HAPPY NEW YEAR!

Believe it or not, it’s now 2005. It doesn’t seem that awfully long ago that we were worrying about the start of the “New Milennium” and what kind of electronic havoc we would be facing when the computers started a new century. People were buying generators, stockpiling gasoline, and keeping extra cash at home in case the ATM’s didn’t work. Somehow, we made it through with a minimum of problems.

Those of us who had a good year in 2004 want to hang on a little longer and bask as long as possible in the glow of last year’s successes. Those of us who didn’t have such a good year are delighted to be able to open up a new calendar and give it another try. If bidding activity is any indicator, there should be ample opportunities for us to maintain or improve in the coming year.

The start of a new year is a good time to try to sharpen our focus. Be alert for new opportunities as well as new challenges. Go ahead and try new things but don’t lose sight of what has worked for you historically. Remember that construction is a “Team Game” and the best jobs are those where everyone is on the same team. Do whatever it takes to be sure that everyone knows that your company is serious about safety.

Most of all, take this opportunity to be optimistic. It’s time to roll up your sleeves and hit the ground running. Best wishes for a great year in 2005.

Arthur J. Gallagher
Two Pierce Place
Itasca, IL 60143
(630) 694-5253
FAX:  285-3631
www.AJG.com
ASSOCIATE
Bill Krumm, Bond Manager
Surety & Insurance
SPONSOR: Benes & Krueger

Each year the President, in consultation with the highest authorities available, selects an individual to be recognized as our Governors Award winner. Traditionally, this award has been given to someone who takes their contributions to the association and the industry to new levels. Each may contribute in different ways, but all make an impact on those around them. This year’s winner is no exception.

Rick Grabowski has been involved in every facet of the association serving almost 20 years on the Board of Governors, 7 years on the Board of Directors and was President in 2000-2001. In addition, he has worked very hard on the Labor Committee representing LCCA in negotiations for Laborers Contracts. Grabowski has also been a frequent leader for many Supervisor Training courses over the years.

LCCA and Cingular Wireless are pleased to offer cell phones to LCCA members at a discount price. The program provides a ten percent (10%) discount off the monthly recurring access charge on any Cingular Consumer Region, Cingular Consumer Nation (GAIT) or Cingular Consumer Nation (GSM) rate plans that are billed to an LCCA member company.  Activation fees for new Member Accounts are waived. Member Accounts may purchase accessories for twenty percent (20%) off the non-promotional consumer pricing for such accessories

Cell phones for employees, spouses, kids, etc., that are billed to a home address will receive a 5% discount on any plan listed above.

Features Included on all Rate Plans at No Additional Cost include - Basic Voice Mail, Call Waiting, Call Forwarding, Three Way Calling, and Caller ID.

For more information, or to order or renew your service, call Tod Banks at:

(866) 764-1473

A special thanks to Steve Dalbec, Jos. J. Henderson & Son who negotiated the agreement.

President Mike Temple has reappointed the following dedicated members to head up LCCA committees. A short description of what each committee does is also included. If you are interested in joining any of these committees, just notify the LCCA Office.

Education - Micky Day, DK Contractors – The Education Committee is active in member employee development, hosting seminars and training courses for supervisory personnel. They also work with Apprentice programs and schools to ensure a future supply of quality employees.

Finance - Lyle Ehlers, Boller Construction – The Finance committee is responsible for keeping the association financially healthy. They oversee budgets and advise on investments.

Government Relations - Steve Dalbec, Jos. J. Henderson & Son – Government Relations looks at all things political. From Structural Work Act in Springfield, to Storm Water Management locally, all politically controlled issues are their focus.

Labor Policy - Lyle Ehlers, Boller Construction – Our Labor Policy Committee looks after all labor relations issues – negotiations, grievances, benefit funds and much more. They also meet with local union officials to improve communications and seek solutions to problems.

Membership - Mike Henderson, Jos. J. Henderson & Son – The Membership Committee is charged with building and retaining membership in the association.

Professional Services - Lou Brydges, Jr., Law Office of Louis W. Brydges, Jr. & Bill Zeigler, Zeigler & Associates – Each month, LCCA publishes a Professional Practice Report on an issue of interest to the members. The Professional Service Committee is responsible for selecting topics and writing the articles.

Program & Entertainment - Micky Day, DK Contractors – This committee is responsible for all LCCA meetings – Membership Meetings, Golf Outing, etc. They suggest speakers, locations and other arrangements.

Safety - Fred Rodheim, Abbott Laboratories – The Safety Committee reviews current safety issues and arranges for safety training and other products to assist members meet safety goals.
Winter Workshop - Allan Pickus, Pickus Construction & Equip. – LCCA offers both a 10-day Winter Workshop to a sight-seeing destination and a 4-day Mini-Workshop to a warm resort location. This committee handles all arrangements for both trips.

LCCA member, Patrick Johnson, Moonwatchers, Inc., is making a movie in Lake County and several other LCCA members are helping out. The movie, “5-25-77,” tells the autobiographical story of writer/director Johnson on the day Star Wars opened at the Genesee Theater.

Filming continues in Lake County. Look for a spring/summer release.

