Document 8VJm1ya1qaz7Vp1EJzxKORLVa

PLAINTIFF'S EXHIBIT A/C Pipe Producers Association April 1976 PROFILE Richard H. Stanley Although the improbable location of Muscatine, Iowa, belies the diverse in ternational operations of Stanley Con sultants, its President does not. Richard H. Stanley embodies a "philosophy of diversification" by both personal and professional exam ple. He describes himself as a "hybrid engineer" having received a double Bachelor of Sciences degree in Mechanical and Electrical Engineer ing at Iowa State. Night school at the University of Iowa produced a Masters in Sanitary Engineering. This same penchant for diversifica tion also characterizes the Stanley consulting firm. From a regional hyd raulics and drainage engineering company founded in 1913, Stanley Consultants continually widened its scope until in 1976, it offers services in all areas of engineering, architecture, planning and management. Iowa may be first in their hearts, but certainly not in corporate operations. Stanley of fices are located in several major U.S. cities. Monrovia, Liberia. Kuala Lum pur. Malaysia. Lagos, Nigeria and the Philippines, among others. Suite 1113 1875 Connecticut Avenue. N.W. Washington. D.C. 20009(202) 232-2100 Volume 2, Number 3 Safe Drinking Water Act- A Tough Act to Follow? This is the fourth and final part of a special series ofAACPP articles on the Safe Drinking Water Act of 1974. Part 3 discussed the National Academy of Sciences (NAS) study and its impact on drinking water standards. Part 4 wraps up some of the "loose," but im portant ends of the law ... the Loan Guarantee Program, Rural Water Sur vey and National Drinking Water Ad visory Council. AACPP to Exhibit at Consulting Engineers Convention AACPP will unveil its new "A/CAmerica's Choice" exhibit at the De sign Engineers Exposition for the Construction Industry sponsored by The American Consulting Engineers Council (ACEC). The show will be held May 18-20,1976, in Washington, D.C. The "America's Choice" exhibit will highlight the results of the A/C Cities Survey; an attractive new literature display area has also been added. A special display will simulate AACPP's second full page advertisement and feature a section of 28-year old A1C pipe alongside an equally clean "fac tory fresh" section. The ACEC Convention is expected to attract 700-1,000 of the nation's leading consulting engineers. The convention program will include pre sentations on contract pricing, busi ness development, legislative and EPA update, professional liability and pro ject management. Group discussions on specific ACEC position problems will also be conducted. George A. Christie, the noted economist from McGraw-Hill Information Systems, will discuss the economy and the con struction industry and former Federal Energy Administration Director, John Sawhill, will comment on "Energy and Big Government." ACEC will also make two special bicentennial "Amicus Awards" to the National Aeronautics and Space Ad ministration and William Wallace, Moore, Senior Consulting Partner. Dames & Moore (San Francisco). Part Four National Drinking Water Advisory Council The Safe Drinking Water Act (SDWA) requires the Environmental Protection Agency Administrator to establish a council to advise him and -make rec ommendations on EPA's activities and policies under the drinking water law. In April, 1975, after consulting with the Secretary of Health, Education and Welfare, EPA Administrator Russell Train named two women and thirteen men to a "National Drinking Water Ad visory Council." The Council is comprised of five members from the general public, five members from "... appropriate state and local agencies concerned with water hygiene and public water sup ply" and five members from private organizations "... demonstrating an active interest" in water supply and hygiene. Each member holds a three year term. Among the notable appoin tees are Chester A. Ring III (a director of National Association of Water Com panies, and AWWA President-Elect), Walter K. Morris (present AWWA Pres ident) and Henry Ongerth (Chief, Bureau of Sanitary Engineers, Calif. Dept, of Health). The Council is divided into specific interest subgroups: research, under ground sources, training and public affairs. A typical Council meeting lasts two days and includes an update on EPA water and research programs and major presentations by federal agencies/bodies also involved in the safe drinking water program (e.g. FDA, National Cancer Institute, National In stitute for Environmental Health Sci ences, public participation and sub group reports. The most recent meeting, held on April 21-22 in Washington, D.C., spent a considerable amount of time discus sing the National Academy of Sci ences study. Specific concern was ex pressed about the NAS position on es tablishing "maximum contaminant levels (MCL's) "for carcinogens in drinking water" (see PIPE REPORT, Vol. II, No. 3). Although the National Drinking (Continued on page 4) ii CAPCO JEN 0031621 Pipe Report VIEWPOINT What You Say Is What You Get Within the month, a rather straightforward questionnaire will be mailed to AACPP member company staff and sales personnel. Its purpose is threefold: 1. To measure the visibility of AACPP programs. 2. To determine the tangible impact of these programs. 3. To reassess existing priorities and obtain input for new priorities forail AACPP activities. There are no sophisticated ra tionales. no ulterior motives. The questionnaire is "an attitude study" ... a simple tool to keep the Associa tion's officers and staff informed of member needs, opinions and griev ances. In a year filled with bicentennial platitudes and campaign rhetoric, it seems rather trite to say "Make your voice heard!" or "Cast your vote for the future!" Let's look at the situation more pragmatically. What you should be doing for the Association is saying what the Association should be doing for you ... and what you say is what you get. John Ariss George Barge Atlas and Canadian J-M Officers to Co-Chair Annual Meeting AACPP President W. R. Blankenship (Certain-teed) has announced the ap pointment of George Barge and John Ariss as Co-Chairmen for the Associa tion's Fourth Annual Meeting to be held in Quebec City, Quebec, Canada. John Ariss is Vice President and General Marketing Manager of the Products Division of Canadian Johns-Manville Co., Ltd., headquar tered in Toronto. He is that company's representative to the AACPP Board of Directors. Mr. Ariss received his degree in Civil Engineering (Queens University) and a Masters in Business Administration from McMaster University. He joined Canadian Johns-Manville in 1963 and progressed through the department to General Marketing Manager for pipe in 1972. Three years later, he was prom oted to General Marketing Manager for the Products Division. Mr. Ariss is a member of the Ontario Association of Professional Engineers, the Ontario Section of AWWA and the Pollution Control Association. George Barge is President of Atlas Asbestos Company (Montreal, Canada) and Second Vice-President of AACPP. He joined the Keasbey and Mattison Company in St. Louis in 1934 and later attended St. Louis and Washington Universities. After moving to K&M corporate headquarters in Ambler, Pennsylvania, in 1946, he was promoted to a number of positions in cluding Director and Vice President of Financing. Mr. Barge joined Atlas in 1963. In addition to being President of that firm, he is President of Turner Building Products Co., Ltd. (Mission, B.C.), a Director of Bell Asbestos Mines Ltd., is on the Canadian Manufacturing As sociation and the Executive Cpmmittee of the Asbestos Information As sociation (AIA). April 1976 Meetings and Conventions May 18-20,1976 American Consulting Engineers Council Exposition for the Con struction Industry Sheraton Park Hotel Washington, D.C. May 31-June 4,1976 Clean Air and Water Exhibition U.S. Trade Center Sydney, Australia June 2-3-4,1976 American Society for Testing and Materials (ASTM) C-17 (Asbestos-Cement Products) Committee Meeting Denver, Colorado June 20-25,1976 American Water Works Association Annual Convention The Rivergate New Orleans, Louisiana June 27-29,1976 National Association of Counties Annual Conference and Exhibit The Salt Palace Salt Lake City, Utah July 13-16,1976 AACPP Annual Meeting Le Chateau Frontenac Quebec City, Quebec September 1-15,1976 INTERBYTMASH- 76 Second International Exhibition of Municipal Service & Domestic Equipment Moscow, Russia September 25-30,1976 International Public Works Con gress & Equipment Show Las Vegas, Nevada October 3-8,1976 49th Annual Conference of the Water Pollution Control Federa tion Minneapolis Convention Center Minneapolis, Minnesota Association of Asbestos-Cement Pipe Producers Suite 1113 1875 Connecticut Avenue, N.W. Washington, D.C. 20009 President' W. R Blankenship (Certain-teed Prod ucts Corporation First Vice President: H. Taylor (The Flmtkote Company) Second Vice President: G. Barge (Atlas Asbestos Company) Secretary.