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g Under rounder August 2009

O N TA R I O S E W E R A N D WAT E R M A I N C O N S T R U C T I O N A S S O C I AT I O N

The

HIGH

Energy Cost

of

Water Leakage

PM# 40064978

Impact of Distracted Driver Legislation OSWCA’s Bursaries Program What’s Happening with the WSIB Member Profile: MIG Engineering



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g Under rounder August 2009

O N TA R I O S E W E R A N D WAT E R M A I N C O N S T R U C T I O N A S S O C I AT I O N

Undergrounder August 2009

MESSAGE

O N TA R I O S E W E R A N D WAT E R M A I N C O N S T R U C T I O N A S S O C I AT I O N

The

HIGH

7

Energy Cost

FEATURES

of

Water Leakage

PM# 40064978

Impact of Distracted Driver Legislation OSWCA’s Bursaries Program What’s Happening with the WSIB Member Profile: MIG Engineering

Publisher: Robert Phillips OSWCA Editorial Coordinator: Margaret Malagowski

President’s Message By Greg White

11

The High Energy Cost of Water Leakage Early pipe replacements could save millions. By Jean Feingold

15

Hands Free . . . Or Hands Up!!! The potential impact of distracted driver legislation on civil construction contractors. By Don Del Vecchio

19

A Boost for Students OSWCA’s bursaries program recognizes students who are excelling in an engineering program. By Stephen Murdoch

23

What’s Happening with the WSIB Restructured SWAs, fewer exemptions, possible rate changes. By Jean Feingold

Project Manager: Kim Davies Marketing: Allie Hansen Sales Representatives: Anook Commandeur, Todd Evans, Brenda Ezinicki, Tracy Goltsman, Brian Hoover, Gordon Jackson, Bill Lovett, Jason Ruppert, Dawn Stokes, Mark Tumarkin, Ainsley Tyler Naylor Editor: Michael Senecal

MEMBER PROFILE

Layout: Catharine Snell Advertising Art: Aaron Harper Return undeliverable Canadian addresses to: Naylor (Canada), Inc. Distribution Dept. 100 Sutherland Avenue Winnipeg, MB R2W 3C7

27

50 Years of Excellence MIG Engineering a willing partner with other firms, committed to community. By Stephen Murdoch

30

Buyers’ Guide and Trade List

©2009 Naylor (Canada), Inc. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Canadian Publications Mail Agreement #40064978

PUBLISHED AUGUST 2009/OSW-T0209/8445

The Undergrounder is published for the Ontario Sewer and Watermain Construction Association (OSWCA) 5045 Orbitor Drive, Unit 12, Suite 300 Mississauga, ON L4W 4Y4 Tel.: 905-629-7766, Fax: 905-629-0587

Published by Naylor (Canada), Inc. 100 Sutherland Avenue Winnipeg, MB R2W 3C7 Tel.: 204-947-0222, Fax: 204-947-2047 www.naylor.com

The Undergrounder / August 2009 • 5


6 • The Undergrounder / August 2009


Message from Greg White, President, OSWCA

2009 – Infrastructure Stimulus

F

or close to a full year the economic downturn and financial markets have been daily headlines. As we enter mid 2009 both federal and provincial politicians speak volumes of their municipal infrastructure stimulus budgets and how money is flowing, jobs are being created and shovels are in the ground. Well that may be their view, but what we see in our industry from ground level down is not quite the same. The budgetary stimulus was supposed to be significant and immediate. One could argue both sides on the size question: yes it is significant based on historical grants and spending, and no it is not when measured against the estimated $123 billion infrastructure deficit that the Federation of Canadian Municipalities has referenced in the last year. Are the municipal infrastr ucture stimulus packages having an immediate impact? We haven’t seen a lot of shovels in the ground yet and that really shouldn’t surprise anyone.

With funding announcements now out the door as of early June 2009 it will take municipalities some time to put together the respective tender packages. Let’s assume that they are unusually efficient and get out the stimulus tender packages by mid July. Well, contractors are going to need some time to price and bid the work, so let’s say another four weeks. That puts us into mid August for tender closings. A fast turnaround from tender closing to contract award and a green light to mobilize would be another two to three weeks, so that puts us into early September 2009. Mobilization on the contractors side can take a week or two, especially if crews are still working on other projects. So if the municipalities and their consultants surpass their normal productivity levels in getting tenders assembled, evaluated and awarded, we could see work starting by early to m id September 2 0 0 9. T hat ’s when I would say we have shovels in the ground. Well, at least paint

on the ground, when all that work comes out, we also have to get utility locates. Can we count on a late, warm and dry summer to do the work? Can we count on a long and dry autumn? We might have a better chance of the Blue Jays and Argonauts winning their respective championships than we have of getting good weather after August. Cou ld t he t im ing have been improved? Maybe. Governments might have shortened the stimulus process by just sending the money to municipalities without the need for a stimulus application and evaluation system, but could we trust the municipalities to get more infrastructure projects out the door or would they have taken their time to debate and prioritize their projects. We can’t rewind the clock, but we can and should keep the pressure on our municipal works departments to stay focused and maybe, just maybe, we can get a break or two with the fall weather ■ The Undergrounder / August 2009 • 7


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OSWCA 39th Annual Conference – Itinerary Monday, January 25 – Monday, February 1, 2010

Riu Palace, Cabo San Lucas DAY 1 – Monday, January 25, 2010 Arrive in Cabo San Lucas. Explore the resort; enjoy dinner at El Medano! See you at the show at the Los Cabos Theatre.

