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Publisher’s Letter Building & maintaining better roadways is job one in 2016 Better, faster, safer, and more cost-effective. For practitioners across the country, highway quality is all about achieving the shared goal of building, preserving, and maintaining better roadways. As we move further into the 21st century, owner agencies and industry face a number of significant challenges. Traffic growth and increased congestion, freight management, national security, and an ever-increasing sensitivity to the environment are all driving forces for future highway improvements. In addition to these challenges, transportation agencies must also contend with limited budgets, shrinking workforces, and an aging transportation system with an increasing percentage of the infrastructure in need of repair. It came as no surprise that ASCE’s (American Society of Engineers) 2013 road assessment yielded a grade of “D,” for dismal. Because of these factors, a strong focus on quality is more important than ever. All of these issues will require significant attention to improving quality and ensuring that we get the highest performance possible from our future highway projects. Quality is not a single definition or a one-step process, but rather encompasses everything from project planning and design to construction materials, workmanship, and durability of the finished product. Safety characteristics, project management, and financial stewardship are all critical concerns. An attention to quality in all aspects of a highway project is important to producing a final product that safely and efficiently meets the long-term needs of communities and delivers value for taxpayer dollars. Those in the road-building industry see quality as a road/ street/highway that conforms to certain design or construction standards while providing excellent long-term performance. The driving-public sees quality in congestion relief, increased mobility, and safety benefits. With the increased demands on today’s transportation agencies, continuous quality improvements are essential for a successful program. Meeting our quality goals ultimately depends on each of us. To that end, CalAPA is committed to working with owner agencies at all levels to provide the best possible value for building and maintaining California highways, roads and streets. Specific examples of CalAPA’s commitment are seen in its on-going work with Caltrans to develop joint training and certification program for technicians and refinement of the new Section 39 (hot mix asphalt) specification. To ensure both agency and industry personnel are “up to speed” CalAPA sponsors biannual technical conferences, and offers a number of seminars on such critical topics as the new Section 39 (hot mix asphalt) specifications, paving 101, and maintenance treatments. On the horizon are two seminars of particular interest to paving contractors: the recently implemented Caltrans smoothness specification, with particular focus on the ProVal software used to analyze the inertial profiler data; and the pilot “intelligent compaction” specification. As we often say at CalAPA, what you don’t know could cost you! The corollary is quality doesn’t cost, it pays! In the meantime, we hope you enjoy this special 2016 Forecast issue of our association’s magazine. You’ll find an exclusive interview with the governor’s top transportation official, insight on the future direction of our economy and our industry, and other reports to help you be aware of what is happening in the asphalt pavement industry. We hope you have a successful year, and we look forward to contributing to that success. Sincerely,
Rita B. Leahy, PhD, P.E. Technical Consultant, CalAPA 4
California Asphalt Magazine • 2016 Forecast Issue
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Contents 4
Publisher’s Letter
10
UCLA Anderson Forecast
16
Despite Many Flaws, Congress Finally Delivers On A Long-Term, $305 BIllion Surface Transportation Bill
18
Optimism Holds Steady In Our 6th Annual ‘Better-Worse’ Survey
20
Q & A With Brian Kelly - Secretary, California State Transportation Agency
26
Martin Brothers Construction
32
A Focus on Safety, Customer Satisfaction & Excellence Since 1996
Page 10
Page 20
Fall Asphalt Conference Brings Together 270 Industry, Agency Representatives
On the Cover:
Photo illustration of California State House bursting with new highway bill funds.
Page 26
CALIFORNIA ASPHALT PAVEMENT ASSOCIATION www.calapa.net
HEADQUARTERS: EXECUTIVE DIRECTOR: DEPUTY EXECUTIVE DIRECTOR: MEMBER SERVICES MANAGER: TECHNICAL CONSULTANT: GUEST PUBLISHER: PUBLISHED BY: GRAPHIC DESIGN: CONTRIBUTING EDITORS: ADVERTISING SALES:
P.O. Box 981300 • West Sacramento • CA 95798 (Mailing Address) 1550 Harbor Blvd., Suite 211 • West Sacramento • CA 95691 • (866) 498-0761 Russell W. Snyder, rsnyder@calapa.net Tony Grasso, tgrasso@calapa.net Sophie You, syou@calapa.net Rita Leahy, PhD., P.E., rleahy@calapa.net Rita Leahy, PhD., P.E., rleahy@calapa.net Construction Marketing Services, LLC • P.O. Box 892977 • Temecula • CA 92589 (909) 772-3121 • Fax (951) 225-9659 Aldo Myftari, aldo@ironads.com, Yesenia Ramirez Brian Hoover, CMS & Russell W. Snyder, CalAPA Kerry Hoover, CMS, (909) 772-3121 • Fax (951) 225-9659
Copyright © 2016 – All Rights Reserved. No portion of this publication may be reused in any form without prior permission of the California Asphalt Pavement Association. California Asphalt is the official publication of the California Asphalt Pavement Association. This bi-monthly magazine distributes to members of the California Asphalt Pavement Association; contractors; construction material producers; Federal, State and Local Government Officials; and others interested in ensuring that asphalt remains the high quality, high performance pavement choice in the state of California.
6
California Asphalt Magazine • 2016 Forecast Issue
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'
2016: Full Employment' With Modest Inflation The UCLA Anderson National Forecast By David Shulman Senior Economist, UCLA Anderson Forecast December 2015
W
ith the unemployment rate at 5 percent reported for October, the economy is operating at or very close to the traditional definition of full employment. (See Figure 1). Employment growth remains healthy with the economy generating jobs at a 200,000 a month clip that will bring with it further declines in the unemployment rate to 4.6 percent. The growth in real inventories declined from $113.5 billion in the second quarter to a more normal $90.2 billion in the third quarter. With the bulk of the inventory correction behind us, we anticipate that real GDP will grow at a 2.9 percent annual rate in the current quarter and grow at a 3.1 percent year-over-year pace in 2016, the highest since 2005. The seemingly high 3.8 percent growth we are forecasting in the first quarter of 2016 is due to the temporary end of the “sequester” just agreed to by Congress that will trigger a surge in federal spending that quarter. Our preliminary view for 2017 is that growth will slow to 2.6 percent as a result of the tightening labor market and the move toward interest rate normalization. Higher Wages and Inflation The tightening labor market will bring with it the long-awaited increase in employee compensation. Instead of increasing at the 2010-2015 average of 2.1 percent a year, compensation is forecast to increase at a 3.5 percent and 4.2 percent rate in 2016 and 10
2017, respectively. Anecdotal evidence coming from the retail, construction, meat packing and professional services sectors indicate that wages are already rising well above what the official data is reporting. It is our expectation that oil prices will begin to rebound in 2016 as domestic output from the very short-lived fracking wells is cut by about a million barrels a day and the intense budget pressures on OPEC and Russia lead to some degree of output restrictions. (See Figure 2) Further, as we have noted in the past, housing costs are already rising at a 3 percent pace coming from the continued tightness in the rental market. As a result, inflation, as measured by the Consumer Price Index (CPI), will ramp up to 2.1 percent in 2016 and 3.4 percent in 2017. Perhaps more important, the core CPI, which excludes food and energy are forecast to increase 2.3 percent and 2.6 percent in 2016 and 2017, respectively. The Fed is about to get the inflation it has been waiting for. The Fed to Start Normalizing Interest Rates Seven years ago this month, in response to the rapidly metastasizing financial crisis, the Federal Reserve embarked upon its zero interest rate policy and later adopted three massive programs of quantitative easing. With the financial emergency long over, the unemployment rate indicating near full-employment
Figure 1
Unemployment Rate 2007Q1- 2017Q4F
(Percent) 10% 9% 8% 7% 6% 5% 4%
2007
2009
2011
2013
2015
2017
Sources: U.S. Bureau of Labor Statistics and UCLA Anderson Forecast
Figure 2
Oil Price, West Texas Intermediate Crude, 2007Q1 – 2017Q4
(Dollars/Barrel) $140 $120 $100 $80 $60 $40
$20 2007 2009 2011 2013 2015 2017 Sources: Commodity Research Bureau and UCLA Anderson Forecast
and the likelihood that inflation will soon approach its 2 percent target, we expect the Fed to begin normalizing interest rates by increasing the Federal Funds rate this month. Thereafter, we anticipate that the initial pace toward the normalization of policy will be gradual, but if we are correct about our outlook for inflation, the Fed will begin to speed up the process. Thus, we forecast that by the end of 2016 the federal funds rate will be about 1.5 percent and it will approximate 3.25 percent at the end of 2017. The Consumer in the Driver’s Seat Driven by a strengthening labor market and an improved balance
California Asphalt Magazine • 2016 Forecast Issue
Figure 3
Light Vehicle Sales, 2007Q1 – 2017Q4, In Millions of Units (Millions of Units) 20
Figure 4
(Thousands of Units, SAAR) 1600
18
1400
16
1200
14
1000
12
800
10
600
8
2007 2009 2011 2013 Sources: BEA and UCLA Anderson Forecast
2015
Housing Starts, 2007Q1 -2017Q4
2017
sheet, the consumer is once again playing its leading role in the economy. Real consumption spending is expected to increase by 3.2 percent this year and again in 2016. Evidence of the robustness of consumer demand is coming from red-hot automobile sales where it now appears that selling rates on the order of 18 million units might be the new normal. (See Figure 3) Further, as we noted last quarter, the new housing market is rapidly improving and we anticipate that housing starts will exceed 1.4 million units in both 2016 and 2017 (See Figure 4) compared to an estimated 1.13 million units this year. If we are wrong here it will not be due to higher interest rates, but rather to a shortage of construction workers that is already hampering the delivery of new homes. Nonresidential Construction: A Tale of Two Markets Investment in nonresidential construction stalled in 2015. (See Figure 5) While growing in most categories, investment in mines and wells, almost all of it related to oil and gas drilling, collapsed under the weight of the 60 percent decline in oil prices. For example, from the 4Q2014 through the current quarter
400
2007 2009 2011 2013 2015 2017 Sources: U.S. Department of Commerce and UCLA Anderson Forecast
of this year, real investment in mines and wells will have declined from $137 billion to $70 billion, a decline of nearly 50 percent. On a purely arithmetic basis, this decline whacked 0.4 percent off 2015 real GDP. In contrast, commercial construction of office buildings, shopping centers, and warehouses is ramping up in response to growing demand for modern offices and the need to improve the retail supply chain. Since the low in the 1Q2011 to the third quarter of 2015, real investment in commercial construction has increased from $63 billion to $108 billion. Further, because this sector is still just ramping up, we forecast real commercial construction spending to be $145 billion in 2017, still well below the $191 billion recorded in the long ago year of 2000. Conclusion Continued job growth along with wage increases will power consumption in 2016 leading to the first year of greater than 3 percent growth in real GDP since 2005. Higher wages along with a modest rebound in oil prices and higher housing costs will push the inflation rate above 2 percent leading the Federal Reserve to embark on a gradual tightening cycle that will begin this month.
