California Asphalt Pavement Association
Vol. 15, Issue 32 || Aug. 8, 2022
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Greetings!
This weekly report contains news and information of interest to the asphalt pavement industry, customers and agency partners in California. Please feel free to distribute this newsletter to others who may be interested in asphalt pavements. To provide feedback or story ideas click HERE. Having difficulty viewing this newsletter? View as Webpage
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Caltrans examining continuing volatility in number of bidders, pricing for state work |
The California Department of Transportation (Caltrans) is seeking input from contractors who bid state transportation work to better understand recent volatility in bid prices and the competitive environment. Caltrans has a multi-billion construction program and is the largest single consumer of asphalt in California.
In responding to an inquiry from Asphalt Insider, Tom Ostrom, division chief of the Caltrans Division of Engineering Services, provided a summary of data collected by the department recently on the average number of bidders for Caltrans jobs as well as how the the bid price by the successful low bidder compares to the Engineer's estimate.
In April, the average successful low bid came in 1.6% below the Caltrans estimated cost for the project, and there were an average of 4.4 bidders per project, Ostrom reported. In May, the average low bid price ballooned to 26.3% above the Caltrans estimate, and the average number of bidders decreased slightly to 4.3 bidders per project. In June, the average low bid price dipped back down to 1.4% below the Caltrans estimate, and the average number of bidders increased to 5.1 bidders per project. For the first three weeks of July, the department recorded bid prices that were back up to 23.5% above the Caltrans estimates, and the average number of bidders was down to four per project. By comparison, the average number of bidders on Caltrans projects a year ago was in the 6-7 range, and bid prices were consistently below the Engineer's estimates.
In a recent conference call with construction industry representatives, Ostrom said the department is trying to understand what is contributing to the large swings in the bid prices, in particular. Anecdotally, the department has heard factors may include COVID-19 impacts, supply-chain disruptions, rising prices in the cost of construction materials and other factors. The Engineer's estimate on projects are a closely watched figure that help the department properly budget for the projects it designs and puts out to bid. Ostrom said the department wants to make sure its Engineer's estimates are as accurate as possible and mirror what it will ultimately cost to build the projects.
Rising fuel costs, for one, has prompted Caltrans to convene a Caltrans-industry working group to develop a draft specification to create an index that may be similar to the asphalt index that has been in existence since the 1970s and is meant to insulate contractors from unforeseen price spikes. In the case of the asphalt index, contractors who opt in to the index can receive additional payments if they can document asphalt prices rose by a certain amount higher than what they were on bid day. Conversely, if prices drop, those contractors participating in the index reimburse the department for the cost savings. Caltrans officials say a draft fuel index specification may be circulated for industry comment later this month.
For more information and context on Caltrans work, CalAPA members should consult a "Member Alert" sent out May 11, and also the association's exclusive "2023 Asphalt Market Forecast for California."
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Popular 'Topgolf' networking event to take place Oct. 26 in Roseville |
A popular CalAPA networking event returns to Northern California this Fall at the Topgolf sports and entertainment venue in Roseville.
The evening event will take place on Wednesday, Oct. 26 from 6 p.m. to 9 p.m. at Topgolf, 1700 Freedom Way in Roseville. Details and on-line registration can be found HERE.
Previous CalAPA Topgolf events were well-attended and proved popular with golfers as well as novices. There are a variety of golf-themed games, contests, fabulous food and beverages. Sponsorship opportunities are available. At previous Topgolf events members often reserved a bay, which can accommodate up to six players, for co-workers, family or favored customers.
The event is being held in conjunction with the CalAPA Annual Fall Asphalt Pavement Conference, which will take place Oct. 26-28 in Sacramento. Details about the Fall Conference can be found HERE.
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AB617 community air monitoring subject of additional scrutiny |
The community air pollution monitoring program known by the legislation that created it, Assembly Bill 617 (AB617), continues to generate controversy over its mandate to require "new community-focused actions to reduce air pollution and improve public health in communities that experience disproportionate burdens from exposure to air pollutants."
Since the bill became law in 2017, state and local air quality regulators have been working to implement its provisions, which include the establishment of local community boards to monitor air pollution and propose changes.
Business interests monitoring the local community air boards report the meetings are often disorganized or worse, and citizen-activist board members lack the deep understanding of the complexity and science at the intersection between air pollution monitoring and policy.
Environmentalists and social justice advocates, meanwhile, also have expressed frustration with the local air boards at times. Three members of once such board within the San Joaquin Valley Air Pollution Control District resigned last month, with one member telling the local newspaper that the "process was a sham."
A relatively new wrinkle, the arrival on the scene of mobile air quality monitoring, promises to add yet another level of complexity and potential confusion to the air quality debate. The upcoming environment-themed issue of CalAPA's association magazine, California Asphalt, will feature an in-depth examination of so-called "hyperlocal" mobile air monitoring and its implications for the asphalt industry. The issue will be published later this month.
