Happy New Year and welcome to the Lake County Contractors Association 2006!  We are already off to a running start.  Last month, under the able facilitation of Sandy Dowty, the Board of Governors and Committee Chairs held a Strategic Planning Session to identify our goals and objectives for the year. Our top ten goals and initiatives for 2006 are:

Improve relations between labor unions and members – Not only do we have very important negotiations slated for this year, the Labor Committee, chaired by David Henderson, will be expanding their agenda to work on many other issues relating to labor and management/labor relationships.

Increase members market share – We are creating a new committee this year to improve opportunities for members to get involved in local projects.  The Economic Development Committee will look for ways to increase the local market for construction services and make sure members are involved.

Increase political activism to provide tools to seek legislative help with local and state contracting problems – Last year was a good year for the Government Affairs Committee, operating under the able leadership of Chairman Steve Dalbec.  They were instrumental in getting a design/build law passed in Springfield and very effective in the creation of the Route 120 Corridor Coalition.  This year holds many opportunities to pursue the needs of our members in the political arena.

Promote & improve safety on the jobsite – Year after year the Safety Committee does an excellent job in safety awareness, education and training.  We recognize the importance of safety and want to keep it in the forefront of our services to the membership.  A special thanks to Chairman Fred Rodheim.

Provide networking opportunities, both internally for members and externally with like groups – It is extremely important to keep in touch with other associations.  The Program Committee, chaired by Rick Grabowski, will be working on ways to create opportunities to get together with other associations to facilitate more open communications and exchange of ideas.  We will also try to expand the networking opportunities within our own membership.

Promoting construction as a career and assist apprentice programs to meet future needs – Our industry suffers from a lack of new recruits.  The Education Committee, chaired by newly appointed Tim Staples, along with the Labor Committee, will be joining forces to investigate ways to create interest among young people looking for excellent job opportunities and finding ways to get them into the trades.

Develop model compliance programs for affirmative action, sexual harassment and others – With all of the new requirements and existing regulations related to human relations in the workplace, the Association is interested in providing a primer for our members to help them with compliance.  The Professional Services Committee, chaired by Bill Zeigler and Lou Brydges, will be looking into this area.

Simplify getting member questions answered – The LCCA is a great resource for members when they have questions.  Members should use this resource, and we want to make it easier to use.  The Education Committee will be working on this initiative.

Develop a Public Relations Program to increase association name recognition in the community – The Lake County Contractors Association is very important to its members, the community, and the industry.  We want to make sure people know this and in so doing, raise the prominence and respect of our membership. This mission rests in the capable hands of Gary, Heidi, Lisa, and Terry, our LCCA staff.

Have fun – The construction industry has become a high stress industry and we have forgotten how to stop and smell the roses. We need to have a little fun to get through the tough times. This will be the goal of all committees and Boards to make sure you have some fun this year.

Our other committees will be working hard with their important and ongoing issues.  They are the Conference Committee chaired by Mike Ryan, the Finance Committee chaired by Lyle Ehlers, the Membership Committee chaired by Micky Day, and the Winter Workshop Committee chaired by Allan Pickus.  A sincere thank you to all of our hardworking committees and staff!

We are looking forward to a very eventful year.  The ten initiatives listed above are by no means all we will be working on.  Your staff, boards, and committees have dozens of other very important issues to handle as well.   Your help and enthusiasm is exactly what the association needs to develop these programs.  If you haven’t been involved before, please give it a try!

President Mike Henderson has appointed the following dedicated members to head up LCCA committees in 2006. 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.

Conference Committee – Mike Ryan, H.H. Holmes Testing Laboratories – The Conference Committee is responsible for planning the annual Winter Conference. This includes selecting destinations, planning programs and promoting attendance.

Economic Development – As a result of the Strategic Planning session last month, LCCA is creating a new committee to find ways to increase members’ market share. This will include working with other groups to increase the market for construction services and making sure that LCCA members are bidding for the work.

Education – Tim Staples, Camosy, Inc. – The Education Committee is active in member employee development, providing 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 Truth in Employment in Springfield, to County Board makeup locally, all politically controlled issues are their focus.