California Asphalt Magazine • 2016 Forecast Issue
Figure 5
Real Investment in Nonresidential Construction, 2007Q1 -2017Q4F
(Billions 2009$) $550 $500 $450 $400 $350 $300
2007
2009
2011
2013
2015
2017
Sources: U.S. Department of Commerce and UCLA Anderson Forecast
Strength will be evidenced in housing and commercial construction along with a booming automobile market. The collapse in oil-related capital spending will come to an end next year and defense spending will be increasing after five years of decline. CA 2016 UCLA National Forecast Economic Projections • Full Employment at 200,000 Jobs Per Month • Real GDP Growth of 3.1% • Employment Compensation Increase of 3.5% to 4.2% • Unemployment Rate Down to 4.6% • Oil Prices Rebound • Inflation up to 2.1% in 2016 and 3.4% in 2017 • Core Consumer Price Index at 2.1% in 2016 and 3.4% in 2017 • Federal Funds Rate at 1.5% by end of 2016 and 3.25% by end of 2017 • Real Consumption Spending up by 3.2% • Automobile Sales up to New Normal of 18 Million Units • Housing Starts to Exceed 1.4 Million • Commercial Construction at $145 Billion in 2017 • Real Defense Spending to increase by 2.7%
11
Will California's Expansion Stall as it Zeros in on Full Employment? By Jerry Nickelsburg Senior Economist, UCLA Anderson Forecast Adjunct Professor of Economics, UCLA Anderson School December 2015
Chart 6
Chart 5
SA Real Sales Tax Receipts
Billions
3,500 3,000 2,500
70 60 40
1,500
30 20
1,000
10
500 FY '12
FY '13
T
he California economy has been humming along with rates of growth in excess of the U.S. and with employment growth pushing the unemployment rate, now at 5.8 percent, toward a full employment (around 5 percent). In previous California reports we have argued that once full employment is reached, and we expect that to happen months rather than years from now, that growth will be dependent on increases in the size of the workforce, increases that will be limited primarily by population growth. In this report, we review the economic data for California from the past three months for signs of continued strength or weakness and indications of what the coming two years might bring. The short answer is that there is nothing in the data we examine to suggest a
FY '14
FY '15
2014
FY '11
2012
FY '10
2010
FY '09
2008
FY '08
2006
FY '07
2004
FY '06
2002
0
Sources: California Department of Finance, US Bureau of Labor Statistics, Anderson Forecast
12
80
50
2,000
0
California Real Personal Income Tax Revenue (Billions of FY '09$, S.A.)
Sources: California Department of Finance, US Bureau of Labor Statistics, Anderson Forecast
near-term stalling or decline in the growth of employment and income in California. Looking forward, the U.S. forecast is for continued growth in consumption and, therefore, more demand for manufactured goods from the industrial centers of Asia. Thus, the trend in imports is expected to continue. We expect the Japanese and Canadian economies to improve while the Chinese economy will probably experience some difficulty in the coming two years. Nevertheless, the decline in exports should at worst level off and logistics activity surrounding the ports ought to continue to grow. For the regional airports of Ontario, San Jose Mineta, Long Beach, and San Diego Lindberg cargo volumes (inbound plus outbound) have been growing at double-
digit rates over the period September 2014 to September 2015. Oakland, and John Wayne airport volumes grew in the low single-digits and cargo shipments through Bob Hope Airport in Burbank declined. On balance, cargo growth in the regional airports, perhaps in large part reflecting package shipment to consumers engaged in e-commerce, have been solid and do not reflect any near-term weakness in consumption in California. International passenger arrivals at LAX and SFO have reached record heights over the past year. Arrivals at LAX are up by over 20 percent and at SFO by over 25 percent. With a forecast for a slightly weaker dollar and improvement in the European, Canadian and Japanese economies it is expected that these numbers will form a new base for international
California Asphalt Magazine • 2016 Forecast Issue
Chart 7
Chart 8
California Regional Job Gain (Oct. 2014 to Oct. 2015, SA)
California New Residential Permits (3 Mo. Moving Average, No. of Units)
6.0%
25000
5.0%
20000
4.0%
15000
3.0% 2.0%
10000
Sources: U.S. Bureau of The Census, Anderson Forecast
tourism growth over the forecast horizon. However, as pointed out in the national forecast, if the recent events in France and elsewhere engender a less robust demand for international tourism, then the recent gains could erode. For sales taxes, there has been a shallow upward trend. The level of sales tax receipts adjusted for inflation is still below the pre-recession peak even though sales tax rates have increased (Chart 5). However, residential construction and the outfitting of new homes is historically a substantial contributor to sales tax receipts. The shallow upward trend is expected to continue with increased consumption in the coming two years and a gradual rise in residential construction. The personal income tax receipts are a bit more difficult to decipher, as they are confounded with the high-income earner Prop 30 surcharge. Nevertheless, there is a solid upward trend in income tax revenues strongly suggesting income and state GDP are increasing (Chart 6). This is consistent with U.S. Bureau of Economic Research data (which occurs with a one year lag) and is expected to continue over the forecast horizon.
SJ Valley
Jefferson
East Bay
U.S.
Los Angeles
Mid Coast
Sac. Delta
Orange County
San Diego
Inland Empire
San Francisco
2015
2014
2013
2011
2012
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0.0% 1990
0
Silicon Valley
1.0%
5000
Sources: California EDD, Anderson Forecast
Residential Construction In response to low vacancy rates and increasing rents, residential construction continues to grow in California. The number of new housing units permitted increased over the last three months to levels last seen at the end of the 1990s (Chart 7). The mix remains dominated by multifamily housing continuing a trend evident since the end of the Great Recession. Both our forecast and the results of the Allen Matkins/UCLA Anderson Forecast commercial real estate survey are consistent with continued improvement in construction over the next three years. Employment California employment gains continue to impress. Over the last three months, nonfarm payroll employment growth has exceeded the U.S. by 1.0 percentage point and by 0.9 percentage points over the past year. This has resulted in the unemployment rate falling to 5.8 percent. These gains are now widespread (see Chart 8) and have taken the state to new employment heights; 5.2 percent above the previous peak. Though we expect growth rates to slow as the state moves closer to full employment in 2016, the fundamentals that have been driving the Golden State’s
California Asphalt Magazine • 2016 Forecast Issue
employment, remain in place and no particular weakness or imbalance has appeared. The Forecast The current forecast is for continued steady gains in employment through 2017. The increase in US growth rates will continue to fuel the local economy. What this means is a steady decrease in the unemployment rate in California over the next two years. We expect California’s unemployment rate to be insignificantly different from the U.S. rate at 4.9 percent by the end of the forecast period. Our estimate for the 2015 total employment growth is 2.6 percent, and for 2016 and 2017 the forecast is for 2.1 percent and 1.4 percent. Payrolls will grow more at about the same rate over the forecast horizon. Real personal income growth is estimated to be 4.3 percent in 2015 and forecast at 3.4 percent and 3.2 percent in 2016 and 2017 respectively. The information provided in this article is only a small excerpt of the UCLA Anderson Forecast for the Nation and California. To review the UCLA Anderson Forecast in its entirety, please visit their website at www.uclaforecast. com or call (310) 825-1623. CA 13
14
California Asphalt Magazine • 2016 Forecast Issue
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Despite many flaws, Congress finally delivers on a long-term, $305 billion surface transportation bill By Russell W. Snyder
It weighs in at a hefty 1,300 pages, is filled with compromises, and has a goofy name, the “FAST Act.”But national asphalt industry advocates nonetheless were pleased with the new long-term federal surface transportation bill signed into law by the president after languishing in Congress for years. “This is a very good bill for the asphalt industry,” declared Jay Hansen, executive vice president of the National Asphalt Pavement Association during an industry briefing held shortly after the bill passed. He credited a broad-based grassroots campaign, heartily supported by the asphalt pavement industry, with keeping the pressure on Congress to act. The $305 billion, five-year bill signed into law by President Obama on Dec. 4, will not only provide an increase in funding for roads, but also the long-term certainty to help transportation planners develop improvement projects with the expectation that the money will be there to pay for them. For the record, the FAST Act is shorthand for “Fixing America’s Surface Transportation” Act. The final bill signed by the president carried the designation Public Law 114-094, and went into effect immediately.
