Northern California Here We Come

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							     HERZOG NEWS              A Newsletter for Herzog Companies

FEBRUARY 2012                                       www.herzog.com                                                   Safety First


     Northern California –
        H e re We C o m e !
The diligence of our hard-working estimating team has paid off.         comprises the construction of two stations which were not in the
Congratulations to the estimators and marketing department on           initial proposal operating segment. It is estimated the first operating
winning two substantial contracts. The Sonoma Marin Area Rail           segment will serve more than half of the anticipated ridership from
Transit (SMART) contract was awarded to Herzog’s joint venture          the full system. Service is projected to begin in 2015. The Initial
with Stacy and Witbeck for $103.3 million. The second contract          Operating Segment will operate between Downtown Santa Rosa
awarded was with Santa Clara Valley Transportation Authority            and Downtown San Rafael, while future phases will extend the route
(VTA) for the $772.2 million Silicon Valley Berryessa Extension         north to Cloverdale in Sonoma County and South to Larkspur if and
(SVBX) design/build project where Herzog is teamed with Skanska         when funding can be secured.
and Shimmick.

                                                                        VTA SVBX: This procurement was a design/build best value bid
                                                                        that included technical scoring and pricing; our overall proposal
                                                                        score was the highest of four teams. We surpassed our competition
                                                                        in the management submittal and technical submittal which raised
                                                                        our overall score above our competitors.

                                                                        This project is a design/
                                                                        build contract for the 10.2-
                                                                        mile extension in the San
                                                                        Francisco Bay Area, Phase
                                                                        1 of a larger infrastructure
                                                                        project. This project is
                                                                        being implemented in
                                                                        collaboration with the FTA
                                                                        New Starts Program to
                                                                        construct a fully operable
                                                                        extension of the existing
                                                                        BART system with service to
                                                                        the cities of Milpitas and San
                                                                        Jose in Santa Clara County.
                                                                        This extension begins near
                                                                        the future Warm Springs
                                                                        Station in Fremont and will
                                                                        extend along the existing
                                                                        Union Pacific railroad
The SMART staff recommended to their Board to approve the               alignment through Milpitas
contract at a meeting held January 9, 2012. Groundbreaking              and ends in the Berryessa
ceremonies are scheduled for February 24th and construction is          area of north San Jose.
set to begin immediately following. The first phase of this contract
includes 37 miles of track, rehabilitation or construction of 20
bridges, initial construction for nine stations and numerous railroad
crossings from Railroad Square in Santa Rosa to the Marin Civic
Center in San Rafael. The $103.3 million SMART contract also
                HERZOG NEWS                                                                                                                                         safety first
Page 2                                                                                                                                                                                                                                                            Page 3

FEBRUARY 2012                                                                                                                                                                                                                                   FEBRUARY 2012


                 I’d like to wish everyone and their family a happy New Year and hope everyone is
                 still holding to their New Year’s resolution. A new year is the best time to complete
                                                                                                                Cell Phone Ban for Commercial Vehicle Drivers Takes Effect
                 the remaining tasks and start everything from the beginning: new visions, new
                                                                                                                  A new federal law banning the use of hand-held phones by                      truck or bus. Drivers who violate
                 resolutions, new commitments, new thinking and a new way of living.                              commercial vehicle drivers went into effect on January 3,                     the restriction will face federal civil
                                                                                                                  2012.                                                                         penalties of up to $2,750 for each
                 New visions- Let’s continue things that worked in the past and cast off those that                                                                                             offense and disqualification from
                 didn’t work.                                                                                     The new law is part of a push by federal transportation                       operating a commercial motor vehicle
                                                                                                                  officials to cut down on the number of crashes caused by                      for multiple offenses. Additionally,
                 New resolutions- This year I’d like to ask everyone to make a resolution to vote.                distracted driving, specifically those caused by drivers using                states will suspend a driver’s
                 Voting is one of the greatest rights we have in our democracy and some countries                 cell phones.                                                                  commercial driver’s license (CDL)
                 continue to fight for that right. Maybe you’re asking if your vote really counts.                                                                                              after two or more serious traffic
                 “Absolutely it counts.” It holds your local and national leaders responsible for the             The new law enacted by the Federal Motor Carrier Safety                       violations. Commercial truck and
                                                                                                                  Administration states the following:                                          bus companies who allow their drivers to use hand-held cell
                 decisions they make. It also sends a message about the issues you think are important.
                                                                                                                                                                                                phones while driving will face a maximum penalty of $11,000.
                                                                                                                  “The final rule prohibits commercial drivers from using a                     Approximately four million commercial drivers would be
                 As some of you may be following, we begin a major political cycle this year and the
Letter
                                                                                                                  hand-held mobile telephone while operating a commercial                       affected by this final rule.”             Source: AGC of Missouri
                 consequences could have a direct effect on the future of our industries. If you’re not
                 familiar with the candidates, it’s important to educate yourself. Vote in the primaries
from the         and also in the November general election. If you’re not registered to vote, visit your
                                                                                                                  HTSI Safety Achievement By Stevan McCarthy
                 State’s election office, and don’t wait. Based on your state, the cutoff date to register is
President        about a month prior to an election.                                                              Stockton, CA- In December 2011 the employees of Herzog                        The safety conscious attitudes of our employees should
                                                                                                                  Transit Services, Inc. achieved a significant milestone of                    not go without notice. I would like to take this time to
                 What does it mean for our industry? As our country’s population increases, so do                 working 5,000 days “Without a Lost Time Injury.”                              congratulate every member of our team here at HTSI
                 the demands on our local, state and federal infrastructure. Without support from                                                                                               Stockton for accumulating such an incredible milestone.
                 our elected officials, crucial funding for maintaining and upgrading our existing                Let’s put into perspective how long it takes to accumulate                    Your hard work and dedication to safety is bar none the best
                 infrastructure and building future projects will not be available, which reduces                 5,000 days:                                                                   I’ve ever been associated with. Our continued success with
                 potential contract opportunities.                                                                1. It took 1,604 days to build the Golden Gate Bridge.                        the Altamont Commuter Express depends largely on our
                                                                                                                  2. It took approximately 2,291 days to build the first                        safety record, and that means YOU!
                                                                                                                       Transcontinental Railroad.
                 Funding is not the only issue, however. Delays in permitting and regulation can
                                                                                                                  3. It took 2,536 days to build the Twin Towers.                                  Brian Schmidt, Director of the San Joaquin Regional Rail Com-
                 prevent a potential project from becoming reality. This is true on numerous
                 transportation projects around the country. It’s important to elect a candidate who                                                                                               mission – “I want to congratulate the Herzog Team on their
                                                                                                                  5,000 days =                                                                     momentous accomplishment of 5000 days ‘Without a Lost Time
                 won’t over-regulate the permitting process and who will move projects forward.                   •	  13+ years                                                                    Injury.’ This commitment to safety and performance reiterates
                                                                                                                  •	  164 months                                                                   why Herzog Transit Services, Inc. was selected for the Operations
                 New commitments- Let’s commit to safety from the moment we wake, while driving                   •	  714 weeks                                                                    and Maintenance of the ACE Service. Again, congratulations to
                 to work, while on the job and while driving home. Our goal is ZERO incidents and it              •	  120,000 hours                                                                all of you on this great achievement.”
                 begins with you.                                                                                 •	  7,200,000 minutes
                                                                                                                  •	  432,000,000 seconds
                 New thinking- If you see a way to make your job more efficient for you and your
                 team, make a recommendation to your supervisor. We generally follow traditional
                 means and methods, but don’t be afraid to think outside the box! It may make your
                 job easier.

                                                                                                                   Mike Gomez, Matt Price, Mike Hendley,     Jeff Carlvalho, Matt Pfau, Betty Price,      Matt O’Brien, Joe Davis, and         Nora Rodriguez, Aurora Rodriguez,
                 New Way of Living- Technology is all around us and the way we use it changes                              and Adam Freeman                Doug Warner, Dana Warner, John Sanchez,              Kevin Helmbold                Ryan Hammonds, Lalaine Corpuz, Lea
                 constantly. To stay better connected around the world, Herzog is expanding its means                                                                 and Steve McCarthy                                                      Corpuz (not pictured Nicole Scardino)
                 of communication through social media. You can now find us on Facebook and
                 Linkedin where updates on job offerings and brief news updates will be posted.

                 We’ll keep you posted on election information.




