MINNESOTA

CEO Report & CommentsIssue At A Glance

CEO Report & Comments 1

Grading and Base Awards 2

New Board Members 2

New Members 4

Calendar of Events 5

Letting Schedule 5

Members in the News 5

Legislative Update 6

Industry Op/Ed Letter 6

Construction Jobs Update 7

STP Graduates 8

AGC OF MINNESOTA | Constructive Comment Newsletter | Published Continuously Since 1926

AGC of Minnesota

MISSIONSTATEMENT

To promote the health and sustainability of Minnesota’s construction industry through professional leadership and

advocacy, with an enduring commit-ment to serve all members with skill,

responsibility, and integrity. Winter 2017 | Page 1

On January 1, I was deeply humbled and honored when our Board of Directors appointed me to assume the executive leadership position as CEO of AGC of Minnesota. I am excited to begin this challenging new chapter of my career with the AGC family, which has been an integral part of my life for nearly 14 years. I want to take the opportunity to reintroduce myself to each of you and to offer you my personal, sincere, and strongly held commitment to build upon the legacy and success of this iconic and enduring organization. Steady, visionary, and principled leadership have been the hallmarks of this organization since its founding in 1919 as the very first chapter of AGC. The relentless pursuit of these leadership ideals has helped position AGC of Minnesota as the premier AGC chapter in the country. These lasting values endure today and continue to propel us forward to the doorstep of our centennial. I am so extremely fortunate in my new CEO role to have succeeded Dave Semerad and to have been privileged to witness and learn firsthand how Dave regularly employed these leadership values for the betterment of the industry. An awesome and awe inspiring legacy is now passed and entrusted to me to honor, nurture, and carry forward. It is both a daunting task and an exciting opportunity. I look forward to the many challenges and great days that lie ahead as we forge a future built upon the solid foundation of history and the dedicated work of many active and engaged members.

STRATEGIC PLANTransition and change are constant forces impacting our lives and as we transition through a

leadership change at AGC of Minnesota and further transition into a new year, there are some exciting developments to tell you about. We have just completed rewriting our strategic plan and are now positioned to enter the future with a guiding document that reflects the values and strategic directions of our Board of Directors and our members. We have listened to your many comments and observations regarding our products and services and have worked hard to reflect in the plan document the values of a changing marketplace, changing learning environments, and changing societal values. A copy of the AGC of Minnesota strategic plan is posted on our website, www.agcmn.org. I encourage you to review it and invite your comments.

Going forward, our strategic plan now serves seven strategic foundations: Safety, Government Relations, Labor and Workforce Relations, Networking, Leadership Education and Training, Marketing, and Community Outreach. Interwoven through each of these core foundations is a commitment to enrich your member experience and increase your

Tim Worke

By Tim Worke

Continued on page 3

Winter 2017 | Page 2

AGC - MNDOT GRADING AND BASE AWARDS

The 2016 Grading and Base Award winners were honored at the Grading and Base Technology Forum, held in December. Winners were recognized in three categories, covering both state and locally funded projects. The awards recognize top quality workmanship, performance, and technical competencies. AGC of Minnesota congratulates the award winners and their gov-

ernment partners on delivering top value to the taxpayers of Minnesota.

Local Agency ReclamationCrow Wing County: CSAH 9 and CSAH 44, approx. 10 miles south of BrainerdBid Price: $1.2 millionPrime Contractor: Anderson Brothers Construction CompanyGrading Subcontractor: Road Reclaimers Inc.

The project consisted of 48,000 square yards of full depth reclamation, included type VI-B geotextile wrap, layers of geogrid, crushed rock, and aggregate base bedding. The plan required 2” of aggregate base placed on the pavement surface prior to reclaiming and added 1” of aggregate base after reclamation operations. Instead, all 3” of aggregate base were placed on top of HMA & reclaimed. In the wetland locations, the design called for a modified lime stabilized aggregate base. This was eliminated and replaced with a triaxial geogrid and 6” additional aggregate base.

