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Written by Colorado Green Now
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Monday, May 06, 2024 12:00 AM |
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 HB 1178 Defeated: Local Government Pesticide Control
We extend our sincere appreciation to all GreenCO and ALCC members, as well as our partner organizations, for your unwavering support in defeating HB 1178. We're pleased to share that the bill has been effectively deferred until May 9th, eliminating the need for a vote on the House floor.
This success is a result of the combined efforts of our coalition. Your dedication to opposing this policy is truly commendable, particularly within the context of a Democratic supermajority House.
Looking ahead, the ALCC anticipates potential future attempts to introduce similar legislation. Landscapers and their partners must join together to safeguard our industry against these types of threats. In the meantime, we encourage everyone to express appreciation to the legislators who played a role in this achievement. Keep an eye out for our forthcoming "thank you" action alert, which will guide how to convey your gratitude.
Lastly, we extend a heartfelt thank you to all the lobbyists who tirelessly advocated for this cause. Their perseverance and advocacy efforts have been pivotal in our fight against this bill over the past five years. Your steadfast support is truly appreciated.
Read more in this issue of Colorado Green Now:
new FAMLI requirements
Northern Water releases landscape templates
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Written by Lindsay Nerad
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Monday, May 06, 2024 12:00 AM |
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0n a morning in late December 2021, fire erupted and moved fast, fueled by intense winds, through suburban neighborhoods in Louisville and Superior. When the fire and winds calmed, 1,084 structures had been destroyed.
In the aftermath, a community advocate who lost her home in the fire approached Northern Water to inquire about landscape templates to help in the rebuilding process. In her research, she had discovered a project from Sonoma and Marin counties in California that provided landscape templates to the communities affected by the North Bay Fires of 2017. Northern Water’s Water Efficiency Department began exploring the opportunity and developed a community advisory group formed from municipal employees and homeowners in the impacted areas.
In early 2023, Northern Water hosted an informational meeting to garner insights from community stakeholders, which included employees from Louisville, Superior, City of Boulder and Boulder County. The group included planning, sustainability and fire mitigation experts, as well as a nonprofit organization focused on watershed issues and three community members who had lost their homes. This advisory committee was instrumental in guiding the project.
The meeting revealed several key takeaways, including high interest in following fire-wise principles, supporting pollinators and stormwater quality, managing significant grade variation and slopes, and cost-effective options. Additional topics discussed included a landscape maintenance manual, which is now in development, and a workshop to train contractors and others involved in rebuilding.
Drawing from the Sonoma-Marin landscape templates and advisory committee feedback, Northern Water submitted a request for proposals to develop a package of Sustainable Landscape Templates. Contracting with Norris Design, the firm developed six implementation-ready landscape templates that are designed to be water saving, fire wise, and bird and pollinator friendly. In late 2023, Northern Water and Norris Design released the landscape templates, which include full landscape plans, irrigation plans, plant guide with flammability ratings, water saving estimates, construction details and cost opinions, and a resource package. The templates address various lot needs: two for cul-de-sac lots, three various rectangle-sized lots and one for corner lots.
The Sustainable Landscape Templates pay particular attention to plant material that is not only low water but is beneficial to native pollinators and birds. The templates call for significantly less turf, resulting in 50 percent or greater water savings than a standard Kentucky bluegrass landscape. To keep water efficiency at the forefront, Northern Water requested that no more than 30 percent of the front yard be designated as turf and asked that turf alternatives, such as Tahoma 31, Dog Tuff and native grass (buffalo, blue grama blend) be included as options. In addition, the statement of work requested planting areas consisting of low-water native and climate-adapted plant material.
Fire-wise principles such as choosing fire-smart plant and landscape materials and calling attention to the importance of home ignition zones when placing plants and trees in the landscape were also included. There are several ways to accomplish this, including placing trees a minimum of 10 feet at maturity from a structure and other trees; reducing ladder fuels, such as woody shrubs, under trees; maintaining a 5-foot buffer of no plant material around the home; and using fine rock mulch rather than wood.
Beyond the Marshall Fire
When the final landscape templates were presented at a community meeting in December at the Louisville Recreation and Senior Center, attendance exceeded expectations with standing room only.
In the development of the templates, lot selection was based on actual lot conditions in the areas burned by fire. Because much of the rebuilding was taking place in unincorporated Boulder County, it was suggested that at least one of the templates reflect a large lot. Of the five remaining lots, two are pie-shaped cul-de-sac lots, one of which is modeled from a walkout basement with significant grade changes sloping towards the back, and the other with significant grade changes sloping towards the front. One small rectangle lot was modeled from the Sagamore neighborhood in Louisville, one from a standard rectangle lot and one from a corner lot. The intent was to capture as many unique landscape conditions as possible. Two of the plans have no front yard turf, and two incorporate a dry creek bed to move and better utilize natural precipitation on the landscape.
