Ohio PHC Contractor, 2014 Issue #3 by Blue Water Publishers, LLC

The Ohio PHC Contractor is the official publication of the Plumbing-Heating-Cooling Contractors of Ohio 20040 Carolyn Avenue Rocky River, OH 44116 800-686-PHCC Fax: 216-393-0095 www.phccohio.org / www.facebook.com/phccohio

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Volume 2014 Issue 3

Advertisers Index AB&I Foundry

American Apartment Owners Assoc.

Bradford White

BrassCraft 31 Champion Pump

FastEst, Inc.

Federated Insurance

Departments: A Message From the President, Jim Haberek 6

Kolbi Pipe Markers

Liberty Pumps

Legally Speaking: Consider Temporary Workers Your Employees! 12

Little Giant / Franklin Electric

Keeping Score: Fraud - It Can Happen to You 14

Metropolitan Industries

17-20

R. L. Deppmann

PHCC of Ohio Local Chapter News 22 PHCC of Ohio 2014 - 2015 Officers and Board 34

Rheem 5 Robertson Heating Supply

2, 3

Saniflo 7 Slant Fin

PHCC National Director of Government Affairs, Mark Riso: The Skills Gap 8

SureSeal 9

Save the Date: 2015 ACCA/PHCC Ohio Convention & Expo 16

T&S Brass

2014 ACCA/PHCC Ohio PAC 21

TACO 10-11

In Memoriam 24

Test Gauge & Backflow Supply, Inc.

Everybody Gets One - PHCC Ohio Membership Recruitment Campaign 24

Turbonics

PHCC of Ohio Benefits Guide 26

Welker McKee

Ohio PHC Contractor is a news magazine produced by the Ohio Association of PlumbingHeating-Cooling Contractors. Articles published in this magazine are the views and opinions of the writers and do not necessarily reflect the views or opinions of the Ohio Association of PlumbingHeating-Cooling Contractors. Publication in Ohio PHC Contractor should not be construed as an endorsement by the Association. Ohio PHC Contractor is the official magazine of the PHCC of Ohio and is published quarterly. News items from Ohio PHCC members are accepted. For information on advertising, contact: Jim Aitkins, Blue Water Publishers phone: 360.805.6474 • fax: 360.805.6475 jima@bluewaterpublishers.com 4

Features:

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

The exclusive benefits from the Industry Partner Program provide recognition to contractors, as well as the public, as a leader in the PHC and HVACR Industry. Income from the Partnership Program makes it possible to improve the overall financial stability of PHCC and ACCA Ohio while supporting companies receive unique advertising and promotional opportunities.

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Brock Restoration Contractors Choice Keeping Score

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Departments

From the President Jim Haberek

hope everyone had a great summer. It just never seems long enough! Throughout the year there are events that we attend with the PHCC that remind us of why we are proud members. In the Northeast Ohio area we have just completed another year of Plumb and Heat the County. This event we share with Co-chairman, Don Van Horn, and the ACCA Group. We visited 50 homes and did free plumbing and heating safety checks in their homes. We were able to make small repairs and alerted the appropriate organizations to help with any larger emergency repairs that the people may need. Each home received a free CO/Smoke detector installed, a welcome bag with additional helpful flyers, an emergency item pouch, coffee mug and a danish! The PHCC/ACCA members really stepped up to give up their time and talent to help the less fortunate. With the help of all the members, their techs and use of their trucks,

associate members, suppliers, the city, county and veteran representatives and all the extra volunteers that participated, we were able to make a difference. I really believe, after this event, everyone walks a little prouder and happier that they could assist others that are really in need of help! To all those that participated – walk proud. Thanks for being a member of the PHCC/ACCA organization and carrying out part of PHCC’s mission to improve our industry and society’s quality of life. We’re getting close to our State Convention in Cleveland!!! March 25-27, 2015. Please let Debbie, Mary or Rocco know if you need help signing up as an attendee, a sponsor, or to have a booth at the convention. I will be attending my first national convention in New Orleans. I hope to see you there! Until next time...

