agc of california - omni rancho las palmas, rancho … · 2013-10-24 · 3.3 agc of america ceo’s...

STATE BOARD OF DIRECTORS & ANNUAL MEETING OMNI RANCHO LAS PALMAS, RANCHO MIRAGE, CA

NOVEMBER 1, 2013

A G E N D A 1. Call to Order 2:00 p.m.

1.1 Pledge of Allegiance 1.2 Self-Introductions and Past President Acknowledgments 1.3 Order of Business

President Randy Douglas will provide a brief outline of the Order of Business. Please note the Consent Agenda (Agenda Section #6). Any items to be discussed should be brought to the attention of the President at any time prior to the Consent Agenda. Such items will be

moved to the New Business portion of the program. 2. Recess State Board Meeting 2:05 p.m. 3. Convene 2013 Annual Meeting 2:06 p.m. 3.1 AGC of America President’s Report – Paul Diederich

3.2 AGC of California President’s Report – Randy Douglas President Douglas will also provide a summary of the Executive Committee’s

actions taken at the meeting held the day prior. 3.3 AGC of America CEO’s Report – Steve Sandherr

3.4 AGC of California CEO’s Report – Tom Holsman 2013 Strategic Scorecard

4. Adjourn 2013 Annual Meeting 2:44 p.m. 5. Leadership Forum – Curt Weltz 2:45 p.m.

Sr. Vice President Curt Weltz will present a PowerPoint overview of the 2014 strategic plan goals. 2014 Strategic Scorecard 2014 Strategic and Operating Business Plan

6. Consent Agenda 2:55 p.m. The following items will be approved and/or accepted as written under one motion unless a request is brought forward to pull an item for discussion under New Business.

6.1 Approval of May Minutes 6.2 District Reports

Eureka & Shasta Delta-Sierra North Bay San Francisco Santa Clara Monterey Bay San Joaquin Tri-Counties Los Angeles

Orange County Riverside/San Bernardino

6.3 Standing State Committee/Council Reports Associates Council Legal Advisory Committee Open Shop Council Safety & Health Council Union Contractors Councils

6.4 Special Reports Specialty Contractors Council

7. New Business

7.1 Election of 2014 Officers – Bob Christenson 3:00 p.m. Nominating Committee Chair Bob Christenson will place into nomination those individuals who the Nominating Committee has identified for the 2014 slate of officers.

7.2 2014 Standing State Committees/Council Report – Curt Weltz 3:05 p.m. Sr. Vice President Curt Weltz entertain a motion to continue Standing State Committees/Councils for 2014.

7.3 Membership Report – Jon Ball 3:10 p.m. Vice President Jon Ball will review the 3Q membership report; and activities of the Membership Development Committee.

7.4 Financial Report – John Douglas 3:20 p.m. Treasurer John Douglas will report on 3Q Financials and budget projections.

7.5 AGC Education Foundation Report –Mike Mencarini 3:30 p.m. An update of current Education Foundation activities will be provided.

7.6 Government Relations 3:40 p.m. 7.6.1 2013 Legislative Review –John Nunan Legislative Committee Chair John Nunan will provide a summary of the

2013 Legislative Session and Program accomplishments and request approval for the 2014 Legislative program. 2013 Legislative Program Summary 2014 Legislative Program

7.6.2 PAC Update – Mark Thurman 3:55 p.m. PAC Committee Chair Mark Thurman will provide an update on PAC committee activities.

7.7 Division Reports 4:00 p.m. To include announcement of the 2014 Division leadership and directors.

7.7.1 Building Division – Erwin Villegas 7.7.2 Joint Engineering Division – Jaimie Angus

8. Announcements 4:10 p.m. 8.1 2014 Constructor Awards – Don Bradley Announcing entry form release for 2014 Awards (Constructor and Partnering)

8.2 Next Meeting Friday, January 24th, 2014 at the Westin St. Francis in San Francisco, CA.

9. Adjournment 4:15 p.m.

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October 21, 2013 Page 1

STRATEGIC SCORECARD 2013-2017

“It’s good business to do business with an AGC member”

1 – MEMBERSHIP GOAL: a membership that represents the diverse contractors in the state with the majority of the work in each geographical area. MEMBERSHIP STRATEGIES 2013-17 TARGET CURRENT PERFORMANCE 1. Member Retention

Membership Development Committee to establish goals and programs to maintain membership at existing levels in 2013. Further, in conjunction with the marketing program use perception management to promote member retention.

A. Each District to increase overall retention rate over 2012 percentages

B. Each district to use the marketing plan for perception management.

A. Ongoing- 2012 ending retention percentage was a combined rate of 83%. Overall retention rate YTD of 90% (loss of 24 members through 10-16-13) B. Ongoing – MDC held meeting on Dec. 17, 2012 with EC to develop marketing plan for perception management. Ideas from that meeting were cultivated and established with the intent of each district to implement moving forward.

2. Increase Membership Following MDC plan to achieve a net gain in membership numbers and add member diversity.

A. Net gain in membership YOY.

B. Increase diversity on district boards, committees and councils in conjunction with perception

A. Ongoing – 2012 Ending membership numbers of 476 Contractors Members, and 467 Associate Members for a combined total of 943 members. Goal for a net gain in 2013 would be 944 members. Current membership numbers at 919 members as of 10-16-13 (25

AGC MISSION

To be the recognized leader in providing business opportunities, education, training, resources, and advocacy for its members while advancing sound public policy for the construction industry. AGC TAGLINE

It’s good business to do business with an AGC member

STAFF MISSION

To provide outstanding customer service through communication, integrity, passion, and commitment to teamwork by creating an internal environment of respect and professionalism that will allow staff to thrive to their ultimate potential.

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management.

members short of goal). B. Completed – Held District elections in November. Each district and committees tasked with increasing diversity. AGC Districts Boards: Recruited 16 new district directors, which included 6 women who had not previously been on a district board. Standing State Committees/Councils: Diversified committees by recruiting 21 new members to be a part of the various committees and councils. Largest increase was the Associates Council which drew in 11 new council members.

3. Increase Member Involvement Develop strategies to promote involvement of all AGC members (recognizing our isolated demographics – CLC, AM and EM) in boards, committees and at Statewide Events.

A. Increase attendance at events by 10% year over year.

B. Promote diversity at leadership levels by introducing Board term limits (rotation) and outreach.

A. Ongoing: Participation increase or decrease from 2012 YTD Boards: EUR/SH : DS : 14% NB : -4% SF : -10% SC : 9% MB : 3% SJ : 99% TC : 80% LA : 33% OC/RSB : 51% Committees: Open Shop – Even UCC – Even Legislative : -10%

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Safety : 9% MDC - Even LAC : 19% Statewide Events: Installation: 25% National Convention: 28% Spring Meetings & Constructor Awards: Even B. Completed: Board Term limits as follows: 3 years for State Director, with a limit of one re-reelection. Divisions Directors have term limit of one year, with opportunity for re-election each year thereafter. 2013 SBOD saw 4 brand new directors (not reelected), while 2013 Divisions (Bld. And Jnt. Eng) had a combined total of 13 new directors (not reelected) including 2 women.

MEMBERSHIP TASKS/INITIATIVES TEAM MEMBER STATUS a. Membership Development Committee (MDC) to develop “on-boarding”

program for implementation at the district level; create district stewardship programs for personal outreach and perception management)

1. MDC to meet in September and by 10/31/12;deveop program for district adoption

2. Implementation by districts on 1/1/13

MDC , DJ, DM’s a. Completed. 1. Completed: MDC Staff Liaisons held meeting on August 23, 2012. Best Practices Manual developed and reviewed at MDC meeting on 10-25-12. It was unveiled at Fall Conference 2012 for review and approved by the SBOD for implementation. 2. Completed: Implementation complete. Each district adopted practices after approval by the SBOD in Oct. 2012.

b. Establish “Perception Management Programs” MTF, ST Completed: Expanded MTF to include various depts. such as CLC, Safety, Legal, CEF, etc. Perception

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Management established and reviewed between the MDC and Executive Committee on December 17, 2012. Completed President’s Message video focused on “Building Diversity in the Year Ahead”. Annual Report distributed Feb. 2013 focused on the next generation and AGC workforce development efforts.

c. Each district to replace at least one new board member annually to ensure a diverse population.

DJ,JH, DM Ongoing: 10 of 12 districts added additional or replaced at least one member on their boards. Districts still outstanding: Eureka and Shasta

d. Each district, standing state committee/ council and division to include one WDBE, SBE, DVBE member on their board.

EC, Principle Staff Ongoing: Bld, and Jnt Eng Division: Complete Districts: 3 out of 12 complete (SF, SJ, and LA) Standing State Committee/Councils: 6 of 10 complete (Assoc., LAC, LEG, Safety, UCC N & S)

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2 – MARKETING GOAL: to be seen as the “voice of the industry” by all stakeholder groups. MARKETING STRATEGIES 2013-17 TARGET CURRENT PERFORMANCE 1. Increase Membership Diversity

Create and establish a marketing strategy that embodies the more diverse AGC of the future.

Develop and implement a plan through the Marketing Task Force showcasing AGC’s Diversity.

Ongoing: MTF met on 8/29 to review and approve 2013 Strategic Marketing goals and utilize marketing channels that demonstrate the broad array of membership. Task Force meeting held in April and reviewed current progress of est. Marketing Plan ID strategies to increase member participation on AGC Connect.

2. Member Profiles Produce and utilize member profiles that demonstrate the broad array of members. These profiles will be displayed on AGC website and show benefits of AGC membership

Develop a marketing strategy that profiles a wide variety of members in leadership roles.

Ongoing: MTF established goal to create at minimum (4) specific member profiles and/or video promos. 1.). January/Feb – Ike Riser Safety Professional of the Year featured in Constructor Mag 2.)March/April – Landmark 49er Stadium by member firm Turner (will also feature in April’s What’s News) 3.) May/June – McCarthy Kaiser Oakland Project. 4.) Nov/Dec Constructor Mag features several women in construction from student to workforce, specific trade and long-time veterans in the industry. Completed 11 videos YTD on AGC Awards Programs(2), President’s Message, Feb SBOD speaker (Lapsley), Emerging Issues in Safety, Quality and Claims (Zurich), May SBOD speaker (Pace & Landes)

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3. Target Marketing Create and use marketing pieces that appeal to targeted firms from specific sectors of our membership and to potential members.

Targeted marketing pieces to members and non-members; based on specific needs, demographics, open shop, etc.

Ongoing: Continue expansion of prospect marketing channels to ensure the right individuals are reached. Goal of (12) e-marketing resources for distribution. January completed focused on Membership Doesn’t Cost, It Pays – highlighting 2012 accomplishments and reasons to join or renew membership. New web ads created for trade publications with increased click-through rates of those inquiring more information about AGC. Special advertising in ABQ alongside Caltrans profile piece on Mark Leja. AGC of California profile with ENR published in October 7, 2013 ENR California.

MARKETING TASKS/INITIATIVES TEAM MEMBER STATUS a. Marketing Task Force to establish marketing strategy aimed at

diversity: 1. Develop Criteria for task force composition - 9/15/12 2. Assemble Task Force - 10/15/12 3. Marketing Strategy to increase diversity - 5/1/13

ST & MTF 1. Completed. MTF met on 8/29 to ID additional task force members 2. Ongoing- Added Safety and CEF with addtl members to come. 3. Ongoing: Approved 2013 Communications & Marketing strategic goals and est. Marketing Plan to demonstrate broad array of membership.

b. Reconvene Marketing Task Force to establish a broad scope of membership profiles: 1. Revive and reconstitute Marketing Task Force – 9/1/12 2. First Meeting of the Task Force – 9/15/12 3. Initial Release of “Membership Profile” effort – Fall Conf. 2012

JN,ST, MTF 1 & 2. Completed. MTF reconvened on 8/29. 3. Ongoing. Member profiles ID. See above.

c. Reconvene Marketing Task Force to establish “Targeted Marketing” effort:

JN,ST, MTF 1 & 2. Completed. MTF met on 8/29 3. Ongoing. Continue with monthly

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1. Revive and reconstitute Marketing Task Force – 9/1/12 2. First Meeting of the Task Force – 9/15/12 3. Initial Release of “Targeted Marketing” effort – Fall Conf. 2012

targeted e-marketing to members and non-members: Membership Doesn’t Cost, It Pays, Make an Impact at AGC Legislative Day, Who We Are, and AGC Discount Programs, 16-for-12 promotion.

3 – ORGANIZATIONAL EFFECTIVENESS GOAL: a strong organization with adequately trained field representation engaging membership and staff to ensure successful service delivery.

ORGANIZATIONAL EFFECTIVENESS STRATEGIES 2013-17 TARGET CURRENT PERFORMANCE

1. Organizational Outreach – Region/Internal AGC Staff to evaluate efficiencies, providing clarity, transparency and value.

Implement quarterly evaluations to the Executive Committee evaluating current structure and consistent delivery of services

Ongoing: AGC CFT (Tom Holsman, John Hakel, Mike Navin and Dave Jones), hold monthly meeting to review and evaluate regional and internal efficiencies. Report given to the Executive Committee on Feb 7, 2013, and Strategic Planning (7-13) . Last meeting held between the CFT on 10-7-13

2. Construction Education Foundation Strengthen ties and alignment with the CEF to support the long-term growth of the association.

A. AGC and CEF to establish a solid conduit of communication and alignment through AGC Senior VP delegate.

B. Focus on developing a partnership and promoting leadership through the CLC to the boards and

A. Completed: CEF (Erin Volk) established contact with AGC Delegate (Sr. VP Curt Weltz) on October 5th. Mr. Weltz attended CEF meeting on October 26th, as first meeting as the AGC delegate. Curt attend CEF meeting in February, and attended the May meeting. Curt will once again be attending the CEF meeting at Fall Conf. while also introducing new delegates for 2014 (SR VP – Jon Ball and CLC representative Clint Myers) as per the 2014 Scorecard and Goals.

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divisions. B. Ongoing: At Fall Conference; 58 student chapter members participated in a meeting with the members of the Membership Dev Comm. where they learned more about the AGC brand, CLC and leadership opps. within in AGC. Students also participated in two CLC training sessions at conference. Post Conference a survey was administered to students to gather data on their exposure to CLC. AGC of America National Convention was attended by over 40 California students, who attended their various educational seminars and networked with members. 2013 Fall Conference to be attended by over 70 students from 7 colleges

3. Personalized Approach Establish a process for EC members to assist the district Managers in membership outreach

Create and implement a system to identify “at risk” members.

Ongoing: System in place to identify “at risk” members through billing tracking. Once members have been ID’ed as at risk, system to have help of AGC leadership in approaching member regarding membership and satisfaction of services. Serena Sueyoshi updated and sent list of “at risk members” to DM’s in June, 2013. System has resulted in a 5% increase in CM retention and 7% increase in AM retention over 2012 rates (as of 10-16-13).

4. On-boarding Implementation of methods for district outreach to new members.

Development of a “best Practices” model for the on-boarding of potential members.

Completed: Best Practice’s model developed by the MDC. Unveiled at Fall Conference and approved by the SBOD on October 26, 2012.

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ORGANIZATIONAL EFFECTIVENESS TASKS/INITIATIVES TEAM MEMBER STATUS a. Executive Committee shall attend district meetings and core service

committee/council meetings to communicate the strategic plan of AGC quarterly.

Executive Committee: Districts: a. JN - Red, Sh, Eur b. MM/JN - DS c. LW –SJ d. DD/CW– Bay

Area/NB e. JB –Monterey,

Santa Clara. f. RD, EV – Tri-

Counties. g. WL – Orange Cnty h. CJ – RSB Councils: a. AC – LAC b. BC – Assoc. C. c. DD – UCC d. JN – Safety &

Health e. CW – CLC f. CJ- Specialty &

Open Shop

a. JN - Red, Sh, Eur : (10-5-12), b. CM/JN – DS: (10-8-12, 3-13. 5-

13, 6-13, 9-13, 10-13) c. LW –SJ : (9-20-12), RD SJ (9-17-

13) d. DD/CW - Bay Area/NB: (9-12) e. JS – LA 8-13,9-13,10-13 f. RD and MK (8-13) g. JB –Monterey (3-13), RD –

Monterey (9-13) JB-Santa Clara : (9-13-12, 6-13, 9-13)

h. RD, EV – Tri-Counties: ( 9-5-12, and 5-8-13, 9-3-13, 10-2-13)

i. WL – Orange Cnty: (10-12,5-13), MK (10-13)

j. CJ – RSB :( 9-12, 3-13), JD – 9-13

Councils: a. LAC : (AC, 9-20-12), (MK, 6-3-13) b. BC, JS – Assoc. C. (10-25-12, 5-

13) c. UCC – DD: (5-2013, 6-2013) d. Safety & Health – (JN 9-2012),

(CW, 5-2013) e. CLC – (CW – 5-13) f. CJ- Specialty & Open Shop:

(10-12, 2-13) b. Alignment of the CEF and AGC

1. Initiate discussion between the CEF and EC prior to Fall Conf. 2012

2. Recommend AGC Senior VP as delegate to the CEF 3. Report on status at Fall Conf. 2012 4. Report by 1/1/13

EV, CW, EC 1. Completed: Curt Weltz (AGC Delegate) at CEF meeting on October 25, 2012 introduced as delegate. 2. Completed: SR VP Curt Weltz has been identified as AGC delegate. Will be introducing new AGC delegates at Fall Conference 2013 (Jon Ball and

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Clint Myers – per 2014 Scorecard) 3. Completed: During ED Foundation at SBOD meeting in Oct 2012, update giving on alignment and delegate. 4. Completed: Status update and report to be given by CEF at SBOD meeting on Nov 1, 2013.

c. DM’ s and Executive Committee Members to hold a meeting to discuss and formulate a plan for identifying “at risk” members by 1/1/13

DJ ,DM’s, EC Completed: EC and DM’s held conference call on 12/17/12. Agenda items included, identifying “at risk” members – ideas for retention, each districts use of the marketing plan for perception management, and how diversity will be handled for District Boards &Committees.

4 – SERVICES GOAL: provide value added services that benefit our members and the industry. SERVICE STRATEGIES 2013-17 TARGET CURRENT PERFORMANCE 1. Training

Leverage technology in an effort to continue growth of services and classes offered.

Increase participation by offering needed/mandatory courses driven by regulations and laws.

Ongoing: 22 Webinars offered with an attendance 154. Added two new on-demand training programs (MS Project 2010 Level 2 and P6 Level 2) with no increase in participation since June. In-House on Demand programs to begin production during 2013 Fall

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Conference. Moved from September due to cost of equipment.

2. Promote Core Services Develop strategy to identify member service needs annually

Implement Surveys to identify and create core services

Ongoing: Survey distributed in February 2013, after Installation to identify what meeting attendees wanted and needed in AGC statewide meeting programs. Membership Satisfaction Survey sent out to all members and closed on 4-10-13. AGC Leadership survey sent 4-11-13. Survey works to identify what services are most important to AGC members, their satisfaction with AGC services and their membership. This survey works to establish planning based on the things which are important to AGC membership. Associates Council sent out survey in August 2013 to all AGC Associate Members.

3. Collective Buying Power Strengthen collective bargaining power

Strengthen collective buying power (insurance products) Strengthen and

enhance existing affinity partners

Identify new affinity partner programs

Market affinity programs (new program areas include, finance and lending, Communication, Accounting, Supply,

1. All 2012 programs are extended into 2013. 2. Quarterly meeting with Zurich to review insurance program results and discuss ideas to improve Marketing and Communications. Potential new programs being reviewed: Contractors Plan – multi-employer Retirement Program , Modifications to Health Trust Program for member health insurance, and HR Services. Affinity Programs are featured in –bi-monthly (2x/month) What’s News as featured products and/or service

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Employee Benefits, hardware

4. Social Networking Utilize AGC members for problem solving and resources

Implementation of “AGC Connect” by 9/30/12. Measure utilization/increases annually (core services and districts to have respective forums)

AGC Connect “pre-launched” on October 2, 2012. Officially launched and unveiled to all members at Fall Conference 2012. Total Logins since inception:1276, Unique Logins: 162 (+86 Unique Logins YTD). Continue to push for member engagement and participation. Additional AGC Social Media Channels continue to gain following (Facebook, LinkedIn, Twitter, and YouTube).

SERVICE TASKS/INITIATIVES TEAM MEMBER STATUS

a. Provide leading edge technology and training in project delivery R&D what’s next Align with national (resources) Promote enabling legislation Influence regulations Build training curriculum

RF (assisted by DJ, EV)

R&D: Project Management Certificate Program to begin February 2014.