DAY 2 – Tuesday, January 26, 2010 Welcome Group Dinner Join us for a private group dinner at the amazing à la carte Mar de Cortés Steak House. Watch the sunset and be there for the kick-off to a great week!

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DAY 3 – Wednesday, January 27, 2010 OSWCA Annual General Meeting OSWCA Annual Beach Olympics

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On your mark, get set, go! See you on the beach for an afternoon of fun. This event is open to everyone, but if you are not an Olympian, we would love to have fans!

DAY 4 – Thursday, January 28, 2010 Whale Watching Catamaran Tour Set sail aboard a beautiful 48-foot catamaran to see the magnificent gray whales of Cabo San Lucas as they arrive in the Sea of Cortez. If you’re lucky, you’ll be able to get up close to the whales for great photo opportunities. Enjoy complimentary drinks and the coastal views of Los Cabos as you sail peacefully through the Sea of Cortez.

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DAY 5 – Friday, January 29, 2010 Annual Members Seminar Based on positive feedback from the 2008 conference, we are welcoming members who would like to highlight their company. We invite delegates to once again sign up and provide other conference delegates with highlights of their company and/or product.

DAY 6 – Saturday, January 30, 2010 FREE DAY Enjoy the day; take a glass-bottom boat tour, do some shopping along the beach or in town.

DAY 7 – Sunday, January 31, 2010 Farewell to Cabo San Lucas BBQ Join us for closing remarks, departure information and the announcement of the destination for the 2011 Conference. We invite all members big & small to be a part of this experience! Visit www.oswca.org for registration details.

DAY 8 – Monday, February 1, 2010 Depart Cabo San Lucas for Toronto The Undergrounder / August 2009 • 9


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The High Energy Cost of Water Leakage Early pipe replacements could save millions By Jean Feingold

W

hen residents of Ontario get water from their taps every day, most are unaware that leakage from the water delivery system (WDS) pipes is wasting millions of dollars in energy costs annually. The financial benefit of preventive maintenance is well explained in “Incorporating Sustainability in Infrastructure ROI: The energy cost of deferred maintenance in municipal water systems.” Written by Associate Professor Tamer E. El-Diraby, Professor Br yan W. Karney and Research Scientist Andrew Colombo, all of the University of Toronto, this recently released report was funded and published by the Residential and Civil Construction Alliance of Ontario. The cost of leakage Traditional feasibility studies of infrastructure construction focus on initial expense rather than life-cycle costs, the report states. In Toronto’s water system there are 6,000 kilometres of pipes, of which more than 20 percent are at least 80 years old and almost 10 percent are more than 100 years old, noted Frank Zechner, former Executive Director of the Ontario Sewer and Watermain Construction Association. “With age, watertight pipes deteriorate,” the

report states. “Deterioration leads to higher water losses, which mu st b e add resse d through higher pumping levels.” Leak ing pipes require more electricity to pump both the water needed to meet customer demand and to pump the additional water that leaks out of pipes and valves upstream of the customers’ meters. This water loss leads to higher pumping levels and a rise in water dist r ib ut ion pu mping costs. This cycle tends to result in faster rates of obso lesce nce of both pipes and pumps. “Elect r ic it y co st s for pu mpi ng comprise the major portion of most system’s

operating budgets,” the report notes. “Because water is relatively ‘heavy’ and must often be transmitted long distances, sometimes across terrain with significant topographic variation, this is not surprising.” For example, in the Greater Toronto Area, the monthly energy cost for water distribution is almost $5 million. “Municipalities on average spend 30 percent of their tota l elec t r ica l dema nd mov ing water through their pipes,” Zechner noted. Much of that electricit y is being wasted because of unrepaired pipe leakage. There is not a one-to-one relationship between the percent of leakage and the increased The Undergrounder / August 2009 • 11


cost of electricit y for the W DS, Zechner explained. “If you have a 25 percent leakage rate, your excess power consumption is more than 25 percent,” he said. “Because of the way water works and trying to maintain pressure, your wasted electrical consumption could be 30 percent or higher. That’s something that nobody really appreciates. You can have a relatively small leakage rate and still have a substantial power wastage associated with that leak.”

With energy costs high and going higher, it is vital to find ways to reduce that cost. Potential savings The way to save is through instituting a proactive pipe rehabilitation program. This would include planned replacement of old pipes as they near the end of their life expectancy, as emergency repairs are the most costly way of dealing with pipe leakage problems.