Local Agency Grading Freeborn County: CSAH 4, just south of AldenBid Price: $2.6 millionPrime Contractor: Ulland Brothers, Inc.Grading Subcontractor: Brunz Construction, Inc.

The six-mile project consisted of 144,000 cubic yards of common excavation, and 32,000 tons of aggregate surfacing class 2. The asphalt and base were reclaimed then stockpiled/salvaged, the contractor then performed a compacted subcut, and the salvaged reclaim material was placed back and compacted on the subcut.

State Grading SP 5211-59 T.H. 169 from just south of Saint Peter to the north side of MankatoBid Price: $31.5 millionPrime Contractor: The Mathiowetz Construction Company, Inc.

The grade raise was approximately six feet for roadway protection during flooding. Muck excavation was backfilled with SGM Super-Sand. A surcharge was placed, which settled nine feet. The contractor chose to use reclaimed material. Finally, a stream diversion was implemented to protect trout.

NEW BOARD MEMBERS

Heidi GundersonWoody’s Rebar Co., Inc.

Monica KelleyGray Plant Mooty

Mike McNamaraMcNamara Contracting, Inc.

Welcome and congratulations to the newest members of the AGC of Minnesota board of directors – Heidi Gunderson (Woody’s Rebar Co., Inc.), Monica Kelley (Gray Plant Mooty), Mike McNamara (McNamara Contracting, Inc.), and Heather Wicklacz (Shaw-Lundquist Associates, Inc., representing the Construction Leadership Council). Their terms began January 1. Thank

you for your service to those leaving the board: Jim Blaney (Blaney & Ledin), Mike Cairl (Ryan Companies US, Inc.), Jim Dockstader (Enebak Construction Company), and Mike McGrath (MG McGrath Inc.).

Heather WicklaczShaw-Lundquist Associates, Inc.

Winter 2017 | Page 3

CEO REPORT AND COMMENTS

membership value by incorporating more technology and technology tools into each of our product and service offerings, along with embracing and engaging more diverse audiences and diversity inclusion opportunities. The world is constantly changing and evolving around us. The demands and opportunities brought to bear through technology must be better integrated and accommodated, while diversity and inclusion efforts present untapped opportunities for the growth and continued strength and success of your businesses and workforce.

MARKETING AND BRAND IDENTIFICATIONAnother change you will begin to see over the coming months is a new look and feel to our brand and image. A new generation of leaders has entered the industry, signaling a demographic and workforce shift of values, which presents both exciting challenges and unsettling change. These new professionals crave technology and choose to learn and engage in the workplace in very different ways than our industry has traditionally valued and practiced. This cultural change is clearly present and will be revolutionary to the industry. Anticipating those forthcoming changes, AGC too must change if our organization is to maintain relevancy and continue to add value for members. It is my hope and vision for AGC that we are always well-positioned to meet the ever-changing needs of our members and to continue to be a dynamic and learning based organization distinguished from our peers. The image that an organization projects, especially one as steeped in history as AGC of Minnesota, is complex and multifaceted and has deep-seated emotional value for its members. That image, however, can become dated and less relevant to a new generation if it is not regularly tended to and revised to reflect changing values and ideals. With our 100-year anniversary approaching, the timing is right to review our brand and to update our entire inventory of products and image related tools in a way that will both honor the past and engage the future. The brand redesign will help bring a more consistent and connected image to all of our products and visuals, ranging from improving our website, to our newsletter, and even our electronic communications. It’s an exciting opportunity that will refresh a storied and iconic brand in time to honor the AGC of Minnesota centennial year and all that will be planned in celebration of that significant milestone.

2017 PRIORITIESThe AGC staff will be busy in early 2017 focusing our energy on key activities that provide tangible and direct value to members - professional legislative relations advocacy and coordinated and engaged labor relations services. A newly elected Legislature, with Republican majorities in both legislative bodies, brings new challenges but also another opportunity to deliver unfinished industry priorities, like a comprehensive long-term transportation funding bill and a capital investment/bonding bill. We remain hopeful and encouraged that both can materialize this spring. The AGC Legislative Committee has put forward a slate of 2017 legislative priorities (posted to the AGC website) and we

are looking forward to an active and very busy legislative session. An accounting of those priorities and other legislative session information is provided in this newsletter by AGC staff member Abbey Bryduck.

