The power and prestige of the historic Jonathan Club in downtown Los Angeles was a fitting venue for the CalAPA Annual Dinner and Awards program attended by more than 100 CalAPA members and special guests.

The Jan. 12 event included the annual election of members of the Board of Directors for 2024, plus the installation of association officers for the coming year. State Sen. Roger Niello (pictured) delivered the keynote address, and former Asphalt Institute Senior Engineer Bob Humer was honored for his many years of service to the asphalt industry.

The gala event was preceded by a meeting of the CalAPA Board of Directors, plus a separate "Women of Asphalt California Branch" luncheon, which took place on the 70th floor of the adjacent Hotel InterContinental in downtown Los Angeles with uplifting insight provided by pioneering women who have found success in the asphalt industry.

CalAPA recently marked the 70th anniversary of its founding, and the annual gala at the historic Jonathan Club is an always popular event that brings industry leaders together to mark important association and industry accomplishments, pay tribute to its leaders, and look to the future.

Len Nawrocki with Valero (retired) led the group in the Pledge of Allegiance, and Steve Marvin with LaBelle Marvin performed the invocation. A moment of silence was observed in recognition of the asphalt industry family that passed away over the last year.

The board members for 2024 were presented to the membership, and the passing of the gavel ceremony took place as outgoing Chairman Jeff Benedict with Valero administered the oath of office to incoming Chairman Scott Metcalf with Ergon Asphalt & Emulsions. The regular board meeting gavel apparently was inadequate, so Metcalf handed Benedict a "Hammer of Thor" version in recognition of his leadership over the past year.

The Board of Directors, under the association's updated bylaws, was elected on staggered terms. Those who were elected for two-year terms at the meeting were Benedict, Metcalf, Chris Handley with Tullis Inc., Kody King with Mercer-Fraser, Eric Richard, Reed & Graham, Steve Ward with Pavement Recycling Systems, Chris Gerber with G3 Quality, plus advisory board members Phil Reader with George Reed Inc. and James Frasier with R.J. Noble Co. The association's officers for 2024 will be Metcalf (Chairman), Vice Chairman Frank Costa with DeSilva Gates, Treasurer Scott Bottomley with Sully-Miller and Secretary Chris Gerber with G3 Quality. Benedict will serve as immediate past chair as well as serve on the Executive Committee.

The oath of office for CalAPA board members states, in part, that they will represent all members and place industry interests above personal and company interests, and also adhere to local, state and federal laws, including anti-trust law, CalAPA bylaws, conflict-of-interest policies and the association's Code of Ethics.

Outgoing chairman Benedict highlighted a few of the association's accomplishments during the past year, including recognizing new companies that have joined the association, effective engagement on the legislative and regulatory front, the comprehensive asphalt market forecast and supporting national efforts to protect and enhance asphalt's market share. He also recognized the Women of Asphalt California Branch members, who were well-represented at the event, and noted that the association will be establish a charitable foundation to support workforce recruitment and development activities.

Several of the Women of Asphalt California Branch members held an informal luncheon earlier in the day, sponsored by WofA-CA Branch Co-Chair Mimi Le of MCK Services. Inspiration and insight born of experience was provided by Deana Ward and Allison Ragan. Ragan's company, Black Diamond Asphalt, was profiled in a special "Women of Asphalt" issue of CalAPA's association magazine, "California Asphalt," which can be viewed on-line HERE. The Women of Asphalt California Branch page is HERE.

The keynote address by Niello was timely as the Newsom administration earlier in the week introduced a proposed $291 billion state budget for the 2024-25 fiscal year that begins on July 1. Of note, the governor's budget proposes various fund transfers, delays in some programs and a substantial draw-down on the state's "rainy day" fund to plug a massive budget deficit that could be $30 billion or more than $60 billion, depending on whom is talking.

Niello is a Certified Public Accountant by training and a member of the Senate's fiscal committee. The Republican from Fair Oaks expressed concern with the Newsom Administration budget, describing the fiscal strategy as, "If you have a hole ... you can solve it by assuming more revenue." Whether those rosy assumptions will come to fruition has been meet with much skepticism in Sacramento. The Legislature will hold hearings on the budget in the weeks ahead. The California Constitution requires a balanced budget to be in place by the start of the state's fiscal year July 1.

"It's not a sustainable budget, and a lot of it rides on the economy," Niello said, adding a bit of humor: "If you laid 100 economists head to foot, they couldn't reach a conclusion."

Following the dinner, many attended an "after-party on the newly refurbished "SkyBar" on the roof of the Jonathan Club with a panoramic view of downtown Los Angeles and picture-perfect weather.

The VIP Table Sponsors for the evening were Ergon Asphalt & Emulsions, Martin Marietta, R.J. Noble Co., Sully-Miller Contracting Co., and Valero. The reception sponsors were Albina Asphalt Asphalt, G3 Quality, Mercer-Fraser Company and San Joaquin Refining. The lanyard sponsor was Pavement Recycling Systems, and the event sponsor was CRH. Ergon and Martin Marietta sponsored the "after-party" event following the dinner.

Additional photos of the event can be viewed on CalAPA's various social media channels, including the association's Facebook Page HERE.

Gov. Gavin Newsom on Jan. 10 unveiled his administration's proposed $291 billion state budget for the fiscal year that begins July 1, closing a staggering budget deficit with fund shifts, program delays and a massive draw-down of the state's "rainy day" fund for fiscal emergencies.

"This balanced budget plan keeps California on firm economic footing," the governor said in announcement, acknowledging that an ominous projected deficit was being filled, in part, "thanks to the record reserves we have built up." That deficit, as predicted by the governor's Department of Finance, was pegged at $38 billion, which is much smaller than the $58 billion deficit projected by the non-partisan Legislative Analyst's Office late last year.