                                                                         Al Landes                                     Joe Washington, Aaron Aleman, and
                                                                                                                                  David Scott
                                                                                                                                                           Marc Beauchamp and
                                                                                                                                                              Gabe Chavez
                                                                                                                                                                                          Steve Turnbeaugh and
                                                                                                                                                                                                Nick Rossi
                                                                                                                                                                                                                            Mike LaRosa and
                                                                                                                                                                                                                            Miguel Tinajero
                                                                                                                                                                                                                                                      Richard Washington, Geraldo
                                                                                                                                                                                                                                                      Camargo, Cordell Meidinger,
                                                                                                                                                                                                                                                      Marko Villarreal, Tom Cheas,
                                                                                                                                                                                                                                                           and Justin Drulius
                                            HERZOG NEWS                                                                                                                                                safety first
         Page 4                                                                                                                                                                                                                                                                         Page 5

         FEBRUARY 2012                                                                                                                                                                                                                                                   FEBRUARY 2012


                                                                                      Los Angeles, CA-
                                                                                      The HTSI team
                                                                                      managing the
                                                                                      Port of LA Red
                                                                                      Car has celebrated
                                                                                      2,666 days injury free
                                                                                      as of February 2012.
                                                                                                                                                                         Banish Back Pain
                                                                                                                                                           Feeling pain or soreness in your back? These tips can              •	 Strive to reduce your stress level.
                                                                                                                 The Frontrunner South project in          help you reduce pain and prevent it in the future:                    Stress can increase tension in
                                                                                                                 Salt Lake City, UT received a                                                                                   your body and cause back pain.
                                                                                                                 partnering award from AGC of Utah.        •	 When lifting, bend your knees, not your waist.
                         Above are three recent awards received by                                                                                                                                                            •	 Always warm up before doing
                                Herzog Technologies, Inc.                                                                                                  •	 Invest in a good mattress- it can make a world of                  physical activity.
                                                                                                                                                              difference in your pain level and your sleep quality.
                                                                                                                                                                                                                                              Source: PowerGroup Companies

                     We are pleased to recommend Herzog for any transit project needs. LIVESTRONG was fortunate to have had Chad Davis                     •	 Sit up straight! Good posture reduces the strain on
Awards and Praises




                     (Project Manager, Austin) and the team from Herzog in support of our efforts during a collaboration with internationally                 your back.
                     renowned artist, Mister Cartoon.

                     Mister Cartoon created a mural on the external wall of our LIVESTRONG                                                                 Eating Out? You Can Still Eat Healthy
                     Headquarters in East Austin. The wall lies precariously close to an existing railway
                     line. As the artist and his team created the mural over several days, the Herzog staff                                                Hectic schedules mean convenience often trumps nutrition              of beef, substitute a side salad
                     contributed their time and resources in a variety of ways. Chad and his team were an                                                  when it comes to meals. If you choose wisely, however,                for fries, or ask for vegetables
                     integral asset to the success of the LIVESTRONG mural.                                                                                eating out doesn’t have to bust your diet. Whether                    instead of potatoes. Opt for
                                                                                                                                                           you’re grabbing fast food or sitting down at a restaurant,            whole wheat bread or pasta.
                     The entire team from Herzog proved to be professional and diligent. The safety of the                                                 remember these tips:                                               •	 Split a dinner portion with
                     artists and community at large was their utmost concern. They eagerly supported us                                                    •	 Choose water to instead of soda, juice or alcohol.                 someone or ask the server to
                     in our efforts to bring a group of local high school students to contribute to the mural,
                                                                                                                                                           •	 Order your food without dressing or sauces, such as                wrap up half your meal right
                     and allowed us to host our most significant donors in a ribbon cutting ceremony upon
                     completion.                                                                                                                               mayo, cheese and sour cream, or ask for the dressing on           away so you aren’t tempted
                                                                                                                                                               the side and use just a little.                                   to consume the giant portion
                     We are grateful for Herzog’s generosity and leadership. They proved to be stalwart                                                    •	 Watch out for words like deep-fried, pan-fried, batter-            served to you.
                     supporters of LIVESTRONG, the fight against cancer and the Austin community. We                                                           dipped, breaded, creamy, crispy and au gratin; these           •	 Don’t add salt, restaurant
                     recommend them to you without reservation.                                                                                                dishes tend to have more calories.                                food tends to already be high in sodium, especially fast
                                                                                                                                                           •	 Choose leaner meats such as chicken or turkey instead              food.
                     Renee Nicholas                                                                                                                                                                                                                                    Source: PowerGroup Companies
                     Director of Corporate Relations
                     LIVESTRONG
                                                                                                                                                      HERZOG’S BIGGEST LOSERS
                                                                                                                                                      St. Joseph, MO- In the last newsletter, we featured the biggest losers from the
                                                                                                                                                      10-week KC Slimdown Challenge and how they were able to turn around their
                                                                                                                                                      eating habits for the better. We did not have photos of the “losers” by the time
                                                                                                                                                      the newsletter went to print, but we do now!
                                                                                                                                                      Just to recap, the winning team, Small Fries,
                                                                                                                                                      was from the Easton Road Railcar shop and
                                                                                                                                                      consisted of Rob McIlquham (left, pictured
                                                                                                                                                      holding his trophy while shaking hands with
                                                                                                                                                      Plant Manager Dave Tate) and Betty Ray (center,
                                                             Denver, CO- The Denver Transit Construction Group Track                                  with President Al Landes). Al Landes also
                                                             Crew received the Quality Award for 2011.                                                presented Vickey Pettit (right) with a trophy for
                                                                                                                                                      being the top female loser.
                               HERZOG NEWS                                                                                                                                        safety first
Page 6                                                                                                                                                                                                                                                            Page 7

FEBRUARY 2012                                                                                                                                                                                                                                      FEBRUARY 2012


Children’s Health: Influenza                                                                                                            Making Your Lifestyle Heart-Healthy
Children are at higher risk                                                                                                                                                                            Stop smoking
                                      Seasonal influenza          doctor, and watch your infant carefully for fever or respiratory
                                      can cause serious           symptoms.                                                                                                                            Smoking is a major risk factor for heart disease.
                                      complications for                                                                                                                                                To live smoke free:
                                      persons of any age,         Vaccinating Your Children                                                                                                            •	 Decide to quit and set a quit date.
                                      but children are more       You should vaccinate your children as soon as the vaccine                                                                            •	 Try again if you fail - successful quitters have “quit” an
                                      vulnerable. Each year       becomes available each year, usually in the early fall. It takes                                                                         average of nine times.
                                      about 20,000 children       about two weeks for the vaccine to completely protect the                                                                            •	 Ask your doctor for information about cessation
                                      under age five are          body, so the sooner people receive the vaccine, the better.                                                                              aids, such as a patch, inhaler and counseling/support
                                      hospitalized because                                                                                                                                                 program.
                                      of flu complications,       If your child is between six months and eight years of age and
                                      according to the Centers    did not receive the flu vaccine last year, he or she needs two                                                                       Learn to relax
                                      for Disease Control and     doses of this year’s vaccine. Without two doses, these children       Eat a healthful diet
                                      Prevention (CDC).           may have reduced or even no protection against the flu. The                                                                          Chronic anger and stress can damage your heart.
                                                                  first dose should be given as soon as the vaccine becomes             Eating a healthy diet has been proven to reduce the risk for
Risks                                                             available, and the second dose 28 days later. Don’t forget to         heart disease.                                                 To better cope with life’s pressures:
Children often need medical care because of influenza,            follow up for that second dose                                                                                                       •	 Try to be positive instead of negative in your outlook
particularly those under age five. Even children in this age                                                                            To eat a heart-healthy diet:                                      on life.
group who are healthy are at higher risk of complications due                                            Source: PowerGroup Companies                                                                  •	 Take 15 to 20 minutes a day to sit quietly and breathe
                                                                                                                                        •	 Eat two cups fresh fruits and 2.5 cups vegetables every
to their age.                                                                                                                               day.                                                          deeply.
                                                                                                                                        •	 Limit saturated and trans fats by using olive oil or        •	 Take time for yourself each day. Read a book, listen to
Severe flu complications are most common in children under                                                                                  other vegetable oils instead of butter or margarine.          music or enjoy a hobby.
two years old. In addition, children with chronic health                                                                                •	 Eat more chicken and fish in place of red meat.
problems such as asthma and diabetes are most susceptible to                                                                            •	 Eat six ounces of grains, of which at least three ounces    Monitor your health
serious flu complications.                                          Did You Know...?                                                        should be from whole-grain bread and cereal.               Be proactive when it comes to your heart’s health. To do
                                                                    Children die each year in the United States from flu                •	 Limit or eliminate fast foods, which are often loaded       so, work with your health care provider to reduce your
Prevention                                                          complications, most commonly younger children or those                  with salt, sugar and fats.                                 heart disease risk by following up with him or her for
The best way to prevent your child from getting the flu is for      with other health conditions. However, even healthy                 •	 If you drink alcohol, do so moderately, no more             treatment for high blood pressure and cholesterol levels.
all children to get a seasonal flu vaccine each year. The CDC       children can get extremely sick and even die from                       than two drinks a day if you’re a man, one if you’re a
recommends that everyone over the age of six months receive         seasonal influenza.                                                     woman.                                                     “Denial is the number one risk factor for having a heart
an annual vaccine.                                                                                                                      •	 Limit your salt/sodium to 2300 mg per day.                  attack,” says Dr. Stein. “Call 911 immediately if you have
                                                                                                                                        •	 Consume the equivalent of three cups of fat free or         chest pain if you’re a man, or are short of breath, dizzy
In addition, it is highly recommended that certain groups                                                                                                                                              and have a burning sensation in the chest area if you’re a
                                                                                                                                            low-fat milk and other dairy products.
always receive the vaccine, including people who work with,                                                                                                                                            woman. If you can get to a hospital in the same hour these
care for or live with young children.
                                                                                                                                        Exercise more                                                  symptoms start, it’s possible to prevent a heart attack or
                                                                                                                                                                                                       limit the damage.”
Also teach your children other prevention techniques
                                                                                                                                        Regular exercise keeps your heart and the rest of your
(and practice them yourself!), such as washing your hands                                                                                                                                                                         Source: New Directions Behavioral Health
                                                                                                                                        body in shape.
frequently, staying home if you get sick, staying away from
sick people, and covering nose and mouth with a tissue when
                                                                                                                                        To add more activity to your life:
coughing or sneezing.
                                                                                                                                        •	 Check with your doctor before starting an exercise
                                                                                                                                           program if you’ve been sedentary and/or have a
Children under the age of six months have the highest risk
for serious flu complications, but the vaccine is not approved                                                                             chronic disease.
for children of this age. The best way to protect these infants                                                                         •	 Start slowly and increase your activity gradually to a
is to ensure all members of the household and caregivers                                                                                   total of 30 to 60 minutes of moderate exercise most
are vaccinated. If someone in the house gets sick, minimize                                                                                days of the week.
contact between the sick person and the infant, alert your                                                                              •	 Do weight training and stretching exercises several
                                                                                                                                           times a week.
                                HERZOG NEWS                                                                                                                                     safety first
Page 8                                                                                                                                                                                                                                                                   Page 9




