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February 10, 2017

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February 10, 2017 Newsletter 2017-06 February 10, 2017 INFRASTRUCTURE, HIGHWAY INVESTMENT PROMINENT IN GOVERNOR’S ECONOMIC RECOVERY PLAN On Wednesday, February 8, Governor Justice delivered his first State of the State Address. Faced with a $500 million budget gap, the governor outlined a plan that called for $27 million in spending cuts and approximately $450 million in tax and fee increases. Highway funding was at the forefront of his speech. Calling bad roads the “800 pound gorilla in the room,” the governor outlined a $2.4 billion to $4 billion road program that will put 45,000 West Virginians to work by completing the state’s transportation system within three to five years. This would be done by a series of new revenue and bonding, including raising the retail gas tax 10 cents a gallon and increasing DMV fees from $30 to $50 annually. The governor’s proposal would also restore the wholesale gas tax to recoup the 3.5 cents per gallon lost over the last three years due to the declining price of gasoline. “If you do this, you’ll see those jobs,” Governor Justice stated. The governor’s budget also includes $100 million for infrastructure and economic development projects. Of the $450 million in tax increases, approximately $300 million will be on businesses. Governor Justice's budget calls for the elimination of the sales tax exemption for professional services, which would affect legal, accounting, engineering, architectural and advertising services among others. Governor Justice's plan also calls for a .2% tax on the gross revenues of businesses in West Virginia. This tax is very similar to the B&O tax that was phased out on all businesses except electric utilities in the 1980s. For a complete synopsis of the State of the State address as it relates to construction, see the Monday, February 13, CAWV Legislative Bulletin. CAWV LEGISLATIVE BULLETINS TO BEGIN MONDAY Starting Monday, February 13, members will receive, via e-mail, the CAWV Legislative Bulletin. It will contain up-to-the-minute information on issues affecting the contracting industry and association members. The Legislative Bulletin will not be included with the weekly Newsletter. In addition to the Monday morning Legislative Bulletins, the CAWV will be sending out Legislative Alerts throughout the coming weeks to members via email. The 2017 legislative session began Wednesday, February 8, and will run until April 8, 2017. Members will also find requests to send letters through the CAWV’s Legislative Action Center, powered by BIPAC. When necessary, the CAWV will provide members with a letter template, and with just a few clicks, a personalized letter or email can be sent. BIPAC also provides a “Find Your Legislator” feature, election information and a refresher on government. Members will be encouraged to contact their senators and delegates on key legislative issues, and instructions on how to do so through BIPAC will be included in Legislative Alerts. Members can access the 2017 Legislative Information Packet, a comprehensive reference tool that includes room numbers for all legislators; seating charts for the Senate and House Chambers; Senate, House and Congressional district maps; photographs and contact information for all members of the Legislature; and, phone numbers and addresses for Congressional representatives. Also included are toll-free telephone numbers and web site addresses for state agencies, colleges and universities. This packet can be downloaded by visiting www.legis.state.wv.us/Educational/INFOPACKET_2017.pdf. MEMBERS EXPRESS OPTIMISM AT MIDYEAR MEETING Thank you to all of those who attended last week's CAWV Midyear Meeting at the Hyatt Regency Aruba and a special thanks to sponsors for helping to make this year’s meeting a success. For those who missed it, the speaker's presentations and list of sponsors is on the website at www.cawv.org/events/midyear-meeting.html. Additionally, for those who attended the event, a brief meeting survey will be sent to help the CAWV Program Committee continue to strive toward providing quality CAWV programming for the future. “This year’s meeting covered a lot of ground in addressing issues affecting our members and our industry,” said CAWV President C.R. Neighborgall. “The division meetings were well attended and there was much discussion on where West Virginia’s construction industry is headed in 2017. Everyone knows it will be a challenging year but I saw more optimism about the future than I’ve seen in quite some time.” The President said that he was encouraged that members were ready to come to Charleston and the West Virginia Legislature to meet with their legislators on highway and infrastructure funding. There was an impressive list of speakers. They included: Greg Burton, BrickStreet Mutual CEO, who spoke on BrickStreet’s expansion with Motorist Mutual; Allan Williams and Lisa Teel who outlined BrickStreet’s discount to CAWV members on the insurance agency’s workers’ compensation program and how contractors’ perception of safety