Lake County Contractors Newsbrief
October 1, 2003
Table of Contents

 

October Membership Meeting

Thursday, October 23, 2003

Marty Buehler, LCDOT will be the speaker and will discuss Lake County transportation funding.

Country Squire Restaurant

  • 6:00 Cocktails
  • 7:00 Dinner
  • 8:00 Program

Register

Visit this month's picture page
LCCA Winter Workshop 2003 - Peru/Chile/LCCA Mini-Workshop 2003 - Cabo San Lucas

From the President  by Pat Kirschhoffer

My term as President ends in only a couple of months. The time has gone by so fast! During my two-years, I have had the opportunity to work with some of the best people - those on the Board of Directors and Governors and those on the various committees. My thanks to all of them for their time and dedication to Lake County Contractors.

The Board of Directors and Governors met monthly to make the decisions that have been beneficial to all of the members of our association. These decisions are primarily based on committee input. I want to thank every committee member for the ideas brought to the Board. There wouldn’t be increased benefits for our members without them. We have seven committees and many individuals serve on more than one of them; most have served for more than one term.

We are one of the best Associations because of our committed staff. Gary Dowty, our Executive Vice-President, does a great job implementing the Board’s direction. And he has the employees who can get the job done! Sheila Peterson, our Administrative Assistant, has everything ready for the committee and membership meetings and coordinates most of the membership functions. Lisa Grosskopf, our Office Manager, handles the accounting and prepares the financial reports for all of the Board and Committee meetings. And our newest part-time staff member, Sandy Dowty, helps wherever she is needed. The staff does so much more than we realize. And I thank them for all that they do.

Last, but not least, I thank the entire membership. All together you have made my two years as President very memorable.
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 LCCA News
 
Welcome New Members -

Van Weelden, Inc. 4712 Rieland Drive Crystal Lake, IL 60014 Phone: (815) 444-7552 FAX: (815) 444-7545 Supplier Mark Van Weelden, Sales Manager Trucking Sand & Gravel and Disposal Services. SPONSOR: Mark Tenuta, Tonyan Brothers
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November Trade Show - LCCA will once again sponsor a trade show for Associate and Supplier members in conjunction with the Annual Meeting November 20 at Midlane Golf Resort. Last year we had 25 exhibitors and the event was a great success. Space is limited for the show and last year’s exhibitors will have first choice to participate.

Participation forms will be in the mail soon. If you wish to be a part of this event, start making your plans now and get your Participation Forms in as soon as possible.

For members who are thinking of attending, just two words, FREE DRINKS! So mark your calendar and don’t miss the November Membership Meeting, November 20.
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Nominating Committee Report - Rick Grabowski, Pickus Construction & Equipment and Chair of the LCCA Nominating Committee, presented the following slate of Officers and Directors for 2004 to the Board of Directors at their last meeting:
  • Mike Temple, Mechanical, Inc. - President
  • Mike Henderson, Jos. J. Henderson & Son - 1st Vice President
  • Micky Day, DK Contractors - 2nd Vice President
  • Lyle Ehlers, Boller Construction Company - Treasurer
  • Gary L. Dowty, LCCA - Secretary (Non-voting)
  • Pat Kirschhoffer, Kirschhoffer Trucking - Immediate Past Pres.
  • Jim Pickus, Pickus Construction & Equip. - MARBA Director
  • Tom Hegel, Kelso Burnett - Director
  • Karen Johnson, Roughneck Concrete Cutters - Director
  • Paul Nick, Lincoln Financial Advisors - Director
  • Kevin Piefer, Payne & Dolan - Director (New Director)
  • Mike Ryan, Meyer Material Company - Director

The slate will be presented to the membership at the November Annual Meeting for approval. Don’t miss this change of leadership event.
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Workshop Udate - Last month LCCA hosted a reception for those interested in attending either the Winter Workshop to Spain or the Mini-Workshop to Puerto Vallarta. The turnout was great and the enthusiasm for the trips is contagious. Early registrations for the trip to Spain are very encouraging and it looks like we may sell this out early. Due to bus capacity, we will limit the registrations to just 50. Already on the list are:

