Ohio PHC Contractor, 2014 issue #1 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 1

Advertisers Index American Apartment Owners Assoc.

Bradford White

Champion Pump

FastEst, Inc.

Federated Insurance

Interline 11

A Message From the President, Jim Haberek 6

Liberty Pumps

Legally Speaking: Surviving an OSHA Inspection 8

Little Giant / Franklin Electric

Keeping Score: Benchmarking 14

Metropolitan Industries

17-20

R. L. Deppmann

PHCC of Ohio 2014 - 2015 Officers and Board 34

Rheem 5

Features:

Robertson Heating Supply

PHCC Ohio Introduces WorldPay 12

2, 3

Saniflo 7

2014 PHCC/ACCA Ohio Convention and Expo Re-Cap 21

SureSeal 27

2013 ACCA Ohio Award Winners 24

T&S Brass

2013 PHCC Ohio Award Winners 25

Test Gauge & Backflow Supply, Inc.

Turbonics

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

Departments:

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

2013 - 2014 PHCC Ohio Annual Report 28 2014 - 2015 PHCC Ohio Calendar of Events 33

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

Robertson Heating Supply

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Departments

From the President Jim Haberek

i everyone. I hope all is well. I am proud to represent all our members as the new Ohio PHCC State President. I am excited to get started and to continue our goals expressed in our mission statement. I would like to congratulate Rob Fetz and the entire Board of Directors for the great job they did this past year, and I welcome our new Directors for this year. We welcome any new ideas or concerns from our members so that we can continue our positive search forward to improve and protect our industry. We just completed our very successful 2014 ACCA/PHCC Ohio Convention in Columbus, Ohio. Thanks to my co-chairman, Jeff Reed of ACCA Ohio, the entire convention committee and especially Debbie, Mary, Joyce and Rocco for a great job well done. To all our sponsors who supported the convention, you all make the convention possible - a great big thank you! Congratulations to this year’s award winners, Mike Waker, Contractor of the Year; Tony Ferretti, Contractor Service; Jeff Hawks and Aaron Hawks, Champion Pump, Manufacturer’s Rep; and Mark Francis, Sutton Leasing, Supplier of the Year! May 21-22 will be PHCC national legislative day in

Washington D.C. We encourage all our members to go and help express our concerns. If you haven’t gone before, it is a great experience and you will feel proud representing the PHCC. I would like to take the time to thank all those that have helped, supported and encouraged me along the way to get to this point as your president. I have had a lot of great experiences, learned a lot and most important - all the friends I have made, many of them are like family to me! The great thing about being a member of PHCC is all these things will continue in our business and personal life. I have learned that by getting involved, it has always had a positive effect in my life. No matter if it is helping in a small event, being on a committee, being an officer at our local chapter or on the state board, the result has always been rewarding! I encourage everyone to give it a try. If I can be of any help, please let me know. I wish you and your families a great and safe summer!

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Departments

Legally Speaking SURVIVING AN OSHA INSPECTION

f you have not felt the brunt of an OSHA inspection recently, chances are you will do so soon. Inspection efforts are escalating! Our firm has been involved in many of them. Often it is a disgruntled employee who brings in OSHA - not the “random” inspection. Also, accidents which find their way into newscasts and newspapers frequently trigger inspections as well. In fact, most police and fire departments now call OSHA while they are on the scene of a job related accident. When OSHA appears, the employer’s initial response will determine its success in avoiding and defending citations. OSHA’s first visit after an accident is the most important event in the life of the investigation. Don’t think that you have “nothing to hide.” Procedures should be in place for dealing with an inspection. With planning, employers can manage the inspection effectively to minimize work disruptions, present the employer and its worksite in the best light possible, maintain positive employee relations and preserve sound relationships with the government agency. Failing to plan, however, may result in excessive civil penalties, significant abatement costs, criminal prosecutions, negative media coverage, and deteriorating employee relations. Taking effective steps before, during and after a government inspection or investigation is critical to limiting your liability. Remember that you are entitled to representation in an OSHA inspection and OSHA must give your company a reasonable opportunity to have your safety consultant or OSHA attorney travel to your facility before the inspection commences. Don’t be in a hurry to let OSHA into your facility. Some larger clients of the firm have made Compliance Officers (“C.O.”) wait as much as two hours for us to arrive – but this is at the outer limits of a reasonable time frame. When OSHA appears, you have two options - permit the inspection or refuse it. If the inspection is permitted, strict parameters need be set in order to keep the compliance officer from having the opportunity to engage in a fishing expedition for additional violations. Whether to grant access frequently depends upon the facts and circumstances surrounding the citation and the working environment at time of inspection. Generally, however, if the C.O. appears with a proper complaint, he should be permitted to inspect, but only for the item identified in the complaint. The employer’s limitations on the inspection should be stated to the C.O. and those limitations should be strictly followed. Remember, OSHA is empowered to expand the inspection scope and issue citations for other violations which may be in plain sight as the C.O. moves

