Budget News Better Than Expected, Speed Safety Camera Pilot Project in Work Zones Clears House Committee

The week’s update from the Capitol is provided by Sarah Psick, AGC contract lobbyist, with contributions from Laura Ziegler, AGC Government Affairs Director.

This week saw a break in action for almost two days as legislators traveled to their home districts to attend precinct caucuses on Tuesday evening. On Wednesday, Governor Walz, Lt. Governor Flanagan, legislative leaders and members joined first responders from across the state and thousands of others to honor the fallen peace officers and firefighter who were killed in Burnsville while responding to a domestic abuse call. Our hearts go out to the families and loved ones of those three dedicated heroes. May they rest in peace.

Governor Walz has signed the first bill of the 2024 session, the tax “fix” bill. Minnesota Laws 2024 Chapter 76 corrects an error in the 2023 tax bill which inadvertently used the 2019 standard deduction amounts instead of the 2023 amounts. The correction will ensure that tax filers receive the standard deduction correctly adjusted for inflation. Walz signs fix to $350 million drafting error in last year’s tax bill - Minnesota Reformer

An updated state budget forecast was presented on Leap Day by the Governor and Commissioner of Minnesota Management and Budget. The updated forecast shows an increase in the projected budget surplus of $1.3 billion bringing the fiscal year 2024-25 surplus to $3.7 billion. Tax collections have exceeded projections in most categories; however, projections of future spending continue to outpace revenues with a structural imbalance still predicted in fiscal years 2026-27. Legislative leaders continue to urge caution will limit spending this session. Any spending will likely be focused on affordability of housing, health care and child care. Minnesota has a $3.7 billion surplus, but budget officials warn against spending it all (startribune.com)

The House Transportation heard and passed a bill that would allow local and state governments to enforce speed limits and red-light laws with cameras in work zones and within 2,000 feet of a school. AGC submitted a letter of support for developing a speed safety program in work zones. Reed Leidle of Safety Signs testified in support . For his full testimony, go to the 20-minute mark here. The bill passed and was referred to the Judiciary and Civil Law Committee for consideration.

A large part of our democracy is making your voice heard and one of the best ways to do that is to participate in a “Day on the Hill”. This week the halls were filled with many groups looking to share their concerns with legislators, including CPAs, firefighters, library supporters, municipal and private liquor stores and bars, social workers, veterans, and small resort owners (among others).

In local government transportation news, the Saint Paul City Council passed $45.1 million for street, parks and recreation center projects funded by the City’s new 1% sales tax. Saint Paul Parks & Recreation projects included total $31.4 million intended to address long-deferred maintenance of parks buildings, athletic fields, and downtown parks, as well as design work for planned citywide assets including the East Side Community Center and the River Balcony. $13.7 million will leverage 1% sales tax funding to support the Department of Public Works improvements of Grand Avenue. A full list of funded projects is available online.

Next Week: With the committee deadline only three weeks away, committee schedules are filling up and notice for bill hearings is short. Many significant policy proposals have been introduced and are awaiting hearing, and lobbyists and coalitions are working with bill authors and advocates to address concerns and propose modifications. Additionally, the School Resource Officer bill which has gained a lot of attention is scheduled for a House Floor vote on Monday. 

Please reach out to Laura Ziegler, Director of Government Affairs, with any questions.

The AGC-backed Tax Relief for American Families and Workers Act (H.R. 7024) passed the House of Representatives on Jan. 31 on a 357-70 vote (169 Republicans supporting along with 188 Democrats). Among other things, the bill would:

• Roll back a provision (R&D Expensing) that forces construction firms to amortize their research and development expenses over five years, rather than writing them off in the year they are incurred. This can include costs, including staff salaries for design/build project activities, developing and improving pre-fabrication methods and other ways to increase efficiency, performance, and reliability, and many other construction-related activities;
• Reinstate full expensing for new and used business equipment (100% Bonus Depreciation) by allowing construction firms to fully deduct those expenses in the year the equipment is placed in service; and
• Simplify tax preparation by increasing the threshold at which businesses have to issue certain informational tax returns (1099’s) to independent contractors, from $600 to $1000.

With the tax filing season entering the home stretch, AGC members could lose an opportunity to see real tax relief in their 2023 filings if this bill does not become law soon. As it stands, Senate Republicans are blocking its consideration on the Senate floor.

Labor Wage Increases Table

Labor wage increases go into effect for most contracts on Monday, 29 April 2024. This year is a bit more confusing than typical years because of the new Worker Wellness Program. We’ve put it all together for you in a handy dandy chart showing increases for one class (some trades’ increases are by percentage and so vary by class) and the WWP addition (will not vary by class). 

Members can download the table here. (Don't have login credentials? Renee can help you.)

Labor Negotiations

Labor Negotiations for North Dakota and OPCMIA NW MN are beginning. If you are signatory and have not been contacted yet by Mike, please email Mike as soon as possible.