  • Dale & Maureen Berger, Berger Excavating
  • Paul & Ruth Falduto, Boller Construction Co.
  • Jack & Dee Frost, Jack Frost Ironworks
  • Dana & Debby Hudson
  • Jeff & Chris Kacer, G. Rabine & Sons
  • Tony & Laura Kresic, Municipal Marking Distributors
  • Marshall & Diane Lowe
  • Ben & Sandy Madey
  • Don & Charlene Manusos, Manusos General Contractors
  • Gregg & Penny Marsh, Acme Brick & Supply
  • Allan & Meline Pickus, Pickus Construction & Equipment
  • Gerry & Lori Riordan

The information and reservation forms for the Mini Workshop are just going out this month. A copy is enclosed with this Newsbrief. But due to the great value and outstanding destination, we are hopeful this trip will also sell out. Just think – 5 days and 4 nights in an all-inclusive beachfront resort just minutes from the heart of Puerto Vallarta, including round trip air – all for just $1,025 per person double occupancy. And when they say “all-inclusive” they mean it! The package includes breakfast, lunch, dinner, unlimited drinks, room service and even poolside snacks. Other association conventions would charge this much just for registration and you pay extra for your hotel, air and for everything when you get there! And did we mention that the average high is 85° with sunny skies?

Make your reservation today. This trip also has a limited number of seats. So first come, first served!
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 Labor News
 
Laborers Going After Landscaping - Recently, the Laborers District Council sent a letter to contractors requesting that contractors subcontract landscaping work only to the two contractors who are listed in the letter. They also list several landscape contractors who “do not have labor agreements with the Laborers’ Chicago District Council.”

MARBA legal counsel and LCCA member, Charles Murphy, Ogletree, Deakins, advises general contractors to exercise caution in this area. Many, if not all, of the 21 firms listed in the letter have agreements with other unions, including Operating Engineers Local 150. Efforts by the laborers to remove a landscape subcontractor from any job by picketing or threats of picketing may create a jurisdictional dispute or a potential secondary boycott for unfair labor practice.

If you have problems in this area, call the LCCA Office.
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CISCO Introduces Built Right Campaign - The Construction Industry Service Corporation (CISCO) has launched a campaign promoting the benefits of contracting with unionized contractors and building tradesmen. The campaign will aggressively make the case for why choosing union contractors ultimately leads to better quality projects that are produced on-time and within budget.

By highlighting training, safety records and experience managing complex construction projects, Built Right makes it clear to architects, developers and other planners that insisting on union construction is a sound business decision.

The program will be implemented in three phases:

  • Phase one includes a new logo and print ads for trade specific magazines;
  • phase two includes purchasing an exhibit booth for use at trade shows and expos;
  • and phase three will include media training for CISCO Board members.

Look for the Built Right logo and start spreading the word!
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Southwest Illinois Laborers Approve New Contract - The Southwest Illinois Laborers District and the Southern Illinois Builders Association have agreed to a new agreement that will provide $4.10 over three years. The contract covers 2,000 laborers on commercial construction, and wages will be about $22.05 with $11.80 in fringes for a total package of 33.85. This is almost 10% less than Chicago District Council rates.
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Los Angeles Laborers Get $4.05 for Three Years - The Southern California District Council of Laborers have agreed to a new contract that will provide $4.05 per hour over three years. The agreement covers 20,000 laborers in 11 counties. Wages range from 20.10 per hour for Group 1 Concrete Laborers to $23.10 for Group 5 Blasters.

In addition to wages, the contract calls for an $11.55 benefit package with a total package of $31.65 per hour for Group 1. This is almost 17% less than Chicago agreements.
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Know Your Contract - This time of year, contractors are laying off employees and many will end up paying more than they need to because supervision does not know the rules for layoffs. For example:
  • OPERATING ENGINEERS – The Heavy, Highway Underground agreement requires “a full day’s pay for the day he is terminated and receive all his wages before quitting time or by Certified Mail postmarked within twenty-four hours after his quitting time (not counting Sunday’s and Holidays).”
  • CARPENTERS – The Carpenters District Council Agreement requires that employees laid off “shall be paid immediately all wages due him to date and he shall receive at least one hour notice prior to 4:30 p.m.”
  • PAINTERS – The Painters District Council 14 agreement provides that if an employee is discharged, “he shall, at the time and place of discharge, be paid seventy percent of the his full wages to and including the day of discharge. The balance of monies due him shall be paid in full at the next regular pay period.”
  • LABORERS – The Laborers District Council Agreement requires employees laid off “shall be paid in cash or check on the job at the time he is laid off or be given a time check calling for four additional hours to cover traveling time. Such additional hours are to be added at the time of giving check and shall be paid on presentation at the office of the employer.”

