Back to the Point---Great Editorial About the Need for Some Leadership

One of the people I have had the luck to meet is Andy Berg, the current executive director of the San Diego Chapter of the National Electrical Contractors Association (NECA). I generally agree with his points of view but totally agree his article about electoral leadership. He is asking some hard questions to elected officials and candidates in my beautiful city of San Diego. Unfortunately San Diego is just one example of this absence of leadership. It is a nationwide problem.

One thing that makes me so sick is the pessimism that people pursuing these offices often bring to the public. Negative commercials and mailers all too often distract people and discourage them fr0m participating.

This is the best quote heard in a while:

"Simply campaigning on how bad things are and how they are likely to get worse is not only bad strategy, it also becomes a self-fulfilling prophecy and makes it almost impossible to govern successfully if elected."

I agree with this wholeheartedly. As we are looking for our government to provide the infrastructure and we need leaders that are going to be accountable to the people that elect them and not to "sloaganeers".

The article from Thursday can be found here. and todays follow up can be found here.

California's Budget Deficit Projected to be $16 Billion

I am certain you have read the headlines, that the state is in a little fiscal trouble. It appears as though things are going to get rockier as the budget process continues. Unlike the Federal Government, California has to pass a "balanced budget". This means that revenues must = expenditures. And unlike the Federal Government we can not print money or have a budget that runs a deficit.

While this more than likely will not affect all public works projects in the state, there will definitely be an impact. Governor Schwarzenegger has already propose a hiring freeze and other cut backs that will save $100 million.

Legislative Analysts Office Assessment
The Legislative Analyst's Office serves as as the "eyes and ears" for the Legislature to ensure that the executive branch is implementing legislative policy in a cost efficient and effective manner. (LAO) provided the following assessments of the the Governor's budget.

• There will be a larger budget shortfall

• Structural shortfalls will return

• The Governor's budget fails to set priorities

Transportation Projects Hurt
The fiscal crisis appears to have the largest impact to transportation public works projects. Even though California voters passed Proposition 1B, which provided $19.9 billion in funds the projects may be delayed. And with each year that a project is delayed, "inflation" eats away at the impact these bonds will have at fixing our roads, highways and mass transit.

The LAO reports the following impacts:

• Proposition 1B Projects at Risk of Being Delayed

• Restructuring of Transit Funding Will Likely Delay Projects

• Public Transportation Account Requires Loan to Stay Solvent

As the budget process goes it will be important to stay vigilant and make sure that the funds that are committed to construction are delivered.


The LAO's report can be found here.

California's Prevailing Wages Are Changing February 22nd

California's Division of Labor Statistics and Research (DLSR) will publish new prevailing wage determinations Friday February 22nd. For those that are not familiar with how prevailing wages work, this means that they are going change and more than likely to go up.

For each trade and task on a job site there is a prevailing wage for that activity. What many people do not know is that the prevailing wage is connected to the collectively bargained rate. So nonunion and union workers should earn the same amount on public works jobs. When the new prevailing wage is published, craft workers should be paid the new rate. The applicable section in the labor code is 1773.9(b)(1).

Here is a link to the California Labor Code

Also here is the Frequently Asked Questions (FAQ) about prevailing wages in California.

A little editorial: I am a big proponent of prevailing wages, because California is not a cheap place to live and I believe our communities need a diversity of skills and abilities. If we pay people poorly they will "drive until they can afford to buy." This puts more traffic on our roads and creates communities that are not sustainable. It is also important because these building trades and construction jobs can not be exported. If you are not able or do not want to go to college you should be able to find a way to live, contribute and thrive in your community.

I found an interesting article about "Midwage jobs vanish in Silicon Valley" . I think this underscores the point.

Ok Ill get off of my soap box now.

Roadmap for Small and Emerging Contractor Success

One of the best business development efforts I have ever seen is the Roadmap for Small and Emerging Contractor Success. It is the most comprehensive "roadmaps" I have seen that provides guidance about how to become a successful contractor. The article begins by providing information about how someone, who is working in the construction field as an employee can build a business. One of the projects in the future will be to highlight some of the key knowledge areas the site offers.

It is broken down into four areas:

The Roadmap Steps are divided into four groups:

• Ground Floor—Look Before You Leap

• Second Floor—Make the Right Moves

• Third Floor—Assemble Your Business Team

• Top Floor—Find Your Customers

It was written as a collaborative effort with some of the elected officials, contractor associations and some of the service providers that provide assistance to small businesses. This is an effort that the that the San Diego Procurement Technical Assistance Center or PTAC was involved. Yet another reason to work with them.