Bike Lockers Installed at Sandia and
FEBRUARY 2012                                                                                                                                                                                                                                             FEBRUARY 2012




South Capitol Stations
                                                                                                                                  Preparing for Railway Disaster By Lance Davis
                                                                                                                                  Albuquerque, NM- The Rail Runner Express, along with about 100 responders, took part in a mock railway disaster on
                                                                                                                                  November 6, 2011. Emergency preparedness for commuter railway injuries, bomb detonation and even a SWAT standoff
                                                                                                                                  were practiced. Local law enforcement and emergency responders were given the opportunity to explore all the equipment
Albuquerque, NM- Cyclists can now secure their bicycles and biking gear at the Sandia
                                                                                                                                  and ask questions to provide quicker and more efficient assistance. Events like this help prepare everyone involved for real-
and South Capitol Rail Runner Express Stations. These all-weather storage spaces are ideal
                                                                                                                                  life emergencies and avoid costly mistakes. Safety doesn’t happen by accident!
for getting to the train and ensure a convenient location to leave your bike. Reservations can
be made in six-month increments for just $25 plus a refundable one-time $50 key deposit.
There are now 116 bike lockers along the entire corridor with one exception of the Santa Fe
Depot.



                                                                  “Jerry is a shining example of how commuters in our region
                                                                  can save money and help our environment by using public
                                                                  transportation,” said Dewey Cave, Executive Director of          Volunteers staged as injured    Pictured left to right- Matthew Alonzo,        Pictured left to right- Drake Davis, Shane McGregor, Larry Anaya,
                                                                  the Mid-Region Council of Governments – the agency                       passengers                   Sandra Lee, and Travis Atwell             Gilbert Melgarejo, Dennis Mustoe, Anthony Ruiz, and Lance Davis
                                                                  that operates the Rail Runner. “He is just one of many New
                                                                  Mexicans who has realized the convenience and economic

                                                                                                                                  New DCTA A-train O&M Facility Up & Running
                                                                  benefits of the Rail Runner.”

Albuquerque, NM- Prior to the departure of the 4:30 PM            The Rail Runner, which has become the fastest start-up of
southbound train on October 25, 2011, at the Downtown             a commuter rail train in the country in the past 20 years,      By Kimberly Durnan
Albuquerque Station, Los Lunas resident and loyal commuter        currently carries a daily average of approximately 4,000
Jerry Martinez became the five millionth passenger to ride the    commuters between the city of Santa Fe and the city of Belen.   Lewisville, TX- The Operations and Maintenance Facility for                Herzog Transit Services, Inc. is DCTA’s operations and
New Mexico Rail Runner Express!                                                                                                   the DCTA project officially opened last month providing a hub              maintenance contractor and will maintain offices in the new
                                                                  For the distinction of five millionth passenger, Martinez was   not only for operations and maintenance of the A-train, but a              building at the facility.
“I’ve been riding the Rail Runner ever since it started,” said    rewarded with a goody bag of Rail Runner items, including       regional dispatch center to serve as backup to the Trinity Railway
Martinez. “I save money, I save time, and I get to work a lot     a pass to ride the train free for one year, an official Five    Express, a Texas line that connects Dallas to Fort Worth.                  The opening of the $20 million facility concluded the A-train
less stressed after riding the train. I love it!”                 Millionth Passenger Certificate and an additional gift bag                                                                                 construction project which had also called for the construction
                                                                  donated by Costco.                                              The approximately 40,000 square foot workshop is designed to               of a 21-mile passenger rail corridor and five stations.
The 52-year-old University of New Mexico maintenance                                                                              provide the necessary space and equipment to clean the interior
worker says he boards the train at the Los Lunas Rail                                                                             and exterior of passenger rail cars, make repairs and change-out           The O&M facility also consists of:
Runner Station every weekday and rides it into Downtown                                                                           components.
Albuquerque where he catches a bus to his job each day at                                                                                                                                                    •	    An office area with work space for dispatch and
UNM.                                                                                                                              The facility has two 150-foot maintenance pits with exhaust                      communications, locker-rooms, a breakroom, training
                                                                                                                                  ventilation, an inspection mezzanine, two overhead cranes, a jib                 rooms, conference rooms as well as staff and owner offices.
                                                                                                                                  crane and a train turntable. The facility also includes a 212-foot         •	    60,000 square feet of fenced storage for vehicle parts and
Albuquerque, NM- In surveys conducted, hundreds of our passengers said                                                            drive-through trainwash with a water reclaim system.                             maintenance-of-way materials and equipment.
they would use the Quiet Car if it were implemented. On Tuesday, January
                                                                                                                                  The onsite fueling station touts a 16,000-gallon underground               •	    A storage building with forklift access.
3, 2012, the New Mexico Rail Runner Express began the Quiet Car pilot
program. The Quiet Car will run for 90 days during which time we’ll be                                                            storage tank and covered fueling area with a 142-foot canopy.              •	    Hazardous material storage facilities.
surveying riders to see what they think of the experience. If feedback is                                                         Yard tracks include three storage tracks, two shop tracks, one
                                                                                                                                                                                                             •	    Landscaped screening berm.
                                                                                                                                  fueling and wash track and one run-around track capable of
good, we’ll consider permanently implementing it later in the spring.                                                                                                                                        •	    4,000 feet of concrete-lined drainage channels.
                                                                                                                                  containing up to 25 vehicles at a time.
                                                                                                                                                                                                             •	    164 stalls for parking, a half-mile access drive and fire lane.
The New Mexico Rail Runner Express offers Quiet Cars on many corridor trains, providing a peaceful, quiet atmosphere for
passengers who want to work or rest without distraction.
Quiet Car Commute Etiquette:
•	 Refrain from cell phone use.
•	 Disable sound feature on mobile devices and laptops.
•	 Conduct conversations in subdued voices.
•	 Maintain low headphone volume to avoid distracting other passengers.
                               HERZOG NEWS                                                                                                                                            safety first
Page 10                                                                                                                                                                                                                                                            Page 11

FEBRUARY 2012                                                                                                                                                                                                                                         FEBRUARY 2012

Rail Testing Awarded Five-Year Agreement                                                                       By Troy Elbert
                                                                                                                                         New Training Facility in Canada                                                      By Gordon Morales

