Winter Board Meeting February 20 & 21, 2015 · bd 0215 1 Winter Board Meeting February 20 & 21, 2015 2155 E. Convention Center Way Ontario 91764 (909) 212-8000 Friday, February 20th

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Winter Board Meeting

February 20 & 21, 2015

2155 E. Convention Center Way ● Ontario 91764 ● (909) 212-8000

Friday, February 20th Executive Committee Meeting Room/Location 08:30 a.m. – 09:15 a.m. Continental Breakfast (Hosted by AADT) Vineyard Room 09:15 a.m. – 10:15 a.m. AADT Board Meeting Vineyard Room 10:15 a.m. – 10:30 a.m. Scholarship Committee Vineyard Room 10:30 a.m. – 05:00 p.m. CCTA Executive Committee Meeting Vineyard Room 12:00 p.m. – 02:00 p.m. Lunch (Hosted by CoreMark Insurance Services) Marie Callender’s

Saturday, February 21st CCTA Membership & Board Meeting Agenda Room/Location 08:00 a.m. – 09:00 a.m. Continental Breakfast (Hosted by CoreMark Insurance Services) Citrus Room 08:30 a.m. – 05:00 p.m. General Board Meeting Citrus Room 08:30 a.m. – 09:00 a.m. EC & Staff Reports & Updates: Citrus Room 09:00 a.m. – 09:15 a.m. CCTA Financial Review, Dianna Webster Citrus Room 09:15 a.m. – 09:30 a.m. AADT Report, Sandy Medina Citrus Room

09:30 a.m. – 10:15 a.m. Heavy-haul & Pumpers Conference Workshop, Greg Dineen & Hank de Carbonel Citrus Room 10:15 a.m. – 10:45 a.m. Prevailing Wage Issues, Fred ReCupido Citrus Room

10:45 a.m. – 11:00 a.m. Scholarship Committee Citrus Room 11:00 a.m. – 11:30 a.m. Insurance/Safety Committee Reports Citrus Room Dan Bertrand – CoreMark Insurance Services, Inc. 11:30 a.m. – 11:45 a.m. Chapter Chairperson/Membership Committee Citrus Room 11:45 a.m. – 12:30 p.m. CCTA Regulatory, Legal & Legislative Updates Citrus Room

CARB Lawsuit Update – Brooks Legislative Updates – Brooks SB 854 – DIRs $300 Fee for Workers on PW Projects Bylaw Changes Review and Chapter Restructuring Help

12:30 p.m. – 01:30 p.m. Lunch Buffet (Hosted by AADT) Landings Restaurant Educational Session (English) 01:45 p.m. – 02:45 p.m. Attorney Robert Roginson, Ogletree Deakins Citrus Room Topic: Legal Challenges for Transportation Employers 02:45 p.m. – 03:30 p.m. Sean Edgar – CARB Updates: Compliance & Enforcement Citrus Room 03:30 p.m. – 04:00 p.m. Joe Rajkovacz – American Alliance Authority & Compliance Citrus Room Topic: New Member Services & Benefits – And there’s allot to offer members today! 04:00 p.m. – 04:45 p.m. Joe Rajkovacz – Regulatory & Business Updates Citrus Room Topics: CDL Disqualifications, DOT and Sleep Apnea, How to Eliminate Some Fees 04:45 p.m. – 05:00 p.m. Old and New Business Citrus Room Coalition Meeting (Spanish) 01:45 p.m. – 02:15 p.m. Sandy Medina – AADT actualizaciones, ¿qué es AADT-Plus Vineyard Room 02:15 p.m. – 02:45 p.m. Attorney Alex Santana, Ogletree Deakins Vineyard Room Tema: Desafíos legales para los empresarios de transporte 02:45 p.m. – 03:15 p.m. Sean Edgar – Actualización de CARB: Cumplimiento de normas Vineyard Room 03:15 p.m. – 03:45 p.m. George Sanchez / Shantal Amezquita – American Alliance Authority & Compliance Vineyard Room Tema: Nuevos servicios y beneficios para miembros – y hay mucho que saber! 03:45 p.m. – 04:45 p.m. George Sanchez / Shantal Amezquita (Joe Rajkovacz) – Regulatory Updates Vineyard Room

Tema: descalificaciones de CDL, DOT y Apnea del sueño, cómo eliminar algunas cuotas.

Eliminación de criterios fuera de servicio la necesidad de un conductor para leer o hablar inglés. CCTA "pedido de reglamentación" eliminar el requisito de las regulaciones de la FMCSA.

Frontera apertura a México basado en portadores – muchos de los desafíos que todavía están allí.