Labor Policy - Dave Henderson, Jos. J. Henderson & Son – 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 - Micky Day, DK Contractors -– 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 – Rick Grabowski, Pickus Construction & Equipment – This committee is responsible for all LCCA meetings – Membership Meetings, Golf Outing, etc. They select 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 in meeting their safety goals.

Winter Workshop - Allan Pickus, Pickus Construction & Equip. – LCCA offers a 10-14 day Winter Workshop to a sight-seeing destination. This committee handles all arrangements for the trip.

As this is being written, the temperature outside is in the teens and more cold weather is predicted. It’s a good time to be thinking about joining LCCA for the Winter Conference in Marco Island, Florida - March 3-8, 2006, where it is in the low 70’s today and warmer weather is on the way!

You can check out the pool at the Marriott Marco Island Resort, which is hosting the Conference, on the web at http://web.naplesnews.com/webcam/mmpool. The lens is a little dirty from the hurricane but you can still see people enjoying the warm temperatures. And you can see the real thing by just registering at www.lcca-il.org/events. What a great way to thank a key employee for a great effort – and he might learn something to be even more productive next year! Remember, we only have 20 guaranteed rooms. Pre-registered so far include:

Julie Berger & Mark Chamberlin, Berger Excavating
Karen Johnson & Peter Tobin, Roughneck Concrete
Drilling & Sawing
Don & Sheila Mors, Pipe Freezing Services, Inc.
Scott Nelson & Todd Nelson, H.H. Holmes Testing
Margery Newman & Robert Buege, Ogletree
Jonathan Pease & Amy Cox, J. Pease, Inc.
Wayne Pratt, Oasis Business Group, Ltd.
Don & Joanne Robison, Waukegan Steel Sales, Inc.
Mike & Liz Ryan, H.H. Holmes Testing Laboratories
Tim & Mikey Staples, Camosy, Inc.
Mike & Penny Temple, Mechanical, Inc.
Bill Zeigler, Zeigler & Associates
Gary and Sandy Dowty, LCCA

 If you have any questions, call Heidi at the LCCA Office or Chairman Mike Ryan, H.H. Holmes Testing Laboratories. The cost is just $1,125 per person double occupancy and includes:
• Five nights (double occupancy) at the Marriott Marco Island Resort
• A poolside Opening Reception
• A Final Dinner Party
• Two days of seminars featuring Wayne Pratt, Margery Newman and Bill Zeigler and seminar materials.
• All taxes, tips and gratuities

You can register (deposit) online at www.lcca-il.org/events .

Next year LCCA will offer Unit 7 – Accident Prevention and Loss Control of the Associated General Contractors (AGC) “Supervisor Training Program.” The seminar will be offered over three days: January 12, 13 & 14, 2006.

Our lead instructor will be Wayne Pratt, Oasis Business Group. Assisting Wayne will be Fred Rodheim, Abbott Laboratories; Scott Johnson, Kelso-Burnett, and Gary Coleman, CCSC. The course will be offered at the College of Lake County.  You can register online at www.lcca-il.org. Mark your calendar and plan to take advantage of this unique training opportunity. 

LCCA’s Education Committee is pleased to offer “Developments In AIA Contracts and Construction Law”.  Contractual shifting of risk among construction participants is common today.  General contractors, sub-contractors, and architects are impacted.  This seminar will help you understand the common components of today’s construction contract.  The next contract you sign, you will better understand the responsibilities you have accepted and those you have transferred.  Controlling your contractual exposures will continue to be part of your business plan. 

The law offices of Hinshaw & Culbertson, and the risk management firm of Thilman Filippini will present materials.  Both enjoy a seasoned track record in the construction industry. 

The seminar will be presented at the Country Squire, Grayslake, Illinois, beginning at 2:30 and will conclude at 5:30pm.  The monthly membership meeting will follow at 6pm. 

This is the first of a 2-part Seminar.  The 2nd seminar will be on February 26, also preceding the Membership Meeting. The 2nd Part will focus on property exposures & builders risk. 

Topics covered in January include:
• Additional Insured Status
• Primary & Non-Contributory
• Completed Operations
• Kotecki Waiver
• Owners & Contractors Protective (OCP)
• Primary/Excess Coverage
• Insurance Carrier Change of Coverage

To register go online at www.lcca-il.org/events. 