                                                                                                                                         Toronto, Canada- Local 183 Union is setting up a facility to train their team in
St. Joseph, MO- Herzog Services, Inc., rail flaw detection,       and operators to Canada, which presented both a logistical             railroad construction. This Union has asked Herzog to assist in creating the training
was recently awarded a five-year testing agreement with the       and process challenge. Without the hard work of our staff,             program. I attended a meeting and checked out the facility on January 17, 2012.
Canadian Pacific Railroad (CPRR) to perform the majority of       both HSI and HRSI of Canada, and the attention to detail, we           After reviewing the facility’s amenities and current training materials, I will send
their rail testing. This is a milestone in our testing program    would not have been able to accomplish such a difficult task           them suggestions in addition to new safety training materials. Once I am settled in
as we are now the majority testing agent on a third Class         without a hitch.                                                       Toronto, I will volunteer my spare time to assist with their training program.
1 railroad. In the winter, the number of cars testing on
Canadian Pacific can be as high as 14, summer frequencies         The total number of HSI daily revenue trucks during this
drop the number between six and eight. The higher number          winter’s peak season is 56 as compared to 38 during the
of required cars during the winter months stems primarily         respective quarter of 2011. Of the 56 units currently testing,
from the fact that rail is more prone to breakage due to          19 units are performing defect detection in Canada on both
colder temperatures, which makes the steel more brittle.
The colder temperatures also cause the rail to shrink, which
                                                                  Canadian Pacific and Canadian National railways. In the
                                                                  United States, the bulk of the vehicles performing inspections         Working in Paradise                                   By Anya Pratt
can place the rail in tension and more prone to premature         are currently working on Burlington Northern Santa Fe,                 Providenciales, Turks & Caicos Islands- This past November             aware of when she departed
failure. The CPRR contract started with a kick-off meeting in     including three portable units to perform inspections on               marks the end of the hurricane season in the islands. It was an        but for some strange reason
Calgary for Canadian operators with a subsequent meeting in       inventory rail and crossovers.                                         active season for Herzog Caribbean Ltd.                                the clouds and sky had cleared
Minneapolis for operators working in the United States.                                                                                                                                                         up. These guests didn’t cause
                                                                                                                                         The first hurricane for the season to stop by and pay us a visit was   much damage to the island or
                                                                  HSI was awarded a one-year contract for a minimum of three
                                                                                                                                         Hurrican Irene. She appeared to be staying for a few hours but         our office. However, we did
The purpose of the kick-off meetings was to bring all             test trucks for the first time on the Union Pacific Railroad           stayed longer than expected. She brought with her much rain and
operators up to speed on the particular requirements while        (UPRR) effective October 1, 2011. At present we have five test                                                                                have a few inches of rain and
                                                                                                                                         debris; I must say she was a messy guest! After her departure, the     puddles, which were needed
working on CPRR properties, such as reporting and safety          units on the UPRR with negotiations in progress to expand              island went back to its normalcy as we proceeded with our daily        after a sunny and humid
issues - which included avalanche training! Prior to the start    the number of vehicles as well as extending the contract to a          routines after cleaning up the debris. Days later I received news      summer. Cool sunsets and
date, it was necessary to mobilize the fleet of test vehicles     multi-year service.                                                    that Irene had made a pit stop in New York and North Carolina;         warm sunrises grace us year-
                                                                                                                                         she was sure to gain fame with her strong winds and showers. All       round along with tranquil turquoise waters and light rainfall.
                                                                                                                                         the best in the Tar City and Broadway, Irene!                          One must say it is great to work in paradise, despite the few
                                                                                                                                                                                                                unexpected caustic guests known as hurricanes, of course.
                                                                                                                                         Our second visitor came for a short period of time, her name was
                                                                                                                                         Katia and she was calm, cool and collected. We were never really
Enhancing Customer Productivity
Begins with Enhancing Equipment                                                                                                          MOTORSPORTS MOMENTS
                                                                                                                                         Since 2004, Herzog Contracting Corp. has been a valued part of Pedregon Racing. For the
St. Joseph, MO- For Herzog Railroad Services, Inc., enhancing customer
productivity begins with enhancing its equipment. One example is                                                                         2012 NHRA Full Throttle racing season, that partnership will continue as Herzog will be
HRSI’s hi-rail ballast profiling vehicle with Light Detection and Ranging                                                                an associate sponsor on Cruz Pedregon’s Snap-on Tools Toyota Camry and Tony Pedregon’s
(LIDAR) equipment. Nathan Landes, Project Manager-Research and                                                                           Funny Car.
Development at HRSI, notes the ProScan LIDAR truck’s military-grade
                                                                                                                                         “Our partnership with Herzog has always been an important part of our program,” says Tony
GNSS Inertial system and LIDAR scanners give Herzog a more accurate                                                                      Pedregon, a 43-time winner in the Funny Car division. “Our personal friendship has also
evaluation of a ballast profile. Landes says the ProScan LIDAR offers                                                                    developed over the years with the many Herzog customers and guests that come to the track.”
railroads a mobile solution to ensure the correct amount of ballast is
                                                                          HRSI Automated Tie Down Car utilizes spring-loaded,
placed where it is needed, when it is needed.                                                                                            “Herzog is once again looking forward to leveraging the NHRA brand of excitement to our
                                                                             hydraulics actuated clamp assemblies to hold ribbons of
                                                                                                                                         customer base and employees,” said Stan Herzog, CEO of Herzog Contracting Corp. “Tony
                                                                             rail in place. When the rail is ready to be unloaded, the
HRSI is also working on the Automated Tie Down Car, which utilizes                                                                       and Cruz professionally represent NHRA and Herzog, at a level of integrity and sportsmanship we are proud to be associated
                                                                             Rail Train Operator Tony Shirk uses a transmitter to
spring-loaded, hydraulically actuated clamp assemblies to hold ribbons                                                                   with and put our name on the equipment.”
                                                                             initiate unloading.
of rail in place. When the rail is ready to be unloaded, the rail train
operator uses a transmitter to initiate unloading. The Tie Down Car                                                                      “It’s an honor to bring back Herzog for a seventh season. Stan Herzog has shown incredible support that has allowed us to do
                                                                                                                                         many things which have led to championships for both myself and Tony,” stated two-time Funny Car champion Cruz Pedregon.
eliminates the need for workers to be on top of the car loosening bolts, which HRSI says results in improved safety, time
                                                                                                                                         “Their contractors and customers throughout the country have come out to the track to support us and the NHRA. Stan’s
savings, enhanced efficiency and cost-effectiveness. The Tie Down Car is completed and will be in the field for tests in the             friendship means a lot and we’re hoping to pay him back by winning another championship in 2012.”
near future.
                                                                                                                                                                                                                                                      Source: www.go2geiger.com
                                                                                         Source: Railway Age Magazine, December 2011
                               HERZOG NEWS                                                                                                                                                  safety first
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FEBRUARY 2012                                                                                                                                                                                                                                                        FEBRUARY 2012


More Faces of Caltrain                                                                                                                 What’s Going on in Austin?
San Jose, CA- As the TransitAmerica Services, Inc. Caltrain        and Stephen J. Gould. As for favorite movies, he says there are
                                                                                                                                       Structures Team Making Bridges Look Good!                                                             By Danny Bailey

project gets underway, we are featuring more of the new            too many to list, but his favorite foods are spaghetti, Chinese     Austin, TX- Herzog Contracting Corp. structures team                         performance. On behalf of
personnel who make this project a success. Read about more         and Japanese food.                                                  began a new bridge reconstruction maintenance program on                     Project Manager Chad Davis
of the team below:                                                                                                                     June 1, 2011, with outstanding success at CMTA. The goal                     and Deputy Project Manager/
                                                                                         Dewayne Quock is the Manager of               is to rebuild 60 bridges by December 2014. These bridges                     Structures Manager Danny
                     Jack Mohalley is the Deputy Project                                 Employee Development and Benefits             range from poor to critical condition in accordance to                       Bailey, thank you for a job
                     Manager Finance and Administration                                  on the project. He provides support,          Bridge Management Program, CFR 49, Part 237. Currently,                      well done!
                     on this project. He is responsible for all                          counsel, guidance and information to the      15 bridges have been completed with heavy maintenance
                     financial and administrative duties. Prior                          employees. He has been married to his         construction renovations ensuring our customers are pleased                  Pictured right is a before-and-after
                                                                                                                                                                                                                    shot of a bridge that was recently
                     to this new position he was a controller at                         wife Lisa for 29 years. She is a Jazzercise   with Herzog performance and attention to detail. Thank you
                                                                                                                                                                                                                    completed.
                     MV Transportation and was involved in                               instructor who is also in charge of           to the structures team and particularly Mr. Manuel Torres,
                     the mobilization and startup operations                             monitoring other instructors to evaluate      Structures Foreman, for great leadership and outstanding
                     of a takeover contract in Vancouver, BC       the performance of their class instruction. Lisa is working
with more than 500 staff. Jack spent 20 years working in the       toward her Personal Trainer’s certificate at the California State
Middle East as the finance officer for various organizations.      University East Bay. They have two children, Kyle (20) and
He has three CPA certificates and a BA in Economics. Jack          Kayla (19), and both of their children were homeschooled
and his wife Carol have been married for 37 years. Together        through all of their primary education. Kyle is a junior at the
they raise guide dog puppies. He enjoys marathon running,          University of California, Santa Cruz and Kayla is also a junior
scuba diving, photography and spending time with his guide         at the University of California, Berkeley. Dewayne and his
dog puppy, Jennifer.                                               family enjoy outdoor activities, skiing, backpacking, hiking
                                                                   and fishing. Dewayne has been newly promoted to “empty
                    Jim McMullen became a part of the              nester” status and is being careful with what kind of trouble
                    Herzog team in January 2012 as the             he and his wife can get into.
                    Deputy General Manager, Maintenance
                    of Equipment for the project. Jim is                                     Doug Honn, Deputy General
                    responsible for the maintenance of the                                   Manager, is responsible for the
                    coaches and locomotives. Jim’s wife                                      oversight of operations and
                    Nancy is a nurse who does long term                                      the safety and maintenance of
                    assessments. Together they have four                                     equipment. He is engaged to be
                    children and seven grandchildren.                                        married and has one son, Michael,         Pictured left to right, top to bottom- Structures Team: Bobby Barry, Bridge Inspector; James Bailey, Driver /Operator; Manuel Torres, Foreman; Douglas Davidson,
                                                                                             who is the department manager             Laborer; Homero Medina, Assistant Foreman; Raul Medina, Laborer; Jose Perez, Laborer; Danny Bailey, DPM/Structures Manager. * Track Crew: Jaime Irizarry,
                     Randy Johnese is the Labor Relations                                    at Lowe’s. Doug’s hobbies include         Assistant Welder; Gregg Moister, Driver; Jose Martinez, Laborer; Jesus Martinez, Sr., Assistant Foreman; Alva Madden, Superintendent; Hector Valenzuela, Foreman;
                                                                                                                                       Meliton Cigales, Welder; Marcus Zambrano, Laborer; Chad Davis, Project Manager * Jason Koble, Track Inspector * Efrain Bedolla, Rutilo Hernandez and Elias
                     Officer on the project. His duties will                                 sailing and motorcycling. He has          Hernandez * Chad Davis, Project Manager; Diana Mead, Office Manager; Danny Bailey, Deputy Project Manager/Structures Manager * James Auman, EIC * James
                     include management to enforce labor                                     five Ragdoll cats named Bosley,           Lee and Alberto Martinez, EIC * Ty Barth, Track Inspector * Steven “Nick” Nichols, Master Mechanic
                     agreements and work rules, as well as                                   Sparkey, Jasmine, Arial and Pearl.
                     resolving labor disputes. He is married                                 His favorite books are anything
                     to Frances Louise Lewis-Johnese who                                     from Clive Cussler, his favorite          Track Crew Provides Outstanding Service!                                                         By Danny Bailey
                     is retired from the Santa Clara County                                  movie is “Avatar”, and favorite food
                                                                                                                                       Austin, TX- At Capital Metropolitan Transportation                              Foreman; J. Martinez ”Senior”, Assistant Foreman; Ty Barth,
                     Social Services Agency where she was in                                 is anything Italian, especially since
                                                                                                                                       Authority, HCC track crews have done a phenomenal job                           Track Inspector; and Jason Koble, Track Inspector. These
                     charge of the Adoption Programs. Randy                                  his fiancee is Italian. One of Doug’s
                                                                                                                                       improving corridor infrastructures by providing outstanding                     individuals and the entire track team have committed 100% of
also has two step-children--Christine Munroe, a Contract                                     dislikes is anyone who drives faster
                                                                                                                                       performance and results for our customer. Currently, there is                   their time to make this property a success.
Specialist for NASA, and Vincent Munroe, a manager for                                       or slower than he does. A little tidbit
                                                                                                                                       one major Joint Elimination Project on the West Subdivision
an online pharmaceutical company--and a grandson, Kevin                                      that some may not know about
                                                                                                                                       that includes cutting and sliding six hole joints and removing
James, who is a recent college graduate now working for a                                    Doug is he served 3.5 tours of duty                                                                                             Great job! The track and structures crews celebrated
                                                                                                                                       and welding over 700 joints by December 2012. Thank you to
software company in San Francisco. Randy enjoys reading,           in Vietnam with the United States Navy and he has 37 years of                                                                                             one year injury free in December 2011 and are
                                                                                                                                       the following individuals for great leadership at our company:
golf, travel and website design and has traveled to every          experience in the railroad industry.                                                                                                                      currently at 418 days without an injury.
                                                                                                                                       Alva Madden, Superintendent; Hector Valenzuela, Track
continent except Africa. His favorite books are “The Lord of
the Rings”, everything by Raymond Chandler, John LeCarre
                              HERZOG NEWS                                                                                                                                         safety first
Page 14                                                                                                                                                                                                                                                       Page 15

