Gravel2Gavel Construction & Real Estate Law Blog

UPDATE: The Sacramento Bee, A King’s crown? A crushed can? Architects analyze arena design (Feb. 2, 2014)

BREAKING NEWS: The Sacramento Bee, Mayor Kevin Johnson Formally Unveils Drawings Of New Sacramento Kings Arena and Proposed New Arena To Include Farm-To-Fork Elements (Jan. 28, 2014)

On Tuesday, October 29, arena designer Mark Friedman of AECOM presented the latest concepts for Sacramento’s new sports center and entertainment complex to Sacramento’s City Council at a public meeting. The latest drawings of Friedman’s concepts show that it would involve both indoor and a possible second level outdoor use option. Friedman also proposed that the arena for Sacramento Kings’ and other events would be built below ground with the main concourse area to be constructed at street level. The proposed u-shaped structure would not have a “back”, which would help to open up the area around K Street, said Sacramento Kings President Chris Granger.

Additional Sources: Sacramento Kings Owners Announce Indoor-Outdoor Facility Concept for New Arena; Turner Construction Company to Build New Sacramento Kings Arena; The Sacramento Bee; CBS Sacramento; News 10

UPDATE: The Sacramento Bee, West Sacramento setting the table as a major food industry hub, Mark Glover (Feb. 2, 2014) and Growing pains assail the senses in West Sacramento neighborhood, Darrell Smith (Jan. 5, 2014)

West Sacramento appears to be a growing global food hub. Today, it was announced that Shinmei Co. Ltd. of Kobe, Japan (“Shinmei Co.”), is on a fast track to build a $10 million factory to make rice buns in West Sacramento and a 28,000-square-foot building in the Southport Business Park. Sacramento builder Potter Taylor & Co., a locally and family owned business, has been slated to develop the site and build the plant. Construction is expected to commence early next year.

Today’s announcement follows closely on the heels of Japan’s Nippon Shokken’s August 2013 announcement that, after 18 months of construction, it was opening its 70,000 square foot facility to make sauces for the global market. Nippon Shokken and Shinmei Co. will be next door neighbors.

Just weeks before Nippon Shokken’s announcement, Norway’s Tomra Sorting Solutions announced that West Sacramento would soon see work beginning on its 60,000 square foot building that will be the North American headquarters for Tomra. West Sacramento’s Brown Construction Inc. is building this factory and VLMK Consulting Engineers of Portland, Oregon will be acting as the project’s engineer and architect. Tomra expects to occupy the building by March.

Last but not least, Germany’s Bayer CropScience moved into a 164,00 square foot building in West Sacramento in late July. It expects to acquire an additional 10 acres somewhere close to construction a greenhouse facility.

These companies join various domestic food distribution and manufacturing companies that have been located in West Sacramento for many years, including Farm Fresh to You, Tony’s Fine Foods, Nor Cal Beverage and Raley’s Family of Fine Stores.

Additional Sources: Sacramento Business Journal

The California State Contractors License Board and California Department of Public Health warn that construction and other workers who disturb soil are at risk for contracting Valley Fever, and encourage employers to include protective measures in workplace health and safety plans. The Coccidioides immitis fungus lives in the soil in parts of California, particularly in the Central Valley, and in several southwestern U.S. states, and in Central and South America. Valley Fever is contracted by inhaling fungal spores that live in the dirt and that are stirred up by activity, including but not limited to construction, digging or driving, or working in dusty, wind-blown areas. Typically those who become infected experience pneumonia and flu-like symptoms.

Workers at higher risk for Valley Fever include wildland firefighters, construction workers, archaeologists, military personnel, and workers in mining, gas and oil extraction jobs. In 2007, 10 members of a 12-person construction crew excavating a trench developed Valley Fever (also known as coccidioidomycosis), an illness with pneumonia and flu-like symptoms. Seven of the 10 had abnormal chest x-rays, four had rashes, and one had an infection that spread beyond his lungs. Over 1000 Californians are hospitalized with Valley Fever every year. About 8 of every 100 people hospitalized die from the infection annually.

