Kevin Brady - September/October 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ENGINEERING INC.
S E PT E M B E R/O CTO B E R 20 1 8
www.acec.org
AWARD-WINNING BUSINESS MAGAZINE ● PUBLISHED BY AMERICAN COUNCIL OF ENGINEERING COMPANIES
Meet ACEC’s New
President/CEO
Making Your
Firm “A Great
Place to Work”
Woodard & Curran’s
Strong Foundation
for Giving
Texas Congressman
Kevin Brady
A CHAMPION FOR GROWTH
JOIN THE
MOVEMENT!
Our vision is to establish consulting
engineering as the healthiest industry
in the United States by:
• Offering solutions traditionally reserved for larger
firms to small and midsized firms
• Providing rewarding wellness programs to everyone
• Guiding members to the highest-quality providers
• Offering a comprehensive portfolio of product and
funding alternatives
When we succeed, we all benefit with:
• Lower health care costs
• Increased productivity
JOIN US!
The Trust was designed by engineers, for engineers—and you
belong! For more information, visit aceclifehealthtrust.com
or call (844) 259-0325.
CONTENTS September/October 2018
“Today, we
have one
of the most
business-
friendly and
competitive
tax codes on
the planet—
and want
to keep it
that way.”
Congressman Kevin Brady
PRO-GROWTH CHAMPION
10 COVER STORY
In an exclusive interview with
Engineering Inc., U.S. Rep. Kevin Brady
discusses the Tax Cuts and Jobs Act, trade
agenda and plans for economic growth.
LasVegas 2018 FALL
CONFERENCE
October BELLAGIO
28-31
28
Featured Speakers
The Soul of America Not Impossible Seizing Opportunity
Jon Meacham Mick Ebeling in Disruption
Presidential Historian and Technology trailblazer and Peter Sheahan
Pulitzer Prize-Winning two-time SXSW Innovation Business Leader named one
Author Award Winner of the “25 Most Influential
Speakers in the World”
CEO Panels
Gaining an Edge in a Competitive Market
Creating a Workplace to Attract the Best Talent
FEATURES
14
MEET ACEC’S NEW PRESIDENT/CEO
Linda Bauer Darr offers insight into her vision
for ACEC.
18
TRANSIT-ORIENTED
DEVELOPMENT ACCELERATING
Compact, walkable, mixed-use communities
14 are an emerging trend in major U.S. cities.
26
IS YOUR FIRM A GREAT PLACE
TO WORK?
Your company culture and benefits can create
happy employees and a competitive edge.
34
18 34 A STRONG GIVING FOUNDATION
Woodard & Curran’s charitable foundation focuses
on giving and making an impact on society.
DEPARTMENTS
4 FROM ACEC TO YOU 42 GUEST COLUMN
Improved teamwork improves performance. Big win by ACEC and the Life/Health Trust for AHPs.
6 MARKET WATCH 44 MERGERS AND ACQUISITIONS
Growth continues for highways and roads regardless M&A activity is gold in California.
of funding roadblocks.
47 MEMBERS IN THE NEWS
8 LEGISLATIVE ACTION Harris elected chair of Stanley Consultants; Platz named CEO/president of Mead &
Shuster proposes gas tax increase; Senate boosts Hunt; Franz promoted to CEO and Lee named president of AKRF; Packer appointed
transportation, water infrastructure programs. president of Terracon Consultants; and Green promoted to president of Pond & Co.
40 GUEST COLUMN 52 BUSINESS INSIGHTS
Keys to an effective growth strategy. Geoprofessional Coalition to meet at Fall Conference; new Private Industry Brief to
focus on energy and utilities.
Engineering Inc. promotes the advocacy and business interests of ACEC by offering news, legislative analysis and business practice
information to member firms, clients, opinion leaders and policy makers.
The articles and editorials appearing in this magazine do not represent an official ACEC position or policy unless specifically identified as doing so.
FROMACECTOYOU
ENGINEERINGINC.
THE OFFICIAL PUBLICATION OF THE
AMERICAN COUNCIL OF ENGINEERING COMPANIES
Improved Teamwork
AMERICAN COUNCIL OF ENGINEERING COMPANIES
CHAIRMAN Manish D. Kothari
PRESIDENT & CEO Linda Bauer Darr
Improves Performance VICE PRESIDENT,
OPERATIONS
VICE PRESIDENT,
GOVERNMENT AFFAIRS
Mary Ann Emely
Steven Hall
A
VICE PRESIDENT, Marie Ternieden
s a new president/CEO assumes Council leadership, an emphasis on BUSINESS RESOURCES
AND EDUCATION
the importance of teamwork is already one of the primary initiatives.
DIRECTOR, COMMUNICATIONS Alan D. Crockett
Member Organization and Member Firm leaders already know the AND MEDIA
connection between teamwork and operational and financial success STAFF EDITOR Andrea Keeney
for a business. akeeney@acec.org
202-682-4347
Such an emphasis was recently launched at the national level, highlighted
SENIOR COMMUNICATIONS Gerry Donohue
by an off-site, all-staff retreat featuring Rick Corcoran, a noted organizational WRITER
development expert, in addition to leaders from fellow associations.
The discussions centered on how working more effectively together leads ACEC PUBLIC RELATIONS AND
EDITORIAL ADVISORY COMMITTEE
to higher performance, in addition to avoiding common obstacles that can
stymie that ambition. It was an excellent opportunity for Council staff to gain CHAIRMAN Mary Stiff
insight on how enhanced teamwork can improve overall Council performance—
IMAGINATION
from service and programs for members to becoming an even greater force on MANAGING EDITORTim Gregorski
Capitol Hill. Jeff Kibler
ART DIRECTOR
This issue of Engineering Inc. features a Q&A with new President/CEO Linda PROJECT DIRECTOR Amy Stephenson Fabbri
Bauer Darr who provides a glimpse of her vision for the Council going forward.
(see page 14). ADVERTISING SALES
Also included is a report on how engineers are helping the growth of new Rachael Ng
ACEC
transit-oriented developments (see page 18); and why several Member Firms 1015 15th Street, NW, 8th Floor
consistently achieve top national honors as “great places to work” (see page 26). Washington, D.C. 20005-2605
A stellar lineup of nationally noted speakers, Member Firm and industry 202-682-4337
rng@acec.org
experts, and more than 30 bottom-line focused business management sessions—
along with sights and sounds of one of the nation’s most exciting cities—await
attendees at the 2018 ACEC Fall Conference Oct. 28–31 in Las Vegas.
