Nassau Acknowledges Payment Woes to Heavy Construction Industry

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February 14, 2012 Nassau Acknowledges In This Issue • Nassau Acknowledges Payment Payment Woes to Heavy Woes to Heavy Construction Industry

Construction Industry • Yarossi: Look at ROI on Vows to make necessary reforms infrastructure $$ • NYS Thruway Authority & NYSDOT Release List of Qualified Bidders for New Tappan Zee Project

• LICA’s NYS Government Infrastructure Summit is Only a Month Away!

• CFK Hosts 7th Annual Winter Beach Party Fundraiser

• Lincoln’s Birthday, Washington’s Birthday and Presidents’ Day Holiday Schedules

• bid results

It’s no secret that Nassau County, like the rest of the nation, continues to face tough economic times. County government owes the Long Island construction industry approximately $20 million for county projects that range from road repair and paving to emergency bulkheading that kept the North Shore intact after a nor’easter. Many construction companies are now at risk because they have spent millions for men, 150 Motor Parkway material and equipment to fulfill their end of the county’s contract with no payment in Suite 307 sight from Mineola. Hauppauge, NY 11788-5145

This issue was put before elected officials during the Long Island Contractors’ Association (LICA) Nassau County Local Government Summit addressing the crisis head on and seeking an immediate solution from the leaders in the room. (Continued on next page) Tel: 631.231.LICA • Fax: 631.231.4291 • www.licanys.org • [email protected] 2 February 14, 2012

Mangano’s candor

Introducing Nassau County Executive Ed Mangano, LICA’s Executive Director Marc Herbst acknowledged the tough job the County Executive faces in dealing with a broken County government. “If you look at the history of most public officials, you look at their record and ask what was the defining crisis their administration faced and how did they deal with it? Here, in this County, we know the Administration doesn’t face just one challenge for judgment. This Administration turns over a new rock every single day and a new challenge arises, a new problem that would probably destroy anyone holding that office. Yet even with all of that, the County Executive still has the integrity, the confidence and the ability to greet us with a smile and fight for us.”

County Executive Mangano spoke bluntly to the crowded room of construction professionals, recognizing that the process by which contractors get paid is flawed and needs to be fixed.

“As business owners and contractors sitting before me, you certainly know that there is something wrong with our County’s payment process. The amount of oversight in Nassau County has gotten out of control. All we see is oversight, oversight, oversight, delay, delay, delay until it reaches a crescendo and reform is necessary,” stated the County Executive. “We need to streamline the process so your members get paid and the work gets done smoothly and efficiently.”

Following the County Executive’s remarks, LICA’s Chairman James Pratt, III of Pratt Brothers, Inc. stated, “We agree with the County Executive’s effort to streamline the process. That alone will expedite payments.”

Open doors on both sides of the aisle

The Nassau County Legislature’s Presiding Officer Peter Schmitt allied himself with LICA and extended an invitation to contact his office with any problems or issues contractors may be experiencing in terms of payment.

“The Presiding Officer has been LICA’s go-to-guy. Whenever we have a question among all the nonsense that’s been happening, he gets to the bottom of it and we really appreciate it,” said Herbst.

Offering a way to potentially prevent payment issues in the future, County Legislator David Denenberg stressed the need to reinstate quarterly status report meetings where LICA leadership and other representatives from the heavy construction industry can come before the Legislature to discuss the status of each project and any payment problems they may be experiencing.

Barring the door to corruption

Nassau County District Attorney Kathleen Rice also addressed LICA members, explaining that since becoming DA she has created a labor unit whose purpose is to investigate labor-related crimes including prevailing wage fraud, payroll tax fraud and workers compensation fraud. “I wanted to send a message loud and clear to all of Nassau County that we were open for business for all the offenses I just mentioned. Allowing these crimes to go unchecked hurts the taxpayers, hurts the

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Long Island Contractors’ Association, inc. 150 Motor Parkway Suite 307 Tel: 631.231.LICA • Fax: 631.231.4291 • www.licanys.org • [email protected] Hauppauge, N.Y. 11788-5145 3 February 14, 2012

workers and makes it impossible for contractors who play by the rules to compete.

Town and City reports were given by North Hempstead Town Supervisor Jon Kaiman, Town of Oyster Bay Councilman Anthony Macagnone, Hempstead Engineering Commissioner Bill Rockenseis, and Long Beach City Manager Jack Schnirman in which each official offered his analysis of proposed public works projects under his jurisdiction and what our industry can expect in the coming year.

