As I looked at the pictures of the safety award winners in the April newsletter, I was reminded of how important safety is to all of us in this industry. More high quality safety training is available now than ever before and more of us than ever are committed to safety throughout our companies. The large number of our members receiving awards is proof that we, as an industry, are working harder to provide a safe workplace.

This Association has recently signed an agreement forming an "Alliance" with OSHA. Our Safety Committee carefully studied this program and felt that we should be involved. We have included a copy of the document with this newsletter for your information. If you should have any questions regarding this, please contact the Association office.

As we enter the construction "season" and the level of activity picks up, every one of us needs to emphasize safety on all of our jobsites, on the road, and in our shop and yard areas. Training is available through this Association and through a number of other organizations. It is always to your benefit to keep your employees current on safety issues.

I enjoyed handing out the certificates and plaques at this year's Safety Night and I look forward to the opportunity to hand out even more next February.

Let's all focus on a safe 2004!

East Jordan Iron Works, Inc.
310 Garnet Drive
New Lenox, IL 60451
Phone: (815) 740-1640
Fax: (815) 740-1633
MATERIAL SUPPLIER
Tom Drown, Branch Manager
Bob Schmalz, Office Manager
Mark Clark, Municipal Sales
Chuck Trost, Contractor Sales
Sewer & Water Casting and Fittings
SPONSOR: Mike DeNinno, Lake County Grading

Flow-Technics, Inc.
593 N. Williams Street
Thornton, IL 60476
Phone: (708) 877-2600
Fax: (708) 877-2606
MATERIAL SUPPLIER
John F. Carney, President
Michael E. Carney, Vice President
Patrick J. Carney
Pumps, Controls & process equipment for the Municipal & wastewater market.
SPONSOR: Skip McCann, Dam, Snell & Taveirne, Ltd.

Green Mechanical, Inc.
919 Low Avenue
Waukegan, IL 60085
Phone: (847) 263-1908
Fax: (847) 263-3732
CONTRACTOR
Todd Green, President
HVAC Contractor
SPONSOR: Steve Dalbec, Joseph J. Henderson & Son

Grubb & Ellis Management
1000 Milwaukee Avenue
Glenview, Illinois 60025
Phone: (847) 803-1051
Fax: (847) 803-1440
ASSOCIATE
Kathy Ziebel, Property Manager
Property & Facility management; Broker & Leasing Services; Transaction & Consulting Services
SPONSOR: Craig Jones, Blue Boy Portable Toilets

Kohler Rental Power, Inc.
901 Oak Creek Drive
Lombard, IL 60148
Phone: (630) 620-7449
Fax: (630) 620-8557
MATERIAL SUPPLIER
John Van Huis, Regional Manager
Dave Hansen, Project Manager
Providers of temporary power, AC, electric heat & lighting
SPONSOR: Gerry Dumalski, Boller Construction Co.
 
MIDCO (Midwest Insulation Distribution Co.
6512 Elm Street
Union, Illinois 60180
Phone: (815) 499-2758
Fax: (847) 923-4009
MATERIAL SUPPLIER
Daniel J. Jarecki, President
Jason B. Lewis, Project Sales Coordinator
Mary M. Correa, Territory Sales Manager
Commercial Insulation
SPONSOR: Gerry Dumalski, Boller Construction Co.

Nelson Insulation Co.
366 Hollow Hill Drive
Wauconda, IL 60084
Phone: (847) 526-8333
Fax: (847) 526-8347
CONTRACTOR
Mike Eschenbaum, Sales Asbestos/Abatement
Scott Stanfel, Sales
Ted Christ, Firestopping
Mechanical, HVAC & Plumbing Insulation, Fire Stopping and Abatement (Asbestos)
SPONSOR: Dave Culligan, Althoff Industries

Petersen Excavating, Inc.
35845 Barberry Lane
Gurnee, IL 60031
Phone: (847) 623-3010
Fax: (847) 623-3010
CONTRACTOR
Brad Petersen, President
Willie Petersen, Vice President/Safety Director
Excavation, Rolloff Service and Demolition
SPONSOR: Pat Kirschhoffer, Kirschhoffer Truck Service

Ryan Incorporated Central
P.O. Box 206
Janesville, WI 53547
Phone: (608) 754-2291
Fax: (608) 754-3290
CONTRACTOR
Patrick W. Ryan, President
Adam S. Ryan, Vice President
Larry G. Hill, Operations Manager
Jay A. Ellis, General Superintendent
Charles T. Heidt, Project Development
Cheryl M. Demtow, Safety Officer
Excavating Contractor
SPONSOR: Scott Nelson, H.H. Holmes Testing Laboratories

