1 Effort and courage are not enough without purpose and direction John F. Kennedy H2C2 & ASSOCIATES, INC. EMPLOYEE OWNER S NEWSLETTER V o l u m e 6, i s s u e 3 Q u a r t e r e n d e d D e c e m b e r 3 1, The Company Continues To Perform Complex Projects I n s i d e t h i s i s s u e : Overview 1 Committee Message 2 En Español 3 Corporate Wellness 4 Combined Projects Ownership Advantages Employee Owner Spotlight Client Appreciation Company Events W elcome to the Seventeenth addition to the Company s newsletter. The format of the newsletter is designed to inform its readers about various subjects regarding the Company, its employees and important events every quarter. As everyone knows our Company started an Employee Stock Ownership Plan ( ESOP ) in Since that time the Company has promoted to its employees the value of this ownership structure. However the Company also realizes that to many the ESOP may still be misunderstood. Therefore this section of this newsletter will be committed to help better describe and explain the benefits of the ESOP ownership. In addition, the company will attempt to communicate its purpose of the plan, with the intent of gaining widespread support of its design. The Company will also be describing its beliefs, values and actions to solicit passion about the plan and hopefully further develop a culture that supports creativity and innovation. And lastly, provide articles and examples of the impact this plan has on the performance of its members. - Rick Cleveland
2 P a g e 2 ESOP as an Additional Retirement Plan Planning for retirement is challenging in just about every aspect, from saving enough to investing well and controlling spending. The turbulence in the stock and real estate markets during the past five years has effectively forced many workers to rethink their retirement plans. A large percentage of pre-retirees have seen their nest eggs decline, and that doesn't count the drop in home values. As a result, many of those facing this dilemma have decided to keep working as a means of shoring up their retirement savings. ESOPs can also serve as additional retirement plans that can help employees build savings for their future. Employees who have both a 401(k) and an ESOP have 2.7 times the average annual contribution rate compared to someone with access to only one retirement account. ESOPs have a number of uses, making them a flexible tool for business owners looking to diversify their holdings or assist their employees with retirement savings. According to the Small Business Administration, there are more than 28 million small businesses in the United States. Amazingly, small businesses employ half the nation's private workforce and are consistently responsible for creating around 65% of net new jobs. And though retirement plans aren't high on the list of what small business typically implement in their businesses, an ESOP is designed to help individuals and their employees save for retirement. By educating the employee owners about the benefits of an ESOP as an additional retirement plan, there is the opportunity to engage employees in using their skills and knowledge to drive company performance. Without making the most of the ESOP opportunity, we all lose by limiting the greater company value and the potential for increasing employee s retirement benefits. By Rick Cleveland An Investment in knowledge pays the best interest. Benjamin Franklin
3 V o l u m e 6, i s s u e 3 P a g e 3 ESOP como un plan de Retiro Adicional La planificación de la jubilación es un reto en casi todos los aspectos, desde el ahorro suficiente para invertir bien como controlar gasto. La turbulencia en los mercados bursátiles y de bienes raíces durante los últimos cinco años ha obligado efectivamente a muchos trabajadores a repensar sus planes de jubilación. Un gran porcentaje de los pre-jubilados han visto disminuir sus huevos del nido, y eso no cuenta la caída de valor de las viviendas. Como resultado, muchos de los que enfrentan este dilema han decidido seguir trabajando como un medio para acumular sus ahorros para la jubilación. ESOP también puede servir como un plan de jubilación adicional que pueden ayudar a los empleados a construir un ahorro para su futuro. Los empleados que tienen tanto un plan 401 (k) y un ESOP tienen 2.7 veces la tasa promedio de contribución anual en comparación con alguien que tenga acceso a una sola cuenta de jubilación. ESOP tienen un número de usos, por lo que es una herramienta flexible para los empresarios que buscan diversificar sus tenencias o ayudar a sus empleados con los ahorros de jubilación. Según la Administración de Pequeños Negocios, existen más de 28 millones de pequeñas empresas en los Estados Unidos. Sorprendentemente, las pequeñas empresas emplean a la mitad de la fuerza de trabajo privada de la nación y son consistentemente responsables de crear alrededor del 65% de los nuevos puestos de trabajo. Y a pesar que los planes de retiro no son una prioridad en la lista de lo que las pequeñas empresas suelen aplicar en sus negocios, el ESOP está diseñado para ayudar a los individuos y sus empleados a ahorrar para la jubilación. Al educar a los empleados propietarios sobre los beneficios de un ESOP como un plan de jubilación adicional, existe la oportunidad de involucrar a los empleados en el uso de sus habilidades y conocimientos para impulsar el rendimiento de la empresa. Sin hacer el máximo provecho de la oportunidad de ESOP, todos perdemos, al limitar el mayor valor de la empresa y el potencial de aumento de los beneficios de jubilación de los empleados. - Rick Cleveland and Geisell Silva Grande y Bueno es raramente el mismo proceso. - Winston Churchill