* R W. Smith (Johns-Manville Sales Cor poration) Treasurer' I L. Taylor (Cement Asbestos Products Company) Executive Director Joseph C Jackson Associate Director end Editor- John F Welch I "1 CAPCO JEN 0031622 3 Pipe Report April 1976 AACPP Executive Director Joe Jackson congratulates new NUCA President Bill Lee. L. to r.: Jackson, Homer Johnson (CAPCO), Lee, John Pannutlo (NUCA Executive Director) and Jack Leach (NUCA President--1974) NUCA '76 Party Overwhelming Success for AACPP The hardest working person at the National Utility Contractors Associa tion "Spring Around the World" party was Bill O'Leary. Bill, who speaks with a thick Irish brogue, seemed quite at home as barkeep in AACPP's repro duction of a turn of the century saloon. A large wall of stained glass panels proudly boasted the Association's name. Historical construction draw ings and domestic member company logos graced the area behind the bar. Red-checkered tablecloths, wooden beer kegs and a brass grinder laden with Virginia's best goobers, were placed here and there for atmosphere. Peanut shells and sawdust crunched underfoot in appropriate accompani ment to Busch's best beer. The reason that Bill O'Leary worked so hard was that everyone from the burly contractors to their diminutive daughters wanted crystal "America's Choice" tankards. Seven hundred fifty of them, with and without the liquid contents, were given away in two and a half hours at the social finale for the NUCA '76 Convention. On behalf of the A/C pipe industry, AACPP Executive Director Joe Jackson presented incoming NUCA President Bill Lee with a special pair of drawings commissioned for the "America's Choice" program. One de picts the construction of one nation's most historic water utility projects, the Croton Aqueduct, and the other illus trates a modern "ditchdigging" scene with A/C pipe being installed. The event was well-attended by con tractors and member company per sonnel alike. Representing industry along with AACPP staff were Bruce Eaton (J-M Northeast District Sales Manager), Bill Perrell (CAPCO General Sales Manager and AACPP Industry Promotion Committee Chairman), Al Leff (Certain-teed Product Man ager--Sewer Pipe), Homer Johnson (CAPCO), Marv Watson (J-M), Ken Pankey (CAPCO) and John Warwick (J-M). EPA Releases Results of Asbestos Study The Environmental Protection Agency (EPA) recently announced the preliminary results of a two-year drink ing water survey which found "measurable" amounts of asbestos in treated and untreated water. Dr. Andrew Breidenbach, EPA Assis tant Administrator for Water and Hazardous Materials commented, "The results are varied and inconclu sive due to the limited amount of sam pling in any specific location and the nature of the measurement techniques available for asbestos detection." The findings, which came from the ten cities in which EPA regional of fices are located, are part of a nation wide asbestos sampling program (see PIPE REPORT, Vol. I, No. 1). Samples from 20 other cities are also being analyzed and the results will be re leased shortly. Asbestos fibers were found in the waters of Atlanta, Boston, Philadel phia, San Francisco and Seattle. The actual "fibre counts" (fibres per liter) ranged from a high of 230 x 106 in Philadelphia to lower amounts in other cities. No detectable levels of asbestos were found in the raw or finished wat ers of Chicago, Dallas, Denver, Kansas City and New York. Although Boston, Philadelphia and Atlanta samples exhibited "measura ble fiber levels," other samples taken at the same locations showed little or no asbestos. Such variances em phasize the preliminary and inconclu sive nature of the findings. Further studies will be made to identify the sources of the asbestos. EPA scien tists conjecture that asbestos-bearing rock formations, mining operations and asbestos manufacturing opera tions are the likely sources of fiber in troduction. It should be noted that in all cases, raw water was sampled at the intake side of the water treatment plant and finished water at the discharge side. No samples/measurements were made in the distribution system or at the tap. CAPCO JEN 0031623 4 Pipe Report April 1976 Safe Drinking Water Act--A Tough Act to Follow? (continued from Pg. 1) gineer considered the most effective Water Advisory Council is exactly what its name implies (an advisory commit tee), it carries considerable clout. Like its Clean Water Act counterpart, the National Commission on Water Qual ity, NDWAC may well be a catalyst for any future changes in the Safe Drink ing Water Act. the Safe Drinking Water Act would means of receiving product informa never pass Congress, never work, etc. tion. "From the engineers office, the may now reflect on the old Spanish best sales tool per se is a complete idiom for "never say never." Nunca and concise product catalog that in- (diga de esta agua no bebere. Literally translated, "never say, I will never eludes all the necessary technical in formation with a minimum of `sales drink this water." puffery.'" Not to understate the impor tance of the human factor, he pointed PROFILE (contd. from Pg. 1) out that a truly effective sales repre Rural Water Survey SDWA makes provisions for con ducting a nationwide survey of the quantity, quality and availability of rural drinking water supplies. The Sur vey, in the words of Victor J. Kimm, Deputy Assistant Administrator for Water Supply, is "off to a bad start." EPA has had a difficult time gathering the necessary data to set up a compu ter model to be used in the Survey. These data include the number of residents (1) receiving inadequate public or private water service, (2) hav ing limited access to water, (3) being exposed to an increased health hazard or (4) who have experienced acute or chronic illnesses attributable to an in adequate drinking water supply sys tem. The Rural Water Survey, mandated for completion by June 16, 1976, will probably not be released until De cember, 1976. The "bad start" and press of time will undoubtedly require that the scope of this important work be reduced. If the results of the Survey depict a rural America wanting for better water supply systems, it could well be a shot in the arm for the water pipe industry. Loan Guarantee Program Unknown to many, SDWA says that EPA must implement a loan guarantee program to assist small public water systems in meeting the interim primary and primary drinking water standards. Approximately $50 million was appro priated by Congress to guarantee loans made by private lenders; maximum amount of guaranteed in debtedness may not exceed $50,000. Such funding is available only if the utility cannot obtain financial assis tance elsewhere. This program is not and may not ever get off the ground as it is scheduled to terminate June 30 of this year. After all this, it should not be surpris ing to say