Northern Water and Norris Design teams worked methodically to ensure that plants called out in the templates were largely native to Colorado or the region to create resilient and ecologically diverse landscapes that not only look beautiful but provide ecosystem services and benefit wildlife. The plant list also includes individual plant flammability ratings taken from Idaho Firewise guidelines.
Moving forward, Northern Water will continue to develop materials around the templates and promote them as a new paradigm for residential landscapes. While the templates were designed for those impacted by the Marshall Fire, it is Northern Water’s hope that they be adopted by homeowners’ associations, developers, and individual homeowners throughout Colorado.
You can view the Sustainable Landscape Templates at northernwater.org/sustainablelandscapetemplates
Read more in this issue of Colorado Green Now:
H-2B Update
new FAMLI requirements
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Written by Vicky Urland
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Tuesday, April 23, 2024 12:00 AM |
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Gazing out over the massive mounds of soil, mulch, gravel, and other landscaping and building supplies on the multiacre Colorado Materials property in Longmont, it’s hard to believe the business started in a basement. And not a basement in a building on a construction site or industrial property. An unfinished basement in Chris and Meighan Kerr’s home.
“My desk sat on the concrete floor next to a portable heater,” says Colorado Materials Finance Director Delaney Lawless, Meighan Kerr’s sister. It seems impossible to start a materials company with no space to store the actual materials, but Chris Kerr, who has a background in landscape supplies and trailer sales, believed he could provide better customer service than other materials providers. Using his extensive contacts, he launched Colorado Materials in January 1999 as a broker, transporting materials from suppliers—pits and quarries—to contractors.
For the first few years, Chris and his then wife, Meighan, ran Colorado Materials from their basement, with Lawless assisting on the business end and Chris’s brothers working in sales. Meighan, a certified public accountant, not only balanced the books, but also brought in income from her job with a CPA firm in Boulder. “It truly was a family business because we were the only ones who wanted to work in the owners’ basement,” Lawless jokes.
An organic business plan
As Colorado Materials celebrates its 25th year in business, Lawless says it has expanded organically, capitalizing on opportunities when they arose. In 2002, three years after they launched the business, the Kerrs were offered good deals on large amounts of rock and other building supplies. That spurred them to make the leap from a basement brokerage to leasing land so they could stockpile products.
In about 2008, the Kerrs purchased land near the Longmont space they leased. In the ensuing years, they bought adjoining land, and for the last decade have owned about 13 acres along Longmont’s Boston Avenue.
“There’s been just such a steady climb over the last 25 years,” Lawless says. “We didn’t pursue growth—it just came to us. I think our growth has been comfortable without having a whole lot of extra risk.”
That growth includes expanding the product mix. In the early years, Colorado Materials focused on bulk goods like rocks and soils. Now, it carries more items that cater to smaller landscape customers, like patio tiles and pavers. Colorado Materials also offers wood mulch, compost, base and sand, retaining-wall materials and cinderblocks, ice melt and winter products, building materials like timbers and concrete and masonry products, and landscape supplies and tools.
“Our customer focus is contractors and installers of all sizes. The retail side, the homeowner business, has grown in the last few years and now is maybe 20 percent of our business,” Lawless says. As landscaping philosophies in Boulder County have changed, Colorado Materials has also adapted. Today, it’s a certified vendor of Rooflite, a green media used on living roofs. About a decade ago, Colorado Materials partnered with a dairy farm in Loveland to make Colorado Analytical Laboratories-certified Class II compost from the farm’s animal waste and clippings. The result is CMI Organics, a division of Colorado Materials.
All in the family
Of course, the grass hasn’t always been green for Colorado Materials. The 2008 housing crisis resulted in business pullbacks. In 2013, heavy rains flooded the yard and washed away many of the materials. And about a decade ago, Chris and Meighan Kerr divorced.
The Kerrs still run the business together— Meighan in the back of the house and Chris in operations. “I think it’s one of those things where you decide we’re going to do this and make it work. They keep things professional and not contentious,” Lawless says.
While the Kerrs don’t yet have a succession plan, they have children in their 20s and also think of their employees as family. They give loans and flexible time off to their workers, along with more standard benefits like 401Ks and paid health insurance. A handful of the 40 employees have been with the company for more than 10 years, and Lawless says most of the staff treats the business like they own it.
Colorado Materials also gives back to its community in multiple ways, including supplying materials for the Longmont Veterans Community housing project and the Niwot High School baseball field. On June 14, the company will celebrate its quarter-century anniversary with a community-wide hog roast.
“Twenty-five years for a family-owned, local company—we feel like that’s a big accomplishment,” says Sales Director Emil Anastas
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Written by Steve Coughran
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Tuesday, April 23, 2024 12:00 AM |
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When I owned a landscape company, I made the grave mistake of not paying attention to macroeconomic trends and financial markets. In 2007, amidst the housing market boom, I failed to comprehend the significance behind these indicators. Had I been more vigilant, monitoring trailing building permits as depicted in Exhibit 1, I would have recognized the decline in permit issuance, a leading indicator of housing starts and ultimately the demand for new landscape projects. Instead, I made the misguided decision to acquire trucks, skid-steers and other equipment, anticipating another record-breaking year of construction. This proved to be a significant misstep.