AGC-MN Form Contracts

Our Suite Six of Form Contracts is out and available for download to members and other licensees. We have found that a small percentage of users are getting an error when trying to open them. We are working with Microsoft to figure out the problem. Please let Mike know if you have a problem so he can keep track of the problem and let you know when the solution is found. If you have an immediate need, we may have a short-term workaround.

A Safe Crash Course: Opportunities to Enhance MN Construction Work Zones

This webinar is intended for Leadership, Project Managers and Safety Personnel

You're invited to join us next Friday, March 8 (10:30 am - 12:00 pm) for a Work Zone Safety webinar that will cover several topics pertaining to your workers' safety / work zones in 2024:

• Minnesota Statewide Work Zone Safety Industry Liaison Committee – what is it and how does my company get involved?
• What did the “Largest-Ever Transportation Infrastructure Legislation” include pertaining to Worker & Work Zone Safety?
• What is the Advisory Council on Traffic Safety and how are the Contractor’s voices heard?
• What is being done to mitigate speeds in Work Zones? (specs, technology, and dedicated funding)
• What is the latest with Speed Safety Cameras in Work Zones?
• What are “Connected Work Zones” and what elements are already being called out for in the MnDOT specs?
• What is the new “boilerplate” Standard Special Provision specification language regarding flaggers?
• What Legislative items are in the works?

This webinar will be available on demand if you are unable to attend on March 8 (registration is still required).

Presenters:

Joseph Bruer

Work Zone Safety Supervisor

MnDOT Office of Construction and Innovative Contracting

Reed Leidle

Vice President

Safety Signs, LLC

Michelle Moser

State Work Zone Engineer

MnDOT

5 Top IT Trends Transforming Construction and Design

Uncover the seismic shifts in the construction and design industry as technology propels it into a new era. From harnessing business intelligence tools to leveraging AI, this article explores five transformative trends reshaping the landscape. Discover how embracing modern office tools, enhancing cybersecurity measures and integrating cloud applications are revolutionizing project management. Click here to read more

When Founder and CEO, Sam Bloedow started Thriveon in 2002, it was born from a love of technology and the needs of small to midsize companies that weren’t being met by their current IT service. Fascinated by the way businesses could leverage technology to enable growth, Sam founded Thriveon to help businesses find success through an approach that proactively eliminates IT risk and supports growth.

Scholarship Application is Open!

The application form for 2024-2025 AGC of Minnesota Foundation scholarships is now open. Please share with any young people pursuing a degree in the construction industry!

Constructability Review Request:

Nodine Hill Project

MnDOT is preparing plans for a project on Interstate 90 from 0.69 miles west of Winona County State Aid Highway (CSAH 12) to US Hwy 61/Dakota. The project is currently scheduled to be let as a standard Design-Bid-Build contract in November of 2025 with an anticipated construction start date of April 2026.

Project Information Here

MnDOT is asking potential contractors to assist with evaluating construction means, methods, staging, and risks to constructing this proposed project while minimizing impacts to RPBBs and their habitat. MnDOT requests one-on-one meetings with potential construction contractors to review the planned work and provide feedback. The meetings are expected to last approximately 60 minutes.

March 18-28, 2024 has been selected as the Department’s desired window for constructability reviews with several dates and times available within this window; however, the project team is flexible if the previous or following week would work better with contractors’ schedules.Please contact Tom Austin, Project Manager, to schedule a meeting.

MnDOT cannot compensate contractors for the one-on-one meetings. Contractors will not be disqualified from submitting bids for construction if they attend. A summary of discussions will be posted at the link above after the meetings (names and company titles will not be available for viewing).

Spring load restrictions start in Central, North Central frost zones

The Minnesota Department of Transportation started spring load restrictions in the Central frost zone today, March 1. Restrictions will begin in the North-Central frost zone next Wednesday, March 6. Spring load restrictions have already begun in the South, Southeast and Metro zones.

Seasonal load limit zones and restricted routes can be found on the MnDOT load limits map. Start and end dates and other load limit information are shown at mndot.gov/loadlimits.

NEXT WEEK:

Women in Construction (WIC) Week

Women work and lead in every area of the construction industry! During Women in Construction Week 2024 (March 3-9), we will be featuring women each week day across the trades and in various areas of management. Check out our featured women for 2024, and follow AGC of Minnesota on LinkedIn, Facebook, and X to stay up to speed!

Don't miss the NAWIC Minnesota WIC Week Events available here.

Mental Health Day on the Hill March 7 - NAMI Minnesota

The theme this year is Spotlight Mental Health. There’s been a lot of talk lately about the importance of mental health. If legislators truly prioritize mental health let’s keep the light on mental health related legislation and infrastructure throughout the session!

Click here for more information.

Gage Brothers Caulking Celebrates 10 Years of Success and Growth

Congratulations to AGC member Gage Brothers Caulking on their 10-year anniversary!