Aplicación para la autoridad operativa estadounidense – cómo podemos ayudar 04:45 p.m. – 05:00 p.m. Old and New Business Vineyard Room

Times, locations and guest speakers are subject to change

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CCTA Term 2014 & 2015

EXECUTIVE COMMITTEE MEMBERS President Susan Jones Secretary Mary Proctor Treasurer John Pitta Past President Fred Martin 1st Northern Vice President Keith Pruett 2nd Northern Vice President Danny Rocha 1st Southern Vice President Doug Nichols 2nd Southern Vice President Aaron Rodriguez

COMMITTEE CHAIRS Chapter Chairman & Membership Doug Nichols Safety Committee Executive Committee Insurance & Safety Report Dan Bertrand Legislative, Regulatory & Labor Report Brooks Ellison Heavy-haul Chair & Transportation Consultant Greg Dineen Pumpers Conference Hank de Carbonel Overlying-Carrier/Political Action Committee (PAC) Fred ReCupido Scholarship Report Fred Martin

CCTA STAFF, COUNSEL & LOBBYIST Executive Director Lee Brown Director of Governmental Affairs & Communications Joe Rajkovacz Northern Membership Services Director Betty Plowman Southern Membership Services Director Rudy Navarrete Transportation Consultant George Sanchez Executive Assistant & Meeting Coordinator Lorraine Perluss Membership Services Representative (WTA) Shantal Amezquita PAC Chair & Transportation Advisor Fred ReCupido Lobbyist & Legal Counsel Brooks Ellison LBE Counsel CCTA v. CARB & EPA Pat Whalen LBE Counsel General Kirk Blackburn

CCTA ALLIANCES & CONFERENCES Heavy-Haul Conference Chair Greg Dineen Concrete Pumpers Alliance Chair Hank de Carbonel Water & Specialty Truck Conference Chair Dan Ugalde, Jr. WTA (Interstate Carrier Conference) Joe Rajkovacz

AADT STAFF & BOARD MEMBERS

Accounting Manager (CCTA & AADT) Dianna Webster Customer Service Manager Sandra Medina Outside Board Member Open

ENDORSED INSURANCE AFFILIATE

CoreMark Insurance Services, Inc. Dan Bertrand*

GUEST SPEAKERS Ogletree Deakins Robert Roginson Ogletree Deakins Alex Santana KG Risk Management Chris Mitchell CleanFleets.net Sean Edgar

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Holiday Inn Ontario Airport 2155 E. Convention Center Way ● Ontario, CA 91764 ● (909) 212-8000

1.6 miles from Ontario International Airport, Free Shuttle to and from hotel

Executive Committee Meeting

Fri. – 02/20: Vineyard Room

08:30 a.m.: Continental Breakfast 09:15 a.m.: AADT Board Meeting 10:15 a.m.: Scholarship Committee 10:30 a.m.: CCTA EC Meeting 12:00 p.m.: Lunch at Marie Callender’s 02:00 p.m.: CCTA EC Meeting

General Board Meeting

Sat. – 02/21: Citrus Room

08:00 a.m.: Continental Breakfast 08:30 a.m.: General Board Meeting 12:30 p.m.: Lunch Buffet, Landings Restaurant 01:45 p.m.: Educational Session (English)

Vineyard Room 01:45 p.m.: Coalition Meeting (Spanish)

Holiday Inn Ontario Airport Offers the following amenities: 

Complimentary Self-Parking Complimentary Airport Shuttle Service to and

from Ontario Airport (1.6 miles from Holiday Inn) Complimentary WiFi internet access in your

guest room & meeting rooms Complimentary State-of-the Art Fitness Room

Ontario International

Airport

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EXECUTIVE COMMITTEE MEETING REPORT

Executive Committee Members President: Susan Jones Secretary: Mary Proctor Treasurer: John Pitta Past President: Fred Martin 1st Northern Vice President: Keith Pruett 2nd Northern Vice President: Danny Rocha 1st Southern Vice President: Doug Nichols 2nd Southern Vice President: Aaron Rodriguez

Executive Committee Recommendations to the Board Review and Approve all outstanding meeting minutes Executive Committee Updates and Recommendations

Review and Perform New Committee Member Elections and ask Chapters to follow-up with additional elections for this next term too.

Updates on EC Meeting Highlights and Votes Last Quarter and January 2015 Financial Statement Review AADT Updates Review Agenda and any changes or additions to the meeting. Explain the General Membership & Board Meeting and the

English and Spanish Educational Secession Saturday afternoon. New or Old business

ASSOCIATION STAFF, CONSULTANTS & ADVISOR UPDATES

Joe Rajkovacz – CCTA Governmental Affairs and Communications Director. Interstate conference – Western Trucking Alliance CHP BIT reform: What to expect in 2015 and beyond. CCTA part of broader

coalition asking US DOT to amend safety measurement system that is part of CSA.

CCTA lobbies for a position on the new driver qualification standards committee. We were politically eliminated but intend to participate through the public open meeting process. Vocational trucking or 40% of the trucking industry in not even represented in this process. We may have an important ally with the utilities industry.

Potential growth opportunity for association by adding intermodal conference Western States Alliance (Oakland Port). Their meeting on Feb. 23 will confirm the move. Needs to be reviewed and accepted by the CCTA Board as a Subdivision once 15 members join and submit Petition to establish a new subdivision.

American Alliance Authority & Compliance. Added new employee. Adding services – fuel tax reporting, log auditing, and pulling driver records from FMCSA’s Pre-Employment Screening Program. We are closely exploring becoming a CA DMV authorized third-party provider of registration services (truck/trailer). We will also be altering our sales focus from making many out-of-state clients members of the association in order to not complicate our retention of these clients with AADT.