that on May 18, 1976, Dick Stanley will become President of the American Consulting Engineers Council. ACEC, the offspring of a 1973 merger of the American Institute of Consulting Engineers and the Consult ing Engineers Council of the U.S.A., is a federation of state and regional councils. It has a national membership of approximately 3,000 fully indepen dent consulting engineers and land surveyors. Member firms range in size from those comprised of a few indi viduals to hundreds of design profes sionals. The majority, however, have 25 or less principals and employees and limit their practice to one or two disciplines of engineering (e.g. mechanical, civil, structural or electri cal). Membership services include government/legislative liaison, domes tic and international relations, scho larship and document assistance pro grams. Problems When asked to characterize the major problems facing the consulting engineering profession, Dick quickly pointed to one of the most painful... the economy. He observed that by the very nature of the business, consulting engineers find themselves on the lead ing edge of any shift in the capital in vestment section of the economy and are thus the first to feel its effects. With conservative optimism, however, he believes that the industry has "turned the corner" and that "barring any major disasters," 1976 will be a good business year. His second area of concern is the increasing regulation of business. "The very manner in which the con sulting engineer practices and designs is being controlled, limited and regula ted more and more," he said. In re sponse to this regulatory activity, he noted that ACEC was expanding and upgrading its government affairs pro sentative basically "has earned the confidence of the consulting en gineer." He provides straight answers that reflect sound product knowledge or quick follow-up if he doesn't have the answer at his fingertips. "En gineers want to keep current on new technical developments and a good salesman can assist him in this re gard." Value Analysis One of the "new" developments discussed was value analysis. Stanley expressed the opinion that value engineering, value analysis, or life cycle costing is becoming an increasingly' more common practice in consulting engineering firms. As a general rule, he pointed out that the larger the job. the more likely that an actual value analysis would be made by the en gineer. "As a matter of fact," he said, "some of our clients insist on value engineering. Furthermore, ACEC itself has conducted VE seminars around the country. It looks like value en gineering is here to stay." As the interview drew to a close, one could not help but feel that Dick Stan ley's personal and professional "philosophy of diversification" would be felt at ACEC ... with equal zeal and equal success. PIPE REPORT To Expand Circulation A recent AACPP Executive Commit tee decision will provide the springboard for broad-based distribu tion of PIPE REPORT. The monthly publication had previously been re stricted to AACPP regular and associ ate members, their salesmen and dis tributors. The request for wider distribution rights was based on increased number of requests from trade associations and federal/state officials with im mediate interests in asbestos-cement water and sewer pipe. The federal Conclusion gram. This effort will rank high in Stan ley's priorities for ACEC. "The Con agencies will include those with which AACPP maintains close liaison (e.g. If you have read the three previous sulting Engineers Council must speak Farmers Home Administration, En PIPE REPORT articles, little doubt with a stronger voice and provide vironmental Protection Agency, De should remain that the Safe Drinking more substantive input in the federal partment of Housing and Urban De Water Act of 1974 is everything they regulation making process, especially velopment, Economic Development said it would be ... "bold, strong and in those agencies that impact directly Administration and Department of far-reaching" ... "an historic turning on our business." Commerce. It is expected that selected point in our national attitudes toward drinking water." It is all this and more. The skeptics (many within the Effective Salesmanship t As an engineer himself, Dick was consulting engineers, contractors and municipal water/sewage works offi cials will also receive PIPE REPORT waterworks industry itself) that said asked what the typical consulting en r I ' on a regular basis. "I CAPCO JEN 0031624 February 1976 His Honor... The Typical Mayor If there were such a person as a "typical" mayor or a "typical" city councilman, what would he or she be like? How old would he be? How edu cated? How much would he be paid? What about their political aspirations? What do they believe to be the most efficient ways to receive information or ideas relating to municipal govern ment? These and similar questions were asked in a comprehensive survey conducted by the National League of Cities (NLC) and U.S. Conference of Mayors. The Survey results, while sometimes startling, provide a rare look into these increasingly important purchasing factors in the municipal market. Mayors The "typical mayor" is from a city of about 25.000 population. He is a white male in his forties (35.8%) or fifties (28.7o) and has either attended col lege (20.6o). has a bachelor's degree (19.8o) or holds a graduate degree (15.6%). Somewhat surprisingly, the poll showed that he was not active in parti san politics prior to his election but rather ran for office in order to "help solve public problems and help people." The difference between "par tisan" and "non-partisan" politics may (Continued on page 4) Volume 2, Number 2 Safe Drinking Water Act- A Tough Act to Follow? This is Part 2 of a special series of AACPP articles on the Safe Drinking Water Act of 1974. Part I provided an overview of the scientific, legislative and media forces that brought SDWA into being. Part 2 discusses the Na tional Interim Primary Drinking Water Standards and their diverse impact on state government and the waterworks industry. EPA Conducts Sewer Pipe Seminar Region IV of the Environmental Pro tection Agency recently completed four one-day "underground conduit seminars" in Atlanta, Georgia. Re gion IV co-hosted this precedent setting effort along with six national pipe associations, including AACPP. The purpose of the seminars was to discuss design, installation, and per formance of underground conduits for sewer systems. Presentations, one each Thursday during February, stressed the technical rather than sales features of each product. The program, conceived by Region IV Administrator Jack E. Ravan and coordinated by EPA's Ray Cook and Bob Loughran, was specifically de signed to assist State and Region EPA staff personnel in the review of sewer project plans and specifications. Re gion IV includes Alabama, Mississippi, Florida. Georgia, Kentucky. Tennes see. North Carolina and South Carolina. AACPP Executive Director Joe Jackson and William Yahn (Manager. Marketing and Sales--Eastern Region, Flintkote) made presentations on be half of the A'C pipe industry. Other participants included the Cast Iron Pipe Research Association, Plastics Pipe Institute, Uni-Bell Plastic Pipe As sociation. American Concrete Pipe Association, National Clay Pipe Insti tute and ARMCO Corporation. Future seminars are scheduled for EPA-Region VI (Dallas) on May 13. 1976, and again at Region IV (Atlanta) for the Southeastern consulting en gineers on May 27, 1976. Part Two Interim Primary Regulations The legislative mandate of the Safe Drinking Water Act (SDWA) authorizes the Environmental Protection Agency to establish minimum drinking water standards to protect public health. Within a specified timetable EPA must promulgate regulations to enforce these standards and concurrently promote a joint Federal-State program for assuring compliance. In March, 1975, EPA published the "proposed" Interim Primary Regula tions for public comment. Major provi sions of the Regulations included: 1. Maximum contaminant levels (MCL's) for certain chemical, biologi cal and physical contaminants. 