16
According to NAPA, the bill represents a substantial increase in funding for roads over current levels, certainly not to the levels sought by transportation advocates but still a notable improvement over the past few years. The passage of the bill should also place additional pressure on states, such as California, that have not yet developed a long-term
transportation investment strategy. According to an internal Caltrans memo dated Dec. 11 and obtained by California Asphalt magazine, in fiscal-year 2015 California received $3.54 billion in Federal Highway Administration (FHWA) apportionment funding. “For FY 2016, which began this October, California will receive $3.72 billion; and California
California Asphalt Magazine • 2016 Forecast Issue
can expect to receive an annual average of $3.88 billion in FHWA apportionment funding from FY 2016-2020.” The plan was certainly no one’s favored solution, but nonetheless generated a fair amount of back-slapping by elected officials no doubt weary of persistent nagging by good-roads movement. “This is an historic moment for the American people,” U.S. Sen. Barbara Boxer, D-Calif., the ranking member of the Senate’s Environment & Public Works Committee, declared on Twitter when the bill finally broke through the Congressional logjam. It represented a victory of sorts for Boxer, who has announced she will retire when her current term ends. She was presented with a “Legislator of the Year” award by the asphalt industry in 2013 for her work pushing through the previous surface transportation act.
To be sure, the road to the latest transportation bill was a winding one, with enough drama to fill a reality TV show. Held hostage at several junctures by anti-tax hardliners, with one Senate version called a “piece of (expletive)” by former House Speaker John Boehner, and more recent versions denounced by others as containing budget gimmickry. The bill nevertheless kept gathering unstoppable momentum and on the day or reckoning, Dec. 3, it sailed through the House on a 359-65 vote, and similarly cleared the Senate later the same day on an 83-16 vote. Critics pointed out that there was nothing “fast” about the bill, and that it included a grabbag of goodies to please various constituency groups, including funding for Amtrak and restoring the controversial Export-Import Bank. An estimated $281 billion was allocated for highway and road projects, according to the National Asphalt Pavement Association (NAPA). Both California Senators, Boxer and Dianne Feinstein, voted “yes” on the measure, as did nearly all of California’s House delegation. The lone “no” votes were cast by Republican Reps. Darrell Issa (CA-49), Tom McClintock (CA-4) and
California Asphalt Magazine • 2016 Forecast Issue
Dana Rohrabacher (CA-48). Not casting a vote were Democrats Pete Aguilar (CA-31) and Loretta Sanchez (CA-46) who, it should be noted, were preoccupied with a mass shooting in San Bernardino. McClintock, a longtime critic of how transportation dollars are spent, both when he was in the California Legislature and now in Congress, explained his “no” vote in a statement posted on his webpage: “The Highway Trust Fund – accent on the “Trust” – was a promise made to highway users that the gas taxes they paid at the pump would be used for highways. Period. That promise was broken long ago and now shattered by this act. HR 22 is a five-year, $305 billion highway bill, but only $207.4 billion will be spent on anything remotely resembling highways (and much of that wasted on environmental mitigation, inflated labor costs and highway beautification projects). $48.7 million will be raided to prop up failing mass transit systems. (I have nothing against mass transit; I simply believe that highway users should pay for highways and mass transit users should pay for mass transit). “But in addition to raiding our highway taxes, this bill demands more revenues derived in a variety of undesirable ways. It sells off 66 million barrels from the Strategic Petroleum Reserve at the very bottom of the market (a board of directors that managed its assets so recklessly would be sued); hires private debt collectors to turn the screws on taxpayers (doesn’t that sound like fun?); raids the Federal Reserve of funds set aside to protect depositors and raids interest paid to large banks that are required to purchase Federal Reserve stock. “Oh, and to add insult to injury, this “highway bill” reauthorizes the Export-Import Bank, a posterchild of crony capitalism that puts U.S. taxpayers at risk for loans made to foreign corporations to buy American products with which to undercut American companies. If there is any question why Congress is held in such low esteem, I submit HR 22 as Exhibit A.” Despite its many flaws, most agree that the bill will provide some stability in transportation funding over the next five years, allowing agencies to plan anddeliver projects and the construction industry to have more certainty for their businesses. Larger policy questions on a coming up with a sustainable source of funding will be left for another day. CA Russell W. Snyder is the executive director of the California Asphalt Pavement Association.
17
Optimism holds steady in our 6th annual
‘better-worse’ survey
By Russell W. Snyder
industry decidedly more optimistic than agencies The results are in. The sixth annual CalAPA “Better or Worse” survey shows respondents are generally optimistic about the coming year even though there still remains a healthy dose of skepticism about prospects for 2016. The single-question, nonscientific poll of more than 2,500 Asphalt Insider newsletter subscribers, conducted in December, indicated a slight leveling off of the spike in optimism that marked last year’s survey, with pessimists holding steady. A record number of people, 247, took the survey this year. Overall, the percentage of respondents who predicted 2016 would be better than 2015 was 47 percent, down slightly from 51 percent last year, but a substantial improvement over the 20 percent figure in 2011. Those who believed next year would be worse than this year held steady from a year ago at 14 percent. Of those who said 2016 would be about the same as 2015, 31 percent selected that choice, holding steady from the 31 percent level of a year ago. Only 3 percent of respondents chose not to answer or said they didn’t know. The survey question is purposefully vague: “For your company or organization, how do you think 2016 will compare to 2015?” However, most of the
18
voluntary comments offered up by survey respondents centered around how much work is expected in the coming year. The answer varied by company, agency and region, reflecting the size and diversity of California’s economy, which if it were a country would rank as the world’s eighth largest. For the first time, survey respondents were asked to place themselves in a category, and nearly a third identified themselves with a state (12.5 percent) or local/regional agency (21.4 percent). That proportion mirrors the rough percentage of agency personnel who attend CalAPA pavement conferences each year. The other respondents included asphalt producers (17 percent), paving contractors (11.7 percent), emulsion suppliers (12.5 percent), refiners (2 percent) consultants (12.1 percent), testing labs (3.6 percent), with smaller percentages rounding out the rest of the respondents. Industry survey-takers were decidedly more optimistic than agency personnel. For example, 34 percent of local agency personnel predicted next year would be better, 18 percent said worse and 41.5 percent said “about the same,”compared to 47 percent of asphalt producers who predicted next year would
be better, only 7 percent who thought it would be worse and 45 percent who thought it would be about the same. As in previous surveys, the weather largely depends upon where you are standing. Some respondents commented that work was booming, while others were very disappointed. (“I keep hearing how much work there is, but I don’t see the work” wrote one.) Economists similarly note that California’s economic recovery has been uneven around the state. “Don’t see much work bidding,” wrote one asphalt producer, while another lamented, “construction spending continues to decline … environmental regulations continue to drastically impact operating costs.” One local agency representative said simply, “economy is better,” while another wrote “less funding than the previous year.” One state agency respondent said, “multitude of large projects coming out. It will be a very busy year for construction.” Elsewhere, a paving contractor wrote, “We had a good year. We have a good backlog for next year.” A testing lab offered, “Construction is still booming, although several large projects are completing.” CA
California Asphalt Magazine • 2016 Forecast Issue
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Brian Kelly
Secretary, California State Transportation Agency By Russell W. Snyder, Executive Director, California Asphalt Pavement Association (CalAPA)
Editor’s Note: Brian P. Kelly is the secretary of the California State Transportation Agency (CalSTA), a newly reorganized agency that replaced the former Business, Transportation & Housing Agency (BT&H) with a new agency focused solely on transportation. Kelly was appointed by Gov. Jerry Brown to lead BT&H in March of 2012, and on July 1, 2013 he was named to lead the new CalSTA. As acting secretary of BT&H he oversaw 12 departments and several economic development programs and commissions consisting of more than 45,000 employees and a budget of $18 billion – a budget larger than most states in the nation. The CalSTA portfolio remains one of the largest in the State of California, and its operations address a myriad of transportation issues that directly impact the state’s economic vitality and quality of life, including public safety, construction and maintenance, and intercity and highspeed rail. Kelly has been at the center of most of the major transportation policy decisions in the state of California for the past decade and a half, having served as chief transportation policy consultant for four successive state Senate President Pro Tempores. Kelly was executive staff director for Senate President Pro Tempore Darrell Steinberg from 2008 to 2012. He was executive principal consultant for Senate President Pro Tempore Don Perata from 2004 to 2008, principal consultant for Senate President Pro Tempore John Burton from 1998 to 2004, and assistant consultant for Senate President Pro Tempore Bill Lockyer from 1995 to 1998. He sat down recently with California Asphalt magazine for a wide-ranging interview on transportation funding, Caltrans, the interaction between transportation and the environment and Gov. Jerry Brown’s transportation legacy. California Asphalt Magazine: On Dec. 4, President Obama signed the new surface transportation act into law. Known as the “FAST” Act, for “Fix America’s Surface Transportation,” the five-year bill brings a certain amount of long-term certainty to federal transportation funding after years of short-term patches. The $305 billion bill includes $3.72 billion for California for the current fiscal year, with an average of $3.88 billion in Federal Highway Administration (FHWA) apportionment funding from fiscal-year 2016 to 2020. The bill is somewhat controversial because it still does not address the long-term needs of the federal Highway Trust Fund, and is paid for through nontraditional sources of revenue. What is your reaction to the federal bill?
