Builders

utlook

www.elpasobuilders.com

2015: issue 5

MARKET WATCH: Housing starts surge 20%

By Ruth Mantell, Market Watch
WASHINGTON In a show of housing-market
vitality, the pace of construction started on new
U.S. homes in April jumped to the strongest level
since the onset of the Great Recession, the
government reported Tuesday.
Construction started on new U.S. homes sprang
up 20.2% in April to a seasonally adjusted annual
rate of 1.14 million. Thats the biggest monthly
percentage gain in more than 24 years and the
highest level since November 2007, the U.S.
Commerce Department reported.
The April data also strengthen the view that the
weakness in February and March was largely
transitory and likely caused by harsh weather
conditions, Robert Wetenhall, an analyst with
RBC Capital Markets, wrote in a research note.
Starts for single-family homes rose 16.7% to an
annual rate of 733,000, the fastest pace since
early 2008, while starts in buildings with at least
five units jumped 31.9% to a pace of 389,000.
Economists particularly like to see growth for
single-family-home building, which costs more and
creates more jobs than building one apartment.
Thats why Tuesdays data on single-family homes
were particularly heartening, said David Crowe,
chief economist of the National Association of
Home Builders.
Home buyers have been reluctant to buy until
there is a clear sign that the economy, and more
particularly their own future, is more positive. As
employment grows and some wages increase and
as home equity improves, some of those
households break out of their concerns and are
beginning to shop for a new home, Crowe said.
Tuesdays strong report leads to a key question:
Was April just a blip?
It may prove difficult to sustain the April pace of
1.135 million units in the near term, as it
undoubtedly includes some delayed
groundbreaking, said Stephen Stanley, chief
economist at Amherst Pierpont Securities.
Its also worth noting that there was a
confidence interval of plus-or-minus 14.4% for
Aprils overall starts growth of 20.2%, showing that
there may have been a much narrower increase
(or a much larger increase) in construction than
the headline numbers stated.

There are multiple

reasons for builders to
be hopeful about 2015
sales. Young families
and other first-time
buyers are tip-toeing
into the market, a trend
that will support the
broader economy and
other homeowners who
want to buy a new
place.

As always a large confidence interval suggests

avoiding euphoric celebration, said Gregory
Daco, head of U.S. macroeconomics at Oxford
Economics.
Still, there were several strong elements to
Aprils report that signal that the market is healing,
though perhaps at a less frenzied pace seen in
Tuesdays data. The annual pace of permits for
new construction, a sign of future demand, sprang
up 10.1% to 1.14 million, the most since mid2008. The pace of permits for single-family homes
rose 3.7% to an annual rate of 666,000, while the
pace of permits for apartments rose 20% to
444,000.
There are multiple reasons for builders to be
hopeful about 2015 sales. Young families and
other first-time buyers are tip-toeing into the
market, a trend that will support the broader
economy and other homeowners who want to buy
a new place. Further, applications for mortgages
to buy a home recently hit the fastest pace in
almost two years.
However, major stakeholders in the housing
industry still have concerns.
Builders have lost some confidence in current
sales of single-family homes, signaling wariness
over whether families are ready to take the plunge

into the new-home-buying pool, according to a

Monday report. Rising home prices and weak
income growth arent helping home sales. Neither
are the strict lending standards that banks have
set in the wake of the financial meltdown, as they
look to protect themselves from legal and financial
risks of making mortgages. Shares of builders fell
in recent weeks after companies reported
disappointing news about margins, even as orders
rose.
Analysts are conflicted about the fate of
builders. One brokerage recently downgraded
shares of seven home builders, reasoning that
they typically lag the broader market during the
summer. Elsewhere, Morgan Stanley researchers
reported that builders may be in a relatively good
position this year, thanks to a strengthening
economy.
Economists polled by MarketWatch had
expected an overall April starts rate of 1.03 million,
compared with an originally reported rate of
926,000 in March. The government revised
Marchs starts rate to 944,000.
Total housing starts remain far below an
average pace of about 1.5 million over the 20
years leading up to the housing bubbles 2006
peak.

Continued Growth
Building Permits Hit Seven-Year High
Forbes- Groundbreakings on new homes rose
by a dramatic 20.2% in April and permitting hit a
seven-year high, the U.S. Commerce Department
said Tuesday. The numbers suggest that
the ongoing inventory shortage holding back the
housing recovery should ease in coming months.
Housing starts stood at a seasonally adjusted,
annual rate of 1.14 million in April. That pace is
9.2% higher than the rate of 1.04 million in April
2014. Tuesdays numbers surpassed
expectations of economists surveyed
by Bloomberg ahead of the release.
Single-family housing starts in April rose 16.7%
above the level in March, hitting a (seasonally
adjusted, annual) rate of 733,000. Starts on
buildings with five or more units were up by 32%
in April, to a (seasonally adjusted, annual) rate of
389,000.

April also marked the highest level of permitting

the nation has seen since June 2008, when the
(seasonally adjusted, annual) rate was 1.18
million. The number of building permits issued in
April rose 10.1% over March, to a seasonally
adjusted annual rate of 1.14 million. That rate
was 6.4% higher than a year earlier, when the
estimate stood at 1.07 million. Single-family
permits were up by 3.7% in April compared to
March at a seasonally adjusted, annual estimate
of 666,000. Buildings with five units or more hit a
permit rate of 444,000 in April, up 20% compared
to March.
Despite the strong numbers, builder confidence
in the market for newly constructed, single-family
homes fell two points in May to a level of 54,
according to the latest National Association of
Home Builders/Wells Fargo Housing Market

Index, released Monday. However, a reading of

50 or higher means that more builders rate
conditions are good than poor; the measure has
now hit that mark for eleven consecutive months.
Consumers are exhibiting caution, and want to
be on more stable financial footing before
purchasing a home, said David Crowe, NAHBs
chief economist. On the bright side, the HMI
component measuring future sales expectations
has been tracking upward all year, mortgage
rates remain low, and house prices are
affordable. These factors should spur the release
of pent-up demand moving forward.