2. Monitoring frequencies. 3. Methods to notify customers of variances and non-compliance with standards. EPA held public hearings in Boston, Chicago. San Francisco and Washington. D.C. Seventy-seven wit nesses testified and several thousand pages of comments were received. After consideration of all testimony, written comments and available data, EPA on December 12, 1975, formally established the National Interim Pri mary Drinking Water Regulations. These are scheduled to go into effect in June. 1977. Water Systems Covered The Regulations apply to approxi mately 240,000 public water systems. Forty thousand are community sys tems (i.e. they have at least 15 service connections used by year-round resi dents). Based on EPA's public water supply inventory, about 177 million people are served by community water systems. Although community sys tems may be publicly or privately owned, the majority (58%) are public and account for 88% of the nation's total drinking water production. The remaining 200,000 are non community systems such as service stations, campgrounds and similar systems that serve transient popula tions. (Continued on page 3) I1 CAPCO JEN 0031625 2 Pipe Report February 1976 VIEWPOINT; In the Industry - By Our Own Bootstraps We have just completed a year that produced the lowest market demand for water and sewer pipe, in several years. However, we as an industry and a trade association have survived and are perhaps better prepared to cope with future problems due to lessons learned or remembered during the dif ficult days of the past year. We are entering a year that offers promise of some improvement in the overall economic conditions. While this is welcome news, we must re member that one year ago the same political leaders and economists were making similar statements. Therefore, we must not rely too heavily on their forecasts but instead set about doing those things that we know can im prove our industry, that is, to first of all reaffirm our commitment to the pro motion and sale of asbestos-cement pipe products. Secondly, we must carefully review all opportunities to sell A'C into those markets which are presently using competing products, most of which use considerably more of our nation's scarce energy re sources to produce than does A/C pipe. It is interesting to note that ac cording to a recent study, these com peting materials use up to eight times more energy to produce pipe than re quired to manufacture asbestoscement pipe. Thirdly, we have a first rate product to sell that out performs all competing materials, under a wider range of conditions, and does so at a lower cost in most applications. This premise must be sold to all city officials involved in the selection and purchase of water and sewer pipe and, to the degree that we successfully per suade them to use A/C pipe, we will have solved our own economic crisis. The asbestos-cement pipe industry is well-staffed with knowledgeable and dedicated people that can do a profes sional job in making the necessary changes. "Let's make it happen in 1976." W. R. Blankenship is Vice President-- Marketing, Pipe and Plastics Group, Certain-teed Products Corporation and President of the Association of AsbestosCement Pipe Producers. Middle East Budgets Billions for Sewer and Water Government officials in Egypt, Iraq and Saudi Arabia recently announced multi-billion dollar plans for sewer, water and irrigation projects in those countries. Ali A. Alizera. Saudi Arabian Ambas sador to the United States, said that more than $20 billion has been budgeted for water development in Saudi Arabia. The $20 billion is but one segment of a master five-year plan that will total S142 billion in expendi tures. In Cairo, the Ministry of Housing and Reconstruction recently discussed the developent of a $1 billion, 25-year plan for the country's sewer system. Twenty major sanitary engineering companies were at the meeting at which propos als were sought for a 15-month pre liminary engineering program. The Iraqui government has formally solicited bids on a $40 million irriga tion project. The construction site will be in the Lower Kahlis region and will involve potable water, sewer and drainage lines as well as irrigation canals, power plants and associated buildings. Johns-Manville to Explore Asbestos in Sudan The Johns-Manville Corporation has signed a joint venture agreement with the Gulf International Group of Kuwait and the Sudanese government for ex ploration and development rights to possible asbestos deposits in the Su dan. Under the provisions of the agree ment, J-M and Gulf International will explore for asbestos over approxi mately 3.861 square miles in the Blue Nile and Kassala provinces over an 18to 36-month period. If the exploration is favorable, J-M would establish a joint venture for the mining and mar keting of asbestos. The Flintkote Company Board of Di rectors has announced the election of Monte C. Carpenter as President and Chief Operating Officer. Carpenter, who previously held the title of Executive Vice President, came to Flintkote in 1965 as General Man ager of the Building Materials Division. In 1967, he was appointed Vice Presi dent and General Manager of the Building Products Group and in 1971 was elected to the company's Board of Directors. Before joining Flintkote, he was National Merchandising Manager, Building Materials for Montgomery Ward and Co. He is a native of Salt Lake City, Utah, where he attended the University of Utah. VC- .Meettngifand^ Conyentlon^^V- March 30-April 1,1976 WWEMA Industrial Pollution Con ference and Exposition Shamrock Hilton Houston, Texas April 28-May 2, 1976 NUCA Annual Convention Washington, D.C. Association of Asbestos-Cement Pipe Producers Suite 1113 1875 Connecticut Avenue. N.W. Washington, D.C. 20009 President W R Blankenship (Certain-teed Prod ucts Corporation First Vice President- H Taylor (The Flintkote Company) Second Vice President G. Barge (Atlas Asoestos Company) Secretary R W Smith (Johns-Manville Sales Cor poration) Treasurer l L TayJor (Cement Asbestos Products Company) Executive Director Joseph C Jackson Associate Director and Editor John F Welch Ir CAPCO JEN 0031626 3 Pipe Report February 1976 Worth A. Springs Michael J. Harper James R. Plas Flintkote Lauds Top 1975 Salesmen The Pipe Products Division of The Flintkote Company has named Worth A. Springs, Michael J. Harper and James R. Plas for the company's top sales awards in 1975. Worth Springs was the recipient of the Division's top sales award, The President's Cup, for being "the out standing territory manager for the 1975 sales year." The Cup is given an nually to the Flintkote salesman that exhibits professional excellence as measured by sales performance, cus tomer relations, improvement over the previous year and management of time and expenses. He also received the "Top Dollar Award" for the highest sales volume in any Flintkote territory. Mr. Springs is one of the "original" Flintkote salesmen having joined the Company in 1963 when it first diver sified into the A/C pipe business. He lives in Charlotte, North Carolina and was formerly with the Grinnell Co. The "Sale of the Year Award" went to Michael J. Harper in recognition of the outstanding Flintkote pipe sale in 1975. The "Outstanding Improvement Award" was given to James Plas for the most significant improvement in sales over the previous year. Springs, Harper and Plas also re ceived "Mr. Flintite* Awards" for at taining 100% or more of their 1975 sales quotas. Uncle Sam's 1977 Budget for Water and Sewer The Environmental Protection Agency is once again looking for the lion's share of federal dollars for Fiscal Year 1977 water and sewer works con