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Brian Kelly: I would say that passage of the federal bill helps stabilize funding, as long as the federal dollars show up. One thing that the federal government did not tackle that we still have to tackle here in California – and 22 other states have tackled in the last couple of years – is really supplying a stable source of funding dedicated to transportation long-term. While the federal government acted, some of the dollars they are looking at come from outside transportation sources. There will be political fights in Congress over some of those dollars, and whether or not they will ultimately get to transportation, so I think we have to stay very vigilant with the federal government to make sure those dollars stay in transportation. Beyond the five years, Congress is still going to have to, at some point, reckon with the condition of the Highway Trust Fund and the fact that the federal gas tax is not keeping pace with demands. I think there is more work to do in
California Asphalt Magazine • 2016 Forecast Issue
the long-term, but over the next five years we feel pretty good that they came up with about $305 billion, which is about a 10 to 15 percent increase expected to California, as long as all the dollars show up in the next five years. CA: So, what does this mean for California? It would seem that, now that we have some certainty on federal funding, it will bring renewed focus on the state of transportation funding in California to, as you mentioned, come up with our own long-term transportation funding strategy. BK: Here in California, we started a conversation last year on the condition of our assets and the need to invest in them. The governor identified a major deferred maintenance problem, and last year he put on the table a package that is a combination of revenues and reforms. Our plan would generate about $3.6 billion to $3.7 billion per year, which is $37 billion over 10 years, to invest in “Fix it First” strategies in California, and to invest in our trade corridors. We want to do things like fix a number of bridges that are in distressed condition. We want to get our roadways in 90 percent “good” condition, which is a bIg improvement when you consider that today only about 59 percent of roads are in “good” condition. We have culverts in the state that allow water to pass under our roadways that are not in good condition, and those can cause both flooding and some issues with our roadways, as we saw on Interstate 10 in Riverside County earlier in the year. Our proposal is to get those culverts in 80 percent “good” condition – today it is much less than that, something like 39 percent need to be replaced or repaired. So, there’s a lot of work to do. CA: It’s what we like to call our critical transportation infrastructure. In general, most people don’t think much about it until it fails. BK: We have a lot of work to do. We put our proposal on the table last year. That work will continue into January. There is a conference committee going on in the Legislature. I just spoke with Senator Jim Beall (D-San Jose), the chair of the conference committee, earlier today, about his conversations with other legislators. I think people can expect the governor to continue to push for a package of revenues and reforms that will stabilize transportation funding over the next 10 years and get California’s assets in the condition they need to be in. CA: With regard to the federal bill, our industry shares your concern that the money comes from non-traditional, nontransportation sources and departs from many decades of “pay as you go” investments, largely by the users of the transportation system. It seems like, on the state level, we are trying to have an adult conversation about transportation funding and where those dollars should come from. Our current system of funding in California is a crazy patchwork of taxes, fees, loans and other sources of revenue that is both complex and volatile. How do we in California build consensus on a reasonable approach going forward?
California Asphalt Magazine • 2016 Forecast Issue
BK: I think the simplest construct for transportation funding is what we began with 90 years ago in California. I think it was 1923 when we first did a gas tax, and that proposition was those who use the system should pay for the system improvements. And that has served us well for a long time. We think we have to stay at a user fee-based system for transportation, and not start relying on things like the general Brian Kelly fund to pay for it because the Secretary, CalSTA. general fund pays for a lot of things. It pays for education, it pays for health care, it pays for the social safety net, it pays for Corrections, public safety. It pays for an awful lot of things. Having transportation compete with those other very important areas of investment for what are ultimately scarce general fund dollars has not served transportation well. Unfortunately, in the last 15 years, we have tried to fund transportation in the most politically easy way possible, which is to say “let’s move more general fund money into it.” But that has resulted in years of volatility, money being borrowed back and forth between the general fund and transportation accounts, and it makes it very difficult to plan and invest transportation dollars over the long term. So, what the governor placed on the table in terms of transportation was a proposal to go back to what has always worked, that is, relying on user fees. In our case, we have a diesel fuel proposal, the gas tax proposal, and car fee that acts as kind of a proxy for the system. If you own a car, you’re probably using the transportation system in California. We do a set fee on that, and we would invest it entirely in roads, bridges, neighborhood streets, to improve those things. And we put on the table a Constitutional Amendment to dedicate those funds to the improvement of transportation assets, so the funds can’t be used for other purposes. As I said, it is a return to what has always worked. It’s desperately needed in a state like California, where we have so much demand on our transportation system, and we think it is a much better way to fund transportation rather than to rely on the competition for the general fund dollars to fund transportation. CA: I know our industry also is in agreement with that general principal, and we hope that carries the day. BK: Me too! CA: Gov. Jerry Brown is certainly one of the most interesting politicians in the history of California. Whether you voted for him or not, whether you agree with him on his positions or not, there’s no argument that he will leave a lasting imprint on the state. What do you think his legacy will be when he wraps up is unprecedented fourth term as governor? [ Continued on page 22 ]
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[ Continued from page 21]
BK: I think he has burnished a fine image, and a well-deserved one, as a problemsolver. It started with him being a fresh breath of air in the Legislature when we were at the height of our fiscal crisis, the budget was a mess and the economy was in tatters. The governor came in and had seen it all before, having spent 30-40 years in politics, and having been the governor for two terms 30 years ago. When he came forward, people were looking for leadership, they were looking for a grownup in the room, and he served that purpose. And working with the Legislature they made a series of very difficult decisions to stabilize California’s economy and our budget. They cut programs and they raised revenue. And, as the governor promised in his first term, he was going to go to the voters and ask them about raising the revenues, and they agreed. And CalSTA Secretary Brian P. Kelly speaks at a transportation funding event in Los Angeles last August. that has really paid off well for California’s economic condition and the budget’s fiscal condition. So he is, definitely, a problemsolver. He thinks outside the box in almost all things. Every time be glamorous, but certainly important. Our industry really I talk to him I leave the conversation with two overwhelming appreciates the governor’s leadership in that area. feelings: The first one is he always makes me think of a problem in a new way, with a fresh perspective, so I have to be creative BK: That is a big idea, isn’t it? in problem-solving, and secondly, I’m sure I have not answered all his questions (laughs). So those are the two feelings I always CA: It’s huge! We’ve been kicking the can down the road on this have when I’m done talking to the governor. for far too long. CA: And what about his transportation legacy? BK: In terms of his legacy in transportation, I think it will be one of not being afraid of, and embracing, big things. High-Speed Rail is looked at as fairly controversial here in California, but, you know, it is kind of routine in a lot of countries around the world because it is a service that works. We are trying to become the first state in the nation to have High-Speed Rail available for our people. The timing, in my view, couldn’t be better in a state where more and more people are looking for new ways to get around. And we have to find a way to move 38 million to 40 million Californians in a way that’s clean and efficient, so we can meet our greenhouse gas emission and environmental objectives. So, in my view, the governor’s legacy in transportation will be one of big ideas, big implementation and hitting that right combination of meeting people’s mobility needs while we also meet our environmental objectives. CA: And then there is a small idea that is also a big idea, “Fix it First,” that the governor has also embraced. Properly maintaining our existing infrastructure, which has been bought and paid for by previous generations. That may not
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BK: On the “Fix It First” side, I mentioned earlier that our funding package is sort of getting back to basics, right? User fee based on transportation. What do we fund it on? Well, before we build a lot of new things that require maintenance and rehabilitation, let’s make sure we’re taking care of what we have. I think that’s a philosophy that a lot of people can identify with, particularly anyone who owns a home or a car. They know that if the roof starts leaking in the house, you’ve got to repair it or you’re going to have big, big trouble later. The governor has taken that idea and applied it to our structures that mostly were built 30 or 40 years ago and still have huge demand on them. So, his “Fix it First” philosophy is really about catching up on something that we’re really ignored for about two-and-a-half decades, and now it’s time to focus on that, so we leave the next generation with assets that are in much better working condition than they are today. CA: Let’s talk about Caltrans. It’s a large, complex agency but with a large impact on the state’s mobility, economy and quality of life. Please give us your thoughts on the department as it stands today and the challenges it faces going forward. BK: I think Caltrans in many ways is like other big departments and bureaucracies in government. Sometimes they are looked at
California Asphalt Magazine • 2016 Forecast Issue
as slow to adopt new ideas, and slow to change, and often looked at as too big. You hear that a lot about Caltrans. But I must say that under (Caltrans Director) Malcolm Dougherty’s leadership, working closely with Malcolm and his team, we asked for an external review of Caltrans back in 2013.
CA: We know it is not easy to open yourself up to the kind of scrutiny of an independent review, and publish the findings for all to see, or to conduct a stakeholder survey and publicize the findings. But it’s all part of the process of making a genuine effort to get better.
CA: That was the review by the Smart State Transportation Initiative at the University of Wisconsin. Several representatives from our industry were interviewed for the 101-page report, which was released in 2014.
BK: My view on that is we’re always striving to improve, to get better. I never forget who is paying our paychecks – it is the taxpayers of California, and we have an obligation to serve them and serve them well, and continue to strive to be better, to be the best we can, on behalf of California’s taxpayers. And that means, from time to time, you’re going to have to look in the mirror, see the warts and everything, and then you’re going to have to figure out how you’re going to get better, how you’re going to improve things. We needed the frank assessment to do it. Not everybody agreed with everything that was in the external review, but I think there was enough truth in that review that really pushed us, and the department – rightfully – to make improvements.
