State COVID-19 Mandate Rescinded
The State of Minnesota has rescinded its COVID-19 vaccine mandate (policy 1446). There no longer is a vaccine/testing mandate for state contractors.
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Wage Allocations
The consolidated wage allocation sheet is available, highlighting wage compensation is taxable and is subject to prevailing wage reporting. Download it here.
Login credentials are available for all AGC members - contact Renee if you need some! |
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Statement on the End of Minnesota's Legislative Session
The state of Minnesota has a projected $9.25 billion budget surplus and most of the surplus was left on the bottom line as the House and the Senate adjourned on Monday.
“It is beyond frustrating that our elected representatives cannot find a path to agree on investing the historic amount of state surplus funds available to improve the lives of all Minnesotans," said AGC CEO Tim Worke. "Building and highway infrastructure is the backbone of the state’s economy, and it supports future business vitality. Sadly, it appears that state leaders have failed to act on a once in a generation opportunity to make significant investment in Minnesota’s future.”
What does this mean for the MN Construction Industry?
Since this is the second year of the fiscal biennium and the budget was set last year, the government will not shut down. However, the legislature’s work is not done –a capital investment bill (public projects) was never publicly released, a tax bill agreement wasn’t passed, and most spending bills, such as transportation, were not pushed across the finish line. The even-numbered year of a biennium is commonly referred to as the year for a capital investment/bonding bill. No bonding bill means no additional public project investment for state assets and some local government construction projects.
Where do we go from here?
A good chunk of the budget agreement framework that affects construction was agreed to, but not voted on by the legislature and sent to the Governor. The overall budget agreement included a $1.4 billion general obligation bonding bill with $150 million general fund cash for projects. As you may have heard, there was an agreement on a $4 billion package of tax cuts and relief. Transportation dollars for the federal matching funds and bonding agreements were reportedly close. Only the Governor can call a special session for the legislature to finish their work. It’s unknown if special session will occur or not.
AGC urges the legislature to get their work done and make significant investments for Minnesota’s future. AGC of MN Government Affairs staff appreciates member outreach throughout the session. Stay tuned for any updates and reach out with any questions.
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Final Week: Out with a Whimper
Despite the Governor and legislative leaders agreeing to a framework of tax cuts and spending initiatives to utilize some of the state’s $9.25B surplus, it did not come to fruition to become law prior to the end of the legislative session on Monday.
The question now is: will there be a special session for the Legislature to pass the areas they’ve agreed to or are close to agreement?
Only the Governor can call a special session. While Governor Walz previously stated that he would not call a special session, earlier this week he said lawmakers shouldn’t get the ball to the one-yard line and go home. House Speaker Hortman stated she would ask the Governor to call a special session to finish their work. Senate Majority Leader Miller said he was not interested in a special session but did leave the proverbial door cracked open as a possibility. If a special session is called, it’s highly likely that agreements on the tax cuts, capital investment (bonding), and other budget/spending bills will be reached before they return.
The longer the legislature stands in adjournment, the less likely a special session will be called. They are back in their districts and campaign season has commenced. We’ll know more next week if there is likelihood for a special session.
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Update on Materials Pricing/Supply Chain Issues with Public Owners
AGC continues to monitor the ongoing challenges of unpredictable material price escalations and supply chain disruptions. Public owners have reviewed the industry recommendations sent at the beginning of May to address the volatility. That said, there has not been a formal response to those recommendations as of today. Please keep sending information regarding these issues to Laura Ziegler. We keep owners apprised of the changing market dynamics and situations contractors are experiencing with agencies.
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Governor Walz Appoints Nancy Daubenberger to Serve as Commissioner of the Department of Transportation
Governor Tim Walz this week appointed Nancy Daubenberger to serve as the Commissioner of the Minnesota Department of Transportation (MnDOT). Nancy has led the agency since the departure of former Commissioner Margaret Anderson Kelliher.