Founded on February 28, 2014, Gage Brothers Caulking emerged from the acquisition of Seal Treat by Gage Brothers Concrete Products. The seamless transition was fueled by a shared commitment to quality and customer satisfaction. Tom & Don Mosher, the former owners of Seal Treat, entrusted Gage Brothers Concrete Products with their legacy, knowing that the company’s dedication to excellence would only enhance the services provided.

Throughout the years, Gage Brothers Caulking has garnered a loyal customer base, thanks to its unwavering dedication to delivering exceptional customer service and top-notch products. From small office buildings to high-profile high-rise structures, Gage Brothers Caulking has left its mark on numerous commercial construction projects, consistently exceeding expectations.

As Gage Brothers Caulking commemorates this significant milestone, the company remains committed to growth and innovation. With gratitude for the continued support of its customers, partners, and employees, Gage Brothers Caulking looks forward to embracing the opportunities that lie ahead.

"We are immensely proud to celebrate a decade of achievements and milestones," said Bryan McGeary, Division Manager of Gage Brothers Caulking. "Our success would not have been possible without the unwavering support of our loyal customers, dedicated employees, and trusted partners. As we reflect on the past ten years, we are filled with gratitude and excitement for the future."

Meyer Contracting Sold to its Employees

AGC member Meyer Contracting has been sold to its employees. Founded in 1984 by Kathy and LeRoy Meyer, Meyer Contracting is a leading-edge contractor in the upper Midwest market. On January 12, majority shareholder Paul Meyer, along with fellow shareholders Kathy Meyer, Verlyn Schoep, Mark Conte, and Charlie Kramer transferred 100% of ownership in Meyer Contracting to its employees. The new employee-owners were informed of this development in a special meeting on January 18.

Meyer is excited to provide this added benefit to its hard working and dedicated employees. This change in ownership provides great additional retirement benefits to the new employee-owners at no out-of-pocket cost to members. They will receive shares of stock that will grow in value as the company continues to grow.

“I've been blessed to lead this great team and wanted to give back” says Paul Meyer, CEO. “I'm incredibly excited to see what this new employee-owned business will do and how our success will meaningfully change many lives. I truly believe it will just be a steppingstone to much greater things for Meyer.” “Full employee ownership is great next step in our purpose of Developing Exceptional People to Provide Distinct Value to our Clients”, states Charlie Kramer, Chief Financial and HR officer. “Our employees have built Meyer into a leading contractor in our market, and it is exciting to see them reap the rewards of their loyalty and commitment to Meyer. We think this change in ownership will keep our high retention rate intact as well as attract great new employee-owners to help us continue to grow.”

AGC Celebrates 20 Years with AWC

AGC of Minnesota was recognized this week for 20 years of membership with our partners at the Association of Women Contractors (AWC).

AGC CEO Tim Worke posed with AWC Past President Kendra Kron (InSite Contracting).

Is your firm celebrating a milestone that you'd like to share? Contact Renee Horsman for more information.

OSHA Annual Training from OECS

It's construction training season - the ideal time to make sure your OSHA annual training is complete. AGC members receive discounts on required OSHA training from OSHA + Environmental Compliance Systems (OECS)! Members also receive special discounted rates on a wide variety of classes offered in OECS’ Specialized Training Center. Don't miss this opportunity to prioritize safety and regulatory compliance in your construction projects.



Learn more here | Class Registration | Contact OECS

Registration is open for all of the following events! Act quickly to reserve your spot!

Networking Event - April 11

(Coyote Moon Grille | St. Cloud)

Join the AGC Board of Directors and your industry colleagues for some informal networking!

Golf Tournament - August 2

(Keller Golf Course | Maplewood)

This tournament sold out in record time last year - get your foursome or sponsorships ASAP!

St. Paul Saints Game - August 7

(CHS Field | St. Paul)

Join AGC and MBEX members for an afternoon of Minnesota Twins AAA baseball against the Columbus Clippers!

Sporting Clays Fundraiser - Sept 11

(Minnesota Horse & Hunt Club | Prior Lake)

Register your team of 5 to join us at the 25th Annual Sporting Clays Fundraiser to benefit the AGC of Minnesota Foundation!

Holiday Reception - December 4

(Minneapolis Event Center)

Join your industry colleagues to celebrate another great year together!

AGC Honors 2025 - February 18

(317 on Rice Park Event Center | St. Paul)

Join us as we honor award recipients This annual event brings together industry leaders and change-makers as we celebrate stellar work over the past year as well as over the past decades.  

Thank You to our 2024 Annual Partners!

Don't Miss These Events!

Register now or save the date for these upcoming AGC events:

• Networking Event: April 11 (Coyote Moon Grill, St. Cloud)
• Golf Tournament: August 2 (Keller Golf Course)
• AGC/MBEX Saints Game: August 7 (CHS Field)
• Sporting Clays Fundraiser: September 11 (MN Horse & Hunt Club)
• AGC Holiday Reception: December 4 (Minneapolis Event Center)
• AGC Honors 2025: February 18 (317 on Rice Park Event Center)
• 2025 Minnesota Construction Summit: February 19-20 (St. Paul RiverCentre)