PCCA Journal 2nd Quarter 2009

The Official Publication of the Power & Communication Contractors Assocation 2nd Quarter 2009 Also Inside: • Contractor Group Experiences the Value of PCCA Membership • PCCA Has a Big Time on the Big Island • Leadership Changes at RDUP Tag: Hard Work Does Pay Off

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2nd Quarter 2009 President Ron Tagliapietra Michels Corporation President-Elect Larry Libla Libla Communications 1st Vice President Kevin Mason ElectriCom, Inc. 2nd Vice President Tommy Muse Aubrey Silvey Enterprises, Inc. Treasurer Glen Amerine Amerine Utilities Construction, Inc. Secretary Steve Sellenriek Sellenriek Construction Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors David Aubrey Okay Construction Tony Briggs Vermeer Manufacturing James Dillahunty Henkels & McCoy, Inc. John Fluharty Mears Group, Inc. Herb Fluharty Mears Group, Inc. Timothy D. Killoren North States Utilities Dan Levac Preformed Line Products Todd Mix ElectriCom, Inc. Todd Myers Kenneth G. Myers Construction Eric Nicholson HammerHead Larry Pribyl MP Nexlevel, LLC Brad Radichel Condux International Austin Shanfelter MasTec, Inc. Matt Trawick Trawick Construction Co., Inc. Bryan Westerman MasTec, Inc. Publication Staff Publisher Timothy Wagner twagner@pccaweb.org Associate Publisher Cheryl Stratos stratosc@pccaweb.org Editor Michael Ancell mancell@pccaweb.org Advertising Sales Manager Victoria Geis vgeis@pccaweb.org Contractor Group Experiences the Value of PCCA Membership 17 When PCCA Past President Steve Spears was looking to help a group of local contractors gain more knowledge about the burgeoning wind energy market, he naturally thought of various PCCA colleagues who are working wind projects in the states. One of his first calls was to PCCA board member Jim Dillahunty of Henkels & McCoy, and within a matter of days, the two were planning a visit by a delegation of contractors from Puerto Rico to a Henkels & McCoy jobsite in Portland, Oreg. Tag: Hard Work Does Pay Off 21 The rise of PCCA President Ron Tagliapietra in the construction industry, from young laborer to successful executive to association president, is a classic American success story, complete with strong family, service to country, influential role models, and lots of hard work. PCCA Has a Big Time on the Big Island 27 Eager to gauge where the industry stands in these difficult times and to learn strategies that will help them survive and even thrive, PCCA members traveled to Hawaii’s Big Island this winter for the association’s 64th annual convention. With nearly 250 attendees, the convention featured topical education, important industry business, first-class entertainment, and a whole lot of fun. News Briefs 7 Safety News 35 PCCA Member News 39 Industry Calendar 46 2009 PCCA Mid-Year Preview 49 Human Resources 53 Advertiser Index 54