4 P a g e 4 Everyday Health and Wellness H 2 C 2 & A S S O C I A T E S I N C. O W N E R S N E W S L E T T E R ESOP Communication Committee Members: Rick Cleveland Daniel Ledesma Ruben Rios Geisell Silva Mike Souza Nancy Valero By Wills Insurance Services Eat Healthy Your body needs the right vitamins, minerals and other nutrients to stay in good shape. A healthy diet means you are eating fruits, vegetables, whole grains, low-fat milk products, fish, poultry, lean meats, eggs, beans and nuts. Stay away from cholesterol-laden items, excessive sodium and added sugars. It is also important to avoid trans and saturated fats. A healthy diet can protect you from heart disease, bone loss, Type 2 diabetes, high blood pressure and some cancers, such as colorectal cancer. Making small changes in your eating habits can make a big difference in your life. Here are some tips and tools to get you started: Keep a food diary. Knowing what you eat will help you to make changes. Starting today, write down when you eat, as well as what, how much, where and how you feel when you eat (for instance: 3:30 p.m., two cookies, at work, feeling stressed). Identifying your eating habits can help you make changes. Plan ahead. If you plan your meals for the week, you can save time and money. Shop smart at the grocery store. The next time you need to go shopping, eat a snack beforehand. Always use a shopping list and choose 100 percent whole wheat or whole grain bread and crackers. Buy a variety of colorful fruits and vegetables. Read the nutrition facts label. Look at the serving size, and try to keep saturated fat, trans fat, cholesterol and sodium at 5 percent of your recommended daily value (DV) or less. Select foods that have 20 percent or more DV of fiber, iron, calcium, potassium, and vitamins A and C. Eat healthy away from home. Choose fat-free or low-fat milk, water or diet drinks. Opt for steamed, broiled or grilled dishes, and ask for your dressing or sauce to be on the side. Cook at home. This will save you a lot of money and calories! Wellness Committee Members: Nancy Valero Rick Cleveland H2C2 & Associates, Inc. has taken a leadership position in helping its employees live healthier lifestyles and has created a website in both English and Spanish, which includes information about Health News, Product Success Information, and the location to purchase additional products for you, your family and friends. Remember when purchasing additional products use the Preferred Customer Code: employee to receive a 25% discount on all products. To get to the website enter the following address: If everything is moving forward together, then success takes care of itself - Henry Ford
5 V o l u m e 6, i s s u e 3 COMBINED PROJECTS P a g e 5 The project of Google in Sunnyvale has greatly advanced since it first began in November The duration of the project before completion was about four months from the start date. This has been a project primarily led by Demo Masters, with a collaboration of Bayview Environmental. The valued contract for both has been over $2.7 million. Robbie Shaw is the assigned estimator and project manager. Through this combined project, Demo Masters and Bayview Environmental has employed over 50 employees throughout its course. Effective cooperation and determination has been achieved by the strong leadership skills of Superintendent Geronimo Valenzuela, General Foremen Jesus Espinoza, Dane Silva, and Claudio Paniagua with Demo Masters. In addition, General Foremen Jose Mercado and Jose Ponce with Bayview Environmental also contributed their strong leadership skills in this project.emo Masters and Bayview Environmental have strived to maintain exceptional performance and safety throughout this project! Daniel Ledesma Toy Drive from Christmas Party Foreman Training in January OWNERSHIP ADVANTAGES Hello fellow owners we as owners must think and act as owners. When we can all get to thinking like owners we can accomplish amazing things together. We all need to focus on what we as individuals can do to make our company s the best company out there. Clients have so many choices we must stand out and offer the best work standards, the most cost effective work and the safest work environment. We all say these things but are we all willing to do what it takes to achieve this? We all need to have the greatest pride in working toward making our company s the best in our field and I know we can when we have pride in what we do and the single-minded focus to accomplish our company goals. We need to have the safest jobsites, the safest work habits as job injuries are so very expensive and it makes it harder for us to obtain work and could even prevent us from even bidding on jobs. I look forward to working with all of you in making us the best in the business. Mike Souza
6 P a g e 6 Employee Owner Spotlight Jesus Espinoza In these 10 years that I have worked with the company, I have had many experiences, I have learned a lot, I have met many people, and I have seen the growth of the company and its changes, in my opinion they could implement more training for workers to improve their abilities at work, and thus achieve major growth for the company. I think the ESOP is a good investment and a good retirement plan for our families, I think ESOP can improve and grow even more if workers are better trained and that would increase the quality of our projects even more. I am grateful to belong to this company. En estos 10 anos que tengo trabajando con la compania, he tenido muchas experiencias, he aprendido mucho, y he conocido muchas personas, he visto el crecimiento de la compania y sus cambios, en mi opinion se podria implementar mas entrenamiento para los trabajadores para mejorar sus abilidades en el trabajo, y asi lograr major crecimiento para la compania. Pienso que el ESOP es una buena inversion y un buen plan de retiro para nuestras familias, pienso que ESOP puede mejorar y crecer aun mas si los trabajadores estan mejor entrenados y asi aumentaria la calidad de nuestros projectos. Estoy muy agradecido de pertenecer a esta compania. Client Appreciation Cathedral Hills Tony Legault was recognized by the Cathedral Hills General Contractor Herrero Boldt for a recommendation used on the Cathedral Hills project to help production and maintain Safety. Tony is being recognized by the Project Superintendent Rick Robledo at the weekly Contractor meeting. COMPANY EVENTS Bayview and Demo Masters have been working together in projects and also coming together in combined quarterly training. Both company's meet on a quarterly basis to have a training class on various topics. All of our Superintendents and foreman from both companies come in on a Saturday and go over any issues or improvements that the company wants to make. We also use the time to recognize Foreman that have been nominated by our Superintendents for having a Safe work environment and for also having Safety being first. In addition to having Foreman meetings we also have a Warehouse quarterly training. In order for our guys out in the field to have the tools and equipment to get the jobs done we have to make sure that our distribution center is working together with our Superintendents. All of the warehouse staff including a few Superintendents get together and go over our tools and equipment to make sure that we are all on the same page on what's expected out on the field. At the end of the day the time and effort that everyone puts in is for the benefit of our Employee Owners. Our goal is always to improve and become the best in our respected field of work, to become the most profitable. - Ruben Rios Jr.