Newsletter 2014-15 April 11, 2014 GOVERNOR CALLS SPECIAL
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Newsletter 2014-15 April 11, 2014 GOVERNOR CALLS SPECIAL SESSION TO ADDRESS WAGE BILL, BUDGET ISSUES Gov. Earl Ray Tomblin says he plans to call a special session of the Legislature to correct problems with the minimum wage bill and to address issues with the 2015 fiscal year budget. The session is expected to be in conjunction with the May legislative interim meetings. H.B. 4283, which increases the state’s minimum wage incrementally, from $7.25 per hour to $8 per hour on January 1, 2015 and to $8.75 on January 1, 2016, contained an unintended consequence. As it is currently drafted, the bill prevents West Virginia employers from relying on certain existing overtime exemptions under the Fair Labor Standards Act. The business community, municipal and county governments, higher education institutions and others stated that previously exempt workers will become subject to overtime and maximum hours provisions. Cities and counties alone stated their fire and police budgets would increase hundreds of thousands of dollars. They recommended the governor veto the bill to eliminate the overtime language. Joining Gov. Tomblin in the bill’s signing were Senate President Jeff Kessler and House Speaker Tim Miley. They all pledged to preserve the federal exemptions and overtime provisions when the bill is brought up during the special session. State revenues continue to lag behind estimates. With one quarter left in this fiscal year, the state has a $78 million shortfall in revenues. While personal income tax collections are up, sales taxes are falling behind. (See this week’s Highway Bulletin for State Road Fund revenues). Also, the tax credit which was applied to flex fuel vehicles continues to mount and tax officials won’t know until after the April 15 tax returns come in what the total cost will be. Legislators rescinded the tax credit when it was determined it was costing the state general fund tens of millions of dollars. The governor performed a line item veto on the budget bill, trimming $67 million from the budget approved by legislators following this year’s legislative session. The governor has pledged to restore some of the cuts which will have to be addressed in the May special session. The governor signed 203 bills, including S.B. 373, the bill relating to water resource protection and the regulation of above-ground storage tanks. He vetoed eight bills. CONSTRUCTION UP 29 PERCENT THROUGH FEBRUARY Contracts for future construction in West Virginia in February 2014 were up 25 percent from February 2013, $162 million in 2014 versus $129 million in 2013. Nonresidential construction experienced the largest boost, from $75 million in February 2013 to $108 million in February 2014. Nonbuilding construction was up 37 percent from $27 million in February 2013 to $37 million in February 2014. Nonbuilding construction includes roads, bridges, water and sewer facilities, dams and airports. Residential construction was down 39 percent, from $27 million in February 2013 to $16 million in February 2014. McGraw-Hill Construction provides the following totals on construction activity in West Virginia through February. 2014 2013 Percent Change Nonresidential $232,545,000 $130,096,000 79 Residential 40,872,000 49,608,000 -18 Nonbuilding 75,718,000 90,691,000 -17 TOTAL CONSTRUCTION $349,135,000 $270,395,000 29 WEST VIRGINIA’S CONSTRUCTION EMPLOYMENT HAD HIGHEST PERCENTAGE DECLINE IN A YEAR PERIOD Construction firms added job in 37 states between February 2013 and February 2014, according to an analysis by the AGC of America of U.S. Labor Department data. Unfortunately, West Virginia had the highest percentage decline in construction employment, ranking the state 51 out of 50 states and the District of Columbia. In February 2013, 35,200 were employed in the construction industry in West Virginia. In February 2014, the number is 32,900, a 6.5% reduction. This puts West Virginia with the highest percentage decline, followed by District of Columbia (-5.0 percent, -700 jobs); Montana (-2.9 percent, -700 jobs); Indiana (-2.6 percent, - 3,300 jobs) and New Hampshire (-2.2 percent, -500 jobs). West Virginia also dropped employment from January 2014 to February 2014, 33,000 to 32,900. To see a list of all the rankings, click here. The CAWV has communicated with legislators and the press that the lack of investment in infrastructure projects has a direct impact on construction employment. Funding for highways, bridges, schools and water and sewer systems creates jobs and economic development. The latest U.S. Labor Department figures provide an excellent argument why additional funding is needed for highway and other infrastructure programs. REASONABLE SUSCIPION WEBINAR ATTRACTS SEVERAL MEMBER FIRMS The CAWV held the third webinar in the CAWV Educational Program sponsored by BrickStreet Insurance on Thursday, March 10. The webinar entitled ‘Reasonable Suspicion Testing for Drug and Alcohol Abuse’ was presented by Randy Pauley, Administrator of Employee Screening Programs, Health Research Systems, (HRS). Mr. Pauley was a police