Most members of LCCA see just a small part of the entire association. We thought it might be interesting to do some research to see just who LCCA really is. Here are the results:

Who Belongs to LCCA?
Total membership in LCCA is 275 companies including general and subcontractors, suppliers of materials and equipment and associate members who provide professional services.
139 Contractors - 51% of the membership
81 Suppliers - 29% of the membership
55 Associates – 20% of the membership

CONTRACTORS: The Contractor members include almost every possible specialty.
104 Contractor Members are Building Contractors
35 Contractor Members are Highway, Heavy or Underground

44 are general contractors (32%)
95 are subcontractors (68%)

94 are signatory to a MARBA agreement (68%)
45 are signatory to other agreements (32%)

SUPPLIERS: Supplier members cover most contractor needs.
39 provide materials incorporated into the project (48%)
17 sell, rent and/or service small equipment (21%)
17 provide other materials or services (21%)
8 sell, lease, rent and/or service heavy equipment (10%)

ASSOCIATES: And finally we look at our Associate members.
16 provide insurance or bonds (29%)
12 provide legal or accounting services (22%)
10 provide financial services (18%)
17 provide other services (31%)

As you can see, LCCA is a broad based association representing the entire commercial construction industry. This is the result of over 57 years of growth in Lake County.

The LCCA PAC Auction Committee, Chaired by Steve Dalbec, Jos. J. Henderson & Son, is looking for auction items for the PAC Auction scheduled for the April Membership Meeting.
How can you help? Donate auction items and come and bid! If we are going to have an auction, we need auction items. Some you might consider are:

• Construction materials – load of concrete, brick, whatever
• Golf for three or four at a country club or public course
• Sports memorabilia, sports equipment
• Services – accounting, testing, etc.
• Case of wine, good scotch, whiskey, etc.
• Tickets for Bulls, Bears, etc (no little league – no jokes about the Bears and Bulls!)
• Use of vacation condo
• Anything else you can think of that would be unique

And if you cannot think of anything else, cash is always acceptable (make checks payable to LCCPAC).

Auction items donated to LCCPAC, like other political contributions, are not deductible. Please check with your tax consultant for your specific situation. Donated items must have a value in excess of $150. We would like to have donations by March 24. Cash contributions must be made to LCCPAC.

“Planning and Scheduling” – This course will start Saturday, February 19, and cover arguably the most important function of a jobsite supervisor – Planning and Scheduling.

Wayne Pratt will once again be the lead instructor and Rick Grabowski, Pickus Construction & Equipment, will assist Wayne. You may register online at www.lcca-il.org/events.

The class meets: Saturday February 19th  and 26th from 8:00 a.m. until 5:00 p.m. and Wednesday, February 23rd in the new Technology Building at the College of Lake County Grayslake Campus.

Congressman Mark Kirk is promoting a plan that will build 588 new homes for military families in Glenview and Ft. Sheridan. The economic impact of this project would exceed $225 million and become one of the largest federally-sponsored economic development programs in the state.

The unusual twist to this proposal is the project would be a partnership between Glenview, Highwood and Highland Park, and the Navy. The new homes would replace existing substandard housing currently owned by the federal government.

A key for the local communities would be a substantial increase in local taxes. Currently, the federal government pays $322,168 to local school districts in Glenview and Highwood/Highland Park. Under the partnership, school funding and new funding for other services would increase by over $1,000,000 because the local community would now be able to tax the owner of the housing since it will not be the federal government.

Developers have been solicited by the Navy and bids are due January 15 to demolish 258 existing homes in Glenview and 329 homes in Ft. Sheridan to make way for the new housing. The Navy will fund the demolition, infrastructure improvements and buildings. The developer will be expected to pay a portion of the cost in return for a 50-year lease and the ability to lease the new homes to military families. The Navy will estimates 95% occupancy during the term of the lease.

But there is a potential problem. The communities seem to be unsure whether this is right for them and unless they agree to the partnership, the program will not go forward as currently planned.

At the October Membership Meeting, Lt. Commander Janet Merriman reviewed the status of current construction and plans for future construction at the Great Lakes Navy Base. The “Boot Camp” side of the base is undergoing an $840 million transformation that was detailed at the 2000 October Membership Meeting. Currently 13 projects are complete, three under construction and 9 still in the pipeline.

Scheduled for 2005 are:

• USS Chicago Recruit Barracks – Clark/Blinderman/Knight
• A Processing Day Barracks – Negotiating currently
• Infrastructure Upgrades - $75-$100 million

Scheduled for 2006 are:

• Two Barracks - $30-$50 million each
• Atlantic Fleet Drill Hall - $15-$25 million

Scheduled for 2007

• Three Barracks – Probably an option to the 2005 Barracks contract.

Future contracts include:

• Five “A” School Barracks on the Mainside - $30-$50 million each
• New Galley on Hospital side - $7-$15 million
• Laundry/Dry-Cleaning Plant
• Energy plant upgrades
• Other repairs and remodeling projects.

It looks like the Navy will continue to be a good construction customer well into the future. Lt. Commander Merriman did stress that due to the war in Iraq, funding might be delayed and timetables adjusted. But the plan is going forward.

The many fees that Gov. Blagojevich raised at the start of his term may be rolled back. In a lawsuit filed by the Illinois State Chamber, Judge Patrick McGann ruled that the fees violated the state constitution. Since many of the 300 fees that the Governor raised impact contractors, the industry should get some relief when the ruling is final.

Judge McGann found the fees illegal because the State Constitution requires that fees charged by the state be for the purpose intended. Blagojevich raised many fees to twice what is needed to administer a program and then diverted the excess to the general fund to balance the budget. The state has announced plans to appeal the ruling but if the Chamber wins on appeal, it would potentially do more for Illinois business by setting an even broader precedent.