     Candidates for the March 21 Primary Election are set and several contested races are on the ballot. The hottest contest will be the 8th Congressional District where 7 Republicans are hoping to oppose Melissa Bean in November.

     In the 31st State Senate District long time incumbent Adeline Geo-Karis has a Republican challenger. The 87 year old Geo-Karis has served in the Senate since 1979. Sue Simpson will oppose Geo-Karis in the Primary.

     In the State House races, only four districts have contested Primary races. And Kathy Ryg and Eddie Washington are unopposed in both the Primary and November elections at this point.

     Six of the 16 County Board Districts have contested Primaries. District 2 has the most interest with both Democrat and Republican contested primaries. Incumbent Randy Whitmore has two other Republicans running against him.

     In some races, the primary is THE election with the winner probably unopposed in the fall. District 4 pits incumbent Republican Brent Paxton against Jack Senter. District 8 finds Bill Durkin (son of the former Mayor) running against incumbent Bob Sabonjian (son of the former Mayor).  In District 22 Democrat Arnie Silberman is taking on incumbent Carol Spielman.  District 7 also is of interest because the Democrat candidate taking on Republican incumbent Steve Carlson in the fall is Kurt Anderson, a Business Representative with IBEW Local 150.

    The only Referendum on the ballot will be Fox Lake Grade School District #114 proposal to issue $3.75 million in bonds for “a working cash fund.”

    Non-Presidential Election years usually have low voter turnout but this year may be different. With the contested Governor’s race at the top, and two interesting Congressional races in Lake County, voter turnout might be greater than expected. For a list of candidates please call the LCCA office. 

Prevailing Wage Fines Increase – Gov. Blagovich has signed into law Public Act 094-0488 that will increase penalties for violations of the Prevailing Wage Act. Currently, if you are found to have violated the act, you would be liable for the underpayment, any costs associated with collection and an additional 20% of the underpayments for the Department of Labor and 2% as punitive damages for the employee. Effective January 1, if a second violation occurs, the IDOL cut increases to 50% and the employee’s to 5%.

     And if that is not enough to get your attention, the Act also provides for debarment for 4 years if you have two violations within 5 years.

Truth in Employment –The aim of this bill is to curtail “1099 workers” that are classified as Independent Contractors, but should be classified as “employees.” According to union representatives, there is much abuse of the Independent Contractors rules by contractors who are looking to get around union contracts (and wages and benefits) by paying tradesmen direct and claiming they are “Independent Contractors.” They will pay whatever the market will allow and send them a “1099 Form” to account for the expense. 

     Last month we asked for reactions to this bill and how it might impact your operations. We have received no responses but continue to look at possible problems.

     • One of the questions we have not been able to answer is whether this bill would effect  corporations and partnerships. Both are excluded from the IRS Independent Contractor rules but may not be exempt from this bill.
     • Another concern is how a violation of this provision would justify criminal prosecution after just one violation – in addition to debarment and civil penalties.
     • Owner Operators will be affected by this bill. How can an Owner Operator be “free from control” when typically you tell them where to deliver, when to deliver and even how to unload. This might be considered control which would mean the company hiring the Owner Operator might be required to list them as an employee.

     We have much more we need to know before we support or fight this bill. Hopefully we can get these answers in the near future. If you would like a copy of the bill, just call the LCCA Office.

Ragnar Benson Construction has been selected by Lowe’s for construction of a new regional distribution center in Rockford, Illinois. The 1.4 million square foot facility will be located at Rt. 20 and Montaque Road.

LCCA member Ragnar Benson LLC is not the Ragnar Benson PA that has appeared in several ENR articles. Ragnar Bensen PA is a subsidery of The Austin Company that has declared bankruptcy. Ragnar Benson LLC was owned by Austin but is no longer affiliated with them and is now part of William Charles Company as reported in the June Newsbrief.

Diego Robies, Manusos General Contractors, has received a Safety Incentive Award from Chicago Area LECET. The award is presented to an employee of a randomly selected signatory contractor who has worked 250 hours in a quarter with no OSHA Recordable or loss time accidents. Winners receive a $250 gift certificate.