We look forward to seeing all of you there.
Engineering Inc., Volume 29, Number 5 (ISSN 1539-2694), is published
bi-monthly by the American Council of Engineering Companies (ACEC),
1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605. Periodicals
postage paid at Washington, D.C., and at additional mailing offices. Annual
subscriptions are $24 for members (included in dues as a non-deductible
amount); $45 for U.S. non-members; $65 for institutional subscriptions.
Manish D. Kothari Linda Bauer Darr Back issues are $15.
ACEC Chairman ACEC President & CEO POSTMASTER: Send address changes to Engineering Inc., c/o ACEC,
1015 15th Street, NW, 8th Floor, Washington, D.C. 20005-2605.
© 2018 American Council of Engineering Companies. All rights reserved. This
publication may be copied, downloaded from the ACEC website, stored in
electronic or hard-copy format, and disseminated to third parties for educational
and information purposes. ACEC expressly disclaims any liability for damages
of any kind in connection with such copying, downloading, storage, and/
or dissemination. By copying, downloading, storing and/or disseminating
this publication, the recipient of this publication expressly agrees to defend,
indemnify, and hold ACEC, its officers, directors, employees, volunteers and
agents harmless from and against any and all losses, damages, claims, causes of
action and liabilities, including reasonable attorneys’ fees and costs, arising out
of or resulting from the recipient’s use of this publication. Notwithstanding the
above, no part of this publication may be altered, resold, licensed, or used for
any other commercial purposes without the prior written permission of ACEC.
Recipients may opt out of receiving the electronic version of this publication
from ACEC by sending an e-mail with the subject line “Unsubscribe” to ACEC
at magazine@acec.org.
Engineering Inc. subscribers: If you have a mailing address correction or need to
add or remove an employee from the Engineering Inc. mailing list, please contact
the ACEC Membership Department at memberservice@acec.org or call 202-
347-7474 and ask for Member Records.
WWW.ACEC.ORG
NEW PARTNERSHIP =
NEW RISK MANAGEMENT
EXPERTISE FOR YOU
INSURANCE BROKERAGE RISK CONSULTING
a division of
ENJOY THE SAME MEMBER BENEFITS
DEDUCTIBLE ASSISTANCE PROGRAM
MEMBER FIRM ROYALTY SHARING
COALITION PROGRAM DUES
NATIONAL AND STATE MEMBER ORGANIZATION SUPPORT
Greyling, a division of EPIC is the
Broker & Program Administrator for the
ACEC Business Insurance Trust
FOR MORE INFORMATION ON
THE PROGRAM & NEW PARTNERSHIP
EMAIL: acecbit@greyling.com
PHONE: 833.ACECBIT (833.223.2248)
OR VISIT ACECBIT.ORG
© EDGEWOOD PARTNERS INSURANCE CENTER | CA LICENSE 0B29370 EPICBROKERS.COM
MARKETWATCH
Highways and Roads Sector Continues
TOM BRAKEFIELD/ISTOCKPHOTO.COM
Growth Despite Funding Challenges
By Gerry Donohue
F
unding for the nation’s highways and roads may be been unable to bring in enough revenue to meet its obligations
woefully insufficient, but for the engineering firms and has required frequent cash infusions from the federal govern-
operating in the sector, funding has been steady ment’s General Fund.
and strong—and may improve. The Trump administration has proposed a new infrastructure
“Over the past three years, the market has been financing program that would operate parallel to the Highway
in growth mode,” says Malcolm Dougherty, senior Trust Fund, using $200 billion in federal funds to stimulate $800
vice president and national transportation practice billion in private investment. Initially highly touted, the program
lead for Michael Baker International. “Last year, has receded into the background and is not expected to resurface
the pace picked up significantly, and we expect the current pace in 2018.
and trajectory to continue.” For engineering firms in the field, the infrastructure funding
shortfall is noteworthy and demands a long-term sustainable solu-
STATES FILLING THE VOID tion, but the sector has adapted to the funding realities.
According to FMI Corporation, noted industry management “We hear a lot of discussion from D.C. about the Trust Fund
consultants, the highways and roads sector will grow at an aver- being insolvent, but much of that is overstated,” says Rich
age annual rate of about 2.2 percent over the next five years. The Markwith, market sector leader for the states and municipalities
bulk of that growth will be in 2018 and 2019, sector of TranSystems Corp. “The truth of the
with annual rates of 3 percent, before tailing off matter is that federal funding is stable through
to just 1 percent by 2022. According to 2020. A lot of states and localities have taken
Historically, growth in highways and roads
has been due to the federal Highway Trust Fund.
FMI Corporation, steps over the past few years to address their own
funding needs.”
Using revenue from the federal fuel tax, the the highways More than half of states have increased their
Highway Trust Fund finances most federal gov- and roads sector investment in highways and roads over the past
ernment spending for highways and mass transit
through grants to state and local governments. will grow at an few years. For example in 2017, California,
Indiana, Montana, Oregon, South Carolina,
Although the federal government accounts for average annual Tennessee and West Virginia raised their gas
only about one-quarter of all public spending on
roads and highways—with the remaining three- rate of about taxes, and Utah adjusted its gas tax formula to
raise more money. Additionally, Maine has a
quarters financed by state and local govern- 2.2 percent pending transportation bond measure, and West
ments—these funds have acted as the accelerator
for the system.
over the next Virginia has approved a transportation bonding
measure. Furthermore, Colorado, Idaho, New
In recent years, due to the long-term failure five years Hampshire and Wyoming have taken various
to raise the gas tax, the Highway Trust Fund has steps to increase revenues for transportation.