Highway collective bargaining agreements (CBAs) expire on April 30, 2017. AGC and each of our respective bargaining teams will again be engaging with labor representatives to negotiate fair and competitive agreements that allow you to safely and efficiently run your projects in the least encumbered manner possible. AGC is fortunate to continue to have the leadership and experience of Dave Semerad to guide us through these important negotiations. Dave has agreed to stay engaged with AGC as Director of Labor Relations and to provide labor relations services to members until the staff position can be permanently filled. If you would like to be a member of any of these negotiating teams, please reach out to us and let us know your interest. It is imperative that we have a broad cross section of firms and individuals with diverse industry experience to help negotiate fair and balanced agreements that work for all members. Finally, I want to thank each of you for your support and confidence in my ability to lead this first-class organization. I am thrilled and excited to get started. There are still many of you I’ve yet to meet or with whom I have not had the privilege of forming a relationship. I look forward to those opportunities and value your thoughts and opinions on how to make us a stronger and better association. AGC of Minnesota has always been, and will continue to be, a member-driven organization. You can remain confident that the AGC staff is the best in the country and they hold your interests prominent every day.

I am confident that our best days lie ahead. Now, let’s get to work!

Continued from page 1

2017 AGC Executive Committee

ChairPeter “Chipper” JohnsonHoover Construction Co.

Vice ChairAaron Benike

Alvin E. Benike, Inc.

Secretary-TreasurerKent Peterson

Bituminous Roadways, Inc.

Past ChairKendall Griffith

Mortenson Construction

Winter 2017 | Page 4

NEW MEMBERS

ABM Onsite ServicesChristy Speck, Business Development Manager965 Decatur Avenue N.Golden Valley, MN 55427612-247-0908www.abm.com

Company profile: ABM Janitorial specializes in highly customized janitorial services. The Special Services division focuses on assisting construction companies deliver a spotless product to their clients.

Allied Blacktop CompanyPeter Capistrant, President10503 - 89th Avenue N.Maple Grove, MN 55369763-425-0575www.alliedblacktopmn.com

Company Profile: Allied Blacktop Company performs asphalt repair and maintenance for commercial, municipal, and multi-housing customers.

Boyer Trucks, Inc.Steve Millhouse, Sales & Marketing Director2500 Broadway DriveLauderdale, MN 55113651-638-5804www.boyertrucks.com

Company Profile: Now in their 90th year, Boyer Trucks, Inc. is able to serve AGC members with everything from F-150s through the heaviest quints and super dumps in the state.

IronPlanet Matt Anderson, Minnesota Territory Manager545 Hansack Avenue SEBuffalo, MN 55313763-244-5025www.ironplanet.com

Company Profile: IronPlanet is the largest online marketplace for the disposal of heavy machinery.

Minger Construction, Inc.Luke Minger, President620 Corporate DriveJordan, MN 55352952-368-9200www.mingerconstruction.com

Company Profile: Minger Construction, Inc. is engaged in the installation of new, and the repair of existing, underground utilities, including site utilities, manhole rehabilitation, lift stations, temporary conveyance, tunneling, excavation, and site work.

Newton BondingNick Newton, President5620 Memorial Avenue N., Suite EStillwater, MN 55082651-342-1480www.newtonbonding.com

Company Profile: Newton Bonding provides surety and fidelity bonds to individuals and all types and sizes of businesses, including bid and performance and payment bonds for new/startup contractors. Specializes in bonds in probate and civil court matters.

Otto Transfer, Inc.Liz Morris Otto, CEO3665 - 57th Street SEDelano, MN 55328763-972-3868www.ottotransfer.com

Company Profile: With over 70 years of experience in moving freight, Otto Transfer, Inc. is a woman-owned company with expertise in moving oversized and one-of-a-kind freight anytime, efficiently and cost-effectively. Let us haul your full, partial, and expedited loads throughout the United States and Canada.