FEBRUARY 2012                                                                                                                                                                                                                                     FEBRUARY 2012

                                                                                                                                    Once Upon a Cold and Rainy Day in December.. It’s Auction Time!

 Hafa Adai! What’s up from Guam by Kenney Newville

                                                                                                                                   Elwood, KS- It was a cold and rainy day in Elwood, perfect weather for the 27th annual Herzog Auction. The auction took
                                                                                                                                   place December 3rd. The annual auction was created by Bill Herzog as a way to sell employees surplus company assets. This
                                                                                                                                   year there were quite a few consignment items from all Herzog companies, the North Texas Rail Group JV and employee
                                                                                                                                   consignment.

                                                                                                                                   Because it poured rain all day, things were done a little differently this year and the auction was moved inside the shop. A
                                                                                                                                   big screen and projector were used to show the lot items for sale and the vehicles were driven through one by one and sold.
                                                                                                                                   Ponchos were handed out to allow bidders to take a closer look at the lot items outside. There were 410 lots and 463 bidders
                                                                                                                                   from six states, of which 17 registered bidders were dealers. The sale lasted from 9:00 AM until 4:00 PM. With the help of
                                                                                                                                   auction clerks, Jeff Schaeffer, Kim Buczek, Blanca Taylor, Rayanne Robertson, and Linda Barton, coordinators/setup Dan
                                                                                                                                   Samford and Deric Berry, and auctioneer Jim Barnett, this was the highest grossing auction in Herzog history. There was
                                                                                                                                   almost $1,000,000 of surplus sold.
 Village of Inarajan, Guam- October 14, 2011 marked the          of the system was excellent for the application and will
                                                                 continue to be. Bottom line, make sure you have good              Concessions were made available by the St. Joseph Christian school football team. They kept everyone full of hot dogs and
 completion of the installation of a survey grade GPS base
 station and rover that will minimize the need for outside       control before setting up a GPS.                                  soda. This was Arnie Longoria’s first official year to prepare the sale in the Elwood shop. Great job everyone and hope to see
 surveying services at the facility. The Trimble Trimmark 3                                                                        you next year!
 base station and TSC2 rover/controller was purchased as         Guam is the largest and southernmost island in the
 surplus equipment following the conclusion of the DART
 3 project in which Herzog Contracting Corp. was a joint
                                                                 Mariana Islands archipelago. It is located about three
                                                                 quarters of the way from Hawaii to the Philippines, is about
                                                                                                                                    What’s In A Complaint? By Patricia Bagby
 venture partner. The system will allow automated updating       three times the size of Washington, DC and is home to                                         People spend lots of time                   It is important to pay attention to complaints because they
 of the daily progress across the fill face and the ability to   approximately 175,000 people. It gets its slogan “Where                                       complaining. We all complain,               contain a seed of passion! For every statement of what a person
 track fill volumes at various times. Off-site personnel can     America’s Day Begins” from the fact that it is 15 hours                                       no matter what our position. No             can’t stand, there is an underlying reason or statement about
 create short and long term fill projection models that can be   ahead of CST and it has been a territory of the United                                        matter what the particular content          what they stand for. People do not complain about what they
 uploaded to the controller remotely to assist in an efficient   States since it was ceded by the Spanish in 1898. The                                         of complaints, it turns out that most       do not care about. There is energy, commitment, and there is
 and orderly fill progression. As future cells are designed,     temperature averages 85 degrees Fahrenheit. It rarely falls                                   of us have an experience at work            passion.
 these models will be uploaded into the controller which         below 70 degrees or rises above 90 degrees, which makes                                       we perceive as obstructing our well
 will allow the location and grades to be constructed in the     many outdoor activities a favorite past time. The Layon                                       being. The objects of annoyance may         The next time you have a complaint, ask yourself: what
 field. Other improvements such as roads, drawing swales         Landfill is situated on a particularly beautiful portion of the                               vary, but griping is always in season at    commitments or convictions do you hold that are implied
 and barrow pits will be staked out and constructed in the       Southeast part of the island with panoramic views of the                                      work. Sometimes the complaints are          in your complaint? What value do you hold that is not being
 same manner.                                                    Pacific Ocean. Herzog Environmental is hard at work to do                                     made with head shaking amusement,           honored? What commitments do you have that is not fully
                                                                 our part in keeping this island paradise beautiful.                sometimes with resentment. They are made by people who love            recognized in the situation? What am I doing or not doing that
 The system was based on a Guam Geodetic Network                                                                                    their jobs and by people who hate their jobs; by those who are         prevents my commitment from being recognized?
 (GGN)1993 monument just outside of the NASA tracking            Pictured above from left to right: Frank Kochevar setting up       good at their jobs and not so good, as well as new at work or
 station’s front gate which is under a mile from the landfill    the GPS network * The front of the administrative building         near retirement. Criticisms are levied at bosses, subordinates,        If someone comes to you with a complaint, acknowledge the
                                                                                                                                    peers, “them,” “they,” and occasionally at oneself. No matter how      person’s complaint by actively listening and empathizing with
 property, we call this point NASA. When setting up a            * Layon employees Ryan Cruz, Lee Charfarous, Norm
                                                                                                                                    sophisticated, a complaint is unpleasant to listen to. At its worst,   them in order to help them accept the situation. If you feel
 survey grade GPS it is imperative to have a good selection      Kivett, Zach Ibanez, Kenney Newville, Ben Taisacan, Jackie
                                                                                                                                    it poisons relationships and sabotages team efforts.                   comfortable enough, try to explore solutions using positive
 of accurate control surrounding the site – seven to ten         Myers, and Billy Myers (not pictured Tona Pangelinan,
                                                                                                                                                                                                           energies and problem-solving methods.
 precise monuments are preferred. Three points are the           Ryan Atoigue, Keither Teraje, and Keoni Blas) * Norm’s             To be fair, I have to acknowledge that complaining may help
 absolute minimum but do not allow for checking, nor a           new superintendent, the blue marlin (found just outside the        people let off steam. It can create alliances and support when         In truth, all of us are confronted with challenges. Our passion
 margin of error should the closure prove troublesome.           landfill, not inside wink wink) * NASA monument used on            people realize they are not alone, however, it rarely accomplishes     and the absence of personal value are implicit in our complaints.
 In this case we only had three hard points in addition to       our GPS in the jungle outside the NASA tracking station on         more than this. It doesn’t change anyone or anything. It often         Underneath the complaint, there is a mountain of committed
 NASA, which along with a series of clerical errors made         Guam.                                                              leaves people feeling worse by virtue of the negative feelings that    passion and a source of energy to be discovered and harnessed--
 the installation problematic. Once the clerical errors were                                                                        flourish. Complaints can also be a gateway to identify and give        if we look for it and ask about it.
 discovered, installation went smoothly and the accuracy                                                                            voice to personal commitments at work.
                           HERZOG NEWS                                                                                                                              safety first
Page 16                                                                                                                                                                                                                                Page 17