Align with national – Offering additional Executive Leadership Course at Fall Conference – Leadership Course In Progress

Will once again be offering the BIM EP and the STP Course Starting in 2014

Promote enabling legislation: Added new storm water training with PDU’s with regards to Continuing Education – Courses being offered in Oct & Nov Healthcare Reform Webinar – 72 People Attended

Added: Cap & Trade Seminar, Global

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Harmonization Seminar, Industrial Permit Seminar

b. Promote focus on core services Identify needs (via surveys) with environmental scans annually Compare AGC services with other providers Identify services from revenue streams Identify services geared for struggling and emerging contractors

ST, DJ, RF, et.al Ongoing Surveys completed –and analyzed by CFT and Leadership at Strategic Planning. Associates Council survey completed August 2013. Created side by side comparisons with competing Associations prior to February Board Meeting. Offered 2 Additional Foreman Advantage Trainings with an attendance of 46 to combat UCON’s Foreman Training class.

c. Strengthen collective buying power 1.Task Force to evaluate list of potential new Affinity Partners 2. Ongoing review by the EC

MN, See #3 above

d. Implementation of specific “AGC Connect” forums: 1. Establish “specific issues” forums for info exchange by categories 2. DM and Staff Management of the following forums:

UCC S&H Building Contractors Joint Engineering Contractors

JL, ST, DM’s 1. Completed: Launched AGC Connect in Oct, 2012 and developed various info exchange categories which including the following: UCC, S&H, Building, Jnt. Eng. 2. Ongoing. Added additional forums (i.e. Human Resources) based on member interests.

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1 – MEMBERSHIP GOAL: a membership that represents the diverse contractors in the state with the majority of the work in each geographical area. MEMBERSHIP STRATEGIES 2014-18 TARGET CURRENT PERFORMANCE 1. Member Retention & Growth

Membership Development Committee to establish goals and programs to achieve net gains in membership and an 85% retention rate.

A. Achieve overall retention rate of 85%

B. Net gain in membership YOY

2. Perception Management Program Establish strategy to manage perception through marketing, on-boarding, and mentoring

Identify & execute messaging strategy to leverage access by 12/31/13, Advocacy, & advancement message to begin by 3/1/14

3. Increase Member Diversity Develop strategies to promote diversity (recognizing our isolated demographics – CLC, DVBE, MBE, AM and EM) in boards and committees

Promote and increase diversity at leadership levels by rotation of board and committee members (to have 80% of board and committee participation)

4. New Member Integration Develop strategy to communicate and streamline an on-boarding and

New members to be fully integrated in

AGC MISSION

To be the recognized leader in providing business opportunities, education, training, resources, and advocacy for its members while advancing sound public policy for the construction industry. AGC TAGLINE

It’s good business to do business with an AGC member

STAFF MISSION

To provide outstanding customer service through communication, integrity, passion, and commitment to teamwork by creating an internal environment of respect and professionalism that will allow staff to thrive to their ultimate potential.

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mentorship plan. district boards, committees and councils through on-boarding and integration plan as per the MDC plan adopted in 2013. Measured by increased board and committee participation YOY

MEMBERSHIP TASKS/INITIATIVES TEAM MEMBER STATUS a. Member Retention and Growth

Each District to achieve overall retention rate of 85% Each District to achieve net gain in membership YOY

D.M’s, DBOD

b. Perception Management Programs Implement perception management communications plan and

streamline plan on-boarding and mentoring

MTF, ST .

c. Increase Member Diversity Each district, Council, State committee and division to include one

WDBE, SBE, DVBE, CLC member on their board.- 12/13

D.M’s , ALL

d. New Member Integration Establish On-Boarding and Mentorship Program – 1/14 Each district to replace at least one new board member annually to

promote new member integration – 12/13

CT, MDC,D.M’s, All

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2 – MARKETING GOAL: to be seen as the “voice of the industry” by all stakeholder groups. MARKETING STRATEGIES 2014-18 TARGET CURRENT PERFORMANCE 1. Diversity

Promote the unique diversity of AGC membership Develop a diversity/marketing “Dashboard” with metrics and diverse elements (rev, DBE, etc.)

2. Leadership Development Opportunities Promote unique leadership development opportunities that AGC provides (Internal & External)

Develop and Implement marketing plan for Leadership opportunities that includes member profiles and success stories

.

3. Target Marketing Market AGC to appeal to targeted firms from specific sectors of our membership.

Targeted marketing pieces to members based on specific needs, demographics, tenure, etc.

MARKETING TASKS/INITIATIVES TEAM MEMBER STATUS a. AGC Diversity

Assemble Task Force that reflects AGC Diversity (youth, $/revenue, etc) – 9/15/13

Develop marketing strategy that emphasizes diversity of current AGC Membership – 11/30/13

Develop DM Dashboard – 1/31/14

ST, Task Force Task Force ID and includes staff from key service departments, CLC and student chapter members: JN, RD, CW, KS, EV, JH, CM, CG and KB. Task Force met on 10/15/13 and reviewed 2014 marketing objectives and developed strategy for perception management.

b. Leadership Development Opportunities ST, Task Force Task Force ID and includes staff, from key service department, CLC and

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Assemble newly established TF - 9/15/13 Develop Leadership Development Marketing Plan – 11/30/13 Create Dash Board for Leadership Opportunities- 1/31/14 Coordinate with Ed.Foundation to identify leadership development

opportunities.

student chapter members: JN, RD, CW, KS, EV, JH, CM, CG and KB. Task Force met on 10/15/13 and reviewed 2014 marketing objectives and developed strategy for leadership development opportunities.

c. Targeted Marketing Assemble newly established TF – 9/15/13 Task Force develop targeting marketing approach for each

member segment – 1/31/14 Align with services task force data

ST, Task Force Task Force ID and includes staff, from key service departments, CLC and student chapter members: JN, RD, CW, KS, EV, JH, CM, CG and KB. Task Force met on 10/15/13 and reviewed 2014 marketing objectives and developed strategy for continued target marketing.

3 – ORGANIZATIONAL EFFECTIVENESS GOAL: a strong organization with adequately trained field representation engaging membership and staff to ensure successful service delivery.

ORGANIZATIONAL EFFECTIVENESS STRATEGIES 2014-18 TARGET CURRENT PERFORMANCE


a. Quarterly evaluations to the Executive Committee to evaluate efficiencies

b. Monitor and update succession plan

2. Construction Education Foundation Continue ties and alignment with the CEF to support the long-term growth of the association.

A. Continued conduit of communication and alignment through AGC Senior VP delegate and EC member (CLC)

1.SR VP Curt Weltz to attend CEF meeting at Fall Conf. 2013 and has invited Jon Ball (2014 SRVP) and Clint Myers (CLC) delegate to attend for an introduction as 2014 delegates

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B. Continued focus on partnership and promoting leadership through the CLC to the boards and divisions.

3. Personalized Approach & On boarding EC members to assist the District Managers in membership and on boarding outreach

Increase in district membership numbers and retention rates

4. Leverage and Expand Technology & Communities Utilize and expand established platforms for problem solving and resources

a. Task Force to implement and establish progress (logins, participation, etc). b. Effective communication of association services and events. Consider identification and utilization of external consultant for guidance.

a. Ongoing: New task force - JD,NS , JL, ST, DM (tentative – RD, JS, JStump, LF). First meeting currently being scheduled for November.

ORGANIZATIONAL EFFECTIVENESS TASKS/INITIATIVES TEAM MEMBER STATUS a. Organizational Structure

Provide updates to the EC quarterly – beginning Install. 2014 Provide annual report to EC – Fall Conference 2014

TH, CFT

b. CEF Senior VP to contact DM’s to encourage CLC participation (district

events, boards, etc) – 9/15/2013 Senior VP to identify additional EC member to participate on CEF

Board Senior V.P. Erin Volk and EC Member to provide reports at

quarterly AGC Board and EC meetings.

Sr,VP, Erin Volk

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c. Executive Committee to attend district meetings on a semiannual basis to communicate the strategic plan of AGC.

Executive Committee: Districts: a. Red, Sh, Eur- JN, RD b. DS- JN, RD c. San Jouq. - SP d. Bay Area- CW e. NB- CW f. Monterey- JB g. Santa Clara-JB h. Tri-Counties- RD, EV i. LA – JS, MK j. Orange Cnty – MK,JA k. RSB - JD

a. b. JN (9-9-13, 10-14-13), CM (9-9-13), RD (10-14-13) c. RD (9-17-13), SP (9-17-13) d. e. f. RD (9-13) g.JB (9-13) h. EV (9-4-13, 10-2-13), RD (9-4-13) i. RD (7-13), MK (7-13),JS (9-13) j. MK (10-9-13) k.JD (9-6-13)

d. Communities Leverage and Expansion Establish Task Force to implement best practices and monitor

progress of AGC Connect – report to EC by Fall Conference 2013 Develop a system/process to measure and review progress and

effectiveness of communications – Report to EC by installation 2014

Measure weekly or semi-monthly communication benefits. – report to EC by Installation 2014

Review effectiveness of measures to increase and leverage technology – report to EC by Fall Conference 2014.

JL, ST, DM, Comm. TF Ongoing: New task force - JD,NS , JL, ST, DM (tentative – RD, JS, JStump, LF). First meeting currently being scheduled for November.

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4 – SERVICES GOAL: provide value added services that benefit our members and the industry. SERVICE STRATEGIES 2014-18 TARGET CURRENT PERFORMANCE 1. Training

Leverage technology in an effort to continue growth of services and classes offered.

Increase participation and revenue by offering needed/mandatory courses driven by regulations and laws.

2. Promote Core Services Develop strategy to identify member service needs annually

Develop and implement targeted interviews across member segments to identify core services

3. Collective Buying Power Strengthen collective buying power

Strengthen and enhance existing affinity partners while increasing VAR YOY

4. Social Networking Utilize AGC members for problem solving and resources

Increase participation of AGC Connect by determining what is needed to increase penetration.

Ongoing: New task force - JD,NS , JL, ST, DM (tentative – RD, JS, JStump, LF). First meeting currently being scheduled for November.

SERVICE TASKS/INITIATIVES TEAM MEMBER STATUS

a. Training Limit entire class cancellations to 5%, by evaluating timing,

frequency, demand, topic interest, delivery methods, i.e., classroom / webinar

Measurement of participation statistics for reporting to EC quarterly.

RF

b. Promote Core Services Establish Task Force to develop interview process for identifying

CFT, MDC

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core services Task Force identify member needs (via interviews) while

considering the following: Who to interview, Gen X and Y, Associates, who to conduct interview, questions (see survey questions) Interview Segment One – Spring Conf (5/14) Interview Segment Two – Strat. Planning (7/14) Interview Segment Three – (10/14) Report on findings by Fall Conf. (10/14)

c. Strengthen collective buying power Task Force to evaluate list of potential new Affinity Partners Identify two new affinity partners which have mass member

appeal – 12/14

MN, CFT

d. Social Networking Establish new Communities Taskforce ( 3d above) to discuss

opportunities to increase participation on AGC Connect – 10/13 Double number of 2013 logins on AGC Connect – 12/14 Continued presence on LinkedIn, Facebook, Twitter and YouTube

JL, ST, DM, Comm. Task Force

Ongoing: New task force - JD,NS , JL, ST, DM (tentative – RD, JS, JStump, LF). First meeting currently being scheduled for November.

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October 21, 2013 1

STRATEGIC PLAN AND OPERATING BUSINESS PLAN 2014 FISCAL YEAR

EXECUTIVE SUMMARY

During AGC of California’s Strategic Planning session conducted in July 2013 with the Executive Committee, it was determined that AGC of California should continue with a long-term strategic plan with goals to increase the Association’s membership base as well as non-dues revenue. The action items in the operating business plan are set out in some detail in order to provide clear annual goals and to effectively measure the Association’s direction and accomplishments. The purpose of the Strategic Plan and Operating Business Plan, which serves to support it, is to provide the Association with a long term rolling plan that will serve as the foundation for the daily operations and administration of the Association. The Plan also seeks to enhance and improve upon the delivery of core services and promote growth in the operating areas of the Association. AGC of California’s Operating Business Plan establishes goals to serve as the financial, service enhancements, and membership growth foundations for current and follow on years. The Operating Business Plan is revised annually and is considered a working tool by which the Association operates. In order to maintain a clear and consistent Operating Business Plan that recognizes the need to provide quality service to the membership, the Plan’s goals and accomplishments are reviewed quarterly by the Executive Committee and monthly by staff. During its annual strategic planning session, the Executive Committee reviewed historical financial and membership information as well as results from the membership surveys. The goals established during the planning session are reflected in the Strategic Plan and Operating Business Plan and provide the foundation for the follow on years of 2015 and 2016. The years of 2015 and 2016 are not as complete as the 2014 goals, since each year allows for the creation of additional goals, which in turn will be carried forward to the follow on years. For 2014 the focus will be in the areas of membership, and marketing. The principle areas and related goals of the 2014 Business Plan are the responsibilities of various individuals. The areas covered and individual assignments are as follows: Key Goals: Curt Weltz, President Workforce Development/Membership Services: Jon Ball, Sr. Vice President Membership: John Douglas, Vice President Financial Jaimie Angus, Treasurer Mike Navin, Vice President, Administration/CFO Staffing: Tom Holsman, CEO These areas had substantial input from AGC staff in order to create a complete operating plan with clear assignments for goal attainment for the Plan. While the 2014 officers of the Association have responsibility for developing goals for their respective sections, it is AGC staff's primary responsibility to assist and coordinate the activities necessary to meet the goals within the identified timetables.

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Mission Statement

To be the recognized leader in providing business opportunities, education, training, resources, and advocacy for its members while advancing sound public policy for the construction industry.

(adopted 5/2011)

Staff Mission Statement

To provide outstanding customer service through communication, integrity, passion, and commitment to teamwork by creating an internal environment of respect and professionalism that will allow staff to

thrive to their ultimate potential. (adopted 10/2007)

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October 21, 2013 3

MAKING A DIFFERENCE

The History of AGC of California The Associated General Contractors have been in California since 1920, with AGC of California (AGCC) formed in 1969 by merging three AGC Chapters. AGC of California’s geographical boundaries covers the entire state of California, except San Diego County, which has a separate chapter. AGCC is a full-service trade association with more than 500 general and specialty contractor member firms and more than 500 firms engaged in construction related fields. AGCC is the second largest chapter in AGC of America. Our members represent the full spectrum of the construction industry, from some of the state’s smallest business enterprises to some of the nation’s largest construction companies. AGC members build the state’s highways and bridges, office buildings, hotels, shopping centers, energy plants, refineries and manufacturing facilities. Our members build schools, hospitals, retirement homes, health care facilities, universities, airports; water works facilities, waste treatment facilities, dams, water conservation projects and defense facilities. AGC represents and serves the needs of all types of construction contractors through three occupational divisions: Building, Highway & Heavy Engineering, and Municipal Utilities & Marine Contractors. AGC of California’s leadership includes five Officers, each holding their respective office for one year and then moving to the next highest office; an Executive Committee with representation from all occupational divisions; and the State Board of Directors. Each of AGCC’s thirteen geographical districts is represented by a District Board of Directors and served by volunteer members that focus on industry issues and opportunities. Along with the District Boards of Directors, the twelve Standing State Committees recommend policies to the State Board of Directors. The AGC of California provides representation to its members at the national level. The Chapter is part of a national network of 96 chapters. AGC of America has over 31,000 members including 7,500 of America’s leading general contracting companies and over 13,000 specialty-contracting firms. With support from AGC of America, the Chapter provides its members with the widest possible array of quality services. AGC of California is a 501(c)6 non-profit trade association providing a full range of services to member firms. After conducting more than six membership surveys, members have consistently ranked the three top valued services as government relations, safety and regulatory and labor relations representation. AGCC considers these services to be its core services. Membership services are offered in such areas as:

Government Relations Local Agency Liaison Safety Services Market Promotion Labor Relations Representation Standardized Contract Forms and Publications Education and Training Legislative Advocacy

Open shop services Legal bulletins/documents and advice AGC leads the industry in contractor advocacy and is committed to preserving its members markets.

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STRATEGIC PLAN GOALS Section 1

The goals provided for in this section are considered the Association’s long-term goals and are supported by the Operating Business Plan. The purpose of these goals is to provide a foundation on which AGCC can expand its core membership services. The follow on sections provide the implementation goals, which serves as the foundation for the Association’s day-to-day operations and administration. MEMBERSHIP

1. Member Retention & Growth Membership Development Committee to establish goals and programs to achieve net gains in membership and an 85% retention rate.

2. Perception Management Program

Establish strategy to manage perception through marketing, on-boarding, and mentoring.

3. Increase Member Diversity Develop strategies to promote diversity (recognizing our isolated demographics – CLC, DVBE, MBE, AM and EM) in boards and committees.

4. New Member Integration

Develop strategy to communicate and streamline an on-boarding and mentorship plan.

MARKETING

1. Diversity Promote the unique diversity of AGC membership.

2. Leadership Development Opportunities Promote unique leadership development opportunities that AGC provides (Internal & External).

3. Target Marketing Market AGC to appeal to targeted firms from specific sectors of our membership.

ORGANIZATIONAL EFFECTIVENESS


2. Construction Education Foundation Continue ties and alignment with the CEF to support the long-term growth of the association.

3. Personalized Approach & On boarding EC members to assist the District Managers in membership and on boarding outreach.

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4. Leverage and Expand Technology Utilize and expand established platforms for problem solving and resources.

SERVICES

1. Training Leverage technology in an effort to continue growth of services and classes offered.

2. Promote Core Services Develop strategy to identify member service needs annually.

3. Collective Buying Power

Strengthen collective buying power.

4. Social Networking Utilize AGC members for problem solving and resources.

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OPERATING BUSINESS PLAN GOALS Section 2 Curt Weltz, Key Goals as 2014 President

The purpose of this portion of the Plan is to create a five-year rolling business plan that serves as the foundation for the Association’s day-to-day operations, annual goals, and administration. This section of the plan provides for the major goals for the current year and the following year. Key Goals for 2014:

1. Increase membership by a net gain over 2013 membership standings

2. Each District to increase overall retention rate over 2013 percentages

3. A member of the Executive Committee will visit each district board to provide strategic and operating business plan updates on a twice yearly basis.

4. Establish and implement strategies to profile and highlight a more diverse AGC

5. Strengthen alignment across CEF and AGC focused on the development and promotion of the CLC

6. Strengthen collective buying power by enhancing, adding and marketing affinity partners which in turn will promote member retention and increase Value Added Revenue.

2015:

1. Increase membership by a net gain over 2014 membership standings.

2. Increase percentage year over year of contractor members participating in the CLC

7. Establish and implement strategies to profile and highlight a more diverse AGC

3. Strengthen collective buying power by enhancing, adding and marketing affinity partners

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SERVICES Section 3 Jon Ball, Key Goals as 2014 Sr. Vice President

The following are key Member Services Goals for 2014:

1. Increase participation of AGC Connect by determining what is needed to increase penetration.

Utilize AGC members for problem solving and resources.

2. Develop and implement targeted interviews across member segments to identify core services

3. Continue expansion of training programs through aggressive marketing and promotion year over year. Increase participation and revenue by offering needed/mandatory courses driven by regulations and laws.

4. Increase attendance and VAR at district, regional and state events.

5. Continue to increase PAC contributions YOY. Educate members to understand the importance of

giving through AGC. Government Affairs and Legislative: John Hakel & Dave Ackerman

1. Public Work/Private Work Subsidy Resolution Legislation will be introduced co-sponsored with the Construction Employers Association to require that developers stipulate in an RFP whether or not a public subsidy has been taken that would trigger a prevailing wage requirement. The proposal would also provide that a developer would be liable for unpaid wages, costs and attorney’s fees if they fail to stipulate in an RFP that a project was subject to prevailing wages, or if a project is later determined to be subject to prevailing wages.

2. DIR – Cash vs. Bond on Wage Violations

AGC will introduce legislation to clarify existing statute to allow the Department of Industrial Relations to accept posting of a bond by the contractor in lieu of a cash deposit when undertaking a prevailing wage administrative hearing.

3. Infrastructure Funding

AGC will continue its effort to encourage the Governor and Legislature to focus on rebuilding California's aging public infrastructure by seeking long-term financial commitments.

Transportation Funding

AGC will partner with Transportation California to achieve a long-term solution the financing of California’s transportation infrastructure which will include of support of legislation and a constitutional amendment to establish a new motor vehicle license user fee as a dedicated revenue source for highway and transit construction

Local Agency Design Build – SB 785 (Wolk) AGC is partnering with the Design-Build Institute of America and sponsoring SB 785 to standardize the various different design-build statutes enacted in California over the last 20 years. SB 785 has passed all Senate Committees and is ready for a vote by

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October 21, 2013 8

the full Senate in January. The interim months are being used to allow all interested parties time to review the proposed bill language and suggest changes or modifications.