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OHIO PHC CONTRACTOR • Volume 2014, Issue 3

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THE SKILLS GAP ! s i h T in W n a o! t C e v a We we h

By Mark Riso Director of Government Relations PHCC National Association

ly, l a u t …ac

The critical need for career & technical education and professional development

drove from Washington, D.C. to New York recently. It’s a very easy 4.5-hour drive. As I approached New York, the gasoline light in my car lit up indicating that in order for me to reach my destination, I would need to• Trust the light is accurate; • Acknowledge that my car needed gas; and • Take the steps necessary to ensure the car received the gas it requires Well…the United States is on a journey, too. We as a nation are driving toward a destination. Just as the gasoline indicator in my car came on…the nation’s skills gap light has been activated, warning us that we need fuel for future career & technical education and professional development. In order for the nation to reach its destination, we need to sincerely recognize and acknowledge the critical need for career and technical education and professional development and take the steps necessary to resolve the problem quickly or we will run out of skilled workers. The concept as well as the issues involved in the “skills gap” are not hard to understand… in fact, statistically they are quite simple. The nation suffers from chronic unemployment…11 million unemployed with four million jobs sitting unfilled. The nation simply does not have the skilled workers to fill the demand. However, that’s where

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

the simplicities end and the complexities begin. Add to the equation a constant shift in the nation’s labor markets and a sluggish economy that is in a perpetually defensive mode, and the issues of the skills gap begins to take on many, many moving parts. I would argue that at the heart of the problem (and perhaps the chief culprit), is a sense of national unawareness and a lack of national focus and game plan. As an industry, many of the issues we deal with have built-in support and/or opposition…we either favor something or we don’t…we either agree with something or we don’t…we either have friends or enemies. But, when it comes to our concern about training and finding qualified workers, there is no opposition. Again, at the heart of the problem is a sense of national unawareness and a lack of national focus and game plan. The skills gap is a result of many factors including: • a lack of foundational skills in science, technology, engineering and mathematics • unemployed older workers • lack of job training, and • poor career credentialing An overall national game plan to address the skills gap is crucial. [continued on page 11]

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[continued from page 8]

The good news is that there is an answer and the beauty of it is that the members of PHCC as well as the entire plumbing, heating, cooling industry will be part of the solution and will offer an important component to resolve the issue. PHCC, as well as a myriad of industries, are structuring a comprehensive national educational campaign on the skills gap for Congress. There is no overnight fix to this issue but we began to take the first right step in the first right direction at the recent PHCC 2014 Legislative Conference. PHCC’s support for the Carl D. Perkins Act (a program to support the development of academic and career technical skills among secondary and postsecondary education students who elect to enroll in career and technical education programs) was a strategic action which plays into a building national effort to address the many components of the skills gap. As we’ve said many times before, the plumbing, heating, cooling industry has a beautiful story to tell in terms of its great contributions to communities, consumers, local/state/national economies, and the job markets. The fact is that this industry has the ability to not just offer jobs, but careers. This is exactly what is needed to close the gap between skills and demand and is exactly what the skills gap is looking for. We are at the beginning of a national push to educate lawmakers, policy decision makers, business professionals, as well as the American people on the career opportunities of this industry and the ways in which it directly impacts the skills gap. A growing national awareness is beginning as indicated from•

• •

The Administration’s announcement that it will invest in grant programs to bring academic institutions and businesses closer together to help prepare the American workforce for jobs that may otherwise go unfilled; Legislation to offer tax credits to employers encouraging them to hire apprentices; and Continued funding for secondary and postsecondary education for career and technical education.

In addition, PHCC is active within the industry with various programs to help us rebuild the workforce we need to continue to provide safe and efficient plumbing and HVACR services for our country. As one example, PHCC’s involvement with the HVACR Workforce Development Foundation supports projects, programs and partnerships that support the recruitment of the next generation of skilled workers. And, a special PHCC task force will begin work soon on workforce development planning to attract qualified workers to our industry. The skills gap is an extremely complex issue with many moving parts. However, we are moving in the right direction as an industry, and the right direction as a nation.