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PCCA Journal|2nd Quarter 2009 7 News Briefs News Briefs continued on page 8 At the end of March, President Barack Obama nominated Federal Communications Commissioner Jonathan S. Adelstein to become administrator of USDA Rural Development’s Rural Utilities Service. The administrator is responsible for all USDA Rural Development Utilities programs, including telecommunications, electric loan, water and environmental, and distance learning and telemedicine programs. “Jonathan Adelstein brings a wealth of experience to this position,” said Agriculture Secretary Tom Vilsack. “USDA is eager to have him join the department and begin the important work of fulfilling the president’s pledge to bring increased and improved telecommunications service, including broadband, to rural areas.” USDA Rural Development works to bring improved utilities and community infrastructure to rural communities. In 2008, the agency invested more than $20.7 billion in rural America through its programs. Adelstein is currently a commissioner of the FCC, where he has led efforts to improve rural telecommunications and broadband. He has served at the FCC since 2002 and was confirmed to a second term in 2004. Adelstein has been a leading advocate for a substantive national broadband strategy with aggressive goals and specific policy recommendations. He has also played an active role in promoting new policies that improve access to spectrum by both large and small companies so that consumers can continue to maintain those connections in an increasingly portable world. Before joining the commission, Adelstein served for 15 years as a staff member in the United States Senate, including his final seven years with former Senate Majority Leader Tom Daschle (D-S.Dak.), advising him on telecommunications, financial services, housing, transportation, and other key issues. On April 10, Agriculture Secretary Tom Vilsack announced the appointment of Cheryl Cook as deputy under secretary for rural development. In this position, Cook will manage policies and programs in Rural Development’s three main areas: business and cooperatives, housing and community facilities, and utilities. “Cheryl Cook brings with her a distinguished record of service as well as a keen understanding of the unique challenges and opportunities facing rural Americans today,” Vilsack said. “I am confident that she will help USDA achieve President Obama’s goals for rebuilding and revitalizing the nation’s rural communities. Cheryl Cook is a highly experienced leader committed to expanding broadband networks, increasing investment in rural infrastructure, and developing renewable energy.” Before joining USDA, Cook served as deputy secretary for marketing and economic development at the Pennsylvania Department of Agriculture. She had previously worked for the Keystone Development Center, a non-profit organization in Pennsylvania that helps new and emerging cooperatives. She was also a member of the National Farmers Union’s public policy staff. Obama Announces Nominee for USDA’s Rural Utilities Program Administrator USDA Names Cook as Deputy Under Secretary For Rural Development

PCCA Journal|2nd Quarter 2009 8 FCC Launches Development of National Broadband Plan In April, the Federal Communications Commission began the process of developing a national broadband plan that will seek to ensure that every American has access to broadband capability. In the American Recovery and Reinvestment Act of 2009 (known as the stimulus package) Congress charged the FCC with creating a national broadband plan. The commission recently began a proceeding to create that national broadband plan, seeking input from all stakeholders: consumers, industry, large and small businesses, non-profits, the disabilities community, governments at the federal, state, local, and tribal levels, and all other interested parties. The commission must deliver the plan to Congress by February 17, 2010. It will provide a roadmap toward achieving the goal of ensuring that all Americans reap the benefits of broadband. The Recovery Act requires the plan to explore several key elements of broadband deployment and use, and the commission has sought comment on these elements, including: The most effective and effi • cient ways to ensure broadband access for all Americans • Strategies for achieving affordability and maximum utilization of broadband infrastructure and services • Evaluation of the status of broadband deployment, including the progress of related grant programs • How to use broadband to advance consumer welfare, civic participation, public safety and homeland security, community development, health care delivery, energy independence and efficiency, education, worker training, private sector investment, entrepreneurial activity, job creation, economic growth, and other national purposes. Deere’s Ruccolo Testifies Before House Committee on Green Transportation Policy, Infrastructure John Deere Construction & Forestry Senior Vice President of Sales & Marketing Domenic Ruccolo recently testified before the U.S. House Select Committee on Energy Independence and Global Warming, advocating making infrastructure projects greener through the use of more productive and efficient construction equipment that gets the most work out of every gallon of fuel used. Ruccolo’s testimony came during the committee’s hearing on “Constructing a Green Transportation Policy: Transit Modes and Infrastructure.” Among other action items, he urged the federal government to take steps to support further efforts within the construction equipment industry to improve equipment productivity and efficiency and reduce environmental impacts. “Collaboration and cooperation between the public and private sectors are needed to investigate and fund the research and development of new standards and technologies to further improve equipment productivity and efficiency,” Ruccolo said. “The federal government has not consistently assisted the non-road equipment industry in the past on such an effort, concentrating instead upon the on-road sector. “However, by recognizing the essential role non-road equipment will play in transforming the transportation and other sectors of the economy to achieve ambitious and necessary greenhouse gas reductions, we can see that appropriate investment by the federal government into non-road technologies would create substantial environment returns,” Ruccolo said. Ruccolo noted that any future strategic modal shifts from road transport to rail and public transportation systems to help offset growth in greenhouse gas emissions would require construction equipment to build and maintain the infrastructure foundation for the shifts. “By supporting the non-road equipment industry to make machines more productive and efficient, the nation will be able to achieve these shifts and realize the environmental benefits more quickly and with lest cost,” he said. Ruccolo also addressed the vital relationship between infrastructure investment and job creation. “John Deere witnesses firsthand the dramatic impact of the current financial crisis on its workforce, dealers, and customers,” Ruccolo said. “There are over 2 million construction workers currently without jobs. Without a doubt, we are all ready, willing, and able to get back to work for the nation to help rebuild its economy and create the environmentally sound infrastructure it deserves. Predictable, adequate, and effective use of program funding to achieve these ends should be a policy priority.” FMI Releases Latest Nonresidential Construction Index FMI recently released its Nonresidential Construction Index (NRCI) for quarter two, which now stands at 45.0, compared with a reading of 35.6 for last quarter. Following is FMI’s interpretation of the data. It appears construction industry executives participating as panelists for the NRCI survey are getting over the shock of the rapid slowdown and are beginning to rethink their markets and strategies. There are some signs of optimism in this quarter’s report, but most News Briefs Continued from page 7 News Briefs continued on page 10

