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Construction Industry Council (NYSCIC)
November 10, 2004 Meeting Minutes
Staff
Contact:
Attendance
Nick DuBray, The Business Council of NYS
Liz Elvin, AGC
Jack Endryck, BIE of NYS
Diana P. Georgia, Coppola Ryan McHugh Riddel
Jeff Grube, Chesterfield Assoc.
Roger Gutheil, ABC/GMR Associates
Earl N. Hall, Syracuse Bldrs Exchange
Belinda L. Heckler, The Vandervort
Group, LLC
Aaron Hilger, Builders Exchange, Inc
Chip Jones, ABC
Kerry Kirwan, The Business Council of NYS
Christopher A. Lindsay, Eastern
Contractors Assoc.
Victor Macri, VMJR Companies
Jim McCulley, ABC
Rebecca Meinking, ABC
Tom Minnick, The Business Council of NYS
Michael Misenhimer, Empire State
Subcontractors Assoc.
Robert Moses, Bond, Schoeneck & King
John Nerney, ABC
Matthew Pepe, CIC - Westchester
Barbara Rodriguez, AIA New York State, Inc
Brian Sampson, Rochester Business
Alliance
Rick Schmalz, BIE of NY
Elliott Shaw, The Business Council of NYS
Donald J. Smith, Urban Engineers
Steve Stallmer, AGC
Thomas V. Walsh, Jackson Lewis LLP
Jeff Zogg, GBC of NYS
Meeting Minutes
- Welcome and Introductions
Jack Endryck, Building Industry Employers of New York State and Chairman
of New York State Construction Industry Council, opened the meeting.
- Government
Reform / Vote for Jobs
Business Council President/CEO Dan Walsh gave
an overview of the The Business Council's updated
web page and the new Vote for Jobs Index. This
Index allows citizens and businesses the opportunity
to evaluate the voting records of individual
legislators on issues that affect the health
of New York's business climate. Additionally,
Mr. Walsh discussed the Knickerbocker Blog, which
is a project of The Public Policy Institute of
New York State, the research affiliate of The
Business Council. The blog is designed to highlight
critical issues of concern to Upstate.
Mr. Walsh thanked Mr. Endryck for his outstanding service
as Chairman of NYSCIC.
- Workers' Comp Update
Kerry Kirwan of The Business Council gave an update on the rate filing process.
The New York Compensation Insurance Rating Board (NYCIRB) had requested an
increase of 29.3 percent this spring. That rate was rejected by the Department
of Insurance. NYCIRB refiled for a 9.5 percent increase. The Department of
Insurance stated that they had some concerns with the methodology that NYCIRB
used in filing for the original 29.3 percent increase. The Department of Insurance
is specifically looking at Section 32 reserving practices and along with fraud
and has asked NYCIRB to do an industry wide call to gather further data. Ms.
Kirwan reported that the earliest estimate for a decision by the Department
of Insurance is December.
Ms. Kirwan also discussed the lobbying and advocacy
efforts by The Business Council on the issue of workers' compensation reform.
She stated that over 10,000 faxes were generated by The Council's e-advocacy
campaign. She closed her remarks by urging Council members to continue to voice
the need for fundamental reform with elected officials.
- 240/241 Issue Update
There has been little news and no change regarding this issue. The committee still supports the same two bills. Those bills are A.7213 (Morelle) and S.1710
(Volker). NYSCIC members were encouraged with the momentum that was built in 2004 and would like to maintain pressure in 2005.
- Legislative Program for 2005
No new changes were noted. The committee was
given a copy of the 2004 Legislative Program and asked to review it and send
in any requests for change before the next meeting so that everyone can review
the desired changes ahead of time. These recommendations for change will
be on the agenda for the January meeting.
- Annualization of Prevailing Wage Rates
Rebecca Meinking
of Associated Builders and Contractors, Inc along with Tom Walsh, Jeff Grube,
Roger Gutheil, and Chip Jones, all of ABC lead a discussion concerning annualization.
Ms. Meinking stressed that annualization was ABC's number one issue. Mr.
Walsh began by illustrating that eventually annualization will affect anyone
who performs public works.
The concern is how the DOL is looking at supplements/benefits.
On top of the public work hours, the DOL wants to see the private work hours
as a part of annualization. Then, they average the amount paid per hour from
the public and private hours worked and use that number rather than individually
using the prevailing wage. In the end there is always an underpayment of supplements.
This discrepancy may end up in court where the average case lasts for five
years. On top of the reimbursement for the underpayment, the company will
also be assessed 16% interest for each year the problem is not resolved. This
problem can quickly add up to seven figures.
In addition, speakers discussed
potential for liability. The DOL is retroactively going back to companies
and reopening cases using this annualization method. Any contractor doing
work in multiple jurisdictions can be judged liable.
ABC has come to NYSCIC
to formulate a strategy to resolve this issue and has asked members to participate
in a Task Force to lead the efforts. This Task Force has been created and anyone
interested in joining should contact Rebecca Meinking at the Empire State Chapter
of Associated Builders and Contractors, Inc. by phone at (315) 463-7539 or
by e-mail at meinking@abcnys.org.
- Closing
In closing, Chairman Endryck notified the committee
that this would be his last year as chair of NYSCIC. He thanked the committee
for their support over the years and applauded their energy throughout his
time as chair. Mr. Endryck also made a recommendation that Aaron Hilger of
the Builders Exchange, Inc. be his successor. We would like to thank Mr.
Endryck for his valued leadership of NYSCIC.
- Next Meeting
NYSCIC will meet next on January 18, 2005 from
3:00 p.m. to 5:00 p.m. at The Business Council offices in Albany. Some of
the meeting agenda is as follows:
- ADR
- Payroll Limitation Law
- Recommendations for change of 2005 Construction Legislative Program
- The newly developed Annualization of Prevailing Wage Rates Task Force will meet before the NYSCIC meeting on January 18 from 1:30 p.m. to 3:00 p.m. at
the same location.
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