LCCA members participated in an informative discussion of planning for road and public works projects in Lake County at the April 22^nd Membership Meeting at Independence Grove in Libertyville. The program featured presentations by Lake County Division of Transportation's assistant county engineer Al Giertych and Applied Technologies’ Frank Tiefert with Lake County Public Works Chief Engineer Gordon White.

Government Affairs Committee Chairman Steve Dalbec and the Auction Task Force are hard at work rounding up auction items for the LCCA PAC Rock & Roll Auction. More donations are needed. Requested items include construction materials or services, sporting event and concert tickets, golf items, TV’s and electronics, lawn and garden equipment, restaurant gift cards, cases of fine wine, etc.

If you or one of your suppliers and vendors has an item to donate for the event, please contact Steve Dalbec at (847)409-1500 and steved@concordway.com. Or please contact the LCCA Office – (847)623-2345 and tpenno@lcca-il.org.

In the previous Newsline, LCCA informed readers of proposed changes to the Illinois Preference Act introduced within House Bill 6349 by Rep. Daniel Beiser (D-Alton). Beiser’s initial proposal within House Bill 6349 and amendments to the Preference Act changed the Preference Act’s requirement of “only Illinois residents” to “90% Illinois residents” on state funded construction projects.

This small proposed change would have put most LCCA contractors into compliance with the residency requirements of any new Preference Act, but it met with significant opposition. Rep. Beiser’s latest proposal leaves the 100% residency requirement, but adds the phrase “or entity” anywhere the residency requirement appears in the Preference Act. According to labor attorneys, this “or entity” phrase puts any employer with an office in the State of Illinois in compliance with the residency requirements of the Act – regardless of the residency status of its employees.

Rep. Beiser is attempting to resolve a problem that several LCCA members have encountered with individual local governmental entities which bend the law to include contractor compliance with the Preference Act in public works bidding requirements.

Are some governmental entities using the flawed Preference Act in bidding requirements to redline or exclude union signatory contractors from the bidding process? Perhaps. But contractor response has been to attest to the residency compliance and force the entity to prove otherwise (because the Illinois DOL won’t).

With this Catch-22, LCCA floated the idea of repealing the Preference Act last year. Now, Rep. Beiser is attempting to address the concerns of LCCA contractors and other border area businesses. LCCA will keep members informed of any progress on Rep. Beiser’s latest proposal and House Bill 6349.

Contractors’ lobbying efforts prevailed last week when House Bill 6112 – a bill to extend prevailing wage to haulers of aggregate materials – was held up in the Senate Labor Committee, where it is not expected to advance this year. The Illinois House passed the measure 71-43 on March 18, 2010.

This ill-conceived measure would have increased the direct costs associated with all public construction. Estimated projected increases to the State of Illinois exceeded $35 million annually. Additionally, the initiative would have impacted aggregate producers that operate truck fleets or provide cartage for customers by requiring certified payrolls. Producers would have been required to track loads trucked to public works projects. Bottom line – passage of this bill would mean fewer schools built, fewer miles of roads built and fewer bridges replaced.

Supporters of this effort will likely reintroduce the bill in 2011. LCCA and its legislative partners within the Illinois Construction Industry Committee (ICIC) will be ready to fight this effort again next year. For 2010, however, Prevailing Wage for Aggregate haulers is likely dead.

On Friday May 7, 2010, the Lake County Contractors Association (LCCA) will sponsor a 3-hour seminar on Unfunded Pension Liability with attorney Mike Duffee of Ford & Harrison LLP. Mr. Duffee will discuss the basics of unfunded pension liability and what it means to participating employers and other topics including:

• What is withdrawal liability?
• How does it occur?
• Do your union pension funds have it?
• Who has to pay for it and when?
• How is it calculated?
• How can it be avoided?
• Why should you care if your plan has withdrawal liability?

The seminar will also cover the requirements of the new federal Pension Protection Act - what it means when plans go from "green" to "yellow" to "red" and its impact on contractor's liability under that pension plan.

If your firm is considering succession planning, buying or selling a business or terminating a union affiliation – You Cannot Afford To Miss This Seminar!!!

Join Mike Duffee & LCCA on May 7, 2010, at Key Lime Cove in Gurnee, IL for “an eye opening and information packed morning." Coffee, juice and pastries will be served. The cost is just $40 for LCCA members and TAP (Trade Association Partnership) employers. Same-day on-site registration will cost $50. A registration form is enclosed/attached for your use or go to www.lcca-il.org/events to register on-line and pay by credit card. If you have any questions or require additional information, please contact the LCCA Office – (847)623-2345.

In 2009 the Obama administration announced its intention to enhance OSHA enforcement efforts with increased penalties and inspections. Details of many draft enhanced enforcement effort were leaked to many area construction safety professionals last week, but have not yet been finalized. In addition, OSHA headquarters in Washington have directed local OSHA offices to not renew existing Employer Alliances and Voluntary Protection Programs (VPP’s). For example, Abbott’s national OSHA Alliance agreement expired last fall and has NOT been renewed by OSHA.

LCCA faced the same situation as its Alliance agreement with OSHA lapsed two weeks ago. Safety Committee Co-chair Fred Rodheim and LCCA EVP Tim Penno lobbied OSHA liaison Jake Scott to at least grant some informal arrangement in place of the former Alliance. Jake Scott took LCCA’s request back to the Chicago North OSHA office in Des Plaines.

Last week OSHA Area Director Diane Turek intervened and renewed the LCCA Alliance through 2012. She cited the excellent partnership efforts within the LCCA Safety Committee, the Annual Safety Awards, the Annual LCCA/Abbott Safety Day (please see attached June 10, 2010 Safety Day registration form) and LCCA’s well-rounded safety classes as reasons for renewal.

The LCCA Board of Directors is proud of the association’s highly-valued and increasingly rare Alliance with OSHA. For at least the next 2 years, LCCA members will truly benefit from this renewed partnership.