Builders Outlook

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2015 issue 5

2015 issue 5

Builders Outlook

Presidents Message
Edgar Montiel
President,
El Paso Association
of Builders

One of my responsibilities as
President of the association is to write
the monthly Presidents Messages
and each month I am astonished at
just how much our association is
doing for our industry and members.
House Bill 1736 by Rep. Jason
Villalba (R-Dallas) recently passed
both the House and Senate and
awaits Governor Abbotts signature.
This bill puts the adoption of energy
code updates by the state for
residential construction governed by
the International Residential Code on
a minimum six year cycle. In short, the
biggest thing that this helps curb is the
adoption of the new Energy Code
requirements that would have cost
builders on all newly constructed
homes. I would like to think that
everyone that attended this years
Rally Day played a major role in

WHATCHA What the EPAB Is doing

building support for this bill with our

Representatives and Senator. If you
run in to someone that attended give
them a high five.
Our
Assessment
Committee
recently to discuss how assessments
are calculated and invoiced. The idea
is to simplify the process and increase
the revenue in to the association.
Once a plan is in place we will present
this to our board for a vote and then to
our members if adopted. Our
preliminary discussions have been
very productive and we are all super
excited with where we are headed.
The washer tournament was a huge
success and a ton of fun. I, for one,
had never played it in my whole life
but was pleasantly surprised at how
entertaining it truly was. Nineteen
different teams participated and Team
Interceramic, consisting of Samira

Gonzalez and Roberto Rubio,

ultimately won the tournament. I
would like to thank our major
corporate sponsors Lone Star Title,
Foxworth-Galbraith, and Tropicana
Homes for helping make the event
possible. I would also like to recognize
the t-shirt sponsors Randall Smith
CPA, Interceramic Tile and Stone, and
Haskins Electric.
Our Board and General Meetings
will be on June 10 at the El Paso Club.
Our board of directors will meet at
11AM and the General Meeting will
follow at noon. Our guest speaker will
be Mr Dean Inniss, President and
COO of Rocky Mountain Mortgage
Company. Mr. Inniss is a major asset
to our industry and will provide insight
in to local mortgage financing
happenings. He brings over 30 years
of experience in the field so be ready

to soak in all of the invaluable

information that he will be presenting.
Something that I would like to put on
everyones radar are the new CFPB
closing rules and regulations that will
be affecting all of us beginning August
1, 2015. There will be new
documents, steps, and timeframes
that will impact ALL closings after
August 1, 2015. If you havent already
done so, get with your title company to
go over the new policies as soon as
possible.
In closing, the hot summer months
are upon us so make sure to tell your
employees and contractors to stay
hydrated and safe. As always, I wish
all of you the best with your
businesses.

HOME
O F

T E X A S

Builders Outlook

2015 issue 5

Perspective
Ray Adauto,
Executive
Vice President
EPAB

Ive got a few things Id like to write

about this month because it was a month
of ups and downs, personally and
professionally. Let me give you the ups
first because these things are important to
the membership as a whole. Our
association is staying pretty steady as far
as membership and while that is normally
interpreted as good we cant safely stay
where were at and accomplish what we
need to do. I know that some of our
detractors, and perhaps even you, wonder
what I am getting for my money. Its a
matter of relevancy and every organization
from the church to the civic clubs,
associations suffer the same questions.
The leadership questioned this at our
recent board meeting, not to complain but
to get a handle on what to tell those nay
sayers or better yet what to present to
potential members as proof that your
investment in the association pays
dividends. To that end we are
commissioning a simple one page handout
that you can have printed or send via
email. In it we list some of the most recent
accomplishments in working to keep you in
business. We will highlight our efforts at
the city, the state and the national scene.
While weve been working on this issue of
the Outlook we got a great report out of
Austin about the strong support we got on
important legislation that will significantly
impact construction, mainly to do with

The value of membership and the loss of friends

energy codes or codes in general. Our
efforts for the industry will give our
members a better opportunity to build to
codes that wont be placed out there at the
whim of a political subdivision, i.e. the city
or county. Codes are where I think we
have been most effective, from the fire
sprinkler debate to the ability to delay
unnecessary codes locally. The cost
savings per house is in the thousands of
dollars just on the fire sprinkler work,
meaning again that our members and
staffs have had a significant savings
passed on to you and the consumer.
There isnt a single member of the El
Paso Association of Builders who isnt
affected positively by this. So are nonmembers. The difference here is that the
non-member is letting others carry the
ammo if you will, pay for it and work on it
while sitting back and getting the rewards.
Moochers is what my dad would call them,
others use less kind words. Your
membership dollars help pay for the lobby
teams at the state and U.S. Capitol and
frankly there arent many businesses in El
Paso that could do that on their own.
Membership allows the smaller business to
have equal footing with the multinationals,
something very rare in todays business
world. Its by the power of uniting for a
purpose that makes associations like ours
work. It isnt cheap to do this kind of work
and frankly weve been holding back on

talking or doing something about that for a

while. Our leadership knows this and is
working on ideas on how to be able to
continue the work with the rising costs of
doing so.
Some more of the good stuff: The
association tried something new this
month as well, a washer (or watcha)
throwing contest. The initial concerns
turned into a great result because of our
partners. TrusJoist showed us how to put it
on and set it up. Lone Star Title partnered
with us to make sure we actually could.
Foxworth Galbraith partnered on the food
and beverages, and then our t-shirt
partners made sure we had a real sense of
team. They were Haskins Electric,
Interceramic Tile and Stone, and Randall
Smith CPA. Because of their support we
handed out some very nice wicky shirts
that are comfortable and wick up sweat
like a sponge. Our 19 teams had a great
time and our chef, Chris Morales of Sierra
Title did the hot dog cooking, Gina Avila
from Morrison Supply helped registration.
Margaret was the admin in charge as
always. It was especially cool to see that
this tournament brought in old and new
members together in a classic competitive
event where all appeared to have had a
blast.
So that was some of the good things
that happened this month. We did
however experience some not so good

news. First we learned of the passing of

Jack White, a longtime member who
supported the association for decades. We
also lost a past President, Zeke Zar,
another longtime supporter and friend.
May they rest in peace. We had a
lightning strike at the office the night of the
washer tournament and that strike killed
our PBX phone system. Speaking of
phones my cell phone was lost and never
returned in spite of knowing where I lost it
and hoping someone with a little sense of
honor would return it. If you have ever
experienced losing a cell phone you
understand my frustration and anger. Our
office phones are a work in progress right
now so please bear with us.
Summer has arrived and we will be busy
throughout the upcoming months. We will
start to decipher our wins and losses at the
Texas Legislature and figure out where we
need help. We are doing the same with the
city of El Paso, working with the City
Managers office to make sure were at the
table and not the main course. Well help
our brethren in Austin, Houston, DFW and
other areas struck by the torrential rains
and subsequent floods. If nothing else Ive
found that we are resilient and quickly turn
adversity to advantages because of our
purpose in life and our ability to call on
you. Thank you for your membership.