Although there is no vaccine against Valley Fever, the Department of Public Health suggests that employers and workers can take protective measures including but not limited to “incorporating the following elements into the company’s Injury and Illness Prevention Program and project-specific health and safety plans:
1. Determine if the worksite is in an area where Valley Fever is endemic (consistently present). Check with your local health department to determine whether cases have been known to occur in the proximity of your work area. See the map on page 2 to determine whether your company will be working in an endemic county.
2. Train workers and supervisors on the location of Valley Fever endemic areas, how to recognize symptoms of illness (see page 3), and ways to minimize exposure. Encourage workers to report respiratory symptoms that last more than a week to a crew leader, foreman, or supervisor.
3. Limit workers’ exposure to outdoor dust in disease-endemic areas. For example, suspend work during heavy wind or dust storms and minimize amount of soil disturbed.
4. When soil will be disturbed by heavy equipment or vehicles, wet the soil before disturbing it and continuously wet it while digging to keep dust levels down.
5. Heavy equipment, trucks, and other vehicles generate heavy dust. Provide vehicles with enclosed, air-conditioned cabs and make sure workers keep the windows closed. Heavy equipment cabs should be equipped with high efficiency particulate air (HEPA) filters. Two-way radios can be used for communication so that the windows can remain closed but allow communication with other workers.
6. Consult the local Air Pollution Control District regarding effective measures to control dust during construction. Measures may include seeding and using soil binders or paving and laying building pads as soon as possible after grading.
7. When digging a trench or fire line or performing other soil-disturbing tasks, position workers upwind when possible.
8. Place overnight camps, especially sleeping quarters and dining halls, away from sources of dust such as roadways.
9. When exposure to dust is unavoidable, provide NIOSH-approved respiratory protection with particulate filters rated as N95, N99, N100, P100, or HEPA. Household materials such as washcloths, bandanas, and handkerchiefs do not protect workers from breathing in dust and spores…”

They can also become vigilant about watching for warning symptoms, and seeking early medical attention if typical symptoms appear (between 7 and 21 days after breathing in spores) and include:
•Cough •Fever •Chest pain •Headache •Muscle aches •Rash on upper trunk or extremities •Joint pain in the knees or ankles •Fatigue
Additional Resources: California Department of Public Health; Centers for Disease Control and Prevention

UPDATE: CSLB Industry Bulletin No. 14-05, CSLB Reminds Licensees about New Law to Help Identify Subcontractors Bidding on Public Works Projects (May 2, 2014)

UPDATE: CSLB Industry Bulletin No. 14-02, Compliance Dates Delayed For Some Energy-Related Regulations in CA Building Standards Codes (Feb. 10, 2014) — New Effective Date Jul. 1, 2014
UPDATE: New Construction Laws Effective This Wednesday

UPDATE: CSLB Summarizes New Laws That May Impact Licensees In The Coming Year

Contractor-related bills recently signed by California’s Governor Edmund G. Brown Jr. and chartered into law include:

Assembly Bill 44 Subletting and Subcontracting Fair Practices Act: Bidding Practices: AB 44 amends California’s Public Contract Code 4104 to require that prime contractors specify the contractor license numbers of subcontractors who will perform work on bids for public work projects.

Assembly Bill 164 Infrastructure Financing: AB 164 extends California’s Little Miller Act by requiring a lease agreement between a governmental agency undertaking an infrastructure project and a private entity to include performance bonds as security to ensure the completion of construction, and payment bonds to secure payment of claims of laborers, mechanics, and materials suppliers employed on the project under contract.

Assembly Bill 433 Contractors: Fire Protection Systems: Fire Safety: State Fire Marshal: AB 433 adds and repeal Business & Professions Code § 7026.13 to, among other things, authorize, until January 1, 2017, the installation of a residential fire protection system for a 1or 2-family dwelling by a contractor holding a fire protection contractor classification or a plumbing contractor classification.

Assembly Bill 811 Excavations: AB 811 amends existing law to require regional notification centers to post on their website statewide information provided by operators and excavators regarding legal violations and damages resulting from violations.

Assembly Bill 1236 Contractors: Limited Liability Companies: AB 1236 amends Contractors State License Law that states insurance policies secured to satisfy limited liability company provisions are required to be written by an insurer or insurers licensed by the State of California and also permits those policies to be written by an eligible surplus insurer.

Senate Bill 822 Committee on Business, Professions and Economic Development, Professions and Vocations: Among other things, SB 822 amends Business & Professions Code § 7026.1 to provide that the term “contractor” or “consultant” does not include a common interest development manager, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined in Business & Professions Code § 11500(d).