6 ENGINEERING INC. SEPTEMBER / OCTOBER 2018
In 2018, more than a dozen states are expected to consider
measures to increase transportation funding. Furthermore,
“There is recognition
numerous cities and counties have taken it upon themselves to of how much of our
raise funds to build or repair local transportation and transit
systems. infrastructure is
There has also been a limited influx of private money into the coming of age and
market. “In Silicon Valley, for example, two private companies
have committed to spend up to $50 million to fund infrastruc- needs to be repaired
ture improvements,” says Dougherty. “It is not going to be a sig- and refreshed. We
nificant part, but it is a part.”
expect the federal government to
MARKET OPPORTUNITIES
Inside the transportation sector, firms are concentrating on
be a robust partner.”
the markets that offer the most potential. At TranSystems, that MALCOLM DOUGHERTY
means tracking which states, counties and cities have been the MICHAEL BAKER INTERNATIONAL
most aggressive in raising transportation funds. Highway and Road Construction Put in Place
“Virginia, Georgia and Texas have been good strong markets,”
Change from prior year—current dollar basis
says Markwith. “Just last year, California passed Senate Bill 1,
2013 1%
providing another $5 billion a year for transportation. Florida
2014 4%
has done a fantastic job of having multiple streams of revenue for
2015 7%
transportation.”
John Barton, DOT market sector leader and senior vice presi- 2016 1%
dent for HNTB Corp., says alternative delivery systems have 2017 -4%
expanded the market for engineering firms. 2018 3%
“Design-build and construction-manager-at-risk contracts are 2019 3%
creative solutions that we can offer to public clients that have 2020 2%
constrained resources, both in funding and people,” says Barton. 2021 2%
“Public-private partnerships are a bit of an opportunity, but not 2022 1%
as much as the others.” Source: FMI Corporation
HNTB has also increased its focus on specific segments of the
transportation sector, such as transit, passenger rail and toll roads. INTELLIGENT TRANSPORTATION
“Tolling has had a bit of an uptick recently, getting some federal One of the most promising trends in the transportation sector is
support, both for traditional toll roads and price-managed lanes,” the advent of intelligent transportation systems. HNTB, Michael
says Barton. Baker International and TranSystems are investing money and
staff in the field.
SOLVING THE FUNDING PROBLEM “We have a very strong internal practice, with several dozen
In the next few years, firm leaders expect to see continued experts in the field,” says Barton. “It is a growing practice within
investment by the states but also a solution to the flat-lining of the industry and HNTB.”
federal funding. It is also a multifaceted practice, with a wide range of potential
“There is recognition of how much of our infrastructure clients, from helping the auto manufacturers deliver the com-
is coming of age and needs to be repaired and refreshed,” munications components to working with public entities on the
Dougherty says. “We expect the federal government to be a infrastructure.
robust partner.” “States and cities are looking for expertise on what they should
Barton agrees. “We are going to see a renaissance for these expect,” says Dougherty. “Many states are leading the charge—
programs,” he says. “We will not see this devolving to the fund- California and Michigan are two examples.”
ing coming only from the state level. There will be a strong fed- Some of the technology is already reaching the market. Several
eral component.” luxury car brands offer adaptive or dynamic cruise control that
Where the federal funds will come from is less certain. The changes a vehicle’s speed based on the cars around it. The more
federal gas tax has not been increased since 1993, and Congress complicated concepts—connected or even autonomous cars—are
appears to have no resolve to take on the issue. farther off.
“It is surprising there is such resistance at the federal level to “It is going to be a little slower than we read about,” says
raising the gas tax because we see it all over the place at the state Markwith. “The technologies are not the issue. They are easier
level, and there appears to be little backlash,” says Markwith. than the institutional and individual behavioral challenges, such
“We have tried to identify people who have lost seats by voting as getting people to accept riding in a driverless car.” n
for the gas tax, and it appears to be 5 percent or less of them.”
“Going forward,” Markwith adds, “the only method that has Gerry Donohue is ACEC’s senior communications writer. He can be
anything behind it is some sort of mileage-based system.” reached at gdonohue@acec.org.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 7
LEGISLATIVEACTION
House Transportation
Committee Chairman
Proposes Increase in
the Gas Tax
ROBYN BECK/ STAFF / GETTYIMAGES
O
utgoing House Transportation and
Senate Bill Boosts Transportation,
Infrastructure Committee Chairman Bill Water Infrastructure Programs
Shuster, R-Pa., unveiled an outline of
The U.S. Senate passed an appropriations package
infrastructure legislation that increases the
that increases funding for several transportation and
federal gas tax by 15 cents a gallon over
water infrastructure programs for 2019.
three years and indexes it for inflation.
The bill provides $49.3 billion for federal highway
The
programs, a $3.3 billion supplement above FAST Act
proposal
levels. Transit programs receive a total of $13.5 billion,
would also increase diesel taxes
BILL CLARK / CONTRIBUTOR / GETTYIMAGES including $2.6 billion for capital investment grants.
by 20 cents a gallon and create
BUILD (formerly TIGER) multimodal grants are
a nationwide pilot program
funded at $1 billion, and rail programs total nearly
to study a mileage-based fee
$3 billion.
structure to replace the gas tax.
For aviation, the bill preserves Airport Improvement
ACEC has strongly supported
Program funding at $3.35 billion, adds $750 million
both policies to ensure long-
in competitive grants for airport infrastructure and
term funding sustainability. Rep. Bill Shuster, R-Pa.
allocates $3 billion for FAA facilities and equipment.
Shuster, who is retiring
The bill also provides $3.3 billion for the Community
from Congress this year, also
Development Block Grant program, the same as the
proposes Council-backed increases to water infrastructure
fiscal year 2018 level.
funding, including Drinking Water State Revolving Loan
The Clean Water and Drinking Water State Revolving
Funds, Water Infrastructure Finance and Innovation Act
Funds receive more than $2.86 billion, a slight
(WIFIA) financing and Harbor Maintenance Trust Fund
increase over fiscal year 2018. The WIFIA program
spending. The bill would codify the “One Federal Decision”
is funded at $63 million, which could leverage more
approach and two-year timeline for project permitting.
than $6 billion in loans for water infrastructure
According to ACEC President/CEO Linda Bauer Darr, “We
projects.
need a sustainable fix to the Highway Trust Fund in advance
The bill also provides $1.1 billion for the Superfund
of the reauthorization of the FAST Act in 2020, and Shuster’s
program, maintaining the 2018 funding level.
proposal is a good start.”