struction. EPA Administrator Russell Train submitted a S718.2 million operating budget, S53 million less than the FY 1976 budget. No new funds were requested for the Con struction Grants Program since the S9.6 billion in unobligated funds should be sufficient to meet antici pated needs through September, 1977. EPA's Office of Water Supply sig nificantly increased its budget from S32.5 million in 1976 to $42.78 million in 1977. Twenty percent of this figure will be available as grants to assist states in assuming "primacy" for safe drinking water programs. The Farmers Home Administration (FmHA) budget for 1977 presently makes no provision for rural water and waste disposal grants. Approximately $250 million was budgeted for this ac tivity in FY 1976 and a S125 million cut is pending in Congress. Safe Drinking Water--A Tough Act to Follow? (Continued from p. 1) MCL's The Regulations establish "max imum contaminant levels" (MCL's) for bacteria, turbidity, radiation and a number of organic and inorganic chemicals. The MCL's are based on an assumed consumption of two liters of water per day. EPA's justification for using the two-liter figure was that it represented an "above average" water or water-based intake and thus pro vided a satisfactory factor of safety. Safety factors applied to the MCL's are not uniform, but are set on the basis of knowledge and experience with the various contaminants. In drafting SDWA, Congress made it clear that "drinking water regulations are intended to be met at the con sumer's tap." The one proviso to this is that a public water system cannot be held responsible for contamination which may be the fault of the con sumer. The final definition of MCL, therefore, provides that "Contami nants added to the water under the control of the user, except those re sulting from the corrosion of piping and plumbing as a result of water qual ity, are excluded Monitoring The Regulations require that all pub lic water systems initiate a two-step monitoring program: (1) routine monitoring to insure MCL's are not exceeded and (2) non-compliance monitoring for cases in which the finished water exceeds one or more MCL. Monitoring frequencies vary ac cording to the size of the population served, so as not to unduly burden small systems. They vary from daily tests for turbidity to annual sampling for inorganic chemicals. In the event a system does net com ply with the drinking water standards or perform proper monitoring, the public must be informed. In such cases, the supplier must notify per sons served by the system by (1) writ ten notice accompanying the water bill, (2) by publication for not less than 3 consecutive days in the local news paper and (3) by furnishing a copy of the notice to local radio and television stations. The appropriate regulatory authority (either EPA or the state) must also be notified. Enforcement Primary responsibility for enforcing the standards when they become ef fective rests with the State govern ment. This is commonly referred to as "primacy." States must adopt and - (Continued on page 4) I- ' 'i CAPCO JEN 0031627 4 Pipe Report February 1976 His Honor... The Typical Mayor (contd. from pg. 1) be purely semantical, however, as a large percentage of mayors previously held pr :tions as city councilmen. The fact th he "typical mayor" has been in offiC'. `or 4.6 years seems to suggest that few are re-elected. Whether this is by choice or political chance is uncer tain. The mayors that responded to the NLC Survey were rather guarded in their hopes about re-election.' Only 31% actually planned to run for reelection. The remaining 69% were un frustrations in mayors and councilmen. The leading frustration, men tioned by 42.9% of all respondents, was excessive time spent away from their families. This was followed by the long hours (37.4%) and "the informa tion glut," i.e. "too much paper to wade through to make decisions." When asked what they thought to be the most effective means to receive new information/ideas relating to gov ernment, they responded in this way: decided (38.2%), definitely not running (28.9%) or just did not answer (1.9%). About 78% of the country's mayors are part-time officials and their aver Mum Conferences Presentation by city staff Mayors Council men 61.5% 55.3% 32.0 40.0 age annual salary of $3,000-84,000 re flects that fact. Those salary levels, in cidentally, have not been changed in Magazines Training courses Citizen or civic groups 20.2 22.7 13.9 30.3 25.0 20.3 over five years. As either a businessman (46.6%) or a professional (15.8%) however, the mayor earns ap proximately 820,000 from private employment. The "part-time" tag on the mayor's title can appropriately be called a mis nomer. The mayor of a city with a population of 10,000-25,000, devotes about 21.5 hours a week to official duties. That figure more than doubles to 50.5 hours for mayors of cities over 100.000 population. And remember that these hours are above and beyond their full-time private occupations. The NLC respondents also named excessive time away from business, low public salary, too many meetings and late night calls as other major sources of irritation in their jobs. What about citizens' complaints? Out of 172 frequent compliants to mayors, dog and other pet control problems led the list at 60.7%. Traffic control problems was second (40.7%) and rezoning third (30.1%). Com plaints about sewer service ranked sixth and water service eleventh. Both mayors and councilmen most fre quently passed "citizen beefs" along Councilmen to the appropriate city department head (51%) or the City Manager In many respects, the profile of the (41.6%). "typical councilman" is strikingly simi lar to that of the "typical mayor." He The Future too is a white male in his forties (37.5%) or fifties (27.3%). As a group, however, councilmen are younger... 21.1% are under 40 as compared to 13.5% in the mayoral category. Educa tional profiles are almost identical with the exception that councilmen hold more graduate school degrees (26.8% versus 15.6% for the mayors). The "typical councilman" was Mayors and councilmen are con cerned, perhaps justifiably, about the future of municipal government. On a personal level, they want the best for their cities and as a group are dedi cated to putting forth their best effort even though most are part-time offi cials and have inadequate office space, staffs and/or budgets. On the political level, inter elected at targe on a non-partisan ticket to a four-year, "part-time" term (94.3%) for generally the same altruis tic reasons as the mayor. His salary ranges from S500-3.000 and as a businessman or professional, he earns S15.000-S20.000 per year. He spends from 12.3 hours per week (10.00025.000 city population) to 40.3 hours per week (over 100.000 population) in the pursuit of municipal respon sibilities. Feminism is becoming a factor, al beit a small one. in both elected posi governmental relations are becoming more and more complex. The power base is shifting away from the city to wards larger government at the county, region, state and federal levels. Many of the officials who par ticipated in the NLC Survey felt that the future of city government is at a crossroad of challenge and responsi bility. One councilman summed it up: "City government can become the principal deliverer of social and public services and can be the principal in novator and experimenter. City offi tions. Women mayors account for only 3.1 % of the nation's total while they constitute 8.8% of the total "council- persons." cials will have to devote more time and develop greater expertise to meet new demands." The Frustrations Paltry pay and a "part-time" job that isn't, can and do produce bona fide Safe Drinking Water (contd. from pg.3) demonstrate the ability to enforce standards at least as stringent as the National standards. If they do not qual ify for primacy, enforcement responsi bility rests with