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FHWA Administrator Nominee Withdraws
This week President Trump’s nominee to be the next Federal Highway Administrator asked to be withdrawn from consideration. Paul Trombino, former director of the Iowa Department of Transportation decided to stay in Iowa to take care of his ailing father. The Senate Environment and Public Works Committee (EPW) had already approved Mr. Trombino in October and the nomination was awaiting full Senate agreement. AGC supported the nomination in a letter to the EPW committee calling for his speedy approval pointing out that his demonstrated leadership at the state and national levels. No other individual has yet surfaced as a potential replacement. In the meantime, FHWA Deputy Administrator Brandye Hendrickson has been carrying out the Administrator’s responsibilities.
Administration Infrastructure Plan Likely in January
Key members of the Administration’s infrastructure team have made the public rounds in the past two weeks indicating that a proposal to fulfill President Trump’s campaign pledge to invest $1 trillion in various infrastructure categories will likely be released in early January. A 70 page proposal will lay out the Administration’s principals for infrastructure while working with Congress to craft specific legislation.
Without releasing details the Administration spokespersons have said that the plan will call for $200 billion in funding that will be paid for by cutting other federal programs. The $200 billion is intended to leverage federal investment to get to the $1 trillion level. The plan will cover a variety of infrastructure categories including, highways and transit, rail, navigable waterways, drinking water and wastewater projects. Other infrastructure categories such as energy and broad band would be addressed through regulatory initiatives. The funds would be divided into four general areas: $100 billion in “incentive” grants to states and local governments to cover up to 20 percent of eligible project costs.
Grants would be awarded primarily on the commitment to raise new non-federal revenue and to use creative procurement initiatives. $ 50 billion for an infrastructure block grant program to cover rural areas. This money would be distributed to states via formula. $ 50 billion to fund “transformative” projects, selected on a competitive basis by the Administration. Additional funding for existing federal loan programs that provide aid to infrastructure (TIFIA, RRIF, WIFIA, etc.) A significant portion of the Administration’s principals will focus on additional environmental streamlining efforts, permit process reform and other regulatory changes to speed delivery of federal projects.
The spokespersons have said that the Administration plan will not address FAST Act reauthorization or ways to address the Highway Trust Fund’s looming insolvency and would not propose a gas tax increase. However, the Administration official indicated a willingness to work with Congress to address these issues as part of the overall infrastructure effort.
Conaway Conference Registration and Hotel Information
The Conaway Conference is a collaboration between OCA and ODOT. Attendees will hear top-level discussions and gain knowledge from sessions that focus on hot topics. Once again this year there will be opportunities for OCA members to have discussions with district ODOT staff. Special session times will be allocated for this networking opportunity. This year’s Conaway Conference will be held on March 14 and 15 at the Hyatt Regency, downtown Columbus. Click here to register.
Hotel rooms with reduced rates are being held at the Hyatt Regency. To make your hotel reservation, please use the following link: https://aws.passkey.com/go/CAWY2018. After February 21, all unreserved rooms will be released. Contact Chris Engle or Rachel Sirca with questions.
Conaway Conference Sponsorship Available
Take advantage to sponsor this highly-attended event! The cost is $500. Your company name will be displayed on the big screen in the large conference room at the beginning of the event on March 14, and will also be inserted in each program distributed on both March 14 and 15.
To help you decide, here are the attendee numbers from last year:
1st day – ODOT attendees – 400
1st day – OCA attendees – 225
2nd day – ODOT attendees – 190
2nd day – OCA attendees – 80
You will be able to sponsor this event by going to our website at www.ohiocontractors.org. Contact Chris Engle or Rachel Sirca with questions.
Ohio Construction Company Cleared of $5M Pension Liability Claim
An Ohio-based construction company convinced a federal appeals court that it didn't owe $5.1 million in pension liability to an Iron Workers pension plan. Stevens Engineers & Constructors Inc. doesn't owe withdrawal liability to the Iron Workers Local 17 Pension Fund because the work identified by the union didn't fall within the jurisdiction of their previous collective bargaining agreement, the U.S. Court of Appeals for the Sixth Circuit held Dec. 13. The decision is a blow for the distressed Iron Workers pension fund, which is severely underfunded with a deficit of over $170 million. The Cleveland-based pension plan was the first to receive approval from the Treasury Department to cut participant benefits. Earlier this year, plan members approved cuts to their pension benefits in an effort to keep their pension plan from going insolvent.
An employer that participates in a multiemployer pension plan and withdraws from the plan is liable for its share of any underfunded benefits, a scheme also known as withdrawal liability. A special rule applies to employers in the construction industry. These employers aren't subject to liability if they completely withdraw from work in the jurisdiction of the CBA of the type for which contributions were previously required. The parties’ dispute started when the union assessed pension liability against Stevens, claiming that certain activities in a construction project that commenced after the company withdrew from the plan, involved work within the jurisdiction of their previous CBA.
Last year, a federal district court upheld an arbitrator's decision that the pension fund wrongly assessed the multi-million dollar liability against Stevens. Affirming the district court ruling, the three-judge panel said the power rigging work, which the fund disputed, wasn't work within the jurisdiction of the CBA because the agreement allowed Stevens to assign this work to another union. The fund couldn't use the power rigging work as a basis for assessing liability because the job's assignment to certain workers meant it was within their jurisdiction rather than the iron workers.
The judges followed rulings by the Seventh, Eighth, and Ninth circuits to conclude that withdrawal liability is defined by the jurisdictional provisions of the applicable CBA. Judge John M. Rogers issued the opinion, which was joined by Judges Eric L. Clay and Jeffrey S. Sutton. Weston Hurd LLP and Cavitch Familio & Durkin Co. LPA represented Stevens. Goldstein Gragel LLC represented the fund. The case is Stevens Eng'rs & Constructors, Inc. & Iron Workers Local 17 Pension Fund, 2017 BL 445041, 6th Cir., Nos 16-4098; 16-4099, order affirming district court opinion 12/13/17.
OCA and ODOT to Hold Partnering Training
It has been a few years since we have had Partnering Training around the State, and the ODOT/OCA Partnering Committee has scheduled a refresher course to be held at various times and locations throughout the State. We ask that you strongly consider sending your staff that have project management responsibilities to hear the current state of Partnering with ODOT and as a show of support for this effort. Please see the link below to have your staff sign up for the 2018 Statewide Partnering Training. There are six separate locations where the trainings will take place. The obvious choice is to select the location in the Districts where you have the most work but this is not mandatory. If the time and location is inconvenient for some of your staff, they may select any other location. The training will be from 8:30am-12pm.
http://www.dot.state.oh.us/Divisions/ConstructionMgt/Pages/2018-Statewide-Partnering-Training.aspx
The deadline for sign-up will be Friday, January 5th. Please contact Chris Engle with any questions.
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