Governor’s Bay Delta Water Transfer Plan AGC will monitor negotiations concerning reworking the water bond that is now scheduled to appear on the 2014 statewide ballot to be able to be in a position to support the revised bond proposal. Included in these discussions is the Governor’s proposal to construct a $25 billion “twin tunnel” water conveyance project in the Sacramento Delta to move water from Northern California to Southern California. AGC will be in support of the project.

High Speed Rail AGC has supported the construction of the California High Speed Rail Project and will continue to monitor and support funding for construction through the annual budget process.

2014 K-12 School Bond Ballot Measure AGC is participating in meetings to encourage support for a 2014 K-12 school construction bond to be placed on the 2014 statewide ballot.

4. Implementation of SB 863: Workers’ Compensation Reform The Administration has been grinding through the regulatory process this year to implement the legislative changes enacted for workers’ compensation reform that took place in 2012. AGC supported SB 863 and is opposed to any efforts to undermine its’ provisions.

5. Type I Indemnity: SB 474 (Evans)

SB 474 (Evans) eliminated the use of Type I Indemnity Agreements between general contractors and their subcontractors effective January, 2013. AGC believes the bill contained several fundamental drafting errors that should have been corrected. AGC legal counsel from both Chapters will draft proposed modifications to the statute enacted by SB 474 and discuss the proposed changes with the subcontractor community to arrive at consensus for possible legislation in 2015.

6. Highway Work-Zone Safety – AB 444 (Lowenthal)

AGC is sponsoring AB 444 to address the issue of increasing incidents of highway worker injuries and fatalities. The Assembly Transportation Committee will be holding an “informational” hearing and have AGC highway contractors testify in early January to focus on highway work-zone safety and what legislative solutions may be appropriate. AB 444 will then be amended to reflect those solutions.

7. Storm Water Issues

AGC is working with the Construction Industry Coalition on Water Quality (CICWQ) and will 1) develop language regarding federal / state water quality enforcement regulations, and 2) propose streamline state and local watershed compliance issues to create a statewide template.

8. Air Quality Issues

As a member of the Construction Industry Air Quality Committee (CIACQ), AGC will 1) prepare a study to document that the California Air Resources Board is over regulating off-road

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October 21, 2013 9

diesel fleets projections, and 2) draft a legislative concept regarding California’s diesel particulate filters; installations and DPF database.

9. CEQA Reform

As a member of the California Alliance for Jobs, AGC will continue to work with the Alliance on CEQA reform legislation in 2014.

10. Amounts Withheld in Dispute – AB 536 (Wagner)

This bill proposes to clarify existing provisions regarding amounts owed in a dispute for purposes of withholding payments. AGC has been working with the bill sponsor, the Engineering Contractors’ Association, on concerns both AGC and the Construction Employers’ Association have concerning the wording of the bill and potential unintended consequences. These issues will be resolved in 2014 so the legislation can move forward.

11. Gross Receipts Tax on Heavy Equipment Leasing – AB 1055 (Pan)

AGC successfully opposed legislation in 2012 that would have imposed a significant gross receipts tax on the leasing of heavy construction equipment. The American Rental Association and United Rentals again sponsored legislation this year to establish a gross receipts tax in lieu of the personal property tax; however, they took steps to make the legislation revenue neutral and impact neutral on the construction industry. AGC has been meeting with the sponsors to determine if amendments are needed to secure AGC support. A new bill will be introduced in 2014, rather than proceed with AB 1055.

12. Contractors’ License Board – SB 263 (Monning) SB 263 is sponsored by the Contractors State License Board and has been held over as a two-year bill. The bill specifies that a duly licensed contractor must have a Contractor’s license and must be in the correct category in order to be compensated for work completed. The bill also specifies that a contractor is not entitled to payment if they are not properly licensed at the time of contract execution. AGC is continuing to work on amendments with the CSLB to ensure that the language accomplishes the goal.

13. DVBE Participation Goals – SB 733 (Block)

SB 733 specifies that the statewide participation goal for disabled veteran business enterprises (DVBE) may be met through a business utilization plan partner which is certified by the Department of General Services. AGC is in support and is working with the DVBE Alliance to prepare amendments to ensure workability of the legislation.

14. Payment Bonds – SB 616 (Wright)

SB 616 would exempt the LA Unified School District from being required to require payment bonds on projects less that $1 million entered into with a small business or micro-business that participates in the District’s self insurance program. The bill was not set for hearing in 2013 but we understand it will be pursued in 2014 and AGC will engage in discussions with the LA Unified School District.

15. Unemployment Insurance Fund AGC will monitor proposals to resolve the deficit in the state Unemployment Insurance Fund. The Fund has been borrowing from the Federal Government for the last several years in order to pay for extended benefits during a long recessionary period and proposals are being developed to increase taxes on employers in order to make the Fund solvent.

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16. Proposition 65

AGC will work with the California Chamber of Commerce concerning reforms that will be considered concerning Proposition 65. Protection from private enforcement for small retailers with less than 25 employees and some litigation reforms will not be possible without statutory changes that remain under consideration.

17. Property Taxation: Change in Ownership/Split Roll

AGC will continue to oppose legislation that will allow for a split property tax roll to allow commercial property to be reassessed for tax purposes. It is expected that this legislation will be re-introduced again in 2014.

18. Political Grass Roots

AGC will continue to expand the AGC Legislative and Political Grassroots program and continue active involvement from AGC’s members and staff to establish "key contacts" between legislators and contractor members.

19. AGC Legislative Day

The annual AGC Legislative Day is again planned to take place in June, 2014.

20. Contractors State License Board Jamie Khan will continue her ongoing responsibility of handling legislation and “special projects” relating to the Contractors State License Board (CSLB).

21. 120 Club and AGC PAC.

AGC will continue to expand the involvement of the membership and increase participation in the 120 club and the AGC PAC over 2013.

Industrial Relations: Mark Reynosa & Bob Norling

1. Continue to maintain a low level of grievance (at or below 2013 levels) activity, with grievances being settled at or below the second step level measured quarterly.

2. Maintain the relationships established with the Crafts through personal contact and event

participation. Leverage these relationships to increase power of attorney for labor representation year over year.

3. Enhance Labor services by providing education programs at UCC meetings geared towards

improved understanding of labor agreements and/or labor laws effecting daily operations.

4. Negotiate, publish, and distribute new Master Labor Agreements with the Iron Workers that covers both Northern and Southern California, and Carpenters and Laborers in Northern California, at or below National average determined by the Construction Labor Research Council (CLRC final 4th quarter numbers).

5. Publish and distribute the 2014 Wage Scale Book by 8/15/2014.

6. In addition to strategic operations, establish a positive coordinated joint bargaining relationship with other associations for Southern California.

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7. Identify and secure VAR at $10,000 for department or supplemental in like amount in member

revenue.

8. Continue Independent IR services Power of Attorney membership plan geared to increase AGC man-hours and new member for Northern and Southern California.

9. Continue to educate District Managers on union agreements for their signatory members. This

will be accomplished by attendance at District Board meetings and one on one meeting with the managers.

Open Shop: Bill Hamilton

1. Conduct three (3) meetings of the Open Shop Council to provide information and education to the non-signatory members of AGC.

2. Enroll ten (10) new members into the AGC Apprenticeship Program (South).

3. Enlist 70% of the open shop members to sign up for the AGC of America Open Shop email news

report.

4. Publish and distribute four (4) newsletters during the year that promote tailored information needed by open shop contractors.

5. Participate in two (2) AGC San Diego apprenticeship functions during the year.

Safety & Health: Kate Smiley

1. Maintain or exceed overall retention rate of 85% of the Safety and Health Council.

2. Expand involvement with Risk Managers and encourage emphasis on WC issues. 3. Facilitate Safety and Health Council meetings – monthly. Continue to explore access and

efficiency solutions for increased member participation. 4. Identify two SHC members to advance to EC. Groom in preparation for 2014-2017 range. 5. SHC subcommittee to plot 2014 target activity of Federal and State trends. 6. Produce target articles to media profile: trade publications, Constructor, FaceBook. 7. Provide opportunities for Guest Columns from industry partners and regulatory staff. 8. Strengthen Mentor/Protégé`/Safety Intern program as adjunct to undergrad HSE programs and

Student Chapters and Education Foundation efforts 9. Monitor and Update Succession Plan by establishing staggered terms for SHC leadership. 10. Support CEF efforts via outreach in HSE undergrad programs and in student chapters.

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11. Support efforts to increase participation and revenue by offering mandatory courses driven by

regulations and laws. 12. Collaborate with RF to explore partnership with CSU-DH OSHA Training Institute or other

education forum.

13. Continued development of partnership with Zurich. 14. Develop BMP’s with member input. 15. Create opportunities for Chair and Vice Chair to increase industry participation and visibility by

facilitating speaking and author engagements. 16. Create Shared Value - Continue education efforts through the “Safety Minutes” series”. 2014

focus topic “Work Zone Safety” and another message tbd. 17. Develop Safety Podcasts and continue updates to Lending Library as resources allow. 18. Maintain and Identify Value Added Revenue opportunities. 19. Continue existing and create new Industry partnerships to provide excellent Shared Value

content. Engage potential premier partners as opportunity presents. Associates: Tony Morelli

1. Conduct three (3) meetings of the Associates Council to provide information and education to the associate membership of AGC.

2. Promote and select a candidate for the “Associate of the Year” award given out at the

Constructor Awards Banquet.

3. Have no less than 20 Associates attend council meeting.

4. Conduct an Associate’s “Outreach Survey” to all state-wide associate members, to determine their overall satisfaction and value justification regarding their AGC membership.

Specialty Contractors: Phil Varni

1. Conduct three (3) meetings of the Specialty Contractors Council to provide information and education to the AGC specialty contractor membership.

2. Promote the ‘Specialty Contractor of the Year’ award given out at the Constructor Awards

Banquet.

3. Identify and recommend at least one (1) specialty contractor member to participate on the AGC Legislative Committee.

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4. Increase participation in the Specialty Contractors Council by at least 10% (2 new net members) over previous participation levels.

5. Work towards an increase in participation of the younger employees of Specialty Contractors in

the Specialty Contractors Council to include one (1) new CLC participant.

6. Increase direct communications to Specialty Contractors for matters related to their concerns.

7. Promote participation of Specialty Contractors on the Membership Development Committee and Executive Committee.

Legal Advisory: John Hakel

1. Continue a legal/legislative task force to interface with the Legislative Committee. Make sure Chair is involved in choosing the LAC representatives from North and South, Calendar meetings

2. Publish and produce eight (8) Legal Briefs. 3. Continue to promote and market the use of AGC’s Legal Hotline. Create additional information

pieces tied into our 2013 Marketing Goals. Create a promotion piece for the AGC Legal Hotline to be marketed to members and for use in the Constructor magazine legal edition.

4. Increase participation at the annual Legal Retreat by 5% over 2013. Recruit younger lawyers to

attend- emphasize diversity. 5. Use accomplishments and efforts to promote branding of AGC and LAC. This goal may include:

More seminars at Spring and Fall Conferences with LAC involvement, MCLE credits or other credits available for attending.

6. Continue with value-added revenue from legal publications and forms. New AGC of California

contract documents - increase revenue. Produce an informational CD from the Retreat 2013 to sell in 2014.

7. Refocus on resources -Analyze Legislative Committee / LAC, restructure/modify if needed.

AGC Education Foundation: Erin Volk While a separate entity much of what the Foundation does is closely coordinated and promoted by AGC.

1. Increase new grant income YOY. 2. Increase new donations YOY.

3. 2013/2014: Net $50,000 from silent auction (10k) and raffle ticket sales (40k).

4. 2013/2014: Confirm 2 new endowment contributions.

5. Sponsor 2 CCA events – location TBD (rotate bi-annual).

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6. Hold a Construction Career Technical Education (CCTE) Summit that brings together industry

and career counselors/educators to promote construction careers.

7. 2014- Create an interactive web portal that profiles construction careers (professional and trades paths) to engage a wider student audience.

8. Hold 1 joint event with ACE Mentor in Bay Area with goal of raising $1,500 for partnership.

9. 2013: Indentify 1-2 organizations to pursue formalized strategic partnerships.

10. Create a prestigious scholarship award (potentially a large amount and/or with a competition) for dissemination at a special event.

11. Activate 2-3 new or inactive student chapters with a focus on community college.

12. Maintain student chapter participation in 2013 Fall Conference and 2014 Spring Conference (nine chapters attending).

13. Create tracking system for individual scholarship recipients.

14. Create survey to track student chapter participation satisfaction and internship/job placement at AGC Member companies.

15. Create tracking system for students and educators attending CCAD and CCTE events to measure insure in construction career awareness.

16. Create/package 4-5 “compelling stories” video/written testimonials from scholarship recipients/student chapter alumni to be posted on website.

17. Develop social media project plan for AGC CEF review and approval.

Occupational Divisions: John Hakel & Dave Jones Building Division

1. Attend (6) DBIA meetings highlighting Design Build, BIM, 2013 Legislation, etc. Report finding to the “What’s News” - Publish Quarterly.

2. Hold Additional Building Division Meeting using AGC Connect, 3rd qtr, 2014.

3. Create AGC informational portal for AGC of California Advocates. Building Division legislative “member” outreach.

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4. Work with Ryan Famularo on producing two BIM or LEED Certified Seminars.

5. Create a Sustainable Strategies Subcommittee, 2014. Joint Engineering Division

1. Assist in enhancing the partnering relationship with Caltrans and Industry through Joint AGC and Caltrans Liaison Committee.

2. Increase participation and attendance of AGC members at Joint Engineering Division events and

meetings by net gain from 2013.

3. Establish a partnering relationship California High Speed Rail.

4. Increase on-boarding & diversity on the Joint Engineering Board by 5% from 2013. 5. Publish (6) What’s News & (2) Constructor articles centering on the “Joint Engineering

Division” accomplishments/activities. 6. Maintain ongoing relationships with key agencies: Caltrans, TCC, CAJ, TRIP and HSR to

achieve access for problem solving. Communications & Marketing: Sophia Taft

1. California Constructor: Maintain a minimum of $17,000 ad sales per issue. Total of (6) issues per year.

2. Newsletters: Publish 24 What’s News, Quarterly Market Bulletins, and as needed Capitol

Updates and Alerts to membership.

3. Track and increase “open” (21%) and “click-through” rates (8%) for email communications YOY.

4. Establish marketing plan(s) focused on AGC diversity, leadership opportunities, and AGC core services by December 31, 2013. Develop marketing dashboards to measure campaign metrics by October 31, 2013.

5. Utilize marketing channels such as social media, video media, trade publications, AGC website,

etc. highlighting member profiles that demonstrate the broad array of membership. Create at minimum (4) specific member profiles, and a minimum of (4) videos for distribution.

6. Target market to non-members based on demographics, business specialty, industry demands,

hot button issues, etc. showing the value of AGC membership. Create at minimum (12) e-marketing resources for distribution.

7. Increase Social Media performance and participation YOY in the following channels: a. AGC Connect b. Facebook c. LinkedIn

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d. Twitter e. YouTube

8. Increase contacts by the Press YOY.

9. Produce AGC of California’s Annual Report by January 6, 2014.

Insurance & Pension Programs: Mike Navin

1. Publish 2014 Plan and Rate for Health Trust by 1/31/14 and 7/31/14 to coincide with the various carrier renewals.

2. Identify market expansion opportunities for G/L, Workers’ Comp and other insurance programs

in 2014.

3. Update plans to improve funding levels on Defined Benefit and Deferred Comp Pension programs.

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MEMBERSHIP Section 4 John Douglas, Key Goals as 2014 Vice President

The following are key membership recruitment and retention goals for 2014:

1. Promote and increase diversity of district boards, committee and councils in conjunction with perception management.

2. Each District to establish their own membership goal to achieve net gain in membership over

2013.

3. Each District to promote AGC events attended by public and private owners and owner related groups/organizations to provide business opportunities to AGC members.

4. New members to be fully integrated in district boards, committees and councils through on-

boarding and integration plan as per the MDC plan adopted in 2013. Measured by increased board and committee participation YOY.

5. Expand and increase the participation of the Construction Leadership Council (CLC) through

participation on Boards, Committee, Councils and AGC events with an emphasis on diversity.

6. Each District will outreach to owners and agencies such as CAC, DIR, DVBE, MBE etc. to promote AGC as the industry leader in all aspects of its mission.

7. Promote and increase diversity at leadership levels by rotating board and committee members 2014 Membership Base Rate: Phil Varni, Charmaine Tyrrell Serena Sueyoshi Contractors Associates Beginning Numbers (Jan 1, 2014) 476 467 Ending Numbers Contractor Members Retention Goal # Retained Actual Retention 1995 Net Percentage Retained 76% 443 1996 Goal Percentage to be Retained 85% 368 83% 1997 Goal Percentage to be Retained 85% 404 91% 1998 Goal Percentage to be Retained 86% 420 88% 1999 Goal Percentage to be Retained 86% 431 86% 2000 Goal Percentage to be Retained 87% 421 84% 2001 Goal Percentage to be Retained 87% 419 87% 2002 Goal Percentage to be Retained 87% 444 86% 2003 Goal Percentage to be Retained 87% 446 84% 2004 Goal Percentage to be Retained 87% 455 87% 2005 Goal Percentage to be Retained 87% 620 88% 2006 Goal Percentage to be Retained 87% 526 85% 2007 Goal Percentage to be Retained 87% 559 95% 2008 Goal Percentage to be Retained 87% 563 88% 2009 Goal Percentage to be Retained 87% 568 86%

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October 21, 2013 18

2010 Goal Percentage to be Retained 87% 524 82% 2011 Goal Percentage to be Retained 87% 474 85% 2012 Goal Percentage to be Retained 87% 433 82% 2013 Goal Percentage to be Retained 87% 419 88% (YTD) 2014 Goal Percentage to be Retained 87% Associate Members Retention Goal # Retained Actual Retention 1995 Net Percentage Retained 81% 587 1996 Goal Percentage to be Retained 85% 508 86.5% 1997 Goal Percentage to be Retained 90% 537 91% 1998 Goal Percentage to be Retained 90% 499 83% 1999 Goal Percentage to be Retained 90% 505 87% 2000 Goal Percentage to be Retained 90% 546 89% 2001 Goal Percentage to be Retained 90% 569 89%

2002 Goal Percentage to be Retained 90% 558 85% 2003 Goal Percentage to be Retained 90% 537 87% 2004 Goal Percentage to be Retained 90% 514 84% 2005 Goal Percentage to be Retained 90% 601 88% 2006 Goal Percentage to be Retained 90% 499 84% 2007 Goal Percentage to be Retained 90% 508 90% 2008 Goal Percentage to be Retained 89% 523 87%

2003 2009 Goal Percentage to be Retained 89% 500 84% 2010 Goal Percentage to be Retained 89% 454 81% 2011 Goal Percentage to be Retained 89% 429 83%

2012 Goal Percentage to be Retained 89% 409 84% 2013 Goal Percentage to be Retained 89% 425 91% (YTD) 2014 Goal Percentage to be Retained 89% The 2014 membership goal is to establish at net gain increase over 2013 membership numbers. Contractor Members New Membership 1995 Increase (actual) 59 64 actual 1996 Goal Increase 60 74 actual 1997 Goal Increase 65 70 actual 1998 Goal Increase 68 76 actual 1999 Goal Increase 71 72 actual 2000 Goal Increase 102 62 actual 2001 Goal Increase 87 92 actual 2002 Goal Increase 92 83 actual 2003 Goal Increase 88 78 actual 2004 Goal Increase 89 131 actual 2005 Goal Increase 101 106 actual 2006 Goal Increase 106 51 actual 2007 Goal Increase 83 83 actual 2008 Goal Increase 90 91 actual 2009 Goal Increase 96 70 actual 2010 Goal Increase 71 58 actual 2011 Goal Increase 59 55 actual

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October 21, 2013 19

2012 Goal Increase 56 43 actual 2013 Goal Increase 44 31 (YTD) 2014 Goal Increase Associate Members New Membership 1995 Increase (actual) 49 66 actual 1996 Goal Increase 53 79 actual 1997 Goal Increase 58 69 actual 1998 Goal Increase 61 87 actual 1999 Goal Increase 64 109 actual 2000 Goal Increase 114 94 actual 2001 Goal Increase 95 84 actual 2002 Goal Increase 99 59 actual 2003 Goal Increase 89 78 actual 2004 Goal Increase 87 76 actual 2005 Goal Increase 81 82 actual 2006 Goal Increase 83 52 actual 2007 Goal Increase 79 81 actual 2008 Goal Increase 90 74 actual 2009 Goal Increase 78 60 actual 2010 Goal Increase 61 52 actual 2011 Goal Increase 53 57 actual 2012 Goal Increase 58 58 actual 2013 Goal Increase 59 (42 YTD) 2014 Goal Increase

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October 21, 2013 20

FINANCIAL Section 5 Jaimie Angus, Key Goals as 2014 Treasurer Mike Navin, VP Administration/CFO

The following are key goals for the Financial Section, which are intended to increase the Association’s financial strength:

1. Increase VAR to 50% of total revenue by 2017. Reconvene VAR task force to strengthen collective buying power, and provide quarterly reports to the Executive Committee.