Bob Dunlevey Dunlevey, Mahan & Furry

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

between the entrance to the work place and the area of the inspection. Anything seen is fair game! It is so important to limit the compliance officer’s exposure that it is not unusual for an employer to cause the C.O. to walk outside and around the facility and therefore enter by a back or side door immediately adjacent to the area of inspection. An employer has the right to deny access until a search warrant is obtained. Some benefits exist in requiring a warrant - it identifies the scope of the inspection, the time limitations for performing the inspection and gives the employer time to get its house in order before the compliance officer returns with the Court order. Requesting the warrant is most advised, if there are numerous items listed on the complaint or a “wall-to-wall” inspection is intended. Historically, compliance officers are not more zealous about the inspection, when required to obtain a warrant – contrary to what you may think. Well before OSHA appears, you should establish a protocol for an inspection and designate a team which will be the only individuals interfacing with OSHA. One individual should be designated to keep tight control over the entire process – preferably someone who is not “over talkative.” Stick with the following hints and avoid being overly cooperative or overly communicative (a high level of cooperation won’t do anything to mitigate your exposure to liability contrary to what you have heard): • Designate one safety knowledgeable manager to interface with OSHA now and in anticipation of future visits. • Consider whether to immediately employ an experienced safety consultant or OSHA attorney to handle the initial inspection and the balance of the matter so as to keep you isolated from being exposed to the C.O. and saying and doing the wrong things. OSHA will wait until your representative arrives, so don’t be in a hurry! • Review C.O.’s credentials and obtain full name and office address. • Determine if the inspection is caused by complaint, is random or post-accident. • Inquire as to the scope of the inspection (specific piece of equipment, area or wall-to-wall) and get a copy of the

complaint at the outset and confine the inspection to the items in the complaint. • If wall-to-wall inspection, consider requiring search warrant. • If narrow inspection, reach agreement as to approach for inspection and confine the scope of inspection. • Walk with C.O. (elbow to elbow) through entire inspection.

• Limit a C.O.’s conversation with employees at their work stations and don’t permit the employees to group themselves around the C.O. to engage in group discussions.

• Try to postpone employee interviews until you have a thorough appreciation of what occurred, who was involved, what OSHA Standards are applicable and whether your company was in compliance at the time of the accident. Your representative is entitled to brief employees in anticipation of their interviews and this is well worth the time and effort.

• Avoid reenactment of accidents and merely permit the C.O. to review the normal operations.

• If the C.O. asks what happened – don’t guess! – even if you think you know.

• Determine whether to contest any citation based upon the costs involved, the penalty amount, the severity of the citation, the precedent set, the ability to abate the alleged violation (time and method), likelihood of future violations and the impact on other possible collateral litigation. An informal settlement conference is available at OSHA’s offices but seldom beneficial.

• Take pictures of anything OSHA takes pictures of from the same angle and at the same time. • Provide no unsolicited information and permit no one else to do so. • Don’t provide documentation to OSHA until you and your safety experts have thoroughly reviewed the documentation – consider whether the information can be provided in a form that states the company’s position in the most positive light. • Take minutes/notes regarding everything C.O. does and says, including those to whom he speaks (he has the right to interview employees outside of your presence but you may be present when supervisors are interviewed). Be careful what you write. It is discoverable. • If C.O. has a video recorder, be cautious that, while it may be pointed to the ground, it is recording audio (a favorite trick). • Don’t take pictures or write emails during or after the inspection that could be used against you – they are discoverable. • Refrain from having employees write witness statements of events which caused the inspection – these statements are admissible at time of trial and are seldom beneficial. • A company representative can be present when the C.O. 10

interviews a supervisor and a knowledgeable representative should always be present and ask for a copy of any written statement taken immediately upon conclusion of the interview – don’t let the supervisor sign the statement until you are sure it properly states the testimony of the supervisor.

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

• Take thorough notes at the “closing conference” when the C.O. reviews his findings – an experienced attorney skilled in OSHA defense should be present if it is a significant matter such as a fatality.