2015 issue 5

Housing Production
Jumps 20.2 Percent
Nationwide housing starts rose 20.2
percent to a seasonally adjusted
annual rate of 1.135 million units in
April from an upwardly revised March
reading, according to newly released
data from the U.S. Commerce
Department. This is the highest level
of housing production since November
2007.
Both housing sectors registered
production gains this month. Singlefamily housing starts increased 16.7
percent to a seasonally adjusted
annual rate of 733,000 in April while
multifamily starts rose 27.2 percent to
402,000 units.
Our builders tell us that consumers
are slowly returning to the market,
said NAHB Chairman Tom Woods, a
home builder from Blue Springs, Mo.
This months report shows release of
pent-up demand and evidence of a
sustainable housing recovery.
The April gains make up for the

Builders Outlook
production dips we saw in the past
two months, but single-family housing
is still only about halfway back to what
could be considered a normal market,
said NAHB Chief Economist David
Crowe. With low interest rates and
affordable home prices, we expect
more upward momentum in the
months ahead.
Combined single- and multifamily
starts were up in three out of the four
regions in April. The Northeast posted
an 85.9 percent gain, the Midwest
rose 27.8 percent and the West
increased 39 percent. Housing
production dropped 1.8 percent in the
South.
Overall permit issuance rose 10.1
percent in April to a rate of 1.143
million.
Multifamily permits registered a 20.5
percent gain to a rate of 477,000 while
single-family permits increased 3.7
percent to 666,000.
Regionally, the Northeast, South and
West posted respective permit gains
of 38.8 percent, 9.9 percent and 3
percent. Permits dipped 1.3 percent in
the Midwest.

Builder Confidence
Falls Two Points
Builder confidence in the market for
newly built, single-family homes in
May dropped two points to a level of
54 on the National Association of
Home Builders/Wells Fargo Housing
Market Index (HMI) released today. It
is a nine-point increase from the May
2014 reading of 45.
Despite this months slight dip,
builder confidence in the new home
market remains above the 50-point
benchmark, said NAHB Chairman
Tom Woods, a home builder from Blue
Springs, Mo. Overall, the second
quarter of 2015 is shaping up to be
very solid.
Consumers are exhibiting caution,
and want to be on more stable
financial footing before purchasing a
home, said NAHB Chief Economist
David Crowe. On the bright side, the
HMI component measuring future
sales expectations has been tracking
upward all year, mortgage rates

A W A R D E D

TEXAS BUILD E R O F THE Y E AR

remain low, and house prices are

affordable. These factors should spur
the release of pent-up demand moving
forward.
Derived from a monthly survey that
NAHB has been conducting for 30
years, the NAHB/Wells Fargo Housing
Market Index gauges builder
perceptions of current single-family
home sales and sales expectations for
the next six months as good, fair or
poor. The survey also asks builders
to rate traffic of prospective buyers as
high to very high, average or low
to very low. Scores for each
component are then used to calculate
a seasonally adjusted index where
any number over 50 indicates that
more builders view conditions as good
than poor.
The indexs components were mixed
in May. The component charting sales
expectations in the next six months
rose one point to 64, the index
measuring buyer traffic dropped a
single point to 39, and the component
gauging current sales conditions
decreased two points to 59.
Looking at the three-month moving
averages for regional HMI scores, the
South and Midwest each rose one
point to 57 and 55, respectively. The
Northeast fell by one point to 41 and
the West dropped three points to 55.
Editors Note: The NAHB/Wells
Fargo Housing Market Index is strictly
the product of NAHB Economics, and
is not seen or influenced by any
outside party prior to being released to
the public. HMI tables can be found at
nahb.org/hmi. More information on
housing statistics is also available at
housingeconomics.com.

2013
New-Home Sales
Rise 6.8 Percent

We build so you can GROW

Sales of newly built, single-family

homes rose 6.8 percent to a
seasonally adjusted annual rate of
517,000 units in April, according to
newly released data from HUD and
the U.S. Census Bureau.
Sales are moving forward and our
builder members are telling us they
are starting to see more activity as
more buyers get off the fence and
enter the marketplace, said Tom
Woods, chairman of the National
Association of Home Builders (NAHB)
and a home builder from Blue Springs,
Mo.
Following an unusually low sales
report in March, todays numbers are
consistent with other data weve seen
recently and indicate a continuing,
gradual improvement in the housing
market, said NAHB Chief Economist
David Crowe.
Regionally, home sales were mixed,
rising 36.8 percent in the Midwest and
5.8 percent in the South. The
Northeast posted a 5.6 percent
decline and the West fell 2.3 percent.
The inventory of new homes for sale
edged up to 205,000 units in April.
This is a 4.8-month supply at the
current sales pace.

Builders Outlook

2015 issue 5

The Economy

Crudely Speaking
Historically, the price of West
Texas Intermediate Crude (WTI)
has always
been slightly
higher than the
price of North
Sea Brent
Crude, the
major
benchmark off
which twothirds of the
worlds
Elliot Eisenberg
internationally
traded crude oil is priced. WTI has
historically been more expensive
because it is light sweet crude,
meaning it contains less than 0.5%
of sulfur and is considerably lighter
than water and lighter than any
other crude oil, and therefore the
worlds most valuable oil.
Despite possessing these very
desirable physical characteristics,
for the last several years WTI has
regularly traded for less, sometimes
much less, than Brent. This
situation is not only detrimental to
American oil exploration and
production firms but also US

households. Interestingly, this

situation can be easily righted if
only Congress would pass
legislation. Let me explain.
Until 1973, US oil, like all other
goods and services, could be easily
exported. However, an export ban
was imposed after the 1973 Arab
oil embargo in an attempt to
prevent future oil shortages and
arguably to help the US gain
energy independence. For
decades the ban had no obvious
impact as the US was a huge oil
importer. But now due to hydraulic
fracturing and horizontal drilling, the
US now produces about twice as
much oil as it did a few short years
ago and is now the worlds second
largest oil producer.
Because the US used to import
large quantities of oil, and because
due to geography and politics the
imported oil was primarily heavy
sour crude, most American
refineries are ill equipped to refine
the high quality WTI coming from
the new and newly-invigorated US
oil fields. As a result, US crude oil
is quickly filing up storage tanks

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and in the process driving down the

price as domestic supply vastly
exceeds refiner demand.
If Congress were to lift the export
ban, the price of WTI would rise to
the world price, which would
expand domestic oil exploration
and production and increase rig
counts and employment in the oil
patch. Counterintuitively, it would
also reduce the retail price of
gasoline. This is because gasoline
is tied to the price of Brent, since all
refiners except American ones
distill crude into gasoline from oil
priced off of Brent.
Because the export ban does not
cover distilled products like diesel,
gasoline and jet fuel, the price
American refiners charge for
distillates is the world price, even
though the crude they purchase is
cheaper due to the export ban on
domestic crude. Gasoline here and
abroad would thus be cheaper
because the release of more US
crude onto the world market that is
now bottled up onshore due to the
export ban, would reduce, albeit
slightly, the price of Brent, and in

ome
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the process slightly reduce the

price of distillates including
gasoline.
Of course there is never a free
lunch in economics. Were the
export ban lifted, the losers would
include domestic refiners as they
would pay more for crude, and
foreign oil producers such as the
Saudis, Russians, Canadians and
others as they would receive
slightly less for theirs. That said,
repealing the ban makes sense. It
would save US consumers money
and slightly increase returns to
investors in the oil patch. And if the
Saudis are unhappy, they can recall
that the export ban only exists
because they embargoed us 40
years ago!

