NEWSLETTERIssue 025 - June 2019

Kolb and ValenciaBy Grey Major, Project Engineer

CONTENTS

Kolb and Valencia

Harshaw Road

2019 KE&G Family Picnic

What Makes an Effective Team?

Diamondbacks Game Anyone?

Shop Update

Employee Benefits and Open Enrollment

The Sun: A Construction Site Hazard

Upcoming Events

The Harshaw road project is a 1.3 mile road project south of Patagonia for the Santa Cruz County and paid for by the South32 mine at Hermosa. The work consists of widening the existing roadway, cement treating the subgrade and applying a double chip seal. The entire project needs to be completed by June 14th and is being managed by Kevin Wilusz. To achieve the fast-paced schedule both the Cat 350 with its new rock hammer and the Iron Wolf have been mobilized.

Harshaw RoadBy Kevin Wilusz, P.E. Project Manager

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Kolb and Valencia is one of the most used intersections in the Tucson area and has boasted one of the worst pavement surfaces in the area for some time. The City of Tucson along with RTA and KE&G have come together to give this area some much-needed and long overdue improvements. This project includes widening Valencia to 6 lanes and multi-use lanes, eliminating left turns at the Valencia/Kolb intersection, adding a northbound Kolb road access ramp and adding an eastbound Valencia access ramp. An accelerated schedule of 12 months for construction was added to the project in order to accommodate the construction and operation of the new Amazon Distribution Center near the south end of the project. It has proven to be a very unique project with regards to schedule, construction sequence, value-engineering, and a large part of KE&G’s growth this past year, the project has provided opportunities to gain unique, large-scale construction experience to

both new and existing KE&G employees. Final paving operations begin May 15, 2019 and will last for approximately six weeks, after which the project will wrap-up in its entirety by early August.

ESOP COMMUNICATION

COMMITTEE• Justin Wilson,

Chair, • Angel Perez,

Co-Chair, • Cindy Bryan,

Secretary• Gaspar Rosas• Cliff Klamath• Jamie Lavallee

• Mike Porter• Kyle Shepherd• Liz Gallego• Aaron De La O• Ed Anderson• Chris Weinell• Chris Albright• Larry Saunders

We want to thank the 2019 ESOP Communications Committee for organizing another successful Family Picnic. With more than 336 attendees, we had a fun day, and we hope you did too. As an employee-owned company, each member of the KE&G team is an “employee-owner.” It is important to us that we express our appreciation to each member of the ESOP to continue promoting profitable growth, teamwork and employee ownership. Our goal is for each employee to take pride in everything we do, not just as individuals, but as a company. We have several other events coming, so, please look for the dates and locations as to when and where they will be.

2019 KE&G Family PicnicBy Ramon Gaanderse, Marketing Director

Have you ever noticed that some teams get an incredible amount of work done, while others struggle to get a project off the ground? It turns out, according to research from Google, that the most effective teams are very good at two things.

First, effective teams are more likely to take turns while talking. When everyone has a say in a group or even when everyone knows they can have a say, the team can act more quickly and decisively. Second, effective teams are more likely to pay attention to social cues. They catch nuanced details like team members’ tone or facial expressions, and they even share personal stories. Google determined that these two factors create “psychological safety” for the group.

For employee-owned businesses like KE&G, psychological safety isn’t just a nice term; it’s embedded in the DNA of our business. As an employee-owner, your voice matters because you are one of the stakeholders of this company.

Also, because we own our company together and are invested in the outcome, we’re more than just coworkers clocking in and out. Each of us brings our stories to the job, our families, our dreams, our ups, and downs. These stories inform the bigger picture of our company, and our work here, in turn, adds value to our lives outside.

Employee ownership creates better conditions for effective teams and psychological safety. Ultimately, what matters most isn’t who is on the team as much as how we relate to each other.

What Makes an Effective Team?

Issue 025 - June 2019 Page 2

The ESOP Communication Commi-ttee would like to know who would be interested in attending an Arizona Diamondbacks game on a Saturday in Phoenix. Please contact the Tucson or Sierra Vista office to add your name and number of tickets you would like to a list of interest.

Tucson office - Kendra at kpuhala@kegtus.com Sierra Vista office - Aurelia at amesser@kegtusv.com

Diamondbacks Game Anyone?

PPO, HSA, HDHP, FSA, DBL and on and on; what is this alphabet soup and why should I care? Before you know it, it will be ti me to select your insurance benefi ts for the new year that runs from 10/01/19-09/30/20. As everyone is aware, benefi ts are confusing. Our annual benefi ts mee� ngs will take place on August 6, 2019 and open enrollment will run through 08/26/19.

While I believe KE&G off ers the best benefi t package of any company in our state, to make the most of these benefi ts, it is up to each of us to take the ti me to understand what it is we are buying.

Let me ask you a questi on. If you were buying a gun or any other big-ti cket item, wouldn’t you take your ti me and do some research before spending that $500, $1,000 or more to make sure you get the most for your money? Well you should do the same when selecti ng your insurance benefi ts because every year between what you pay and what KE&G pays, we are spending $5,000-$15,000 and more for every employee. That is being spent each and every year for these insurance products.