Betty Plowman – Northern Membership Services Director; regional membership, sales program updates and of course CARB and what’s going on in the northern region.

Rudy Navarrete – Southern Membership Services Director; regional membership, sales program updates, projects and chapters. Coalition of American-Latino Truckers organizational meeting.

Greg Dineen – Heavy-haul Conference Chair; Truck routing and heavy-haul permitting issues updates. Hank de Carbonel – CA Concrete Pumpers Alliance Director, status of the program and related updates. Fred ReCupido – Construction Transportation Affairs Advisor, Fred has sold most of his company assets and is retired and would

like to work for CCTA in an unpaid position (covering only expenses). He will focus his efforts on truck brokering and prevailing wage issues. He will be tracking and reporting on:

1.) Prevailing Wage/Public Works projects (PW) related payment and reporting forms (CEM 25-10, 05, 02) for owner-operators as controlled by the DIR and CalTrans

2.) On-haul/Off-haul and On-site PW rates owner-operators are exempt from coverage on one but not the other, the DIR needs to be consistent as neither are enforced equally,

3.) Spreading the liabilities of truck brokers to the shipper community for CARB compliance. Consider sponsoring a bill similar with language similar to the TRU rule.

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4.) Teamsters are running a bill to included delivery of redi-mix concrete to PW as being covered work. What’s next – asphalt, sand, gravel and dirt?

5.) Liaisons contact with Bay and Northern Cal members in groups such as BCDTOA and key construction trade associations. Upcoming CCTA Board Meetings: Summer Board Meeting – Ontario (June 19 & 20, 2015) Annual Board Meeting – Ontario (November 13 & 14, 2015)

*Note: Meetings with dates are firm unless noted with an asterisk. Locations are subject to change pending relevant issues, hotel availability, pricing and proximity to Airport, etc.

FINANCIAL REVIEW & AADT REPORT

Organizational Financial Report: Dianna Webster will review the latest financial statements.

AADT Report – Program Updates: AADT Chairman Fred Martin or his designated staff representative.

SCHOLARSHIP COMMITTEE

Scholarship Committee Members: Scholarship Chairman: Doug Nichols and the members of the Executive Committee Scholarship Subcommittee Members: ● Greg Dineen ● Carol Pruett ● Rudy Navarrete ● Betty Plowman ● Mark Sturdevant ● Dianna Webster (Secretary & Financial Advisor) ● Teddi Nichols (Advisor) Scholarship, Fundraising and Out-Reach Issues: 1. January 2015 Financials 2. Old/New Business

INSURANCE/SAFETY COMMITTEE

Insurance Committee Members: Chairman: (Elections) The Committee Chairs will direct introductions of all Affiliate speakers.

See below CCTA Workers’ Comp. 919 Group Detail and Loss History

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I. SCIF Group (919) Workers’ Comp Update: SCIF eliminates all groups. We are in the final eight months of a year-to-year contract and we received our first administrative marketing payment for 2014-15 in November of 2014 and the next (and last payment) will be in April. SCIF no longer provides event sponsorship funding. The group admin fee had increased to about $99,000 and is an important source of revenue for the association. We are presnetly exploring all options for a new group once our contract with SCIF expires October 1, 2015. There is some potential to create a new multi-vendor group which includes SCIF. The Safety Committee/EC wanted to remind the Board about our growing safety video library is available to all members and that a working safety and drug & alcohol testing programs pays dividends and not just for workers’ comp, but for reducing PL/PD claims too. Make sure you go to the safety program links on the CCTA website link: http://calcontrk.org/programs/workerscomp/ a.) Workers’ Comp Loss Control Services – CoreMark has decided to rescind our endorsed broker agreement on

February 6th, effective March 6th. We are presently considering working with other insurance brokers that can assist members in coordinating employee training and providing tailgate safety meetings. Some of the services we are hoping to provide to help you facilitate safety compliance are: Bilingual Loss Control Assistance – including Safety Tailgate meeting materials in English and Spanish. Safety Consulting – on-site inspections to recognize hazards and review accident history as well as assistance

establishing an effective loss control plan. Cal/OSHA Compliance Counseling – providing resources to assist you in maintaining

compliance with Cal/OSHA safety and health regulations including customized written safety programs such as Hazard Communication, Respiratory Protection, and Injury and Illness Prevention Programs.

In-House Claims Manager – providing you with direct claims access, ongoing claims review, claims assistance and support and return-to-work programs.

Employer Education Seminars – keeping clients informed as workers’ compensation and safety laws and regulations are implemented.

CoreMark Terminates Endorsement Agreement – On February 6th, Dan Bertrand sent me an email cancelling our 9 year old endorsement agreement. II. Updates of any new or interesting PL/PD programs available to CCTA members. With the termination

of the agreement between CoreMark and CCTA we may or may not have the product covered. III. Construction Trucking Broker Bond (Rudy) – Rudy continues to follow-up on truck brokers with no bond

or public access to the bond info. There are various levels of Truck Broker Bond pricing based on FICO scores. CCTA members get the 10% discounts through A&A. Numerous members have utilized Bryant Surety Bonding for the new 75,000 interstate brokering bond. Contact Lisa Trymbiski, Bryant Surety Bonds, 73 Old Dublin Pike, Doylestown, PA 18901 (866) 450-3412 x4809.