Elliot Eisenberg, Ph.D. is President of

GraphsandLaughs, LLC and can be
reached at Elliot@graphsandlaughs.net.
His daily 70 word economics and policy
blog can be seen at www.econ70.com

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2015 ISSUE 5

Builders

Builders Outlook

utlook on the scene |

Build Pac Washer Tournament a hole lot of fun

By Ray Adauto, EPAB
When the idea of a Washer Throw
tournament first came around we werent sure
how to go about doing one and whether or not
our members would be interested. We talked
with other Texas Builders associations to find
out what kind of reception they had in doing
one coming away with surprising answers.
Seems like the idea of throwing washers, or as
we like to call them here watcha, overrode any
misconception that this kind of event wouldnt
be fun. As a matter of fact what we found out
was that the associations had some really
outrageous story to tell. Now we have our
own.
Lets start with the idea of what is a washer
throwing contest. For the uninitiated the idea
is to throw a specific size metal washer certain
distance and drop it into a hole. Traditionalist,
like our own Tony Mullen at MTI Ready Mix
has been throwing watchas for years at
company sponsored tournaments. There the
idea is drop the washers into a PVC pipe flush
with the dirt and thrown from a fair distance,
something like 25 feet away. After watching a
recent outing there is a certain skill set
required to be good at that throw. It normally
involves guys with years of experience
throwing a specific way, sliders, bouncers, and
the impressive hole in ones. The event we
had planned for the EPAB was different in a lot
of ways, but notably in the target and the
distance to it. And one other thing, we didnt
care if you were a woman or man so long as
you played. So with all my respects to Tony
and his crew our event was a bit more, no it
was a lot different. Let me share with you
how.
First of all we had partners in this event.
From the Texas state association we were
able to hook up with TrusJoist, a division of
Weyerhaeuser, who furnished the official
Texas Builders washer boards and rules.
Secondly we had to find partners and we did
very well. Our event partner was Lone Star
Title; our beverage and food partner was
Foxworth Galbraith; and our prizes partner
was Tropicana Homes. We also got T-shirt
partners with Haskins Electric, Randall Smith,
and Interceramic. TrusJoist employees came
to put on the game and brought everything we
needed, boards, washers, rules, referees and
scorers. In a matter of a couple of hours we
had the association parking lot ready to go.
Our first comers were the eventual third place
team from Rudy Guel Construction. They
were allowed to practice until we had everyone
signed in and ready to start. Our 19 teams of
two included some of our new members and
some of our more seasoned and included
some first timers like Brad Beasley CPAs out
of Las Cruces. We absolutely had a blast
coming down and we did ok, but more
importantly we made some connections and
got a better look at what the association is
about, said Brad. Others like past president
Rudy Guel took it all in stride. We have never
seen a watcha tournament like this and my
guys need to practice, Rudy told the Outlook.
The layout of the game took some by surprise,
especially the old time watcha throwers. My
dad is totally confused by the layout, since
hes played watcha for decades and never like
this, said Gilbert Pedregon. His dad got right
in the game and said he had fun. I guess
youre never too old to learn something new,
he said.
For their efforts the top three teams were as
diverse a group as one would like. In 3rd
place was Richie and Carlos from Guel
Construction; 2nd place went to Bella Homes,
with Arturo Lucero and Manny Garcia; and 1st
place went to Samira Gonzalez and Roberto
Rubio representing Interceramic Tile and
Stone. Can you believe that I shot the
watcha in HIGH HEELS? said Samira.
Proved a point that everyone had a good
chance at winning and that this event will
thrive. As our cook Chris Morales so aptly put
it this event is gonna get big. We agree.
Look at the pictures and youll see why.

el paso development news

Mall News:
Cielo Vista Expansion; Bassett Place Makes Dave & Buster's Official
El Paso's largest shopping center, Cielo
Vista Mall, announced a planned 125,000
square foot expansion that will begin in
2016. Now, we have the first images of
what that expansion may look like.
According to the mall's Property
Overview, the expansion will occur off of the
western wing of the center where the
current Dillard's mens and childrens store
now exists. This would mean demolition of
that location.
A new Dillard's will be built at the end of
the expansion to the west, making room for
around 40 new retailers and a handful of
restaurants. The new Dillard's will become
the women's store; the men's and children's
store will relocate to the current three-level
women's store. A site plan shows the new
western wing of the mall expanding into an
existing parking area.
The rendering shows a northward view of
the planned new Dillard's building on the
left side of the image. Liner structures are
shown as restaurants in the rendering, with
different construction materials
distinguishing them from the larger mall
building behind them.
This is Simon Property's first major
expansion in decades for Cielo Vista Mall,
which is located at Hawkins Boulevard and
Interstate 10 on El Paso's East Side. It is part
of the $1 billion spent annually in property
enhancements across all the malls the
company owns and operates. Construction on
the Cielo Vista expansion should begin in
January 2016 with no mention of a completion
date.
A short drive to the west at Bassett Place, a
new Dave & Buster's is scheduled to open by
the end of 2015. After months of speculation,
the East-Central El Paso mall confirmed the
location in a press release.
he entertainment and dining venue will open
a 36,000 square foot location at Bassett where

the current food court exists. The food court will

shrink and have a handful of eateries.
The Bassett location is a bit smaller than the
40,000 square foot large Dave & Buster's
prototype, with the small prototype measuring
26,500 square feet.
Bassett Place was built in 1962 and is located
at Geronimo Drive and I-10.
At Right: This site plan shows the planned
expansion of the western wing of Cielo Vista
Mall in East El Paso. Both the first and second
levels are included here, with the second level's
site plan floating above the first level in this
image. (Cielo Vista Mall Property Overview)

Martin Building
Apartments Could
be Named
'ElectriCity'

El Pasoans are getting a sneak peak at a giant sign that will adorn the Martin Building once its
renovation is complete. The historic high rise is undergoing a renovation in Downtown El Paso.
The image comes courtesy of a Facebook page highlighting the work of Los Angeles based Vuro Art
Gallery, which is creating the sign.
Light bulbs will line the inside of giant block letters spelling out "ELECTRICTY," which will sit atop the
seven-story building according to City of El Paso documents. According to a teaser at the project's
Facebook page, that may be the future name of the apartment building.
The third through seventh floors of the building will house approximately 40 apartment units. The
Martin Building is at the corner of Stanton Street and Mills Avenue, just one block east of San Jacinto
Plaza in Downtown El Paso.