Nancy Daubenberger has worked for the Minnesota Department of Transportation for over 22 years, in engineering and management positions. Nancy was appointed Deputy Commissioner and Chief Engineer in December 2019. Prior to her current role, she served as the Assistant Commissioner for Engineering Services, the State Bridge Engineer, and also previously served in planning, project management and design roles for the MnDOT Bridge Office and Metro District. Before coming to MnDOT, she worked in consulting for about six years, in both bridge and road design.
Nancy was born and raised in Minnesota and holds a Bachelor of Science degree in Civil Engineering from North Dakota State University in addition to a Master’s Degree in Civil Engineering (with a structural emphasis) from the University of Minnesota. Nancy and her husband reside in Woodbury, Minnesota, where they raised their daughter and son.
Nancy has served for many years on AGC-MNDOT Joint Technical Committees and has been actively engaged in AGC’s work.
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Upcoming Meetings
2021 Bridge Awards and MnDOT/AGC Bridge Committee Meeting
Thursday, June 2
Noon lunch, following by awards ceremony at 12:30.
Meeting (hybrid) begins at 1:00 p.m.
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DIVERSITY, EQUITY & INCLUSION NEWS |
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Toolbox Talk: Preventing Suicide in Construction
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Wendy Sullivan Honored with Award
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Building Material/Waste Management Plan Template Draft: Review Requested
The Minnesota Pollution Control Agency (MPCA) is seeking feedback from contractors and industry professionals on draft building material/waste management template currently under development.
This Building Material Waste Management Plan Template aims to collect important data around material handling within the deconstruction, renovation, demolition, and construction field. This template is being created by the MPCA with the intention of being distributed to interested cities and counties for incorporation into their waste management program and solid waste master plans.
At this time, there are no building material management requirements at the local or state level. Cities have requested this template be created for best practices or potential future requirements.
In order to encourage more deconstruction, material salvage and reuse, and recycling, there needs to be improved transparency on what materials are in a building project, how much of those materials are in a project and establishment of management goals for these materials. Once this information can be quantified, it will help inform policies as well as needs for market development.
Your feedback on this matter would be greatly appreciated and this is your chance to provide input in the early stages of development.
There are three ways to provide feedback:
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6 ways to build stability when prices are skyrocketing
Everything costs more right now, from lumber to labor. In some areas, costs are so high, they’re outrunning construction bids and pushing hard-at-work firms into the red. But it takes money to make money, and construction firms need cash on-hand to mobilize projects and teams at exactly the right times. Otherwise, they risk falling behind and setting off a series of costly delays. Learn more
By Catrina Payne, CPA, from Wipfli LLP
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Full-summer overweight permits started in the central zone today, May 27. Spring load restrictions have ended statewide, and full-summer overweight permits have started in the south, southeast and metro zones.
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AGC of Minnesota welcomes the following new members: |
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6000 12th Avenue S
Minneapolis, MN 55417
Winston & Steels is a general contractor WMBE firm specializing in commercial and industrial projects.
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13932 Lake Drive
Forest Lake, MN 55025
Minnesota Utilities & Excavating specializes in commercial site utilities, earthwork, demolition, and environmental remediation.
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AGC Summer Member Meeting: Duluth
All AGC members are invited to join the AGC staff and Board of Directors on Wednesday, July 13 (4:30-6:30) p.m. for a member meeting at the Great Lakes Aquarium in Duluth!
Come get together with your industry peers, enjoy some food and drink, and tour the aquarium.
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St. Paul Saints Game with MBEX
Join the AGC Leadership Blueprint Alumni and Minnesota Builders Exchange (MBEX) Young Professionals for an afternoon of Minnesota Twins AAA baseball. On August 10 at 1:07 p.m., the St. Paul Saints will take on the Columbus Clippers (AAA team for Cleveland Guardians).
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2022 Sporting Clays Fundraiser
Reserve your team or sponsorship for the 2022 Sporting Clays Fundraiser, held on Wednesday, September 14! Proceeds go to the AGC of Minnesota Foundation, which provides scholarships to students pursuing a career in the construction industry.
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Save the Date!
Mark your calendar for the following AGC events coming up in the next year!
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Your Trusted Resource
Associated General Contractors of Minnesota
525 Park Street, Suite 110 | St. Paul, MN 55103
651-632-8929
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