Newsletter

California Asphalt Price Index

A Joint Industry / Caltrans Task Group has been addressing a variety of issues surrounding the current California Paving Asphalt Price Index. As has been reported here before, one set of changes was circulated and implemented in March of this year. If you need a copy of this document for your files it can be found on the APACA website here. Additional changes and modifications have been discussed and the new draft specification is now available for review and comment. You can find the draft document by clicking here. Simply access the document "Draft SSP S5-230_30 Apr 09.doc". Please take this opportunity to review and comment on this document. We would appreciate your comments no later than Friday, May 15^th.

California Could be Broke by July

According to the California Legislative Analyst’s Office (LAO) in Sacramento, California could run out of money as soon as July. The LAO’s Office released a report on Thursday, May 7th detailing California’s continued cash flow deterioration in the face of the ongoing weakened economy and the potential failure of the May 19^th special election. According to LAO’s estimates, approximately $17 billion in short-term borrowing and/or state budget actions will be necessary this June or July in order to resolve California’s cash shortage expected for the 2009-2010 budget year. Should Prop’s 1C, 1D and 1E fail on May 19^th, an additional $6 billion will be necessary, making the total expected cash shortage estimate a staggering $23 billion. (Note: Proposition 1A and 1B success or failure will have impacts on future year budgets, but do not affect 2009/2010 projections.)

The LAO reports that it is unlikely that the state will be able to borrow enough to cover the deficit, meaning additional state actions will be necessary in the form of either revenue increases or expenditure cuts and/or delays or deferral of scheduled payments to schools, local governments, service providers and others.

The full LAO report and analysis is available at: http://www.lao.ca.gov/laoapp/PubDetails.aspx?id=2056

May 19th Propositions Not Faring Well at the Polls

California voters are standing firm in their opposition to the budget-related propositions on the May 19 ballot, according to the Public Policy Institute of California (PPIC). The PPIC's latest poll mirrors previous surveys showing strong resistance to all but Proposition 1F on elected officials' pay raises. That's even though voters are split on whether the governor and the Legislature should have called the election.

Here are the numbers:

Proposition 1A: 52 percent no, 35 percent yes

Proposition 1B: 47 percent no, 40 percent yes

Proposition 1C: 58 percent no, 32 percent yes

Proposition 1D: 45 percent no, 43 percent yes

Proposition 1E: 48 percent no, 41 percent yes

Proposition 1F: 73 percent yes, 24 percent no

While these numbers don't add up to 100%, the rest told pollsters they haven't made up their minds.

One bright spot in the survey: Even though voters aren't in the mood to trust state government, more than half said things in the country as a whole are going in the right direction.

Revised Caltrans Test Methods

If you have attended one of the APACA Technical Committee Meetings, you have, no doubt, heard about the substantial effort that is currently underway to revise and update a wide array of the California Test Methods. The first phase of this effort is nearly complete with 19 different test methods now in final draft. This has been a substantial effort on behalf of both Caltrans and Industry who have embarked on a series of meetings and other activities that many did not anticipate when they started this task. Some committee’s have been meeting every other week in order to maintain continuity and meet the deadlines that have been imposed. Meetings have rotated between the southern, central and northern parts of the state and included telephone conference capability in most cases – all in an effort to make sure that all parties have had an opportunity to participate and contribute to this substantial effort.

The test methods that are in final draft form are now available for review on the APACA ftp website. The site can be accessed at ftp://HMA-ETG:kvRH95Tk@64.58.164.70/FinalDraft/Page.htm, please feel free to download the files and review. Haiping Zhou, with Caltrans, has developed a spreadsheet that lists all of the various test methods, the dates of the drafts and other pertinent information. The spreadsheet is shown on the ftp site and should give you each of the test methods that are in the final draft stage of completion. These test methods are now ready for formatting per the standard Caltrans procedure and directive. Once this has been accomplished, the revised test methods will be posted on the Caltrans website and will be suitable for use.

As a quick side note, a change that has been discussed and incorporated into the new test methods includes the way that oil content is expressed and identified in the job mix formulas (JMF). Historically, Caltrans and other agencies in the State of California have expressed oil content by percent of dry weight of aggregate (dwa). Many other states and agencies have expressed oil content by percent of total weight – this will now be the method used by the State of California. While this change is inconsequential to many in the industry, some have expressed concern that the change has been made. You may want to make a note of it and pass the information along to anyone in your company or organization that may be affected by this change.

2009 TCC Legislative Fly-In

Join your industry allies in Washington, D.C., on May 19-20, for the Transportation Construction Coalition's 2009 Legislative Fly-In. The transportation construction industry has never faced a more critical time! Congress needs to hear from you about the importance of transportation infrastructure investment to the nation's economy and the quality of life of all Americans. The new Congress and Administration have less than nine months to draft and approve legislation to reauthorize critical highway, bridge, transit, and aviation construction programs. A key issue to be addressed is how to fund highway and transit infrastructure improvements. With the Highway Trust Fund's balance essentially at zero, new revenue will be needed to provide the investment necessary to address current and future demands. The federal aviation programs also remain in limbo, with new authorization months overdue. The transportation construction industry cannot

afford to sit back and wait. Now is the time to demand action from your Senators and Representatives about transportation needs in your state and the nation. Join hundreds of other industry leaders in delivering the message -- Transportation Builds Our Economy -- to Capitol Hill on May 19-20 in Washington, D.C. A registration form may be downloaded at http://fs1.hotmix.org/jay/dcfly.pdf. Please note that the Hotel cut-off date for the Fly-In is Monday, April 20.