New York State Department of Transportation (NYSDOT) Long Island Regional Director Subi Chakraborti and Nassau County Labor Relations Commissioner Bill Weitzman also attended.

Each speaker at the event was presented with a LICA shovel representing not only the need to dig Nassau County out of the heap of financial troubles but also the need to break new ground on projects that will put the men and women of the heavy construction industry back to work.

Yarossi: Look at ROI on Infrastructure $$ By Paul Yarossi, chairman of the American Roads and Transportation Builders Association (ARTBA) and president of HNTB Holdings

According to the Federal Highway Administration, 37.3 percent of New York’s 17,372 bridges are structurally deficient or functionally obsolete, while 24 percent of our roadways need major repair or replacement. The situation is similar across the country -- yet the nationwide debate over jobs and funding drags on.

Our transportation inventory is aging, and the country needs to be more resilient against natural and man-made disasters. We know globalization is driving a need for better intermodal connections to encourage trade -- that our economy is challenged and job creation is paramount -- and we must meet these demands or fall behind.

The House of Representatives is expected to take action next week on a five-year bill that provides $260 billion for surface transportation programs. The year-on-year annual investment for highways in this proposal is less than the $41 billion approved by the Congress in 2010 and 2011. By comparison, the Senate will soon be considering a two-year bill that would provide $109 billion for the highway and transit programs, and maintain the $41 billion figure for highways.

As the legislative process continues to play out, members of the House and Senate should continue to explore ways to boost investment and prevent job loss. Activity by the House and Senate to move a transportation bill forward is encouraging, but that movement is tempered by appropriation activities that reduce last year’s funding to states by $2 billion, putting 50,000 to 70,000 jobs in jeopardy.

Congress needs to think more about infrastructure’s return on investment, or ROI.

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Meeting the nation’s infrastructure needs is vital to interstate commerce, safety, security and global competitiveness. Our best-regarded presidents supported infrastructure and fully understood its ROI. From George Washington’s survey for the first proposed national road from Maryland to Indiana, to Thomas Jefferson’s efforts to develop the nation’s early canals, to Abraham Lincoln’s support of the transcontinental railroad, our greatest political leaders understood that a strong infrastructure promotes a more nimble military, creates jobs, sparks the economy and advances America’s competitiveness.

Contemporary presidents were also infrastructure proponents. President Dwight Eisenhower signed legislation enabling the National System of Interstate and Defense Highways, the origin of today’s U.S. interstate highway system. President Ronald Reagan signed the Surface Transportation Assistance Act of 1982, and both he and President Bill Clinton increased the gas tax as part of the Highway Trust Fund. All three presidents saw the need to fund transportation, and their administrations moved the economy in a positive direction.

Congress now has the opportunity to move our transportation infrastructure program forward with a new, multimodal transportation plan for highways, rail, air and water.

Healthy infrastructure supports a healthy economy, attracting new employers and improving the overall quality of life in our communities. We consistently see paybacks along our roads, rails and bridges. These dividends -- safe, secure, efficient transportation -- pay us back in our day-to-day lives well in excess of every dollar we invest. Moody’s estimates every additional dollar spent on infrastructure generates a $1.44 increase in gross domestic product.

For these reasons alone, the transportation industry should not accept fewer federal dollars, and the American public should not accept further deterioration of the infrastructure they rely on. People are willing to pay when they know what they will get in return. In fact, more than 70 percent of local infrastructure funding has passed in the last five years.

In an era of limited resources, the demand for true infrastructure investment remains high. It’s time to bring all forms of funding, financing and technology-based tools to the table. We need to keep moving forward, working diligently to keep America safe, mobile and economically competitive.

The Long Island Contractors’ Association (LICA) is a New York chapter of the American Roads and Transportation Builders Association (ARTBA).

NYS Thruway Authority & NYSDOT Release List of Qualified Bidders for New Tappan Zee Project

The New York State Thruway Authority and NYSDOT released the list of qualified competitive bidders for the new Tappan Zee Hudson River Crossing Project. The announcement marked a milestone in Governor Andrew M. Cuomo’s plan to expedite the replacement of the aging and obsolete Tappan Zee Bridge, an effort that has been bogged down for over a decade.

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Statements of Qualification were received from five design-build consortiums, and four internationally known groups were deemed qualified after a thorough multi-agency technical review. The qualified firms will have an opportunity to bid on the design and construction contract for the replacement bridge. A request for proposals for the redesigned Tappan Zee Bridge is expected to be issued to the bidders in the coming weeks.