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Watermain breakage can also i nconve n ie nc e t he p ubl ic . For example, in April 2009, three separate watermain breaks left almost 300 homes in Bensalem, PA without water, including 30 homes that had to be evacuated. Three roads were closed. Boston’s financial district was flooded with thousands of gallons of water when a 12-inch watermain broke in February 2009. Several roads, a major street and a 22-story office building employing hundreds of workers were closed for many hours. In June 2008 in Montgomery County, MD, a 38-year-old pipe section burst, releasing 100 million gallons of water. Hundreds of thousands of residents were left without water service and 1,200 restaurants were closed for two days. Repairs cost $100,000. Perhaps the most dangerous break was in Bethesda, MD in December 2008 when a 66 -inchdiameter main broke, causing massive swift moving road flooding. About a dozen motorists were rescued by boat and helicopter and several suffered hypothermia. Toronto has about 1,500 watermain breaks annually, with most occurring in winter, including its


Electricity generation in Canada accounts for an estimated 20 percent of total GHG emissions and electricity consumption for pumping water is reasonably estimated at five percent of electricity use. With utilities experiencing pipe leakage ranging from 10 to 50 percent, GHG emissions could be significantly reduced by curtailing even half of the leakage. In addition, instituting a pipe rehabilitation program can delay or avoid capacity expansion of

both the water and electricity supply systems. “In some prov incial systems, confronting and controlling energy inefficiencies could save up to 50 percent of energy use,” the report states. “If the Province invests rigorously in pipe rehabilitation to bring leakage to an acceptable level of seven percent, it could realize, on average, $1,500,000 in operational energy savings per month. In addition to the direct cost savings, fi xing such leaks

share of major breaks. A section of Lakeshore Boulevard near the downtown core was closed for days in November 2006 due to four separate breaks in a 12-inch watermain. The same section of road caved in the following April, again due to watermain breaks, as only temporary repairs had been made to the failed sections instead of replacing the pipe.

Leaking pipes require more electricity to pump both the water needed to meet customer demand and to pump the additional water that leaks out of pipes and valves upstream

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and reducing energy consumption diminishes the growth in greenhouse gas (GHG) emissions.” Where to start The report recommends doing a ssessme nt s a nd eva lu at ions of specific WDS performance issues, including pipe deterioration, blockages and trapped air, pumping and energy recovery. To achieve a more sustainable infrastructure, the report recommends that the Province: 1. Reconfigure the methods used for evaluating return on investments in infrastructure projects to include more analysis of sustainability impacts and benefits. 2. Establish clear, long-term policies for life-cycle planning of infrastructure systems, including fi nancing strategies for water infrastructure. The report indicates the rehabilitation budget for water and sewer pipes in the City of Toronto alone is approximately $500 million annually. Modest investments in leak management have the clear potential to save money for Canadian municipalities with quick paybacks. “One can easily estimate that at least 20 percent could be saved if the (Toronto) system could be made significantly more watertight by reducing the leakage rate,” the report notes.

In the rest of the Province, leakage rates are generally higher but water and related energy usage are less. A concerted effort to reduce leakage is likely to yield at least 20 percent savings with a potential for 40 percent savings. Some systems could save as much as 50 percent of energy use by confronting and controlling the sources of energy inefficiency. The report says one can assume a 30 percent energy savings is achievable. “This totals to $1.5 million per month in energy savings alone,” it notes, with the energy costs for Toronto of “deferring” maintenance totaling roughly $160 million over the last 10 years. “The net result would be that Ontario would end up having cheaper systems that perform better,” the report concludes. The big picture I n dec id i ng where to i nvest rehabilitation funds, the report recommends looking at the whole picture. Four aspects of the situation must be examined. First, clear plans and polices must be established to detect and fi x pipe deterioration in a timely manner. Second, by better monitoring pipes for air and blockages, good performance levels can be maintained while reducing

friction losses. Third, using modern control approaches, variable speed drives and well structured maintenance programs at pump stations could improve performance and reduce pumping costs. Fourth, to prevent undesirably large pressures in other parts of a system, pressure is currently dissipated through pressure reducing valves (PRVs), especially near pressure zone boundaries. Implementing recent improvements in microturbine and distributed power generation technology could greatly facilitate energy recovery instead of dissipating it with a PRV. New water pipe designs should t a ke e ne r g y con s e r v at ion i nto account, with the Province encouraging and educating municipalities to include energy conservation and consumption in their design criteria for capital budgets. Adding remote sensors and monitoring software to alert operators to leaks, fluctuations in pressure, problems with equipment integrity and other concerns would identify troublesome areas quickly. The report also recommends creating a fund to expedite WDS maintenance. By doing more repair work sooner, tens of millions of dollars could be saved long term. “Toronto is investing quite well in repairs and we want this to continue,” El-Diraby told the Toronto Sun. OSWCA’s role OSWCA will carry on educating the public and lobbying decision makers as it has done since the early 1970’s. “We continue to provide them with meaningful information, case examples and encouragement,” Zechner said. “We know that emergency repairs will always be more expensive than preventive measures. The same repair on an emergency basis can be up to 10 times more expensive than a scheduled pipe replacement. Our association and others will continue to raise public and political awareness of this important issue with reports, news articles, speaking engagements, whatever mechanisms we can use.” ■

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Hands Free … Or Hands Up!!! The potential impact of distracted driver legislation on civil construction contractors By Don Del Vecchio