Volume 2014, Issue 3 • OHIO PHC CONTRACTOR

Departments

Legally Speaking

Bob Dunlevey Dunlevey, Mahan & Furry

CONSIDER TEMPORARY WORKERS YOUR EMPLOYEES!

mployers are now utilizing temporary employees from staffing agencies more than ever before. By utilizing these “Temps” many employers believe that they can escape their traditional employment law obligations toward them. But this is a misplaced belief that can cause substantial liabilities for the unwary employer. Both your company and the staffing agency are jointly liable for most aspects of the employment relationship, including compliance with state and federal labor and employment laws. These types of liabilities are also applicable to employer leasing situations and PEO arrangements – Professional Employer Organizations. Under the most common temporary staffing scenario, the staffing agency selects and provides its employees to your company and pays their wages, payroll taxes, workers’ compensation and other benefits. Your company assigns the duties and responsibilities to the Temps and controls the means and methods for them to perform the work. The staffing agency generally is covered by state and federal employment laws including the anti-discrimination statutes like Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and the Family and Medical Leave Act. But, under most circumstances your company is equally responsible for compliance with these laws. For example, every employer knows it may not terminate a female employee merely because she is pregnant. But some employers employing temporary female workers believe that they may return a temporary pregnant employee to the staffing agency because of problems with the pregnancy without any liability. This is obviously incorrect. Moreover, if the Temp complains about alleged discrimination at your facility, your company, as well as the staffing agency, has a duty to investigate and promptly remedy the situation. It is not just the staffing agency’s problem. The term “joint employers” and “joint employees” have been used in the labor and employment law context for many years. These concepts are well-established. But, because temporary workers are now being utilized extensively, federal agencies are stepping up enforcement against staffing agencies and their clients. For example, on July 15, 2014, OSHA released a memorandum regarding its new Temporary Worker Initiative – a program developed to increase OSHA’s focus on the safety of temporary employees. At relatively the same time, OSHA announced Citations against four host employers and seven staffing agencies attempting to hold them co-liable for safety infractions. OSHA believes that temporary employees are more likely to fall victim to

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

an accident by failing to recognize the hazards and possibly by not receiving the necessary safety training in advance of starting work. Employers inappropriately rely upon the representations of the staffing agency’s salesperson as to the qualifications of the Temps. While the temporary agency may claim that it is providing employees well trained in all aspects of the work to be performed, qualified with respect to safety standards, and physically fit to perform the work, this may very well not be the case. Then, when an accident occurs, the liability rests with your company. Remember, your company has primary responsibility for ensuring that the employees are trained properly under the OSHA standards. The National Labor Relations Board has recently ruled in a landmark decision that the parent McDonald’s Corporation and its franchisees could be treated as joint employers related to an employee dispute between a franchisee and its store employees. The employees were protesting low wages paid by the store and claimed that both McDonald’s and the store are jointly responsible for the store’s unfair labor practices. The joint employer concept is the counterpart to the joint employee doctrine and ties the related companies to co-liability for employment circumstances. This decision does not bode well for employers having affiliated companies and subsidiaries where the parent company wishes to separate potential legal liabilities among its divisions by considering the employees of each division to be separate. This NLRB decision also leaves related employers vulnerable to NLRB union organizing campaigns on a broader basis. Employers utilizing temporary workers through staffing agencies or leasing companies should ensure that the contract for services is very well written, clearly defines the duties and responsibilities of the agency and the client employer, and allocates risk with indemnification provisions. The client company should mandate the staffing agency visit its facility in advance of entering into a service contract so as to familiarize the agency with the nature of the work and the operations. Thereafter, the staffing agency within the contract for services should acknowledge its understanding of the work environment and agree that it is providing temporary employees “qualified” to perform the work safely. While most employers find benefit to employing temporary workers, each employer must recognize its duties and responsibilities toward these temporary employees and comply with all applicable labor and employment laws. For further information, contact Bob Dunlevey, Dunlevey, Mahan & Furry (937) 223-6003.

