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AnnualAnnual ReportReport 20112011 Tel: 631.231.LICA • Fax: 631.231.4291 • www.licanys.org 150150 MotorMotor Parkway,Parkway, SuiteSuite 307307 •• Hauppauge,Hauppauge, N.Y.N.Y. 11788-514511788-5145 Annual Report 2011 A retrospective with an eye to the future By Marc Herbst, Executive Director, LICA Rare is the time when one can take a step back from current events and recognize that you are living through history that will be remembered for years to come. The year 2011 has been that kind of interval, with many of us recognizing in “real time” that the region, state and nation are experiencing one of the most difficult and protracted economic periods in generations. For our industry it has required a level of financial discipline that has been nothing less than painful as we see a third of our construction trades on unemployment. Infrastructure spending has ground virtually to a halt with prior federal stimulus money diverted to plug gaps in municipal budgets rather than put to work employing thousands in the construction trades. Big construction projects that require private capital are few and far between, and projections for 2012 would be disastrous were it not for New York’s billion dollar infrastructure plan recently announced by Governor Cuomo, Speaker Silver and Leader Skelos. That plan reflects a new realpolitik in Albany, one that recognizes that the taxpayer is demanding leadership and affirmative public policy. Criticized for being a proposal crafted “behind a closed door,” the critics ignore the politics of paralysis being played out every day in Washington where transportation funds are being held hostage by partisan warfare and the nation’s future is damaged by those seeking temporary political advantage. The nation’s infrastructure industry has learned much in 2011. We have discovered that merit alone won’t win the day. Were that the case, the House Committee on Transportation would have reported out a bill for long term infrastructure funding and thereby allowed states to start the long term planning that is essential to creating the roads and bridges that get commerce and commuters from here to there. We have been reminded that our industry needs to be more aggressive, not less so, in articulating its role in economic recovery. We need to be more combative in asserting the value of infrastructure construction. We need to be more of a presence during the debate for appropriations and we cannot assume that what is obvious to all will carry the day, creating the construction projects desperately needed by a nation in need of recovery. The year 2012 will see Presidential politics dominate the landscape. We intend to make our nation’s infrastructure part of that debate and insist on a literal position plank for those parties that wish to occupy the White House. To do so requires us to be engaged, informed, articulate and fearless in putting forward the simple fact that infrastructure not only puts our members to work but builds the future of America. As an organization committed to building a strong Long Island, you have this group’s pledge of continued leadership at a time of historic crisis. 2 Annual Report 2011 Long Island’s Battle with Mother Nature The last twelve months saw some of the most interesting severe We all know that water expands when frozen and the repeated cycles weather in many years, with an earthquake thrown in for good of last year’s winter created an epidemic of potholes, pushing up measure. Long Islanders endured a brutal winter of record snow and destroying roadways,” explained Herbst. “LICA is proud of our fall and widely swinging temperatures and boarded up the windows members who worked around the clock repairing our local roadways to confront the first major hurricane in over two decades (or feisty and helping to minimize dangerous road conditions for Long Island tropical storm depending on where you lived). residents.” Patching up Potholes Hurricane Irene Battered the East Coast After digging out from under a total of 61.5 inches of snowfall It was bad but it could have been a lot worse. As Hurricane Irene last winter, Long Islanders uncovered a pothole explosion that looked became a memory, the sound of heavy construction equipment moving more like the aftermath of a warzone than that of a harsh winter. into place to dispose of its wreckage could be heard across Long Island, “We call them ‘potholes’ and thanks to the efforts of the LICA emergency it sounds somewhat benign, but response teams. thousands of motorists can attest A day before the storm, as Long Island to the fact that they are damaging, was officially placed under a hurricane watch, expensive and even dangerous,” LICA took action and prepared and positioned stated LICA Executive Director heavy construction equipment in advance of Marc Herbst as we peeked our the storm. A news conference at 110 Sand heads out at signs of spring. “The Company in Melville announced LICA’s combination of relatively