2. Develop quality education programs that target members’ needs throughout the state. Success measured by profitability, attendance and attendees satisfaction ratings.

3. Continue to monitor investment performance for general association assets and retirement plan

assets. Manage assets in order to achieve a positive return for 2014.

4. Review all event activity; goal is to achieve a 5% increase in revenue over expenses during 2014; with no event losing money.

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October 21, 2013 21

STAFFING Section 6 Tom Holsman, CEO

The following are the key goals for staffing for 2014 and include training programs to ensure that staff can provide member services support:

1. Continue staff professional development using internal staff training and cross training and formal outside training programs (i.e., MAP, colleges, subject specific classes/seminars) to strengthen staff capability to provide quality services.

2. Hold 20 staff meetings to ensure continuity in service delivery and support for goals of the

Strategic and Operating Business Plan

3. Strengthen hiring and management skills for HR programs to improve policy adherence and maintain staff morale. This will be accomplished using a combination of outside HR consultant and internal staff to insure polices adhere to new regulations and hiring is thru a team approach to achieve the best possible candidates. In addition, we will use side-by-side training by HR consultant for both hires and employee counseling the effectiveness will be less than 10% turnover in staff and the results of a staff survey.

4. Using results from spot member satisfaction surveys strengthen internal communications and

promote “team building “efforts to increase member satisfaction. Further use staff survey to identify areas for management to strengthen.

Narrative: In 2013, AGC continued to use an aggressive marketing program with new delivery and key staff input. A focused marketing plan and dedicated personnel used survey data from 2011 thru 21013 to help identify member and Staff and interests and needs. The 2014 plan will expand on the marketing goals and focus on external competition for members and aid staff to promote member satisfaction and membership sales. The marketing programs will require more staff training on sales and follow up techniques. This resource shift will be measured by member satisfaction surveys and increased member retention and growth. For formal training the Association uses the Management Action Training program, iMIS, as well as college and technical classes/seminars, National AGC Convention and midyear meetings to provide formal training. The Industrial Relations departments will continue to be a focus relative to member service /advocacy and new membership growth / member retention strategies for AGC. In particular a focus will be added on updating and implementing strategies to proactively address new market changes with competing trade groups and thereby increasing POA by 5% in 2014. Further, the Departments will use successful negotiations with the Unions as a spring board for target specific marketing.

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STATE BOARD OF DIRECTORS MEETING MINUTES THE PALACE HOTEL, SAN FRANCISCO, CA

MAY 3, 2013

State Board of Directors Present

Jaimie Angus Jon Ball George Bradshaw Jerome DiPadova John Douglas Randy Douglas Blaise Fettig

Dave Garese Carl Johnson Walt Johnson Skip Mancini Mike Mencarini Dan McGrew

John Nunan Steve Poindexter Nick Seals Cathy Skeen Erwin Villegas Curt Weltz

State Board Proxy: Carl Johnson for Gus Bruner Jaimie Angus for Clint Larison Dave Garese for Joe Morello Skip Mancini for Carl Sandstedt Dan McGrew for Jim Troup

Division Board of Directors Present

Bob Mahan Chip Sterndahl

Timothy Truax Phil George

Yvonne Marchand

Ex-Officio Directors Present

Carl Bauer Steve Blois Bob Christenson Blair Douglas

Chuck Fletcher Tom Foss Wayne Lindholm

Gade Mobley Aaron Silberman

Others Present

Dave Ackerman Ryan Aukerman Bill Davenport

Don Dolly Carol Eaton Robert Fried

Kevin Halter Marilyn Klinger Jamie Khan

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I T ’ S G O O D B U S I N E S S T O D O B U S I N E S S W I T H A N A G C M E M B E R

Dina Kimble Claire Koenig Julie Pace

Clark Peterson Charlie Pessa Matt Seals Mark Steiner Staff Present

Hue Ta Jim Wakefield Paul Wieckowski

John Cooper John Hakel Tom Holsman David Jones Joe Lish

Darla Macomber Rachel Morris Mike Navin Kate Smiley Mark Reynosa

Kevin Rowe Sophia Taft Charmaine Tyrrell Phil Varni Erin Volk

1. Call to Order: AGC of California held its second State Board of Directors meeting of the year on May 3, 2013 at the Palace Hotel in San Francisco, California. President Randy Douglas, Tierra Contracting, Inc., welcomed Past Presidents and guests and asked those in attendance to introduce themselves, identify their company and report on the last time they had asked anyone to be a member of AGC.

2. President’s Report: President Douglas gave a recap of the Executive Committee

meeting held the day prior. A preliminary agenda and schedule for July’s Strategic Planning Session was provided, and it was noted that a survey of the leadership and staff had been conducted to further develop agenda items and discussion focus. The Executive Committee accepted the 2012 Audit Committee Report and Audited Financials which were brought forward and approved by the State Board Directors. Additionally the Executive Committee discussed and approved for State Board approval to begin the process of refinancing the West Covina Office. Despite difficult financial obstacles due to the struggling economy, the committee was pleased to hear the auditor’s review of AGC’s clean books, and comparatively strong financial health. President Douglas reported that the Executive Committee reviewed the membership report, prompting the discussion that while there has been a dip in membership, proactive steps are being taken to address additional things that could be done to increase and retain membership. Membership will continue to be a main focus coming into Strategic Planning in July, and in the drafting of the 2014 goals. An update on the latest Strategic Scorecard accomplishments, and areas of concern were discussed, along with extensive discussion on the progress of on-boarding and diversity integrated into all Committees, Councils, and District Boards. A brief update on the Legislative Committee was given, noting that the Legislative Committee plans to hold its Legislative Day on June 4th, 2013 in Sacramento. The Executive Committee heard an update concerning the Marketing Task Force, noting the high quality and production of a lot of great material. While social media gains more and more participation, AGC Connect continues to have a slow start and the Executive Committee was encouraged and challenged to participate themselves. The addition or modification of a previous tagline for the CLC was discussed. This would work to promote the fact that the CLC is about younger members. Lastly the Executive

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Committee heard from Don Dolly regarding the Northern and Southern UCC. The North continues to deal with the early and incomplete settlements by UCON with the Operating Engineers and Cement Masons as well as UCON’s attempt to control Contract Administration revenue for Independents. IR North addressed pension and important items after incomplete settlements. The upcoming negations for the North include the Carpenters and Pile Drivers. Southern UCC has had 3 negotiating sessions with the So Cal Teamsters. There have been no significant developments or confirmed meetings set with the Operating Engineers. Upcoming negations for the South include the Cement Masons. State Board of Directors approved the President’s report as submitted. (m/s/c)

3. CEO’s Report: CEO Tom Holsman reviewed the Association’s financial health and

staffing, going through various PowerPoint slides which offered the State Directors a clear picture of where the association found itself financially at the end of 2012. Mr. Holsman presented a year over year comparison of revenue sources (which showed a significant drop in dues revenue since 2008) citing the obvious correlation of loss of membership to that dip in revenue. Directors were briefed on what made up value added revenue, which resulted in 27% of AGC‘s total revenue in 2012. While staff costs have remained relatively level since 2008, AGC has made significant cuts to the general expenses causing Mr. Holsman to praise the staff for their vigilance in keeping costs low. Tom reported that 2012 functional expense allocation saw 43% attributed to member services, with IR services, CIAG, and administrative expenses making up the majority of the rest of the expense allocation. The board was briefed on AGC staff changes, additions, and promotions. Mr. Holsman was happy to report that LA District has a new District Manager in Garret Francis who came to AGC with established connections and construction related experience in the Los Angeles area. Rachel Morris was promoted to Industrial Relations Coordinator/ Grievance Administrator in the North, Charmaine Tyrrell to San Joaquin District Manager. Dave Jones, VP Infrastructure & Field Service, is now splitting his time between Fresno and Sacramento, and has taken over the Joint Engineering division.

4. AGC of America: President Randy Douglas introduced Al Landes, Sr. Vice President of AGC of America. As National AGC’s incoming President for 2014, Al is tasked with developing a theme for his year as President. Mr. Landes divulged to the board that instead of a theme he would be posing a question, “Why AGC?” Al continued on in his address to answer that very question. National AGC is a support unit for all chapters across the nation. National works to advocate, guide, and reinforce the state chapters. Mr. Landes stated that when AGC was first founded, nearly 100 years ago, it was founded on the premise that it was to continue to establish a market for those in the construction industry. That premise still stands true, and the intent with which the Association was founded so many years ago is the same today as it was then. Al went on to question where the industry may see itself without the support of AGC advocates in Washington DC, and at a statewide and local presence. AGC provides a lot of defense for the Construction Industry. Al reported on legislative movements at the national level, including immigration reform, as well as on the trends in the industry, the importance of membership and expected changes to membership.

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5. Consent Agenda: The State Board of Directors approved the consent agenda with included the February meeting minutes: District Reports from Eureka, Shasta, Delta- Sierra, North Bay, San Francisco Bay Area, Santa Clara, San Joaquin, Tri-Counties, Los Angeles, Orange County, and Riverside/ San Bernardino; and Standing State Committee/ Council Reports from Associated, Legal Advisory Committee, Open Shop Council and Union Contractors Councils and Specialty Contractors Council. (m/s/c)

6. Guest Speaker: President Randy Douglas introduced Special Guest Speaker, Julie Pace, The Cavanagh Law Firm, P.A, who gave a sobering presentation on the Affordable Healthcare Act (Obamacare) and what it means for AGC members. Ms. Pace went in depth, presenting the overall “big picture” of what the looming plan entails. The major initiatives of the healthcare plan are to take effective in 2014. At that time Julie reported that individuals will be required to “enroll or pay”, meaning to carry coverage or pay penalties. Individuals will have access to basic health care coverage through: employer-sponsored group health plans, individual insurance policies offered through an exchange, individual insurance policies offered on private market or a government plan (Medicare, Medicaid, Veteran or CHIP). The state directors were informed that once effective, employers must “pay or play” (offer medical coverage to full-time employees or pay tax penalties). There will be however an array of federal subsidies for small businesses and lower income individuals. Ms. Pace went on to delve into specifics of the healthcare act, taking questions and offering the whole content of her presentation (of which could only briefly be touched on) to AGC of California’s website for members use.

7. New Business

7.1 Membership Report: Vice President Jon Ball, Hensel Phelps Construction Co., provided board members with an update on the current status of membership for the Association. The second quarter membership report reflected an overall loss of 42 members since the beginning of 2013. Current retention percentages were reported as follows: 94% Contractor Member Retention vs. 91% in 2012, and 91% Associate Member Retention vs. 92% in 2012.Vice President Ball reported that while there had been a dip in membership, proactive steps are being taken to increase and retain membership. Jon Ball took a moment to recognize an addition to AGC’s President Club, Steve Poindexter of American Paving Company. The membership report was approved by the State Board as submitted.(m/s/c)

7.2 Audited 2012 Financial Statement Review: Treasurer John Douglas, Granite Construction Co., reviewed the consolidated financial audit statements for 2012 noting a positive outcome. Mr. Douglas reported that he was encouraged by the auditor’s good report. In addition to having clean books, AGC of California’s financials, compared to other “like” associations, is in a great position with strong financial health. John reported that Dues Revenue was 6.1% below budget projections, Consolidated Gross Revenue (after intercompany adjustments) was down 8.9% from 2010 and Combined Current Ratio was at 1.7 versus 1.71 from 2010 (benchmarks 1.3 to 1.6 as median). The State Board of Directors approved the audited financials, as submitted. (m/s/c)

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7.3 Regulatory Report: John Hakel, Vice President Government Relations provided an environmental update to the Board on 2013 air quality and water issues. Mr. Hakel updated the board of various regulations and compliance issues; California Air Resources Board (CARB) Off- Road Regulation, CARB truck and bus regulations, incentive funding for engine replacements and equipment purchases to expire, as well as green house gas – requirements and compliance costs. AGC of California leads the construction industry in California on water quality regulatory matters, and is the voice for reasonable water quality permit engineering standards. John reported that AGC opposes the expanded federal and state definition of wetlands and continues to lead and work with its partners in Sacramento and throughout the state to prevent any change that will harm development and construction. In conclusion the board heard a brief update on AGC’s various training opportunities which include the development of a training program for contractors and their sub contractors working on large-scale high-profile public works projects, as well as monthly and semiannual SWPPP, and CESSWI courses. John Hakel introduced John Nunan to make a push for National AGC’s PAC Chapter Contest which promotes participation in National PAC and contributions to AGC’s effort to support the construction industries interests, as well as combat attacks against it.

7.4 Safety and Health Council Report: Safety and Health Council Chair Gade Mobley, Flatiron West, Inc., reported on some changes within the Council which were made primary to provide and establish continuity. Changes made in 2011 include his own term being two years with the support of two vice chairs (one North, one South). Mr. Mobley reported a shift in meeting focus from being purely Legislative and Regulatory to “Best Practices Meetings” in areas of fall protection and rescue, crime prevention, etc. This change was a product of a council vote to go in a new direction. Gade concluded by reporting on the formation of task forces to address Lead Standard, GHS (Globally Harmonized System, Roadway Worker Safety and 1533 Ventilation in Excavations.

7.5 Division Reports: The State Board of Directors approved both Division Reports as submitted. (m/s/c) 7.6.1 Joint Engineering: Division Chair Jaimie Angus, Griffith Company, highlighted the Joint Engineering Division meeting held the day prior that

included presentations from Jim Earp, Executive Director of the “California Alliance for Jobs & Will Kempton, Executive Director for “Transportation California” cap & trade, infrastructure bond, vehicle miles traveled tax/fee, voter threshold, and innovative procurement mechanisms. Steve Blois, past president of AGC of California and principal partner in “Valley Vista Consulting, Inc., reviewed the clean water act and Dave Ackerman provided a legislative update. The Construction Management students from California State University, Fresno, reviewed their winning performance in the “Heavy Civil” division at the Reno, Nevada construction competition in February of this year. Lastly the Division heard a report from Phil George of Philip E. George, P.E. who announced that the Task Group on the 2010 Caltrans Specification has been formed and the group added a subcommittee for training.

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7.6.2 Building Division: Division Chair Erwin Villegas, Frank Schipper Construction Co. reported on items from the Building Division meeting which featured an informative presentation from AGC Advocate Dave Ackerman who discussed numerous legislative bills. Niko Seavers and Ernie Lee, NPP / Verizon spoke about the latest in cutting edge technologies and how they can be applied to today’s jobsite. Lastly, the Division heard about works of improvement statutes from Marilyn Klinger, Sedgwick LLP and Art Woodward, Downey Brand LLP.

8. Announcements & Future Meetings: President Douglas thanked all those in attendance

and announced that the next State Board of Directors meeting will be held in conjunction with the Fall Conference, October 30- November 1, 2013, at the Rancho Las Palmas in Palm Springs, CA.

9. Adjournment: There being no further business, the meeting was adjourned at 4:34 p.m.

Respectfully submitted, Darla Macomber Darla Macomber Secretary to the State Board of Directors

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STATE BOARD OF DIRECTORS

DISTRICT, COMMITTEE & COUNCIL REPORTS

November 2013

STATE BOARD OF DIRECTORS


November 2013


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TABLE OF CONTENTS(CLICK ON A TITLE TO JUMP TO THE SELECTED PAGE / PRESS THE HOME KEY TO RETURN TO THE FIRST PAGE)

DISTRICT REPORTSEUREKA & SHASTA DISTRICTS ................................................................................................... 3

DELTA-SIERRA DISTRICT.............................................................................................................. 4NORTH BAY DISTRICT ......................................................................................................................... 6SAN FRANCISCO BAY AREA DISTRICT .................................................................................8SANTA CLARA DISTRICT...............................................................................................................11

MONTEREY BAY DISTRICT ........................................................................................................... 14SAN JOAQUIN DISTRICT................................................................................................................ 16TRI-COUNTIES DISTRICT.........................................................................................................18LOS ANGELES DISTRICT…………………………………………………………………………... 20

ORANGE COUNTY DISTRICT........................................................................................................ 22RIVERSIDE/SAN BERNARDINO DISTRICT .............................................................................24

STANDING STATE COMMITTEE / COUNCIL REPORTS

ASSOCIATES COUNCIL ................................................................................................................. 26LEGAL ADVISORY COMMMITEE ................................................................................................ 27OPEN SHOP COUNCIL ..........................................................................................................................29SAFETY & HEALTH COUNCIL ....................................................................................................... 30

UNION CONTRACTORS COUNCILS.............................................................................................35

SPECIAL REPORTSSPECIALTY CONTRACTORS COUNCIL..................................................................................38

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T H E V O I C E O F T H E C O N S T R U C T I O N I N D U S T R Y

Eureka-Shasta District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None District Activities:

▼ Shasta is working closely with local government - tracking jobs and building an alliance.

▼ The Shasta District is on track with its established calendar of events and board meetings.

▼ Both Districts continue working closely with CalTrans though the liaison meetings.

▼ Shasta District closely works with Chico State and Shasta College providing industry and financial assistance.

▼ Shasta is planning its first major mixer event - Crab Feed in the spring

Submitted By: Chris Handley, Tullis, Inc. 2013 Shasta District Chair

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Delta-Sierra District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None Membership Retention and Development Activities:

▼ The Delta-Sierra District has 39 Contractor Members and 81 Associate Members, for a total of 120 members.

▼ Delta-Sierra continues to focus on new member and retention activities, making recruitment of specialty members a priority

District Membership Activities:

▼ The Board of Directors meets ten times throughout the year, typically on the second Monday of the month at 4:00 PM in the AGC of California office in West Sacramento.

▼ The District continues to fight local hiring ordinances, Charter Cities, and battle all local level restriction that will impact Delta-Sierra district member’s ability to bid jobs on an even field. The district has gone so far as to join in a local PAC (Regional Builders) to fight such issues. This has proven to be fruitful with some big victories for our industry.

▼ The District played a huge roll in securing the new arena to be built by working closely

with DowntownArena.org.

▼ Several District members sit on the Sacramento Construction Management Educational Foundation, program at CSUS. The District has been very active in setting new goals for the foundation, and has made a strong commitment to assist the foundation on an aggressive fund raising schedule.

▼ Delta-Sierra has had great success in having mixers that include non-member and

public officials that support our industry. This past Spring Delta-Sierra had over 100 in attendance at its annual Swabbies mixer.

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Government and Community Relations Activities:

▼ The District maintains close relations with several cities, counties, and Caltrans Districts 3 & 10. Throughout the year, members of the District have volunteered to speak before the Sacramento City Council, and the County Board of Supervisors.

▼ The District works closely with local officials to assure that the industry needs are heard and understood. This proven partnership has worked out well for parties on both sides.

Workforce Development Activities:

▼ Delta-Sierra in its effort to recognize the importance of high school industrial arts programs, has continued to fund and support local high schools and colleges in this area. The District has also continued its close alliance with AGC Education Foundation.

Submitted By: David Garese, Excel Bonds and Insurance

2013 Delta-Sierra District Chair

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North Bay District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None. Membership Retention and Development Activities:

▼ The AGC North Bay District ended the period with 22 members (12 contractors and 10 associate members). With a 100% retention for Contractors and an 89% retention for associates. North Bay has a combined retention of 95.2%.

▼ The North Bay District has established a goal of net gain in membership for 2013. ▼ The District Board is working with board members to identify new prospects for

membership in 2013. ▼ The North Bay District has developed a membership recruitment list with our current

board members of the North Bay district of AGC to help identify prospects.


▼ The 2013 North Bay Golf day, held on April 29th was the marquee event for the district. It was marketed to other associations outside of the normal AGC channels as a way to attract more non-members and potential prospects. This year’s tournament attracted 104 golfers and raised money that will be put towards local and state scholarships for students in construction industry programs.

▼ The North Bay District manager meets with local legislators and industry experts to build relationships within the district.


▼ AGC has been involved with the group Sonoma Business consortium that’s main focus is the issues that affect the North Bay area. The group consists of leaders from around the North Bay community who share information and knowledge of the issues that affect

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the North Bay and the business community. Many of these members are leaders in the community and some are former mayors and supervisors in the North Bay.

▼ The North Bay Board and the AGC PAC have donated money to several of the

supervisors campaigns in the North Bay. It has also made contributions to the Education Foundation for their scholarship programs in the North Bay district. This year we will contribute money towards scholarships for students in the local district as well as the state that are pursuing a career in construction.