Washington Mutual
555 E Townline Road #22
Vernon Hill, IL 60061
Phone: (847) 573-3360
Fax: (847) 573-3372
ASSOCIATE
Lynette Wall, Sr. Sales Consultant
Steve Hill, Sr. Sales Consultant
Michael Schier, V.P. Sales Manager
Mortage Lending Banking
SPONSOR: Mike Ryan, Meyer Materials

The LCCA Board of Governors held a full day Strategic Planning Session last month to set some goals for the future. Louis Cusimano, Cusimano & Associates, San Antonio, Texas, was retained to facilitate the session.

After evaluating the progress towards meeting the 2002 goals (mixed at best), the Governors were asked to look at refining the goals to achievable actions and then refocus the association to achieve these goals. As you might suspect, labor issues were the greatest concern and attracted the most discussion. But the concern went farther than just improving contracts negotiated by MARBA. Local relationships and problem solving were high on the list of concerns. The Labor Committee, chaired by Lyle Ehlers, Boller Construction Co., was assigned the task of developing a plan to get results.

The second area that rose to the top was coalition building. In fact, LCCA is currently involved with many coalitions including:

• MARBA (for labor negotiations)
• ICIC (for legislative issues)
• CISCO (for labor relations outside negotiations)
• AHEAD (for work to prevent the Structural Work Act)
• Lake County Partners (to promote economic development locally)
• Citizens for Better Transportation (to improve transportation in Lake County)

But the Governors are concerned that there is not enough member participation in the coalitions. A special Task Force was established to look at the coalitions we are currently involved in and develop more member participation. The Task Force, to be chaired by Mike Henderson, Jos. J. Henderson & Son, will also look for issues that might be effectively addressed by the formation of a coalition.

The final issue that was identified was Membership Inclusion. Getting members involved in LCCA committees is a great challenge. We need to make sure that all members are heard from. In addition, the Governors are concerned that not enough young people are participating in LCCA events. Mike Henderson and the Membership Committee will be addressing this goal.

In 2002 employee benefits accounted for over 42% of an employer's payroll cost, reports the U.S. Chamber of Commerce.  That represents a 3% increase over 2001 levels, the study concludes.  In surveying 372 firms from across the nation, the Chamber found that workers receive an average of $18,000 in benefits in addition to their base wage.  Of course, medical related costs claimed the biggest chunk of the 'benefit pie', at 15.2% of total payroll cost, or an average of $6,277 per employee.  In addition to healthcare, employers on average paid out another $4,970 in vacation and other paid leave as well as$2,634 in retirement.

The most common employer benefits include health & life insurance, paid vacations & holidays as well as retirement contributions.  According to Chamber Executive VP, Bruce Josten, "Despite rising costs, employers continue to offer a broad array of benefits to their workers.  These higher costs are being paid voluntarily by employers and demonstrate a commitment to employees and to maintaining a strong workforce."

by Margery Newman, Ogletree Deakins

For more than a year now, the U.S. Congress has been engaged in a partisan debate over regulations proposed by the U.S. Department of Labor (DOL) which would revise the federal Fair Labor Standards Act test used to determine whether an employee is an executive, professional, or administrative employee exempt from overtime pay.  The final regulations have not yet been implemented, but in anticipation of that event, on April 2, 2004, Illinois became the first state to exempt itself from the new, proposed DOL overtime regulations.

The bill responsible for this exemption, Illinois Senate Bill (SB) 1645, was signed into law by Governor Rod Blagojevich on April 2, 2004, and effectively undercuts the changes proposed by the DOL.  Essentially, the bill maintains the definitions of exempt executive, administrative, and professional employees in effect before the DOL first issued its proposed revisions to the exempt status regulations.  The new law, however, does adopt the increased salary level test proposed by the DOL for exempt status.

The practical effect of SB 1645 is that the criteria used to determine eligibility for overtime pay remain the same in Illinois, without regard to the final regulations that might be enacted by the DOL, with the exception of an increase in the salary threshold.  To be exempt from overtime pay, a professional, executive or administrative employee must be paid at least $425 per week on a salaried basis (increased from $155 per week).  Additionally, that threshold may change because the Illinois law provides that if the final DOL regulations contain a salary threshold higher than $425, Illinois will adopt that higher threshold.

Employers with exempt employees in these categories of work earning less than the threshold salary (currently $425 per week) must increase the salaries of those employees or pay overtime for hours worked in excess of 40 in a week.  Should you have any questions about the new law and its implications, please contact the Ogletree Deakins office or the attorney with whom you normally work.