BK: I’ve been working very closely with Malcolm on really turning the organization into more of a performance-based organization, an organization that embraces change, that understands that we have new demands on our transportation system in California, and it’s not so much about only building the highway, or counting how many cars we can get through a segment. It’s really now about how do we reliably move Californians to their destination and do so in a way that allows us to achieve other important objectives. Mobility is one, but so is safety, so is air quality, so is greenhouse gas reduction, and so is sustainability over the long term. So I’ve talked a lot to Malcolm and his executive team about this. Malcom and I have toured the state and visited 10 of the 12 districts so far, and we will complete that tour of all 12. CA: And they’re all different, aren’t they? Each has its own distinct culture, its own personality. It’s quite fascinating. BK: Absolutely. They’re all different. But we’re talking to them about the need for change, the new challenges facing the department. Before I took this job I spent 18 years in the Legislature and I worked with Caltrans often during that time. One of the interesting things I learned during that time was that it was hard to understand what Caltrans was doing. They had challenges in how to communicate. I think we are making strides in that area, too. I want the department not to be afraid to communicate not only its successes but its failures, and learn from the failures, and improve. And with the successes, take a bow and recognize that’s what we’re supposed to be doing for our fellow Californians. It’s a work in progress. But Malcolm has been a very good partner on it in trying to help implement change, and I think we’re making progress in a lot of areas, and it’s going to take continued stewardship over moving the department, but, again, I think there’s many things the department does very well, and I’m always very proud of the department, for example, when faced with a state disaster or some sort of problem, and it’s time for Caltrans to act, they are always so responsive and so quick. That’s when they are at their absolute best and I value that greatly. CA: No question about it.
CA: And we, as an industry, probably need to do a better job of recognizing progress when we see it, as well as pointing out areas we’re not happy with. BK: That is good, because we do want to show where we are making progress, making improvements. We do want to get a sense that it’s not just us saying it, but the folks on the other side of the table are sharing our view that, it’s not perfect, but we’re listening, we’re being responsive, it’s getting better. CA: You mentioned the governor’s priorities about sustainability, reducing greenhouse gasses and other “green” initiatives. We were pleased to see asphalt featured so prominently in Caltrans reports on how the department is pushing new and innovative “green” initiatives. Reclaimed Asphalt Pavement (RAP), Warm Mix Asphalt, the use of ground-up tires in pavement mixes, longlife asphalt pavement are just a few of those initiatives that our industry has partnered with Caltrans on. We see a clear nexus between the governor’s environmental objectives and many of those “green” pavement initiatives. BK: As members of your association will know more than most, we can make some of the biggest strides and the most gains on our greenhouse gas objectives and, generally, our environmental objectives, with materials improvement. More recycling. More use of rubber. Where we can maximize that stuff, and where it makes sense, and we’re still getting a high-quality product, it’s important that we’re able to work together to see the potential and innovate, right? One thing about California, it’s an innovative state, and we need to do that as part of our strategy to meet all of our objectives in transportation today.
BK: But I do think we are working to make the department more responsive in other areas, more accountable and more performance-based, and I think we’re making progress and I’m happy with the direction we’re heading.
CA: You have been running in transportation circles for a number of years now, and have been in your current position since 2012. What have your learned personally in your current job that
California Asphalt Magazine • 2016 Forecast Issue
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perhaps you didn’t fully appreciate coming into the job? How is your current vantage point different from your experience in the Legislature? BK: I think the biggest difference between the legislative branch of government and the executive branch of government is, the legislative is a lot of vision, and the executive branch is a lot of implementation. Implementation is not easy. It’s hard. Often it takes a lot of time to move forward on things. I guess one of the things I’ve learned here is that, things generally take longer than you think they should, or that you want them to. So you’ve got to remain focused on what you’re trying to achieve. I came here and I outlined in my own head three things that I wanted to achieve in this job. The first was to see the continuation of the development of High-Speed Rail, because I thought it was important for California. We passed a big law in 2008, called SB375, where regions had to make better use of land and grow smarter and more sustainable. CA: Trying to bridge that historic gap between transportation and urban planning. BK: Yes! And my second objective was to really use the state agencies within the transportation sector to help move those growth plans from plans to implementation. And I think we’ve had some success in that area, and I’ve created a couple of programs that were designed to have the state partner toward those objectives. I think we’re making progress there. And the last big thing was to stabilize transportation over the long term. And that remains a challenge – it remains something we haven’t done yet. But those were my big three, and while so much stuff comes in the door – like implementing drivers’ licenses to 1.4 million people, or autonomous vehicle regulations, some of these things that have come in that I would have never thought about when I started here, but those take huge efforts as well. They are very important policy matters. But I tried to write down the three or four things I wanted to achieve, and you have to revisit that list because so much comes in the door you have to remind yourself what’s important. So, as we deal with all those things, I try to focus on those three or four core things, and I’ll feel good about what we’ve done with our time here. CA: With such a big agency, and big challenges, it must be tough to remain focused. Our association also must be disciplined to focus our limited resources on key areas and not try to be all things to all people. It’s not easy because there is a constituency for everything.
BK: (Laughs) I always love the “In-n-Out” burger model. When you look at their menu, it is very simple. It’s like, burger, shakes, fries. Done. Right? They don’t try to do what they’re not good at. Their menu is simple, it’s straightforward. They stick to what they are good at. So one of the things I have done here with Caltrans, for example, is, when I got here, they’ve been in this 40 or 50 year war over housing in L.A., where they are the landlords over housing. We’ve been working to get them out of that business, because I need them to focus on what they are good at, and being residential landlords is not what they are good at. CA: One of the things Caltrans must always be good at is setting standards. Our industry has raised concerns in the past about how some standards, or specifications, are not uniform across the state, which makes it difficult for companies to do work when they cross a county line. We know that Caltrans wants each of its 12 regional districts to be empowered, but it can present problems for contractors who do work in more than one district. BK: It’s a balance, isn’t it? Because you’ve said, even in this interview, that how the 12 districts are different. For example, what’s needed and important in San Diego, and that climate, is very different than what’s needed and important in the Tahoe region, where you are going to have a very different topography, climate, and all of those things. I do think that consistency is important. We want to be consistent. We want to have a good dialog with all of our partners throughout the state. At the same time we have to recognize that one size may not fit all across the state. We have to have some flexibility in that area. I think Malcolm has done a nice job in that area. There are some decisions, like design standards, that really knowing the community you are serving and what you’re trying to do in that community, is important, so he’s trying to push more of those decisions to the local level, down to the district, and I think that’s right. It’s important that, as a performance matter or standard, we have strong standards that are consistent and lead to good products. But we also want to have some flexibility in what districts can do to make sure that they are serving their communities best, and that’s a balance. CA: And hopefully that’s where we come in, delivering a good product. BK: Good! CA
BK: I always have a high respect for people or organizations that know what they’re good at. The example I always use, and vegetarians should forgive me… CA: Uh-oh.
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California Asphalt Magazine • 2016 Forecast Issue
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Martin Brothers
Construction
A Focus on Safety, Customer Satisfaction & Excellence Since 1996 By Brian Hoover
Felipe Martin grew up around construction, which may have had an influence on him later in life. His father had operated a successful business that focused on railroad construction in Mexico, and although Felipe was born in the United States, he spent his childhood living in both Mexico and California. In 1996, Felipe started Martin Brothers Construction (MBC), a small paving operation, out of his home in Sacramento. His brother, Tranquilino Martin, was also an owner in the business until 2004 when he decided to sell his shares back to Felipe in order to pursue another venture. What started out as a small paving operation has now grown into a company that offers a broad spectrum of services that include paving, general construction, site 26
work and underground utility construction. MBC is an 8(a) certified and Minority Owned Business Enterprise (MBE), and they serve major commercial, industrial and residential developments, as well as local, private, county, state and federal agencies throughout California. The company emphasizes its dedication to high quality work in roadway construction & maintenance, design build heavy civil construction, general construction, as well as facility and maintenance services. Shae Moseley is the business development manager for Martin Brothers Construction (MBC) and he first came on board when MBC added their San Diego branch office in 2010. “Our company is headquartered in Sacramento and we added our San Diego office in
2010 in order to better follow the Southern California federal and military work,” says Moseley. “The private sector in Sacramento has come back a bit this past year, but we are still much more heavily weighted toward public works projects at this time.” Moseley says that approximately 60 percent of their work continues to be in asphalt paving but adds that they are also involved in white paving, most recently on large airfield projects. “We are performing a great deal of rubber removal and striping contracts on federal airfields right now, and we are also currently on an IDIQ multiple award contract for the Navy where we are doing a lot of wet utilities and underground-type work.” According to Moseley, MBC is also taking on more earthmoving, [ Continued on page 29 ]
California Asphalt Magazine • 2016 Forecast Issue
California Asphalt Magazine • 2016 Forecast Issue
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Pictured: Completion of 1.8-Mile section of Fish Hatchery Road in Stanislaus National Forest for the Federal Highway Administration.
Above: MBC paving on Leyte and Taylor Road in Turlock. [ Continued from page 26 ]
grading and excavating projects. For all intents and purposes, MBC is a full heavy civil general engineering contractor and they have a large eclectic fleet of equipment to prove it. Currently, their fleet includes four Cedarapids asphalt paving machines that, according to Moseley, come in handy when all four crews are on separate projects in the summer months. MBC also owns and operates four excavators, three
dozers, two motor graders, six wheel loaders, two scrapers, 10 asphalt rollers, four skid steer loaders, five skip loaders, four backhoes loaders, a concrete roller screed and a large fleet of Ford trucks. They utilize this fleet primarily in the greater Sacramento area and then rent as needed in other regions. Asphalt paving remains the company’s main area of expertise and MBC has been on many high profile projects over nearly the
last 20 years. One such job was the Fish Hatchery Road Paving Project in Stanislaus National Forest for the Federal Highway Administration in 2012. The contract called for road repairs on a 1.8-mile section of Fish Hatchery Road that included roadway rehabilitation through pulverization and asphalt pavement overlay, as well as excavation for drainage improvements including culverts, cleaning of ditches and placement of rip-rap. “We incorporated the pulverized asphalt material back in as road base and then performed an overlay across the entire 1.8mile section,” says Moseley. “We also performed roadway shoulder and slope stabilization work as the road was adjacent to a creek. In addition, we did rock-scaling on the slopes on both sides of the roadway. This was a nice showcase project that allowed us to show many of our capabilities on a single job.” MBC also performed a fairly high profile project just this past year on an overlay project for the City of Sacramento. Here, MBC rehabilitated several downtown Sacramento streets by first grinding and reusing the material as sub-base, followed by a [ Continued on page 30 ]
Above Left: MBC paving Highway 89 Caltrans project in Placer County. Above Right: Overlay project for the City of Sacramento.