FEBRUARY 2012                                                                                                                                                                                                               FEBRUARY 2012




Family                                                  Andrea Poese

                                                        Andrea started with HRSI
                                                        in December 2011 as an
                                                        administrative assistant. She
                                                                                                                               Crystal Hontz

                                                                                                                              Crystal joined HCC in October 2011. She will be assisting with employee
                                                                                                                              development and benefits, run background checks and MVRs and help
                                                        will be responsible for DOT                                           maintain driver files. She is married to Neal who is a sergeant with the
      Ruben Montenegro                                  compliance files, new employee                                        Elwood Police Department. They have two children, Jordan (10) and Wyatt
                                                        training and orientation.                                             (6 months). She enjoys shooting and cooking and one day hopes to try
   Samuel Moises                                        Andrea has one son, Dominic,                                          her hand at hunting. Not many wives can say they have helped capture a
   Montenegro was born                                  who is 18 months, and a chocolate lab named                           felon or strip-searched a female. Look out folks, she just might have some
   January 2, 2012, to                                  Katie. She loves the Kansas City Chiefs, spending                     handcuffs hiding at her desk!
   Ruben, HTSI POLA
                                                        time with her family and going to church. She
   Red Car, and Norkely.
                                                        especially dislikes the Raiders! Her favorite book
   He weighed 8lbs 2oz
   and is welcomed home                                 is “Sense and Sensibility” by Jane Austin, favorite
   by big brother Ruben                                 movie is “The Shawshank Redemption” and
    Lazaro.                                             favorite foods are wings and Ruebens. Andrea                                                                                         Gilbert Melgarejo
                                                        is currently attending the University of Phoenix
                                                                                                                                                    Matt Sharp
                                                        online where she is pursing a degree in Global                                                                                   Gilbert became a new
                                                        Business Management.                                                                                                             grandpa on January 11, 2012.
                                                                                                                                                    Matt, Safety Specialist for
                                                                                                                                                                                         Gabriel Michael weighed 6lbs
                                                                                                                                                   HRSI and HSI, and his
                                                                                                                                                                                         14oz. Gilbert is the General
                                                                                                                                                   wife Andrea are proud new
                                                                                                                                                                                         Manager HTSI Rail Runner
                                                                                                                                                   parents of Josiah James
                      Matthew Price                                                                                                                                                      Express. Gabriel’s dad,
                                                                                                                                     born January 25, 2012. He weighed 8lbs
                                                                                                                                                                                         Michael Huffman, also works for
                                                                                                                                     1oz and was 20.5” long. He is welcomed
                       Kerrington Avery Price was born to                                                                                                                                HTSI in Albuquerque.
                                                                          Jim and Randi Hanlon                                       home by big brothers Bryson (11),
                      proud parents Matthew and Noelle Price
                                                                                                                                     Jeremiah (10) and sister Abigail (2).
                     on November 23, 2011, in Modesto, CA.
                                                                          Zachary Conner
                     She weighed 8lbs 11oz and was 18.5”
                                                                          Hanlon was born on
                    long when she was born. Matthew is the
                                                                          December 1, 2011, to
               Senior Train Operator for HTSI-Stockton, CA
                                                                          Jim and Randi Hanlon.
               and has been with the company for nine years.                                                                                                                                       Diana Mead
                                                                          The proud parents are part of HTI in              Bert Ross
               Kerrington is Matthew and Noelle’s first child.
                                                                          North Richland Hills, TX where Jim is the
               She is a very content young lady who is already                                                                                                                                     Diana joined HCC
                                                                          Director of Special Projects and Randi works      Bert, Special Projects
               “talking” up a storm. She also LOVES baths!                                                                                                                                         in Austin, TX on
                                                                          as the Purchasing Manager. Zachary is the         Coordinator HRSI, was
                                                                          proverbial bouncing baby boy, as he weighed                                                                              November 7, 2011. She
                                                                                                                            doubly blessed with two
                                                                          in at 10lbs 8oz when he was born. His favorite                                                                           and her husband Michael
                                                                                                                            new grandbabies born
                                                                          activities are eating, sleeping, and working on                                                                          have two children, Xavier
                                                                                                                            four weeks apart. Clara
                                                                          getting his hands into his mouth. Zack’s older                                                                           (17) and Kyla (10). Diana
                                                                                                                            Belle was born January 14, 2012,
                                                                          brother, Patrick, and sisters, Gabbi and Emma,                                                                           enjoys spending time with her family,
          Tim Coolman                                                                                                       to his daughter Andrea and her
                                                                          think he was the best Christmas present ever!                                                                            shopping and dancing. Her family is
                                                                                                                            husband Ben. She weighed 7lbs
                                                                                                                                                                                                   complete with a dog named Bubba and
     Tim, Software Engineer                                                                                                 3oz and was 20” long. Hunter
                                                                                                                                                                                                   a cat named Oreo. She just finished
     for HSI, and his wife Emily                                                                                            Dean was born December 17,
                                                                                                                                                                                                   reading “The Hunger Games” trilogy
     welcomed their first child                                                                                             2011, to his other daughter
                                                                                                                                                                                                   and loved it!
     Charlotte May on December 8,                                                                                           Lindsay and her husband B.J. He weighed 8lbs
     2011. She weighed 7lbs 15 oz                                                                                           4oz and was 21” long. These sweet babies are
     and was 21” long.                                                                                                      the first grandbabies for Bert and his wife. He
                                                                                                                            states it has been fun for his daughters to go
                                                                                                                            through this experience together and it has
                                                                                                                            been especially exciting for him and his wife.
                              HERZOG NEWS                                                                                                                                    safety first
Page 18                                                                                                                                                                                                                             Page 19

FEBRUARY 2012                                                                                                                                                                                                                 FEBRUARY 2012


 Manager’s
Meeting 2011
          St. Joseph, MO - The 2011 Manager’s        Hoffman, Geno Huenick, and Gilbert        e-mail etiquette by Al Landes and
          Meeting was held November 10th and         Melgarejo. There were eight first-time    Jeff Davison and various reports by
          11th at the Holiday Inn.                   sporting clay shooters with four “first   the equipment division by JJ Keller,
                                                     time” (never shot a gun) shooters at      Ryan Kirk from Caterpillar and Deric
          At the Welcome Dinner, “years              this event. Gun safety was a toolbox      Berry.
          of service recognition pins” were          meeting prior to the opening shot of
          presented by President Al Landes.          the true “shotgun start” of the event.    Day three started off with division
          Those who received pins are listed                                                   reports for International, HTI
          below and on the next page.                Day two began with introductions          and HTSI. Ryan VanMeter and
                                                     and was filled with presentations.        Carl Heinlein gave a safety/risk
          Day one began with the 2nd annual          The first item on the agenda was          management presentation. Up
          Herzog shoot. The shoot took place         quite educational to even the most        next was a Hollywood- like video       5 Years                  Edward Long          Kenneth Ehrhardt II     R.L. Thomas
          at Camp Geiger with 34 participants.       seasoned Herzog employees. A panel        presentation by HRSI for each piece    Alexander Ison           Eleuterio Carvajal   Kevin Herdt             Raphael Jeminez
          Each person/team was eligible to win       consisting of some of the most long-      of equipment. Closing and wrap up      Alexandro Cruz           Eric Bland           Kevin Marrant           Richard Williams
          prizes donated by Dean Machinery,          term and iconic employees of Herzog       was given by Al Landes.
          Cat Auctions, Fleet Body Equipment                                                                                          Betty Ray                Gene Barnes          Kyle Surick             Ronervi Roque
                                                     (Al Landes, Art VanMeter, Arnold
          and Nordco Track Equipment. More           Shipp, Rob Crawford, Joe Kneib and        This Manager’s Meeting was a           Brad Beason              Harold Lawrence      Leovardo Torres         Roxanne Olds
          than 16 shooters from the event            Randy Poggemiller) discussed the          successful one. Thank you to all who   Cassidy Lamb             Hector Valenzuela    Lisa Cesarano           Ryan Espoy
          took home prizes. Jeremy Hoffman           history of the company and their          participated and a special thanks to   Celestino Williams       James Hoffman        Mark Chacon             Ryan Scott
          took home the shotgun and custom           special memories. Following were          all who gave presentations and put
                                                                                                                                      Christopher Anquoe       Javier Arambula      Megin Green             Sarah Slette
          gun case, and Keith Schmitz took           the division reports for National         the meeting together.
          the prize for highest scoring single                                                                                        Christopher Cork         Jay Pendlebury       Melissa Hollingsworth   Scott Malcolm
                                                     Construction, then a break for lunch.
          shooter for the second year in a row.      To finish the day, a presentation on                                             Christopher Smith        Jeffrey Monahan      Melissa Mackel          Scott Reif
          The highest scoring team was Jeremy        EEO was given by Andrew Liles,                                                   Courtney Neville         Jesse Vanlaningham   Michael Johnson         Stephen Monahan
                                                                                                                                      Creas Taylor             John Sanchez         Michael McDonald        Stephen Turnbeaugh
            35 Years                      15 Years                         Tim Tyler                      Marshall Shields            Cristian Ponce Vazquez   John Sickmeier       Michelle Davis          Steven Fields
            Dennis Butler                 Chris Lavicky                    Wilson Pike                    Michael Gomez               Cynthia Nicholson        John Wright          Nelson Robinson         Timothy Reed
            30 Years                      Dale Schmidling                  Yakov Kagan                    Michael Larosa              Dallas Thomas            Joseph Washington    Nenfi Lopez             Toby Van Winkle
            Kathy Lambert                 Danny Daughrity                  10 Years                       Michael Smith               Darrin Meade             Josh Short           Nyla Rhoton             Vincent Bonvicino II
            Timmy Servaes                 Fred Boddy                       Aurora Rodriguez               Mitchell Salin              Dona Long                Joshua McCormack     Paul Hunter             William Breza
            25 Years                      George Williams                  Ben Sanchez                    Nancy Lira                  Donald Griswold          Joshua Sipe          Paul Jones              William Sterner
            Doyle McConnell               Kenneth Hunter                   Benjamin Ledet                 Philip Johnson              Dustin Dunham            Keith King           Pavel Burshteyn
            Michael Maguire               Kevin Heidrich                   Chad Halverson                 Richard Washington
            Sharon Adams                  Mary Nichols                     Chad Willoughby                Rudy Brito
            Wayne Gladden                 Pam Tharp                        Chuck Denny                    Sammy Fry
            20 Years                      Philip Randleman                 Christopher Keas               Steven Oliver
            Brian McConnell               Richard Crockett                 Jonathan Shalom                Tony Shirk
            David Friehl                  Ronald Van Seggern               Kenney Newville                Troy Griswold
            Lawrence Bell                 Scott Mueller                    Larry Arnold
                                HERZOG NEWS                                                                                                                                         safety first
Page 20                                                                                                                                                                                                                                                           Page 21