Remember, that almost always a company can receive a substantial reduction in the monetary penalty imposed but the real consideration is whether by settling the case you are agreeing to change your methods of operation in some fashion which will, at least, be expensive or, at most, be totally impractical and substantially impede effective and economic production. Don’t measure the success of the outcome of the investigation by the number of dollars that the penalty has been reduced, but instead by how the agreed to abatement efforts do not impede your normal operations. Also, other types of civil court actions and administrative proceedings may arise out of the accident and OSHA’s documentation will be discoverable. OSHA’s enforcement activities have changed dramatically in the recent years and your approach to dealing with the agency needs to be reconsidered, if you are to survive an inspection. Few attorneys and consultants are adequately equipped to deal with safety issues, especially when there are serious accidents. Take the time now to consider how you will approach an inspection before your day comes. For further information utilize your Legal Services Plan and contact Bob Dunlevey, Dunlevey, Mahan & Furry at (937) 2236003. Visit the website of Dunlevey, Mahan & Furry for additional safety information - www.dmfdayton.com

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Volume 2014, Issue 1 • OHIO PHC CONTRACTOR

Departments

Keeping Score Michael Bohinc. CPA

SALES PER CALL BILLABLE EFFICIENCY %

DIRECT LABOR COST %

BENCHMARKING

NET PROFIT MARGIN

SALES PER TECHNICIAN

GROSS PROFIT MARGIN HOURS SOLD PER CALL

BENCHMARKING

s I sit in front of my computer working on this issue’s column, a familiar song and commercial comes on during March Madness (the NCAA basketball tournament). Most of us would know the song if we heard it but probably don’t know its name. Over the music, the announcer says “A tradition unlike any other.” That should give away the commercial that came on. For those that didn’t get it, the commercial was for “The Masters.” For many golfers, it’s the Holy Grail of all golf tournaments. “That’s great Mike, but what does that have to do with your column this issue?” Great question! This issue, we’re going to look at the topic of benchmarking. One aspect of benchmarking is keeping score. You keep score in golf. Get it now? I’ll grant you it’s a bit of a reach. So, what does benchmarking mean and why is it important? Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting them and implementing them to become the “best of the best.” When you compare a company’s performance to previous years or to other companies, that is called performance benchmarking. In the breakeven and pricing seminars that I teach, I mention profit performance results for some companies within our industry as well as some that have nothing to do with our industry but are considered top performing businesses when it comes to profitability. In the most recent year end data I could find, companies like Moen, Home Depot and Lowes have profit margins in the 5% range. While companies outside our industry like McDonald’s, Microsoft and Disney have profit margins in the 20% range. If your profit margin is 4 percent, it might look pretty good compared to some companies in the industry, but how does it stack up against some of the best companies in the world like McDonald’s, Microsoft and Disney? Not so good huh! Why should you consider benchmarking? It is an effective tool to see how you are progressing towards financial goals as well as other company goals. It also helps identify areas of

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

strength and weakness in your company. If you find a statistic that is way off from the comparisons, it gives you a starting point to investigate what the problem is and how it might be corrected. In order for the benchmarking to be valuable to you, it must include accurate data from the participants. What things should you be benchmarking? It can be easy to get caught up in the minutia of benchmarked data. However, some of the items I think are relevant are: - - - - - - -

Gross profit margin Net profit margin Direct labor cost % Sales per technician Company’s billable efficiency % Average sale per call Average hours sold per call…..just to name a few.

If you’re interested in benchmarking your financial performance, here’s an easy way to start. Get your most recently completed fiscal year financial statements as well as those from the last few years. Are the numbers looking better? Worse? Additionally, if you sit down and do an annual budget for the company (which should be done but often isn’t), you can compare your actual results to your budgets to see how accurate they were. If the results varied from the budget, why did they vary? What factors contributed to the variances? Were these factors things that were within or outside your control? There are not a lot of external data options readily available to contractors to compare themselves against other businesses. There are services like Dun & Bradstreet, who compile financial statements from many companies across many industries available, but they only provide limited data comparisons (sales, cost of sales, gross profit, overhead, operating profit, etc). Some industry associations have this service available as one of their member benefits. It allows you to compare yourself to the other participating members of the association to see how you “stack up.” The associations

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that I know that have benchmarking statistics available to their members are QSC (www.qsc-phcc.org), the Service Nation Alliance (www.servicenationalliance.com) and Nexstar (www. nexstarnetwork.com). This is a powerful benefit to belonging to any of these associations. You can also find industry data on some of the government websites. Benchmarking your company’s performance is a great way to find out just how well your company is doing. To be the best, you have to compete (and beat) the best. Speaking of which, while I’m sure the Masters tournament will be competitive, it won’t truly be a match of the best players in the game as Tiger Woods, the #1 ranked golfer in the world (according to benchmarked data), won’t be there due to back surgery. Regardless of your position in the world plumbing-heatingcooling contractor rankings, keep score (benchmark) and make your company the best it can be! U.S. Treasury Department Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding

penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This handout is not intended to be comprehensive in nature and competent professional tax advice should be sought in determining the issues that impact your specific situation. Michael A. Bohinc is a certified public accountant in Cleveland, OH. He is an instructor for the National PHCC Educational Foundation. He is also a Consult & Coach Partner for the Service Roundtable and currently serves as the Interim Director for the Service Nation Alliance – Plumbing Group. 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 25 years’ experience working on business management issues in the plumbingheating-cooling industry. He can be reached at: 440/ 7082583, e-mail mbohinc@keepingscorecpa.com.