Warm-Mix Asphalt and Recycling Symposium in California!!

The huge momentum of warm-mix asphalt (WMA) has captured the attention of both industry and agencies alike. Characteristics of WMA include lower emissions, reduced fuel costs during production, wider temperature windows and extending the paving season. The June 8-10 event will be an opportunity not only to learn about warm-mix technologies, but also to gain information about RAP and recycling. Together, RAP and warm mix can help your company operate in a more environmentally friendly manner, while at the same time being cost-efficient.

Register now for the Warm-Mix Asphalt & Recycling Symposium and you’ll be eligible to win 2 free registrations for the 2010 NAPA Annual Meeting, set on the beautiful beaches of Maui, Hawaii! You must register by Monday, May 18 to be eligible for the drawing. Don’t miss out on this great opportunity that is valued at $2,810! This offer is available for on-site conference registrations only.

The conference kicks off at 1 p.m. on Monday, June 8, with a focus on asphalt supply, aggregate supply, and RAP. June 9 will be devoted to warm-mix asphalt and will include best practices at the plant and paving site, results of field trials, accelerated performance testing, energy conservation, emission reductions, and plant operations. Perspectives from contractors, state DOTs, the FHWA, and the U.S. EPA will be included. The conference will wrap up at 5 p.m on Wednesday, June 10. The registration price includes a reception Monday evening, and four of NAPA's popular publications on the subjects.

Make plans today to attend this ground-breaking event, June 8-10, in Sacramento, Calif., at the Hyatt Regency Hotel. For more information, or to register, go to www.hotmix.org. The early-bird discount expires on May 22.

UC Berkeley - Institute of Transportation Studies Road Shows

Need some training? The Road Shows offered by the UC Berkeley Institute of Transportation Studies (ITS) offer cities and counties a low-cost, on-site way to train everyone at the same time on the same techniques. These workshops are available on a first-come, first served basis to local agencies and can be scheduled for other groups as available. Each four-hour Road Show can be delivered on-site at your location for only $600 per session (cities and counties) for up to 35 attendees, less than $20 per employee! Other agencies and groups should call for pricing.

"Basic Thickness and Overlay Design for Asphalt Pavements" is a six-hour Road Show for $900.

To schedule a class please complete a request form (PDF, 20K, right-click to save) and fax it to 510-665-3454.

Call 510-665-3632 or email: roadshow@techtransfer.berkeley.edu for more information.

Some current topics related to the asphalt pavement industry are:

Pavement Design and Maintenance

- Asphalt Materials and Their Uses

- Asphalt Mix Production and Placement

- Asphalt Pavement Maintenance

- Basic Thickness and Overlay Design for Asphalt Pavements

- Caltrans (HVEEM) Method of Mix Design

- Chip Seals and Other Asphalt Pavement Surface Treatments

- Compaction of Pavement Soils and Bases

- Introduction To Pavement Life-Cycle Costing

- New Techniques In Asphalt Pavement Design

- Performance Graded (PG) Asphalts

- Roadway Drainage Techniques

- Stabilization of Pavement Soils and Bases

Roadway and Traffic Operations

- Signing and Delineation for Field Personnel

Safety and Work Zones

- Flagging at Work Zones

California Pavement Preservation Conference

Presentations from the 2009 California Pavement Preservation Conference arre now available for download. To access these files please click here.

May 19^th Propositions to Appear on the Ballot

The past several weeks we have briefly covered Propositions 1A, 1B, 1C, 1D and 1E that will appear on the May 19^th Ballot. This week we are presenting some information on Proposition 1F, also known as SCA 8, which is just one of the six (6) ballot measures that are part of the 2009-2010 California State Budget and Tax Increase agreement.

This measure would prohibit the state commission that sets salary levels for the governor, other top state officials, and members of the California State Legislature (both the state senate and the state assembly) from increasing those salaries if the state General Fund is expected to end the year with a deficit. (Specifically, if the state's Director of Finance reports that there will be "a negative balance in the Special Fund for Economic Uncertainties at the end of that fiscal year.")

Currently, California legislators are paid $116,208 annually, which is the highest among state legislators in the U.S. Legislators also are given $170/day "per diem" expense money for each day they are in session. Unlike most state legislators, California legislators serve full time.

For a complete copy of the 1F legislation, you can go to: http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sca_8_bill_20090219_chaptered.html

Proposition

Description

Proposition 1A

Prop 1A combines a 4-year tax hike of about $16 billion with a state spending cap

Proposition 1B

Modification of California Proposition 98 (1998) to free up money for state's budget overruns.

Proposition 1C

Sell rights to future lottery proceeds as a way of raising some cash now for state budget.

Proposition 1D

Asks voters to approve taking money from Prop 10 in 1998 for purposes not allowed in that 1998 vote.

Proposition 1E

Asks voters to take money from Prop 63 for purposes not allowed in that 2004 vote.

Proposition 1F

No pay raises for state legislators in years when there is a state budget deficit