All Folks!

John Bly

Greetings!

8-11-15

John’s Soapbox:

Can We Build Our Way Out Of Housing Shortage Problem?

For those of us who have experienced the boom and bust cycles of housing construction in California, we are not surprised there is a current shortage of housing. We have 350,000 new residents each year and to accommodate them, one would figure we would need at least 150,000 housing starts each year to house them. In 2009, there were 36,000 housing starts in all of California. During the 2010-14 period, for example, Los Angeles County’s population grew by nearly a quarter-million, but it added fewer than 40,000 housing units. During the same period, San Francisco, despite its geographic limitations, grew by nearly 50,000, but built fewer than 10,000 housing units (from Dan Walters’ Op Ed piece found here–

Duh. The obvious solution would be to build more housing.

Problem #1: Building costs are high. Anybody think they are going to get lower?

Problem #2: Since redevelopment dollars dried up, Cities and Counties are looking to require inclusionary housing fees on houses that are sold. Recently, a court decided that those fees are legal. Given that rental housing is becoming the “newest need”, is it any wonder that Cities are considering inclusionary housing fees be imposed on rental units? Two years ago, the now Speaker of the Assembly in California, carried a bill to overturn a 2009 Supreme Court ruling that made inclusionary housing fees illegal to attach to rental units. Governor Brown vetoed that Bill. For once, I agree with Governor Brown! With the recent victory in San Jose that inclusionary housing fees are legal for units that are sold, we can probably expect another attempt to overturn the 2009 Supreme Court ruling and make rental units subject to inclusionary housing fees. If that ever happens, developers will not build as many rental units as they might otherwise build.

Problem #3: The environmentalists have lots of tools to be “NIMBYS” and fight new development due to increased traffic, reduced water supplies, and potential loss of habitat for little critters like the Tiger Salamanders.

Problem #4: Are the 350,000 new California residents coming in as qualified, highly paid, professional people who can qualify for a home purchase? Nope. The types of jobs being created in California, by and large, are more service oriented jobs that are lower paying and therefore put more demand on the low income housing and rental sector.

Problem #5: Some of our local elected officials see rent control as a partial solution to our local housing crisis. It is widely known that the City of Santa Rosa is considering a “Richmond Like” rent control ordinance that would impose new rules and regulations, as well as a hefty fee, onto current owners of rental stock. Here is a recent article on the Richmond Rent Control ordinance-

Problem #6: Housing starts already have approximately $95,000 of fees per unit in Sonoma County. Since costs and environmental mitigation costs are high already, some proposed developments cannot absorb any more fees (that are passed through to the buyer by most, if not all, developers/builders). Although they could take the cost and simply add it to their sales price, what is happening is that where the available land is for constructing these homes, the required higher prices are too high for lenders to loan the money to potential buyers (i.e. there is no “comp” that would allow the lender to qualify a buyer for a house over $600,000 in Roseland for example). The fees have priced the houses out of the lender’s capabilities.

Problem #7: Nimby’s do not want more houses built near them. That is a generalization, but It is true more than not.

So-is your answer the same as when you started reading this? Did you think you could build your way out of the housing crisis?

What the ECA is doing is attending the City Council Study Sessions on August 18th & September 22nd to listen and participate in educating the Council members as to how development feasibility is compromised if too many fees are imposed. Please read the NCBE newsletter and try to attend the City Council Study Sessions on August 18th and September 22-here

The ECA takes the position that the City of Santa Rosa cannot impose any more fees on developers as they will simply pass them through to the buyers and the buyers will not be able to qualify for the higher prices. The City needs to find alternative means to subsidize and “fast track” housing starts that have fees waived or slashed in order to get more housing units built fast!

How does this affect ECA members? Easy-our roads and infrastructure needs expanding, replacing, and updating. More housing will allow for more infrastructure work.

Long Live Development!

That’s All Folks!

John Bly

Greetings!

8-4-15

John’s Soapbox:

Golf? There Was Golf Too?

If you attended and played at our ECA Golf Tournament Friday, you know what I am talking about! That was a blast! The weather was perfect, the food was incredible, and the vibe from all the players/volunteers/sponsors/and staff was terrific.

The Hospitality Hole Winner was “CLOVER DALE ALE/Able/George Petersen Insurance”. This was a tough choice but the food won out over the Mariachi Band at the BoDean Hospitality Hole. Close voting and both groups put on an incredible and generous and thoroughly fun escape for the weary golfers! I honestly can say this was the best two Hospitality Hole Sponsors this tournament has EVER had. Thanks to Dean and Belinda Soiland, Josh Cleaver and the entire group of volunteers they had at their spot! A special thank you for Rod Brownlee and his entire family, Doug Dilley who brought his son with him, and the helpers they had as well. The little crackers with the spread topped by the filet mignon slice was my favorite but the oysters, the scallops, the mango coleslaw, and the filet was equal to or better than most restaurants around here. Over the top! Please try to do business with CLOVER DALE ALE, Able Maintenance, Petersen Insurance, and BoDean Quarry!