The qualified consortiums include: • Hudson River Bridge Constructors (a group including Dragados USA, Inc., Flatiron Constructors, Inc., Samsung C&T, E&C Americas, Inc., and Yonkers Contracting Company, Inc.)

• Kiewit-Skanska-Weeks Joint Venture (Kiewit Infrastructure Co., Skanska USA Civil Northeast Inc., and Weeks Marine, Inc.)

• Tappan Zee Bridge Partners, a Bechtel/Tutor Perini Joint Venture (Bechtel Infrastructure Corporation and Tutor Perini Corporation)

• Tappan Zee Constructors (Fluor Enterprises, Inc., American Bridge Company, Granite Construction Northeast, Inc., and Traylor Bros., Inc.)

After Design-Build proposals are submitted and reviewed, one of the four short-listed consortiums will be selected later this year to construct the new bridge.

Under the “Design-Build” process authorized by the New York State Legislature last year, the private sector competes to offer the most innovative, cost-effective designs for the new bridge. Rather than the state mandating a specific bridge design and construction method, qualified firms compete to bring cutting-edge ideas and technology for the replacement bridge. The design-build process permits an expedited construction schedule compared to traditional state contracting, and offers significant cost savings with less risk to state taxpayers of design changes and resulting cost overruns.

The evaluation of bidder qualifications was conducted by Technical Evaluation Teams drawn from the State Department of Transportation, the Thruway Authority, the Metropolitan Transportation Authority and the Federal Highway Administration. Forty-seven career technical experts in procurement, engineering, environmental analysis, law and finance analyzed the submissions according to criteria including experience in projects of this scale; past performance with a record of quality and completion of projects within budget; project understanding and ability to undertake specific risks related to design-build construction; organization capabilities; key personnel who have successfully managed all aspects of similar projects; environmental compliance; financial capability; and bonding capacity.

Debating for a decade while a bridge fades into obsolesce

Earlier concepts for the Tappan Zee Bridge project have been the subject of public discussion for nearly a decade, and there has been a focused and ongoing public participation process since the re-launch of the project late last year. Numerous public

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presentations and meetings have been conducted by project staff, and state and local officials in Rockland and Westchester Counties have been regularly consulted. Public participation will be heightened at the end of February during hearings on the Draft Environmental Impact Statement.

“One cannot overstate the role of this Hudson River Crossing to our State’s economy, our transportation system and New York’s future. It has assumed a priority on the Governor’s agenda because he recognizes, as few have, that without a viable bridge crossing, our ability to move people and products will literally come to a screeching halt. Commerce, as we know it, will cease. After decades of planning, study and commentary, New York has no choice but to replace a span whose mission is irreplaceable,” stated Marc Herbst, LICA executive director.

Click here to read the full version of this press release.

LICA’s NYS Government Infrastructure Summit Is Only a Month Away!

The message is finally being heard. Investing in our State’s infrastructure and creating jobs in the construction industry is now recognized among leading elected officials as a top priority. To push the agenda from concept to concrete, LICA members, allies and colleagues are invited to attend a roundtable discussion with two individuals who have much to say about when, where and how infrastructure projects move forward: U.S. Senator Charles E. Schumer and New York State Senate Majority Leader Dean G. Skelos.

Long Island business men and women who recognize the strategic nature of this issue are invited to attend LICA’s annual New York State Government Infrastructure Summit: “Infrastructure Investment for Long Island’s Future” on Friday, March 9th from 8:30am–10:30am at the Fox Hollow, Woodbury.

If you are interested in attending, please click here for more information. Registration fee for LICA members is included in your 2011 annual dues. There is a $50 registration fee for non-LICA members. Please send your response form to LICA’s Manager of Communications Michelle Giametta via fax at 631-231-4291 or by email at [email protected] no later than March 2nd. Sponsorship opportunities are available.

CFK Hosts 7th Annual Winter Beach Party Fundraiser

Contractors for Kids (CFK) is hosting its 7th annual “Winter Beach Party” on Friday, March 2, 2012 from 7:00pm to midnight at the Atlantis Long Island Aquarium & Exhibition Center.

CFK is a not-for-profit corporation founded for the purpose of providing assistance to families in our communities. The goal of Contractors for Kids is to assist children and their families overcome obstacles that have unfortunately changed or have impacted their lives through sickness, injury or death. CFK will be there, whether it is arranging transportation or paying for a room to allow families to remain close during these tough times.

Need a room for the night? Rooms have been set aside for the Hyatt Place East End Hotel (attached to Atlantis). Rooms are on a first come, first served basis.

