July 3 , 2008

EXCITING ANNUAL MEETING BEGINS NEXT WEEK

Over 350 members and guests will attend the 2008 CAWV Annual Meeting at The Greenbrier, which begins Thursday, July 10, and runs through Sunday, July 13. The Program Committee has developed an exciting and engaging agenda for members. The General Business Session, held Saturday morning, will feature ARTBA Chairman Leo A. Vecellio Jr., The Vecellio Group, Richard Juliano, ARTBA vice president and managing director, and Dr. Russel Sobel, Ph.D, Department of Economics, Entrepreneurship Center, West Virginia University. Members of Highway Division Meeting will hear from WV Division of Transportation Secretary Paul Mattox and Deputy Commissioner Paul Turman on the division's goals, objectives and funding issues. Also this year, the Program Committee is hosting a Greenbrier Homes Tour and Culinary Bunch Program in addition to golf, fishing and trap tournaments.

The Greenbrier does have rooms available. Anyone wishing to attend who has not already registered should contact Wendy Long at (304) 342-1166 or long@cawv.org immediately.

CAWV ANNUAL MEETING AGENDA

Thursday, July 12
6:00 p.m. - 7:30 p.m. - Early Bird Cocktail Party - Howards Creek Lodge

Friday, July 13
3:00 p.m. - 5:00 p.m. - CAWV Board of Directors Meeting
6:45 p.m. - 7:30 p.m. - Welcome Night Reception - Infinity Pool Patio
*Sponsored by Select Members of the Associate Division
Saturday, July 14
7:30 a.m. - Breakfast
7:45 a.m. - General Business Sessions - Chesapeake Room
Guest Speakers:
Russell S. Sobel, Ph.D., WVU Economics Department
Leo Vecellio Jr., ARTBA chairman and president and CEO of The Vecellio Group
Richard Juliano, ARTBA vice president and managing director, Contractors Division
9:15 p.m. - 10:30 p.m. - Division Meetings
9:00 a.m. - 4:00 p.m. - Children's Program
10:00 a.m. - Greenbrier Homes Tour
11:00 a.m. - Golf Tournament - Meadows Course
11:30 a.m. - Culinary Program - Brunch
1:00 p.m. - Fishing and Trap Tournaments
7:00 p.m. - Children's Dinner and Evening Party
7:00 p.m. - President's Reception - Colonial Terrace
8:00 p.m. - President's Banquet - Colonial Hall
9:00 p.m. - 12:30 a.m. - Dancing to "The SOUL DOCTORS"


NEW SALES AND USE TAX COMBINED REPORTING FORM EFFECTIVE JULY 1

West Virginia law changes have mandated that the Tax Department design a return that combines the consumers sales and service tax form and use form into a single return. Effective July 1, 2008, the new Combined Sales and Use Tax form must be completed and filed for periods ending on or after July 31, 2008. The due date for filing the combined form and remitting sales and use tax for July of 2008 is August 20, 2008. Taxpayers must include on the new form their new Combined Sales and Use Tax 8-digit account number, which will be issued to them by mail after July 20, 2008. On August 1, 2008, the Tax Department plans to post the new combined form online at: www.state.wv.us/taxrev/forms.html. A sample form is attached to this week's Newsletter. Taxpayers can also request a new Combined Sales and Use Tax form by contacting Taxpayer Services at (304) 344-2068 or 1-800-422-2075.

Use of the new combined form for any reporting period ending prior to July 1, 2008 will cause filing delays. For periods ending prior to July 1, 2008, taxpayers will need to use the Consumers Sales and Service and Use Tax 8-digit account numbers issued prior to July 20, 2008 and the separate, card size versions of the Consumers Sales and Service and Use Tax returns. The Tax Department will continue to make these separate returns available at www.state.wv.us/taxrev/forms.html.

For e-filers the new combined form will also be available on the Tax Department's e-filing website, https://mytaxes.wvtax.gov. The online filing system will make sure taxpayers file the correct form or forms for each filing period.