FEBRUARY 2012                                                                                                                                                                                                                                       FEBRUARY 2012


Tidbits Around the Country...                                                                                                                                                                                           St. Joseph, MO- Herzog teamed up with
                                                                                                                                                                                                                        Midland Ministries to collect toys and cash
                                                                                                                                                                                                                        donations for needy families. Each family that
Scott Norman, Vice President of Estimating, has been elected           Jack Webb, QA Oversight Herzog Contracting Corp., was
                                                                                                                                                                                                                        arrived had a personal shopper to take them
by the NRC Membership as the newest member of the Board                accepted for appointment to AREMA Technical Committee
of Directors. He was the only non-incumbent candidate to               12, Rail Transit. This committee is responsible for the                                                                                          through the different tables and pick out toys
be elected. There were 15 candidates for four spots. This is a         development and publication of information regarding light                                                                                       for their children. There were a total of 91
three-year term and he will be eligible to run for re-election in      and heavy rail transit systems and their design, construction                                                                                    families and 314 children received a new toy for
December 2014.                                                         and rehabilitation. He has been selected to be on the                                                                                            Christmas. Pictured left, Richie McCullough
                                                                       AREMA Committee 5. This committee is responsible for the                                                                                         and Deric Berry pose for a picture with Frosty
Geno Huenink, Herzog Railroad Services Inc., has been                  development and publication of recommended practices and                                                                                         after they delivered the toys. Pictured to the
promoted to Assistant Vice President of Marketing.                     information related to the design, use and maintenance of                                                                                        right are some of the toys laid out on tables.
                                                                       all track OTM, tools, geometry, construction, highway road
Corey Blevins, Corporate Recruiter Herzog Railroad                     crossings and special track work.
Services, Inc., graduated in December from Missouri Western                                                                              The National Railroad Construction & Maintenance Association (NRC) inducted its
State University with a B.S. in Economics with a Business              Danny Bailey, Structures Manager/Deputy Project Manager,          inaugural class into the new NRC Hall of Fame. With the NRC in a good position and
Minor. He was able to balance work, family and school by               was also selected for appointment to AREMA Technical              continuing to grow, the NRC Board believes it is important to look back to understand how
taking night and online classes. His wife Tabitha and three            Committee 12, Rail Transit. This committee is responsible for     we got here. The Board decided to institute a new NRC Hall of Fame to honor the legends
daughters, Emma, Taylor and Tori, are all very proud of him.           the development and publication of information regarding          of the industry, those who have driven progress in rail construction and maintenance, and
                                                                       light and heavy rail transit systems and their design,            those who have helped make the NRC strong as an association.
                                                                       construction and rehabilitation.
                                                                                                                                         The first two inductees are Bill Herzog, Herzog Contracting Corp. and Phil Stout, Atlas Railroad Construction.
It’s Nice to Hear Something Nice by Dave Sterlace                                                                                        Bill was the founder and owner of Herzog Contracting Corp. He was a fearless businessman, who started Herzog from
I recently had to phone Garmin to update my product. While speaking to the customer service representative I was asked who               scratch in 1969 in St. Joseph, MO. Bill lived the principles of honesty and integrity, and was the definition of ‘probity.’ He
I was employed by. My response was Herzog and the representative stated, “I have heard of them.” After this portion of the               was a strong believer in giving back to the community and the industry. Many people at Herzog continue in his legacy of
conversation the update went very smoothly. The point of sharing this transaction is as follows: every employee of Herzog has            supporting the NRC, including Randy Poggemiller and Rick Ebersold who are both former Chairmen of the NRC Board;
a responsibility to maintain our reputation. We are all an extension of the company, not just the VPs or PMs.                            Scott Norman and Norm Jester are on the Board currently; Mike Maguire and Peter Kane are on the Safety Committee;
                                                                                                                                         and Dan Samford is on the Auction Committee.
                                                                                                                                                                                                                                       Source: NRC bulletin, January 18, 2012
                                                 Denver, CO- John West, Project Manager Denver Transit Construction Group,
                                                 received the Contractor of the Year award from the Colorado Contractors
                                                 Association (CCA). The Contractor of the Year was initiated in 1964 in
                                                 recognition of an individual who has made a difference during the past year
                                                 providing significant contributions. This is the highest of CCA honors.
                                                                                                                                         Halloween
                                                                                                                                          Cuties
“I’d like to thank everyone who sent congratulatory messages in regard to my recent                                                    St. Joseph, MO- The corporate office
award. As I stated in my comments when I accepted the award, the key to this special                                                   filled with the sounds of excitement and
recognition is to surround yourself with good people. In my mind, a single individual                                                  giggles the afternoon of Halloween as
doesn’t qualify as a contractor. This is truly a team award and I’m proud to represent                                                 children came in for the annual candy
Herzog Contracting Corp., Denver Transit Construction Group and a dynamic group                                                        walk and to show off their fun costumes.
of exceptionally talented and engaged individuals. Thanks again for your kind remarks                                                  At every turn was a bowl of sweets
and for being part of the extended team who made it possible for me to receive this                                                    waiting so children could fill their bags
award.” -John West, Project Manager, Denver Transit Construction Group                                                                 and buckets. You’ve got to catch them
                                                                                                                                       fast because they don’t stay in one place
                                                                                                                                       for very long.

                                        “You look a little pale, you             Correction: Richie McCullough was listed as the
                                        feeling okay?” No, that is               Scheduling Director in the previous newsletter. His
                                        just Gerry DiIoli, Western               correct title should be Civil Engineer.
                                        Division Manager, at a
                                        Halloween costume party.
                                   HERZOG NEWS                                                                                                                                                                                                     safety first
 Page 22                                                                                                                                                                                                                                                                                                                                                                                                               Page 23

 FEBRUARY 2012                                                                                                                                                                                                                                                                                                                                                                               FEBRUARY 2012