T

he Government of Ontario has recently passed Bill 118, the Countering Distracted Driving and Promoting Green Transportation Act, 2009. As the first part of that title suggests, this legislation is intended to address the hazards posed by drivers who operate handheld devices such as cell phones, personal digital assistants (PDAs) and other electronic gadgets. Bill 118 received Royal Assent on April 23, 2009. And, while most of the provisions of this Act came into effect as of that date, its proclamation date is anticipated for early fall 2009, at which time the imposition of charges and penalties related to contraventions are also expected. This would allow for a “public awareness” campaign by the government (you may have already heard their radio ads!!??) and a period of adjustment for drivers – and/or their employers. What, then, is the potential impact of this legislation on civil construction contractors? And what are some precautions employers can take to ensure compliance within their company? We will attempt to address those questions in this article. The pace at which “business” is conducted has changed dramatically over the last 20 years or so. For example, the introduction of the fax machine reduced the standard for turnaround time on business correspondence from two weeks to two days (or less!!). Then, answering machines meant we could leave a voice message if we couldn’t reach someone, and The Undergrounder / August 2009 • 15


expect them to call us back as soon as they returned to their office or retrieved their messages. Nowadays, with cell phones and PDAs, we can talk or text, immediately, with the other party. Of course, many companies have used these technological advances to their advantage. Employees – especially those working on the road – have been provided with cell phones or Blackberries to facilitate immediate or prompt communication and access to information. If an employee gets into a vehicular accident while conducting business on one of these electronic devices, it is conceivable both that the employee could be charged for violations of the Highway Traffic Act and that his or her employer could also be liable – under the CVOR legislation and/or the Highway Traffic Act depending on the circumstances. Under the Bill 118 amendments, Section 78 of the Highway Traffic

Act is repealed and the following substituted: Hand-held devices prohibited Wireless communication devices No person shall drive a motor vehicle on a highway while holding or using a hand-held wireless communication device or other prescribed device that is capable of receiving or transmitting telephone communications, electronic data, mail or text messages. Display screen visible to driver prohibited No person shall drive on a highway a motor vehicle that is equipped with, carries, contains or has attached to it a television, computer or other device with a display screen if the display screen is visible to the driver.

There are exemptions specified under the Act; however, but only when all of the following conditions are met: • The motor vehicle is off the roadway or is lawfully parked on the roadway. • T he motor ve h ic le is not i n motion. • The motor vehicle is not impeding traffic. In other words, if you are operating a vehicle and you have to conduct business on your electrical communications device, pull over to the side of the road (exercising due care and attention, of course), put the vehicle in park, and ensure you are not blocking traffic, before you handle that call. One might read this wording and say, “Yeah, but that only applies to driving on a highway, and making or taking calls.” We are not convinced that “construction sites” will be exempted from these amendments. They certainly have not been

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If you are operating a vehicle and you have to conduct business on your electrical communications device, pull over to

so I can continue to work laterally [multitask].” The following are some of the precautionary measures civil construction companies should take to ensure compliance with the act. Establish a Company Policy • Clearly indicate that no one is permitted to use a cell phone or other electrical communications device while operating a motorized vehicle.

• Indicate the types of devices that are prohibited under the act and your policy. • Indicate, also, where appropriate, what types of devices may be used to be in compliance (e.g., “handsfree” devices). • Your policy should clearly state that all personal communications devices must be off during work hours. • Forepersons and/or supervisors may be required to occasionally

the side of the road! specifically addressed as “exemptions.” There are plenty of instances when, because of the “distraction” of handheld communication, a worker may not hear a backup alarm or may not see a coworker or other persons close to the equipment they’re operating. Construction companies need to be proactive in reducing these potentially life-threatening hazards. As Vince Bellissimo, President of Timbel Limited, says, “This [legislation] will be a good thing for safety – keeping the roads safer for our workers as they travel to and from their worksite. Today, too many people are multitasking out there, yet they’re not equipped to do so. “Texting” is not something one should do while driving!! I’m switching to Bluetooth technolog y…going ha nds-f ree…

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• As an employer, you may wish to seek legal advice / guidance regarding your policy. Training To ensure these amendments and your policy are clearly understood, conduc t t ra i n i ng sessions w it h any workers that typically drive a vehicle – or operate heavy equipment – as part of their job, and may be required to communicate via an electronic device while performing those tasks. Provide Proper Equipment

use cell phones or other electronic devices while working on a project or site; however, only when it can be done safely.

There are several different types of “hands-free” technology available that would enable your workers to continue electronic communication on-the-job and still be in compliance. For example, starting in 2009, all new vehicles purchased by Dufferin Construction Company have Bluetooth capability, and have switched their “Mike” phones to a Bluetooth-

ready unit. According to Jim LaFontaine, Dufferin’s Health, Safety and Environment Manager, “The new phones are great … [The device] attaches to the driver’s visor … has one-touch call answering … voiceactivated calling … and the sound goes through the [vehicle’s] sound system speakers.” Similar provisions to these new Ontario amendments are already in effect in Newfoundland-Labrador, Nova Scotia, and Quebec. As a civil construction employer in Ontario, you now have a choice to make: be proactive, and take reasonable precautions to ensure the safety of your workers (and compliance with this legislation); or, take the risk of doing nothing. It’s your call!!! ■ Don Del Vecchio is Manager, Member Services, at OSWCA. He’s available via email at don.delvecchio@ oswca.org.