EPA. Asbestos and Organics In its prefacing comments to the Regulations, EPA expressed "con cern" about asbestos in drinking wa ter. An interagency comment noted the need for at least a monitoring re quirement for asbestos. However, EPA countered that "for the moment" they lacked sufficient evidence regarding analytical methods, health effects or occurrence in the environment to es tablish MCL's. In taking this stance, EPA refer enced the 816 million of ongoing studies on asbestos health effects and epidemiology (See PIPE REPORT, Vol I, No. 1 for details.) and concluded by saying criteria for establishing limits would be defined "as quickly as pos sible." For similar reasons, the Regulations do not contain MCL's for organic chemicals other than six pesticides. A 85 million research effort to identify source, distribution and health effects is under way. Compounds selected for inclusion in a nationwide "Organics Monitoring Program" include PCB's, benzene, vinyl chloride, carbon tet rachloride and 18 others. Economic Impact EPA estimates the total capital in vestment required for water systems to comply with these.regulations will be $1.1 to $1.8 billion over a 5-year period. Systems serving 10,000 or more people will pass on an annual per capita treatment cost ranging from $1 for disinfection and lead control to $15-835 for turbidity and heavy metal removal. Generally speaking, treat ment will be responsible for higher cost increases than monitoring. The economic impact on the investor-owned and smaller water sys tems will be significant. The water bill for a household in the smallest sys tems may increase between 810 and 814 per month. An EPA economic analysis predicts that the Interim Regulations will in crease jobs (13,000-27,000 nation wide), stimulate new construction for treatment and distribution facilities and raise the demand for disinfectant/coagulant chemicals. Further, we are told "An informed pub lic will be able to see that such costs are justified by the benefits to be gained." Will the increased costs stimulate the economy and tangibly benefit pub lic health? Or will they pay for adminis trative overhead and red tape? Hackneyed as it may sound, "only time will tell." i* CAPCO JEN 0031628 November 1975' 1976--The Care and Feeding of A Recovery The event was the 36th Building Products Executive Conference and a record-setting crowd packed into Washington's Statler Hilton to hear McGraw-Hill Chief Economist, George A. Christie, deliver the 1976 Dodge/Sweet's Construction Outlook. There were no "good news--bad news" jokes although all the elements were there. The good news was that the eighteen-month downward slide in construction activity has "bottomed out" and a positive turnaround has begun. The bad news was that the re covery appears to be a fragile one and in Christie's words "... without proper care and feeding, it could collapse." The overall tone of the predictions, however, was optimistic. In comparing post-recession 1971 with post recession 1976, Christie carefully noted the Dodge Index of Construc tion Contracts is presently at the same phase in the upswing cycle as it was in mid-1970. Thus, "... industry is again in the position to catch the construc tion market in a strong rebound." Whether or not the 1975 upturn will be the harbinger of peak construction for 1976-77 that 1970 was for 1971-73, remains to be seen. While historically similar, today's outcome may differ for several reasons. Firstly, the downward construction cycle of 1970 ran for ap proximately three quarters, while the '75 downturn went for six. Secondly, the peak to trough decline in 1970 was about 25% in real terms. The 1975 de cline was more than 40%. Thirdly, the current cycle has been and will con tinue to be affected by the "energy crisis." Lastly and most importantly. Presi dent Ford's national economic policy will have far-ranging implications on the extent and rate of recovery. The Administration's primary concern has been in fighting inflation, not reces sion. Unfortunately, "tight money" fol lows on the coattails of such antiinflation strategy. Christie commented that "... unless there is some relaxa tion of present monetary tightness, much of the potential for expansion of the construction industry in the year or two ahead will not be realized." Simply stated, construction cannot proceed without capital. But it is a political fact, not an economic one, that may well dictate stimulation of the economy... 1976 is an election year and politicians may not want to go before the voters hold ing the proverbial empty bag. Continued on Page 4 AACPP to Exhibit in Miami Following in the footsteps of 1974's record turnout, the A/C Pipe Produc ers Association will again exhibit at the 1975 Annual Congress of Cities Exposition in Miami, November 30-December 2, 1975. The Exposition is sponsored by the National League of Cities, the "national action arm of the nation's cities." Its 15.000 mem bers include state municipal leagues, cities with a population of over 30,000, the ten largest cities in each state and all state capitals. A major objective of NLC is to assist policy leaders--mayors, councilmen, city managers and engineers--to do their jobs better and more efficiently. Last year a post-exhibition survey showed that 95% of the convention del egates attended the exhibit hall and 70% visited three or more times. Furthermore, two-thirds of the munic ipal officials actually followed up by forwarding information or recom mending purchases to others in city hall. Continued on Page 4 Volume 1, Number 1 Asbestos in Water--Where Are We? Though less publicized in 1975 than in 1974, the asbestos in drinking water question continues to be a focal point for Association activity. The absence of conclusive data to prove or dis prove the carcinogenicity of ingested asbestos still fans the flames of the controversy. But AACPP, in liaison with the fed eral regulatory community, is taking tangible, positive steps towards resol ution of the problem. Let's review ex actly what is being done. EPA Pipe Test Loop One of the recommendations to come out of the AWWA "Study of the Problem of Asbetos in Water," under written by AACPP, was to determine how much, if any, asbestos fiber was added to water as it passed through A/C pipe. In early 1975, the Environ mental Protection Agency Laboratory in Cincinnati began a controlled ex periment to determine the effects of water aggressiveness, velocity and elapsed time on the release of asbes tos from A/C pipe. Through two sepa rate 90-foot loops of 4- and 6-inch CL 150 A/C pipe, pre-filtered water of known pH and hardness is being cir culated at 3.8 feet per second, 2.6 miles per hour, 433 miles per week. Water is being intermittently sam pled and analyzed by electron micro scopy to determine if asbestos fibers are released. If so, quantity and fiber size distribution by length and type are determined. After each six month run, the pipe is tapped to see if this causes a large release of fibers. As presently planned, the study will run 54 months, although it could be shortened if sam ples show no change. The startup of the loop provided an interesting anecdote when the first highly aggressive water attacked all the metallic components of the system and plated them out on the interior walls of the A1C pipe. The unspoken message in this case was eminently clear: such a water is too aggressive for any distribution system and the Continued on Page 3 CAPCO JEN 0031629 2 Pipe Report November 1975 VIEWPOINT Confidence, Cannibalism and Cast Iron In a matter of days the A/C Pipe Pro ducers Association will convene its >saular-Fall Meeting. If the meeting runjs true to form, there will be much .discussion and speculation about what 1976 holds in store for the indus try. There is, of course, the economy: Will construction activity rebound in the second quarter as predicted? Then too, there is the continuing asbestos