Lake County Contractors Newsbrief
February 1, 2009
Table of Contents

 

LCCA Membership Meeting

Thursday,
February 26, 2009

Country Squire Banquets
Grayslake, IL

5:00 Reception
6:00 Dinner
7:00 Program

“Safety Awards Night”

The February Membership Meeting is LCCA’s Annual Safety Awards program. We will recognize LCCA members who have shown their concern for a safe workplace by achieving a “Lost Work Day” rate that is better than the national average for contractors.


Register

Visit this month's picture page
LCCA/ASA Annual Convention in Costa Rica - January 10 - 15, 2009

From the President  by Tim Penno

Opportunity knocks when you least expect it. Out of nowhere, the Lake County Board took up a resolution to add a Route 53 advisory referendum to the April 7, 2009 ballot.

When I started at LCCA in October, Gary Dowty briefed me on all of the previous efforts to build Route 53 in central and western Lake County. He pointed out all of the NIMBY’s and other obstacles to the much needed transportation arterial. I listened closely even as Gary scoffed and doubted that the project would ever be built.

However, right after New Year’s, I learned about an effort by Lake County Board Commissioner David Stolman of Buffalo Grove to seek an advisory referendum on building Route 53 to Highway 120. Stolman moved quickly to draft a resolution to authorize the referendum and presented it to the County Board's Public Works & Transportation Committee for approval at its meeting on January 14th. The same old opposition to Route 53 surfaced, but the committee approved Stolman’s resolution on a split vote and forwarded the issue for full County Board consideration at its next meeting on January 20th.

LCCA member Suzanne Zupec of Campanella & Sons, who also chairs the Lake County Transportation Alliance, and I urged support for placing the issue on the ballot during the Board’s public commentary session at the January 20th meeting. LCCA members Mike Wolff (Lake County Grading) and Steve Park (Alter Group) also attended the meeting. After a minor amendment, the Board overwhelmingly approved placing the advisory Route 53 referendum on the April 7, 2009 ballot.

While it is exciting to see such stunning movement in just a few weeks, there is much work ahead and the Route 53 NIMBY’s are not going away. LCCA will be taking a lead role in urging public support for the issue. Join LCCA in sending a simple message to anyone you meet: Build 53 – Vote Yes on April 7!

I hope LCCA members take an additional message from this episode. In these economic times - even when things seem dark – opportunities can spring out of nowhere! We might have to work to develop those opportunities, but I believe they are out there.


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 LCCA News
 
LCCA Membership At Work For YOU -

How do potential customers find your business? Customers find you in LCCA’s Membership Directory – both online and print version. LCCA distributes the directory to all Lake County governments and building departments, as well as to all area architects. This is a great way to get your company name out there!

In 2008, the online directory of LCCA members – www.lcca-il.org/directory - received nearly 2200 visits.

How does LCCA help YOU find potential customers? LCCA’s presence in the community helps you find potential customers through its active participation in community development organizations, including Lake County Partners, Waukegan Renaissance Commission, Lake County Chamber of Commerce, Lake County Transportation Alliance, CISCO, Chicagoland Construction Safety Council, Illinois Construction Industry Council and Mid-America Regional Bargaining Association. It is through these partnerships that help LCCA get information on upcoming projects to YOU – our members.


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LCCPAC Auction Postponed -

With the current construction marketplace, the LCCA Board of Directors decided that conducting an effective fundraising auction could be difficult. The Board reasoned that auction prize suppliers likely have fewer items to donate, auction bidders might bid less for auction items (if they bid at all) and attendance could be inhibited by the down economy. As such, the Board has temporarily postponed the Biennial LCCA PAC Auction.

However, the Association still needs to support its government affairs programs and lobbying efforts, so LCCA will be conducting smaller fundraising efforts throughout the year. The Trip Raffle to see the Cubs vs. Sox in Arizona in March is just the first of these efforts (see left-hand column and raffle insert). Watch your mailbox and this newsletter for future events.

The Auction will return when the economy returns. Until then, the LCCA Board & staff will continue work hard to develop fun events to help support important association programs.


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LCCA Members Find Optimism Amidst Grim Financial Forecasts -

Even in grim times, opportunity may still be available to financially stable firms. That’s the message delivered to nearly 100 LCCA members by panelists Scott Yelvington and Todd Horlbeck at the January 26, 2009 Membership Meeting program, “Surviving the Current Economy from the Financial and Investment Perspectives.”

Scott Yelvington, president of NorStates Bank, and Todd Horlbeck, president and founder of Horlbeck Capital Management, didn’t sugarcoat their views of the current economy and both men forecast difficult times for at least the next six to nine months before the economy may improve – but things will improve. In the meantime, weaker firms will be forced to sell or close which will in turn create opportunities for stronger firms. While not exactly uplifting, their message was definitely informative and appreciated by all in attendance.


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Membership Committee Kicks Off -

The LCCA Membership Committee is looking for “a few good members” and they can use your help. Co-Chairs Mike DeNinno, Lake County Grading, and Rick Grabowski, Pickus Construction & Equipment, will be assisting the committee and any members who are able to help to grow LCCA’s membership.