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OHIO PHC CONTRACTOR • Volume 2014, Issue 1

Ion® Digital Level Control Switch

Patent No. 8,591,198

Good: Ion+®

Ion® Digital Level Control Switch

• The first and only solid state digital pump switch with no moving parts • Rated for use in both sump and sewage pump applications with any 115 volt pump up to 15 amps • Tested for over 2 million cycles • The cornerstone of our Ion® Products line

Patent No. 8,591,198

Better: Ion Genesis®

Ion+®

• Economical enhancement to any pump with a standard piggy back switch • Plug and play installation for standard pump operation and alarm notification from a single switch • Indicator lights for power, pump operation, and alarm along with audible alarm • RJ11 dry contact for remote alarm output

Ion Genesis®

• First of a kind pump controller designed to automatically operate one or two pumps. One pump at a time. • Ion® sensors communicate with controller to provide controller based turn on level adjustment from 2.5" to 24" • Track critical information through the panel based display, including switch failure; pump amp draw, water level and more

Patent No. 8,591,198

Best: Ion® Endeavor

Ion® Endeavor

• First of a kind 115 or 230 volt standard plug in receptacle, dual pump run and alternating controller for residential and commercial applications • Ion® sensors communicate with controller to provide controller based turn on level adjustment from 2.5" to 72" for optimal pump operation • Track critical information through the panel based display, including switch failure; pump amp draw, water level and more • Wide range of communication options available

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Economy: StormPro® 2100DC

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Better: 50ACi

50ACi

Patent No. 8,591,198

Fully automatic auxiliary power source Backup system runs on AC or DC power Runs the same ½ HP pump with power on or off Inverter has digital display, tells status of system at all times

Patent No. 8,591,198

30ACi

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Best: Sumpro® Platinum

Sumpro® Platinum

Patents Pending, Patent No. 5,508,905 & 8,591,198

Runs on either AC or DC power Supplied with two ¾ HP, 115 volt sump pumps Ion Genesis® controller monitors all pump activity, using two Ion® sensors Can be installed as a backup or primary pump

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Pumps Good: WC33i+

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Better: BA33i+

½ HP, 115 V, 4.5 FLA, 60Hz

Best: BA50i+

¾ HP, 115 V, 5.8 FLA, 60Hz

Good: X-ONEi+

Better: SHV40i+

½ HP, 115 V, 8.5 FLA, 60 Hz ½ HP, 115 V, 8.2 FLA, 60Hz ½ HP, 230 V, 4.3 FLA, 60 Hz

Ion+® Pumps

Sump and sewage pumps with a built-in high water alarm.

Good: Econ Sump Package 18" X 24"

Better: Econ Pit Package 18" X 30"

Patent No. 8,591,198

Best: SHV24X24 Basin Package

Install With Confidence

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DONE

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Anyone can purchase and install a sump pump from a DIY store, and just as easily install it incorrectly. Don’t cut corners when it comes to such an important piece of equipment for your home. Incorrectly installed and inferior quality sump pumps from DIY stores cost homeowners thousands of dollars in damage every year. Don’t risk your basement flooding! Have a professional installer do the job correctly the first time. Be assured, when the installer is at your home, they will conduct a detailed review of your sump pit area and let you know if there is anything that should be modified or added to protect your home from flooding. Don’t just replace your sump pump.

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2014 PHCC/ACCA OHIO CONVENTION Other associations always ask the secret to the great partnership and success between ACCA and PHCC Ohio. It’s no secret…it’s you – the members and leadership that make it happen. It takes an entire team for a successful Convention and the 2014 Convention Committee did a great job! Thank you Co-Chairs Jim Haberek and Jeff Reed! Thank you committee members Deborah Ratcliff, Bruce Beckwith, Ed Reid, Will Mullins, Gayle Williams, Betty Clark, Richard Wirtz, Bobby Thompson, Dan Bemer, Tony Ferretti, Jr., Ron Schmitt, Joyce Frank and Rob Fetz. Special thanks to Mary Williams, Debbie Tittl and Rocco Fana for all the behind the scene efforts.