Become a Sponsor Today! Show your support and choose a sponsorship level that’s right for you. Sponsorships range from the “Parrot Head” package at $10,000 to the “Cheeseburger in Paradise Sponsor” at $1,000. LICA members already sponsoring this event include Gramercy Group, Inc. and USI Insurance Coverage Corp.

No tux or gown necessary, beach wear required! To purchase tickets, sponsorships or journal ads, please click here.

If you wish to pay by check, please mail your payment to Contractors For Kids, 1316 Motor Parkway, Islandia, NY 11749.

Lincoln’s Birthday, Washington’s Birthday and Presidents’ Day Holiday Schedules

Click here to view the LICA/GCA holiday schedules for Lincoln’s Birthday, Washington’s Birthday and Presidents’ Day.

Bid Results on next page

Bid Results **Numbers in red represent the winning bid **Highlighted and bold companies represent LICA Members

Bid Date Project Name Owner Contractor Bid Amount 1/30/12 Seawall Replacement Inc. Village of Laurel Hollow Biltwel General Contractor Corp. $ 79,900 Galvin Brothers, Inc. 122,000 John McGowan & Son 124,000 Jim Longo Inc. 144,872 Amma Construction Corporation 149,000 J. Barwick Landscape & Site Developer 156,000 Allen Industries Inc. 182,900 The Novelli Group 199,822 ALAC Contracting Corp. 272,272

1/31/12 Demolition of Structures @ 533 St. Johns Place Riverhead Fire District L & G Ruggiero Inc. $ 59,900 Carter-Melence 73,000 Condos Brothers Construction 75,700 DeLalio South Fork Asphalt 79,000 Brian Klug Landscaper 84,500 Construction Consultants 84,950 Watral Brothers Inc. 86,735 Danair Inc 88,000 Metro Group of LI Inc. 119,450

1/31/12 Woodfield Ave Streetscape Improvements Town Of Hempstead Planning & Economic Development H & A Contracting $ 84,620 Roadwork Ahead, Inc. 89,420 J Anthony Enterprises 93,925 Concrete Plus 96,500 Olson's Creative Landscaping 99,536 Condos Brothers Construction 103,800 PSL Industries, Inc. 116,325 ALAC Contracting Corp. 123,123

2/1/12 Maintain & Repair Traffic Signals Town of Southampton Johnson Electrical Construction $ 27,736 Hinck Electrical Contracting, Inc. 31,038 Eldor Traffic Signal Contracting Corp. 41,278

2/2/12 Electrical Parking Lot Lighting @ Wilson Tech Ctr Western Suffolk BOCES Madison Avenue Construction $ 74,000 Emerald Electric & Solar 82,600 Kevin Anderson Electric 84,000 Ankers Electrical Service Inc. 89,094 Eldor Electric 107,000 LEB Electric 108,500 Bancker Construction Corp 114,835 Rolands Electric Co. 115,435 QG Mechanical Services 117,400 Bana Electric Corp. 118,000 Mainline Electric Corp 118,721 Relle Electric Corp. 120,520 Palace Electrical Contractors Inc. 127,000 JP Daly & Sons Inc. 132,200 Hinck Electrical Contracting, Inc. 142,950

2/2/12 Polo Stable Restoration - Caumsett State Park New York State Parks & Rec-Long Island Region WGP Contracting Inc. $ 687,043 Rockmore Contracting Corporation 948,000 Galvin Brothers, Inc. 986,000

2/2/12 Stormwater Drainage Improvements for Erland Road Town Of Brookhaven, Purchasing Division PSL Industries, Inc. $ 167,355 Adjo Contracting Corp. 178,832 Norman Kurrass Contractor Inc. 182,635 Darr Construction Equipment Corp. 217,939 Araz Industries 218,540 D F Stone Contracting 222,219 ALAC Contracting Corp. 225,000 Allen Industries Inc. 262,540 Pratt Brothers Inc. 267,762 G & M Earth Moving Inc 297,983 Fort Hill Ind. Inc. 341,497

2/3/12 Rehab CR19, Patchogue-Holbrook Rd Bridge Over LIRR County of Suffolk, Dept. of Public Works L & L Painting Co. Inc. $ 1,053,000 Gibson & Cushman Contracting 1,069,239 Intercounty Paving Associates, LLC 1,079,600 Posillico Civil Inc. 1,081,704 Pratt Brothers Inc. 1,210,775 ALAC Contracting Corp. 1,231,842 Gateway Industries 1,913,234