▼ The AGC North Bay district has helped with local career days in the North Bay Area. Students who attended exposed themselves to the outstanding career opportunities that are available in the construction industry.

Upcoming District Meetings/Events:

▼ The North Bay District held a meeting on October 8th, 2013 at the Baucus Restaurant in Rohnert Park.

Submitted by: Kevin Rowe on behalf of: George Bradshaw, Underground Construction Company 2013 North Bay District Chairman

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San Francisco Bay Area Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:


▼ The San Francisco Bay Area District has established a goal of net gain in membership for 2013.

▼ The District Board is working with board members to identify new prospects for

membership in 2013.

▼ The San Francisco district has a total of 204 members (76 contractors and 128 associates) with 97% retention on Contractors and 93% retention on Associate members. We have combine retention of 94.5%.


▼ The San Francisco Bay Area District held its third annual A’s event in Oakland in

September with a total of 100 participants. This event was between the A’s and Texas Rangers and was a great game.

▼ The Bay Area Region District held its Public Works event on September 18th in

Livermore. The event had an estimated 90 plus in attendance. The event featured 5 speakers from High Speed Rail, BART, Ken Simonsen from AGC of America, Brian Kelly the Secretary of Transportation and Jim Earp from California Alliance for Jobs as well as 15 vendor tables stationed around the room to talk about upcoming projects for the contractors.


▼ The AGC-Caltrans Liaison Committee has 6 meetings a year in Richmond to discuss issues that have an effect on Caltrans projects in California. Cal Trans will give us an overview of upcoming projects going out to bid. Caltrans will discuss many of the

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projects being done in District 4. The committee co-chairs are Bob Finney with Caltrans District 4 and Christine Williams with CC Myers..

▼ The SF Liaison Committee members have been meetings with city supervisors and city

staff to give input and suggestions into the best way to work with contractors. San Francisco has many issues that contractors have concerns about and the group has had a hard time setting up meetings due to a change in the city staff. We have had several meetings to discuss the issues that contractors are having with some departments in the city.

▼ The AGC-BART Liaison Committee has met quarterly in Oakland. They have discussed Many project currently with BART including the Oakland airport connector, EBART and

VTA/BART to San Jose. BART is continuing to put out projects to expand and improve the system.

▼ The AGC-Port of Oakland Liaison Committee will meet quarterly this year in Oakland.

We continue to have meetings on a quarterly basis to continue the relationship with the port. The Port will have a few projects this year and next. We continue to get the latest information available.


▼ The San Francisco Bay Area District coordinates with other neighboring Bay Area districts in the delivery of training classes for AGC members. Classes included fall protection, OSHA and excavation safety. In 2013 we have been teaming up with our member companies to help training with training smaller contractors in AGC entering the public works arena.

▼ The Board has continued its support for the Cypress Mandela Pre-Apprenticeship

Program in Oakland. AGC has continued to support Cypress Mandela. In an effort to learn where all the money donated from the district is going, the members are invited to observe the program anytime.

Upcoming District Meetings/Events: ▼ The next SF board meeting is scheduled for November 4th 2013 at the Buttercup

Restaurant in Oakland. .

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Submitted by: Kevin Rowe on behalf of: Aaron Silberman, Rogers Joseph Odonnell. 2013 San Francisco Chair

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Santa Clara District Report to State Board of Directors

Date: November 1, 2013 Period Ending: September 30, 2013

Issues or Motions for the State Board of Directors: ▼ None

Membership Retention and Development Activities:

▼ The Santa Clara District Board continues to view new member growth as well as existing member participation in activities and retention as the keys to continued success for the

district and will continue to maintain relationships with existing and prospective members by individual Board contact, and personal staff contact with each Contractor and Associate Member. This board has added a CLC component and looks forward to its growth as a district group. Board Members are committed to work towards efforts in recruiting a minimum of one new member annually. Additional measures of success are the continued community service work with Via Services and the relationships with AGC Student Chapters at San Jose State University, Santa Clara University and Stanford University. These student relationships have proved to be very valuable to members and the students.

▼ The Santa Clara District Board views non-aligned signatory and non signatory

contractors as the greatest market for membership growth, as well as, individual member’s subcontractor and vendor lists.


▼ The Santa Clara District just held its Annual 4th Annual Sporting Clays & BBQ event in conjunction with the Monterey Bay District on September 20th at Coyote Valley Sporting Clays in Morgan Hill, CA where more than 150 shooters gathered for a another great time! The Annual Holiday Dinner and Bocce Tournament will once again finish our year in December.

▼ The district continues to maintain dialogue with several agencies within the City of San

Jose for the following:

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▼ Currently staff member Varni continues to maintain dialogue with City of San Jose Public Works Director Dave Sykes to monitor activities within the contracting community. At present there are no outstanding matters with this or other agencies

▼ The District will continue to either maintain dialogue or liaison relationships with the

Santa Clara Valley Transportation Authority, San Jose Department of Public Works, The San Jose Planning and Building Department, San Jose Redevelopment Agency as well as Santa Clara Valley Water District. At present dialogue is maintained but with little to no capital budget there is no need for an ongoing Liaison Committee. We are hopeful that with the newly awarded BART line to San Jose by AGC members we can establish a liaison with VTA for this project and future projects.

▼ The Santa Clara District membership continues to participate with Via West (formerly

Camp Costanoan), in rebuilding several elements of the disabled children’s camp this past year. Currently the group is working to rehabilitate the main lodge and dining area for the facility. More projects are in the works for 2013 and beyond!


▼ The Santa Clara District continues to look for ways to assist local high school shop and

ROP programs with these efforts to educate youth about construction tasks and opportunities for career development. Most recently the district granted the San Jose Conservation Corps., funds to assist their program.

▼ The district continues working with the three student chapter programs (SJSU, SCU and

Stanford) to grow their already successful Student Chapter programs. This effort has brought opportunities for hiring for many of our board member firms to add high caliber recruits from the local area. All 3 chapters continue to engage the Santa Clara district and the group will work together to co-brand with these students to show them what AGCC and our members can do to both assist in their academic endeavors as well as offer employment opportunities either post graduation or as interns during school breaks.

. Upcoming District Meetings/Events:

▼ The Santa Clara district board meets monthly with the exception of June, July and

December. Additional member network events are being discussed and considered with this group.

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Succession Plan

▼ The Santa Clara district succession plan has is continuing in 2013 where returning Chair, Seth Boles (Hensel Phelps) and Vice Chair, Larry Lenz (Blach Construction) settle into their respective roles as we add a 2nd Vice Chair from Granite Construction, Steve Kaesler. Each of these positions may run two (2) concurrent one (1) year terms if applicable. This succession plans allows for active participation through 2017.

Submitted By: Phil Varni on behalf of: Seth Boles, Hensel Phelps Construction Co.

2013 Santa Clara District Chair

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Monterey Bay District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:


▼ The Monterey Bay District Board continues to view existing member retention and participation at events & activities as the keys to continued success for the district and will continue to maintain relationships with existing members by a combination of individual Board contact, and staff contact with each Contractor Member and Associate Member. In addition each Board Member will work towards recruiting new members as much as they can. There are many members in this group enthusiastically committed to this membership effort. Our 2013 returning chair and vice chair will continue to promote these goals.

▼ The Monterey Bay District Board views both aligned and non-aligned signatory and open

shop contractors as the greatest market for membership growth, as well as individual member’s subcontractor and vendor list. There is a renewed effort to reach out to prospective members through membership related events and activities.


▼ The Annual Golf Tournament took place on June 7th with more than 70 golfers in attendance at Laguna Seca Golf Club. The 4th Annual Sporting Clays & BBQ was held on September 20th at Coyote Valley Sporting Clays in Morgan Hill, CA as a joint event combined with the Santa Clara District and once again grew with 150 shooters participating and new “fun” events added to round out the day. The Monterey Bay Board of Directors has decided to hold a joint end of year holiday event with the Central Coast Builders (formerly Salinas Valley Builders Exchange) on November 21st at Bocce’s Cellar in Santa Cruz.

▼ This group continues their involvement with public agencies for liaison work on behalf of

our membership as needed. District membership is still involved in developing and teaching the new curriculum at a renewed Construction Academy at Hartnell Community

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College and has exciting dialogue with the Engineering department at Cabrillo Community College.


▼ Continued work with local High Schools & Vocation Schools to establish a workforce

development strategy to fill future jobs within the construction industry. Promote internships by District Members. This effort is being expanded this year to reach out to the greater Santa Cruz and Monterey areas.

▼ Succession Plan. The Monterey Bay District’s 2013 Succession Plan: Chair, Karl Philipovitch (Graniterock/Paves) Vice Chair, Sam Phillips (Ausonio, Inc.) and newly elected 2nd Vice Chair, Brian Atchley (Bogard Construction). Each of these positions may run two (2) concurrent one (1) year terms if applicable. This succession plan allows for active participation through 2017.

▼ AGC/Caltrans Liaison. The Monterey Bay District has held two liaison meetings this

year with Caltrans District 5. One 2013 meeting took place and spring and another to take place in Fall. Both provide a great forum for dialogue with local Caltrans personnel.


▼ Work Force Development Committee: Monterey Bay District members continue to participate on a Presidential Task Force to maintain dialogue with the executive staff of Hartnell College to establish a curriculum that will benefit industry today and into the future to ensure that they are providing a graduating student that will fit into the needs of the construction industry. This will consist of separate subcommittees, which will review the current academic curriculum and make any necessary recommendations. In addition the board will help Hartnell through this Presidential Task Force identify various funding sources to bridge the gap it currently has in its financial budget to deliver the academic program much needed by industry. Additional efforts are being made with regional high schools to help inform students about opportunities traditionally available in the Construction Industry.


▼ Upcoming events for the Monterey Bay District include the Holiday Dinner

Submitted By: Phil Varni on behalf of: Karl Philipovitch, Monterey Bay District Chair, Graniterock/Pavex

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San Joaquin Report To State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for State Board of Directors: ▼ None Membership Development Activities:

Board of Directors. The San Joaquin district Board of Directors reviews the district prospect list monthly. Currently San Joaquin District has a total of 53 members with a combined retention rate of 92.2%.

Work Force Development Committee

Colleges and Universities: ACCE requirements have been met for the CM Program at CSU Fresno to maintain its current status. Dr. Manoochehr Zoghi, CM Program Director has brought in an independent evaluator to help prepare for the audit. Several AGC Members sit on the CSUF CM Advisory Committee. They include: Josh Wilkinson (Lyles Mechanical), Todd Sheller (Lyles Diversified), Doug Scheidt (VanGuard Construction Services) & Charmaine Tyrrell (AGC of California). Professional Development: District members have held their third meeting with the AGC/Caltrans San Joaquin District Liaison Committee for 2013 & three meetings with the AGC/City of Fresno Liaison committee. Four meeting are scheduled for 2014. Some of the training that will be provided includes: Scheduling, Partnering Training & Caltrans QC/QA Training. The District’s ‘2014 Construction Forecast’ will be held on November 14, 2014 and the Christmas Luncheon is scheduled to be held December 10 at Richards in Fresno. Career Day Participation: The 1st annual Central Valley Career Day was held on September 26, 2013. The event was held at the Fresno Convention Center with 1,900 students and parents attending. AGC member vendors consisted of Granite Construction, Gary KRC Safety, Inc., Teichert Construction, Pape’ Machinery, Lyles Construction and American Paving. Anthony Ayerza with ROP Area was the Coordinator. Membership Development Reception: The Districts 2nd Annual Membership Mixer was held on Thursday, March 21, 2013. Robert Keller of DerManouel Insurance Group sponsored the event.

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CLC Membership Mixer: The San Joaquin District CLC mixer was held on July17, 2013at the Fresno Builders Exchange. The topic for discussion was “Ethics”. It was attended by 14 new CLC members. The committee is planning on a possible “bowling” mixer with the San Joaquin District “Student” members.

Government Relations Developments:

AGC / Caltrans Liaison Committee: AGC/City of Fresno Liaison Committee set four meetings for 2013. March 19, June 18, Sept. 17, and Dec. 10. All meeting begin at 9:00 am and are held at the Caltrans Construction Office on Millbrook in Fresno.

AGC / City of Fresno Committee: The Committee set two meetings for 2013, Jan. 11th & Oct. 11th. All meeting are held at Fresno City Hall.

2014 Succession Plan: Chair – Steve Poindexter with American Paving.

Upcoming District Meetings/Events: ▼ District CalTrans Meetings (10a) in Fresno.

March 19, June 18, September 17, December 10, 2013

▼ District City of Fresno Meetings (10a) City Hall January 11, October 11, 2013

Submitted By: Charmaine Tyrrell on behalf of: Steve Poindexter, American Paving Co. 2013 Chair of the San Joaquin District Board of Directors

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Tri-Counties District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None

Membership Retention and Development Activities:

▼ The Tri-Counties District Membership stands at 56, which is down net 5 from 2012. (Loss of 7, recruited 2 new to date) Combined member retention rate is 86.9%. We are

currently engaging perspective targets for new membership.


▼ June 20th 44 members enjoyed cocktails, hor d’oeuvres and dinner at the district’s Seaside Social, held at the Santa Barbara Yacht Club. Members networked while enjoying the surf, sand, yachts and a great sunset.

▼ September 27th 85 Members and guests gathered at the Alisal Ranch- River Course

in Solvang for the districts, 38th Annual Golf Classic. The annual event raises money for scholarships to support students pursuing construction related careers and local construction technical training programs. Once again the event was a huge success raising over $7,000 net!


▼ District Agency Engagement continues with local City, County and State Agency Liaison meetings. Most recently, was the May 17th Caltrans District #5 meeting, where Pat Connelly, Caltrans Chief of Construction , Caltrans staff and AGC contractors, discussed 54 projects valued at $479 million (which is nearly a record and 4% of the States total workload) for the 2013 year!

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Submitted by: Tony Morelli on behalf of:

Blair Douglas, Tierra Contracting, Inc., 2013 Tri-Counties Chair, Bill Shields, Armstrong Associates, Inc. 2013 Tri-Counties Vice-Chair

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Los Angeles District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:


▼ Membership Recap: Total membership = 172 ▼ The Los Angeles board members strive to increase participation by both Contractor and

Associate members. The Board members assist in the programs, activities, communications and membership development. They continue to work on ideas for 2013 to help support the contractor’s local and state events.


▼ The Los Angeles Board of Directors held their monthly meetings on the following dates: April 16, 2013, Sheraton Hotel, Cerritos, CA Prevailing Wage Seminar – 70 Attended April 18, 2013, The Hotel Fullerton, Fullerton, CA CLC Leadership Legends Dinner – 121 Attended May 23, 2013, Yorba Linda Country Club, Yorba Linda, CA Wine Tasting Social – 151 Attended June 15, 2013, Santa Ana Zoo, Santa Ana, CA CLC Summer Picnic – 41 Attended August 1, 2013, Sandy’s Beach Grill, Huntington Beach, CA Summer Beach Dinner – 291 Attended

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District Board Speakers: May 1, 2013, AGC of California, West Covina, CA Speaker, Salvador Lona, AonHewitt

Obama Care 101 June 5, 2013, AGC of California, West Covina, CA Speaker, Tobin Teller, Metropolitan Water District

Metropolitan Water District Upcoming Projects September 4, 2013, AGC of California, West Covina, CA Speaker, Joe Stergios, Enterprise Fleet Management

Update on State Strategic Plan

Upcoming District Meetings/Events: October 2, 2013 Los Angeles Board Meeting West Covina

October 14, 2013 CLC Monday Night Football Seal Beach

November 6, 2013 Los Angeles Board Meeting West Covina

December 13, 2013 Los Angeles Board Installation Dinner Long Beach

Los Angeles District Board of Directors Membership: The 2013 Chair, Los Angeles District, Kevin Malloy, Trench Shoring The 2013 Vice Chair, Los Angeles District, Tony Campbell, Cupertino Electric

Submitted by: Kevin Malloy, Trench Shoring 2013 Los Angeles District Chair

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Orange County District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:


▼ The District currently has 54 Contractor members and 51 Associate members for a total membership of 105. We currently have a net loss of 4 Contractor members and a net increase of 2 Associate members. Our current combined retention is 87.6%. We expect to show positive growth by the end of the year.


▼ The District held our annual Three District Wine Tasting Social at the Yorba Linda

Country Club on May 23, 2013 and we had 151 people attend. Pear Valley Winery which is owned by Tom Maas of Hardy & Harper, Inc. was our featured winery.

▼ On August 12, 2013, we held our Orange County District Golf Classic at the Newport

Beach Country Club and there were 110 golfers in attendance. It was a beautiful day and the course was in exceptional condition.

Government and Community Relations:

▼ The District has held three Orange County Public Works Liaison meetings to-date. We have discovered that their future work may be required to provide long term landscape guaranties. We plan on additional meetings to work some of these details out.

▼ The District has also held two Orange County Transportation Authority Liaison meetings

to date; and with the current work projections being so large, they become even more crucial.

▼ Two Caltrans District 12 meetings have been held to-date. We are participating in a

Mandatory Pre-Bid Meeting which will be held later this month and will cover Partnering Relations and an additional HOV Lane on Interstate 5.

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Submitted by: Bill Hamilton on behalf of:

Brian Arthur, Turner Construction 2013 Orange County District Chair

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Riverside/San Bernardino District Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None. Membership Retention / Development Activities:

▼ The District ends the third quarter with 77 Contractor members and 24 Associate members for a total membership of 101. These numbers reflect a net loss of 9 Contractor members and 2 Associate members. Our combined retention is 86.6%.


▼ The District held their annual Golf Classic at Vellano Country Club on April 22, 2013.

We had 112 golfers who greatly enjoyed the beautiful weather and the course conditions.

▼ The District participated in the Three District Wine Social which was once again held at

the Yorba Linda Country Club on May 23, 2013. We had 151 people in attendance. Pear Valley Winery which is owned by Tom Maas of Hardy & Harper, Inc. was our featured winery.

▼ On September 23, 2013, the District held a Monday Night Football Social at the

ProAbition Restaurant in Riverside. There were 73 in attendance to watch the Bronco’s handily defeat the Oakland Raiders.


▼ This District has held three Caltrans District 8 Liaison meetings and because of all the

work that the District currently enjoys, the meetings are very well attended.

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Submitted by: Bill Hamilton on behalf of: Jerome Di Padova, Skanska USA Civil West California District

2013 Riverside/San Bernardino District Chair

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Associates Council Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013

Issues or Motions for State Board of Directors:

None Council Participation:

▼ Currently there are 39 listed, of which approximately 17 members participated at the May 3rd meeting, at the Palace Hotel in San Francisco. The council continues to engage

perspective new Associate Members for participation. Committee Issues / Activities: ▼ May 3rd - Topics the Council discussed and are looking for ways to:

Engage new associates, to become more involved and learn about the industry.

Evaluating “gaps” in industry representation as associates and address.

Conduct a Survey of all associates to determine satisfaction and value.

CE credits: Is there a way to award for attendance at special workshops?

AGC Connect: Should we utilize a “forced portal” to require members to login to sign-up for events, communication, etc. ?

Council Activities:

▼ -None this period-

Submitted by: Tony Morelli on behalf of

Joe Stergios, Chair

Enterprise Fleet Management

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Legal Advisory Committee Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None LAC Meetings, Topics Discussed:

▼ Updates on General Liability and Excess Insurance Charges – Bob Mahan, Mahan Insurance Brokers

▼ Legislative Review and Update – Paul Gladfelty, AGC Advocate ▼ Open Discussion / Round Table

▼ The LAC continues to hold monthly meetings with a strong turnout, 50-60 firms, to

discuss pertinent legal issues. Currently LAC membership is at 164.

▼ Completed six AGC of California Contract Documents.

▼ The LAC is interfacing with AGC’s Legislative Committee reviewing 15 pieces of legislation.