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A Boost for Students

OSWCA’s bursaries program rewards students who are excelling in an engineering program By Stephen Murdoch

I

n 2003, the Ontario Sewer and Watermain Construction Association (OSWCA) launched a bursaries program to recognize students who are excelling in an engineering program. Six years later, the program continues to help a growing number of post-secondary students meet their scholastic goals. Between OSWCA’s contribution and matching provincial funding, a total of $1.42 million has been invested in bursaries across the province. The revenue from which provides in excess of $75,000 per year in awards to worthy students from across the province. Graeme Clark, Director and Past President of OSWCA, has seen firsthand how a monetary award can assist the development of a student’s education. “Interest in our bursaries program continues to grow across Ontario. Our ten local sewer and watermain construction associations have seen an increase in the number of inquiries relating to bursaries. Each year, anywhere from one to three students in over 30 schools receive a bursary in the name of both the local association and the OSWCA,” explained Clark. According to Clark, the keystone of the association’s strategy in introducing a bursary program was to help promote the industry. “When we first launched the bursary program, the association hoped to shed light on the importance of the sewer and watermain construction industry. We felt the bursary program would allow students to learn more about a rewarding career in our industry, however, the program became much more than that. The bursary program confirmed the importance of investing in the skills and potential of up-and-coming students.” The Undergrounder / August 2009 • 19


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with the information they need to make informed decisions. The strength of the bursary program can be traced to its community roots. “Local associations are encouraged to direct the criteria that they see fit. Working with the universities and colleges in their respective communities, they can then select the recipient,” said Clark. The list of post-secondary schools that are involved in the bursary program reads like a who’s who of education. “The University of Western Ontario, McMaster University, Conestoga College and Georgian College are but a few of schools that have awarded our bursaries. Although each school may have their own set of criteria, each has done an admirable job of raising the overall profile of the bursary.” Clark feels since its inception, the bursary program has helped to raise the overall profi le of the industry. “The bursary is intended to promote careers in sewer and watermain construction and it has done just that. Across the province, we are seeing interest in our industry grow and are fielding questions from a number of students. This is an accomplishment the entire industry should take great pride in.” The OSWCA’s commitment to education doesn’t end with the bursary program. “Our current education initiative is broader and includes donations to McMaster University and Georgian College. The funds for McMaster University will be used to establish a permanent chair in heavy civil engineering.” Clark then goes on to explain how the endowment will be used by Georgian College. “The donation to Georgian College will help reestablish their civil technologist and technician programs. Best of all, we have directors who sit on the civil advisory boards at both institutions that can help when called upon.” An additional initiative that OSWCA has helped steer is raising awareness and interest in jobs in the construction industry. “As founding members of the Ontario Civil Construction Careers Institute, we have undertaken an aggressive campaign aimed at high school kids. The intent of it is to link students interested in the civil construction industry with the information they need to make informed decisions. This project along with the bursary program is meeting our objective of promoting our industry,” Clark concluded. ■ To learn more about OSWCA bursaries, log on to www.oswca.org.


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What’s Happening with the WSIB

Restructured SWAs, fewer exemptions, possible rate changes By Jean Feingold

C

harged with promoting workplace safety and compensating Ontario workers who are injured on the job, the Workplace Safety and Insurance Board (WSIB) is working to put itself on sounder financial and operational footing. Toward this end, efforts are underway to streamline its own operations as well as considering premium rate increases to employers and eliminating some coverage exemptions.

Realigning the SWAs In late 2008, the WSIB announced its plan to realign the 12 Safe Workplace Agencies (SWAs) which deliver injury prevention education and consulting services, explained Don Del Vecchio, Manager, Member Services, for the Ontario Sewer and Watermain Construction Association (OSWCA). These are being reduced to only four groupings in a consolidation process that should be completed in 2010. OSWCA members will be in the new Risk

The Undergrounder / August 2009 • 23


Group A covering the construction, aggregates, electrical utilities and transportation sectors. “One of our contractor members’ major concerns with this is the potential watering down of services they now receive,” Del Vecchio commented. “The new SWA will be spreading resources too thin.” WSIB has assured the industry that its goal is to maintain and hopefully increase the front line field service and products, such as seminars and training materials, while consolidating administrative costs. The existing SWA for the Construction Sector is the Construction Safety Association of Ontario or CSAO. Much of the training materials, seminars and other CSAO services are provided to construction companies without additional charges, as they are covered under the normal WSIB premium rates. Other SWA’s bill their clients, who typically pay lower WSIB premium rates, for these same services. The WSIB has indicated it intends to maintain the CSAO model for everyone from now on, but Del Vecchio is skeptical. He is also concerned the quality of training will decline. In the past, CSAO hired experienced tradespeople and people with sector specific on-the-job knowledge to do consultancy and training in the fields in which they had worked. “Now we are concerned the trainer might only have worked in utilities or trucking and not understand the construction sector,” he noted.