Builders Outlook Issue 5 2015

Content provided by
El Paso Development News
visit: elpasodevnews.com

El Paso Ranks 5th Best in

Nationwide Well-Being Index
The Sun City topped the nation in
"purpose" and "physical" well-being
in an recently published index.
Overall, El Paso ranked 5th best in
overall well-being for 2014.
The 2014 Gallup-Healthways WellBeing Index measured the 100
largest metros in the country in five
different categories of well-being,
including purpose, social, financial,
community, and physical. El Paso
ranked number one in two of the
categories, purpose and physical
well-being.
"El Paso is the only community
with the highest well-being in more
than one element," according to the
report.
The categories are described this
way in the Index: Purpose: Liking
what you do each day and being
motivated to achieve your goals;
Social: Having supportive
relationships and love in your life;
Financial: Managing your economic
life to reduce stress and increase

security; Community: Liking where

you live, feeling safe and having
pride in your community; and
Physical: Having good health and
enough energy to get things done
daily.
El Paso's lowest rankings were in
the Financial (#63) and Social (#57)
categories. The city ranked 23rd in
Community well-being.
The only other Texas community in
the top ten was Austin/Round Rock
which ranked 6th best overall.
Gallup and Healthways have
teamed up since 2008 to create the
Well-Being Index. It is self-described
as "the most proven, mature and
comprehensive measure of wellbeing in the world."
Well-Being Index website:
www.well-beingindex.com

10

Builders Outlook

2015 issue 5

LEGISLATION

Reacting to Disaster:
With the devastating floods and other tragedies
that have occurred recently across the state, it is
important that builders and remodelers be aware of
the implications of Chapter 57 of the Texas
Business and Commerce Code that was enacted by
HB 1711 effective September 1, 2011. The bill
applies to contractors who remove, clean, sanitize,
demolish, reconstruct, or otherwise treat
improvements to real property as a result of
damage or destruction to that property caused by a
natural disaster. Specifically, it requires that a
"disaster remediation" contract must be in writing
and prohibits a "disaster remediation contractor"
from requiring payment prior to beginning work or
charging a partial payment in any amount
disproportionate to the work that has been
performed. However, the statute exempts
contractors that have held a business address for at
least one year in the county or adjacent county
where the work occurs. As these tragic floods and
other devastation subsides and the rebuilding
begins, TAB members must be aware of the
statutory contract limits on those who have not had
a business address for at least one year in the
county or adjoining county of the disaster. Ignoring
these requirements could result in a deceptive trade
practices violation. Please see the text of HB 1711
below for details. To purchase the TAB Contracts
Package, or if you need more information please
contact the EPAB or go to www.TexasBuilders.org.

Bill Number: TX82RHB 1711

Date: 05-29-2011
ENROLLED AN ACT relating to disaster
remediation contracts.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF TEXAS:
SECTION 1. Title 4, Business & Commerce
Code, is amended by adding Chapter 57 to read as
follows:
CHAPTER 57. DISASTER REMEDIATION
CONTRACTS Sec. 57.001. DEFINITIONS. In this
chapter:
"Disaster remediation" means the removal,
cleaning, sanitizing, demolition, reconstruction, or
other treatment of improvements to real property
performed because of damage or destruction to that
property caused by a natural disaster.
(2) "Disaster remediation contractor" means a
person who engages in disaster remediation for
compensation, other than a person who has a
permit, license, registration, or other authorization
from the Texas Commission on Environmental
Quality for the collection, transportation, treatment,
storage, processing, or disposal of solid waste.
(3) "Natural disaster" means the occurrence of
widespread or severe damage, injury, or loss of life
or property related to any natural cause, including
fire, flood, earthquake,wind, storm, or wave action,
that results in a disaster declaration by the
governor under Chapter 418, Government Code.
(4) "Person" means an individual, corporation,
trust,partnership, association, or other private legal
entity.
Sec. 57.002. APPLICABILITY OF CHAPTER.
(a) Except as provided by Subsection (b), this
chapter applies to a contract between a person and
a disaster remediation contractor for the
performance of disaster remediation services on
property owned or leased by the person.
(b) This chapter does not apply to a contract
between a person and a disaster remediation
contractor for the performance of disaster
remediation services on property owned or leased
by the person if the contractor maintains for at least
one year preceding the date of the contract a
physical business address in:
(1) the county in which the property is located;
or
(2) a county adjacent to the county in which the
property is located.
Sec. 57.003. DISASTER REMEDIATION
CONTRACT REQUIREMENTS; CERTAIN
CONDUCT PROHIBITED. (a) A contract subject to
this chapter must be in writing.
(b) A disaster remediation contractor:
(1) may not require a person to make a full or
partial payment under a contract before the
contractor begins work;
(2) may not require that the amount of any
partial payment under the contract exceed an
amount reasonably proportionate to the work
performed, including any materials delivered; and
shall include in any contract for disaster remediation
services the following statement in conspicuous,
boldfaced type of at least 10 points in size: "This
contract is subject to Chapter 57, Business &
Commerce Code. A contractor may not require a
full or partial payment before the contractor begins
work and may not require partial payments in an
amount that exceeds an amount reasonably
proportionate to the work performed, including any
materials delivered."

Disaster Remediation--Important Statutory Requirements

Sec. 57.004. DECEPTIVE TRADE

PRACTICE. A violation of this chapter by a
disaster remediation contractor is a false,
misleading, or deceptive act or practice as
defined by Section
17.46(b), and any remedy under Subchapter
E, Chapter 17, is available for a violation of this
chapter.
Sec. 57.005. WAIVER OF CHAPTER
PROHIBITED. A person may not waive this
chapter by contract or other means. A
purported waiver of this chapter is void.
SECTION 2. The change in law made by
this Act applies only to a contract for the
performance of disaster remediation services
that is entered into on or after the effective date
of this Act.
A contract entered into before the effective
date of this Act is governed by the law in effect
on the date the contract was entered into, and
the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect
September 1, 2011.
President of the Senate
Speaker of the House
I certify that H.B. No. 1711 was passed by
the House on April 26, 2011, by the following
vote: Yeas 141, Nays 4, 2 present, not voting;
that the House refused to concur in Senate
amendments to H.B. No. 1711 on May 23,
2011, and requested the appointment of a

conference committee to consider the

differences between the two houses; and that
the House adopted the conference committee
report on H.B. No. 1711 on May 28, 2011, by
the following vote: Yeas 146, Nays 1, 2
present, not voting
Chief Clerk of the House
I certify that H.B. No. 1711 was passed by
the Senate, with amendments, on May 20,

2011, by the following vote: Yeas 31, Nays 0;

at the request of the House, the Senate
appointed a conference committee to consider
the differences between the two houses; and
that the Senate adopted the conference
committee report on H.B. No.1711 on May 28,
2011, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate
APPROVED:

ElPasoDisposal

772-7495

2015 issue 5

11

Builders Outlook

SPECIAL REPORT:

21 HOT HOUSING TRENDS

Everyone wants to be hip, and the latest trends in design can
help distinguish one home from another. And its not all flash;
many new home fads are geared to pare maintenance and
energy use and deliver information faster. Heres a look at whats
coming.
By Barbara Ballinger , REALTOR.COM