IV. Affordable Care Act (ACA) - aka Obamacare

We are looking at rolling the office staff into either an ACA Small Business plan (SHOP) of even Individual Coverage. It is much more complicated and costly for most employees and actually pushes many into Medi-Cal which most PPOs will not take. Any reimbursements for the worker and family members are considered taxable and will be a major detriment to ones taxes as it is treated as taxable income and will increase effected employees AGI and therefore taxes.

V. The Health/Dental Plans: Since the termination of our agreement with CoreMark, we are inviting other affiliate brokers to report on the status of all health and dental programs available to members. The ACA or ObamaCare, is a challenging system to understand and comply with.

VI. CDTOA 1980 Cancelled Return-of-Dues Program Updates. (See most recent Payment & Loss History) a. The program has gone through numerous modifications since 2000 in an attempt to provide those promised since 1980

some benefits related to their dues without bankrupting the association. It was an unsustainable program never actuarially explained or calculated. The program was capped at $7,000 over fifteen years ago. In 2003, there was a two year waiting program added and at age 71 benefits are reduced 10%/yr. (minimum benefit $1,000). In 2011, the program loss capacity was capped at $30,000 combined and prorated payouts are annually calculated for those grandfathered in. The program was terminated for all new members beginning 11-13-10. The calculated outstanding liability for retired and active members is about $2.41 – mil. as of 2/14/2015.

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b. Death Claim Filing Limitation: The Board unanimously agreed to publish a deadline date to all claim benefits. The office will make at least three (3) good-faith attempts to contact the estate to resolve the claim. If the completed paperwork is not submitted within 365 days from the date of claim (not death), the estate/heir will lose the calculated ROD amount.

CHAPTER CHAIRMEN & MEMBERSHIP COMMITTEE

Chapter Chairpersons & Membership Committee Members: Chairman: Doug Nichols, Ventura Vice-Chairman: David Grande, Ventura

Antelope Valley Eddie Leimkuehler Bay Susan Jones Central Coast Chuck Duveneck Coachella Valley Thom Emery Fairfield Keith Pruett Fresno Open High Desert Art Soto Kern/Bakersfield Jed Kern

No. Princ. Overlying Carriers Patricia McDonald Modesto Open Monterey Bay Tom Santoro Orange County Dan Ugalde, Jr. Redwood - Eureka Open Sacramento Open SBR/Riverside Hector Leon San Diego Fred Martin

San Gabriel Valley Victor Vasquez San Fernando Valley Bill Visser Santa Rosa Open Southeast L.A. Kelvin Monzon Ventura Doug Nichols West L.A. Leonard Lindsey

1. CCTA Membership. Review the most recent membership reports for all new members. Make a motion for approval of all new members. Total Membership according to the February 2015 Membership Report, we have a total of 1,076: 849 Regular Members, 4 Safety, 14 Pumpers, 41 Western Trucking Alliance, 107 Retired Members and 61 Affiliates. Since the October 2014 Annual Board Meeting, CCTA has welcomed 42 new members, 12 new affiliate members, 7 new WTA members and 15 new CALT members.

2. Dues Reduction Considerations. We have four (4) members eligible for Dues Reduction. These members completed the Dues Reduction Request form and has been verified to be retired by his/her respective Membership Services Director.

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NEW MEMBERS & AFFILIATES LIST

New Affiliates: Member Name Company Name Chapter or City Brown, Ronna R.B. Mobile Diesel Testing Fairfield Buelna, Sergio All-Pro-Staff Antelope Valley Cardoza, Thalia Green Tech Solutions, Inc. San Diego Corona, Jaime Legal Shield Southeast L.A. Cunningham, Cesar CC Transportation and Yard Services San Diego Fast, Scott Velocity Vehicle Group Southeast L.A. Hadvina, Richard Maxx Air San Fernando Valley Quintero, Patricia Arizona Motor Vehicle Express LLC Tucson, AZ Seivright, Suzanne Valley Power Systems, Inc. San Gabriel Valley Simpson, Gabriela Mobile Diesel Smoke Test San Diego Strong, Lorri Strong Industries, Inc. Houston, TX Van Schaik, Andy Lowbed & Pipe Hauling Services SBR/Riverside