New premium rates possible Del Vecchio feels WSIB will probably recommend increasing the rate schedule for sewer and watermain workers when its staff provides suggested rates to the WSIB Board of Directors in mid-summer. Currently these workers are in two rate groups: 711 for road building and excavating at $4.68 per $100 of payroll and 732 for heavy civil construction at $6.34 per $100 of payroll. The maximum yearly contributory earnings per worker on which premiums are charged is $74,600. These premium rates are calculated using a complex formula of actuarial assumptions based on injury and claims experience in the field and WSIB’s expected investment returns. If investment income declines, as it has recently, higher rates for employers could be recommended. Both the payroll rate and the maximum yearly contributory earnings per worker could increase. Employers will have the opportunity to comment before rates become final in September. However, Barrister and Solicitor Les Liversidge believes there will be no rate increase in 2009 because Ontario Premier Dalton McGuinty said last fall this was not the time to increase taxes. Ways companies can save While WSIB rates are much the same for all sewer and watermain companies, those with good safety performance in the field can have a percent of their premiums

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Executive officer exemptions to end

those with good safety performance in the field can have a percent of their premiums returned via rebate. returned via rebate, Del Vecchio explained. Those with poor safety performance can be assessed a surcharge by the WSIB via their CAD-7 Cost Statement. “Typically, safer companies would prefer lower premiums up front because it would give them an advantage in bidding on jobs,” he noted. Under WSIB’s workplace “Safety Incentive Programs,” companies can join Safety Groups. Each Group of at least 40 companies - not necessarily in the same industry meets, shares best safety practices and works together to create and maintain safer workplaces. “Each program year, employers in the Group identify five health and safety objectives to work on for that year from a list provided by WSIB,” explained Del Vecchio. Achieving these objectives, documenting them to WSIB and successfully completing a validation audit make the Group’s fi rms eligible for rebates of up to eight percent of the WSIB premium. Everyone in the Group must meet the objectives and the overall group must achieve at least a 60 percent audit score or no one gets a rebate. There is no penalty for

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signing up and failing to meet the goals, but peer pressure from other group members encourages companies to comply.

Currently all executive officers of construction companies are exempt from paying WSIB premiums, as are executive officers in other industries including forestry, mining and transport. This will change for most construction business officers when these exemptions expire July 1, 2012. Only the CEO or equivalent of each construction company will continue to be exempt. This change will affect only the construction industry. Exemption elimination is designed to address situations where workers claiming executive exemptions have actually been performing hands-on construction work. If injured on the job, these people were still eligible to receive workers compensation from WSIB even though nothing had been paid into its fund on their behalf. The elephant in the room WSIB needs additional funding because of its unfunded liability (UFL), which was estimated at $11.5 billion on December 31, 2008 without taking into account full indexation. Liversidge said if fully indexed, the UFL would be $13.5 to 14 billion. WSIB had hoped to break even by 2014, but has announced it knows that will not happen. Large investment losses are factored into the UFL. In addition, some companies have operated without paying WSIB premiums. Under the law, should their employees be injured, they are still eligible for benefits, said Del Vecchio. When such illegal operations are discovered because of a worker’s injury, the company is fined heavily, but the fine is usually much lower than WSIB’s costs

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The WSIB has to start thinking outside the box and do their business in a new way. for benefits to the worker and his or her family. Such revenue shortfall is also charged to the UFL. Projections of the future UFL make assumptions of reduced lost time injury rates, a seven percent return on investment and declining average claim duration, none of which have proven true, Liversidge pointed out. He also sees the current recession differing from those of the past because there will not be a bounce back recovery in significant Ontario industries like automotive manufacturing, so “WSIB’s future revenue streams are going to be significantly lower which will make it tougher to meet their targets.” He believes the UFL will never be eliminated because when the zero level approaches, benefits are likely to be enhanced at higher cost. One bright spot is the beginning of the release of regular quarterly financial reports by the WSIB. The first was issued for the end of 2008. “They’ve made a commitment to be more open with the information,” Liversidge said. “I think WSIB Chairman Steve Mahoney has firmly and strongly followed through on that commitment. Once the financials come out and people understand what the state of the union is, that imposes a certain discipline on the part of the stakeholders.” Improving WSIB Liversidge suggests a comprehensive program for WSIB to provide more positive benefits to the construction industry. “The WSIB has to start thinking outside the box and do their business in a new way,” he stressed. “To get there, part of that is to forge a stronger partnership with construction employers.” First, he recommends seating a senior construction employer on the WSIB Board of Directors and creating a construction employer advisory committee. To solve the critical problem of increased average claims duration,

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WSIB needs the help of a blue ribbon task force composed of impartial legal and insurance experts. This task force would have 90 days to determine what is causing this problem, which started after the law changed in 1997, and how to fi x it. “WSIB needs to facilitate value stream analysis on all of their operations to become more efficient and more effective,” Liversidge said. Because the statute is much as it was 100 years ago, “WSIB should strike a legislative reform advisory committee of experts in the workers compensation field so there’s a perpetual opportunity to get ideas for change and reform,” he said. He also wants reform in WSIB’s costly labor market reentry program designed to get injured workers back to work. “The bottom line is the WSIB has to get back to insurance basics,” said Liversidge. “They must get back to their core mandate of promptly compensating injured workers and facilitating a return to work based on loss of income due to injury and not economic conditions, and cut out bells and whistles and frills. There is a sincere effort on the part of the board and Chairman Mahoney to tackle these problems and come up with long term sustainable solutions.” “OSWCA’s position on WSIB funding is that we would encourage the WSIB to make its internal systems more efficient and more effectively utilize the funds that employers - our members - are contributing to them,” Del Vecchio said. “We still believe there is much waste of resources at the WSIB. They have problems tracking claims and overpaying. The WSIB is not unlike a leaky water system that needs some new pumps and must replace some sections of pipe.” ■