and health controversy: Is progress being made in resolving the ingestion question? Also, there is the persistent request for "high industry visibility": When will the Association mount a hardhitting promotional campaign? Other agenda topics range from re cent court interpretations of restrictive specifications and the renewed impor tance of salesmanship, to better defin ing what the real role of the Associa tion should be and how its activities can be of maximum benefit to the in dustry as a whole. Often overlooked in the midst of the chaos created - by immediate prob lems, but of no less concern, is the real and often unspoken need to re store industry's confidence ... confi dence in itself, its people, its product, its future. The sackcloth and ashes at titude which shrouds today's real is sues and saps both individual and corporate initiative must be dispelled ... can be dispelled. The remedy is not all that difficult: one dose of pride in past accomplishments and continuing doses of increased sales and profits. Whatever else may come out of the meeting deliberations, one fact ought to be quite clear: 1976 will be a pivotal year for the industry. Pivotal in the truest sense. A turnabout year ... for the economy, the health issue, the acuity of the industry, the effective ness of the Association. It must be a year which is characterized by a total industry commitment, not partisan dis interest, nor shortsighted can nibalism. A year when the admonition "lead, follow, or get the hell out of the way" must be the way of doing busi ness. not just an off the cuff quip. A year when leadership must not be ex ercised by demand and command, but distinguished by a universal attitude of what can I do to help?... at all levels of management, in all companies. The realities of the marketplace make one other fact equally evident. Even if the economy recovered over night and the health issue was re solved the following day, industry's potential for growth, both over the short and the long run, depends pri marily on one factor: its ability to seriously penetrate competitive pipe markets, ipso facto cast iron. For as Jack McDuff so succinctly put it at the Association's Annual Meeting .. ."They are the real enemy." Given the present fiscal climate in municipalities in the United States, there has never been a more oppor tune time to put "price and pride to gether again." In the final analysis all of the fancy rhetoric in the world will never sell a foot of pipe. Aggressive, knowledge able, enthusiastic salesmanship will! Connecticut, New York Fund Public Works Projects New York and Connecticut have ini tiated major environmental public works programs to spur employment in the hard-hit building and construc tion trades. The $2.7 billion effort in New York, funded from the Pure Waters and En vironmental Quality Bond Issues plus federal water pollution allotments, will result in construction of 202 sewerage projects during the next five years. Under the program, 114 sewage treatment plants and 91 interceptor systems will be constructed. By the end of 1975. the state would initiate S1.1 billion in new project contracts while $1.6 billion would be earmarked for 1976. On a somewhat smaller scale, $15 million in bond funds was provided by the Connecticut Legislature. The funds would be used for more broadbased public works such as road re pair and park improvement, as well as the construction or repair of public sewers. Labor market areas with 7% or more unemployment (March. 1975) would be eligible. The Commissioners of Commerce and Labor will select projects from candidates submitted no later than October 1,1975. In the Industry Atlas As'bestos Company President George Barge announced the ap pointment of Nelson Bain as Vice President of Marketing. Mr. Bain joined Atlas in 1970 and was previously the company's General Sales Manager. Prior to joining Atlas he was President of Asbestos Erectors' of Canada Limited. Mr. Bain succeeds Leonard Falle who as Vice President will assume other corporate respon sibilities. Atlas operates plants in Montreal and Mission, British Columbia, and produces asbestos-cement water pipe, sewer pipe and building materi als as well as high temperature insula tion and reinforced plastic sheeting. v- Meetings and r- Conventions - November 4-5,1975 AACPP Fall Meeting Twin Bridges Marriott Washington, D.C. November 4-7,1975 ASCE National Convention and Ex hibition Denver Hilton Hotel Denver, Colorado November 30-December 2,1975 Annual Congress of Cities and Ex position Hotel Fontainebleau Miami Beach, Florida December 4-5,1975 Pollution Engineering and Equip ment Exposition and Conference International Hotel Los Angeles, California December 7-9,1975 AWWA Water Quality Technology Conference Sheraton Biltmore Hotel Atlanta, Georgia March 30-April 1,1976 WWEMA Industrial Pollution Con ference and Exposition Shamrock Hilton Houston, Texas April 28-May 2,1976 NUCA Annual Convention Washington, D.C. Association of Asbestos-Cement Pipe Producers Suite 1113 1875 Connecticut Avenue. N.W. Washington. D.C. 20009 President. W R. Blankenship (Certain-teed Prod ucts Corporation Vice President H. Taylor (The Ftmtkoie Company) Secretary- R W. Smith (Johns-Manvilie Sales Cor poration) Treasurer: I. L. Taylor (Cement Asoestos Products Company) Executive Director' Joseph C Jackson Associate Director and Editor John F Welch r CAPCO JEN 0031630 t ]3 Pipe Report November 1975 Members of AACPP's Sewer Pipe Task Group listen to Dr. Reynold Watkins (r.) explain the operation of a soil load cell. Shown are (I. to r.) Frank Duffy (Flintkote). Bill Perrell (CAPCO). Ed Spinzig (Johns-Manville), Al Left (Certain-teed). Sewer Pipe Research Nears Completion Utah State University, under a grant from the A/C Pipe Producers Associa tion. is completing research on the structural performance of buried asbestos-cement pipe. The test pro gram, conducted by Dr. Reynold Wat kins and Dr. Al Moser of the Engineer ing Experiment Station, will evaluate load factors as a function of A/C pipe stiffness and bedding conditions. Several classes and diameters of A/C non-pressure pipe were tested to failure in "soil load cell" and actual embankment conditions to substan tiate performance trends discovered in previous research. The "soil load cell" reproduces a trench burial con dition by applying earth loads hydraul ically to the buried pipe. The results of the Utah State work will be evaluated by AACPP's Sewer Pipe Task Group chaired by Mr. Al Leff of Certain-teed Products Corporation. Other members include Frank Duffy (Flintkote), Bill Perrell (CAPCO), Ed Spinzig (Johns-Manville) and Hugh Fraser (Canadian Johns-Manville). Asbestos (contd. from pg. 1) real answer is, therefore, in treatment. In selecting and classifying the nine test waters. EPA utilized the Modified Langlier Index method developed by AACPP. The pipe loop study is well under way and the Association hopes to be able to report soon on interim results. In another phase of the project, EPA is sampling cities where source waters low in asbestos are distributed through A'C pipe prior to use. Analyses of the source and tap waters will demon strate if fiber content increases as it passes through the pipe. Sample sites include cities in Florida, Connecticut, Washington. Texas and Ohio. Prelimi nary results indicate that for waters where the Modified Langlier Indices falls within the guidelines recom mended by the industry and now in cluded in AWWA Specifications C-400 and C-402. asbestos fiber contribution is "not statistically significant" or "below detectable limits." Nationwide Asbestos Sampling Program A nationwide sampling program, scheduled for 1976 completion, is also in progress to determine the environ mental background levels of asbestos resulting from discharge sources. Over sixty sites, including major city water supplies, natural sites of asbes tos rock formations, asbestos mining and