In real estate trends typically come

slowly, often well after they appear in
commercial spaces and fashion. And
though they may entice buyers and
sellers, remind them that trends are
just thata change in direction that
may captivate, go mainstream, then
disappear (though some will gain
momentum and remain as classics).
Which way theyll go is hard to
predict, but here are 21 trends that
experts expect to draw great appeal
this year:
Coral shades.(right)
A blast of a new color is often the
easiest change for sellers to make,
offering the biggest bang for their
buck. Sherwin-Williams says Coral
Reef (#6606) is 2015s color of the
year because it reflects the countrys
optimism about the future. We have
a brighter outlook now that were out
of the recession. But this isnt a
bravado color; its more youthful, yet
still sophisticated, says Jackie
Jordan, the companys director of
color marketing. She suggests using
it outside or on an accent wall. Pair it
with crisp white, gray, or similar
saturations of lilac, green, and violet.
Open spaces go mainstream.
An open floor plan may feel like old
hat, but its becoming a wish beyond
the young hipster demographic, so
youll increasingly see this layout in
traditional condo buildings and
single-family suburban homes in
2015. The reason? After the kitchen
became the homes hub, the next
step was to remove all walls for
greater togetherness. Design experts
at Nurzia Construction Corp.
recommend going a step further and
adding windows to better meld
indoors and outdoors.
Off-the-shelf plans.
Buyers who dont want to spend time
or money for a custom house have
another option. House plan
companies offer myriad blueprints to
modify for site, code, budget, and
climate conditions, says James
Roche, whose Houseplans.com firm
has 40,000 choices. There are lots of
companies to consider, but the best
bets are ones that are updating
layouts for todays wish listsopenplan living, multiple master suites,
greater energy efficiency, and smaller
footprints for downsizers (in fact,
Roche says, their plans average now
is 2,300 square feet, versus 3,500 a
few years ago). Many builders will
accept these outsiders plans, though
they may charge to adapt them.
Freestanding tubs.
Freestanding tubs may conjure
images of Victorian-era opulence, but

the newest iteration from companies

like Kohler shows a cool sculptural
hand. One caveat: Some may find it
hard to climb in and out. These tubs
complement other bathroom trends:
open wall niches and single wash
basins, since two people rarely use
the room simultaneously.
Quartzite.
While granite still appeals, quartzite
is becoming the new hot contender,
thanks to its reputation as a natural
stone thats virtually indestructible. It
also more closely resembles the
most luxe classicmarblewithout
the drawbacks of staining easily.
Quartzite is moving ahead of last
years favorite, quartz, which is also
tough but is manmade.
Porcelain floors. (right)
If youre going to go with imitation
wood, porcelain will be your 2015 goto. Its less expensive and wears as
well as or better than the real thing,
says architect Stephen Alton.
Porcelain can be found in traditional
small tiles or long, linear planks. Its
also available in numerous colors
and textures, including popular onecolor combos with slight variations for
a hint of differentiation. Good places
to use this material are high-traffic
rooms, hallways, and areas exposed
to moisture.
Almost Jetson-ready.
Prices have come down for
technologies such as web-controlled
security cameras and motion sensors
for pets. Newer models are also
easier to install and operate since
many are powered by batteries,
rather than requiring an electrician to
rewire an entire house,says Bob
Cooper at Zonoff, which offers a
software platform that allows multiple
smart devices to communicate with
each other. You no longer have to
worry about different standards,
Cooper says.
Charging stations.
With the size of electronic devices
shrinking and the proliferation of WiFi, demand for large desks and
separate home office is waning.
However, home owners still need a
dedicated space for charging
devices, and the most popular
locations are a corner of a kitchen,
entrance from the garage, and the
mud room. In some two-story
Lexington Homes plans, a niche is
set aside on a landing everyone
passes by daily.
Multiple master suites.
Having two master bedroom suites,
each with its own adjoining
bathroom, makes a house work

better for multiple generations. Such

an arrangement allows grown
children and aging parents to move
in for long- or short-term stays, but
the arrangement also welcomes outof-town guests, according to Nurzia
Construction. When both suites are
located on the main level, you hit the
jackpot.
Fireplaces and fire pits.
The sight of a flamereal or faux
has universal appeal as a signal of
warmth, romance, and togetherness.
New versions on the market make
this amenity more accessible with
more compact design and fewer
venting concerns. This year, be on
the lookout for the latest iteration on
this classic: chic, modern takes on
the humble wood stove.

Wellness systems.
Builders are now addressing
environmental and health concerns
with holistic solutions, such as heat
recovery ventilation systems that filter
air continuously and use little energy,
says real estate developer Gregory
Malin of Troon Pacific. Other new
ways to improve healthfulness
include lighting systems that utilize
sunshine, swimming pools that
eschew chlorine and salt by featuring
a second adjacent pool with plants
and gravel that cleanse water, and
edible gardens starring ingredients
such as curly blue kale.

READ more> Continues page 12

12

Builders Outlook

2015 issue 5

SPECIAL REPORT:

21 HOT HOUSING TRENDS

CONTINUED FROM PAGE 11
Storage.
The new buzzword is specialized
storage, placed right where its
needed. Home owners want
everything to have its place, says
designer Jennifer Adams. More home
owners are increasingly willing to
pare the dimensions of a second or
third bedroom in order to gain a
suitably sized walk-in closet in their
master bedroom, Alton says. In a
kitchen, it may mean a super
pantrya butlers pantry on steroids
with prep space, open storage,
secondary appliances, and even a
room for wrapping gifts. It minimizes
clutter in the main kitchen, says
architect Fred Wilson of MorganteWilson.

works, she spaces them four to five

inches apart, starting at the center
and at eye level and working
outward, then up and down. She
uses Frog Tape to test the layout
since it doesnt take paint off walls.
Artist Francine Turk also installs
works this way, but prefers testing the
design on the floor like a big jigsaw
puzzle.
Cool copper.
The 2015 it metal is copper, which
can exude industrial warmth in large
swaths or judiciously in a few
backsplash tiles, hanging fixture, or
pots dangling from a rack. The appeal
comes from the popularity of
industrial chic, which Restoration
Hardwares iconic style has helped
promote, says designer Tom Segal.

Radzwillas. Whats different now is

that all-white does not mean the
same white, since variations add
depth and visual appeal. White can
go from stark white to creamy and
beyond to pale blue-gray, says
Radzwillas. He also notes that when
cabinets are white, home owners can
choose bigger, bolder hardware.
Outdoor living.
Interest in spending time outdoors
keeps mushrooming, and 2015 will
hold a few new options for enhancing
the space, including outdoor showers
adjacent to pools and hot tubs along

Grander garages. (above)

According to Troon Pacific, the new
trends here include bringing the
driveways material into the garage,
temperature controls, sleek glass
doors, specialized zones for home
audiovisual controls, and a big sink or
tub to wash pets. For home owners
with deeper pockets, car lifts have
gone residential so extra autos dont
have to be parked outside.
Keyless entry.
Forget your key (again)? No big deal
as builders start to switch to biometric
fingerprint door locks with numerical
algorithms entered in a database.
Some systems permit home owners
to track who entered and when, says
Malin of Troon Pacific.
Water conservation.
The concerns of drought-ravaged
California are spreading nationwide.
Home owners can now purchase
rainwater harvesting tanks and
cisterns, graywater systems, weathercontrolled watering stations,
permeable pavers, drought-tolerant
plants, and no- or low-mow grasses.
Salon-style walls.
Instead of displaying a few distinct
pieces on a wall, the salon style
trend features works from floor to
ceiling and wall-to-wall. Think
Parisian salon at the turn of the
century. HGTV designer Taniya
Nayak suggests using a common
denominator for cohesiveness, such
as the same mat, frame color, or
subject matter. Before she hangs

Return to human scale.