California Asphalt Magazine • 2016 Forecast Issue
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Above: Peavine Ridge and Brant Springs Road repair project in Humboldt Redwoods State Park. [ Continued from page 29 ]
rubberized asphalt blend overlay. “We offer a variety of solutions to a variety of agencies, designed to provide the highest quality possible at rates that allow them to tackle as much as possible on their fixed budgets,” says Moseley. MBC took on another interesting job back in 2012 that they found both fun and rewarding. The Naval Facilities Engineering Command (NAVFAC) Southwest awarded them a contract to transform 11 Area Field and Track into a state-of-the-art facility. The current track and field had run its course and MBC went to work removing the deteriorated natural turf and replaced it with more than 100,000 sq. ft. of artificial turf. They also installed a new herring-bone drainage system and new irrigation lines. In addition, they removed the existing decomposed granite running track and replaced it with an all-weather rubberized track, complete with an asphalt sub-base and additional exterior drainage. The contract also included all new hardware, including the goal posts, a four-foot perimeter fence and an ADA compliant ramp for wounded warrior access. “This was a very rewarding project for everyone involved,” says Moseley. “We are 30
very proud to have been a part in providing Camp Pendleton, the Marines, Sailors and their families with a truly first class fitness facility.” According to Moseley, the first and most important goal at MBC is to keep everyone safe at all times. “Our goal on every job is to have zero incidents,” says Moseley. “We maintain a very strong safety culture, which is reflected by our 0.73 EMR (experience modification rate). Nothing is more important than the safety of our employees and that goes for our clients and the surrounding public as well. This is something that we never get tired of emphasizing to our valued employees.” Martin Brothers recently became a paving contractor member of the California Asphalt Pavement Association (CalAPA). According to Moseley, Martin Brothers Construction sees great benefits in becoming a member of CalAPA. “We recently joined CalAPA because we recognized the benefits that this association can bring to us in the future,” says Moseley. “Now that we are performing work throughout the State of California, it is good to have a partner that we can call on for advice, as well as referrals
for everything from quality local suppliers to legal questions. We also want to remain at the leading edge of technology and on top of current legislative activity and we feel that our membership will help us in all of these endeavors. We are happy to be a member of the California Asphalt Pavement Association.” Felipe Martin had a great vision back in 1996 to deliver safe, quality construction to his local Sacramento paving customers, Moseley says. That vision has gone statewide and now applies to a much wider customer base with services that includes asphalt paving & maintenance, grading & excavating, underground utilities, concrete construction, parks & recreation improvements, erosion & flood control, environmental remediation, dams and levees, design/build construction, abatement, tenant improvements, athletic field construction, landscape services and other work. “Felipe is the sole owner of MBC and is very involved in the day-today operations,” Moseley says. “Everyone contributes greatly to what we do each day, but I would like to recognize a few long term employees and managers like Don Lyon our chief of estimating, William Martin (Felipe’s brother) our senior estimator and project manager, and Harajiwan Chatha, our construction manager. “These guys are extremely dedicated to delivering quality projects and their efforts are very much appreciated,” Moseley says. “We are very fortunate to have such great people working here at MBC and I feel that together we can all take this company to new heights.” For more information on Martin Brothers Construction, please visit them online at www. martinbrothers.net or call their Sacramento corporate headquarters at (916) 381-0611 or their San Diego office at (619) 255-1263. CA
California Asphalt Magazine • 2016 Forecast Issue
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Fall Asphalt Conference brings together 270 industry, agency representatives to hear the latest on technology, specs and funding On October 28 and 29 at a Sacramento hotel ballroom filled to capacity, industry, agency and academia converged to share the latest in best practices, technology, funding, specifications and more at the CalAPA Fall Asphalt Pavement Conference & Equipment Expo. Keynote speaker Steve Takigawa, Deputy Director for Maintenance & Operations for Caltrans, emphasized the department’s renewed commitment to being transparent and accountable to stakeholders as well as the public. He said that the improving California economy, and higher tax receipts, has resulted in his highway system maintenance budget going up by about $600 million. But that is just a fraction of what is needed to bring all roads -- local, state and federal -- up to an acceptable standard of maintenance and smoothness. Regarding a special session of the Legislature convened by Gov. Jerry Brown to develop a longterm transportation funding plan, Takigawa said his department is facing tough questions about how it will ensure that any new money would be utilized efficiently and effectively. “It’s not easy to get money,” he said. “People are asking, ‘What are you doing to innovate? How do we know you’re going to be accountable for it? And what efficiencies have you put in place to make sure that when we give you that money we have confidence that you’re going to do the right thing?’” Speaking for his area of responsibility, Takigawa ticked off a number of innovative investments and reforms made by the department in recent years, and that continue to be made, to make roads safer, reduce maintenance costs and improve conditions for highway workers as well as users of the state’s vast transportation system. Once such example is the installation in all Caltrans vehicles of GPS units that can monitor location, speed and other vital signs of state vehicles. Prominent stickers noting the vehicles have GPS monitoring are displayed on all vehicles equipped with the technology. The devices have resulted in the savings of $2 million in fuel and maintenance costs so far, Takigawa said, and led to the recovery of at least four stolen vehicles within minutes of the thefts, much to the dismay of the thieves who were caught red-handed. 32
John Greenwood, CalAPA Chairman, California Commercial Asphalt welcomed the attendees at the CalAPA Fall Conference.
Steve Escobar, APART gave a technical presentation on Binder Considerations when using RAP and RAS.
Steve Takigawa, P.E., Deputy Director of Maintenance and Operations, Caltrans was a featured speaker at the CalAPA Fall Conference.
Jack Van Kirk P.E., Director of Asphalt Technology, George Reed Inc. gave a presentation on Asphalt Rubber Blending.
Paul Curren P.E., Consultant and CalAPA Trainer gave a technical presentation on Superpave “Lite”.
Don Mathews, Division Manager, PRS gave a presentation on Intelligent Compaction for Cold In-Place Recycling.
Katie Mahoney, Advanced Technical Services Representative, 3M gave a presentation on the 5 Myths of Visibility.
Don Goss, CalAPA Technical Committee Chairman and Valero employee gave a technical presentation on CRM Verification process.
Mike Robinson, P.E., Consultant gave a presentation on Contractor Experience with Caltrans Smoothness Specification.
Jeff Ensell, Director of Training, Roadtec gave a presentation on Material Transfer Vehicles.
California Asphalt Magazine • 2016 Forecast Issue
Barry Gundersen, a safety consultant, led an interactive bituman safety demonstration.
CalAPA Executive Director Russell Snyder.
Of the dumbfounded crooks who were led away in handcuffs, he said, “They don’t even know how to spell GPS, let alone know what it is.” The two-day conference program, held at the Doubletree Hotel in Sacramento, also featured presentations on “Superpave,” Crumb Rubber Modifier (CRM) use, asphalt binder considerations, new pavement smoothness specifications and technology, binder safety, personal protective equipment reflectivity, use of Material Transfer Vehicles, compaction, Cold In-Place Recycling and asphalt rubber blending. Technical presentations delivered at the conference can be viewed and downloaded from the CalAPA website. The conference would not be possible were it not for the generous support of the many sponsors and exhibitors. The Spring Asphalt Pavement Conference & Equipment Expo will be held April 20-21, 2016 at the Doubletree Hotel, 222 N. Vineyard Ave. in Ontario. Contact Sophie You of CalAPA at (916) 791-5044 for sponsor and exhibitor opportunities. CA
Margaret Holdsworth also assisted with the bitumen safety live demonstration.
Graniterock was an exhibitor at the CalAPA Fall Conference.
Jeff Reed (3rd from left) with students from UC Davis. They are, from left: Shawn Hung, Yuan He and Patricia Chavez.
The CalAPA 2015 Fall Conference had over 270 attendees.
The equipment expo at the CalAPA Fall Conference.
platinum sponsor
SILVER sponsor • Ingevity • Pine Instrument • Company • Sakai America, Inc. • Telfer Oil Company • Western Emulsions, Inc
• Akzo Nobel • Asphalt Pavement & • Recycling Technologies, Inc. • Ergon Asphalt & Emulsions, Inc. • Knife River • Roadtec, Inc.
Exhibitors • 3M Personal Safety Division • Alliance Geosynthetics • American Gilsonite Company • Ames Engineering • Aqua Patch Road Materials, LLC • BG Chemical • CleenFleets • Crafco, Inc. • CRM Co., Inc. • D & H Equipment • Ergon Asphalt & Emulsions, Inc. • Graniterock Company
• Hemi Equipment, LLC • Herrmann Equipment, Inc. • Ingevity • Instrotek, Inc. • James Cox & Sons, Inc. • Magid • Maxam Equipment • OMI Industries • Papé Machinery • Pavement Management Solutions, Inc. • Pavement Technology, Inc. • Peterson CAT
California Asphalt Magazine • 2016 Forecast Issue
• Ramos Oil Company • RMA Group • Roadtec, Inc. • Sales & Distribution Services, Inc. / Zydex, Inc. • Spectra QEST • Surface Systems & Instruments, Inc. • Telfer Oil Company • Terracon • Troxler Labs • VSS International, Inc. / George Reed, Inc. • Western Emulsions, Inc.