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Volume 2014, Issue 3 â&#x20AC;˘ OHIO PHC CONTRACTOR

Departments

Keeping Score

Michael Bohinc. CPA

FRAUD – IT CAN HAPPEN TO YOU

n past articles, I’ve discussed the importance of proper job costing, the industry’s dismal 3.5% profit percentage before taxes, the difference between profits and cash and why cash flow is so important to the company. Let’s assume that you have educated yourself on those topics and your business is performing at or above that profit percentage. What would you say if I told you that, on average, a typical business loses 5% of its’ revenue each year due to fraud? According to the 2014 Report to the Nations on Occupational Fraud from the Association of Certified Fraud Examiners (ACFE), survey participants estimated that 5% of annual revenues are lost to fraud each year.1 The Gross Domestic Product (GDP) of the United States in 2013 was 16.8 trillion dollars. That means, in the U.S. in 2013, $840 million was lost to fraud. Wait a minute! The industry’s average profit is 3.5% but the average percentage for fraud is 5%. That means we’re in the hole 1.5%! Fraud isn’t only a “big business” issue. It isn’t only a “retail” issue. Small businesses are actually more vulnerable to fraud because of the constraints of their financial and personnel resources. Small businesses (less than 100 employees) incurred a median loss of $154,000. Take a moment and think about that if you’re a small business owner. Could you sustain a $154,000 loss right now and survive, let alone, grow your business? Many business owners I know couldn’t. That’s why small businesses are less likely to survive an average fraud loss. Small business owners don’t think they’re at much risk because they trust the employees they have. They tend to place too much trust in their employees. “None of my employees would steal from me.” Wrong. Any employee in any business large or small might resort to stealing if their situation becomes dire enough and there aren’t proper controls in place. As a matter of fact, according to that ACFE report, those employees who earn a higher level of trust have more opportunities to commit a fraud. What does fraud mean? The ACFE defines occupational fraud as the use of one’s employment for personal gain through the deliberate misuse or misapplication of the organization’s resources. For fraud to develop, there are three conditions that must be present (The “Fraud Triangle”): Need – There must be a need by the

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

individual(s). There’s got to be a motivation for them to commit the act. A non-sharable financial pressure might be a spouse losing their job, a reduction in wages or benefits (like health care) or increased medical expenses. The employee could have a drug, alcohol or gambling problem or could be dissatisfied with their job. Rationalization – The individual has to justify their fraudulent actions. They need to have an excuse for committing fraud. With the current state of the economy, they’re finding more excuses. Do any of these excuses sound familiar: - - - - - -

I’m worth more than they’re paying me. I’m doing twice the amount of work since they cut staff. I need more money to pay my bills. Others are stealing so why can’t I as well. They’re making plenty of money. They won’t miss this much. I’m just borrowing the money. It’s a loan. I’ll pay it back.

The third component needed for fraud to occur is the only one that the company has control over. That one is… Opportunity – There has to be an opportunity for the fraud to be committed. They have to believe that they won’t be detected or caught perpetrating the fraud. Some examples of opportunities could be: not reviewing employee time cards, not securing access to cash and company checks or not monitoring company fuel purchases. You need all three angles of a triangle in place to have occupational fraud. Some “red flags” to watch out for with your employees: -

Living beyond their means Financial difficulties “Too close” relationship with a vendor or client Irritability, suspiciousness, or defensiveness Family problems (like divorce or child custody) Control issues – unwilling to share duties or take vacations

While you can never completely eliminate the possibility of fraud, there are things that can be done to minimize the chances of it occurring. Next time, I’ll define internal controls and how you can implement them in your company to reduce the chances that you’ll be a victim of fraud. Michael A. Bohinc is a certified public accountant in Cleveland, Ohio. He is an instructor for the National PHCC Educational Foundation. He currently serves as the Interim Director for the Service Nation Alliance – Plumbing Group and is a Consult & Coach Partner for the Service Roundtable. Michael is a recipient of the Servant Leader Award. The award, rarely presented, recognizes outstanding individuals who lead through service to their industry and the people in their industry. He is the youngest to ever receive this honor. He has 26 years’ experience working on business management issues in the plumbing-heating-cooling industry. He can be reached at: 440/ 708-2583, e-mail mbohinc@ keepingscorecpa.com.