ACEC, ACEC Life/Health Trust Gain Big AHP Win
ACEC’s Life/Health Trust will be protected under the Department of Labor’s final rule on the regula-
tion of association health plans (AHPs).
In March, ACEC and the ACEC Life/Health Trust submitted comments on the proposed AHP rule,
raising concerns that the proposal would impose new mandates that would undercut the Trust’s com-
petitiveness in serving firms with more than 50 employees. The final rule responded to those concerns,
permitting existing AHPs like the Trust to continue operating as they did previously.
The rule also opens the way for organizations that currently lack an AHP to create one by allowing
groups to qualify based on geographic ties, as well as business associations. Another change allows sole
proprietors and their dependents to purchase health insurance through newly established AHPs.
ONLY5 / THINK STOCK
Plans operating under the new rule will have to comply with mandates on insurance pricing for firms
with more than 50 employees.
8 ENGINEERING INC. SEPTEMBER / OCTOBER 2018ISSUES ON THE MOVE WHAT’S NEXT
ACEC Endorses Flood Mapping Shuster infrastructure package Stakeholder lobbying push in
Legislation; Flood Insurance the fall
Program Extended Transportation, water
appropriations
Final action in September
ACEC has endorsed the The bill was introduced Flood mapping, insurance Possible action in the fall
Flood Mapping Modern- in the Senate by Sens. extension
ization and Homeowner Richard Durbin, D-Ill., Marco
Empowerment Pilot Program Rubio, R-Fla., and Tammy augment the recent approval to a program that is
Act of 2018, Duckworth, D-Ill., policy shift in disaster $30 billion in debt.
which will cre- and in the House recovery toward future risk Sen. John Kennedy, R-La.,
ate a demon- by Reps. Mike mitigation. countered that it would be
stration grant Quigley, D-Ill., In related news, the “down-to-the-marrow stupid”
BILL CLARK / CONTRIBUTOR / GETTYIMAGES
program to John Culberson, National Flood Insurance to let the program expire.
deploy inno- R-Texas, and Program was extended “We need to reform this
vative map- C.A. Dutch for four months, giving program, but we also need
ping technolo- Ruppersberger, Congress additional to keep it alive through
gies to more D-Md. time to approve a longer the end of hurricane
accurately The new reauthorization of the season,” says Kennedy.
assess flood program would program. “…A reauthorization gives
Sen. John Kennedy, R-La.
risks, especially support better Passage of the bill was us time to make meaningful
in urban areas located out- design measures and delayed because several changes without scaring
side of the traditional regu- policies to mitigate future conservative senators balked five million Americans half
latory floodplains. flood risks and would at giving “rubber-stamp” to death.”
ACEC Promotes Licensure for Engineers
ACEC joined with the ACEC is also working with
National Society of a coalition of professional
Professional Engineers in organizations on legislation
submitting testimony for in response to the 2015 U.S.
a congressional hearing on Supreme Court decision in
occupational licensing and FTC v. North Carolina Board
BILL CLARK / CONTRIBUTOR / GETTYIMAGES
barriers to economic mobility. of Dental Examiners. Licensing
The statement supported boards have generally
strong professional licensing assumed they have the same
standards for design antitrust immunity as state
professionals due to the essential governments, but the Supreme
role they play in protecting Court’s decision stated that
public health and safety. boards only have antitrust
Rep. Mike Conaway, R-Texas
The House Education and immunity if they are actively
Workforce Committee hearing supervised by the state. For
was part of an ongoing debate This decision has created More
over the costs and benefits uncertainty and has led to is licensed in at least 40 News
of state licensure for various over 30 complaints filed states, the board members are For weekly
occupations and professions against various licensing appointed by the governor or legislative
and focused on how to achieve boards, potentially exposing another elected officer of the news, visit
the right balance between boards and their individual state, and the board has at ACEC’s Last
public safety and economic members to treble damages. least one public member. Word online
opportunities. In addition, Congressman Mike Conaway, Although Congress is at www.
there was discussion of R-Texas, has introduced H.R. unlikely to consider licensing acec.org.
portability of licenses across 6515, which would limit boards legislation this year,
state lines, particularly to private antitrust damages ACEC will continue working
accommodate military spouses against boards and their for a balanced solution to this
who move frequently. members if the occupation problem.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 9CONGRESSMAN KEVIN BRADY,
R-Texas, is chairman of the House Ways
and Means Committee—considered by
many to be the most powerful committee
in Congress—with jurisdiction over taxes,
health care, Social Security, Medicare,
international trade and welfare.
In an exclusive interview with Engineer-
ing Inc., Brady describes the impact of the
recent Tax Cuts and Jobs Act, the adminis-
tration’s trade agenda and plans for additional
economic growth legislation.
10 ENGINEERING INC.
PRO-GROWTH
SEPTEMBER / OCTOBER 2018Champion
GARY LANDSMAN
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 11ACEC: Passage of the
Tax Cuts and Jobs Act
(TCJA) was a huge
achievement. From a
big picture perspec-
tive, what were the
goals you were look-
ing to achieve through
tax reform at the start
of the process?
CHAIRMAN KEVIN
BRADY: The TCJA
was about changing
the trajectory of the
U.S. economy for the
better. This included
providing American
families and small busi-
nesses relief from our
unfair and broken tax
code, and leapfrogging
America back into the
lead pack as one of
GARY LANDSMAN
U.S. Rep. Kevin Brady (left) visits with former
the most competitive ACEC President/CEO Dave Raymond (center)
countries in the world and ACEC Chairman Manish Kothari (right).
to do business. In short,
we wanted to create a
booming economy with more jobs, higher paychecks and make BRADY: Yes, every day we are
sure our businesses could compete and win anywhere in the
world. It is succeeding, and Americans are better off. Economic hearing from businesses about new
investments in their employees,
ACEC: ACEC was pleased to work with you and your staff
growth was, equipment, facilities and long-term
growth and opportunities. In fact,
to ensure that engineering firms qualify for the new Sec-
tion 199A 20 percent tax deduction for passthroughs, so
and continues over 660 businesses have announced
pay raises, bonuses, 401(k) match
that engineering firms of all business structures can benefit
from the new law. Most of America’s engineering firms are
to be, one of increases, expansions and utility rate
reductions due to the TCJA. And
passthroughs, so achieving this balance was critical. From
your perspective, how important is it to economic growth to
our top this is just the beginning. Because of
the new tax code, we will witness a
ensure that both C corporations and passthrough firms can
benefit from lower taxes?