During the McMansion craze,
kitchens got so big they almost
required skates to get around. This
year well see a return to a more
human, comfortable scale, says Mark
Cutler, chief designer of design
platform nousDecor. In many living or
family rooms that will mean just
enough space for one conversation
grouping, and in kitchens one set of
appliances, fewer countertops, and
smaller islands.

with better-equipped roof decks for

urban dwellers. Also expect to see
improvements in perks for pets, such
as private dog runs and wash
stations, says landscape architect
Jean Garbarini of Damon Farber
Associates.
While its fun to be au courant with
the latest trends, its also wise to put
whats newest in perspective for your
clients. Remind them that the ultimate
decision to update should hinge on
their needs and budgets, not
stargazers tempting predictions.

Give your customers

the option of the sun
Now more than ever,
El Paso home buyers
are planning for the
future.

Luxury 2.0.
Getting the right amount of sleep can
improve alertness, mood, and
productivity, according to the National
Sleep Foundation. With trendsetters
such as Arianna Huffington touting
the importance of sleep, theres no
doubt this particular health concern
will go mainstream this year. And
theres no space better to indulge the
desire for quality rest than in a
bedroom, says designer Jennifer
Adams. Everyone is realizing the
importance of comfort, quality sleep,
and taking care of yourself, she
says. To help, Adams suggests
stocking up on luxury bedding, a new
mattress, comfortable pillows, and
calming scents.
Shades of white kitchens.
Despite all the variations in colors
and textures for kitchen counters,
backsplashes, cabinets, and flooring,
the all-white kitchen still gets the
brass ring. Seven out of 10 of our
kitchens have some form of white
painted cabinetry, says builder Peter

Border Solar can help

you oer your
customers solar power
as a sensible
alternative.

Crossing to Clean Energy

7365 Remcon Circle

El Paso, TX 79912
(915) 6134168

The future starts

today.
follow us on twitter and
facebook:
BorderSolar

2015 Issue 5

13

Builders Outlook

www.elpasobuilders.com
www.epbuilders.org

Membership News
UPCOMING EVENTS |
JUNE 10
BOARD MEETING
11:00
GENERAL MEETING
12:00

JULY 28 AUGUST 1
TAB BOD MEETINGS
GAYLORD TEXAN RESORT

JULY 29 30
SUNBELT SHOW
GAYLORD TEXAN RESORT
GRAPVINE, TX

HUB INTERNATIONAL

HUITT ZOLLARS INC.

SOUTHWEST LAND DEVELOPMENT

SERVICES

EL PASO TIMES

RANDALL SMITH, CPA

MARK WINTON, INC.

MARBLE & GRANITE DESIGN CONCEPT

COM-CORP

ORTIZ PLUMBING

EL PASO CLUB
CHASE BANK BUILDING DOWNTOWN

RENEWALS |
GECU

EL PASO WINDOW COMPANY

MOUNTAIN VISTA REALTY
LMJ CONSTRUCTION
C. D. LEE/BRITTON INS.

IN MEMORIAM|
Jack White
On Monday, May 25th, God received another angel, Jack C. White. Our beloved husband, father, grandfather, great grandfather went
home, to be with our Lord peacefully surrounded by his family at home. He is survived by his wife Sue and his daughters, Judy Stark
and Claudia Lardizabal; son in laws, Richard Stark and David Lardizabal, as well as his grandkids Laura, Rickie, Isabella and Olivia and
his great grandchildren Robbie, Claire, Katie, Madison, Michael and Kelsey. Visitation will be from 4:00-9:00 pm with a Vigil/Rosary at
7:30 pm Thursday, May 28, 2015 at Sunset Funeral Home-East, 750 N. Carolina Dr. Funeral Mass was held on Friday, May 29, 2015 at
St. Thomas Aquinas Church. Interment followed at Fort Bliss National Cemetery.

Julian Zar
Julian Lee Zar "Zeke Zar" passed away on Sunday, April 26, 2015 at the age of 93. He was a World War II intelligence officer serving in
the United States Army. In the 1960's to 1970's he was nationally recognized as the civilian authority of Government Programs. He did a
stint as editor of Builders' magazine. Zeke then went on to be a general contractor and well respected in the Home Building Industry,
serving as past President of the El Paso Home Builders' Association and El Paso Remodelers' Association. He was a Past President of
the El Paso Association of Builders. He was also an accomplished amateur watercolorist and locally well-known cooking teacher in
which he received many awards for his fajitas. He was a loving husband, father and will be greatly missed. He was preceded in death
by his son William Lee Zar. He is survived by his loving wife Judith Zar. A Celebration of his Life was held on Thursday, April 30, 2015.

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14

Builders Outlook

2015 issue 5

Associates Council

Sam Shallenberger
Morrison Supply

Time flies when you are having fun! I

was out of town on May 21st when the
WASHER tournament took place but
Ray informed me that it was a big
success and everyone had a blast. A
big thanks to all that helped make this
event a success. Thanks to our
partners, Lone Star Title, Foxworth
Galbraith, Tropicana Homes, Randall
Smith CPA, Haskins Electric, and
Interceramic.

We are looking at August for our

BOWLING Pachanga and should have
details shortly. We do not compete with
each other unless your team has a bet
with another team. This is just a way to
beat the Dog Days of summer and
share some fellowship with other
members. We will have drawing for
some cool prizes.
We are shooting for an October time
frame for the fall golf tournament for the

serious golfers. We dont know if it will

be a Pro Am yet as we are going to
make this a very special event. We will
require established handicaps from
each participant. The prizes will also be
special as we realize the high level of
competition.
Thats about all I have as far as the
associates go. Have a great and safe
summer.