New Members: Amezcua, Felipe Amezcua Trucking, Inc. Bay Amezcua, Miguel Angel M. Amezcua Trucking Modesto Amezcua, Omera O. Amezcua Trucking Bay Arias, Anibal APA Trucking San Fernando Valley Atencio, Steven S.J. Reliable Trucking SBR/Riverside Avina, Richard R. Avina Trucking San Gabriel Valley Borba, Frank Frank Borba & Son Custom Chopping, L.P. Modesto Campos, Janice Arrow Towing LLC San Gabriel Valley Cheek, David Safe-T-Walk, Inc. Southeast L.A. Ciauri, Laura L.A.C. Motor Enterprises Inc. San Gabriel Valley Cinquini, Rick Cinquini Farms Sacramento Crouse, William Crouse General Engineering Bay De Tar, Gabe D & R Transportation Fairfield Duran, Eric Duran Freight Corporation San Diego Fiore, Norman N.K. Fiore Trucking SBR/Riverside Flores, David Stevie Kay’s Trucking LLC Southeast L.A. Garcia, Evaristo Eda Garcia Trucking SBR/Riverside Garcia, Gabriel Gabriel G. Trucking San Gabriel Valley Gonzales, Brian J & W Redwood Lumber Co., Inc. San Diego Hale, William WP Hale Company Santa Rosa Hearn, Mike Bob’s Backhoe & Trucking Ventura Ibarra, Robert Ibarra Trucking South Bay Jibreel, Adam Tactical Transport Bay Johnston, Jamy Jamy Johnston SBR/Riverside Macias, Arnulfo Macias Sand & Gravel Inc. SBR/Riverside Maldonado, Jesus F. Maldonado Trucking San Gabriel Valley Margett, Dennis G. Dennis G. Margett Southeast L.A. Mendes, Albert A.M.P.M. Farms Modesto Owen, Scott B.B.L. Co. San Gabriel Valley Perry, Jeff Perry’s Custom Chopping Modesto Prohoroff, Daniel D & I Trucking Southeast L.A. Rogers, Doreen Jeff Rogers Trucking Inc. Modesto Sakamoto, Barbara Barbara’s Trucking Monterey Bay Sanchez, Carlos Sanchez Trucking Southeast L.A. Silva, Alfonso Arroyo Andromeda Transportation Corporation High Desert Singh, Gurpal GS Trucking Bay Singh, Sukhvir Dhindsa Trucking Bay Sorto, Cesar A. Sorto’s Trucking South Bay Soya, Eddie Eddie’s Trucking SBR/Riverside Tejeda, Manuel Manuel Tejeda Trucking SBR/Riverside Torres, Esequiel Torres Twins Trucking Fresno Werre, Rick Werre Farms Trucking, Inc. Sacramento

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New Coalition of American-Latino Truckers Members: Alvarado, Teodolo Las Higueras Trucking LLC San Diego, CA Cardenas, Salvador EAS Transport Inc. Calexico, CA De Anda, Raul De Anda Trucking, LLC San Diego, CA Galindo, Edgar G & G Import & Export Calexico, CA Gaxiola, Aminadab Mina Trucking Anaheim, CA Gomez, Alfredo Tbinxpress, LLC Calexico, CA Gomez, Efrain Fatboys Express Inc. San Jacinto, CA Gutierrez, Pedro Santoyo Transport, LLC Calexico, CA Hernandez, Cesar Intransit Express Delivery Calexico, CA Mendoza Servin, Gerardo Gerardo’s Transportation Coachella, CA Murillo, Alejo Murillo Trucking Calexico, CA Ramirez, Elsa E.R. Ramirez Trucking, Inc. Perris, CA Sanchez, Jorge Miracle Transportation, Inc. San Diego, CA Sandoval, Renee Correo International Trucking San Diego, CA Topete, Jose Topete Concrete Pumping Inc. Sylmar, CA New Western Alliance Members: Evans, Mike Port Container Drayage Logistics, LLC Brooks, CA Ghiglione, Frank Frank Ghiglione Inc., dba Rodgers Trucking Co. San Leandro, CA Nevarez, Jimmy C. Angus Transportation, Inc. Chino, CA Purvis, William John Aquapulse Chemicals, LLC Camarillo, CA Renteria, Albert Secure Service Transportation, Inc. San Bernardino, CA Stockmyer, Gloria Stockmyer Trucking, Inc. Rumsey, CA Swita, Dave Daves-Way Mosinee, WI

LEGAL & LEGISLATIVE UPDATES

Legal, Legislative, Regulatory & Labor Committee Members: Chairman: Open

CCTA (CDTOA) v. CARB & EPA – Lawsuit Updates (6-14) The CCTA appeal of U.S. District Court Judge Morrison England’s ruling is still pending in the Ninth Circuit Court. Briefing/hearing (oral arguments) in this case was cancelled in late January as the three judge panel believes that they had all the information about the case they need to render a decision. The case went to this court in August, 2013, so it has been pending for about 20 months now. We cannot definitively infer much more from the order, but it does suggest that the Court does not have any lingering questions about the case that it wants input on from counsel. It might indicate that the court has already agreed to a tentative opinion, but that is not necessarily the case. In a typical case that proceeds to oral argument, it is not uncommon for a decision to be issued within 60 days after the oral argument. Using that as a guide, we may expect a decision within a similar time frame, but again, there are no rules or statutes dictating when the court must act. Other CARB Related Lawsuits (16 total) and News: a) (1) Owner-Operator Independent Drivers Association Inc. et al. v. Richard W. Corey et al., U.S. District Court, (E.D.