Significantly, transportation programs, which are protected by the California Constitution, were largely spared of cuts. California State Transportation Secretary Toks Omishakin, speaking to stakeholders following the release of the budget, noted that "99%" of the transportation programs were preserved in the budget. Transportation California, a CalAPA-supported coalition, came to a similar conclusion, although the group's Executive Director, Kiana Valentine acknowledged in an e-mail that "we are only at the starting line for what will likely be a very difficult budget cycle."

Transportation California noted that the governor's budget maintains $13.6 billion of the $13.8 billion in the 2022 budget act for transportation programs. So-called Active Transportation Program funds favored by environmental and bicycle groups were reduced by $200 million, and Omishakin pushed back on a suggestion that that hole be filled by digging into state highway funds.

On the stakeholder call, CalAPA posed a question about the prospect of a hiring freeze for Caltrans, but a Department of Finance representative responded that none was envisioned in this proposed budget, which calls for more than 22,000 positions at the California Department of Transportation, up from just over 20,000 positions three years ago. Senate Bill 1, the $50 billion Road Repair & Accountability Act of 2017, continues to funnel dollars to state and local transportation improvement programs, and was boosted two years ago by the $1 trillion federal Infrastructure Investment & Jobs Act. Still, those dollars, in CalAPA analysis, continue to flow away from core pavement improvement projects.

Even more concerning, there is widespread belief in Sacramento that the state's budget deficit is much worse than what is being portrayed by the Newsom administration, which should make for some contentious budget hearings. State Sen. Roger Niello, R-Fair Oaks, told the CalAPA Annual dinner audience last week that the state's current budget situation is "not sustainable."

The governor's full budget proposal is HERE. A press announcement by the administration on the budget is HERE. The LAO's reaction to the governor's budget is HERE. A newly launched state website to highlight infrastructure spending, including project maps, is HERE.

The CalAPA Environmental Committee reminds members that the California Air Resources Board (CARB) "Clean Truck Check" reporting deadline is coming up on Jan. 31.

CARB is doing away with the agency's Periodic Smoke Inspection Program (PSIP). CARB's newly named "Clean Truck Check" program (formerly called the Heavy-Duty Inspections and Maintenance Program), is being refashioned into more of a "smog-check" program that is familiar to those who own passenger vehicles.

The Clean Truck Check starts with fleet reporting: the entire fleet of non-gasoline (diesel and other alternative fuels) vehicles are required to be reported to the program from Oct. 1 to Dec. 31. This deadline was recently extended to Jan. 31. A fee of $30 per vehicle is required to complete the reporting, and will be assessed annually going forward. From July 2024 to December 2024 each vehicle must go through its first Clean Truck Check. Each vehicle must undergo a Clean Truck Check prior to registration renewal and prior to six months after its last registration renewal. In 2024, each vehicle will begin to go through two Clean Truck Checks per year.

For more information on the CARB Clean Truck Check program, click HERE.

The Asphalt Institute, a CalAPA partner based in Lexington, Ky., is advertising to fill the position of regional engineer covering the Western United States. The regional engineer can be based in California, Arizona, Nevada, Oregon or Washington.

A full job description, including educational and professional experience requirements, can be found HERE.

Preliminary inquiries may be directed to Danny Gierhart, Deputy Director of Engineering (dgierhart@asphaltinstitute.org) or by phone at (405) 210-7421.

Submissions should be sent by email to AI’s Human Resource Manager, Crystal O’Brien (cobrien@asphaltinstitute.org) and include a current resume and cover letter.

Longtime Asphalt Institute Regional Engineer Bob Humer will be inducted into the CalAPA "Hall of Fame" this Friday, Jan. 12 at the CalAPA Annual Dinner in Los Angeles, recognizing his many years of service to the industry. Details about that event are HERE.

Each week we highlight a word, acronym or other term commonly used in the asphalt pavement industry in California.

PLANT MIX: A mixture produced in an asphalt mixing plant, that consists of mineral aggregate uniformly coated with asphalt cement or liquid asphalt.

Each week we highlight a key point or best practice of interest to asphalt paving crews, inspectors and others working in the field. We welcome suggestions. More tips can be found in our "Asphalt Parking Lot Construction Checklist" HERE. Information on the CalAPA "Quality Paving Certificate" program is HERE.

PROJECT BOUNDARIES: Prior to the start of paving, the foreman and crew should "paint out" the boundaries of the project and mark the paving lanes to identify the proper paving sequence.Once paving starts, the inspector must monitor many items, including mix temperature, layer thickness, smoothness, possible mix segregation and joint construction. These are done through observation and utilization of numerous tools, including a straight edge, thermometer and density gauge.

Each week we highlight a term that is specific to climate-change issues related to the asphalt pavement industry. This feature is intended to raise awareness of the asphalt industry's climate-change initiatives and the specialized terminology that goes with them. More information on "The Road Forward" asphalt industry climate initiative can be found HERE.

UPSTREAM SCOPE THREE EMISSIONS: Emissions (indirect) of products used in the manufacturing of a pavement.

"The arc of the moral universe is long, but it bends toward justice."

– Martin Luther King Jr.

We hope you enjoy CalAPA's Asphalt Insider newsletter. We are committed to providing you with the most up-to-date information on technical issues, regulation, news, analysis, events and trends in California that is of interest to the asphalt pavement industry and our various agency partners. To subscribe to the newsletter, click HERE. For comments, questions or to suggest a story idea, click HERE.

Sincerely,

Russell W. Snyder, CAE

Executive Director

California Asphalt Pavement Association (CalAPA)®