affects a company’s safety record; and Jeff Shoaf, Senior Director Government Affairs, AGC of America, who spoke on how the Trump presidency is or is not changing construction’s legislative agenda. Marty Becker, CEO of QBE Insurance Group headquartered in Australia, outlined five issues that that would change West Virginia for the better, including selling bonds for infrastructure projects. Louie Southworth, Jackson Kelly, recapped the 2016 election and provided an outlook for the 2017 legislative session. Ray Benefield with Impac Universal Fuel Service outlined a fleet fueling program and the many discount programs available for CAWV members through National Purchasing Partners (NPP). Josh Booth, chair of the Young Contractors Forum, encouraged CAWV members to have their young professionals participate in YCF functions, including a February volunteer project to help build a playground for the Ronald McDonald House in Huntington. CAWV Membership Chairman Doug Meeks outlined a new campaign to introduce new members to the association (see related article below). “All of our speakers gave us hands-on information that were good take-aways,” said President Neighborgall. “We will use this information in our own companies as we chart our course of action this year and beyond.” For a synopsis of this year’s information meeting, look for the Mach/April issue of West Virginia Construction News magazine. A special thank you to this year’s Midyear Meeting Sponsors: MIDYEAR MEETING PREMIER SPONSORS Anderson Equipment Company BB&T Carson Insurance Bowles Rice LLP Brick Street Insurance Brown Edwards FastSigns LOC Investment Advisers Mountain State Insurance Agency, Inc. Walker Machinery Company WELCOME NIGHT RECEPTION SPONSORS Adams Trucking & Supply Mountain State Insurance Agency, Inc. All Crane Equipment Rental MVB Bank Anderson Equipment Company Permatile Concrete Products Appalachian Aggregates Potesta and Associates Baker Truck Equipment Company Pounding Mill Quarry Corporation BB&T Carson Insurance Rish Equipment Company Bowles Rice LLP Rollins, Cleavenger & Rollins BrickStreet Insurance Rudd Equipment Company Brown Edwards & Company, LLP Rumble Ready Mix Charleston Steel Company, Inc. Sauls Seismic Daniels Law Firm, PLLC Scary Creek Materials Fast Signs Shamblin Stone, Inc. Ferguson Enterprises Steptoe & Johnson Hendrickson & Long Suttle and Stalnaker iSqFt The Thrasher Group Jackson Kelly TRC Solutions JAMATT, Inc. United National Bank JMD Company USI Insurance Services LOC Investment Advisers Walker Machinery Company Martin Engineering, PLLC Williams Shriver Architects Mead Hunt MEMBERSHIP RECRUITMENT REWARD PROGRAM LAUNCHED AT MIDYEAR MEETING Doug Meeks, CAWV Membership Committee Chairman, announced the launch of a membership recruitment program at the CAWV Midyear Meeting. The program will reward members that recruit new members into the association. CAWV Members that recruit new members will receive a $100 certificate for a new contractor member and a $50 certificate for a new associate member. The certificates can be used for meeting registrations as well as other CAWV events and there is no limit on how many certificates can be used at once. Along with the redesigned membership section of the website, which makes it easier to share information about the CAWV to prospective members, the Membership Committee believes this program will help grow the association. Members will receive a separate email in the near future with more details of the program and information on how to claim your certificates for newly recruited members. If you need more information, please contact Pat McDonald at 304-342-1166 or at [email protected]. CALL TO ACTION: REMINDER- MAKE PLANS TO ATTEND TRANSPORTATION DAY – FRIDAY, FEBRUARY 17 West Virginians for Better Transportation (WVBT) will be hosting “Transportation Day at the State Capitol” on Friday, February 17. Plan to join with others interested in the future of West Virginia’s transportation system and show support for a long-term solution for the state’s roads, bridges and highways. Members are urged to gather at the state Capitol and meet with legislators to help educate lawmakers about the challenges facing transportation across the state. CAWV members are asked to arrive by 9:00 a.m. New security procedures are in place and visitors will have to go through a metal detector. Only two entrances are open to the public. One is the East Wing Entrance on California Avenue at the door closest to Washington Street. The second is the West Wing Entrance at the door directly across from the Culture Center. The program will begin at 10 a.m. Also, WVBT will release a new The Road Information Program (TRIP) report on Thursday, February 16, in Governor’s Conference Room in the Secretary of State’s office. Members should be there by 10:15 a.m. See this week’s Highway Bulletin for complete details. STREAM PROTECTION RULE PASSES SENATE The U.S. Senate voted 54-45 to block the U.S. Department of Interior’s Stream Protection Rule. The bill was sponsored by all three of West Virginia’s Representatives, David B.
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