RE-CAP

Volume 2014, Issue 1 • OHIO PHC CONTRACTOR

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

u o Y k Than

2014 PHCC/ACCA OHIO CONVENTION

SPONSORS

Volume 2014, Issue 1 • OHIO PHC CONTRACTOR

2013 ACCA Ohio Award Winners

The Contractor of the Year Award recognizes an ACCA member who has a proven track record of hard work for the Association, the HVAC/R Industry and the membership. Mark Swepston is the current President and CEO of Atlas Butler. His first job was placing door hangers on residential doorknobs. From there he worked in the sheet metal shop and the installation department. After graduation from OSU, Mark joined the accounting department and later spent five years as the service manager. The company was formed in 1921 and Mark assumed the presidency in 1986. When taking the helm, company sales were about $4 million. Through his leadership, acquisitions and start up of other entities, sales in 2007 were over $14 million. Atlas Butler provides HVAC services for both residential and commercial. They have received numerous awards and recognition for their business ethics, integrity and service to the community. Within the industry, they have been recognized for their outstanding training of associates and, in particular, for a job training Academy, that in cooperation with Columbus State Community College, provides a new career and a job guarantee to all graduates. Community involvement is also important to Mark. He has served on the board of the Mt. Carmel Health Foundation, the Salvation Army and the Wellness Community and in recent years has served on the board of the Greater Columbus Chamber of Commerce and been active in the Multiple Sclerosis Society. Mark is also active in several industry related organizations and served on the national board of ACCA and is often called upon to present seminars on buying and selling businesses. 24

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

ACCA Ohio’s Supplier of the Year Award is given to a Supplier or Wholesaler, and sometimes individual, who has been supportive of the HVACR industry and provides outstanding assistance to ACCA member’s. Cindy Griffin is an experienced HVAC marketing support specialist with over 26 years in the industry. Her career began at Refrigeration Sales Corporation (RSC) where she gained expertise in supporting various sales and marketing programs. She is no stranger to wearing many hats, but her primary function is Senior Marketing Communications Specialist, supporting key marketing initiatives for the Carrier Dealer Group in Northeast and Central Ohio. In recent years, she has expanded into additional brands, providing support to the ICP product, Parts & Supplies and Refrigeration departments for RSC. Her passion for the industry does not end there. Cindy has been very dedicated to the ACCA/PHCC sponsored event, Heat and Plumb the County for 10 years. She is an avid supporter and a member of the event’s Committee, contributing many hours to assist the elderly in Northeast Ohio every year. Cindy is a native of Westlake and enjoys softball, swimming and being near the water. When on vacation, Cindy will always venture towards water.

2013 PHCC Ohio Award Winners

The Contractor of the Year award is given to the individual contractor member who has demonstrated over and over his or her willingness to serve PHCC, the industry and their community with their time and talent. Mike Waker has lived in Kettering, Ohio his entire life. After graduating from Fairmont High School in 1983 he began working full-time at the family owned business started by his father (in 1979). Mike’s career began much earlier following in his father’s footsteps with a wrench in his hands as a toddler. He became a Journeyman Plumber in 1987 and then a Master Plumber two years later. He married his wife Patty in 1994 and they have two children, Nicole, a freshman at Miami University and Ben, a sophomore at Alter High School. Mike has been a member of PHCC since 1983 and has served as Secretary, Vice President and President for two years with PHCC Dayton. He also represented PHCC Dayton on the state board for numerous terms. Waker Plumbing is now owned by Mike and his brother Steve. They have 14 employees that specialize in gas work, repair work, exterior underground gas, water, and sewer services. Mike is very involved in the community and has volunteered his trade and craftsmanship to numerous local non profits, as well as a volunteer for the Board for Plumbing Registry for the City of Kettering (over 10 years). Many people don’t know it, but Mike is a master woodworker and craftsman…He has (totally) remodeled each home is has lived in.

The PHCC Contractor Service Award is given to the PHCC member who has demonstrated his or her willingness to serve PHCC and the membership with their time and talent. According to the nominations, “Tony is very dedicated to PHCC…a very behind the scenes member always helping on committee’s and events.” Tony Ferretti has been married for married 39 years and has 3 children – 2 are working in the family business (1 is a plumber and 1 is administrative/clerical). Tony has been in the trade for 45 years with a vast history in the plumbing business. He started working for his father while in high school and went to MPL apprenticeship school, also while attending high school. After passing the City of Cleveland Journeymen’s and Master Plumber’s test, he remained with his father’s company for over 30 years. In 2000, he started his own business, Tony & Son Plumbing. The company is currently running 3 trucks - primary services include residential, commercial and industrial, remodeling and repair work…all of this with 3 full-time State of Ohio Licensed plumbers! Although Tony is “behind the scenes” these days, our winner did serve as Treasurer and President (1999-2000) of the Master Plumbers League. Continued on page 26