Please do yourself and your family a favor and don’t wait unti l open enrollment to fi gure out if you need to make changes to your insurance benefi ts. Begin researching and asking questi ons now so you are prepared when open enrollment is upon us. I have no doubt those who take the ti me to research and understand will have more money in their pockets than those who simply take what they had last year or what their friend has.

Insurance decisions are a personal decision. What is right for one person will most likely not be right for the next person. Selecti ng the right products can easily put $500; $1,000 or more into your pocket at the end of the year by selecti ng the products that are right for you. We are here to help and so are the agents at Lovitt & Touche the brokerage fi rm who help us each year to put together our benefi t package.

Where do you begin? Remember when you enrolled in benefi ts at www.clearpathprime.com? That website is not just for enrolling in benefi ts. It off ers a wealth of informati on to help inform you about the products available and how best to use them. Aft er you log on, there is a secti on called Company Corner where there is a variety of informati on available to each of us to help us learn and stay on top of the benefi ts off ered. This is also where we post important documents such as summary plan descripti ons for our ESOP, 401k and other important documents. Many are available in English and Spanish.

Forgot your log in credenti als? It is easy to recover them. The username for each of us is KEG followed by your fi rst and last initi al followed by the last 4 of your social security #. For example, my username would be KEGCW1234 if 1234 was the last 4 of my social. Once on the site, you can reset your password easily with just your username. Please take advantage of this valuable resource.

As we get closer to open enrollment, I will have some informati onal meeti ngs to answer questi ons you or your spouse may have. These meeti ngs will take place either in the evening or on Saturdays to make sure you are available. I want everyone to select what is best for them and that is why we decided to off er so many choices in the Clear Path Exchange.

Employee Benefi ts and Open EnrollmentBy Chris Weinell, Controller

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• 2-Ford F-650 Mechanics Trucks w/ Crane

• Ford F-450 Flatbed Crew Truck• Freightliner Fuel/Lube Truck• Peterbuilt 379 Heavy Haul

Transport Truck• Peterbuilt 357 Semi-Tractor• Caterpillar 3412 500KW Generator

(Hot Plant)• 2-500 Gallon Water Wagons• 3-New Uti lity Trailers• Caterpillar 12M3 Motorgrader• Caterpillar 140H VHP Plus

Motorgrader• Caterpillar H-140 Hydraulic

Hammer• Chevrolet Express Passenger Van• Chevrolet 1500 Silverado 4x4

Crew Cab

Shop UpdateBy Clint Schweigert, Shop Manager

NEW EQUIPMENT

• Installed 4 post vehicle lift s• Moved fi lter room to maximize

storage/ease of use• Moved shop tools out of

warehouse• Painted shop offi ce/new furniture• Replacing outdated alarm system• Modifying preventi ve

maintenance intervals• On-going cleaning of yard and

shop• New shade cover for Sierra Vista

shop• Eliminati ng obsolete stock

SHOP CHANGES

Mike Harrison-Field Equipment ForemanJoe Ramirez-Lube SupervisorShaun Miller-Purchasing AgentRichard Cruz-Shop Mechanic

PERSONNEL UPDATE

UPCOMING EVENTS

MAY 27, 2019Memorial Day - KE&G Closed

JUNE 22, 2019Supervisor’s Meeting, Sierra Vista

JULY 4-5, 2019Independence Day - KE&G Closed

AUGUST 6, 2019Annual Benefits Meeting

AUGUST 24, 2019Annual Shareholders Dinner

SEPTEMBER 2, 2019Labor Day - KE&G Closed

OCTOBER 2019ESOP Month!

OCTOBER 5, 2019Supervisor’s Meeting, Tucson

NOVEMBER 28-29, 2019Thanksgiving - KE&G Closed

DECEMBER 25, 2019Christmas - KE&G Closed

Issue 025 - June 2019 Page 4

Unlike a hardhat at a job site or a high-visibility safety vest in traffic, sun protection does not protect employees from any immediate danger of an accident. Sun safety is PREVENTATIVE safety.

The sun is the primary cause of skin cancer, and that means that construction workers, who work outside most of the time, are at high risk for this disease. Skin cancer is the most common form of cancer. Don’t take this statement lightly – skin cancer is real cancer, and it can be as serious as any other cancer if not treated early. Your skin needs protection from the sun in order to reduce your risk of skin cancer. Skin cancer does not discriminate by age, skin tone or gender, and it is one cancer you can prevent.

Sunlight contains an invisible form of radiation called ultraviolet (UV) radiation, which causes premature aging of the skin, wrinkles, cataracts and skin cancer. Construction workers are exposed to the sun’s harmful ultraviolet radiation, even on cloudy days. There are no safe UV rays, and there is no such thing as a “healthy tan.”

Block out UV rays by using these steps:

1) Cover Up. Wear long-sleeves, neck shades, and wide brims.

2) Use Sunscreen. Wearing sunscreen is an important part of protecting yourself from UV rays. You should be slathering on (and reapplying!) sunscreen of at least SPF 15.

3) Wear your company-provided safety glasses. The Nemesis darks are UV-absorbent shades. They block 99% of UV radiation.

The Sun: A Construction Site HazardBy Lauren Chapelle, Safety Assistant

KE&G Construction, Inc.3949 East Irvington RoadTucson, Arizona 85714