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Insurance column State of California Rating Bureau Class Code 1463 Asphalt Works Clarification By Steve Cota, Patriot Risk & Insurance Services
Earlier in the year the State of California Rating Bureau decided that Class Code 1463 Asphalt Works requires clarification. The class code is currently defined by the State of California Insurance Rating Bureau as “Asphalt Works – grinding, pulverizing or mixing asphalt.” Steve Cota
CRIS, Patriot Risk & Insurance Services
Recently, however, the Bureau has reviewed and redefined the class
Support your Industry and Your Future by Joining the California Asphalt Pavement Association
Contact Sophie You for further information
866.498.0761 syou@calapa.net
code to “clarify” and “provide direction” how the Class Code 1463 should be interpreted. They have proposed to the California Insurance Commissioner that “Crushing of used asphalt shall be classified at 1710 Stone Crushing.” If approved by the Insurance Commissioner it will be effective January 1, 2017. For additional information regarding the proposed change you can go to http://www.wcirb.com/sites/default/ files/documents/151027_cr_minutes.pdf. Please note, the difference in the base premium rates insurance companies have filed with the Rating Bureau currently is often 40% or higher for Class Code 1710 versus Class Code 1463. The “base rate” does not include any premium credits or debits added to your workers’ compensation insurance premium nor does it include your experience modification factor. Beginning 2017, if you have a stone crushing operation it will be extremely important that your daily time cards show those employees who are involved in any asphalt crushing activities versus those who should remain in Class Code 1463. If an employee works, for example, in asphalt crushing activities in the AM but in 1463 in the PM, the time card must clearly show that otherwise the employee’s time may be placed in Class Code 1710 per the rules of the State of California Rating Bureau. We will continue to follow the proceedings regarding this proposed change. We’ll provide you more information later in 2016. CA Steve Cota, CRIS directs the Asphalt Paving Program for Patriot Risk & Insurance Services. For more information regarding the above or any other insurance-related questions, he may be reached at (949) 486-7947 or scota@patrisk.com.
calapa.net
www. 34
California Asphalt Magazine • 2016 Forecast Issue
Sully-Miller introduces VALET SERVICE Definition- A turn-key, Furnish, Deliver and Laydown (FD&L) paving service that specifically caters to commercial and residential developers, general contractors and pipeline contractors in both the private and public sector.
Does your paving contractor have these qualifications? • Award-Winning Performance
• Safety
We are the only paving company in the Greater Los
Safety is the #1 Priority for our employees, your employees,
Angeles Basin that wins asphalt paving awards on a
and the public.
local and national level on an annual basis.
As always, Sully-Miller’s goal is zero lost time. #GoalZero
NOBODY else has these acclamations.
• Quality Control/Quality Assurance
• Innovative Solutions
Sully-Miller and Blue Diamond Materials can provide
We are the only paving contractor with an AASHTO and
products that will help you earn U.S. Green Building Council
Caltrans certified lab in the Greater Los Angeles Basin.
LEED Credits.
ALL of our asphalt plants are current with NAPA’s
Diamond Achievement Commendation and Diamond
Quality Commendation.
NOBODY else has these credentials.
• Competitive Pricing
Sully-Miller provides competitive pricing to you on both large
and small projects.
Our crews can deliver your project on time and under budget.
So who do you really want to pave your job?
‘We Are Not Just Another Paving Company’ “Sully-Miller’s Valet Service is a marketing partnership between Blue Diamond Materials and Sully-Miller Contracting Co.”
For quotes, contact Rich Shaon at:
SCAN TO LEARN MORE! Simply scan the QR Code and visit sully-miller.com
Rich.Shaon@Sully-Miller.com or call: 714-578-9634 For more info visit: www.Sully-Miller.com 135 S. State College Blvd. Suite 400 Brea, CA 92821
Industry News Norm Wright, ‘the pillar’ of R.J. Noble Co., retires
Norm Wright, the third generation from his family to work at the R.J. Noble Co., recently wrapped up a distinguished, 50-year career that saw him hold numerous positions and become known as “the pillar” of the company. He first began working for R.J. Noble in the dispatch department in 1965. Throughout the years he climbed up the ladder holding various positions within R.J. Noble including time keeper, heavy equipment operator, public works foreman, Superintendent of Construction and finally settling into the role of Vice President of Operations for the past 16 years. He recently announced his retirement. “Norm has been a tremendous asset to our company for over 50 years and true pillar of R.J. Noble,” said Mike Carver, company president. “His work ethic and morals will forever be embedded in the company and he will be a true legacy.” 36
Wright’s life at R.J. Noble started with a call from his father, Barney Wright, another longtime R.J. Noble employee, asking if he would be interested in a job with company as a weigh-master. From that point on it became apparent that his tremendous work ethic, attention to detail and ability to adapt would carry him, and R.J. Noble, on an upward trajectory in the asphalt industry. He has been a conduit for experience, knowledge and ethics throughout his 50 year career. Wright, 72, is the third generation from his family to work at the R.J. Noble and has passed the Wright family torch to his son, Billy, now a superintendent with the company and the fourth generation to work for R.J. Noble. “Never has a son been more proud to work for and with his father,” Billy Wright said of his famous father. “The last 27 years of my career have been made successful with his
guidance and teaching. He will be missed by many at work but his legacy at R.J. Noble will last forever.” Now that he has retired, Wright looks forward to traveling and camping with his wife of 52 years, Frankie, and spending quality time at his home in Cota De Caza and visits with his family: Son Billy Wright and his spouse, Kara, and the couple’s daughter, Jillian; and his daughter, Laura Wright and her sons, Christopher and Nicholis, and daughter, Terra. “After a lifetime of being part of the R.J. Noble family,” Norm Wright said, “I would once again like to thank everyone in the company for being an important part of our family. From great grandpa William Wright, Barney Wright, Norm Wright and Billy Wright, thank you for a wonderful life and future.” CA
California Asphalt Magazine • 2016 Forecast Issue
Northern California (916) 783-9333
THE INDUSTRY’S BEST COMMERCIAL PAVERS
Southern California (909) 877-5597
CP75 Commercial Paver
Key Features 74hp Cummins C3.3 Tier IVi Engine 8 Ton Hopper Capacity Fully Replaceable Floor Plates And Wear Components Intuitive Screed Mounted Controls High Flow Conveyor Increases Fuel Efficiency And Eliminates Material Segregation 20º Forward, 15º Reverse Load Angles Industry Leading 8’-13’ Single Slide, Electrically Heated Screed
Now With California’s Leading Dealer Serving California contractors with the highest quality paving equipment and unequaled dealer support since 1988, Herrmann Equipment is proud to announce the addition of Carlson Paving Products’ commercial class pavers to its already impressive lineup. Covering the entire Golden State, Herrmann is poised to offer proven paving performance and trusted Carlson innovations to contractors with both the Carlson CP100 and CP75.
CP100 Commercial Paver
Key Features 100hp CAT 3.4B Tier IVi Engine 8.5 Ton Hopper Capacity Robust, One Piece Frame And Heavy Duty Wear Components Class Leading Layout For Engine Access
Unmatched Quality. Unequaled Performance. Unparalled Dealer Support. California Asphalt Magazine • 2016 Forecast Issue
Best-in-Class Visibility And Crew Comfort In Both 2-Man And 3-Man Setups 20º Forward, 15º Reverse Load Angles Industry Leading 8’-15’ Electrically Heated Screed
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Industry News CalAPA Members met on Nov 11 for the CalAPA Contractors’ Dinner Meeting – Focus was L.A.’s ‘Clean Up Green Up’ Ordinance The City of Los Angeles’ Planning Department is pushing a “Clean Up Green Up” ordinance that, as currently drafted, could be harmful for the business community in general and contractors in particular. CalAPA has joined a broad coalition of business interests, led by the L.A. Area Chamber of Commerce, in a concerted effort to stop or significantly alter the proposed ordinance. Alycia Witzling, manager of public policy for the L.A. Chamber, has been the point person on the issue and was the featured speaker at the Nov 11 Contractor Dinner. She discussed the draft ordinance, how it could impact the asphalt pavement industry, and how the coalition is engaging the city. CalAPA Contractors’ Dinners are the paving industry’s premier events to socialize in a relaxed setting, enjoy delicious food and stay current with the latest industry trends, technical updates and more. For further information on future contractors’ dinner meetings or reservations please contact the CalAPA office at 916-374-8083. CA
Katrina Lynch, Ingevity (left), Van Duncan, Pavement Coatings and Jim O’Kane, Pavement Recycling Systems.
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Steve Cota the CalAPA Contractor’s Committee Chairman welcomes the dinner attendees.
Tony Grasso, CalAPA Deputy Executive Director updates the audience.
John Morales of Patriot Risk & Insurance Services Guest speaker Alycia Witzling the manager of gave an insurance update. public policy for the L.A. Chamber of Commerce giving her presentation.
Scott Salandi, Patriot Risk & Insurance Services (left), Aaron Terry, Terra Pave, Steve Cota, Patriot Risk & Insurance Services and Ken Hammond, Coastline Equipment.
Leah Rojas (left), Tom Maher, Geoff Hollingshead and Brian Walker of Holliday Rock enjoyed themselves.