Volume 2014, Issue 1 • OHIO PHC CONTRACTOR

The Manufacturers’ Rep Award is given to an individual who has supported PHCC, the plumbingheating-cooling industry and our members. This year, Jeff and Aaron Hawks were nominated more than once and according to one nomination, “they continually provide outstanding customer service and are true professionals.” Jeff, the father, has been involved with PHCC for a really long time…when he served as sales manager for Covert Pump, Barnes Pumps and Blue Angel Pumps. The company was founded with his partner, Jeff McFarlin, in 2004. They began shipping product in 2005. Since they offered a limited-product at first, they sold direct to plumbers. They sell in at least 30 states through wholesalers and Ohio remains one of the few they still sell direct. As the business grew, it became more difficult for Jeff to allocate his time to meetings and call the existing customer base in Ohio, so they hired son Aaron…he has faithfully called on Ohio plumbers and attends as many of the local and regional meetings as possible. Champion Pump has participated in our Annual Convention, were a Platinum Sponsor of this year’s Convention and last year they become one of the first Industry Partners with PHCC Ohio. Headquartered in Ashland, OH, their entire staff is dedicated to serving the needs of their customers and manufacturers.

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

The Supplier of the Year Award is given to a supplier or wholesaler who has been supportive of the industry and provides on-going assistance to our members. This award is usually given to a specific company, but there have been many occasions that an individual with a company is recognized for their efforts. Mark Francis is a small business owner and sales executive with extensive sales management experience. Mark has a 16-year career in the fleet management industry, including pioneering achievement and award winning performance in both sales management and sales. Currently, he is the VP of sales and marketing of this long-time benefit provider and exhibitor at our Convention. His company is a very strong supporter of our local chapters (both PHCC and ACCA). Mark has been the owner of, “Keepin’ It Reel Fishing Charters,” since June 2010 and is a licensed USCG OUPV Captain and Charter Captain. He offers deep sea fishing charters for his clients. Mark has a BS in Biological Aspects of Conservation (with an emphasis in Zoology) from the University of Wisconsin-Madison and was a letter winner for the Swimming and Diving Team.

2013-2014 PHCC Ohio Annual Report Advocacy | Education | Information | Success

PHCC Ohio is a membership organization of active plumbing-heating-cooling contractors committed to the continuous improvement of our industry and society’s quality of life through ongoing education, training, and political action.

Dear PHCC Members: Wow, I can’t believe how fast time flies when your busy with family, work and being involved with this great association. The year started out serving as co-chairman for the state convention at The Great Wolf Lodge in Cincinnati, Ohio Legislative Day in Columbus, National Legislative Day in Washington D.C., National PHCC Convention in Las Vegas and most recently, visited the Cincinnati chapter for their installation banquet. Still have the rest of the chapters to visit and the 2014 Convention to finish my term and it’s all been well worth it. What I enjoy most from serving as president, is meeting new people and working with great people on our board to help and improve our association and the PHC industry for our members, employees and customers. It feels good to be part of a group that gets so much accomplished year after year so none of our members will be standing alone. One accomplishment I would like to point out that everybody participated in, is helping the PHCC/ACCA Ohio PAC exceed its goal for the year and we thank everyone for their contributions. Oh, by the way, its time to start over for 2014. No amount is to small, contribute what you can at your local chapter meetings so we can keep the wheels turning for future legislative issues. I would like to thank all of the board members for their support and taking time to serve, Mary, Debbie and Rocco for all of their hard work and support, our chapter leadership and membership and associate members for making this a great state association. Thanks again to all of you. Rob Fetz, Fetz Plumbing, Heating & Electrical 2013-2014 PHCC Ohio President 28

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

YOU CAN’T GOOGLE EVERYTHING 2014 OHIO CONVENTION AND EXPO Welcome to the Annual Ohio Convention and Expo being held at the Columbus Hilton at Easton, March 26-28. We’ve brought in all new speakers, updated the format and our EXPO on Thursday evening (4-8pm) includes 90 plus exhibitors, to help attendees solve their toughest business challenges and give contractors, manufacturers and other vendors a platform to exchange ideas about the latest advancements in the PHC industry. We think this year’s convention will exceed your educational and networking needs. Make sure to share ideas and most important…have fun! Mark your calendar now for the 2015 Ohio Convention. Join us March 25-27 at the Embassy Suites Cleveland! LEGISLATIVE One of the most important benefits of membership with PHCC is advocacy on behalf of the Plumbing-Heating-Cooling industry. PHCC Ohio works behind the scenes every day with lawmakers, regulators and agency officials to protect your industry from misguided legislation and overbearing regulations. OUPS Legislation PHCC continued to attend and participate in monthly meetings of the Ohio Underground Protection Service Coalition as the group discussed the potential topics for further legislative changes to the OUPS law. Residential Contractor Licensing Our legislative agents, Palmer McNeal and Kitty Zwissler, have met with several key state Senators and Representatives about sponsorship and support of residential licensing legislation. They continue having discussions with the Governor’s legislative staff, Department of Commerce, key house and senate legislative staff and OCILB personnel to work on the proposed legislation.