mild readiness to respond. temperatures, a steady rainfall, Surrounded by debris comparable to the melting snow and a deep freeze nearly half a million cubic yards of wreckage created a literal explosion of new created by Gloria in 1985, the last significant potholes last winter that were in hurricane that roared through Long Island, serious need of repair.” LICA’s Chairman James Pratt, III of Pratt In an attempt to quickly address the situation, the Long Brothers, Inc. stated, “Once a hurricane departs, the question is Island Contractors’ Association (LICA) worked closely with local always how fast we can assist in restoring power, opening key roads government transportation agencies to ensure that they had the and clearing paths for emergency equipment. These vehicles were the proper vehicles and supplies prepared to deal with the pothole crisis spearhead that started to put things right and continue to represent that erupted on our local streets. Public and privately contracted the type of public-private partnership that is especially effective work crews spent several weeks placing “cold patch,” in potholes that during times of severe weather.” were the most obvious and potentially the most damaging. It was a LICA, which represents some 150 construction firms, put its temporary fix of asphalt at best, since permanent repairs weren’t able member’s inventory of vehicles on a “war footing,” placing them at to be made until the spring when a hot mixture of asphalt can be the disposal of county and town highway departments throughout prepared, laid and set. Nassau and Suffolk. They included some of the most powerful “Roadways that weaken over time begin to form cracks creating payloaders, bulldozers and dump trucks in the region usually assigned pathways for rain water to get into the subsurface of the roadbed. to create roads, bridges and other heavy construction projects. John Duffy of the Operating Engineers Local 138 reassured Long Islanders that the heavy construction industry was ready and able to lend a hand. “Our union members were proud to respond, working with the towns and local governments to make sure debris were removed from our roadways as quickly as possible. Our main priority was to make sure that our roadways are safe and that emergency service vehicles could move through Long Island as efficiently as possible.” Members of the Long Island Contractors’ Association were fully prepared with over 1,000 pieces of heavy equipment including payloaders, backhoes, trucks, trailers, excavators, roll off truck/containers, 6” pumps, tree grinders, mechanic trucks, heavy duty tow trucks, mechanics, loaders, dump trailers, wood chippers, pumps, wheel loaders and plenty of manpower. 3 Annual Report 2011 LICA Recognizes Senator Fuschillo as Infrastructure’s Staunchest Ally LICA will continue to publicly support those public officials who “The quality of our highways, roads, bridges and mass trans- have consistently fought on behalf of our region’s roads, rails and portation systems will determine the fate of our economy, the ability bridges. Top of LICA’s list of “Infrastructure Allies” in 2011 is New to create jobs and generate new investment,” stated Pratt. “Senator York State Senator and Chairman of the Senate Transportation Fuschillo has been a major advocate for road and bridge capital plans Committee Charles J. Fuschillo Jr. who was LICA’s honoree at last and has the drive to make a difference and an appreciation of what is year’s Annual PAC Reception. at stake. In addition, he has been an important ally to our industry LICA Chairman James Pratt, III of Pratt Brothers, Inc., speaking here on Long Island and across New York State.” to an audience of construction trade leaders and industry executives, introduced Fuschillo as an infrastructure ally and a friend to the Advocating a Worthy Cause construction trades. Senator Fuschillo has been a major advocate for alternate “Senator Chuck Fuschillo ‘gets it’ on so many levels,” stated Pratt. funding methods and over the course of the year invited LICA “Over the years he has demonstrated quiet, effective leadership in to participate in several public hearings supporting Public Private Albany at a time when few in that city even understood the word. Partnerships (P3s). He has forged partnerships with his political rivals for the purpose Stressing the importance of P3s, Fuschillo explained that New of advancing public policy. He has long understood that the quality York State can utilize public-private partnerships in order to expedite of our highways, roads, bridges and mass transportation systems will and better fund infrastructure projects throughout the state. determine the fate of our collective future. He knows that thousands As Fuschillo has stated, “P3s enable governments to partner of jobs – and this entire industry – are at risk and that he is in a race with the private sector in the design, construction and financing of against time to do something about it.” transportation project.