Cal. Fresno) Case No. 1:13-CV-01998-LJO-SAB (transferred by court to E.D.Cal. Sacramento, Case No. 2:14-CV- 00186-MCE-AC). (2) OOIDA petition to DC Court of Appeals challenging EPA’s grant of enforcement waiver to CARB on its GHG rule (3) Alliance for California Business v. Nichols et al., Glenn County Superior Court, Case No. 13CV01232. (4) Coordination Hearings in Redding and now Solano Co. Groups (Betty)

b) Meal & Breaks for Truck Drivers (Employees): We are following the meal and breaks issue here and nationally. We

did file comments on behalf of cement mixer and asphalt haulers in September of last year and in support of the SCRA lowbed and pump member operators in late December. The FMCSA has not made a decision yet on any of this, but just recently granted an exemption for livestock haulers during the summer months as well as loads for the DOD and NRC. Dilts v. Penske (9th Cir. 2-18-14) DOT FMCSA (invited by the court) filed an amicus and sided with state labor laws,

citing the Mendoca cases (Lindeman) “remote and tenuous link to P, R and S” the main-stay of the F4A. This FMCSA’s brief actually sites Californians for Safe and Competitive Dump Truck Transportation v. Mendoca (9th Cir. 1998) a half-dozen times. The brief claimed and the court affirmed that, “The effects of the meal and rest break law, however, are not sufficient to overcome the presumption against displacing California’s traditional power to protect its workers. Though state-mandated breaks reduce the number of hours an employee is available for duty, such effects are common to all employers and thus bear too tenuous and remote a connection to the core deregulatory purposes of the FAAA Act to warrant preemption.”

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Godfrey Gilbert, et. aI. v. Oakland Port Services Corp. d/b/a/ AB Trucking, CCTA member Bill Aboudi operates Oakland Port Services Corp., d.b.a. AB Trucking and was sued by two drivers accusing AB Trucking of violating California’s meal and rest break requirements. AB Trucking, who only operates 5 trucks, lost at the trial court level and now faces a $1.2-million judgment which they are appealing to the Court of Appeal of the State of California, First Appellate District, Division Two. This case could have significant impact because a key legal argument being used by the Plaintiffs concerns the U.S. DOT’s recent brief filed in the Dilts v. Penske where the federal government claims there is no federal preemption from California enforcing its meal and rest break requirements on motor carriers. What makes this particular case one to watch is that it is unquestionable that AB Trucking is a federally regulated motor carrier since they only offer service to and from the Port of Oakland, by definition “interstate commerce” yet the federal government seems intent on undermining the entire intent of congress when passing the FAAAA which we are relying on in our own litigation challenging CARB. In late January CCTA filed a submission of an amicus letter in support of our Petition for Review. It complemented the arguments for submitted by AB Trucking’s counsel, and will make it that much harder for the CA Supreme Court to deny review. This is a very important case especially for interstate trucking firms who have been historically exempt from state and federal meal and break regulations. We are curious why the ATA and its members are not actively supporting this case as well.

c) Caltrans & DIR Prevailing Wage Reporting for Owner-Operators: Why are owner-operator motor carriers being

treated as employees when there is no prevailing wage scheme for them and their truck/trailer regardless of when they haul on-off the site or haul strictly on-site?

We called (Angel Shell) last November and asked her why Caltrans had taken down their old “Trucking Guidance”. She indicated that Caltrans is working on “new” trucking guidance that addressed owner-operators and it was scheduled to be reposted in January or February of this year. We asked her at that time if we could participate in the guidance draft. She said she would ask her director. I called numerous times over the next 4 months (6x's) and she finally returned my call on 4-22 and said that she was moving to another department and the project was put on hold. Fred R. continued to ask me to meet with Caltrans and I asked him to set-up a meeting. He called Angela 6-8-13 and set-up a meeting with Caltrans for Monday June 23rd at 2 p.m. in Caltrans HQ Sacramento. He was told that Robert Embree, Phone: (530) 741-4339 [email protected] would be replacing her as the labor compliance officer. We called DIRs Eric Rood (Asst. Labor Commissioner – Public Works) 6-11-14 and asked for them to call and possibly attend the Caltrans meeting on the 23rd. I received an email from Chris Jagard, Acting Chief Counsel, Office of the Director Legal Unit, Department of Industrial Relations Tel: (510) 286-3809, [email protected]. We had a conference call on 6-12 with him and Eric at 2:30 p.m., they said that there were no prevailing wages for owner-operators and therefore enforcement was “Stayed” by at least the DIR. They indicated that Caltrans has never reached out to them for assistance on any forms or guidelines. From Caltrans Trucking Guidelines - Truck Owner-operators

Q. When the contractor, subcontractor, or truck broker, dispatches a bona fide owner-operator to perform covered hauling on or off the project; does the owner- operator have to be paid prevailing wages?

A. No – however, a form CEM 2510, “Truck Owner-operator Certification Status” must be submitted documenting the individual’s status as an owner–operator.

Q. When the contractor, subcontractor, or truck broker, dispatches a bona fide owner-operator to haul within the limits of the project “on-site”, does the owner-operator have to be paid prevailing wages?

A. Yes – under state prevailing wage requirements the owner-operator must be paid the applicable on-site prevailing wage rate for the type of truck used.