Make sure you and your supervision know the rules for the unions you employ. It could save you a lot of money.
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 Legislation
 
Governor Cuts $500 Million From Budget - Some fifty-three days into the state's new fiscal year, Governor Rod Blagojevich signed the Fiscal Year 2004 (FY04) Capital Budget into law, but not before making more than $500 million in reductions.

According the the Illinois Construction Industry Committee (ICIC), the Illinois General Assembly in late May approved Senate Bill 1293 as the state's $4.8 billion capital budget for FY04, including $707.8 million in new construction and infrastructure improvements appropriated through the Capital Development Board. In addition to the new projects, SB 1293 also contained re-appropriations for projects begun in prior years that had not yet been completed.

The Governor eliminated:

  • $54.8 million earmarked to purchase property in the Capitol Complex,
  • $35 million for a clean water program in the Lieutenant Governor's office,
  • and $3.7 million in new capital funding for the Illinois Department of Corrections.

According to the Governor's veto message, some $47.5 million in capital vetoes and reductions include repair and renovation to state facilities that can be delayed beyond this fiscal year; $17.3 million in projects that were to be completed by the end of FY2003; and $401.2 million in "technical write-downs" to more accurately reflect the amount of re-appropriation necessary for the new fiscal year.

While the Governor did include reduced funding slated for the completion of correctional facilities at Hopkins Park ($75.8 million) and Grayville ($110.7 million), his spokesperson indicated that the funding may instead be used for the development of other projects in those communities. Legislative action would be required to reallocate the funding for another purpose.
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State Budget Includes $482 Million for Schools - School construction projects will again receive just under $500 million from the Capital Development Fund. In the past, funding for school construction projects -- new schools, renovations, additions or demolition -- has been allocated based on the Illinois State Board of Education school construction program priority list. Currently there are 96 projects totaling $659,557,143 on that list.

According to the School Construction Program guidelines, Chicago Public Schools receive 20 percent of total appropriations, or approximately $96.5 million of the $482.3 million total.

Only three Lake County schools made the list with total project costs just under $17 million:

  • Community C. S. D. 46 (Grayslake) $2,046,950;
  • Grayslake Community H. S. Dist 127 $14,472,552;
  • and North Shore S. D. 112 $176,274.
Since Lake County received only $16.7 million (or just 3.5%) of the total, it is obvious we are not a high priority!
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 Economic Development
 
Chicago to Require License - In reaction to a recent porch collapse, the City of Chicago is considering a new Ordinance that will require a general contractor working in the city to obtain a special license. The license will help the city enforce building codes with penalties and suspensions.

Licenses will be issued in categories with a Class A license permitting unlimited contract size, down to a Class E with a $50,000 single contract minimum. The cost of the license will range from $2,000 for Class A to $350 for a Class E contractor.

Contractors applying for the license will need to provide proof of insurance and a bond payable to the City of Chicago just to cover penalties and fees for violations. All this is in addition to other bonds and insurance you might otherwise be required to provide.

Under the Ordinance it would be a violation to:

  • Submit a bid without a valid license,
  • Do work without or in violation of any permit required by the code,
  • Not allow the City to examine your books,
  • Fail to comply with Workers’ Comp Act,
  • Knowingly allow another person to use the license,
  • Hire subcontractors who lack a license to perform the work they are hired to perform.

Not required to have a license are:

  • Subcontractors working for or under the supervision of any licensed general contractor,
  • Anybody who merely furnishes materials or supplies,
  • Any person licensed by the City of Chicago as a mason contractor, plumbing contractor or electrical contractor.

A copy of the proposed ordinance is available from the LCCA Office.
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