Member Profile

50 Years of Excellence

MIG Engineering a willing partner with other firms, committed to community By Stephen Murdoch

P

lenty of companies can boast 50 years in the industry, but few have the st ay i ng power of M IG Engineering. MIG (pronounced M-I-G) ranks among the top players in its field, particularly for a small firm averaging 25 staff. Through those 50 years, MIG Engineering has been able to bring added value to their clients by constantly enhancing their service-offerings and striving to remain a customerdriven company.

Ma r t y Raay ma kers, P resident of MIG Engineering, and his team have seen their company come a long way since their humble beginnings in 1959. “MIG Engineering was preceded by the firms of Monteith Ingram Graham Limited, established in 1985, and Monteith-Ingram Engineering Limited, established in 1959. Monteith-Ingram was established by James (Jim) Monteith and Gary W. Ingram. Jim took over the reins from his father, J. C. Monteith, an engineer and surveyor who had started his

practice in 1928 after working with C. E. Jones,” explained Raaymakers. However, it was in much later that MIG expanded their offerings. “We evolved from our early municipal roots in the late 1950s to the multidisciplined engineering and project management fi rm we are today,” he added. Raaymakers feels the continued growth of the Sarnia-based company can be attributed to several factors. “Instrumental to our progress has been our diligence in procuring work

Since 1988, MIG has provided design and project management for many components of the over $200 million in improvements to the Blue Water Bridge Canada Plaza.

The Undergrounder / August 2009 • 27


and landing major projects through continuous business development and concise, honest and professional proposals. We are respected by our clients for our attention to detail and our creativity.” It’s this respect that has brought forth opportunities to form strategic relationships by larger firms for both long-term and project specific sharing of resources. “We have established relationships with over a dozen larger and smaller engineering and architectural firms, some

for as long as over twenty years. This has allowed us to augment our own services and to bring their expertise to projects we are managing.” Contributing to the firm’s success through its history is not only its willingness to partner with other fi rms, but its commitment to community. “Our firm’s past and current senior staff has always been involved with outside organizations, including various committees, provincial and municipal advisory boards, board

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positions on associations—and the list goes on. We are strong believers in giving back to the communities we serve and our industry. Whether it’s sitting on Consulting Engineers of Ontario or assisting with the local Chamber of Commerce, we are well known and respected as a supporter of a variety of initiatives.” Servicing an ever-evolving industry has meant that even at 50 years of age, MIG Engineering must make a concerted effort to grow and adapt alongside. “We pride ourselves on offering complete project services utilizing in-house professionals together with associated subconsultants. Through the years, we have designed and construction managed over 300 bridge structures in the tricounty area as well as dozens of sewage and water systems, roads and municipal infrastructure projects, and buildings over the course of 50 years. This is an accomplishment we are dearly proud of,” Raaymakers went on to say. Many projects completed by MIG Engineering are important to both the public and the business community. “Our senior staff and predecessors have played pivotal roles in some large projects both in our community and provincially. We helped drain Lake Wawanosh and Lake Smith, engineered major urban streetscapes, designed municipal buildings, designed the Telfer Diversion project and both of Ontario’s Flying J Plazas and managed the construction of Sarnia Chris Hadfield Airport.” The impressive list of accomplishments for MIG Engineering doesn’t end there. “We also played major roles in the CN Tunnel and the Blue Water Bridge second span and designed and managed many components of the Blue Water Bridge Canada customs and toll plaza.” MIG Engineering has also gained notoriety for their work in pipeline engineering and project management. “We are committed to full automation of those services which w ill improve ou r produc t w it h respect to cost, schedule and quality.


Our team has the enviable reputation as the ‘go to’ company in the pipeline industry supplying services throughout southwestern Ontario from feasibility planning to commissioning. We have been involved in almost every pipeline project in the area since the mid 1980s, including six world-scale international pipelines under the St. Clair River. The firm was awarded an Award of Excellence in 2006 by the Consulting Engineers of Ontario and was nominated again in 2009.” Like most leading-edge engineering firms, MIG Engineering is working diligently to maintain their market share and looks forward to the challenge of staying ahead of the competition. “The biggest challenge in our business is to continually follow the constant evolution of technologies and to fi ll our clients’ growing requirements. Fortunately, we have first-class project leaders who understand the importance of customer satisfaction.” Employee development is crucial for the growth and prosperity of any business and MIG Engineering is no exception. “We heavily rely on the professionalism and know-how of our employees. Through the years, we have encouraged our employees to think outside the box and this has paid great dividends. We recognize a responsibility to provide a healthy, safe and profitable business to our staff and in return they provide our clients with outstanding service and technical advice. The investment in our employees has played a role in our continued achievements.” In recognition of MIG Engineering’s 50th anniversary this year, the company plans on celebrating with those that have played a role in the fi rm’s growth. “We are planning a barbecue for our clients and colleagues as a thank you for their part in our long history. To mark our anniversary we are donating our services to Goodwill Industries to refurbish a new office complex as our 50th Anniversary Legacy Project and MIG is the Artistic Benefactors to the Starbright Theatre production