No – under federal prevailing wage requirements, bona fide owner-operators are not required to be paid federal prevailing wages. Although federal prevailing wage requirements do not apply to bona fide owner-operators, Caltrans must enforce the more stringent of the two state and federal requirements on its projects. Prevailing wage rates for truck owner-operators may be provided on a form CEM 2505, “Owner-operator Listing” or a form CEM 2502, “Certified Payroll Record.”– We totally disagree with this conclusion. We have three important documents concerning DIR trucking owner-operators and on-off hauling and for prevailing wage work. The attachments include the following, call the office for copies: Deals with Caltrans Labor Compliance interpretation of DIR’s policies relating to on-off hauling and on-site

hauling and trucking owner-operators. Was removed from Caltrans site last year. Dir. Rea’s letter dated April 13, 2005, (which is now considered an important notice) he said that since there is

no PW for trucker owner-operators on-off hauling that, “In light of the Department’s enforcement experience and its current consideration of appropriate wage rates for owner-operators performing on-haul and off-haul trucking, enforcement of prevailing wage obligations for such work is stayed pending DLSR’s establishment of the appropriate rates, including a formula for applying them to the unique circumstances of owner-operator compensation.”

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Another letter from Rea dated July 6, 2007; again only dealing only with on-off hauling was very detailed in its analysis of the problems of setting a PW for owner-operators and their trucks. We believe that in the “Conclusion” is what needs to be read in its entirety and explains the difficulty the DIR has had in attempting to set a prevailing wage for trucking owner-operators.

In light of the fact that (to our knowledge) there is no prevailing wage rate for owner-operators working both on-and off-hauling or “on-site” for the same reasons given within Rea’s letters. There has also been a lack of guidance from the DIR concerning “on-site” hauling, the only reasonable option for industry to interrupt “on-site” hauling for owner-operators to be identical to “on-off hauling.” The DIRs conclusion is: “Enforcement of prevailing wage obligations for such work is stayed pending DLSR’s establishment of the appropriate rates.” Presently we are unaware of any DIR prevailing wage rate for on-site trucking owner-operators. The problem of course is that these determinations/notices do not address “on-site” hauling and therefore it has caused much consternation, improper truck guidance and owner-operator reporting that is and should be stayed – not enforced.

d) DIR’s New $300 Permit/Registration Fee for Licensed Contractors who work on public works projects. See Below: CCTA Continues to Question The DIR’s $300 Pay-to-Play Fee On July 14, we sent a letter to DIR (see August CTN pg. 11) questioning this new $300 fee/tax to work on a Public Works construction jobsites in this state as a result of yet another labor, union contractor supported and backed bill. Promptly on August 4, DIR sent a response back to us saying that “Yes” all workers employed by contractors and subcontractors in the execution of any contract for public work are deemed to be employed upon public work.” The DIRs response spins two other kinds of related court decisions into defacto state laws and claims that the cases have concluded that trucking companies which worked for a contractor or subcontractor and performed an integral part of the contract where really “subcontractors” too. Based on the DIR’s twisted logic, owner-operators are subcontractors (but brokers may not be because they do not work directly on the job any making improvements) and o-o’s are subject to the fee even though they are not licensed by the Contractors State Licensing Board (CSLB). We will likely be following-up with another letter and a strategy to accept or oppose the fee as determined by the CCTA Board 2-21-15. Below are additional details and questions about the new program. On January 27 DIR hosted a conference call with at least 700 interest parties calling in. Many of the trucking related questions were interestingly ignored. We intend to ask the DIR to have a complete trucking related Q&A posting on their and the CSLB websites. We will also be asking that some sort of means testing should be derived where trucker (owner-operators) fees would be de minimums ($30) and billion dollar contractors’ fees significantly higher. DIR said numerous times that this fee was not supposed to be a state revenue and profit source, the funds were supposed to be utilized for enforcement purposes only. Essentials of DIR’s Contractor Registration Program: Contractors and others will be subject to a registration and annual renewal fee that has been set initially at $300. The fee is

non-refundable and applies to all contractors and subcontractors who intend to bid or perform work on public works projects (as defined under the Labor Code).

Contractors and others will apply and pay the fee online and must meet minimum qualifications to be registered as eligible to work on public works:

o Must have workers’ compensation coverage for any employees and only use subcontractors who are registered public works contractors.

o Must have CSLB contractor license if applicable to trade. o Must have no delinquent unpaid wage or penalty assessments due to any employee or agency. o Not under debarment. o Not in prior violation of this registration requirement once it becomes effective. However, first time violators will be

able to avoid 12 month disqualification by paying an additional penalty. The registration fee is not related to any project. It is more like a driver’s license in that it entitles the registrant to bid on

and perform public works. DIR will post a list of registered contractors and subcontractors on its website so that awarding bodies and contractors will

be able to comply with requirement to only use registered contractors and subcontractors. Various protections are built in so that:

o Contractor won’t be in violation for working on a private job that is later determined to be public work; o Inadvertent listing of unregistered subcontractor on a bid will not necessarily invalidate that bid; o Contract with unregistered contractor or subcontractor is subject to cancellation, but is not void as to past work; o Unregistered contractor or subcontractor can be replaced with one who is registered; o Contractor whose registration has lapsed given grace period within which to pay a late fee and renew.