priorities.” huge sucking sound back to the U.S.
from overseas as businesses decide to
invest here at home in new workers
BRADY: Economic growth was, and continues to be, one of and facilities, which means more jobs and bigger paychecks.
our top priorities. We worked with all business sizes and struc-
tures to achieve a pro-growth tax code built for the long term. ACEC: You are already talking about plans for Tax Reform
But our work is not done. There is always room to refine and 2.0. What are your near-term and long-term priorities for
make it better, and that is what we intend to do. Today, we have building on the TCJA?
one of the most business-friendly and competitive tax codes on
the planet—and want to keep it that way. BRADY: Near term, the House of Representatives and Ways
and Means Committee plan to begin consideration of Tax
ACEC: Engineering firms are putting the new tax law to Reform 2.0 in September. The focus of our legislative effort
work. For example, Jones & Carter in The Woodlands, will be on locking in the individual and small business tax cuts,
Texas, has reported a significant uptick in business, which which will provide certainty to our middle-class families, work-
they attribute in part to the new tax law. Are you hearing ers and Main Street businesses while unleashing even more
from employers in Texas and across the country about how economic growth in the long term. We also plan to promote
they are investing in their people and businesses because of family savings, so our families can start saving earlier and more
the new law? throughout their lives, and spur new business innovation by
12 ENGINEERING INC. SEPTEMBER / OCTOBER 2018Tax Reform Benefits
helping entrepreneurs write off more of their initial startup
costs and remove barriers to growth.
Long term, we plan to continue updating and improving
what we started last year. While the TCJA was about changing
the trajectory of the U.S. economy for the better, 2.0 is about ACEC Member Firms
locking in those reforms and changing the culture in Washing- The Tax Cuts and Jobs employee stock owner-
ton, D.C., so that America never again falls behind its global Act of 2017, approved by ship plan valuation. “With
competitors. Never again will we wait 30 years to modernize Congress last December, a lesser tax rate being
our tax code and in the interim, allow it to get junked up with provides tax relief to firms applied, there are more
special interest provisions and loopholes. profits and cash flow
across the engineering
industry. C corporations and thus a higher value
ACEC: As you know the Trump administration is pursuing
have seen their tax rate of KCI’s stock. We esti-
a trade agenda that includes tariffs on critical infrastructure
drop from 35 percent to mate that KCI received
inputs, such as steel, which is resulting in increased costs
for infrastructure projects. How are you working with the 21 percent, and ACEC a 17 percent increase in
administration to accomplish its trade goals without inad- worked successfully to stock value due to the Tax
vertently harming U.S. employers? ensure that engineering Cuts and Jobs Act,” says
firm personal service cor- Neimeyer.
BRADY: I completely understand the concern and frustration porations were included in John Olsson, execu-
voiced by many of our local farmers, ranchers and manufactur- the lower rate. tive vice president of Ols-
ers who have been negatively impacted by the tariffs and retalia- Engineering firms orga- son Associates, expects
tory measures placed on U.S. goods and services by our trading nized as passthroughs, a measurable increase
partners around the world. such as S corporations, in the firm’s book value
Recently, I joined President Trump as he announced a new partnerships and LLCs, and a reduced tax liability
deal with the European Union to negotiate zero tariffs, zero sub- were originally excluded because of the new law. He
sidies and zero barriers, as well as to strengthen the World Trade from tax relief. However, says that the anticipated
Organization to address the distortions created by China’s unfair ACEC effectively advo- tax savings will enable the
and dishonest trading practices. This is a good start and relieves cated to confirm engi- firm to “use this wind-
some pressure, but more needs to be done. As we all know,
neering firms were fully fall to support continued
China—and its unfair trading practices—is the problem, and I
eligible for the new 20 investment in the firm’s
have encouraged President Trump to meet with President Xi Jin-
percent passthrough tax growth through initia-
ping to craft an historic new solution that levels the playing field
for American farmers, workers and businesses. deduction. tives and to employees via
I am also working with the administration to finalize a stron- While regulations to development programs and
ger, more modern NAFTA agreement with Canada and Mexico implement the new law are performance awards.” Ols-
and address the ongoing frustration with the Section 232 steel still under development, son also says the new tax
and aluminum product exclusion process. ACEC Member Firms are law has allowed them to be
already putting the new a bit more aggressive in
ACEC: Transportation-related revenues in the Highway tax provisions to work. growing the firm.
Trust Fund are not keeping pace with spending levels or “The ongoing annual Gary Raba, chairman
funding needs. ACEC has repeatedly called for a long-term, tax savings is being and CEO of Raba Kistner,
sustainable solution before the expiration of the FAST Act apportioned to increase reports that his firm used
in 2020. With Congress expected to consider infrastructure our 401(k) contribution the tax savings “to accel-
legislation next year, what are the prospects for reaching to employees and fuel an erate growth and invest-
consensus on this issue? internally focused R&D ment in service lines and
Innovation Fund to help geographic locations.”
BRADY: For too many years, we have ignored our country’s
enhance the long-term The Treasury Depart-
aging infrastructure, and now we must find cost-effective ways
viability and sustainability ment released multiple
to update our roads, bridges and ports. Transportation and
of the company for our sets of proposed rules over
Infrastructure Committee Chairman Bill Shuster and ranking
member Peter DeFazio are currently working on a bipartisan employees,” says Mike the summer to implement
framework that aims to reform the Highway Trust Fund, Carragher, CEO of VHB. the new law, and ACEC is
strengthen investment through innovative financing and accel- For KCI Technologies, working with the agency
erate completion deadlines. Something that members from CEO and Chairman Terry to ensure the passthrough
both sides of the aisle agree on is that our nation’s infrastruc- Neimeyer says the new deduction and other provi-
ture is not up to par, and I look forward to working with my law benefits employ- sions function as intended
colleagues to find a solution that works for all Americans. n ees through the firm’s by Congress.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 1314 ENGINEERING INC. SEPTEMBER / OCTOBER 2018
Meet the
New ACEC
President/CEO
Linda Bauer Darr assumed the reins as
president/CEO of ACEC in August, succeeding
Dave Raymond.