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At the beginning of the 2013 session, Rep. Bill Patmon (Cleveland) introduced HB 140 (Residential Construction Contractors Licensure). Rep. Patmon did not seek input or assistance from PHCC or ACCA Ohio in creating the bill to require licensure of residential construction contractors. Ohio Legislative Day More than 30 contractors from ACCA and PHCC participated in the 6th Annual event. Legislative Day is a one-day event with an issues briefing, visits and an evening reception at the Statehouse Museum. PHCC is grateful to those members who took time away from their busy schedules to advance the interests of our industry. Ohio Specialty Contractors PAC is the political action committee for our association. It provides financial support to elected officials who understand and support the issues of the HVAC and PHC industries. Your PAC ensures the voices of our members are heard on all industry related issues. ACCA and PHCC set a fundraising goal of $10,000 and we ended up raising $11,229! The Specialty Contractors Coalition would like to thank all PHCC and ACCA members who have given generously to the Ohio PAC. The success of our PAC enables PHCC and ACCA to work year round on building relationships, gaining access and creating dialogue with elected

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2014, Issue 1

officials at the state level. This is the only way to assure our voice is heard. Monitored Legislation Throughout the year, PHCC, along with our legislative agents, tracked and monitored numerous items receiving attention by the legislature. HB 168, Certified Apprenticeship Programs- To create a subprogram of the Post-Secondary Enrollment Options Program that permits students to participate in certified apprenticeship programs. HB 5, Municipal Corp Income Taxes- To revise the laws governing income taxes imposed by municipal corporations. SB 58, Retail Electric Service- To review and possibly modify the energy efficiency, peak demand reduction, and alternative energy resource provisions established by Ohio law governing competitive retail electric service. SB 78, Specialty Construction Contractors- To make changes to the law regulating specialty construction contractors As for 2014 The current session of the General Assembly continues through

December 31, 2014. All issues currently pending are alive and well and retain that status until the end of the year or when the legislature adjourns sine die (very likely in late December). The biggest issues expected in 2014 are midterm budget corrections and capital appropriations bills. A certain theme influencing 2014 is the November elections. The governor and all statewide executive offices are up as are two Supreme Court seats, all 99 House members and 17 senate seats. Essentially, control of the state is up for grabs. While legislative issues and policies will be influenced, the work at state agencies continues without any change or deadline. We expect a full slate of issues to continue at the EPA, the BBS and the RCAC. We also expect some action with the PUCO. REGULATORY Residential Code of Ohio PHCC continued to provide input at the regular meetings of the Residential Construction Advisory Committee (RCAC). Ohio Plumbing Code PHCC had been working with Ohio’s chief plumbing official, Ralph Reeb, before his passing, regarding concerns about the Ohio Plumbing Code. In particular, the focus has been 1on the lack 11:48 of direct involvement WelkerMckeeProsAd2.pdf 4/3/14 AM of the plumbing industry in the code change process.

The PHCC Ohio Code/Backflow Committee will continue to work with the state and new plumbing supervisor, Jack Soma, to offer ideas and give input to the code change process and backflow issues. Board of Building Standards PHCC continued to provide input at the regular meetings of the Ohio Board of Building Standards. Backflow Advisory Committee PHCC continued to work closely with the Committee and then chief plumbing official, Ralph Reeb. We’ll continue our efforts with new plumbing supervisor, Jack Soma. Backflow Program PHCC Ohio, The Cleveland Plumbing Industry, the Ohio Association of Plumbing Inspectors, Cleveland Plumbers Local 55 and the Mechanical Contractors Association of Ohio have come together and developed a White Paper on a proposed Backflow Prevention Program to be facilitated by OCILB that will keep Ohio’s drinking water safe. The white paper is a basic explanation of Backflow Prevention and why swift measures must be taken to preserve the potable water in Ohio. The proposal was sent to Governor Kasich, Commerce Director Andre Porter, Superintendent Dave Williamson, and Plans Examiner (now Plumbing Supervisor),