Legal Retreat, September 20 – 22, 2013, topics discussed:

▼ AGC of California Strategic Planning – Randy Douglas, President, AGC of California, President, Tierra Contracting, Inc. and John Hakel, Vice President Government Relations, AGC of California

▼ Navigating the Minefield, Potpourri of Recent Wage & Hour, Disability and NLRB Labor and Employment Case Law Developments Affecting California Contractors – Paul Simpson, Simpson, Garrity, Innes & Jacuzzi, PC

▼ Listing Subcontractors: A Pitfall on Public Projects – Tyson Arbuthnot, Rogers Joseph O’Donnell

▼ Subguard v. Surety – Jim Berriatua, Senior Vice President, Gallagher Construction Management Services and Rebecca Glos, Watt, Tieder, Hoffar & Fitzgerald, LLP

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▼ Recent Developments in Construction Arbitration – Ed Lozowicki, Sheppard, Mullin, Richter & Hampton

▼ Turning and Expert Witness into a Great Witness in a Construction Litigation Case – Glenn M. Gelman, CPA, MS-Tax, CFF, Managing Director, Glenn M. Gelman & Associates

▼ So Now You Can Be Licensed as a LLC: Should you? Issues to Consider Before You

Decide – Mark Johnson, Alston & Bird

The Legal Hotline calls are averaging 12 calls per month. Next LAC Meeting: ▼ November 12, 2013 Lubka and White, Monrovia, CA Submitted by: John Hakel on behalf of: Marilyn Klinger, Sedgwick LLP

2013 Legal Advisory Committee Chair

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Open Shop Council Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None. Council Issues / Activities:

▼ During the first three quarters, the Council has had 10 Open Shop/Apprenticeship Training members resign from the Chapter. This could have been much worse; however, we have been able to convince 3 members to bring their dues up-to-date and to be reinstated. During the same period, we have only been able to recruit 3 new members. We expect to recruit more members than we have lost by the end of the year because of increased pressure from outside groups.

▼ The California Department of Apprenticeship Standards continues to increase

enforcement for both compliance with apprenticeship standards and wage and hour regulations. This increase has created more interest in our services. It has been revealed that of the 600 wage and hour audits conducted, 51% have resulted in fines or worse and the indications are that construction companies will be higher on the target list than others.

Upcoming Council Meetings / Events:

▼ On February 8, 2013, the Council held their first meeting this year in conjunction with the State Board meetings in Santa Barbara.

▼ On October 15, 2013, the Council will co-host an Open House Mixer to be held at the

AGC Apprenticeship and Training Center in Riverside. ▼ The next Council meeting will be held during the Fall Conference at the Rancho Las

Palmas Resort & Spa in Rancho Mirage.

Submitted by: Bill Hamilton on behalf of: Carl Johnson, Near-Cal Corporation, 2013 Open Shop Council Chair

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Safety and Health Council Report to State Board of Directors

Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None Council Issues and Activities:

▼ The Safety and Health Council holds monthly meetings and utilizes the Audio/Webcast format. We utilize NorCal/SoCal member locations.

▼ Leadership: Chair: Gade Mobley, Flatiron Vice Chair: Roy Vlaovich, Granite (NorCal) Vice Chair: Clark Peterson, Skanska Civil (SoCal) ▼ AGC Connects- The Safety & Health Council continues to actively build this information

portal. ▼ Safety Education Series

1. Speakers Series continued; 2nd and 3rd Quarter 2013

a. Spring Conference – “Emerging Issues in Safety, Quality and Claims” Richard Andrews, Zurich NA

b. May– “Folsom Spillway Project” Larry Camilleri and Jon Blazer, Granite Construction

c. May – “2012 NFPA 70e electrical Safety in the Workplace” Scott Seaburg d. June - “Legal Marijuana, A Game Changer?” Bob Stevens, Emerald Bay

Consulting e. July – See Joint meeting notes f. August – Pile Driving “101” Duwayne Bahnson, Flatiron g. September – See Planning Workshop notes

▼ Industry Safety Conference - Joint SHC meeting with AGC California and San Diego

Chapter

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One hundred Twenty SHC members attended the conference held at the Skanska Riverside location on July 10th. This represents a ten percent increase in attendance year over year. The 2013 conference theme was “Leadership” and supported by six outstanding speakers. Vendor sponsorship supported the event and innovative and new products were showcased. Attendees received certification for 7 hours of continuing education credit, for credential purposes.

Topics and Speakers: 1. “Situational Leadership” Clark Peterson, Skanska 2. “GHS: Leadership for the Long Process” Lindsay Polic, EORM 3. “Troops to Engineers SERVICE” , Patricia Reilly, Ed.D (Commander USN, retired)

San Diego State University 4. Managing Soft Tissue Injuries, Woody Dyer, MS, CPE, CIE Travelers 5. “Safety Plus Fitness Equals Wellness – Check your blind spot” Vince Hundley, MS, CSP Smart Safety Group 6. “Recruiting and Retaining the Next Generation of Safety Professionals” Dr. Sathy Rajendran, PhD, CSP, CRIS, LEED AP Central Washington University

▼ SHC Annual Planning Workshop September 18-20, 2013

The annual Planning Workshop is the event at which the Safety and Health Council identifies and plans council activities for the upcoming year. The event is supported via registration fees and corporate sponsorship.

Topics and Speakers: 1. “How to Win a Toxic Tort Case Prior to Trial”, Gina Miller Call & Jensen 2. Carbon Monoxide and Related Issues on Construction Projects and 3. Valley Fever Update, Joel Cohen, MPH, CIH The Cohen Group 4. Pro 65 and Changes Afoot in Legislative session, Robert Fried, AALRR 5. Work Zone Safety PR and Incident Analysis, Anne Staines, ProProse and Pat Fyrie,

PhD. UC Davis 6. “Emergencies, Crises and Disaster: The Changing Role of Today’s Safety Health

and Environmental Professional” Cathi Marx, ALCM, Aspen Mngt Group 7. “Demystifying Cal OSHA – The Details” , Dick Monod de Froidville

▼ California Constructor articles

July/August: Preparing for Effective Fall Rescue, Steve Phillips, CSP, Hensel Phelps

September/October: “Changes Take Effect to New HazCom Standard Joel Cohen, MPH, CIH and Mark Golembiewski, CIH, The Cohen Group

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September/October: “heat Illness Standard Under review in California” Kate Smiley Crawford, AGC Staff

Government Relations Activities:

▼ Cal OSHA / Advisory committees: We represent member companies by participation on stakeholder committees involving regulatory or legislative issues.

1. CRITICAL: Updates to the Lead Standard.

Cal/OSHA continues to work towards updates on the Lead Standard, to develop rulemaking which will affect the Construction industry, and others. Efforts will continue through 2013, with a rulemaking package expected in 2014. The Safety and Health council has a committee devoted to providing specific industry feedback regarding work scope application and the Employer burdens on testing and medical recordkeeping. We continue to meet periodically with the Deputy Chief on the areas of concern for appropriate worker safety rulemaking and unintended consequences. The proposed updates include lowering the Blood Lead Levels, increased mandated medical surveillance and training requirements, and very prescriptive regulation on controls; ie on equipment and specific methods of work. We are concerned about each of those issues, including the underlying potential for the Workers compensation system to become overloaded as a result.

TAKE AWAYS: 1. Patty Becker, CIH, Cupertino Electric

Regulatory update on Lead in the Jan 2013 Constructor. 2. Position statement to Division April 2013 and August 2013 3. Working meeting with Deputy Chief Gold scheduled for October 2013 4. Training and VAR materials will be prepared when rulemaking is complete.

2. CRITICAL: Globally Harmonized System (GHS).

As a “state plan” state, with our own regulatory agency and set of rules, regulations promulgated in California must be equal to or exceed that which is required by Fed OSHA. This activity on GHS is required in response to the new federal language in (OSHA HCS 2012). The Globally Harmonized System updates to the Hazard Communication Standard are proposed for adoption by the Division in three phases. We are in full agreement with the purpose, which is to classify and communicate chemical hazards in a manner consistent with the provisions of the United Nations Globally Harmonized System of Classification and Labeling of chemicals, Rev 3. We are in

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coalition providing analysis of disconnects between the proposed CA language and that which exists in the Fed language. Those efforts will continue as each phase is introduced by the Division. TAKE AWAYS: 1. Training/training materials are developed and available for sale. 2. Federal law requires employers to provide new training by December 1, 2013.

3. CRITICAL: Heat Illness

Expect continued high emphasis on heat sweeps and heightened review of Heat Illness programs when applying for permits from the Division. Efforts to expand the regulatory influence on Heat Illness will continue, including the potential for a regulation regarding indoor work.

TAKE AWAYS: 1. Heat Illness training c/ds are available via the Safety Library. 2. If rulemaking ofccurs, we will be involved and keep membership involved and advised. 3. Training c/ds will be updated as appropriate.

4. CRITICAL: Roadway Worker Safety Change Initiative

The Legislative effort, AB 444, coined “Positive Work Zone Protection Act” is intended to revise CA law to implement the concept of Work Zone protection on highway and other construction projects with public vehicular traffic on the perimeters of the project site. The intent is to enhance provisions related to the conduct of the public with respect to traffic in the area of construction job sites and provides enabling provisions for law enforcement in relation to such projects.

TAKE AWAYS: 1. We are working with Cal Trans, interested parties and Dave Ackerman/Jamie Khan to move this forward in the 2013/2014 session.

▼ Cal Trans / AGC Safety Liaison meetings are held on a quarterly basis with meetings held in Northern and Southern California. Focus is on changing specifications, extended work windows, positive protection in work zones.

TAKE AWAYS: 1. We have provided language /feedback for updates to the DMV manual. 2. We are working with CalTrans District 11 to further Pilot program efforts with

COZEEP, MAZEEP.

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▼ Cal OSHA Standards Board - each monthly meeting is attended, as the staff

representative of the organization in support of and conjunction with affected members.

There is definite movement by the Division to submit rulemaking proposals when citation decisions are lost at the Appeals Board or higher level. Some decisions may go to the Supreme Court. We provide feedback to the Division in these cases.

We are engaged and actively provide the Standards Board support in rulemaking proposals. Proposing language and insight into real world construction field application has proven valuable to our industry, stopping some proposals completely or revisiting a Standard, when unintended consequences occurs ( CSO 1533 Mechanical Ventilation)


▼ The Council provides members to support the Education Foundation efforts. .


▼ Construction Safety Excellence Awards to be presented at the Fall Conference in Rancho Mirage.

See the website for the meeting schedule.

Submitted by: Kate Smiley on behalf of: Gade Mobley, Flatiron West, Inc. 2013 Safety and Health Council CHAIR

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Union Contractors Council Report to the State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None

Northern California:

▼ The IR North completed negotiations in 2013 with the Operating Engineers union, concerning the Operating Engineers Master Labor Agreement. Further details regarding the 2013-2016 AGC/Operating Engineers Master Labor Agreement can be obtained by contacting the IR North department.

▼ The IR North completed negotiations in 2013 with the Cement Masons union, concerning the Cement Masons Master Labor Agreement. Further details regarding the 2013-2016 AGC/Cement Masons Master Labor Agreement can be obtained by contacting the IR North department.

▼ The IR North completed negotiations in 2013 with the Teamsters union, concerning the Teamsters Master Labor Agreement. Further details regarding the 2013-2016 AGC/Teamsters Master Labor Agreement can be obtained by contacting the IR North department.

▼ The IR North completed negotiations in 2013 with the Laborers union, concerning the Laborers Master Traffic Control/Highway Improvement Master Labor Agreement. Further details regarding the 2012-2015 AGC/Laborers Master Traffic Control/Highway Improvement Master Labor Agreement can be obtained by contacting the IR North department.

▼ Labor Relations Bulletins (NLRs) – Thus far, the IR North has published 33 informative labor related bulletins.

▼ The IR North has recently published the new 2013-2014 Wage Scale Binder, as well as an updated Northern California Union Directory. The Wage Scale Binder contains all the important economic information for the Carpenters, Cement Masons, Iron Workers, Laborers, Operating Engineers, Pile Drivers, and Teamsters. The Union Directory includes contact information for the Apprenticeship & Training Offices, Trust Funds, District Councils,

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Local Offices, and Building Construction Trade Councils in the 46 Northern California Counties.

▼ The IR North has completed its effort to conduct a third annual State of the Industry meeting with the Laborers. The event was conducted in September at Cache Creek Casino Resort in Brooks, California. There were over fifty participants that heard presentations from the California High Speed Rail Authority, Laborers Trust Fund office, Foundation for Fair Contracting, Construction Industry Force Account Council, California Alliance for Jobs, and the Laborers LECET program.

▼ Grievance activity in Northern California has increased from past years. A total of 25

grievances have been filed this year (Carpenters – 3, Cement Masons – 0, Laborers – 9, Operating Engineers – 7, Pile Drivers – 0, Teamsters – 0, Iron Workers – 0, Laborers Traffic Control – 6).

▼ The 2014 Northern California Union Contractor Council meetings have been scheduled as follows: Wednesday, January 29, 2014, Wednesday, April 9, 2014, Wednesday, June 25, 2014, and Wednesday, September 17, 2014. If member contractors have any questions regarding any information contained in this report, please contact the Industrial Relations Department North at (925) 827-2422.

If contractors have any questions regarding any information contained in this report, please contact the Industrial Relations Department North at (925) 827-2422. Southern California:

NEGOTIATIONS

In addition to regularly scheduled Union Contractors Council Meetings, a Joint UCC and Signatory Ratification meeting was held on August 2, 2013.

New 2013-2016 Agreements have been reached for the Operating Engineers Union and the Teamsters Union.

TRUST

A new trustee was assigned on the Laborers Health and Welfare Trust.

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GRIEVANCES

Two second step meetings are scheduled for the week of October 7, 2013. Both are with the Operating Engineers Union.

MISCELLANEOUS

There have been leadership changes within the District Council of Carpenters. The International Council has stepped in to temporarily manage the district. AGC is tracking further changes.

If contractors have any questions regarding this report please contact, the Industrial Relations Southern Department at (626) 608-5800.

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Specialty Contractors Council Report to State Board of Directors Date: November 1, 2013 Period Ending: September 30, 2013 Issues or Motions for the State Board of Directors:

▼ None Council Issues / Activities:

▼ The Specialty Contractors Council held its most recent meeting at the 2013 Spring Conference. The presentation at this meeting dealt how to grow the specialty contractor council and future meeting interest and topics. The next Specialty Contractor Council meeting will occur at the Fall Conference in October/November 2013.

▼ The Specialty Contractors Council is actively looking for an “Outstanding Specialty Contractor of the Year”

▼ Succession Planning: 2013 has brought a new Chair for this council, Cory Bykoski of

Dynalectric will assume this role.

Submitted By: Phil Varni on behalf of: Cory Bykoski, Specialty Contractors Council Chair, Dynalectric

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Standing State Committees/Councils Proposed Recommendation: It is recommended that the State Board of Directors establish the Standing State Committees/Councils listed below for 2014. Background: Standing State Committees/Councils are reestablished each year, beginning January 1 and ending December 31. According to the policy adopted by the State Board of Directors, all Standing State Committees/Councils will be sunsetted at the end of each year unless reestablished by the State Board of Directors. The following Standing State Committees/Councils have requested reestablishment for 2014: Associates Committee Awards Committee Legal Advisory Committee Legislative Committee Membership Development Committee National Affairs Committee Nominating Committee Open Shop Council Safety & Health Council Union Contractors Council (North) Union Contractors Council (South)

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AGC of California2013 Membership Report

4th QUARTER

Contractor Members Associate Members

Reinstate Reinstate TotalManager District Prior Gains Losses Gains Losses Gains Net Total Prior Gains Losses Gains Losses Gains Net Total Members

J. Cooper 1 Eureka 4 0 4 2 0 2 6J. Cooper 2 Shasta 13 0 13 7 0 7 20J. Cooper 3 Delta-Sierra 39 0 39 81 0 81 120K. Rowe 4 North Bay 12 0 12 10 0 10 22K. Rowe 5 SF Bay Area 76 0 76 128 0 128 204P. Varni 8 Santa Clara 25 0 25 22 0 22 47P. Varni 9 Monterey Bay 8 0 8 7 0 7 15D. Jones 10 San Joaquin 26 0 26 27 0 27 53T. Morelli 11 Tri-Counties 30 0 30 26 1 1 27 57D. Jenkins 12 Los Angeles 88 -2 -2 86 84 0 84 170W. Hamilton 13 Orange County 54 1 -1 0 54 51 0 51 105W. Hamilton 14 Riv./San Bern. 77 -1 -1 76 24 0 24 100

TOTAL 452 1 -4 0 0 0 -3 449 469 1 0 0 0 0 1 470 919

Total AGC Membership as of OCTOBER 1, 2013 921NET GAIN OR LOSS -2Total AGC Membership 4th QUARTER as of OCTOBER 15, 2013 919

Net Increase 944Current Total 919

Reclass/ Reclass/Dist Changes Dist Changes

910

915

920

925

930

935

940

945

950

Need to ReachOverall Goal

Current Total

Current Total 919Need to Reach Overall Goal 25

905

910

Overall Membership GoalStats

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AGC of California2013 Membership Report

YEAR-TO-DATE

Contractor Members Associate Members

Reinstate Reten. Reinstate Reten. Total Combined 2013 Goal ActualManager District Prior Gains Losses Gains Losses Gains Net Total % Prior Gains Losses Gains Losses Gains Net Total % Members Ret. % Net Gain % Net Gain %

J. Cooper 1 Eureka 4 0 0 0 0 0 0 4 100% 2 0 0 0 0 0 0 2 100% 6 100.0% 0% 0.0%J. Cooper 2 Shasta 14 0 -1 0 0 0 -1 13 93% 6 1 0 0 0 0 1 7 100% 20 95.0% 0% 0.0%J. Cooper 3 Delta-Sierra 40 1 -3 1 0 0 -1 39 93% 82 5 -6 0 0 0 -1 81 93% 120 92.6% 0% -1.6%K. Rowe 4 North Bay 12 0 0 0 0 0 0 12 100% 9 2 -1 0 0 0 1 10 89% 22 95.2% 0% 4.8%K. Rowe 5 SF Bay Area 70 9 -3 0 -1 1 6 76 97% 130 6 -9 1 0 0 -2 128 93% 204 94.5% 0% 2.0%P. Varni 8 Santa Clara 24 1 -1 0 0 0 0 24 96% 26 1 -5 0 0 0 -4 22 81% 46 88.0% 0% -8.0%P. Varni 9 Monterey Bay 8 1 0 0 0 0 1 9 100% 8 0 -1 0 0 0 -1 7 88% 16 93.8% 0% 0.0%D. Jones 10 San Joaquin 26 3 -2 0 -1 0 0 26 92% 25 5 -2 0 -1 0 2 27 92% 53 92.2% 0% 3.9%T. Morelli 11 Tri-Counties 34 2 -6 0 0 0 -4 30 82% 27 2 -2 0 0 0 0 27 93% 57 86.9% 0% -6.6%D. Jenkins 12 Los Angeles 100 5 -19 0 0 0 -14 86 81% 79 11 -6 0 0 0 5 84 92% 170 86.0% 0% -5.0%W. Hamilton 13 Orange County 58 6 -10 0 -1 1 -4 54 84% 47 9 -5 1 -1 0 4 51 89% 105 86.7% 0% 0.0%W. Hamilton 14 Riv./San Bern. 86 3 -15 0 0 2 -10 76 85% 26 0 -3 1 0 0 -2 24 88% 100 85.7% 0% -10.7%

TOTAL 476 31 -60 1 -3 4 -27 449 88% 467 42 -40 3 -2 0 3 470 91% 919 90% 0% -2.5%

Total AGC Membership as of JANUARY 1, 2013 943NET GAIN OR LOSS -24Total AGC Membership YEAR-TO-DATE as of OCTOBER 15, 2013 919

Reclass/ Reclass/Dist Changes Dist Changes

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AGC MEMBERSHIP REPORTMembership Activity July 05, 2013 - October 15, 2013

NEW APPLICATIONS

DISTRICT TYPE COMPANY CITY MEMBER SPONSOR STAFF SPONSOR

03 AM-C Western Project Management, Inc. Folsom John Cooper*04 AM-C Roby Trucking Vallejo Kevin Rowe*05 CM-C Brosamer & Wall, Inc. Walnut Creek Tom Holsman*10 AM-C Busby-Stone Insurance Services, Inc. Bakersfield Robert Keller Charmaine Tyrrell10 AM-C Earthguard by Terra Novo Bakersfield Robert Keller Charmaine Tyrrell11 AM-C Coastline Equipment Oxnard Steve Blois Tony Morelli11 AM-C Ferguson Water Works Ventura Randy Douglas Tony Morelli11 SM-C True-Cut Concrete Cutting Camarillo Randy Douglas Tony Morelli12 PA-C CSU Dominguez Hills OSHA Training Institute Education Center Carson Kate Smiley*12 AM-C Garcia Sullivan & Lopez LLP Los Angeles Bob Mahan Garrett Francis12 AM-C LCPtracker, Inc. Orange Garrett Francis*12 AM-C Philadelphia Indemnity Insurance Company Pasadena Garrett Francis*12 CM-C Reliable Construction Services, LLC Las Vegas Bob Norling*12 AM-C SenovvA Inc. Los Angeles Garrett Francis*12 AM-C Vandeventer Black LLP Pasadena Garrett Francis13 CM-C Acme Concrete Paving, Inc. Spokane Bill Hamilton13 CM-C Acme Concrete Paving, Inc. Spokane Bill Hamilton13 CE-C C2PM Irvine Bill Hamilton13 CM-C Greenland Construction Service, LLC Lynwood Bill Hamilton*13 AM-C Parsons Brinckerhoff, Inc. Orange Dave Jones*13 AM-C South Coast Lighting & Design San Clemente Bill Hamilton14 CM-C Klondyke Construction LLC Phoenix Bob Norling*