In an exclusive interview with Engineering
Inc., Darr reflects on her extensive association
experience and provides insights into her
vision as ACEC’s new leader.
ACEC: What prompted you to seek the CEO position at ACEC?
LINDA BAUER DARR: The president/CEO position of ACEC is an opportunity that
inspired me. Dave Raymond and all the ACEC stakeholders have built a very strong
foundation. From that stable foundation, we have an opportunity to further grow the
association and build out some new dimensions.
With so many changes underway in our society and economy today, the engineer-
ing industry can be more prominent as a thought leader on public policy. In the past,
ACEC’s mission focused on building quality of life for others. Engineering accom-
plishes that, and more. That is what I want to focus on. This industry helps stimulate
people’s minds to achieve their loftiest goals. We do that by connecting vision with
ability. By translating big and small ideas into practical engineering processes, we bridge
a gap. Our ideas and solutions can make possible what previously was not.
CABLE RISDON
This inspires me, and I want to share that inspiration with ACEC stakeholders to
showcase our industry’s value and to put us in a position of even greater strength.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 15ACEC: You have been CEO of two organizations—the Ameri-
can Short Line and Regional Railroad Association (ASLRRA)
and the American Moving & Storage Association (AMSA).
How will those experiences benefit you at ACEC?
DARR: There are two paths I can go down here. First is associa-
tion leadership, and second is subject matter expertise. This will
actually be my fifth trade association, but only two of those, as
you mention, I had the great pleasure to lead. Trade association
leadership is an art and not a science.
As ACEC members will soon find out, I am not a scientist.
With trade associations, even though you may be in charge, ulti-
mately you do not own the business. You are the caretaker, and
the members are the owners. That requires a mix of ambition
and humility, and you need to know how to take direction as
well as give direction.
AMSA taught me how to be bold and to lead because when
I came on board, the association and industry were experienc-
ing dramatic disruption, and we needed to figure out a way to
survive and thrive. ASLRRA taught me the lesson of the “little
engine that could.” Patience, discipline, determination and
humility are critical to achieving real, long-lasting success. The
ACEC mission to win the hearts and minds of policymakers and
PHOTO CREDIT
to help our members grow incorporates the same principles I
learned working with both AMSA and ASLRRA.
In terms of subject matter expertise, my work at the U.S.
Department of Transportation providing funding for all matter
of transportation infrastructure and with the large engineering
firm EG&G and the smaller Frontier Engineering are as helpful DARR: The federation structure is a huge benefit for any
in allowing me to understand the experience of ACEC’s member- industry association. The grassroots work is being done every
ship as anything I have done in the trade association realm. But day by the Member Organizations while ACEC national is
working with the operators who use the infrastructure brings minding the store in Washington, D.C. It should be a very
a users perspective, and that is where my work with the motor symbiotic relationship.
coach, moving, trucking and rail industries come into play. As the Member Organizations grow in size and strength, so
grows all of ACEC and vice versa. Members of Congress go
ACEC: What has been your most satisfying professional home most every weekend, and that is often where the industry
achievement so far and why? can have the most impactful audience with these decision-
makersthrough our Member Organizations.
DARR: There is not a single one. I know that is not what The Member Organizations are the eyes and ears for ACEC
you wanted to hear. Growth and being part of a winning at the local level where precedent-setting policy can be made
team is probably the most satisfying experience for me in my affecting the entire industry. With the Member Organizations,
professional career. we can work to stop bad policy in its tracks before it gets to the
When I was young, I was focused primarily on my career national level, or, conversely, once it has risen to a national level,
growth and doing whatever I could to gain the insights and we can band together as an industry to either fight bad policy or
experience that would allow me to keep climbing the ladder. As support good policy when it migrates to Washington, D.C.
I moved on in my career, it was the satisfaction of being part of a The key is to coordinate, collaborate and have mutual respect
winning team that was inspiring. for our individual roles and needs. I want to be a part of that
But at this stage in my career, I get the most satisfaction out of conversation from the start of my time at ACEC.
watching others grow in their jobs and watching the team grow.
It is an enormous reward to witness team success, coach them ACEC: What special interests, activities or hobbies do you
through failures and foster the camaraderie that is the reward enjoy when you are away from work?
of a strong team effort. At the end of the day, we are not always
going to win or go home happy, but we need to know that we DARR: I really wish I had something more interesting to say
gave it our all and that we were supported in our efforts. here, but I am afraid I have a pretty typical response. I like to
exercise, travel and do some subpar gardening. But I do have
ACEC: What intrigues you the most about ACEC’s structure some exciting travel stories. I have zip lined in Costa Rica,
as a federation with 52 independent Member Organizations? sipped vodka in an ice hotel and run with the bulls in Pamplona.
16 ENGINEERING INC. SEPTEMBER / OCTOBER 2018Linda Bauer Darr (right)
meets with ACEC staff
along with ACEC Chairman
Manish Kothari (center) and
former ACEC President/CEO
Dave Raymond.
“The ACEC mission to win the
hearts and minds of policymakers
and to help our members grow
incorporates the same principles
I learned working with both
AMSA and ASLRRA.”
LINDA BAUER DARR
ACEC: What is your all-time favorite book, movie and song
and why?
DARR: Book? too many to name…Movie? Breakfast at Tiffany’s,
Song? “Sweet Caroline”…Why? no reason. Does there need to
CABLE RISDON
be a reason? Oh yes, you are engineers. I guess I will have to get
used to that. Let me think on it! ■
morrisseygoodale.com
AEC MANAGEMENT SOLUTIONS
TO TRANSFORM YOUR BUSINESS
• Strategic Business Planning
• Mergers & Acquisitions Advisory
• Executive Search
• Marketing & Business Development
• Valuation & Ownership Transition
• Leadership Development & Executive Coaching
• Lean Project Delivery & Consulting
www.morrisseygoodale.com
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 17TRA N A recent example of transit-oriented development is the Denver Union Station Transit Center, which transformed 42 acres of former rail yards in downtown Denver into a major transportation hub. The transit center has helped generate an additional $1.5 billion in new commercial, retail and residential development nearby. 18 ENGINEERING INC. SEPTEMBER / OCTOBER 2018
Compact, walkable,
mixed-use communities
are springing up in
THE RISE OF
major cities nationwide
BY BOB VIOLINO
A NSIT-ORIENTED T
ransit-oriented
development (TOD) is a fast-
growing trend in creating vibrant,
livable, sustainable communities. It
involves the creation of compact,
pedestrian-oriented, mixed-use communities
DEVELOPMENT
centered around high-quality transit systems.