We See Many Problems

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You all need to think about this list of “SB 854 PW Registration Essentials” and how this will apply to you and your business. There are many questions that come to us right off the bat so to speak, such as:

1. Are all truckers now going to have to be “listed” on a public works contract just like a subcontractor? Both brokers and all truckers? Who likes this and who doesn’t? If you have to pay the fee maybe you should get the benefits!

2. It’s now our understanding that “both” the broker, the trucker must enroll and submit their fees each year? We fear that the owner-operators be considered employees of the broker “for purposes of this regulation only” and create a whole host of other onerous reporting requirements for brokers? So if brokers are the bidders and truckers are the workers, than shouldn’t they be exempt like all other workers?

3. DIR will utilize the company name for those that are state non-contractor licensed (CSLB)

4. We get the on-site work, how about on and off-hauling. Delivery of materials and equipment by third parties. When are they and aren’t they a material supplier? Are professional engineers and other workers subject? UPS/FedEx deliveries to PW jobs subject?

5. The workers’ comp requirement – who thinks all of this is not good and a slipper-slope and is not going to get screwed-up for owner-operators and brokers?

6. “Must have no delinquent unpaid wage or penalty assessments due to any employee or agency” the owner-operator community will love this one. Will they report brokers, contractors and producers late pays to DIR now and DIR will investigate? This may be good for the industry!

7. “Debarment” won’t or can’t apply to truckers since they don’t really have a contractor’s license?

8. Late registration penalty – is it the chicken or the egg?

If you have any additional thoughts, please send them.

The CCTA EC and Board need to determine what if any position the association takes concerning this new DIR fee.

Legislative Updates: See Separate hand-out at meeting

MEMBER PROGRAMS UPDATE PrePass – As of July 2012, the monthly fee is $13.99 per device and Seasonal discount is $4.99 per device/month

is for seasonal non-use for CCTA. As of July 1, 2014 – AADT members will have a price increase of $14.99 per device/month and Seasonal will remain at $4.99. We have 1,306 billable trucks enrolled as of 01/31/15.

Michelin/CCTA National Tire Account Program – $509,493 saved by members in old program! We are partnering with AmeriQuest Transportation Services and it will give CCTA members access to many trucking industry products and services including the approx. 40% national account discount off Michelin tires of all sizes. We have now sold 20 tires and continue to develop an aggressive marketing program.

CCTA National Account Program with AmeriQuest Transportation Services includes Interstate Batteries and Goodyear/Dunlop Tires. Received a $1,844 admin check for the last quarter of 2014.

Sprint/T-Mobile – Program Savings is now 18%, does not apply to all programs. Sprint successfully attempted to buy T-Mobile; who has dropped their groups discount program.

AAA&C (See Joes Report) AADT (Reported separately)

OLD / NEW BUSINESS

Old

New

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Guest Speaker

Robert Roginson is a lead attorney in Los Angeles office of Ogletree Deakins, one of America’s leading labor and employment law firms. His practice includes all aspects of employment and labor law litigation and counseling for employers.

Mr. Roginson has represented private and public employers in state and federal courts and administrative agencies. Bob has defended dozens of employers in class actions involving a variety of allegations, including employee misclassification, meal and rest period violations, off-the- clock claims, and record keeping violations. He also counsels employers and companies on California and federal wage/ hour and pay practice laws, prevailing wage

laws, project labor agreements (PLAs), reduction in force issues and WARN notification requirements, labor relations and union matters, tribal immunity and sovereignty issues, and retaliation and discrimination claims.

From November 2007 until March 2010, he served as Chief Counsel for the California Division of Labor Standards Enforcement (DLSE). Appointed by Governor Arnold Schwarzenegger, Mr. Roginson represented and advised the California Labor Commissioner and her staff in all aspects of enforcement and interpretation of California’s labor and wage/ hour laws, licensing requirements, and retaliation statutes. He also managed and directed the Division’s litigation and handled matters involving meal and rest period compliance and enforcements, public works and prevailing wage requirements, child labor and work permit issues, the Talent Agency Act, farm labor contracting, garment manufacturing, and the Private Attorney General Act (PAGA).

As Chief Counsel, Mr. Roginson authored DLSE amicus briefs and opinion letters, including:

amicus brief in the California Supreme Court meal period case, Brinker Restaurant Corp. v. Superior Court (Hohnbaum)

opinion letter affirming California’s on-duty meal period requirements opinion letter affirming an employer’s right to take deductions for vacation and sick time for partial-day

absences for exempt employees opinion letter affirming an employer’s right to implement proportionate salary and work schedule reductions for

exempt employees opinion letter authorizing the use of debit pay-cards and convenience checks opinion letter approving summertime alternative workweek schedule

Mr. Roginson also co-wrote and edited the DLSE’s Public Works Manual. Prior to joining Ogletree Deakins, Mr. Roginson worked in the industrial relations department for the Associated General Contractors of California (AGC of California), where he represented construction contractors in labor grievance and arbitration matters in addition to the negotiation of the Southern California Basic Trades Master Labor Agreements.

PLEASE REMEMBER TO BRING YOUR CCTA BADGE!

If you need one, please call our office prior to the board meeting so we can bring you one (no later than Tuesday before meeting please).