 It’s all about...Joe Kneib                                                                                                                         New Year Brings New Name,
Joe Kneib has served in many capacities           construction including highway, landfills/      When GCC delegates visit the United
for Herzog over the last 42 years. In the
early days, he worked as a laborer laying
asphalt, and moved steadily through the
                                                  environmental projects, railroads, transit
                                                  and projects overseas.
                                                                                                  States, Joe participates and hosts them by
                                                                                                  sponsoring round table discussion and
                                                                                                  organizing site visits. A few of those visits
                                                                                                                                                    New Faces
ranks to where he is now- developing sales        The key to Joe’s successful pursuit of          involve showing a group from the UAE
and marketing strategies as Senior Vice           opportunities lies in the way he treats those   Herzog job sites in North Texas, Colorado         Clifton Gunderson is now CliftonLarsonAllen. Effective                                                                                           member of the American Institute of Certified Public
President- Market Development.                    he meets, Shipp noted. “He goes out of          and New Mexico. He also helped host a             January 2, 2012, Clifton Gunderson, which has provided tax                                                                                       Accountants and the Missouri Society of CPAs.
                                                  his way to talk to people and gets to know      Brazilian group that visited Herzog job           and audit services to Herzog for a number of years, merged
It was the early 1970s when Joe worked            them beyond just their name. It has helped      sites in North Texas and paid a visit to          with Minneapolis-based Larson Allen to form a new firm,                                                                                          Other recent additions to the CliftonLarsonAllen office in
for Arnold Shipp on the paving crew, then         him find a lot of work for the company over     Corporate Offices in St. Joseph, MO.              CliftonLarsonAllen LLP. Ranked as a Top 10 accounting                                                                                            St. Joseph include:
later as a road foreman on highway projects       the years. Everyone knows Joe Kneib. That’s                                                       firm, CliftonLarsonAllen will continue to provide industry-
in north central                                  his legacy.”                                    Joe has hosted various foreign dignitaries,
                                                                                                                                                    specific tax and assurance services for Herzog and other                                                                                                                               Harold Ray, CPA, an associate in the
and northwest                                                                                     rail industry, transportation executives
                                                  Eric Schneider, account executive at                                                              clients in the region.                                                                                                                                                                 assurance services department. Ray earned
Missouri, and                                                                                     at roundtables, site visits at international
then on to the                                    Thomas McGee and former account                 industry functions in Washington, DC,                                                                                                                                                                                                    his bachelor’s degree in accounting and
Current river                                     executive at Lockton Companies, wrote           New York, NY and Chicago as well as               CliftonLarsonAllen is a new kind of firm with deep                                                                                                                                     his master’s of business administration
and southeast                                     an email illustrating the influence of Joe’s    Herzog’s corporate headquarters, shops            industry experience, specialized accounting, tax, consulting                                                                                                                           from Northwest Missouri State University,
Missouri.                                         people skills and the true culture at Herzog.   and projects throughout the United States.        and advisory services, and exceptional service with                                                                                                                                    Maryville, MO.
                                                  “The best memories I have of commercial         Joe credits these successful site visits to the   an unprecedented emphasis on serving privately held
“I remember                                       insurance are working with Herzog,” he          respective project managers and their staff       businesses and their owners.
his first day,” Shipp recalled. “He came to       said. “Every employee I met at Herzog was       who made these visits extremely beneficial                                                                                                                                                                                               Daniel Kopshinsky, an associate in the
work shirtless, wearing bib overalls and a        top notch and a pleasure to work with.”         and appreciated.                                  For Herzog employees, the new name and                                                                                                                                                 assurance services department. Kopshinsky
hat a scarecrow wouldn’t wear. Under the
                                                  Joe not only pursues work in North                                                                CliftonLarsonAllen logo now represent the legacy of                                                                                                                                    earned his bachelor’s degree and
hat he had a mass of untamed hair. It was                                                         While Joe is a noted workhorse, he’s not
                                                  America but is currently working with                                                             excellence that both firms have built over more than 50                                                                                                                                master’s in accounting from Kansas State
huge. My foreman leaned over to me and                                                            all work and no play. Over the years he
asked, ‘Who is that?’”                            Scott Perry, Vice President of International    has advanced his leisure repertoire to            years. The partners and professionals who have advised                                                                                                                                 University, Manhattan, KS.
                                                  Operations, and other Herzog Companies          include hunting for duck or pheasant, trout       Herzog over the years will continue to provide the same
Soon enough, Joe proved himself when              on projects in the Arabian Penninsula           fishing, golfing and “sailing with my wife        close, personal attention and experienced perspective.
he powered through shoe-grabbing mud              (GCC counties), Australia, African              and father-in-law. I like all kinds of sports                                                                                                                                                                                            Joshua Dalsing, a senior associate in
while hauling a load of railroad ties over        countries, Brazil and other South American      and I’m even becoming an ice hockey and           As a result of the merger, CliftonLarsonAllen has expanded                                                                                                                             the tax department. Dalsing earned his
his shoulder. “That’s when I knew this kid        countries. He is also polishing his business    soccer fan,” he said. Joe has been married        its footprint to a staff of more than 3,600 professionals and                                                                                                                          bachelor’s degree in accounting from
would work,” Shipp said. “He still works          development skills in the Middle East           to his wife, Jan, for 20 years and is proud       500-plus partners, operating from more than 90 offices in                                                                                                                              Graceland University, Lamoni, IA, and his
like that today.”                                 where he is chasing contracts with              of his daughter, Kelley, who is a proposal        25 states and Washington, DC.                                                                                                                                                          master’s from Northwest Missouri State,
                                                  members of the Gulf Cooperation Council,        manager for Parsons PTG in Denver,
Joe doesn’t brag about his accomplishments                                                                                                                                                                                                                                                                                                 Maryville, MO.
                                                  such as Saudi Arabia, Kuwait, United Arab       Colorado.
at the company, but prefers instead to                                                                                                                                     CliftonLarsonAllen is also pleased
                                                  Emirates, Bahrain, Oman and Qatar.
point to the successes of Herzog, a great                                                         As for working at Herzog 42 years, Joe says                              to announce the addition of Tim                                                                                                                                 Nathan Howell, an associate in the tax
organization that he proudly helped build.        While the business culture varies greatly       he is loyal to a company that appreciates                                Reynolds, CPA, as partner in the                                                                                                                                department. Howell received his bachelor’s
                                                  from the United States to the Middle East       those who take responsibility for their                                  St. Joseph office. He has more                                                                                                                                  degree in accounting and business
“It’s a very flexible and committed               and South America, Joe said he hasn’t had                                                                                than 18 years of private industry                                                                                                                               management from Keuka College, Keuka
                                                                                                  actions and behave with integrity. “In
organization that provides high quality           many awkward experiences. The main                                                                                       and public accounting experience                                                                                                                                Park, NY.
                                                                                                  other companies, sometimes pride of
work using innovation in every area of the        difference is that meetings call for formal     authorship or commitment to a wrong way                                  and specializes in tax services for
company,” Joe said. “Herzog has always had        business attire, so he dons a suit and tie.     of performing a project gets in the way                                  corporations, partnerships and high
a strong emphasis on quality, people and          Adhering to customs and making an effort        of progress,” he said. “In this company, if                              net worth individuals. Reynolds also
relationships with clients.”                      to understand the language is foremost. The     someone has an idea for a better way to do                               has extensive experience with federal                                                                                     You can learn more about CliftonLarsonAllen at
                                                  business language is English in the Middle      things, a better process or superior way to
Joe has been instrumental over the years                                                                                                            and state income tax compliance, income tax accounting/                                                                                          www.cliftonlarsonallen.com.
                                                  East, Portuguese in Brazil and Spanish in       perform – it’s encouraged.”
securing a variety of contracts in all areas of                                                                                                     provision services and uncertain tax positions. He received
                                                  the rest of South America.
                                                                                                                                                    his bachelor’s degree in accounting from the University
                                                                                                                                                    of Toledo and is a Certified Public Accountant. He is a

                                                                                                                                                    The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, or tax advice or opinion provided by Clifton Gunderson LLP to the reader. The reader also is cautioned that this material may not be applicable to, or
                                                                                                                                                    suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Clifton Gunderson LLP or other tax professional prior to taking any action based upon
                                                                                                                                                    this information. Clifton Gunderson LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.




                                                          Some of the many faces of Joe!
                                HERZOG NEWS
Page 24

FEBRUARY 2012
                                                  From our friends at




Social Media in the Workplace: Practical Tips for Employees
The use of social media by both employees and employers has
become prevalent in today’s society. The use of these resources
creates new concerns in the workplace regarding employee
performance and company privacy. Your employer has an
interest in protecting its trade secrets, business practices, and
proprietary information, as well as your privacy. To protect
these interests, your employer has set limits on the use of
technological devices and social media, in and out of the
workplace, likely through its social media and other policies.
These policies are not meant to restrict the flow of useful,
appropriate, and lawful information, but to minimize risk to
you and your employer. Therefore, you should pay careful
attention to your employer’s social media policy as it can
help you avoid a violation and the subsequent consequences,
which may include termination or legal action.

As an employee, there are ways to ensure your compliance             company resources or time, you should respect the privacy
with the company’s policies. First, remember that all                of your fellow coworkers, never disclose the confidential or
equipment and systems operated or owned by the company,              proprietary information of your company, and refrain from
including computers, email, Internet access, telephones,             making defamatory remarks about your employer.
and company social media sites, are the company’s property
and your use of these resources can be monitored by your             Participation in social media sites can be a valuable tool
employer. Therefore, personal use of these resources, even           in both your personal and professional life. However, you
if not prohibited by company policy, should be limited,              should proceed with caution and use good judgment when
especially participation in social media activities. In any event,   painting your online portrait because it may be available for
use of your company’s resources should never include illegal         all to see. The use of social media sites necessarily implies the
or inappropriate activity nor should such use interfere with         posting of public information. Therefore, you should have
your work. Further, when using social media sites on non-            no expectation of privacy with respect to any information
                                                                     that you post on social media sites, even if you restrict access
                                                                     to your information or later delete the information. When
                                                                     you post information on the Internet, you have no control
                                                                     over this information or what others choose to do with your
                                                                     information. This may result in giving access to parties that
                                                                     you would not want to have such access, including a current
                                                                     or potential employer.

                                                                     If you have any questions about appropriate social media use
                                                                     or your company’s policy, you should contact your supervisor
                                                                     or human resources department for more guidance.




                           For more information about Dunn & Davison, visit www.dunndavison.com.

						
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