California Asphalt Magazine • 2016 Forecast Issue
California Asphalt Magazine • 2016 Forecast Issue
39
YOUR NEW PARTNER IN SUSTAINABLE PRODUCTIVITY www.atlascopco.us
Scott Equipment now offers Atlas Copco road construction equipment, and has the parts and service to keep you on the road. www.scottequip.com
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14635 Valley Blvd. Fontana, CA 92335 (800) 316-0327
California Asphalt Magazine • 2016 Forecast Issue
Industry News Nixon-Egli Equipment Co. marks 50 Years with Open House Celebrations at Their Ontario and Tracy Facilities No matter how you look at it, 50 years is a long time to do anything, let alone remain viable in the construction equipment industry. Nixon-Egli Equipment Co. has done this over three generations with unprecedented service and support. They recently celebrated this achievement on Nov. 3 in Ontario and on Nov. 5 in Tracy. More than 300 customers and friends of Nixon-Egli were in attendance. Employees past and present were there, along with the entire Nixon family. Several of their vendors were also on hand with displays including: Associated Wire Rope & Rigging, PB Loader, Link-Belt Parts and Rhino Parts, a division of Wirtgen American Parts. Ontario guests were treated to lunch via the Habit Burger truck, while the Tracy guests enjoyed hot and fresh pizza from Pizza Oven. Along with the food and refreshments, there were raffles, gifts and even a 50-year anniversary cake. Steve Nixon happily greeted his guests and thanked everyone who helped contribute to the company’s longevity and success. For more information on Nixon-Egli Equipment Co., please log onto www.nixon-egli.com or call (909) 930-1822. CA
Tracy facility served hot and fresh pizza.
Catered by the Habit burger truck.
Ontario facility attendees.
The American flag and the Nixon-Egli flag proudly flying high at the Ontario 50th anniversary celebration.
John Smith, Kelterite Company (left), Kathleen Nixon, Ed Anglemyer, Anglemyer Crane Rental and Steve Nixon.
James Nixon (left), John Skaff, Steve Nixon, Jack Rogers and Carl Bahnsen.
Vern Gunderson, Vice President of Construction Sales, Nixon-Egli Equipment Co.
Tracy facility attendees.
50th Anniversary Celebration cake.
California Asphalt Magazine • 2016 Forecast Issue
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PAVEMENT RECYCLING SYSTEMS YOUR FULL SERVICE ASPHALT RECYCLING CONTRACTOR Cold In-Place Recycling (CIR)
Cold Milling
Full Depth Reclamation (FDR)
Lime Treated Subgrade
Cement Stabilization
Winterize Job Sites
Pavement Pulverization
Micro-Milling
(800) 966-7774 / CA Lic. #569352
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WWW. PavementRecycling .COM
AZ Lic. #ROC183900
NV Lic. #36228
DIR #100000336
California Asphalt Magazine • 2016 Forecast Issue
Industry News Vasquez canyon road buckles from landslide Vasquez Canyon Road in Santa Clarita rose nearly 15 feet on Nov. 20 due to a landslide. Geologists cannot point to any obvious cause for the landslide, as there was no seismic activity in the area during this time period.
According to the Los Angeles County Department of Public Works, a 200-foot section of Vasquez Canyon Road was affected, causing electricity to immediately be shut- off and immediate closure of the road to traffic.
Before
After
Vulcan Materials is the largest producer of construction aggregates in the United States. The Western Division proudly supplies the highest quality materials for the production of roads, highways, dams, airports, seaports, commercial centers and residential housing as well as other Construction Material needs.
Serving all of California Southern California Area Los Angeles Basin Inside Sales: 626-633-4228 Customer Service Center (Dispatch) 626-856-6156 San Diego Area Inside Sales: 858-530-9472 Customer Service Center (Dispatch) 858-530-9465 Central California Fresno Inside Sales: 559-434-1202 Customer Service Center (Dispatch) 559-846-2852 Bakersfield
Customer Service Center (Dispatch) 661-835-4800
Northern California Bay Area, Pleasanton: 925-846-2852 Sacramento Area, Roseville HMA Inside Sales / Dispatch: 916-773-3968
Technical Services Department Northern California Pleasanton Laboratory Technical Services Manager – Toni Carroll 925-485-5982 Central California Fresno Laboratory Technical Services Manager – Gary Dunkel 559-434-2714 Bakersfield Laboratory Technical Service Specialist – Bob Lee 661-398-6299 Southern California Los Angeles Laboratory Technical Services Manager – Tim Reed Technical Services Aggregate – Jeff Pollard Technical Services Asphalt – Pascal Mascarenhas 626-856-6190 Southern California San Diego Laboratory Technical Services Manager – Rob Piceno 858-547-4981 West Region Technical Services Manager LEED Green Associate – Ed Luce 619-843-3069
Grass Valley Area, Nev City, Auburn Area HMA Inside Sales: 530-273-4437 Western Division Administration 818-553-8800
California Asphalt Magazine • 2016 Forecast Issue
According to officials, the adjacent hillside continues to slip hour by hour, further undermining the pavement surface. A local college professor is said to believe that recent rains may have saturated the porous rocks, causing them to slide. It is also believed that possible upcoming El Nino conditions will only make this and similar roadway systems susceptible to equal or more devastating damage. Vasquez Canyon Road is regularly used by cyclists and is an highly traveled access road for those living in the northern Santa Clarita areas. Skate boarding enthusiasts reportedly seized the opportunity to get in some unusual and unique rides, but the Department of Public Works has posted “no trespassing” signs, and has made it clear that the mountain is still sliding and remains extremely unsafe. The definitive cause of the landslide is still a mystery. Vasquez Canyon Road between Lost Creek Road and Vasquez Way will be closed until further notice. CA 43
Industry News Caterpillar Adds New High-Production B-Series Tandem Rollers TO THE PAVING PRODUCTS MACHINE FAMILY Caterpillar Inc. announces the addition of the new highproduction B-Series Tandem Vibratory Rollers that include the CB64B, CB66B, and CB68B models. These machines are 12 to 14 metric ton compactors that feature wider drum widths, high-flow water spray system, increased operator comfort, and enhanced technology to help operators and machines perform at higher levels. Many of the technological enhancements are offered through Cat® Compaction Control. They include Auto-Adjustable Compaction (AAC), Pass-Count and Temperature Mapping, Machine to Machine Communication, and Compaction Meter Value (CMV).
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Auto-Adjustable Compaction optimizes compaction by delivering the highest amplitude possible without de-coupling or over-compacting. The technology includes both the front drum and rear drum – a Cat Exclusive. This unique system is able to adjust through the full range of amplitudes in as little as 4 seconds for excellent performance and uniform compaction throughout the mat. Pass-Count and Temperature Mapping systems provide real-time visual references of the passes made and asphalt mat temperatures present. Distractions, fatigue, multitasking, and nighttime operation
can affect how well an operator executes the rolling pattern on an asphalt mat. The Cat C4.4 ACERT™ engine meets U.S. EPA Tier 4 Final and EU Stage IV emissions and provides 106 kW (142 hp) of power. Automatic Eco-mode operates at a variable engine speed to deliver excellent fuel economy and lower sound levels. CA
California Asphalt Magazine • 2016 Forecast Issue
New Members of CalAPA Hardy & Harper, Inc. Dan T. Maas, CFO dtmaas@me.com
1312 E. Warner Ave. Santa Ana, CA 92705 P: 714.444.1851 www.hardyandharper.com
Holt of California Abigail Sinclair, Marketing asinclair@holtca.com
7310 Pacific Ave. Pleasant Grove, CA 95668 P: 916.921.8800 www.holtca.com
JetPatcher USA
Abraham Lopez, General Manager & RME info@jetpacherusa.net P.O. Box 15597, Anaheim, CA 92707 P: 800.670.9570 www.jetpatcherusa.net
California Asphalt Magazine • 2016 Forecast Issue
45
Alon Asphalt Company................................ 2
Peterson CAT................................................ 5
Bomag America............................................ 9
PZS Stabilization........................................ 45
Coastline Equipment................................... 9
Quinn Co....................................................... 5
CEI Enterprises, Inc...................................... 8
RDO Equipment Co.................................7, 47
D&H Equipment, LTD................................. 44
RDO Integrated Controls........................... 40
E.D. Etnyre & Co......................................... 45
Roadtec........................................................19
GoldStar Asphalt Products....................... 42
Sakai.......................................................25, 47
Hawthorne CAT............................................ 5
Scott Equipment........................................ 40
Herrmann Equipment, Inc....................27, 37
Sitech........................................................... 46
Holt of California.......................................... 5
Sully-Miller.................................................. 35
Ingevity........................................................31
Valero Marketing & Supply......................... 3
Johnson Machinery..................................... 5
Volvo Construction Equipment & Svcs....15
Nixon-Egli Equipment Co........... Back Cover
Vulcan Materials Company....................... 43
Pavement Recycling Systems................... 42
Western Oil Spreading Services...............14
Target Compaction in Fewer Passes Intelligent Compaction (IC) is rapidly becoming a requirement for Caltrans projects. SITECH NorCal and SITECH Oregon have the cutting edge IC technology. Our CCS900 System enables your rollers to meet today’s stringent paving requirements: • Pass count mapping • Temperature mapping • Monitor Compaction Meter Values (CMV) • Wirelessly transfer data from the machine to the office for analysis
Contact us for a free demonstration, some conditions apply.
SITECH NorCal 2251 Alvarado Street San Leandro, CA 94577 (510) 670-2800 SITECHnorcal.com
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SITECH Oregon 4421 NE Columbia Blvd. Portland, OR 97218 (510) 670-2800 SITECHoregon.com
Our NEW Salem Store 3870 Turner Road SE Salem, OR 97302 (503) 280-1505
California Asphalt Magazine • 2016 Forecast Issue
California Asphalt Magazine • 2016 Forecast Issue
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UNBEATABLE TEAM.
The Wirtgen Group owes its strength to the excellence of its four product brands – Wirtgen, Vögele, Hamm and Kleemann – with their unique wealth of experience and partnerships with hard working dealers like Nixon-Egli Equipment Co. – celebrating 50 years of dedicated customer service to their customers. Put your trust in the Wirtgen Group team.
WIRTGEN AMERICA . 6030 Dana Way . Antioch, TN 37013 Tel.: (615) 501-0600 . www.wirtgenamerica.com
ROAD AND MINERAL TECHNOLOGIES