The other Hospitality Holes were fun as well. Longtime supporter Heffernan Insurance “represented” with Linda and Lisa over on Hole #18 with their setup, and RDO Integrated Controls was setup with their lasers on Hole #11 manned by Troy and Mike. Longtime supporter Western Water Constructors and Safety Pride was out on Hole #10 with Jim showing off the safety trailer. Brent was over on Hole #7 with his Parrot and Santa Rosa Golf and Country Club. Hansel Ford was out on Hole #13 with that beautiful truck with Paul manning the hole all day. Nobody came close but I bet everyone liked that red truck! Please consider Hansel Ford for your next rig, Heffernan for your insurance, and RDO for your level and grade controls! Give Western Water a chance to bid on your projects, and give Jim a chance to do a safety class for you from Safety Pride. When you want to golf, swim, or workout in an exclusive club, give Brent a call to hear how affordable he can make the Santa Rosa Golf and Country Club.

Jodi from Oldcastle Stormwater Solutions, was out there looking happy and good all day greeting the patrons, and TDE cruised around with their beverage cart with Jamie and Danielle and Ghilotti Brothers manned their cart with Gwen and Aixa. Thanks to all five of those hard working girls! Buy from Oldcastle, Rent from TDE, and hire Ghilotti Brothers for your next project!

Check in was done by Corinna from Pace Supply and her son David, helped by Laura from Brelje and Race Engineers, and Michelle from Gallina LLP. You can buy your pipe and valves from Pace after Brelje and Race designs the mechanical system for you, and all the money you make can be handled by Gallina LLP to keep you in compliance with your taxes!

All of our Committee members should get special recognition for putting up with me and getting a great tournament run well for all of you-Josh from BoDean, Lisa from Heffernan, Steve from Exchange Bank, Corinna from Pace, Jodi from Pisenti and Brinker, Brett from Soiland Co. and Laura from Brelje and Race. Thank you to Chet Laws for the photography for the day! Please go to this link to find your photo!!! Please give all of them a big thank you by considering their firm for your business!

Can’t forget to thank Victor from EPIC helping out with the Putting Contest!

As usual-Mary Kennedy Cabrera was a wonder. And let’s not forget her hubby Tony. He is out there all day and handing out stogies and helping wherever we need help.

A great day! Thanks to all you players. Here are the winners:

Low Gross was Kadon Trucking – Tim Bogue, Jay Jaehnig, Ken Crownover, Tony Coscia who shot a 52!

Closest to the Pin was Frank Lillo with The Wattle Guys

Accuracy Drive winner was John Preston of Pace Supply

Putting Contest Winner who had one putt for $10,000 was Mike Lazaro.

See you next year!
Thank you!

That’s All Folks!

7-24-15

School’s Out?

Dating back to the 1940’s, Contractors are liable for paying back school districts should they sign a contract they know is illegal. With the recent court decision regarding the City of Fresno Unified School District vs Harris Construction Inc., many Contractors that have performed, or are considering performing, work for school districts under a Lease-Leaseback type of contract, may be entering into an illegal contract. Actually, with the recent decision, they WILL BE entering an area where the contract is illegal. As such, if a Contractor did that, they could perform all of the work and be forced to pay back all of the Contract revenue with the work in place. Ouch! To read about the Court decision, click here

The method called “Lease-Leaseback” was created to allow cash strapped school districts to pay for capital improvement projects by allowing them to bypass traditional competitive bidding on projects and they could hand select a contractor/developer to build the project for them. The way it works is the school district would lease the land to the developer for $1 and the developer would pay all the costs of building the project. At the end of the project, the school district would then pay the developer (usually over time) an agreed upon amount that they had negotiated prior to construction and once paid, the school district would then own the improvements as the “lease” would be concluded. This allowed the school district several years to get the dollars to build a project they needed “right now”.

I personally know several local ECA members that have been involved in these types of contracts and the fact that the recent court case has now deemed these types of contracts illegal, places some level of exposure on those contractors. I understand that it seems unfair to imagine that the school district could actually be repaid all of the costs of construction while getting the benefit of the completed project to utilize, but that is currently where the situation stands. Several groups have lobbied to fight this inequity on behalf of contractors and you can read about that here-–

Man oh man-what a tangled web we weave. It seems school construction should be as simple a process as one could get in contracting. However, smart developers and contractors have devised this means of getting work without competitive bidding that now has put them into harm’s way and they want their liability removed. There is lots of talk and effort in Sacramento to get a new bill passed that would negate the liability of Contractors that have performed work under these Lease-Leaseback arrangements. A good editorial is by Dan Walters and you can read it here–

So be aware! If a deal that gets you into the driver’s seat sounds too good to be true when public monies are involved, it is probably because it is too good to be true. Be careful guys!

That’s All Folks!

John Bly