Since this humbling experience, I have dedicated myself to never repeating the same blunder. I developed a comprehensive dashboard featuring key economic indicators presented in a trailing twelve-month format, effectively eliminating seasonality while helping users comprehend the narrative behind the numbers. These resources are available for free when you join boostingyourfinancialiq.com.
I strongly advise closely monitoring essential economic indicators such as the consumer price index (Exhibit 2), which tracks inflation trends, alongside other leading indicators like building permits, new home sales, vacancy rates and national construction spend, among others. By diligently observing and interpreting these indicators, you can make informed decisions, strategically positioning yourself for continued success in the dynamic landscape industry.
Here are steps you can take to remain ahead of the curve.
1. Regularly review and update your rates.
During the busy season, client meetings, bids and managing your team can become overwhelming, but it’s essential to maximize your earning potential within our region’s short 26-week growing period. With so much on your plate, it can be difficult to find time to focus on the numbers.
You may find yourself thinking you’ll address it during the winter when things slow down, but this can create problems. Consider a scenario where you have 100 field employees who, on average, work 2,000 hours per year, totaling 200,000 labor hours. Throughout the season, you may give out raises, experience increased insurance costs and face higher employment taxes. As a result, your hourly rate increases by an average of $2. If you continue bidding projects without adjusting your hourly rate and labor burden, you could end up losing at least $400,000 over the year (a $2 per hour increase multiplied by 200,000 labor hours). That’s a significant loss.
I recommend conducting cost analyses at least once a month, especially in times of inflation. If you don’t have the resources internally, it’s worth hiring an external expert. Additionally, ensure you have current labor rates for different timeframes (six months, 12 months and 18 months ahead) to use when bidding projects in the future. Adjusting your pricing to account for anticipated cost increases is crucial. It’s also wise to learn from successful contractors who are modifying their contracts to address inflation.
2. Negotiate favorable contracts to safeguard your profitability
I recently spoke with several accomplished contractors who have implemented effective strategies to safeguard their businesses against high inflation. Myles Coughran, the owner of Colorado Design Build, has reduced the time bids remain valid from 60 to 30 days. This strategy encourages potential clients to engage with his company promptly while protecting his business from being locked into a volatile cost environment.
Greg Bobich, co-founder of Watermark Landscape and Design, is including escalation clauses in some larger projects to account for potential material cost increases and states in all new contracts that the proposal remains valid for 30 days from issuance. Judd Bryarly, CEO of Timberline One, emphasized the importance of incorporating escalation clauses into proposals and contracts to mitigate the impact of fluctuating material prices.
By following these examples, you can protect yourself contractually against rising prices.
Engage in monthly strategy review (FSR) meetings.
To stay well-informed about your business, I recommend establishing a dashboard to track key performance indicators such as cash flow, throughput, backlog, gross margin and net margin, among others. Think of this dashboard as the instrument panel a pilot uses while flying a plane. It would be absurd for a pilot to climb onto the wing mid-flight to check the landing gear, but many business owners rely on sheer determination and heroics instead of combining data with intuition. In addition, it is essential for you and your management team to regularly review the income statement, balance sheet and statement of cash flows, both on a monthly and trailing twelve-month basis, to eliminate seasonality and identify genuine trends.
To keep your strategy on track, it is imperative to clearly define your strategic problem— the obstacle preventing your company from achieving its purpose and vision. This might be a need to reduce costs because profit margins are decreasing while intense market competition prevents price increases. Once you have a well-defined strategic problem, you can establish focused strategic initiatives that will help your company overcome the identified challenge.
With your financial dashboard, financial reports and strategic initiatives clearly outlined, you are ready to hold monthly FSR meetings, which involve reviewing financial performance and adjusting the strategy accordingly. The most successful companies consistently build, measure, learn and take action to improve performance.
Boost your financial literacy skills
Financial literacy is a crucial skill for individuals at all levels within an organization. I am not referring to being a numbers-oriented person in the back office, but I am emphasizing the ability to interpret key financial statements, comprehend the story behind the numbers and take precise actions to drive greater value.
In the landscaping industry, if you are unaware of the financial drivers that impact your business, your hard work may be in vain. Take profitability as an example. While it is a common approach for business leaders to reduce overhead costs to increase profits, it can actually harm the long-term sustainability of your business if not executed correctly.
Exhibit 3 shows that the most effective value driver in the landscaping industry is increasing prices. But if the perceived value does not exceed the price, customers will not make a purchase. Therefore, it is essential to have a well-developed strategy in place that enables delivery of an exceptional customer experience, high-quality products or services and establishment of a strong brand. On the other hand, failing to adjust your pricing for inflation, as previously mentioned, can have a detrimental effect on profitability. This highlights the critical importance of financial intelligence in running a successful business. |
Read more in this issue of Colorado Green Now:
Meet a new member
Colorado Materials celebrates 25 years
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