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Volume 2014, Issue 3 • OHIO PHC CONTRACTOR 15 1/28/14 12:15 PM

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

2014 ACCA/PHCC Ohio PAC Air Conditioning Contractors of America - Ohio Plumbing-Heating-Cooling Contractors of Ohio Mike Aerni Frank Alexander Roy Anderson Bruce Beckwith Dan Bemer Paul Broerman PHCC Dayton PHCC Akron/Canton Al DiLauro Bill Duecker Paul Episcopo Greg Faustina Rob Fetz

Ohio PAC 892 is your Political Action Committee. ACCA and

PHCC

Ohio

members unite to support the

Doug Fisher Joe Gertz Roger Gundlach Kris Guzik Jim Haberek Angela Long Doug McIntire Will Mullins Brian Nieman PHCC Northeast Ohio ACCA Central Ohio Deborah Ratcliff Jeff Reed Ed Reid

Dennis Schlekie Rick Seifert David Specht Brian Stack Bruce Stebbins Mark Swepston Rodger Sweitzer Tom Tanner Bobby Thompson Steve Sliemers Doug Fisher Gayle Williams Angela Long

YES, I will support the ACCA/PHCC Ohio PAC… Name: Amount:

best qualified, pro-business

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candidates at the state level.

Address: City/State/Zip

Your contribution will have a multiple impact when added to the contributions of other ACCA and members.

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With so much

of your time spent on your livelihood, you alone can’t influence elected officials. Our PAC is strength in numbers - the more members who support it, the stronger our clout in the political process.

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Please make checks payable to Specialty Contractors Coalition Ohio PAC 892 and mail to 20040 Carolyn Ave, Rocky River, OH 44116 Volume 2014, Issue 3 • OHIO PHC CONTRACTOR

Departments

PHCC Ohio Local Chapter NEWS There are six local chapters affiliated with PHCC Ohio: Akron/Canton, Cincinnati, Columbus, Dayton, Eastern Ohio, and Northeast Ohio. PHCC Ohio and our local chapters are affiliated with the Plumbing-Heating-Cooling Contractors National Association. Together our Associations (local, state and national) form one of the nation’s largest and strongest trade organizations and they comprise the only organization working around the clock exclusively in the interest of Plumbing-Heating-Cooling Contractors.

Akron/Canton PHCC Chapter President: Luke Grabill, Grabill Plbg & Htg 330-756-2075 luke@grabill.com

Dayton PHCC Chapter President: Dave Steck, Wat-Kem Mechanical 937-573-3072 dsteck@watkem.com

Executive Secretary: Mary Williams 330-958-6302 akroncantonphcc@gmail.com

Executive Manager: Theresa Engler 937-298-2980 daytonphcc@aol.com

Central Ohio PHCC Chapter President: Rodger Sweitzer, Baumann Plumbing 614-888-2411 baumanplumbing@ameritech.net

PHCC Eastern Ohio Chapter President: Doug McIntire, McIntire Plumbing 330-339-1539 mcintireplumbing@gmail.com

Secretary/Treasurer: Mike Lauber 614-679-6252 mikelauber@aol.com

Secretary: Greg Eisenhart, Sanford Plumbing & Supply 330-386-5191 plumber@spii.net

PHCC Cincinnati (Master Plumbers) Chapter President: Mike Tarvin, Tarvin Plumbing Co 513-321-5726 info@tarvinplumbing.com

Northeast Ohio Master PHCC Chapter President: Ciro Grandini, Ciro’s Sewer Cleaning 216-433-7997 cg@cirosewer.com

Executive Director: Joyce Frank 513-742-2672 cmpa@cinci.rr.com

Executive Secretary: Debbie Tittl 440-337-4285 neomphcc@aol.com

PHCC NORTHEAST OHIO AND ACCA GREATER CLEVELAND AID CUYAHOGA COUNTY RESIDENTS PHCC Northeast Ohio and ACCA Greater Cleveland members and technicians throughout Cuyahoga County on September 13, provided free furnace tune-ups, water audits, plumbing repairs and more services for consumers who did not have the financial or physical means to pay for home repairs. Their service contributed to the 11th Annual ‘Heat and Plumb the County’ service event and helped ensure that nearly 50 residents have access to safe, quality plumbing and HVACR services.