Pioneer Asphalt Technologies, LLCKeith Baker, PresidentPO Box 130212St. Paul, MN 55113651-760-8368

Company Profile: Pioneer Asphalt Technologies, LLC is a certified DBE firm specializing in full-depth reclamation and onsite production of base materials.

S & R Reinforcing, Inc.Christine Strohmayer, President44216 Tame Fish Lake RoadAitkin, MN 56431651-468-1355

Company Profile: S & R Reinforcing, Inc. performs installation of reinforcing steel, steel erection, structural steel, and bridge construction.

WENRICH PD Construction LLCWendy Sullivan, Principal5955 Golden Valley Road, Suite 201Golden Valley, MN 55422612-408-7000www.wenrichpd.com

Company profile: A woman-owned company, WENRICH PD Construction LLC performs selective interior demolition as well as the removal and installation of temporary and permanent chain link fencing.

Winter 2017 | Page 5

Constructive Comment Newsletter is published for members of Associated General Contractors of Min-nesota, a statewide trade association of general con-tractors, specialty contractors, and affiliated suppliers involved in the construction of buildings, highways, heavy industrial, and municipal utility projects. Founded on Wednesday, December 11, 1918, by six contractors meeting at the Minnesota Club in St. Paul, AGC of Minnesota is a chapter of The Associ-ated General Contractors of America and American Road and Transportation Builders Association (ART-BA).

Telephone: (651) 632-8929Fax: (651) 632-8928Toll Free: (800) 552-7670Website: www.agcmn.org

AGC NEWSLETTER CALENDAR OF EVENTS

AGC STAFF CONTACT INFORMATION

Tim Worke - Chief Executive Officer651-796-2185 | cell - 612-910-0193tworke@agcmn.org

Merry Beckmann - Director - Member Services651-796-2187 | cell - 612-910-5298mbeckmann@agcmn.org

Abbey Bryduck - Director - Highway/Heavy & Government Affairs651-796-2194 | cell - 952-250-1681abryduck@agcmn.org

Renee Horsman - Office Manager651-796-2181rhorsman@agcmn.org

Dave Semerad - Director - Labor Relations651-796-2182 | cell - 612-709-8503dsemerad@agcmn.org

Doug Swenson - Director - Safety & Field Training651-796-2192 | cell - 612-910-1737dswenson@agcmn.org

Dave Waggoner - Accountant651-796-2184dwaggoner@agcmn.org

Denise Woods - Director - Communications & Events651-796-2186 | cell - 612-201-5501dwoods@agcmn.org

APRILDATE EVENT TIME AGC CONTACT 12 Spring Member Meeting, 5:00 – 8:00 Denise Woods Hilton Airport, Bloomington

JULYDATE EVENT TIME AGC CONTACT 12 Summer Member Meeting 11:30 – 1:30 Denise Woods Duluth location TBD

A schedule of upcoming AGC events is also available at www.agcmn.org.

2017 MNDOT LETTINGS

February 24March 24April 28May 19

June 9June 23July 21August 18

September 22October 27November 17December 15

MEMBERS IN THE NEWS

Douglas Trangsrud was promoted to vice president – construction materials engineering at American Engineering Testing, Inc. Kristen Yates has been promoted to office manager of the firm’s Rapid City office and will also continue in her role as a geotechnical project manager.

Opus Design Build, LLC promoted the following: Luke Albers (senior project manager, Minneapolis), Tom Becker (vice president, Minneapolis), Chris Cromos (senior project manager, Milwaukee), Leith Dumas (vice president, Minneapolis), and Jeff Smith (vice president, Des Moines).

Northern Technologies, LLC acquired South Dakota-based American Technical Services, Inc., with offices in Sioux Falls and Rapid City.