running six weeks at Sarnia’s Imperial Theatre.” Although MIG Engineering has met the strategic priorities set out in their recent action plan, there is still room for improvement, contends Raaymakers. “We must continue to meet and exceed the expectations of our clients. In the past 10 years, we have been finding more and more clients wanting day-to-day services, meaning we are their main source of engineering consultation. We

are proud of the fact that they call upon us to assist with their everyday challenges. From our top 30 clients in 2008, 20 have been clients for over 20 years, some for the entire 50,” concludes Raaymakers. Given the company’s continuous growth throughout the years and its reputation for high- qualit y work, it seems the market agrees with that statement. ■ To learn more about MIG Engineering, log on to www.migeng.com.

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Buyers’ Guide & Trade List ACCOUNTANTS/MANAGEMENT CONSULTANTS Rosenberg, Smith & Partners LLP .................25

CONSULTING ENGINEERS Terraprobe Ltd. .............................................18 Underground Consulting Inc. .........................22

AGGREGATES FPL Aggregates ............................................22 Hard-Co Sand & Gravel/Construction.............20

CONTRACTORS Drexler Construction Ltd. ..............................10

ASSET & MAINTENANCE MANAGEMENT SOFTWARE Maestro Technologies Inc. .............................21 BONDING & INSURANCE Aviva Canada ...............................................28 Cunningham Lindsey Canada Limited ............30 The Guarantee Company of North America ......8 Jones Deslauriers Insurance Management Inc 21 Masters Insurance Limited ............................24 Travelers Guarantee Company of Canada .......10 Trisura Guarantee Insurance Company...........26 BORING & DIRECTIONAL DRILLING Earthboring co, Ltd. ..............outside back cover CONCRETE PIPE & PRODUCTS MANUFACTURERS Anchor Concrete Products Ltd. ...................... 13 CONCRETE PRODUCTS Anchor Concrete Products Ltd. ...................... 13 Cedar Infrastructure......................................18 Munro Concrete Products ...............................8 CONSTRUCTION EQUIPMENT RENTALS & SALES Crane Supply ................................................22 CONSTRUCTION LASERS Direct Equipment Ltd. ...................................24 GeoShack Canada ..........................................6 Ontario Laser Rentals Ltd. ............................. 17

CONTRACTORS - PAVING Interpaving Limited .......................................22 ENGINEERS The Thompson Rosemount Group, Inc. ..........20 EQUIPMENT SALES, RENTALS & SERVICE NORTRAX ....................................................29 United Rentals ................................................4 EXCAVATING Ontario Excavac............................................22 FINANCIAL SERVICES ANDREIS FINANCIAL SERVICES....................18 HEAVY EQUIPMENT SUPPLIERS Toromont Cat..................................................3

PRECAST STRUCTURES Anchor Concrete Products Ltd. ...................... 13 PUMPS ITT FLYGT .............................. inside back cover SHORING Direct Equipment Ltd. ...................................24 Ontario Laser Rentals Ltd. ............................. 17 SURETY BONDS The Guarantee Company of North America ......8 Stevenson & Hunt Insurance Brokers Ltd. ......25 Travelers Guarantee Company of Canada .......10 TRAFFIC CONTROL PRODUCTS Anchor Concrete Products Ltd. ...................... 13 Stinson Equipment Ltd .................................14 TRAILERS K.I.D. Trailer Equipment...................................8

MARINE CONTRACTORS McNally Construction Inc. .............................22

TRENCH BOXES Direct Equipment Ltd. ...................................24 Ontario Laser Rentals Ltd. ............................. 17

METAL FABRICATING MSU Mississauga Ltd. ..................................16

TUNNELING CONTRACTORS & ENGINEERS McNally Construction Inc. .............................22

PIPE BURSTING & UTILITY TOOLS Footage Tools Inc..........................................30

VACUUM EXCAVATING Ontario Excavac............................................22

PIPE SUPPLIERS Ideal Pipe .....................................................10 Royal Pipe Systems ................ inside front cover

WATERJETTING & INDUSTRIAL VACUUMING Aquablast Corp. ............................................16

PRECAST CONCRETE PRODUCTS Anchor Concrete Products Ltd. ...................... 13 M-Con Products Inc......................................20

WATERWORKS PRODUCTS SUPPLIERS Crowle Fittings & Supply Ltd.......................... 12 EMCO Waterworks Corporation .....................21

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For over 62 years Earth Boring has excelled in Trenchless Technology

Specializing in auger boring, directional drilling, tunneling and pipe ramming, we proudly offer a wide range of underground services including horizontal well construction and soil remediation.

Need design consultation and advice for your trenchless project? We have the experience-based solutions you’re looking for.

www.earthboring.ca • gene@earthboring.ca 1576 Ifield Road, Mississauga, Ontario L5H 3W1 Tel: (905) 277-9632 • Fax: (905) 274-9040


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