2/3/12 Rehab CR 97, Nicolls Rd Bridge Over Furrows Rd LIRR & Long Island Avenue Various Cities , NY Gibson & Cushman Contracting $ 1,031,620 Intercounty Paving Associates, LLC 1,226,809 Pratt Brothers Inc. 1,496,694 Posillico Civil Inc. 1,505,790 ALAC Contracting Corp. 1,554,440 GatewayBid IndustriesResults Continued on next 2,768,932 page

2/3/12 Sports Field Electrical Upgrades @ Farmingdale High School Farmingdale Union Free School District Eldor Contracting $ 178,000 Rolands Electric150 Co. Motor Parkway 183,650 Long Island Contractors’ Association, inc. Palace Electrical Contractors Inc. 184,000 LEB ElectricSuite 307 185,000 Tel: 631.231.LICA • Fax: 631.231.4291 • www.licanys.org • [email protected] Relle ElectricHauppauge, Corp. N.Y. 11788-5145 195,448 JP Daly & Sons Inc. 196,270 South Shore Electric 214,320 Telsan Electric 228,826 Commander Electric, Inc. 261,000 Hinck Electrical Contracting, Inc. 402,082

2/6/12 2012 Misc Concrete Repairs on Village Roadways Incorporated Village Of Mineola Roadwork Ahead, Inc. $ 326,200 Valente Contracting 344,720 ALAC Contracting Corp. 345,678 John McGowan & Son 399,000 J Anthony Enterprises 425,150 New York Paving Inc. 438,650 E Cook Industries 503,089

2/7/12 Install Water Mains & Appurteances - North Plandome Rd Manhasset-Lakeville Water District Bancker Construction Corp. $ 723,060 Allen Industries Inc. 768,540 Merrick Utility Associates Inc. 772,975 Roy Wanser Inc. 890,232 Elmore Associates Inc. 1,103,441

2/9/12 Installation of Pavement Markings @ Various Locations New York State Department Of Transportation Safety Marking Inc. $ 5,973,042 Denville Line Painting Company 8,160,438 Bid Date Project Name Owner Contractor Bid Amount 1/30/12 Seawall Replacement Inc. Village of Laurel Hollow Biltwel General Contractor Corp. $ 79,900 Galvin Brothers, Inc. 122,000 John McGowan & Son 124,000 Jim Longo Inc. 144,872 Amma Construction Corporation 149,000 J. Barwick Landscape & Site Developer 156,000 Allen Industries Inc. 182,900 The Novelli Group 199,822 ALAC Contracting Corp. 272,272

2/1/12 Maintain & Repair Traffic Signals Town of Southampton Johnson Electrical Construction $ 27,736 Hinck Electrical Contracting, Inc. 31,038 Eldor Traffic Signal Contracting Corp. 41,278

2/2/12 Polo Stable Restoration - Caumsett State Park New York State Parks & Rec-Long Island Region WGP Contracting Inc. $ 687,043 Rockmore Contracting Corporation 948,0009 Galvin Brothers,F Inc.e bruary 14, 986,0002012 2/2/12 Stormwater Drainage Improvements for Erland Road Town Of Brookhaven, Purchasing Division PSL Industries, Inc. $ 167,355 Adjo Contracting Corp. 178,832 Norman Kurrass Contractor Inc. 182,635 Darr Construction Equipment Corp. 217,939 Araz Industries 218,540 D F Stone Contracting 222,219 ALAC Contracting Corp. 225,000 Allen Industries Inc. 262,540 Bid Results (Continued) Pratt Brothers Inc. 267,762 G & M Earth Moving Inc 297,983 Fort Hill Ind. Inc. 341,497

2/3/12 Sports Field Electrical Upgrades @ Farmingdale High School Farmingdale Union Free School District Eldor Contracting $ 178,000 Rolands Electric Co. 183,650 Palace Electrical Contractors Inc. 184,000 LEB Electric 185,000 Relle Electric Corp. 195,448 JP Daly & Sons Inc. 196,270 South Shore Electric 214,320 Telsan Electric 228,826 Commander Electric, Inc. 261,000 Hinck Electrical Contracting, Inc. 402,082

2/9/12 Installation of Pavement Markings @ Various Locations New York State Department Of Transportation Safety Marking Inc. $ 5,973,042 Denville Line Painting Company 8,160,438

Click here to view Director of LICA Marc Herbst’s Interview with Newsday on January 10, 2012

Long Island Contractors’ Association, inc. 150 Motor Parkway Suite 307 Tel: 631.231.LICA • Fax: 631.231.4291 • www.licanys.org • [email protected] Hauppauge, N.Y. 11788-5145