+ 21 Total New Applications: + 5 Contractor + 1 Specialty Contractor + 1 Emerging Contractor + 13 Associates + Directional Boring + Joint Venture + 1 Public Agency + IR Service

Revised 10/15/13

Printed 10/15/13

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Per letter, no longer need IR Services. 3Q13

Per call, canceling since no longer need services. 3Q13

Resigned since not in Apprenticeship Program anymore. 3Q13

Expelled for non-payment 4Q13





RESIGNATIONS

DISTRICT TYPE COMPANY CITY NOTE

03 SM-C Sierra Traffic Markings, Inc. Loomis

12 CM-C Suffolk Construction Company, Inc. Irvine

14 CM-C R.I.C. Construction Co., Inc. Hesperia

+ 3 Total Resignations: + 2 Contractor + 1 Specialty Contractor + Emerging Contractor + Associates + Directional Boring + Joint Venture + IR Service

EXPULSIONS


12 CM-C Salazar Construction Inc. Santa Clarita

12 SM-C SealwiZe of Southern California Los Angeles

13 SM-C Pacific Utility Installation Anaheim

14 CM-C Warren Duncan Contracting & Equipment Rentals San Bernardino

+ 4 Total Expulsions: + 2 Contractor + 2 Specialty Contractor + Emerging Contractor + Associates + Directional Boring + Joint Venture + IR Service

REINSTATEMENTS

DISTRICT TYPE COMPANY CITY

13 CM-C DeVries Construction Laguna Niguel

14 CM-C Utah Pacific Construction Company Murrieta

12 SM-C Contractors Cargo Co. dba Contractors Rigging & ErectorsCompton

13 SM-C Ben's Asphalt, Inc. Santa Ana

+ 4 Total Reinstatements: + 2 Contractor + 2 Specialty Contractor + Emerging Contractor + Associates + Directional Boring + Joint Venture + IR Service

Revised 10/15/13

Printed 10/15/13

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SUSPENDED MEMBERS


DISTRICT TYPE NAME CHANGE

+ Total Suspensions: + Contractor + Specialty Contractor + Emerging Contractor + Associates + Directional Boring + Joint Venture + IR Service

NAME CHANGES

05 AM Golden Gate Disposal and Recycling (Norcal Waste Systems) -> Recology Golden Gate Disposal

Total Name Changes: 1

RECLASSIFICATIONS

DISTRICT CHANGES

FROM DISTRICT TO DISTRICT COMPANY LOG_TEXT NET CHANGE

Total District changes:

DISTRICT FROM TYPE TO TYPE COMPANY LOG_TEXT

Total Reclassifications:

Revised 10/15/13

Printed 10/15/13

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08 Alexandra Li San Ramon San Jose State University-Student Chapter

08 Bahar Jafarpur Monterey San Jose State University-Student Chapter

08 Eric Blacklock San Jose San Jose State University-Student Chapter

08 Joshua Vazquez San Jose San Jose State University-Student Chapter

08 Lyhak Eam San Jose San Jose State University-Student Chapter

08 Samuel Gutierrez San Jose San Jose State University-Student Chapter

08 Soknirorn Than San Jose San Jose State University-Student Chapter

08 Vincent Pespitiro San Leandro San Jose State University-Student Chapter

10 Aaron Ramirez Fresno CSU Fresno-AGC Student Chapter

10 Alfredo Gonzalez Fresno CSU Fresno-AGC Student Chapter

10 Alfredo Gonzalez Fresno CSU Fresno-AGC Student Chapter

10 Brice Henry Clovis CSU Fresno-AGC Student Chapter

10 Cesar Javier Mendoza Ivanhoe CSU Fresno-AGC Student Chapter

10 Chanhthavy Yang Fresno CSU Fresno-AGC Student Chapter

10 Christian Guillen Escalon CSU Fresno-AGC Student Chapter

10 Dennis Morales Fresno CSU Fresno-AGC Student Chapter

CITY COMPANY


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SC-I

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COLLEGE STUDENT APPLICATIONS

DISTRICT TYPE FULL_NAME

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

10 Dennis Morales Fresno CSU Fresno-AGC Student Chapter

10 Erik Garcia Madera CSU Fresno-AGC Student Chapter

10 Gabino Munoz Clovis CSU Fresno-AGC Student Chapter

10 Hosanna Kessler Auberry CSU Fresno-AGC Student Chapter

10 Jaime Contreras Fresno CSU Fresno-AGC Student Chapter

10 Johana Godoy Fresno CSU Fresno-AGC Student Chapter

10 Jose Ramos Fresno CSU Fresno-AGC Student Chapter

10 Kevin O'Roak Madera CSU Fresno-AGC Student Chapter

10 Loren Castro Bakersfield CSU Fresno-AGC Student Chapter

10 Michael Nuci Fresno CSU Fresno-AGC Student Chapter

10 Nicholas Jerero Fresno CSU Fresno-AGC Student Chapter

10 Nicko Arzate Fresno CSU Fresno-AGC Student Chapter

10 Thomas Igbinedion Fresno CSU Fresno-AGC Student Chapter

10 Vanessa Montano Fresno CSU Fresno-AGC Student Chapter

10 Victor Green Fresno CSU Fresno-AGC Student Chapter

10 Walter Ramirez Fresno CSU Fresno-AGC Student Chapter

12 Wissam (Sam) Takieddine Van Nuys CA State University Northridge

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

SC-I

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Total New College Student Members: 32

Revised 10/15/13

Printed 10/15/13

SC-I

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SC-I

SC-I

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AGC of CaliforniaPresident’s Club Members

Members as of 10.15.13 update

Jon BallHensel Phelps Construction Co.

Steve BloisValley Vista Consulting, Inc.Lifetime Member

Allen BoghBogh Construction Inc.Lifetime Member

Tony CampbellCupertino Electric, Inc.

Barry CoreaMcGraw-Hill Construction

Miguel GalarzaYerba Buena Engineering &Construction, Inc.

Jennifer GarciaReyes Construction, Inc.

Phil GeorgePhilip E. George, P.E.Lifetime Member

Carl J. JohnsonNear-Cal Corp.Lifetime Member

Robert KellerDer Manouel Insurance Group

Clint LarisonReyes Construction, Inc.

Wayne LindholmHensel Phelps Construction Co.

Stephen MatichMatich Corporation

David A. McCoskerIndependent ConstructionCompanyLifetime Member100+ members recruited

David W. MorrisBeacom Construction CompanyLifetime Member

Barbarette NewtonRedwood Resources

Ted W. PageLifetime Member

Dave PerryCentral Concrete Supply Co. Inc.

Steve PoindexterAmerican Paving Co.

Frank SchipperFrank Schipper Construction Co.Lifetime Member

Mark SteinerM.A. Steiner Construction

Mark ThurmanARB Structures, Inc.

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AGC of CALIFORNIA, INC. Balance Sheet 9/30/2013

(Unaudited)

ASSETS

CURRENT ASSETSCash and Equivalents 431,946$ Restricted Accounts 1,121,891 Investment In Subsidiary (CIAG) 1,860,569 Accounts Receivable - Members 79,694 Other Receivable 18,893 Reserve for Bad Debt (64,083) Inventory 18,896 Prepaid Expenses - Other 3,113

Total Current Assets 3,470,919$

FIXED ASSETS

Land 196,839 Building & Improvements 1,915,917 Automobiles 255,197 Office Furnishings, Fixtures & Equipment 1,678,362 Accumulated Depreciation (2,689,220)

Total Fixed Assets 1,357,095

DEPOSITS 19,178

Total Assets 4,847,192$

CURRENT LIABILITIESAccounts Payable & Accrued Expenses 95,002 Accrued Salaries & Vacation 182,668 Funds Held in Trust 71,218 Unearned Income 497,277 Unearned Income - Leg Funding 447,722

Total Current Liabilities 1,293,887

LONG TERM LIABILITIES

Equipment Notes 165,165 Retirement Payable 861,273

Total Long-Term Liabilities 1,026,438

Total Liabilities 2,320,324$

Net AssetsCurrent Unrestricted 2,379,931

District Funds 146,937

Total Fund Balance 2,526,868$

Total Liabilities and Fund Balance 4,847,192$

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AGC of CALIFORNIA, INC. Page 1 of 2Statement of Revenue & Expenses For the Period Ended 9/30/2013

(Preliminary & Unaudited)ANNUAL YTDBUDGET ACTUAL BUDGET VARIANCE

REVENUE

DUESDues - Contractors 2,150,000 1,610,993 1,652,995 (42,002) Dues - Associates 295,000 226,937 221,250 5,687

Total Member Dues 2,445,000$ 1,837,930$ 1,874,245$ (36,315)$

Contract AdministrationContract Administration 335,000 251,100 251,250 (150) Contract Administration Fees 1,250,000 954,633 937,500 17,133

Total Contract Administration 1,585,000 1,205,733 1,188,750 16,983

OTHER REVENUEAdmin. Fees (CCAP - Ef Fdn - Health Trust) 22,500 15,000 15,000 - Advertising 45,000 45,751 43,500 2,251 Committee Dues 35,000 39,063 35,000 4,063 Conferences 15,000 - - - Grants - OE 70,000 37,500 52,500 (15,000) Investments/Gain on Assets 75,000 77,531 56,250 21,281 Legislative Program Fees 278,325 203,000 203,000 - Premier Sponsorships 30,000 13,500 22,500 (9,000) Publication Sales 23,000 24,874 17,250 7,624 Rental Income (net) - 6,270 - 6,270 Revenue - Misc. 110,000 105,365 82,500 22,865 Seminars & Programs 100,000 53,645 75,000 (21,355)

803,825$ 621,499$ 602,500$ 18,999$

Total Revenue 4,833,825$ 3,665,162$ 3,665,495$ (332)$

EXPENSESSTAFFSalaries 2,073,000 1,546,456 1,554,750$ 8,294 Temporary Help 1,000 - - - Staff Insurance 350,000 259,018 287,653 28,635 Payroll Taxes 175,000 145,411 186,570 41,159

Total Staff Expenses 2,599,000 1,950,885 2,028,973 78,088

GENERALArbitration 5,000 - - - Audit and Accounting Services 25,000 18,677 19,000 323 Autos 135,000 105,047 112,500 7,453 Constructor Costs 45,000 29,083 29,000 (83) Copying/Printing/Pubs COS 75,000 55,848 56,250 402 Insurance - General Liability 27,000 26,858 27,000 142 Legal 20,000 12,891 15,000 2,109 Memorials 500 - 375 375 Office Equipment Expenses 20,000 12,915 15,000 2,085 Photographs and awards 750 217 563 346 Postage 27,500 16,025 20,625 4,600 Presidents Expenses 15,000 - - - Subscriptions 19,000 13,392 14,250 858 Supplies and Paper 35,000 24,229 26,250 2,021 Telephone 123,000 86,237 92,250 6,013 Training 4,000 2,421 3,000 579 Travel - Lodging, Entertainment, Etc. 120,000 87,708 90,000 2,292

. .Total General Expenses 696,750 491,548 521,063 29,515

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AGC of CALIFORNIA, INC. Page 2 of 2Statement of Revenue & Expenses For the Period Ended 9/30/2013 (DRAFT)(unaudited) DRAFT

ANNUAL YTD YTDBUDGET ACTUAL BUDGET VARIANCE

OCCUPANCYRent 200,000$ 145,120$ 150,000 4,880$ Maintenance and Repairs 45,000 35,954 33,750 (2,204) Utilities 40,000 26,369 30,000 3,631 Property Taxes 38,000 16,211 17,000 789 Insurance 3,000 3,000 3,000 -

Total Occupancy Expenses 326,000 226,654 233,750 7,096

MEETINGSCommittees 75,000 58,222 56,250 (1,972) State Board Meetings 70,000$ 66,298 45,000 (21,298) National AGC Functions 45,000 42,163 40,000 (2,163)

Total Meeting Expenses 190,000$ 166,683 141,250 (25,433)

OTHERBank Fees& Payroll Processing 35,000 19,827 26,250 6,423 Consulting Fees 126,000 83,368 94,500 11,132 Contributions 20,000 10,000$ 10,000 -$ I.T. Expenses 90,000 67,399 67,500 101 Insurance Trustees 1,500 1,925 1,125 (800) Interest Expense 18,000 8,390 13,500 5,110 Marketing 60,000 44,778 45,000 222 Miscellaneous Appropriations 1,000 - -

Total Other Expenses 351,500$ 235,687 257,875 22,188

Total Operating Expenses 4,163,250$ 3,071,457$ 3,182,911$ 111,453$

NON-OPERATING EXPENSES

Depreciation 290,000 217,500$ 217,500 -$ Legislative Program 113,325 79,250 79,250 - National Dues 305,000 224,201 228,750 4,550 Pension Cost 35,000 37,858 34,750 (3,108) Staff Recruitment 3,000 3,000 3,000 - Taxes 4,500 3,325 3,325 -

Total Non-Op. Expenses 750,825 565,134 566,575 1,442

Total Expenses 4,914,075$ 3,636,591$ 3,749,486$ 112,895$

Increase (Decrease) inFund Balance-Current Operations (80,250.00)$ 28,572 (83,991)$ 112,562$

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2013 AGC Legislative Report

Final Status Following Governor’s Actions

As of October 13, 2013 2013 LEGISLATIVE SESSION RESULTS Governor Jerry Brown had the final say on nearly a thousand bills sent to him by the Legislature this year – many of them passed in the final days of the legislative session. AGC directly lobbied 45 bills on which the Legislative Committee took positions. When the dust finally settled – 19 of the bills we actively opposed or had concerns with were

defeated or amended to remove our opposition. 8 bills supported by AGC were signed into law. 3 bills opposed by AGC were vetoed. 3 bills opposed by AGC were signed into law. 1 bill supported by AGC was vetoed. 11 additional bills are still “alive” to be acted on in the second year

of the two-year session. AGC Sponsored/Co-Sponsored Bills: AB 444 (Lowenthal) - Highway Worker Safety (Sponsor/Support) – Provides for increased safety measures to protect workers in highway work zones. Status: Two Year Bill AB 444 is being authored for AGC by the Chair of the Assembly Transportation Committee. It is co-sponsored by the Operating Engineers and the State Council of Laborers. Following several meetings with Caltrans, AB 444 will become the subject of an Assembly Transportation Committee fact finding hearing later this year where Caltrans and contractors will be called to testify on what steps are being taken to revise Caltrans specifications to increase worksite safety and what provisions should be amended into AB 444 to enact necessary legislative changes.

Associated General Contractors (AGC)

The California Chapters

Legislative Advocates:

David Ackerman Paul Gladfelty

Jamie Khan

1201 K Street

Suite 750 Sacramento, CA 95814

(916) 444-9601 (916) 444-7841 Fax

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http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_444&sess=1314&house=B


http://asmdc.org/members/a70/


2013 Legislative Report Page 2 SB 785 (Wolk) - Design-Build (Sponsor/Support) – Consolidates and streamlines existing design-build statutes into a single statute for use by public agencies.

Status: Two Year Bill

SB 785 has been approved by all Senate committees and will be voted on in January by the full Senate. The bill is being placed on a two-year track to give all stakeholders (cities, counties, etc.) time to review language which will become new “base-line” language for all future design-build.

AB 1236 (Hagman) - Contractors: Limited Liability Companies (Co-Sponsor/Support) – Permits liability insurance policies required for construction LLC’s may also be written by an eligible surplus lines insurer.

Status: Signed by the Governor This is a follow-up bill to legislation AGC sponsored allowing LLC’s to be licensed contractors.

Bills supported by AGC AB 8 (Perea) - Alternative Fuel and Vehicle Technology Funding program (Support) – Extends to 2024 the sunset on various permit fees which fund the Carl Moyer Program to provide financing for the retrofitting of construction equipment.

Status: Signed by the Governor AB 164 (Wieckowski) – P3 Project Bonding Requirements (Support) – Requires performance and payment bonds on Public Private Partnership Projects entered into by local agencies. Status: Signed by the Governor AB 195 (Hall) - Counties: Design-Build (Support) – Authorizes counties to use Design-Build for bidding on construction projects in excess of $2,500,000 until July 1, 2016. Their authority would have ended December 31 of this year.

Status: Signed by the Governor AB 210 (Wieckowski) – Alameda/Contra Costa County Transportation Sales Taxes (Support) – Extends authorization for local transportation sales taxes in Alameda and Contra Costa Counties until December 31, 2020, subject to voter approval.

Status: Signed by the Governor

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http://arc.asm.ca.gov/member/AD55/






2013 Legislative Report Page 3 AB 852 (Quirk) - Hospital Construction (Support) – Allows OSHPD to hire outside assistance through contracts with qualified professional architectural or engineering firms to meet faster review turnaround times for project approvals.

Status: “Gut and Amend” at the last minute to remove all content of the bill and propose additional modifications to Senator Steinberg’s Sacramento Kings arena CEQA legislation. Assembly refused to approve the Amendments and the bill died.

AB 1081 (Medina) – Goods Movement Infrastructure (Support) – Requires the Governor’s Five-Year Infrastructure Plan to identify needed state and federal goods movement infrastructure.

Status: Held on Appropriations Suspense File AB 1222 (Bloom) – Retirement – Transit Workers – (Support, Signature Requested) Delays until January 2015 the impact of a federal court order that would result in the Federal Government withholding construction and operation funds from transit districts due to California’s pension law reform last year.

Status: Signed by the Governor SB 11 (Pavley) - Alternative fuel and vehicle technology funding program (Support) – Extends to 2024 the sunset on various permit fees which fund the Carl Moyer Program to provide financing for the retrofitting construction equipment.

Status: Author dropped bill in favor of AB 8 (Perea) which was approved and signed by the Governor

SB 263 (Monning) - Contractors: Unlicensed Activity (Support) – Provides criteria that a contractor must meet in order to be considered duly licensed and therefore be paid for completed work - also establishes a penalty for unlicensed activity.

Status: Two-Year Bill

This bill was sponsored by the Contractor’s State License Board and supported by AGC; however, concerns about consumer protection were raised and the bill is now on a two year track.

SB 328 (Knight) - CM at Risk (Support) – Authorizes and sets out conditions under which counties can utilize CM at Risk procurement.


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2013 Legislative Report Page 4

AGC met with the sponsor (San Bernardino County) and subcontractor groups to secure amendments to 1) require conformity with the subcontractor listing law, 2) require necessary bonding and 3) limit retention to 5%.

SB 399 (Wright) – Prompt Payment for emergency work (Support) – Requires prompt payment of emergency contract work or late payments will be subject to penalties. Status: Vetoed by the Governor SB 502 (Block) - University of California: Bidding Requirements (Support) – Raises the dollar threshold for informal bidding from $100,000 to $600,000. The University will solicit bids in writing and award the work to the lowest responsible bidder.

Status: Two-Year Bill SB 733 (Block) - State Contracts: Disabled Veteran Business Enterprise Statewide Participation Goals: Business Utilization Plan Value (Support) – Specifies that the statewide participation goal for disabled veteran business enterprises may be met through a business utilization plan partner which is certified by the Department of General Services.

Status: Two-Year Bill Bills successfully opposed or amended AB 44 (Buchanan) - Public Contracts (Oppose unless Amended) – Requires subcontractors license numbers to be listed on all bids made to public agencies.


AGC was successful in obtaining two amendments: 1) a delay in implementation until July 1, 2014 and 2) ability of the general contractor to correct a mistake in the license number without risking a bid protest or non-responsive bid.

AB 188 (Ammiano) - Split Roll Property Taxation (Oppose) – Allows for increased taxation on business property in the event of ownership change by moving toward a “split property tax roll.”

Status: Bill is Dead- Held on Rev & Tax Suspense File

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2013 Legislative Report Page 5 AB 263 (Hernandez) - Retaliation: Immigration-Related Practices (Neutral) – Prohibits an employer or any supervising person from engaging in an unfair immigration-related practice in retaliation for pursuing a protected right under labor and employment laws. If an employer is to be found in violation, the courts shall determine whether to suspend the business license.


AGC, CalChamber and many other employer groups opposed this measure. Amendments were worked out with the sponsor, and AGC and others went neutral.

AB 561 (Ting) – Documentary Transfer Tax (Oppose) – Would utilize the imposition of a documentary transfer tax to establish transfer of ownership of commercial property establishing precedent for a split property tax roll.

Status: Bill is Dead - AGC joined a coalition in opposition and the author dropped the bill from further consideration this year.

AB 811 (Lowenthal) - Excavations (Oppose) – Originally required an excavation contractor to obtain a special excavation certificate and training from the Contractor’s License Board.