Once again, LCCA will have a drawing at the September Membership Meeting and give the winner $500 cash! To be in the drawing, all you need to do is sponsor a new LCCA member before September of this year. If you know of a prospective member, call Heidi for all the information you need to sign them up. If they join, you are eligible to win the $500


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Market Survey Says? -

The results are in and LCCA Contractors have spoken – the construction industry is stagnant – or worse. Last year 35.6% of all respondents rated the state of the industry Stagnant with another 40.0% reporting growth. This year 38.5% said it was stagnant and a staggering 57.7% said it was Weak. Here are the other results:

How is your work level compared to the last two years?
  2008 2007
Decreased 
Remained the same
Increased
65.4%
19.2%
15.4% 
31.3%
28.9%
40.0% 

How would you rate the future over the next two years?
  2008  2007 
Pessimistic                
Cautious
Optimistic 
34.6%
63.5%
1.9% 
8.9%
68.9%
22.2% 

Do you anticipate cost increases affecting owners' decisions to proceed on future projects?
  2008  2007 
Yes                             
No
78.8% 
21.2%
73.3% 
26.7%

If yes, what costs are most likely to impact future projects?
  2008  2007 
Wages                        
Materials
Insurance 
3rd
1st
2nd 
2nd
1st
3rd 

How has jobsite safety changed generally in last 10 years?
   2008 2007
Decreased
Remained the same     
Increased
2.2%
22.2%
73.3% 
5.8%
21.2%
63.5% 

How has your safety record changed in the last 10 years?
  2008  2007 
Declined
Remained the same     
Increased
8.9%
22.2%
64.4% 
5.8%
26.9%
50.0% 

How has your EMR changed in the last 5 years?
  2008  2007
Decreased
Remained the same     
Increased
52.0%
9.0%
38.0%
42.3%
23.1%
34.6%

Thank you to those who took the time to participate in the survey. LCCA uses Survey Monkey to conduct its surveys and receives only the tabulated results. Your responses are anonymous. LCCA will continue to ask your opinion to help us make more intelligent decisions on the goals and programs of the association.


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 Upcoming Events
 
Calling All Suppliers & Associates: LCCA Trade Show April 2, 2009 -

LCCA’s Annual Expo and first Annual Car/Truck/Equipment Show will be held Thursday, April 2, 2009, at the new Lake County Fairgrounds. Exhibit information is enclosed, so sign-up today.

New this year is a Car/Truck/Equipment Show for exhibitors and other LCCA members (based on space availability) to show off their “Toys”. “The Car/Truck/Equipment Show combined with the new Lake County Fairgrounds location will add interest and should bring more members to the Expo,” explains Program Chairman Mike Ryan.

Space is limited and will be assigned on a first come, first served basis. If you are interested in exhibiting, give Heidi a call TODAY!! Be sure to mark April 2nd on your calendar and plan on attending and bringing your employees who could benefit from networking.!


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 Labor News
 
Labor Update -

Negotiations BeginUnions and associations are gearing up for 2009 negotiations. According to our records, the following contracts will expire on May 31 and be negotiated in 2009:

Automobile Mechanics, Local 701 - MARBA
Electricians, Local 117, 150, 461, 701 - NECA
Electricians, Local 134 (Chicago) - NECA
Glaziers Local 27
Heat & Frost Insulators, Local 17
Ironworkers, Local 1 - Assoc. Steel Erectors of Chicago
Ironworkers, Local 63 - Iron League of Chicago
Plumbers/Pipefitters Local 501 (DuPage, Kane, Kendall, DeKalb) - PAMCAMI
Teamsters, Joint Council 25 (Including Local 301) – MARBA


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 Legislation
 
Legislative Update -

Blagojevich Impeached & Removed
The State of Illinois moved forward last week following the impeachment, trial and removal of Gov. Rod Blagojevich (D). Within minutes of the removal, Lieutenant Governor Pat Quinn was immediately sworn in as the state’s new chief executive. Construction and Labor groups are hopeful of the opportunity to work with the new governor and legislative leaders.

Ethics/Pay to Play Legislation
Last month, before closing out the 95th General Assembly, the House and Senate passed a key federal funding exclusion to promote compliance with Public Act 95-971 and Executive Order 3 (the so-called Ethics or Pay-to-Play Law). Contractors MUST comply with the new Ethics law which took effect January 1, 2009. Major provisions include:

1) All business entities whose aggregate bids or proposals on state contracts or actual contracts total more than $50,000 annually must register with the State Board of Elections. This requirement applies whether the business makes political contributions or not.

2) All impacted business entities are required to include the certificate of registration with any bids or proposals submitted to a state agency.

3) The business is also required, within 10 days, to send a copy of its registration via mail or hand delivery to each “Affiliated Entity” and “Affiliated Person.”