Forty-three LCCA members and guests had the time of their life during the recent 10-day trip from Bilbao to Barcelona. With perfect weather (high 60's to low 70's and sunshine daily) this truly was a great "Architectural Tour." From the imposing Guggenheim Museum in Bilbao, to the Temple Expiatori de la Sagrada under construction for 118 years in Barcelona, we were able to experience cutting edge architecture through Frank Geary's impressive design for the Guggenheim with its sleek lines, and the naturalist expression Gaudi brought to his structures. Add a few glasses of wine along the way, a great group of travelers who enjoyed more than just the sightseeing, and you have a Winter Workshop.

Special thanks to Chairman Allan Pickus, Pickus Construction & Equipment who, along with the Winter Workshop Committee, selected the site and itinerary, and to Helen Varri, Lake Forest Travel, who makes travel easy and enjoyable for everyone.

If you have not joined us for a Winter Workshop trip in the past, consider going next year.

HB 422 - Wetlands Policy Act - OPPOSE - Sponsored by Rep. Karen May (D-Highland Park) in the House and Sen. Terry Link (D-Vernon Hills) in the Senate, this bill has passed the House and is currently assigned to the Senate Environment & Energy Committee for consideration. A uniform statewide system is required in virtually all environmental programs. This bill creates a patchwork of regulation that will vary depending on the area. In fact the Lake County Stormwater Management Agency could adopt more stringent rules than anywhere else in the state and charge whatever fees they wish. An alternative is available in SB 2130. Call Sen. Link and let him know you are opposed to HB 422.

HB 6983 - Buy American - OPPOSE - This bill, sponsored by Rep. Karen May in the House and Sen. Terry Link in the Senate, would require contractors who purchase materials and equipment for incorporation into a state project, to certify that "manufactured articles, materials, and supplies provided pursuant to the contract or subcontract shall be manufactured in the United States." CDB is exempted from the bill but all other state agencies (IDOT, IEPA, state universities, etc.) are covered. At the very least, this will create a paperwork nightmare as you justify use of foreign manufactured products. Violations may bring debarment for 5 years! The interesting part of this bill is the engineers and architects who spec the equipment are not liable!

Currently the bill is through the House and assigned to the Senate State Government Committee. Call Sen. Link and let him know how this will affect you.

HB 1414 - Mechanics Liens for Rental Equipment - OPPOSED - This bill is an attorney's dream. This bill has been opposed by ICIC since it represents a major expansion of what can be included in a lien from materials and equipment incorporated into the project to equipment that is used and then removed. But the problems with this bill are really technical. Poor (or no) definitions can allow liens for equipment parked at a job and not used, liens by finance companies on leased trucks, and there is no definition of rental value that could lead to liens greater than the value of the contract. The bill has passed the House but has failed to come out of the Senate Committee. It is dead for now.

HB 3994 - Mechanics Lien Act Amendment - NO POSITION - This bill requires contractors to notify the owner before filing a lien against any property of the owner. Introduced by Rep. Kathy Ryg (D-Vernon Hills), the bill would have proven very difficult for many contractors on commercial projects. When we addressed our concerns with Rep. Ryg, we found out the purpose was to protect single-family homeowners against liens that they might not know about. When we explained the hardship commercial contractors and subcontractors would be faced with, she agreed and amended the bill to apply only to single-family residences. Thank you, Kathy!

HB 4883 - Independent Contractor - OPPOSED - Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder or an entity contracting with an unsuccessful bidder (including a labor organization). Proposed by the Carpenters Union, this bill will be a nightmare for contractors at any level who will need to confirm independent status and risk contracts being canceled if they are wrong.

HB 4215 - Mechanics Lien Act Amendment - OPPOSED - Currently contractors are required to file Mechanics Liens within 90 days after completion of their work - to 90 days after SUBSTANTIAL COMPLETION of the entire project. While this might seem attractive to subcontractors, it will probably lead to more retention for even longer periods of time as general contractors protect themselves from third tier claims against subs well after the project ends

HB 3992 - Amends the Professional Engineering Act - Introduced by Rep. Saviano (R- Elmwood Park), this bill would prevent those pesky professional engineers or project representatives from sneaking onto a project without identifying themselves. The bill would require each professional engineer or project representative and their vehicles to be clearly identified. Maybe they should be required to wear purple hard hats and drive pink cars. Do you ever wonder who dreams these bills up? (Editorial comment)