News to Note: President’s Message to the UTCA - February 2005

Often it is said that the holiday season, between the middle of November to the middle of January, is the most hectic time of the year. Visiting family and friends near and far, preparing to host events and participate as gratuitous guests. From a business position, this time of year finds those in our industry trying to bid and secure work for the spring and summer months to ensure a solid work program for our employees and to provide a quality product for all our valued customers.

For those companies who bid and work on New Jersey Department of Transportation (NJDOT) projects, the end of the year saw an unexpected turn of events with state and federal funding. Executive Order 134, one of former Governor McGreevey’s last official decisions before leaving office in November, effectively put a stop on the bidding and awarding of NJDOT projects that have any federal funding. Although the NJDOT announced it would seek approximately $490 million in construction bids for fiscal year 2004, only $74 million in awards were completed from July 1 through December 30, 2004.

Obviously, Executive Order 134 is having a large impact on business in the state of NJ. The UTCA is working daily with Acting Governor Codey and his staff to find a resolution. On January 21, 2005, Judge Chesler rejected Acting Governor Codey’s legal action in federal court to prevent the Federal Highway Administration (FHWA) from withholding federal funds. The Judge’s ruling allows FHWA to continue to withhold federal funds from NJDOT’s state fiscal year 2004 program while the state and the federal government argue the merits of the case. A Federal Judge is set to determine the validity of Executive Order 134 which could release approximately 450 million dollars of NJDOT work currently frozen by Executive Order 134. With this state of limbo, it is difficult at best to keep the investment of our state’s infrastructure on an even keel.

As discussed previously in the President’s Message and this magazine, the UTCA continues to diligently campaign for increased funding to enhance the precarious state of NJ’s Transportation Trust Fund. Although Acting Governor Codey publicly acknowledged that an increase in the state fuel tax is required and would enhance the Transportation Trust Fund, no action has been taken to date. The UTCA, along with many NJ mayors, representatives and senators think that a dedicated increase of $0.15 tied to the consumer price index for inflationary trends is necessary now. The UTCA awaits action and continues to offer assistance to Acting Governor Codey and his legislative aides to ensure a timely resolution to this matter.

NJDOT Commissioner Jack Lettiere was our featured speaker at the January membership meeting in Jamesburg. Commissioner Lettiere recognizes the impact of Executive Order 134 on our industry and is working with Acting Governor Codey for a quick resolution. We were encouraged to hear that Commissioner Lattiere is committed to moving forward construction advertisements and awards so that the NJDOT reaches its goal of awarding $565 million by June 30, 2005.

Although we are now experiencing the frigid temperatures in the Northeast, approximately 130 members and spouses took advantage of a more tempered climate while attending the executive seminar in Central America during the early part of January. Our first stop was Costa Rica. An interesting ride from the airport to the resort took us through the mountainous terrain of coffee plantations and rain forests to the pacific coast. Viewing the twelve ecological systems of the country offered a look at environmental balance. While in the Capital of San Jose, which is developing into the economic hub of Central America, presentations were made by the Maria Lopez, secretary for transportation, Brad Corbett, Jr. of S&B Products and an address by Jaime Molina, president of the Latin America Federation of Construction. Our next stop was Panama City for a tour of the Panama Canal. Fifty miles of engineering marvel, constructed in 1907, allows passage through Central America in approximately 8 hours. This is compared to the 24 hours it takes to traverse around South America. What would the world do without engineers?

Congratulations to our state legislators who received our prestigious Arthur Young Memorial Legislative awards. Assemblywoman Linda Stender was instrumental in working diligently to have legislation enacted for value engineering and Assemblyman Wilfredo Carabacco for legislation addressing public utility liability for contractor’s costs incurred for unmarked or wrongly marked underground utilities. Both legislators worked hard to promote needed reform in the industry.

In our industry, safety is on everyone’s minds. To this end, the UTCA has an ongoing project to conduct and promote seminars to educate our workforce. I encourage you to read the advertisement mailings for the next program date and become involved. The UTCA is also in contact with public agencies to improve ways that safety related matters are handled in bid documents. Line items regarding police control, traffic control, etc. are in the future.

Almost six months through my term as UTCA president, I would be remise if I did not acknowledge the professionalism of our staff. Bob Briant, Sr., CEO is handling the smooth transition of Bob Briant, Jr. as Executive Director. Kevin Monico and Eric Larkin are handling legislative affairs and Mike Devito follows up with Member Services. Laura Hagan handles Advertising Sales, and Joanne Specht is the Administrative Assistant that gives everyone a hand. The staff is here to help with problems encountered in the industry. Involved members allow us to promote a united voice and express your concerns for the betterment of all.

Longevity is the true indicator of success. Congratulations to Almasi Contractor’s 75 years and H. H. Dehart and Sons for 125 years in business. Keep up the good work!

Lastly, with the induction of President George Bush for a second term, we wish him the best in handling our domestic and international problems. Since the formation of our Government in 1776, we have had the longest surviving democratic government in the world. We have survived because, among other things, we have a free standing army, freedom of choice for all and effective checks and balances in our political system. May we as a country continue to grow, have the safe return of our troops from Afghanistan and Iraq and be at peace in the next four years.

~ James E. Johnston, Jr.