The California Air Resources Board (CARB), meanwhile, will be holding a public meeting Aug. 25 to consider the Community Emissions Reduction Program (CERP) for the South Los Angeles Community. Details about the meeting, which will take place in Sacramento but also have a remote participation option, can be found HERE. The main CARB AB617 website is HERE. A special webpage created by CalAPA to provide factual information about asphalt facilities in California communities is HERE.
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CalAPA's Snyder named to executive committee of national organization of state asphalt executives |
CalAPA Executive Director Russell Snyder was elected by his peers last week to the Executive Committee of the State Asphalt Pavement Associations (SAPA) organization for 2023.
Meeting Aug. 1 in New York, the organization that is comprised of state asphalt pavement association executives from around the country voted to elect the group's leadership for the coming year. Utah Asphalt Pavement Association Executive Director Reed Ryan was elected chairman for 2023. Rounding out the rest of the Executive Committee will be Wisconsin Asphalt Pavement Association Executive Director Brandon Strand (Vice Chairman), Asphalt Pavement Association of Oregon Executive Director John Hickey (Secretary) and Snyder (Treasurer). The vote was unanimous. The terms are for one year.
The main organizations that represent the asphalt industry are the National Asphalt Pavement Association (NAPA), the Asphalt Institute and the various state asphalt pavement associations, including CalAPA, that are collectively organized under the SAPA umbrella. Founded in 1964, SAPA's mission states that it is "a professional membership organization of state asphalt associations that support the advancement, education and promotion of asphalt pavements."
NAPA President & CEO Audrey Copeland was an invited guest for part of the SAPA business meeting, and posted the following on social media: "We're grateful for our partnership with the State Asphalt Pavement Associations and appreciate participating in their Annual Meeting in New York City, hosted by the New Jersey Asphalt Pavement Association and the New York Construction Materials Association."
Snyder, recognized as a Certified Association Executive (CAE) by the American Society of Association Executives, has been the executive director of CalAPA since 2008. Since that time, CalAPA's membership has quadrupled and its annual revenues increased tenfold. A former award-winning journalist, Snyder also previously worked in executive-level positions at the California Department of Transportation. CalAPA, founded in 1953, is the only statewide organization exclusively devoted to representing the interests of the asphalt pavement industry in California. Learn more about CalAPA HERE. Snyder's official biography is HERE. To learn more about SAPA, visit the organization's website HERE.
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Each week we highlight a word, acronym or other term commonly used in the asphalt pavement industry in California.
SUBDRAIN: A structure placed beneath the ground surface to collect and carry away underground water.
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Paving Pointer of the Week |
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.
COMPACTION/DENSITY: The plans and specifications should specify that density is tested. The inspector needs to monitor the specified compaction density with a gauge to ensure that final target densities are achieved. Regular visual inspection of the mat during compaction is also required: look for segregation, indentations, properly sealed joints, and under-compacted areas.
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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.
SCOPE ONE EMISSIONS: Emissions from company-owned and controlled resources. To be differentiated from Scope Two Emissions, which are emissions (indirect) from a company's purchase of generated power.
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"The weak can never forgive. Forgiveness is the attribute of the strong.”
– Mahatma Gandhi
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CALAPA CALENDAR:
View all CalAPA events HERE.
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Registration open!
Fall Asphalt Pavement Conference
Oct. 26-28, 2022
Hilton Sacramento Arden West Hotel, 2200 Harvard Street, Sacramento.
For exhibitor and sponsor information, contact Sophie You at (916) 791-5044.
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Topgolf networking event
Wednesday, Oct. 26, 6 p.m. to 9 p.m.
Topgolf Sports & Entertainment Complex, 1700 Freedom Way, Roseville, CA
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There's never been a better time to join the California Asphalt Pavement Association! Members receive insight and advanced notice on critical issues that impact every company's bottom line. CalAPA members also receive invitations to exclusive member-only events, in-depth "Member Alerts," our comprehensive asphalt market forecast for California, discounts and industry-specific networking opportunities not available anywhere else. CalAPA's new searchable on-line membership directory helps connect potential customers with member companies. Click HERE to download our Member Service brochure. Click HERE to view Vol. 1 of recent testimonials. Not convinced? Click HERE to view Vol. 2 of recent testimonials. With so much changing in the asphalt pavement industry, what you don't know can cost you! Click HERE to send us an e-mail inquiry, or contact Russell Snyder with CalAPA at (916) 791-5044. |
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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. Click HERE to contact us with any comments or suggestions.
Sincerely,
Russell W. Snyder, CAE
Executive Director
California Asphalt Pavement Association (CalAPA)®
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The "Asphalt Insider" is an official publication of the California Asphalt Pavement Association. For more information or to inquire about membership, call (916) 791-5044, or click HERE to contact us. Copyright © 2022 California Asphalt Pavement Association -- All Rights Reserved. The CalAPA name (No. 5,621,794) and logo (No. 5,621,795) are registered trademarks with the U.S. Patent & Trademark Office.
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P.O. Box 981300, West Sacramento, CA 95798
1550 Harbor Blvd., Suite 211, West Sacramento, CA 95691
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