The following AGC members will serve on the 2017 Board of Directors for the Minnesota Builders Exchange: Malia Oesterreich, RMS Rentals (vice president), Beth Nde, Adolfson & Peterson Construction (treasurer), Wally Peterson, Cemstone Products Co. (director), Lauren Colbeth, Mortenson Construction (director), Patrick Sims, Adolfson & Peterson Construction (director), and Erik Molin, Molin Concrete Products Company (director).

Winter 2017 | Page 6 Continued on page 7

LEGISLATIVE UPDATEAbbey Bryduck, Director – Highway/Heavy & Government Affairs

The 90th Minnesota State Legislature convened Tuesday, January 3. Republicans control the Minnesota House by a healthy margin of 76-57, while the Senate has a razor-thin margin of 34 to 33 members, with the Republicans in control. Although the Legislature is Republican dominated, the Governor’s office continues to be held by Democrat Mark Dayton, and Minnesota state government

finds itself again in split-party control. This structure essentially gives the Democrats veto power through the Governor’s office, but measures that pass the Senate must be carefully negotiated with either bipartisan support, or solidarity between party ranks to pass.

The House and Senate have started off quickly, moving legislation for federal tax conformity, a health insurance premium assistance bill, and a REAL ID implementation bill. Members from all caucuses still claim that transportation and infrastructure investment remains a priority. Governor Dayton has released a substantial bonding package, as has the Senate Bonding Chair, Senator Dave Senjem (R-Rochester).

AGC has joined a business/labor partnership to encourage passage of a transportation funding bill that includes the Minnesota Chamber of Commerce and the Minnesota Business Partnership, as well as the Laborers, Operating Engineers, and Carpenters. The text of a joint StarTribune op/ed piece appears below. This effort continues to be AGC’s top legislative priority for the 2017 legislative session.

At this point in the session, agency and issue overviews dominate the agendas, but the pace will pick up once the February forecast is released. To receive periodic legislative updates via email, send an email to Renee Horsman at rhorsman@agcmn.org with the word Subscribe in the subject line. The Weekly Update will continue to include a summary of relevant information.

This is a tumultuous time in our state and nation. Many Minnesotans are increasingly frustrated with our political process and the lack of progress on critical issues. Like them, we believe that in Minnesota, we can and should do better. We need to put our differences aside and find common ground to get important things done.

Long-term transportation infrastructure funding is one issue where this can and should happen in the 2017 legislative session. Our elected leaders have repeatedly kicked the can down the road in recent years, while our infrastructure has continued to deteriorate and the cost to fix it has gone up. Both parties share the responsibility for inaction, and both have too eagerly participated in the often intense political blame game.

That is not acceptable to any of us anymore. Business and labor do not always agree, but there’s no disagreement between us when it comes to support for a logical, fair, and responsible compromise that will substantially address our long-term transportation infrastructure needs.

The Legislature and the Governor should pass a long term transportation infrastructure funding bill early in the 2017 session that has the following components:• All transportation-related taxes currently being collected in the general fund should be dedicated to transportation infrastructure (biggest example being sales tax on auto parts and rental cars).• Projects must be delivered efficiently. More must be done for less.• Use trunk highway and general obligation bonding to support investment in our transportation infrastructure.• Allow for innovative public/private project funding.• Adjust the depreciation schedule of passenger vehicle license tab fees.• Allow metro counties to lead in funding the build out and operation of the metro transit system that is outside the network of regular bus routes.

If our approach is implemented, around $6 billion will be available to start to address our transportation infrastructure needs in the next 10 years. We recognize our proposal isn’t perfect, and it will not solve all of our infrastructure problems. But it will make a sizable, sustained investment at a time when the long-term commitment of additional resources is desperately needed.

Some will say it doesn’t go far enough and will advocate for large, new tax increases. Others will cry foul at directing money from the state’s general fund to transportation infrastructure. We expect and welcome debate and are interested in other good ideas. But we cannot let that discussion and debate be used to sidetrack and politicize the issue and stop something from happening.

Hundreds of thousands of families across Minnesota who rely on good-paying construction jobs deserve a future. Our best and brightest companies that depend on quality infrastructure to do business in our state require a solution. Thousands of small business owners who make their living building this state need some certainty if they are to survive.