AGC successfully opposed AB 811 and the author agreed to delete the role of the Contractors' License Board and turn the bill into a request for data on excavation “hits” and accidents.

AB 834 (Williams) - Energy Efficiency Standards: Unfair Business Practice (Oppose) – Subjects a licensed contractor to discipline for the failure to comply with specified energy efficiency standards under the California Code of Regulations.

Status: Amended to Remove Opposition

AGC, along with CBIA, were opposed to this measure which was dropped and has been totally amended to a different subject matter.

AB 870 (Jones-Sawyer) - Public Contractors: Bidders Employment Practices (Oppose) – Prohibits those who contract with the state from requesting conviction information from an applicant for employment.

Status: Held on Appropriations Suspense File

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AGC and the construction industry were concerned about the effect this measure would have on the requirement that backgrounds be checked of those who work on school projects – the bill was held in the Assembly suspense file.

AB 1164 (Lowenthal) - Liens: Employees and Workers (Oppose) – Allows an employee or worker to record a lien on the real or personal property of his or her employer if the employer fails to pay the wages to which the employee or worker is entitled.

Status: Held on Appropriations Suspense File

This bill was successfully opposed by AGC working with a coalition of business groups and was held in Assembly Appropriations Suspense File.

AB 1277 (Skinner) - Cal OSHA Procedures (Oppose) – Changes various Cal OSHA investigation and citation provisions, as well as the appeal process and a variety of other issues.

Status: Held on Appropriations Suspense File AGC participated in a coalition with the CalChamber and others groups who opposed this bill which was held in the Assembly Appropriations Committee.

AB 1383 (Hernandez) - Employment Regulations: Local Enforcement (Oppose) – Allows local entities to enforce employment protection in a manner more stringent than state law.

Status: Placed on Senate Inactive File AGC joined a large coalition of other employers who are opposed to local entities taking independent actions to enforce labor laws.

SB 121 (Evans) - Corporations: Political Activities: Shareholder Disclosure (Oppose) – Required a corporation that has shareholders located in this state and that makes a political contribution, to issue a report on the political expenditures of the corporation in the previous fiscal year, and to notify shareholders not less than 24 hours prior to each political contribution.

Status: Bill Defeated AGC testified in opposition and joined with the California Chamber of Commerce and other employers in a coalition to successfully oppose and defeat SB 121 in the Senate Banking Committee.

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2013 Legislative Report Page 7 SB 262 (Monning) – Contractor: Licensed Qualifier (Support, if Amended) – Establishes specific criteria that a qualifier for a construction company must meet and creates a misdemeanor violation for those not meeting the definition.

Status: Signed by the Governor The definition included the term “direct supervision” which was a problem for AGC, but was eventually worked out with the help of Tim Truax and Larry Lubka.

SB 556 (Corbett) - Agency: Ostensible (Neutral) – Provided that a person entering into a labor contract with a contractor is liable for damages if the public believes the employee is an agent of the contractor.

Status: Amended to remove AGC Opposition AGC joined the CalChamber and other organizations to oppose this measure which has since been amended to clarify that it only applies to those who provide labor to public entities that are required to wear a uniform.

SB 626 (Beall) - Workers' Compensation (Oppose) – Repeals many of the cost saving provisions of the Workers’ Compensation reform legislation from last year.

Status: Bill Dead - Dropped by Author SB 626 was dropped by the author from further consideration this year in the face of opposition from the coalition AGC joined with the California Chamber of Commerce along with other employers.

SB 761 (DeSaulnier) - Family Temporary Disability Insurance (Oppose) – Makes it unlawful for an employer with less than 50 employees to discharge or discriminate against an employee for using family temporary disability insurance benefits – also, allows employees to seek civil penalties.

Status: Bill Defeated AGC along with the CalChamber group were opposed to this measure which was defeated on the Senate floor.

SB 791 (Wyland) – Gas Tax Adjustment (Oppose) – Would have eliminated the requirement that the Board of Equalization annually adjust the gas tax rate to reflect enactment of the “gas tax swap,” and instead require any adjustment to be done through an act of the Legislature.

Status: Bill Dead - Dropped by Author

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AGC strongly opposed SB 791 and the author decided to drop the bill from further consideration.

Bills Opposed/Specific Concerns AB 155 (Alejo) - Employment: Payroll Records: Right to Inspect (Oppose) – Requires the employee to elect to inspect or copy, or receive a copy of, or any combination thereof, his or her employment records.

Status: Two Year Bill AGC is working with a coalition headed by the CalChamber to negotiate amendments with the author and sponsor, the CA Rural Legal Assistance Foundation.

AB 401 (Daly) - State Highway Route 405 – (Oppose unless Amended) – Authorizes the Orange County Transportation Authority to use design-build to construct improvements on the Route 405 in Orange County.


AGC opposed during the legislative process and following discussions with Caltrans, requested a signing message concerning implementation issues, but the Governor did not issue a signing message.

AB 302 (Chau) - Prevailing Wage (Oppose unless Amended) – Requires any private work receiving more than $25,000 public subsidy to be termed a public works subject to prevailing wage.

Status: Vetoed by the Governor AB 1055 (Pan) – Heavy Equipment Gross Receipts Tax (Oppose) – Would impose a gross receipts tax on leases of heavy construction equipment in lieu of current personal property tax.

Status: Two Year Bill AGC met twice with the sponsors, the American Rental Association, to discuss possible amendments that would remove our opposition. Review of amendments is pending.

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2013 Legislative Report Page 9 AB 1140 (Daly) – Public Works – Prevailing Wages (Support if Amended) – Requires prevailing wage rates published after January 1, 2014 to be paid on existing contracts even if the change occurs during the course of the contract.

Status: Vetoed by the Governor AGC sought amendments to allow contractors to file a change order with the awarding agency for reimbursement of a wage rate increase not included in the original bid. Amendments were taken to the bill delaying the effect of the wage rate increase for 10 days following the DIR determination.

AB 1336 (Frazier) - Prevailing Wages: Payroll Records (Oppose unless Amended – Requested a Veto) – Allowed Joint Labor/Management committee access to a jobsite and extends the deadline for an employee to bring a wage claim action from 180 days after notice of completion to three years.

Status: Signed by the Governor AGC has met numerous times with the author (a licensed contractor) and expressed our opposition. The author agreed to 1) delete ability of joint labor management committees to access jobsites without permission, 2) eliminate concern about assessment of liquidated damages, 3) protect the general contractor from joint and several liability for prevailing wage claims against a subcontractor and 4) reduce the three-year wage claim limit down to 18 months. AGC remained opposed to the 18 month timeline for making a prevailing wage claim and would have removed opposition if the bill is returned to existing law. AGC requested a veto.

AB 1165 (Skinner) - Cal OSHA: Violations (Oppose) – Provides that the appeal of a serious violation does not stay the abatement dates and requirements.

Status: Vetoed by the Governor

AB 536 (Wagner) - Contractors: Payments (Watch, Seek Amendments) – Attempts to clarify existing provisions regarding amounts owed in a dispute for purposes of withholding payments.

Status: Two Year Bill AGC has been working with the bill sponsor, the Engineering Contractors Association, on concerns both AGC and the Construction Employers Association have concerning the wording of the bill and potential unintended consequences and the sponsor agreed to delay the bill from further consideration this year.

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2013 Legislative Report Page 10 SB 377 (Lieu) – Prevailing Wage Determinations (Oppose – Requested Veto) - SB 377 improperly grants quasi-legislative status to regulations promulgated by the Department of Industrial Relations. Quasi-leg authority means a court has to assume the DIR was correct in interpreting the law and that the DIR's interpretation of what work is covered by the prevailing wage law is quasi-legislative and, therefore, entitled to be upheld by the courts unless it was decided arbitrarily, capriciously or unreasonably.

Status: Signed by the Governor, with a signing message AGC requested a veto. Additional Legislation of Interest Prevailing Wage Legislation AB 454 (Dickinson) - Workers' Compensation Benefits: Prevailing Wages (Watch) Requires the average weekly earnings for an employee employed on a public works project to be taken at wages actually paid or the prevailing wage that was applicable to the work performed by the employee, whichever amount is greater. Status: Vetoed by the Governor SB 7 (Steinberg) - Prevailing Wage – Charter Cities (Watch) – Would withhold state funding from charter cities that adopt an ordinance authorizing contractors not to comply with prevailing wage law on any public works contract. Status: Signed by the Governor SB 54 (Hancock) - Refineries: Skilled and Trained Workforce/Prevailing Wage (Watch) - Requires an owner or operator of a petrochemical plant to require that its contractors and any subcontractors use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades, including skilled journeypersons and pay prevailing wages.

Status: Signed by the Governor with a signing message SB 615 (Galgiani) - Public Works: Prevailing Wages (Watch) - Would expand the definition of "public works," for the purposes of provisions relating to the prevailing wage to include any construction repair work done under private contract on a hospital or health care facility project when the project is paid for with the proceeds of conduit revenue bonds that were issued on or after January 1, 2015.

Status: Vetoed by the Governor

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2013 Legislative Report Page 11 SB 776 (Corbett) - Public Works: Prevailing Wage Rates: Employer Payment Credits (Watch) - Provides that an employer may take credit for specified employer payments, even if those payments are not made during the same pay period for which credit is taken, if the employer regularly makes those payments on no less than a quarterly basis.

Status: Signed by the Governor Labor/Employer Legislation AB 442 (Nazarian) - Employees: Wages (Watch) - Current law authorizes the Labor Commissioner to recover liquidated damages for an employee who brings a complaint alleging payment of less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute. AB 442 would expand that penalty and restitution provision for a citation to also subject the employer to payment of liquidated damages to the employee.

Status: Signed by the Governor AB 729 (Hernández, Roger) - Evidentiary privileges: Union Agent-Represented Worker Privilege (Watch) - Provides that a union agent and a represented employee or represented former employee have a privilege to refuse to disclose any confidential communication between the employee or former employee and the union agent while the union agent was acting in his or her representative capacity. The bill would provide that a represented employee or represented former employee also has a privilege to prevent another person from disclosing a privileged communication.

Status: Vetoed by the Governor SB 288 (Lieu) - Employment Protections: Time Off (Watch) - Prohibits an employer from discharging or in any manner discriminating or retaliating against an employee who is a victim of specified offenses for taking time off from work to appear in court.

Status: Signed by the Governor SB 390 (Wright) - Employee Wage Withholdings: Failure to Remit (Watch) -Makes it a crime for an employer to fail to remit withholdings from an employee's wages that were made pursuant to state, local, or federal law.


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2013 Legislative Report Page 12 SB 400 (Jackson) - Employment Protections: Victims of Domestic Violence, Sexual Assault, or Stalking (Neutral, amendments removed opposition) - Extends protections to victims of stalking. The bill would prohibit an employer from discharging or in any manner discriminating or retaliating against an employee because of the employee's known status as a victim of domestic violence, sexual assault, or stalking. SB 400 also requires the employer to provide reasonable accommodations that may include the implementation of safety measures or procedures for such a victim.

Status: Signed by the Governor SB 435 (Padilla) - Compensation: Meal and Rest or Recovery Periods (Neutral) - Current law prohibits an employer from requiring an employee to work during any meal or rest period mandated by an order of the Industrial Welfare Commission (IWC) and establishes penalties for an employer's failure to provide a mandated meal or rest period. SB 435 would make that prohibition applicable to any heat illness recovery period mandated by applicable statute or applicable regulation, standard, or order of the IWC, the Occupational Safety and Health Standards Board or the Division of Occupational Safety and Health.


SB 655 (Wright) - Fair Employment and Housing Act: Unlawful Practices (Neutral, amendments removed opposition) - Provides that under the California Fair Employment and Housing Act, in a claim of discrimination or retaliation, the person claiming to have been aggrieved shall prevail if he or she has proven that a protected characteristic or activity was a substantial motivating factor in the employment action or decision.

Status: Vetoed by the Governor SB 666 (Steinberg) - Employment: Retaliation (Neutral) - Current law establishes grounds for suspension or revocation of certain business and professional licenses. SB 666 would subject those business licenses to suspension or revocation if the licensee has been determined by the Labor Commissioner or the court to have violated specified laws and the court or Labor Commissioner has taken into consideration any harm such suspension or revocation would cause to employees of the licensee, as well as the good faith efforts of the licensee to resolve any alleged violations after receiving notice.


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MEMORANDUM

TO: AGC Executive Committee AGC Board of Directors

FROM: John Nunan, Legislative Committee Chair DATE: October 31, 2013

SUBJECT: Approval of 2014 Legislative and Government Affairs

Program

This memorandum requests that the Executive Committee and the Board of Directors approve the 2014 Legislative and Government Affairs Program. The Legislature is entering the second year of the 2013-2014 Legislative Session. The program outlined below reflects ongoing legislative issues from 2013 as well as new activities that will take place in 2014. The Legislative Committee met on October 8, 2013 and recommends adoption of the following items for inclusion in the 2014 Legislative and Government Affairs Program.

New Legislative Issues Private Work/Public Work Subsidy Resolution AGC and CEA have been developing legislation to require that developers stipulate in an RFP whether or not a public subsidy has been taken that would trigger a prevailing wage requirement. The proposal would also provide that a developer would be liable for unpaid wages, costs and attorney’s fees if they fail to stipulate in an RFP that a project was subject to prevailing wages, or if a project is later determined to be subject to prevailing wages. Several bills were considered during this legislative year DIR – Cash vs. Bond on Wage Violations The Department of Industrial Relations no longer is accepting posting of a bond in lieu of a cash deposit when undertaking a prevailing wage administrative hearing. DIR counsel is of the opinion that Labor Code Section 1742.1, which addresses the liability for liquidated damages, does not permit posting a bond in lieu of a cash deposit. A clarification in the law will remove any ambiguity and allow DIR to permit the posting of a bond.

Associated General Contractors (AGC)

The California Chapters

Legislative Advocates:

David Ackerman Paul Gladfelty

Jamie Khan

1201 K Street

Suite 750 Sacramento, CA 95814

(916) 444-9601 (916) 444-7841 Fax

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2014 Legislative Program Page 2 CARRYOVER ISSUES FROM 2013 Infrastructure Funding

Transportation Funding AGC will continue its effort to encourage the Governor and Legislature to focus on rebuilding California's aging public infrastructure by seeking long-term financial commitments by working with Transportation California to seek longstanding solutions concerning the financing of California’s transportation infrastructure. AGC heavy construction and highway contractors continue to face challenges in establishing stable funding for construction of highway and transit projects. A major legislative effort will continue in 2014 to implement an immediate funding plan and develop a long-term transportation financing solution. AGC has made the commitment to remain the industry leader on this important issue, which will continue to provide significant resources in both public and legislative affairs. AGC spearheaded the formation of the highway advocacy coalition, Transportation California, to lead industry efforts in this area, and Transportation California will continue to focus on transportation financing issues in 2014, laying the groundwork for a 2014 or 2016 statewide ballot measure. AGC CEO, Tom Holsman and AGC Advocate, Dave Ackerman both serve on Transportation California’s Board of Directors.

Local Agency Design Build – SB 785 (Wolk) AGC is partnering with the Design-Build Institute of America and sponsoring SB 785 to standardize the 28 different design-build statutes enacted in California over the last 20 years. SB 785 has passed all Senate Committees and is ready for a vote by the full Senate in January. The interim months are being used to allow all interested parties time to review the proposed bill language and suggest changes or modifications.

Governor’s Bay Delta Water Transfer Plan AGC will monitor negotiations concerning reworking the water bond that is now scheduled to appear on the 2014 statewide ballot to be able to be in a position to support the revised bond proposal. Included in these discussions is the Governor’s proposal to construct a $25 billion “twin tunnel” water conveyance project in the Sacramento Delta to move water from Northern California to Southern California. AGC will be in support of the project.

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2014 Legislative Program Page 3

High Speed Rail AGC has supported the construction of the California High Speed Rail Project and will continue to monitor and support funding for construction through the annual budget process.

2014 K-12 School Bond Ballot Measure AGC is participating in meetings to encourage support for a 2014 K-12 school construction bond to be placed on the 2014 statewide ballot. Implementation of SB 863: Workers’ Compensation Reform The year for workers’ compensation reform took place in 2012, and the Administration has been grinding through the regulatory process this year to implement the legislative changes. AGC supported SB 863 and is opposed to any efforts to undermine its’ provisions. It is still too early to tell what impact these regulations will have on holding down costs. AGC will be prepared to guard against an attack from the Applicants’ Attorneys to extend coverage, as well as monitor potential additional changes from the employer community that cannot be done through the regulatory process. Type I Indemnity: SB 474 (Evans) One of Governor Jerry Brown’s final acts in 2012 was his signing of SB 474 (Evans) that eliminated the use of Type I Indemnity Agreements between general contractors and their subcontractors effective January, 2013. AGC believes the bill contained several fundamental drafting errors that should have been corrected. AGC legal counsel from both Chapters will draft proposed modifications to the statute enacted by SB 474 and discuss the proposed changes with the subcontractor community to arrive at consensus for possible legislation in 2015. Highway Work-Zone Safety – AB 444 (Lowenthal) AGC is sponsoring AB 444 to address the issue of increasing incidents of highway worker injuries and fatalities. The Assembly Transportation Committee will be holding an “informational” hearing in early January to focus on highway work-zone safety and what legislative solutions may be appropriate. AB 444 will then be amended to reflect those solutions.

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2014 Legislative Program Page 4 Storm Water Issues The Construction Industry Coalition on Water Quality (CICWQ) will:

Develop language regarding federal / state water quality enforcement regulations.

Propose streamline state and local watershed compliance issues to create a statewide template.

Air Quality Issues The Construction Industry Air Quality Committee (CIACQ) will:

Prepare a study to document that the California Air Resources Board is over regulating off-road diesel fleets projections.

Draft a legislative concept regarding California’s diesel particulate filters; installations and DPF database.

CEQA Reform As a member of the California Alliance for Jobs, AGC will continue to work with the Alliance on CEQA reform legislation in 2014. Amounts Withheld in Dispute – AB 536 (Wagner) This bill proposes to clarify existing provisions regarding amounts owed in a dispute for purposes of withholding payments. AGC has been working with the bill sponsor, the Engineering Contractors’ Association, on concerns both AGC and the Construction Employers’ Association have concerning the wording of the bill and potential unintended consequences. Gross Receipts Tax on Heavy Equipment Leasing – AB 1055 (Pan) AGC successfully opposed legislation in 2012 that would have imposed a significant gross receipts tax on the leasing of heavy construction equipment. The American Rental Association and United Rentals again sponsored legislation this year to establish a gross receipts tax in lieu of the personal property tax; however, they took steps to make the legislation revenue neutral and impact neutral on the construction industry. AGC has been meeting with the sponsors to determine if amendments are needed to secure AGC support. A new bill will be introduced in 2014, rather than proceed with AB 1055. Contractors’ License Board – SB 263 (Monning) SB 263 is sponsored by the Contractor’s State License Board and has been held over as a two-year bill. The bill specifies that a duly licensed contractor must have a

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2014 Legislative Program Page 5 contractor’s license and must be in the correct category in order to be compensated for work completed. The bill also specifies that a contractor is not entitled to payment if they are not properly licensed at the time of contract execution. AGC is continuing to work on amendments with the CSLB to ensure that the language accomplishes the goal. DVBE Participation Goals – SB 733 (Block) SB 733 specifies that the statewide participation goal for disabled veteran business enterprises (DVBE) may be met through a business utilization plan partner which is certified by the Department of General Services. AGC is in support and is working with the DVBE Alliance to prepare amendments to ensure workability of the legislation. Payment Bonds – SB 616 (Wright) SB 616 would exempt the LA Unified School District from being required to require payment bonds on projects less that $1 million entered into with a small business or micro-business that participates in the District’s self insurance program. The bill was not set for hearing in 2013 but we understand it will be pursued in 2014. Unemployment Insurance Fund The Unemployment Insurance Fund has been borrowing from the Federal Government for the last several years in order to pay for extended benefits during a long recessionary period. With the economy slowly improving, the Legislature and the Governor are looking at ways to repay the Federal borrowing. This can mean only one thing, which is to increase unemployment taxes on employers. This issue was not able to be addressed in 2013, and it is expected to be a thorny issue next year. Proposition 65 At this point, there is no consensus on the reforms that have been advanced on Proposition 65. Protection from private enforcement for small retailers with less than 25 employees and some litigation reforms will not be possible without statutory changes that remain under consideration. Administrative remedies are also being explored that will not require changes in statute. Property Taxation: Change in Ownership/Split Roll AGC will continue to oppose legislation that will allow for a split property tax roll to allow commercial property to be reassessed for tax purposes. It is expected that this legislation will be re-introduced again in 2014.

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