TOD represents a successful marriage of effec-
tive public planning combined with effective
private development, and engineering firms are
playing a key role in bringing the concept to life
in several urban areas around the United States.
“TOD is taking off like a rocket, and how fast
this is accelerating should be exciting news to the
engineering world,” says Andy Kunz, president
and CEO of the Transit Oriented Development
Institute, which conducts conferences, provides
educational resources and advocates for TOD
best practices.
Metropolitan centers, such as Washington,
D.C., and Denver, are much further along than
others when it comes to TOD activity, according
to Kunz. “Cities where the economy is struggling
might not be seeing any signs of this yet, but this
is the new model for real estate development,”
Kunz says.
The concept of TOD has been around in vari-
ous forms since the 1990s, and it reflects even
earlier development cycles, Kunz says. “This is
actually a revival of how we used to build cit-
ies prior to the age of car domination,” he says.
“Now we have gone back to relearn how to make
great urbanism, and we are still learning how to
make great stations that are really walkable and
integrated into the urbanism.”
LIGHTVISION, LLC / GETTY IMAGES
GAINING MOMENTUM
In recent years TOD has begun to pick up
momentum, and a number of key factors have
converged to help drive the growth of these
developments across the country.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 19CHICAGO TRANSIT AUTHORITY
A transit-oriented development rendering of the Lawrence to Bryn Mawr Modernization project in Chicago. The project includes complete reconstruction of three
transit platforms, approximately 1.3 miles of tracks and support structures adjacent and in between.
“There has been a significant trend toward TOD in the last possible benefits such as living space, lower crime and relative
six years around the major metropolitan areas of the U.S.,” says quiet, the quality of life can be reduced when residents must
Sean McLean, co-CEO of Renaissance Downtowns, a firm spend so much time getting to and from work in their vehicles.
that works with local governments, community members and A desire for greater community is another factor. “I believe
business leaders to reposition and revitalize neighborhoods with that now and, in the future, as young people continue to be
unmet demand for mixed-use, walkable developments. reliant on technology as a social platform, their human nature
“This trend definitely looks like it will continue as the to want to be in a community will continue to drive them to
country continues to urbanize,” says McLean. “We have been denser mixed-use environments,” says McLean. “The transit
concentrating on large suburbs with direct transit access to New access to a network of other dense, mixed-use environments
York City and Chicago.” ensures access to many different opportunities for social life
The market for sustainable mixed-use urbanized suburbs is and careers.”
helping to drive the growth, according to McLean. “The transit In addition, many people have become more aware of the envi-
access is only an amenity, a way to be connected to others,” he ronmental impact of so much driving. High-occupancy vehicle
says. “Typically, it is only looked at as rail, but increasingly bus lanes have been installed to try to reduce the number of vehicles
and car services like Via, Uber and Lyft are making it easier on the roads, but traffic in major cities is still a major problem.
to connect.” TOD is a possible way to address the serious and growing
Another factor driving growth is that many young people want problems of climate change and global energy security by creat-
to live in cities and are not interested in owning cars or sitting for ing dense, walkable communities that greatly reduce the need
hours a day stuck in traffic. “They want to ride trains or walk to for driving and energy consumption.
work and not have to worry about having a car,” Kunz says. “That Given all these factors, it is no surprise that the TOD trend is
has had a huge effect on accelerating this trend.” gaining steam.
After years of potential drawbacks such as high real estate and “In places like Washington, D.C., there are cranes everywhere
rental costs, rising crime, poor schools and other factors, many and lots of mixed-use buildings,” says Kunz says. “Cities that have
cities have become desirable destinations again. the most extensive rail systems are where TOD is growing fastest.”
“There is a new urbanism movement,” says Kunz. “In the A report by The George Washington University School of
1950s many people were leaving the cities and moving to the Business, “D.C.: The WalkUP Wake-Up Call,” illustrates the
suburbs, and now we are seeing a shift back.” growth of the TOD trend. The report says walk-ups—walkable
At the same time, many suburban commuters have become urban places—have accounted for 48 percent of income prop-
weary of the constant traffic. While suburbia offers several erty (office, retail, apartment and hotel) in the metro D.C. area
20 ENGINEERING INC. SEPTEMBER / OCTOBER 2018during the period from 2009 to the present. That compares with Bringing together major rail infrastructure and large stations
34 percent in the period from 2001 to 2008 and 24 percent with urbanism, buildings, utilities, etc. is an enormous engineer-
from 1992 to 2000. ing challenge.
Between 2010 and 2015, nearly 500 companies moved to or “This is actually more challenging than building in the sub-
expanded in walkable downtown neighborhoods, according to urban sprawl model where everything is separated, spaced out,”
Smart Growth America, an organization that promotes develop- says Kunz. “Basically, it is all the same engineering as anywhere
ment that encourages a mix of building types and uses, diverse else, except in TOD it is more like a city where everything is
housing and transportation options, development within exist- compact and tight together. That means all the engineering is
ing neighborhoods and community engagement. more complicated.”
The projects involve building within tight spaces and relying
THE ROLE OF ENGINEERS on multiuse facilities.
Engineers are playing a vital role in this development trend. “You are stacking residences on top of railways,” says Kunz.