January 11, 2017

Winter 2017 | Page 7

CONSTRUCTION JOBS UPDATE

Doug LoonPresidentMinnesota Chamber of Commerce

Charlie WeaverExecutive DirectorMinnesota Business Partnership

Tim Worke CEOAssociated General Contractors of Minnesota

John RainesExecutive Secretary-TreasurerNorth Central States Regional Council of Carpenters

Todd PufahlPresidentLaborers District Council of Minnesota and North Dakota

Glen JohnsonBusiness Manager-Financial SecretaryInternational Union of Operating Engineers Local 49

Continued from page 6

Iowa, Minnesota, and Wisconsin are in the top 15 of U.S. states for their percentage of construction job growth for December 2015 to December 2016. North Dakota leads the 50 states in its percentage of job loss for this same 12-month period. Minnesota leads the region in size of workforce, accounting for 29% of the six-state region workforce total, and 53% of regional construction job growth for Decem-ber 2015 to December 2016.

Source: AGC of America, from Bureau of Labor Statistics, U.S. Department of Labor

State December 2015 December 2016 Number Gained/Lost

% Gained/Lost Rank (out of 50)

Iowa 82,900 89,800 6,900 8.3% 3Minnesota 115,800 125,100 9,300 8% 4Wisconsin 112,700 116,700 4,000 3.5% 15*South Dakota 23,500 24,200 700 3% 19*Nebraska 50,000 49,100 -900 -1.8% 37North Dakota 32,300 29,900 -2,400 -7.4% 506-State Totals 417,200 434,800 17,600 4.2%*mining and logging combined with construction

Everyone in Minnesota depends on our transportation system. Transportation infrastructure is a core function of government, one of the few things the Minnesota Constitution specifically says government must provide for the people. A sound and dependable transportation network touches every citizen.

Our elected leaders must put their differences aside to solve this problem. They must show leadership for the people of this state. The time for excuses and political gamesmanship is over. We must put Minnesotans first and make 2017 the year to pass a long-term transportation funding package.

Winter 2017 | Page 8

ASSOCIATED GENERALCONTRACTORS OFMINNESOTA, INC.Capitol Office Building

525 Park Street, Suite 110St. Paul, MN 55103-2186

www.agcmn.org

AGC BOARD OF DIRECTORS

CHAIRPeter “Chipper” JohnsonHoover Construction Co., Virginia

VICE CHAIRAaron BenikeAlvin E. Benike, Inc., Rochester

SECRETARY-TREASURERKent PetersonBituminous Roadways, Inc., Mendota Heights

PAST CHAIRKendall GriffithMortenson Construction, Minneapolis

DIRECTORS

Wes AndersonBMO Harris Bank, Minneapolis

Greg BoelkeVEIT, Rogers

Jeff CarlsonPark Construction Co., Spring Lake Park

Heidi GundersonWoody’s Rebar Co., Inc., St. Paul

Michael HeadrickPCL Construction Services, Inc., Burnsville

Duane HendricksEgan Company, Brooklyn Park

Rachel Kanz (CLC Representative)Cemstone Products Co.

Monica KelleyGray, Plant, Mooty, Minneapolis

Mike McNamaraMcNamara Contracting, Inc., Rosemount

Heather Wicklacz (CLC Representative)Shaw-Lundquist Associates, Inc.

CHIEF EXECUTIVE OFFICERTim Worke

STP GRADUATES

Four more students have graduated from the Supervisory Training Program (STP), bringing the total for our chapter to 256 since the program’s inception in 1989. For information about the program, contact Renee Horsman at

rhorsman@agcmn.org or 651-796-2181.

Justin Blatter (Carl Bolander & Sons Company), Jake Halonen (PCL Construction Services, Inc.), and Jason Dufeck (McGough) with instructor Brian Baar (McGough)

Joe Simmonds (Carl Bolander & Sons Company) with his final instructor, Brian Hage (Hage Law, PLC)