Additional Resources: California Contractor-Related 2013 Legislation and Bills to Watch

Photo: Edward Headington, Taken March 20, 2012 – Creative Commons

UDPATE: CSLB, CSLB Pipeline Review Program Expands into Southern California (Summer 2014)

The California State Contractors Licensing Board (CSLB) confirmed in its 2013 Fall CLC Newsletter that there are 10 complaints pending against licensed contractors that PG&E claims did not go through the required permitting process to note the underground location of the existing utility pipelines in the area where work was to be performed and while digging in the area struck a gas pipeline. The CSLB warned that licensed contractors who damage natural gas lines during unauthorized digs can expect closer scrutiny by the CSLB. Although the CSLB has had the legal authority to take action against licensees for negligent pipeline breaks (Bus. & Prof. Code § 7110), there have been only 13 incidents in California brought to the CSLB in the last 2 years. Penalties could range from a warning letter to the licensee to revocation of the license, which would occur in the most serious cases.

Those who fail to register with the Underground Service Alert of Northern California or Underground Service Alert of Southern California are also subject to a fine of up to $50,000 and they can be held responsible for any repair costs. Even with the potentially stiff penalties, too many contractors may still be taking part in unauthorized excavations. The CSLB reported that, in 2012, 1,754 incidents of damage to utility lines were reported in California. An estimated 60% of those pipeline breaches were committed by contractors and the majority of the line breaks occurred during an unauthorized dig.

Any digging or excavation, even if it is just breaking ground with a shovel, requires licensed contractors to call 8-1-1 and to coordinate at least 2 days beforehand with the Underground Service Alert of Northern California or Underground Service Alert of Southern California.

Additional Resources: California State Contractors State License Board; Underground Service Alert of Northern California; Underground Service Alert of Southern California

UPDATE: December 17, 2013 CSLB Sting Nabs Convicted Rapist

On October 11, 2013, the California Contractors State License Board (“CSLB”), in its news release entitled Sex Offenders, Convicted Felons Snagged in Contractors State License Board Statewide Sting, announced that 75 people may face criminal charges after being caught in 6 of the CSLB’s simultaneous, statewide undercover sting operations conducted this week as part of its fall California Blitz.

The CSLB’s Statewide Investigative Fraud Team (SWIFT) investigators, along with partners from a variety of state and local law enforcement agencies, conducted stings on October 9 and 10, 2013, in Clovis (Fresno County), Ontario (San Bernardino County), Roseville (Placer County), and Seaside (Monterey County). 1-day stings were conducted October 9, 2013, in South Lake Tahoe (El Dorado County) and October 10, 2013, in the area burned in the recent Silver Fire near Banning (Riverside County).

SWIFT investigators posed as homeowners seeking bids for home improvements. CSLB Registrar Steve Sands said that “Homeowners should be nervous when they hear the background of some of the people we caught in these stings.”

Most notable, among those arrested, 2 were registered sex offenders, 2 were individuals with several prior felonies including robbery, rape, burglary and drug possession, 3 were individuals with an active arrest warrant, and several individuals were caught using contractor license numbers belonging to others. 3 of the suspects were taken to jail, and 1 vehicle was towed. Mr. Sands also confirmed that “[u]nlicensed, illegal activity that puts homeowners at risk and legitimate contractors at a competitive disadvantage will not be tolerated.”

Of the 75 individuals arrested, 72 now may face misdemeanor charges for contracting without a license (Bus. & Prof. Code § 7028). The penalty for a conviction is up to six months in jail and/or a fine of up to $5,000.

Of those individuals arrested, 56 also may be charged with illegal advertising (Cal. Bus. & Prof. Code § 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty is a fine of $700 to $1,000.

10 others may be charged with requesting an excessive down payment (Cal. Bus. & Prof. Code § 7159.5). In California, a home improvement project down payment cannot exceed 10% of the contract total or $1,000, whichever is less, unless an appropriate bond is in place (Cal. Bus. & Prof. Code § 7159.5(a)(8)). This misdemeanor charge carries a maximum penalty of 6months in jail and/or up to a $5,000 fine.

13 of those individuals arrested also were issued Stop Orders (Cal. Bus. & Prof. Code § 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers’ compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

A majority of those caught this week were identified through illegal ads posted on craigslist.org.

Additional Sources: California Contractors State License Board; CSLB Laws and Regulations

Photo: Kshitij Garg, Taken Feb. 14, 2009 – Creative Commons