“TOD projects are being built in areas which were not “The standard engineering is still the same, but the context is
designed for the capacity of the future, and the infrastructure new, and the integration of everything is new.” TOD projects
that they do have is aging rapidly,” says McLean. require rail engineers, building engineers, civil engineers and
Engineers need to be increasingly creative in their approaches structural engineers—all working together to make the project
to marrying rapid growth to aging and often failing infrastruc- a success.
ture issues. “It is important for the experts to educate govern- One of the nation’s most ambitious TOD projects to date is
ments on better ways to operate their municipalities,” McLean Transit Oriented Denver, which was launched in 2006. Denver
says. “Using big data and sustainable science must become the is taking a “systemwide approach to implement not just TOD
norm.” but also transit communities for all of Denver’s residents,”
In addition, engineers must continue to innovate with build- according to the city’s website.
ing technology that will help create cheaper, smart buildings. The TOD strategic plan provides a foundation to guide
“They must help educate governments on new technology for public and private investment at rail stations by creating an
sewer treatment, traffic analysis, and building products such as implementation action plan through research and analysis
cross-laminate timber,” says McLean. of the existing state of TOD; providing citywide, high-level
ACEC SILVER SPONSOR
Insure Your Present and Future
With the leading professional liability insurance provider for design professionals
FREE SCHOOL OF RISK MANAGEMENT CE PROGRAM • OUTSTANDING CLAIMS SERVICE •
DEDICATED TEAMS • OVER 60-YEAR COMMITMENT TO THE ENGINEERING PROFESSION
Protect Your Firm. Visit www.schinnerer.com/ACEC to get started or contact your insurance agent/broker.
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 21“Engineers are essential to the transportation project
concept and planning, environmental permit clearance,
design and construction of the transportation element of
the development.”
RICHARD ROMIG
AECOM
policy recommendations and station-level action items with the connections between the region’s transit systems, according to
intent to foster implementation of TOD at rail stations; and Richard Romig, vice president, transportation at AECOM.
establishing a system to track and monitor Denver’s success so “Riders can now transition easily between bus and rail by way
the city can continue to refine and improve its strategic moves in of an iconic, eight-track commuter rail train hall, a new light-rail
the future. station and a 22-bay underground bus concourse,” says Romig.
Since the launch of the program, the city has created long-range Additional improvements, including street realignments and
plans for 21 station areas; implemented a TOD typology through public plazas, set the stage for a mixed-use transformation.
new “context-sensitive” zoning; established a TOD Fund to As of its opening in 2014, the effort was considered
create and preserve affordable housing at station areas; and spent the largest multimodal project in the U.S. and the largest
millions of dollars on infrastructure in TOD areas. multimodal project ever to earn Leadership in Energy and
AECOM led the planning and design of the Denver Union Environmental Design (LEED) Gold certification from the
Station Transit Center, which generated an additional $1.5 billion U.S. Green Building Council.
in new commercial, retail and residential development nearby. The original master plan placed all transportation modes under-
The project transformed 42 acres of former rail yards into a ground, but the AECOM-led design team reimagined that plan by
centerpiece for downtown Denver, anchoring and facilitating moving all rail functions up to street level, making the layout more
AD_ProServe_ACEC-print.pdf 1 7/25/2018 1:57:18 PM
Risk management
by design
Beazley has been a key market for architects and engineers
professional liability for over 30 years. We insure firms of
C
all sizes, from sole proprietors to global firms including nearly
M
half of the top 50 US design firms (and 7 of the top 10 firms)
Y
as ranked by Engineering News-Record.
CM Ask us how.
MY
CY
CMY
K
Beazley USA Services, Inc. is licensed and regulated by insurance regulatory
authorities in the respective states of the US and transacts business in the State
of California as Beazley Insurance Services (License#: 0G55497).
22 ENGINEERING INC. SEPTEMBER / OCTOBER 2018“TOD projects have special demands that may not be
initially evident to project developers or architects. The
key role for engineers is to elucidate those demands or
restrictions early in the planning phase of the project.”
DAVID GOOD
MRCE
conducive to private development. The move is estimated to have dent, Manhattan West Construction U.S. Office Division, at
saved more than $100 million in underground construction costs. Brookfield Properties.
“Once the concept was refined and permits were completed, “The concept for utilizing post tensioned pre-cast concrete
our engineers worked quickly and diligently to develop phased for the platform was developed by the engineers brainstorming
design packages for construction,” says Romig. “A very high level on how Brookfield could unlock the site’s potential for high-rise
of communication is required to facilitate complete designs that construction,” says Caso. “Engineers were crucial to the design
are fully coordinated and/or integrated.” and construction of all facets of the platform.”
Another TOD project underway is the Manhattan West That includes protection of existing structures, safeguarding
Platform in New York City. The platform is located over transit adjacent railroad right of way, safety for the environment cre-
tracks and is the gateway to the increasingly popular Hudson ated below the platform, design of custom-made equipment
Yards neighborhood. Mueser Rutledge Consulting Engineers for construction of the platform, design of the platform to
(MRCE) is working on the project with real estate operating accommodate future development and flexibility to develop vari-
company Brookfield Properties. ous schemes, monitoring the construction and developing the
“The platform set the stage for the development of Man- sequence of construction and designing the buildings to avoid
hattan West complex,” says Henry Caso, senior vice presi- disruption to the transit system below.
Important
news for
NEWFORMA
WEBINARS
Bentley Users ®
• Prevent Quarterly and Monthly Overages
• Control all Bentley® usage, even licenses
you do not own
• Give users visibility of who is using licenses now
• Warn and Terminate Idle usage
SofTrack controls SofTrack reports SofTrack reports
Bentley® usage by and optionally and controls ESRI®
LEARN HOW TO MANAGE YOUR PROJECTS FROM Product ID code and controls usage of all ArcMap concurrent
INCEPTION TO COMPLETION WITH PROJECT CENTER
counts (pipe, inlet, Autodesk® products and single use
pond, and all others) by Version, Feature license activity
and can actively Code, and Serial
ELIMINATE
COORDINATION block unwanted Number!
EMAIL SINGLE VIEW INTO product usage
MANAGEMENT THE PROJECT ERRORS AND
MITIGATE RISK
CONTACT US NOW:
QUICKLY ORGANIZE (866) 372 8991 (USA & Canada)
EMPOWERMENT AND SEARCH PROJECT CONTEXT (512) 372 8991 (Worldwide)
THROUGH UNSTRUCTURED
CONNECTION DATA www.softwaremetering.com
©
© 2017 Integrity Software, Inc. Bentley is a registered trademark of
www.newforma.com/webinars Bentley Systems, Incorporated
SEPTEMBER / OCTOBER 2018 ENGINEERING INC. 23You can also read