In the simplest terms, business entities will not be able to make direct contributions to agencies controlled by the governor or to legislators. Contributions to PACs are still permitted, as long as the PAC does not receive 33% of more of its funding from a single business entity. More background information and a downloadable pdf file form is available on the SBE website at:

http://www.elections.illinois.gov/BusinessRegistration/Welcome.aspx?Selected=Business%20Registration

Please call the LCCA office at (847)623-2345 with any additional questions.

2009 Legislative Issues
Route 53 Referendum – As noted in the EVP column, LCCA will take a lead role in advocating passage of the Route 53 Advisory Referendum on the April 7, 2009 ballot.

Capital Bill – With Blagojevich removed from office, it is hoped that a new capital infrastructure improvement and transportation funding bill will be quickly enacted to preserve Illinois’ standing to receive federal matching funds.

Motor Fuel Tax-Surcharge Bill – Beginning July 1, 2009, this legislation would increase the Motor Fuel Tax by at least 8 cents per gallon (some have suggested a surcharge as much as 23 cents per gallon) and must be used only for debt service and capital improvements.

Road Fund Lockbox Bill – mandates that no appropriations from the Road Fund may be made to any state agency (other than the Department of State Police, the Department of Transportation, and the Secretary of State) in FY09 or thereafter and provides that no further transfers may be made from the Road Fund or the State Construction Account Fund to the General Revenue Fund.

Prompt Pay/Retainage Bill – Would limit withholding to not more than 5% retainage on payments earned by contractors and subcontractors, and that upon completion of 50% of the work under the contract, retainage must be reduced to an amount not to exceed 2.5%.

Collectively Bargained Workers Comp – While it is doubtful that the issue will be addressed by the Legislature in 2009, LCCA and other construction groups will again seek introduction of a bill this session. The legislation would simply amend the Illinois Workers Compensation Act by adding, “Any employer or group of employers, and the recognized or certified exclusive representative of its employees, may agree to establish certain binding obligations and procedures related to workers’ compensation.”

If enacted, this law would permit labor and management to negotiate items such as:

  • An alternative dispute resolution system
  • Mutually agreeable panels of medical treatment and vocational rehab providers
  • Light Duty Return to Work Programs
  • Establishment of Safety Committees and procedures
  • Adoption of 24 hour health care coverage plan

Labor is not yet unanimous in their support, but CISCO has been extremely active in promoting labor cooperation in this legislative effort. CISCO is producing an informative video on the issue to educate individual labor unions and - eventually - legislators. LCCA is participating in the funding of the video project and will share a copy of the video with LCCA members after the final edits are completed.

Other Issues – Notices on prevailing wage projects, Pre-notification of mechanics liens on owner-occupied residences, Residential general contractor licensing, electrician licensing, Requiring apprenticeship and training programs for bidders on state building contracts, Reverse auction bidding on public contracts, and Requiring all local governments to adopt building codes.


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 Education
 
LCCA Hosts Apprentice Panel -

The LCCA Education Committee hosted a panel of apprenticeship program coordinators to help students in the Lake County High School Tech Campus Building Trades Program decide what they wanted to do when they graduate. We have put together this panel for many years and it’s a real help for the seniors. This year the following participated:

Bricklayers – Don Walker
Carpenters – Gary Ellis
Electricians Local 150 – Dennis Malec
Laborers – Paul Hoetzer
Plumbers Local 93 – Tom Jennrich

In April, LCCA will conduct interviews of the top Building Trades students and select the very best to refer to you. If you would like to get on the list to employ a Carpenter or Laborer Apprentice next summer, call Heidi at the LCCA Office.


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 Safety
 
LCCA To Participate In Safety Conference -

LCCA will once again have a booth at the 18th Annual Construction Safety Conference & Expo. The conference will be held February 17-19 at the Donald E. Stephens Convention Center in Rosemont. LCCA Safety Committee Members will be manning the booth so if you are going to the conference, be sure to stop by our booth to find out how LCCA can help with your safety program.

Complete conference information can be found on the Chicagoland Construction Safety Council’s website – www.buildsafe.org. And some exhibit space is still available. If you are interested, call Beverlee Carrick at (708) 544-2082 x202.


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 What's New
 
LCCPAC Raffles March Arizona Trip to See Cubs vs. Sox -

It may be January, but here’s your chance to bask in the sunshine and watch the Cubs square off against the White Sox! LCCA is sponsoring a raffle to benefit the LCCPAC. Raffle tickets are just $100 each for the chance to win a March Madness/Spring Training Trip on March 19-21, 2009.

The grand prize includes 2 round trip airline tickets from Chicago to Phoenix, 2 nights lodging at the Marriott Renaissance Hotel & Spa in Glendale, AZ, and 2 Cubs vs. Sox Dugout Field Box Tickets for the March 20, 2009 exhibition game at the brand-new White Sox spring training home - Camelback Ranch Ballpark.

Order your tickets now via the enclosed insert or call the LCCA office for more information. The raffle winner will be selected and announced at the Safety Awards Night/Membership Meeting on February 26th at the Country Squire in Grayslake.


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