pay $160 and you would have to pay

$40.
Copayment: Another form of costsharing that requires an insured person
to pay a fixed dollar amount when a
medical service is received. The
insurer is responsible for the rest of the
reimbursement.
If you pay $25 or some other flat
amount for a covered medical visit,
then your plan has a copayment. You
most often find copayments in
preferred provider organization (PPO)
plans, point-of-service (POS) plans or
HMOs, which also may charge higher
copayments when you obtain services
from out-of-network providers.
Maximum out-of-pocket expense:
The maximum dollar amount an
insured must pay out of pocket during a
year. Until you meet this maximum, you
and the insurer share the cost of
covered expenses. After you reach this
maximum, the insurer may waive the
coinsurance or copayment and pays all
covered expenses, up to any annual or
lifetime limit.
Under the Affordable Care Act, the
insurer for a non-grandfathered
individual group plan must pay 100
percent of essential health benefits
for the rest of the year after you reach
the out-of-pocket maximum. Note that
this is 100 percent of essential health
benefits, not all covered benefits.
Voluntary insurance plans, such as
critical illness insurance, cancer
insurance and hospital indemnity
insurance, can help pay for some of
these uncovered items.
Annual and lifetime limits (or cap):
The Affordable Care Act prohibits major
medical insurance policies from having
lifetime limits, or caps on the maximum
amount your insurer will pay toward
covered expenses.
Out-of-network charges: Many plans
pay a lower portion of any services you
obtain from out-of-network providers.
Some also have higher copayments.
Before buying a plan, check its list of
preferred providers or network
providers to see if your physician(s)
and local hospital of choice are
included. If youre not willing to switch
to a preferred provider, factor higher
out-of-network charges into your
healthcare costs.
Usual, customary and reasonable
charges: You may find the term usual,

customary and reasonable (UCR)

charges in your policy benefit
statements. Usual means the
providers usual charge for this
treatment (i.e., hes not charging you
more because you have insurance!),
customary means customary for all
providers in your geographic area and
reasonable means reasonable based
on the particular circumstances of your
claim.
Once you pay any deductible amount
and coinsurance, the insurer is
responsible for reimbursing the rest of
covered benefits up to allowed
charges: the individual could also be
responsible for any charges in excess.
If your insurer deems your providers
charges above the UCR amount, you
could be responsible for the difference.

Youre more likely to run up against

UCR charges in indemnity plans. PPO,
POS (point of service) and HMO plans
negotiate fixed payment schedules, so
when you use an in-network provider
who accepts your plan, he or she has
likely accepted the insurers fixed
payment.
Regardless of the type of group
health plan you offer your employees, it
likely costs more or covers lessor
boththan it did a few years ago.
Voluntary benefits allow employees to
buy coverage for additional services
(such as vision or dental) or costs not
covered by their major medical plan at
competitive group rates through
convenient payroll deduction. Please
contact us for more information.

Expert Advice

Joe Bernal
Employees Benefits of El Paso

The final cost of a medical insurance

plan depends on more than just the
premiums, even when you compare
with
similar
benefits.
plans
Understanding the following definitions
can help your employees understand
the components that affect their
medical coverage costs.
The final cost of a medical insurance
plan depends on more than just the
premiums, even when you compare
plans
with
similar
benefits.
Understanding the following definitions
can help your employees understand
the components that affect their
medical coverage costs.
Deductible: A fixed dollar amount you
must pay during the benefit period
usually a year before the insurer
starts to make payments for covered
medical services. If you have a family
plan, you might have both per
individual and family deductibles.
Some plans may have separate
deductibles for specific services. For
example, a plan may have a
hospitalization
deductible
per
admission.
To save money, consider raising your
plans deductible. You might pay more
out of pocket, but you could save
substantially on premiums. Just make
sure you have funds on hand to cover
your deductible.
With certain high-deductible policies,
you can qualify for a health savings
account (HSA), which allows your
savings to accumulate tax-free to pay
qualified medical expenses.
Coinsurance: Coinsurance is a form
of cost-sharing that requires the
insured to pay a stated percentage of
medical expenses after the deductible
amount is paid. For example, lets say
your policy has a coinsurance
percentage of 20. If youve already met
your plans deductible for the year and
your doctor charges you $200 for a
covered office visit, your insurer would

2015 Issue 5

15

Builders Outlook

Builders

utlook
www.elpasobuilders.com
www.epbuilders.org

6046 Surety Dr. El Paso, TX 79905

915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
edgarmontiel,President
Palo Verde Homes
carlosvillalobos,vicePresident
Pointe Homes
Donrassette,Secretary/Treasurer
Rassette Homes
SamShallenberger,Associateschair
Morrison Supply

TABSTATeDirecTorS
Randy Bowling
Greg Bowling
Sam Shallenberger
NATioNALDirecTorS
Demetrio Jimenez
NATioNALASSociATioNoF
HomeBuiLDerS
(800) 368-5242

TexASASSociATioNoF

JayKerr-Attorneyofrecord
Firth, Johnston, Bunn & Kerr
couNciL/commiTTeecHAirS
Associatescouncil
Sam Shallenberger
BuildPac
Randy Bowling
Landusecouncil
Linda Troncoso
YoungDesignerAward
John Chaney
remodelerscouncil
Rudy Guel
membershipretentiion
Patrick Tuttle
Financecommittee
Kathy Carrillo
Henry Tinajero

ADviSorYToTHeBoArD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez

BuiLDerS
(800)252-3625

2014BuildermemberofTheYear
FrankTorres
GMf Homes
2014PatcoxAward
BretThompson
foxworth Galbraith Lumber
2014AssociatedofTheYear
JoeBernal
Employee Benefits Of El Paso
2014JohnShatzmanAward
Cindy Bilbe, Stewart Title
HonoraryLifemembers
Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady
Cliff C. Anthes
Anna Gill
Brad Roe
Rudy Guel
E H Baeza
PastPresidents
committedtoServe
Greg Bowling
Bobby Bowling, IV
Kelly Sorenson
Rudy Guel
Mark Dyer
Anna Gil
Mike Santamaria
Bradley Roe
John Cullers
Bob Bowling, III
Randy Bowling
Edmundo Dena
Doug Schwartz
Hershel Stringfield
Robert Baeza
Pat Woods

BoArDoFDirecTorS

Antonio Cervantes, BIC Homes

Bret Thompson, foxworth Galbraith Lumber
Bud foster, Southwest Land Development Servises
Dan Ruth, Millienium Homes
Henry Tinajero, West Star Bank
Joe Bernal, Employee Benefits Of El Paso
John Chaney, Passage Supply
John Dorney, Dorney Security

ePABmissionStatement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.

Kathy Carrillo, Pioneer Bank

Kathy Parry, Hunt Companies
Leti Navarette, Custom Dream Homes
Linda Troncoso, TRE & Associates
Robert Najera, Joseph Homes
Walter Lujan, Dawco Builders

Residential Specialists
Tract Homes Custom Homes

Bobby Bowling IV.

FrankTorres,immediatePastPresident
GMf Homes
rayAdauto,executivevicePresident
Executive Vice President

For All Your Electrical Needs

2015 Builders Outlook

is published and distributed for the
El Paso Association of Builders
by Ted Escobedo, Snappy Publishing
ted@snappypublishing.com
El Paso Texas 915-820-2800

Total Customer
Satisfaction

915-208-9313
602-708-7560