officer prior to 2001 when he began working with drug testing programs. He credited his experience as a police officer in elevating his awareness of how important it is to make sure your workforce is drug and alcohol free. Mr. Pauley did an excellent presentation and emphasized that companies must make sure employees are knowledgeable of the drug testing policy they have in place. The CAWV and BrickStreet would like to thank Randy Pauley and HRS for sharing their knowledge with CAWV members. The next webinar in the series is scheduled for Thursday, May 15, at 2:00 p.m. ‘Equipment Maintenance for Mobile Equipment’ will be presented by Terry Taylor, Senior Consultant with IDCON, Inc. An email will be sent to members with registration details one week prior to the webinar. This webinar, along with other past webinars in the CAWV Educational Series sponsored by BrickStreet, will be available on the CAWV website in the near future. CAWV BOARD MEETING MAY 8 AT MARDI GRAS CASINO & RESORT President Phil Weser has called a meeting of the CAWV Board of Directors for Thursday, May 8, at 4:00 p.m. at Mardi Gras Casino & Resort in Cross Lanes. Members are welcome to attend board meetings. Immediately following there will be a reception for all members. Members will receive information on the meeting and reception but please mark your calendars now. “It’s always good when we can get contractors, subcontractors and suppliers together for networking and a little fun,” said President Weser. “I hope everyone can join with the board and their fellow members,” he said. YOUNG CONTRACTORS PARTICIPATE IN CANSTRUCTION The CAWV Young Contractors joined together on Saturday, April 5, to construct a suspension bridge using more than 3,000 cans of food. The Canstruction competition is cosponsored by the American Institute of Architects – WV Chapter and Covenant House. All food is donated to Covenant House’s food pantry upon completion. More information on the event will be featured in the March/April issue of West Virginia Construction News. A very special thank you to our sponsors: BB&T Carson Insurance Travelers BrickStreet Insurance Tri-State Roofing & Sheet Metal Orders Construction Company West Virginia Paving Pray Construction Company ADVERTISE IN WEST VIRGINIA CONSTRUCTION NEWS Advertising opportunities are available in upcoming issues of West Virginia Construction News. The CAWV’s bi-monthly publication reaches a pass-along readership of more than 3,000. The readership consists of building, heavy, highway and utility contractors; engineers and architects; legislators; federal, state and local government employees; suppliers of goods and services to the construction industry; and others directly or indirectly associated with the construction industry. To secure your space, contact Shannon Louk at (304) 342-1166 or [email protected]. Click here for rates. April 11, 2014 **Plans in CAWV Physical Plan Room ^ Plans in Internet Plan Room (IPR) at www.isqft.com # CAWV Listed as plan holder but plans not yet received The CAWV posts all projects announced in the Newsletter along with plans and specifications on www.isqft.com. Users of the service receive real-time updates as details are changed, plans, specifications and addenda are uploaded and bidders added. Users are also able to track projects of interest. The iSqFt Project Identification Number, found below, can be used for fast access to each project. For more information, contact Cheryl Clark at (304) 342-1166 or email [email protected] Date Project Name Contact Information PID# 4/14 Water Tank Painting/Repairs, Anmoore Shawn Spurlock (304) 641-7429 2055534 4/14 HVAC Revisions, National Conservation Training www.fbo.gov Enter Solicitation 2023003 Center, Shepherdstown number F14PS00278 4/14 Parking Garage Construction, VAMC Clarksburg www.fbo.gov Enter Solicitation 2017088 New number VA24414R0130 4/15 **^Second Avenue Bridge Demolition, City of Pentree, Inc. (304) 431-7800 2030815 Fayetteville 4/15 Roof Replacement, Bus Garage, Tyler County Tyler County Schools 2053124 Pre-bid Board of Education (304) 758-2145 4/15 **^Sewer Jetter, City of Kingwood The Thrasher Group, Inc. 2050009 (304) 343-7601 4/15 Re-Roof, McKell Branch Library, Greenup Greenup County Library 2035153 County, Kentucky (606) 932-4478 4/15 **^Addition/Renovations, Eastern WV Bastian & Harris, Architects 2029403 New Community & Technical College, Hardy County (304) 342-2151 4/15 Trail/Parking Improvements, Beech Fork State Civil Tech Engineering 2037479 Park, Wayne/Cabell Counties (304) 757-8094 4/15 Landfill Closure, Marion County Frank Whittaker (304) 558-2316 2013211 New 4/15 Survey/Inspection, Gas Lines, Kanawha County Holly Eades (304) 348-6451 2032921 4/16 **^Jackson County Sheriff’s Office, Ripley ZMM, Inc. (304) 342-0159 2036307 4/16 Storage Building, Monongalia County Schools Kermit Hess (304) 276-0670 2054331 4/16 HVAC Maintenance, WV Public Service Dean Wingerd (304) 558-0468 2047830 Commission, Charleston 4/16 **^Pearl Drive Sanitary Sewer Extension/Lift Charleston Sanitary Board 2045461 Station Demolition, Charleston (304) 348-1084 4/16 **^Stayman Soccer Field, Potomac State The Thrasher Group, Inc.