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

PHCC_7.5x5_Focused_1014_Layout 1 9/23/14 4:04 PM Page 1

test. rming a gas base leave our factory. s (31 years), perfo r boilers go through before they Etienne S. Clarilu ou ks ec fety quality ch Just one of the sa

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Volume 2014, Issue 3 â&#x20AC;˘ OHIO PHC CONTRACTOR

IN MEMORIAM PHCC Ohio would like to express our deepest sympathy to the family of Herbert A. Epstein who passed away on September 8, 2014. Herbert was a past PHCC member and is survived by Ethel Epstein, a PHCC National Auxiliary member. Friends, who wish to, may contribute to the PHCC Ohio Education Foundation at phccohio.org/ giving_form.pdf We would also like to express our sincere sympathy to CMPA/ACCA Cincinnati Executive Director, Joyce Frank, whose mother, Dorothy A. “Dottie” Schwab, passed away September 9, 2014. In lieu of flowers, memorials may be made to Hospice of Cincinnati, PO Box 633597 Cincinnati, OH 45263.

Everybody Gets One Have you gotten yours? If you know a company that would benefit from joining PHCC Ohio, please send them our way. Help your association grow stronger by building a membership made of quality companies like yours.

If every PHCC member would recruit one new member, our association and political impact would double!

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

Volume 2014, Issue 3 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2014, Issue 3

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OHIO PHC CONTRACTOR • Volume 2014, Issue 3

Volume 2014, Issue 3 • OHIO PHC CONTRACTOR

Departments

PHCC of Ohio 2014 - 2015 Officers & Board PHCC of Ohio

20040 Carolyn Ave Rocky River, OH 44116 800-686-PHCC [7422] Fax: 216-393-0095 www.phccohio.org www.facebook.com/phccohio

Officers President Jim Haberek Haberek Plumbing & Heating 216-433-7774 Fax: 216-433-7776 5330 Smith Road Brookpark, OH 44142 office@haberek.com President-Elect Ronald Schmitt Joe Schmitt & Sons Plumbing & Heating 937-836-3086 Fax: 937-832-1827 500 Atla Ave; PO Box 237 Englewood, OH 45322 schmitt.ronald@gmail.com Vice-President Brian Nieman Nieman Plumbing, Inc. 513-851-5588 Fax: 513-851-9104 2030 Stapleton Ct Cincinnati, OH 45240 brian@niemanplumbing.com

Past Presidents Advisory Committee Dennis Schlekie Approved Plumbing 440-526-2905 Fax: 440-526-7698 770 Ken Mar Industrial Pkwy Broadview Heights, OH 44147 Dennis@approvedplumbing.com

Greg Eisenhart Sanford Plumbing & Supply 330-386-5191 Fax: 330-386-5470 1725 Pennsylvania Ave East Liverpool, OH 43920 plumber@spii.net

Treasurer Rob Fetz Fetz Plumbing-Heating & A/C 937-652-1136 Fax: 937-652-0015 PO Box 516 Urbana, OH 43078 rfetz@ctcn.net

Staff

Rocco Fana, Jr. Executive Director

Debbie Tittl Executive Assistant

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2014, Issue 3

Bruce Stebbins Stebbins Plumbing & Heating 937-859-4534 Fax: 937-859-5441 621 E Dixie Drive West Carrollton, OH 45449 stebplumb@gmail.com

Trustees Zone 2 Dave Wolfe Wat-Kem Mechanical 937-573-3072 2755 S County Rd, 25A Troy, OH 45373 dwolfe@watkem.com

Zone 6 Paul Episcopo VIP Plumbing, Inc. 216-581-5731 Fax: 216-581-5730 20600 Miles Parkway Warrensville Heights, OH 44128 paul@vipplumbing.com

Zone 5 Rodger Sweitzer Baumann Plumbing 614-888-2411 Fax: 614-262-4958 22 Westerville Square Westerville, OH 43081 baumannplumbing@ ameritech.net

Zone 7 Rick Seifert D & A Plumbing & Heating 330-449-8733 Fax: 330-499-8747 11197 Cleveland Ave NW Uniontown, OH 44685 ricks@crowngroupohio.com