manufacturing operations, are being sampled and analyzed for as bestos fiber content. NIEHS Feeding Study In an effort to define the car cinogenicity of orally ingested asbes tos, the National Institute of Environ mental Health Sciences (NIEHS) re cently contracted with Hazleton Laboratories of Vienna. Virginia, and Illinois Institute of Technology to con duct an extensive four-year feeding study. For a lifetime, thousands of rats and hamsters will be fed asbestos. The incidence of tumors will then be com pared against a control group and third group fed a known carcinogen. Whether or not this study will truly answer the asbestos ingestion ques tion remains to be seen. Dr. Paul Kotin, Chairman of AACPP's Medical Advisory Committee, points out that the project involves a single, high dose level of asbestos. Such an ap proach ignores what is called a "dose-response relationship"--that is, how much orally ingested asbestos is required to induce a tumor: a boxcar or a teaspoon? The Association is of the opinion that NIEHS is taking the boxcar approach and the multi-million dollar research may well raise more questions than it answers. Nonethfeless, even at the high ingestion levels planned, the possibility exists that the results will be negative. EPA Epidemiology Study With information supplied by AACPP, its member companies and salesmen, EPA's Water Supply Re search Laboratory in Cincinnati is re searching the incidence and distribu tion of gastrointestinal (Gl) cancers in the State of Connecticut which was chosen for its excellent "tumor regis try." The study will compare cancer frequency in cities using A/C distribu tion systems versus those without A/C. It is obvious that any one or ail of these studies could have significant impact on the A/C pipe industry. How ever altruistic it may sound, the A/C Pipe Industry through AACPP is firmly committed to governmental coopera tion and candor. Unlike our cities, it is our belief that it is more important to supply the answer, than to just raise the question. -1 CAPCO JEN 0031631 4 Pipe Report November 1975 1976--The Care and Feeding of A Recovery (contd. from pg. 1) Residential Building Like other recoveries, the 1975 turn around started with an increase in single family housing starts. By the Third Quarter, one-family starts were at an annualized 900,000 unit mark. Further growth appears to hinge on the continued availability of mortage money in the face of a late 1975-early 1976 "credit crunch." Multi-family housing starts hit bot tom in February and have been stag nant since. However, a three to six month lag between recovery in onefamily construction and apartment building is "normal." Compared with the 1970 apartment boom, construc tion costs have increased 50%, short term interest rates 50%, and long-term rates 30%. These and a 60% boost in fuel and electricity rates weighed against a 25% increase in rental rates, obviously tilt the profitability scales in an unfavorable direction. Christie concluded that 1976 resi dential building would be approxi mately 1,025,000 single-family homes and 500,000 apartments. This total will not match in numbers the 2.1 million mark of 1971, but will cost 15% more. Non-building Construction "Energy" and "public works" were the two big words in non-building construction statistics. $2 billion of Trans-Alaska Pipeline construction and $6 billion worth of electric power plant contracts made 1975 a banner year for utilities. Though stimulated by the release of several billion dollars of Nixonimpounded pollution control funds, the full potential of sewer and water facilities construction has not been realized. Christie noted. In most states, the complex EPA planning and bidding procedures have been hur dled and "strong use in contracting is bound to follow" in 1976. 1976 In A Nutshell Christie summarized by saying that the 1975 turnaround is underway and will accelerate as the economy reacts and industry goes through a "brief period of inventory build-up." The re covery may lag somewhat in the last quarter of 1975 and the first quarter of 1976. This "flat spot," the result of completed inventory adjustment and tight money/high interest, should be followed by a sound 15% increase in overall construction activity in 1976. And McGraw-Hill isn't the only one optimistic about next year. Engineer ing News Record prognostications see an 78% increase in construction activ ity. What About Pipe? McGraw-Hill estimates that the value of 1975 sewer and water con struction contracts will be $6.7 billion. This is a preliminary estimate based on eight months of actual figures and four months predicted. The 1976 fore cast is $7.5 billion, a 12% increase over 1975. More housing starts, the continued availability of Federal Water Pollution Control Act and Safe Drink ing Water Act funds and a growing confidence that the recession is be hind us all indicate that 1976 will be somewhat better than 1975. Penetra tion of competitive pipe markets, as much as the overall economic/ construction climate, may well dictate whether or not 1976 will be a banner year... or just a modest one. Miami (contd. from pg. 1) The AACPP Exhibit received con siderable attention in 1974 and an un precedented amount of literature was distributed. Since less than 3% of the city officials at NLC attended other public works or water conventions, the Association feels strongly that par ticipation in the Annual Congress of Cities can create an "A/C awareness" in the minds of the important munici pal decision makers .. . the decision makers that answer to the taxpayer... the decision makers that face fiscal constraints ... the decision makers that should need A/C pipe. Fiber Hike Planned In the wake of a 40% wage settle ment ending a seven-month strike in the asbestos mining industry, several Canadian asbestos producers an nounced increases in the price of as bestos fiber. Canadian Johns-Manville Co., As bestos Corporation, Lake Asbestos of Quebec, Ltd., United Asbestos Corp. and Cassier Asbestos Corp. have either put into effect or are consider ing 7-15% price increases by the first of the year. The move is considered by many as a "catch-up" to higher prices previously set by Canadian asbestos firms who were not affected by the strike. The Canadian Anti-inflation Board said that the price hike will be studied to insure that they comply with the government's price guidelines. If not, the companies could be forced to roll back the increases. OSHA Proposes New Asbestos Standard The Occupational JSafety and Health Administration (OSHA) has proposed that the standard for occupational ex posure to asbestos be lowered to 0.5 fibers/cubic centimeter for an 8-hour time weighted average. The present standard is 5 fibers/cc, time weighted average. A reduction to 2 fibers/cc would have become effective July 1 1976. The proposed standard would apply to all workplaces where occupational exposure to asbestos is present ex cept the construction industry for which a separate revision will be promulgated. The Association is re viewing the proposed regulations and considering what courses of action to take before the deadline for com ments. Cities Survey Completed The Association, with the coopera tion of its member companies, has fi nally completed its survey of U.S. cities whose population exceeds 1,000 which specify, purchase or have in service A/C water pipe. The survey re sults will be used to launch a highly visible promotional campaign in early 1976. In addition, a cities directory is being prepared for distribution to member company sales personnel. The directory will include the com plete survey results and be accom panied by interpretive analyses. Target date for completion of the directory is January 1,1976. Letters to the Editor Let us hear from you! The AACPP Staff will welcome your sugges tions and constructive criticism on the content, impact and timeli ness of the PIPE REPORT. CAPCO JEN 0031632