Message from LeDuc & Dexter
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Summertree Development & Baker Ranch |
RESIDENTIAL |
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Over the last 20 years Bill Dick, President of Summertree Development, has built
between 700 and 800 homes in Sonoma County. Summertree Development specializes in land acquisition, development, planning, construction and home sales. Baker Ranch,
located in Petaluma, is the latest project. There are 10 homes, nine of which are between 2600 and 2700 square feet, with one home at 3400 square feet. The homes are
all sold, 4 are occupied and the remaining 6 are close to completion. An historic landmark craftsman home, the original Baker Ranch residence, will remain at the corner
of Ely and Corona Roads as part of the 5-acre project.
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Summertree Development has completed 4 homes on Hartman Lane, which are
now occupied. The foundation in the foreground will be the final home built at Baker Ranch.
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Construction will soon be completed on this luxury home and 4 others on
Emerald Court, which have all been sold at Baker Ranch in Petaluma.
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Summertree did not build a model home at Baker Ranch; instead Dick put an
air-conditioned trailer on the site and had video "virtual tours" of the homes that he could show perspective customers before the homes were built. "The virtual tours showed the
home's interiors in 3-D with voiceovers and music, my sales people said they were invaluable. I also believe that it gave the perception that we were cutting edge, I think it
inspires confidence in our customers." LeDuc & Dexter was the plumbing contractor at Baker Ranch. Bill Dick first began
working with LeDuc & Dexter in 1998 at his Berry Brook project in Santa Rosa. "There were 43 homes to build and I felt I needed a big plumbing company to handle it," recalls
Dick, "I had never worked with LeDuc & Dexter, and I had the idea that they were too expensive. What I found was a company that was very reliable and dependable. They
were good to work with in the bidding and negotiation process and they were always just a phone call away when I needed to talk to them. That's a value-added service,
LeDuc & Dexter's management and support. That's very important to me."
Getting In on the Ground Floor |
COMMERCIAL |
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After building the 20,000 square foot, two-story commercial shell at 401 Healdsburg Ave. with GCCI
, LeDuc & Dexter completed the upstairs office tenant improvements with GCCI and is still working Getting In on the Ground Floor with LeBrett Construction
to complete their last downstairs retail space. LeBrett Construction has completed most of their work for the 6 retail shops on the ground floor at 401 Healdsburg Ave.
LeDuc & Dexter are busy with the large commercial kitchen at Willy's Seafood Restaurant, their biggest tenant improvement job on the ground floor, which includes
work at Toad Hollow Tasting Room and Fido, a pet product shop.
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401 Healdsburg Ave. in Healdsburg
has offices upstairs and
6 retail shops downstairs.
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Toad Hollow Tasting Room was built
by LeBrett Construction with help from
LeDuc & Dexter.
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Next door is Willy's Seafood Restaurant
also built by LeBrett Construction.
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Inside Willy's Seafood Restaurant
LeDuc & Dexter are plumbing
the large commercial kitchen.
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The other retail shops at 410 Healdsburg Ave. include Spirits In Stone, featuring
sculptures from Zimbabwe, Dovetail, an upscale furniture store, and Pieces, an art gallery. Mike LeBrett is working with LeDuc & Dexter for the first time and says they are doing
"a nice job" for him. LeBrett has been in business as a contractor for 14 years, he has 4 employees, who perform from the framing stage to the detailed finish work. Most of his
work is in the residential sector with new construction and remodeling with about one third of his work in the commercial sector. The new construction homes LeBrett
Construction builds are in the 3300 to 4000 square foot range and most of their work has been in the Alexander Valley and the Dry Creek Valley area including a tasting room at Forchini Vineyards & Winery.
Workers' Comp's Not So Perfect Storm |
THE INDUSTRY |
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On September 12th George Peterson Insurance Agency hosted the "Workers'
Compensation Crisis in California Seminar" at the Vineyard Creek Hotel in Santa Rosa. Over 100 people from area businesses attended to hear a panel discuss the crisis and
review reasons why many refer to this situation as "The Perfect Storm". The panel was comprised of Martin Grove, District Manager of State Compensation Insurance Fund;
Tom LeDuc, President of North Coast Builders Exchange; Dick Caletti, of Standard
Structures; Jim Leddy, District Director for State Senator Wes Chesbro and Judi Joseph, District Director for Assemblyman Joe Nation.
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Tom LeDuc, NCBE President, addresses a group of business owners at a
Workers' Comp Seminar sponsored
by George Peterson Insurance.
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Even though there was half the number of disabling work injuries in 2001 as there were in 1991, Workers' Compensation rates are at a
record high average of $5.85 per $100 payroll. The construction industry has higher risks than average because of the nature of work performed. The math tells the story. If a construction
company pays $7.00 per $100 payroll in workers' compensation for 30 employees making an average yearly income of $30,000, their premium would be $63,000 for the year. That is roughly
the payroll of 2 employees for the year. Tom LeDuc shared a similar example at the seminar, when he explained to his employees, "that because of the increase of Workers'
Compensation premiums, it would be like doing the same amount of work this year with three less employees than last year to pay for the
premium increase over last year." Many California companies are paying double and triple of what they paid a few years ago and it is directly impeding economic growth and
expansion, pay raises and new jobs hiring.Martin Grove stated that, "Workers' Compensation costs in California are among the
highest in the nation, but the benefits are among the lowest." The "Perfect Storm" started in 1993 with deregulation for Workers' Compensation rates. Many Insurers
dropped their rates in hope of capturing a larger market share. Many companies became insolvent because of low reserves. State Fund survived and now insures
55-60% of the companies with employees in California, all of which are required to have Workers' Compensation. The other elements of the "Perfect Storm" are rising healthcare costs and litigation.
Grove stated that, "lawyers take 14 cents of every Workers' Comp dollar." Chiropractors get 43% of the medical costs from the system and the average number of chiropractic
visits per claim in California is 34, compared to the national average of 14. California Insurance Commissioner, John Garamendi's reform plan is keyed by a
medical fee schedule that indexes the system to 120% of Medicare fee schedules. Garamendi spoke to the North Coast Builders Exchange last month in Santa Rosa in
response to the efforts of the NCBE and Past President Jerry Minton and current President Tom LeDuc, who have met with Wes Chesbro in Sacramento in regards to Workers' Compensation issues.
Towards the end of the seminar politicos Jim Leddy and Judi Joseph urged local groups to continue with their grassroots efforts so that their concerns are heard in Sacramento.
The politicians have already received the message from the business sector and now it is time for them to take action to regulate and control the system. Workers'
Compensation was designed 90 years ago as a "no-fault safeguard" against the pitfalls of litigation and overpriced healthcare and it must be restored to its original intent. |