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Jack Soma, and OCILB Executive Secretary Carol Ross. OCILB PHCC Ohio takes the work of the OCILB seriously and we work cooperatively with the OCILB to make sure that regulations are enforced uniformly, that rules written are constructive to the industry, and that the agency operates in a way that does not negatively impact the competiveness of licensed contractors in Ohio. Early this year, PHCC Ohio teamed up with the Ohio Department of Commerce and OCILB Training & PR Manager Carol Ross to help stop unlicensed activity. PHCC members can report a complaint direct to Carol Ross at 614-644-3495. MEMBERSHIP A membership plan includes both recruitment and retention programs (current retention rate is 90%). Membership is an ongoing process which requires the full support of Association leadership and the entire membership. PHCC Members need to be involved in membership (recruiting, retention, activities and projects). Maintaining this direction will not only stabilize the membership, but it will ensure continued growth of the organization. Everybody Gets One! If you know a company that would benefit from joining PHCC, please send them our way. Help PHCC grow stronger by building a membership of quality companies like yours. Introductory Membership PHCC Ohio continues to offer membership up to 50% off the full rate for the first year of membership. With the current economy, PHCC is offering contractors the experience of PHCC at a reduced rate to increase the exposure to the value of membership in our Association. MEMBER BENEFITS Benefit of the Month PHCC members and chapters continued to promote PHCC benefits that included: the Ohio Convention, Legislative and Regulatory Efforts, Speedway Fuel Program, Quality Service Contractors (QSC), Education and Training, PHCC Contractor Locator, Legal Services Plan, License Bond Program, Office Depot, Central Messaging, Workers Comp Group Program, and Ohio Legislative Day. New Benefits added in 2013 include: WorldPay Credit Card Processing PHCC Benefits Guide offers members all the features available from PHCC. With a myriad of benefits that help productivity, cut business expenses and educate you on new codes, law, trends and technology, your membership includes features that often cover the cost of your annual dues. 32

OHIO PHC CONTRACTOR • Volume 2014, Issue 1

The ACCA/PHCC Membership Directory PHCC, along with ACCA, worked with a third-party consultant group to create and publish our first joint membership directory. The directory includes contact info about PHCC, members and elected officials at the state level. Special thanks to all the members who bought advertising to support the new annual directory! IMAGE & COMMUNICATION Promoting PHCC and the professionalism of members to consumers continued in 2013. PHCC Truck of the Month Members displaying the PHCC logo on their service vehicles have been featured on the PHCC website and Facebook page. Schlueter Plumbing, Joe Schmitt & Sons Plumbing and Heating, Approved Plumbing, Nieman Plumbing, The Plumbing Source, Frecka Plumbing, Norhio Plumbing, VIP Plumbing, Portage Plumbing, Sbrocco Plumbing and Hoffman Plumbing have been featured. Famous Supply Expo PHCC Members and staff participated at the annual Famous Supply Expo in September to promote PHCC, recruit new members and support Famous Supply. Ohio PHC Magazine continues to be published four times per year at no cost to PHCC Ohio with a distribution of 6,500 plus. New features continue to be added. Website PHCC continues to emphasize the importance of using professional, licensed, insured, plumbing contractors and offers various tips on selecting and working with a PHCC professional. Facebook PHCC Ohio continues to increase its presence on the social media site. PHCC currently has over 206 “likes.” Social media is another resource to provide updates and information as well as have members interact with one another. SOCIAL MEDIA LINKS TO REMEMBER… • PHCC Ohio on Facebook: http://www.facebook.com/phccohio • PHCC Ohio on LinkedIn: http://www.linkedin.com/groups/Friends-PHCC-4528476 • PHCC Ohio on Twitter: http://www.twitter.com/PHCCOhio • PHCC Ohio on YouTube http://www.youtube.com/phccohio STRATEGIC PLAN At its November Meeting, the PHCC Ohio Board finished the year looking at current conditions and trends, as well as new ways to better serve our members. PHCC’s priority remains

staying one step ahead so that we can continue to support our members’ needs. The plan focuses on four issues: Government Affairs, Membership, Education and Marketing & Technology. The plan was officially approved at the February 2014 Board meeting. INDUSTRY PARTNERSHIP PROGRAM The Industry Partner Program is a new sponsorship program with benefits exclusive to our Partners. The program gives a specific number of companies the opportunity to build name recognition and brand loyalty, reach new customers and sell their products, by providing a comprehensive, year-long period of advertising and marketing to PHCC contractor members. To date, Champion Pump, Federated Insurance, Famous Supply, Contractors Choice, Brock Restoration and Keeping Score are PHCC Industry Partners. FINANCIALS The goal of the Treasurer, with the assistance of the executive committee, board and executive director, are to enhance the income of the organization while minimizing expenses. The economy was still a challenge and PHCC ended the year with a net-loss.

Services. We have a more conservative portfolio in place. Since changing investment companies, our portfolio made several gains at the end of 2013. The Committee continues to monitor our holdings and make adjustments, with the approval of the Board of Directors.

2014-2015 PHCC Ohio Calendar of Events PHCC Board Meetings May 2, 2014 August 7, 2014 November 7, 2014 February 6, 2015 2015 Ohio Convention and Expo Embassy Suites Cleveland March 25-27, 2015

Preliminary Year End Review December 31, 2012 and December 31, 2013

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Volume 2014, Issue 1 • 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

Mary Williams Executive Assistant

OHIO PHC CONTRACTOR â&#x20AC;˘ Volume 2014, Issue 1

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

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