SUPREME COURT RULES IN WAGE CASE

The state Supreme Court ruled, 3-2, on Friday that public agencies can legally avoid paying prevailing wages to workers hired to do construction work on a temporary basis. The case overturns the results of an investigation by the state Labor Department that concluded the Tucker County Solid Waste Authority (TCSWA) should have paid temporary landfill construction workers a total of $199,760 in wages and damages instead of the $99,880 paid to them in wages. The West Virginia Prevailing Wage Act, the majority ruled, does not apply to temporary workers hired by a government agency, only to workers hired by private contractors.

The Tucker County case involved 10 temporary workers hired between May 2003 and August 2003. They performed excavation work and transported the excavated dirt to existing areas of the landfill. The TCSWA simply hired the temporary workers and did not bid the work out under a competitive bid contract. Justice Robin Davis quoted a portion of West Virginia law that states, "Workers who a public authority employs are hired on a regular or temporary basis are not considered to be ‘employees;'" Judge Joe Albright wrote the majority opinion was incorrect "to conclude that the Legislature didn't mean that people employed by public authorities should ever be paid the prevailing wage rate unless a completely new construction project is undertaken..." Albright went on to write that this decision may represent the "most vigorous assault on this state's Davis Bacon [wage protection] in nearly half a century." (See attached article).

While the issue dealt with prevailing wages for employees hired by the authority, an important adjunct of the case is whether the TCSWA was required to bid out the landfill work in 2003. Under the West Virginia Fairness in Competitive Bidding Act the CAWV worked to amend a few years ago, the state and its political subdivisions must put out for competitive bidding any public improvements project over $25,000. State law provides for exceptions to this requirement for work performed on construction or repair projects by regular full-time employees of the state or its subdivisions and for emergency repairs to building components and systems. The West Virginia State Building and Construction Trades Council, AFL-CIO, was an intervenor in the case and noted that the TCSWA violated the Competitive Bidding Act by not letting to contract the excavation work performed by the temporary workers, and therefore, the authority should not be allowed to escape its responsibilities under the Prevailing Wage Act.

The majority court opinion ruled that the TCSWA was not required to pay the prevailing wage to temporary workers it hired to perform excavation work on its landfill expansion project. The issue of whether the authority could hire the workers temporarily and list them as "regular full-time employees" to circumvent the competitive bidding act was not ruled upon. The court noted the case dealt with prevailing wage and the competitive bidding issue was not raised by the DOL or its hearing examiner.

The ruling notes, "Insofar as the record in this case essentially consists of the record made before the DOL's hearing examiner, it is silent as to the parties' arguments on the Competitive Bidding issue and lacks the factual evidence necessary for us to determine this issue. Moreover, because the question of TCSWA's alleged violation of the Competitive Bidding Act is being raised for the first time before this tribunal, no administrative proceedings have been had on this matter." The opinion goes on the say that "Without having first litigated this matter through the appropriate administrative channels, consideration thereof by this Court is premature."

The West Virginia Fairness in Competitive Bidding Act does not prevent any public agency from performing construction work provided it uses it regular time-employees. The act does not contemplate a public agency hire workers, put them on its payroll and then perform a construction project that could not have been done unless additional workers were hired. The association will review the current statute and determine whether amendments should be made to the act in the upcoming legislative session.

ARE YOU INVOLVED?

"It is amazing to see the strength of the CAWV and the impact a unified group can have," said outgoing CAWV President John Casto about the committees and task forces operated by the CAWV. "The time is coming for members to sign up to serve on committees," he said. Mike Griffith, the association's incoming president, is working to appoint committee chairmen. Members will soon receive committee sign up forms showing a full listing of all CAWV committees, task forces and chairmen. "2008-2009 will be a great year for the CAWV," said the incoming president. "I am excited to direct the association and its members through our committee structure."

HAPPY INDEPENDENCE DAY

In observance of Independence Day, association offices will be closed on Friday, July 4. We would like to wish everyone a safe and happy holiday weekend.

WE EXTEND OUR SYMPATHIES

We are saddened the note the passing of Jack V. Stephens, 1985 CAWV President, the first chairman of the CAWV Scholarship Foundation and current foundation board member, on June 25. He was president of Carl E. Stephens Construction Co., Parkersburg. Funeral services were held Monday in Parkersburg. The family requests donations be made to the Jack V. Stephens volleyball scholarship at the Parkersburg Community Foundation. The CAWV extends its sympathies to Jack's wife, Betty, son Scott (Phoenix Associates, Inc.) and the entire Stephens family.