PCCA Journal|2nd Quarter 2009 10 panelists expect the remainder of 2009 to be a continuing challenge to find new work and keep from making even deeper staff cuts. Unfortunately, the federal stimulus has yet to be very stimulating for nonresidential contractors. At this time, only 12 percent of industry executives participating in the survey have seen any effects of the American Recovery and Reinvestment Act of 2009. Delays and cancellations continue to plague the nonresidential construction sector, with few signs that banks are ready to free up credit for private-sector owners. While we received several comments that panelists expect the downturn to get even worse before it gets better, a few expressed their concern that we might be in for a rapid rebound at some point, which will also cause problems scaling back up. NRCI First Quarter 2009 Highlights Overall Economy: Panelists’ opinions of the overall economy improved considerably this quarter. Only 39.2 percent thought the economy had worsened since last quarter, compared with 79.6 percent in the first quarter of 2009. However, only 9.1 percent thought the economy was actually improving. Overall Economy Where Panelists Do Business: Panelists’ opinions of their local economies and markets improved in sync with the overall economy with 46.3 percent agreeing it was the same as last quarter and 42 percent saying it was worse than last quarter. Panelists’ Construction Business: Last year, when the overall economy was declining, we noted that nonresidential contractors were doing pretty well in comparison. But as of the second quarter 2009, panelists participating in this survey largely agree their business is as slow as business in their overall markets. Cost of Materials: The reduction in materials costs may be near the bottom as only 58 percent of panelists report material costs as lower compared with 70 percent last quarter. Cost of Labor: Labor costs, despite slowdowns and layoffs, seem to show early signs of increasing, but only 11 percent report labor costs as higher than last quarter. Delays and Cancellations: Delays and cancellations continue to plague the industry, but they are no worse than reported last quarter. Still, with delays running at four times what panelists consider a normal rate and cancellations representing 10 percent of backlog, if banks continue to be afraid to make loans, owners will sit on the sidelines, and the recovery will be delayed. Effects of Stimulus Bill: With details of the bill’s projects becoming known, nonresidential building contractors are realizing stimulus funds won’t bring an immediate cure for declining backlogs, as 88 percent of panelists said they had not yet seen the effects of the stimulus bill. However, 23 percent expect the bill will increase their backlogs as much as 5 percent in the next year. Nonresidential Construction Spending Shows Vitality in March The U.S. Census Bureau announced on May 4 that construction spending during March was estimated at a seasonally adjusted annual rate of $969.7 billion, 0.3 percent above the revised February estimate of $967.1 billion. The March figure is 11.1 percent below the March 2008 estimate of $1,090.5 billion. During the first 3 months of this year, construction spending amounted to $209.5 billion, 10.9 percent below the $235.2 billion for the same period in 2008. However, if it weren’t for a surprisingly strong and somewhat resilient nonresidential expansion (breaking the $400 billion plateau) offsetting a dismissal spiral down in residential construction, the overall market would have slumped much more. Private Construction: Spending on private construction was at a seasonally adjusted annual rate of $661.0 billion, 0.1 percent below the revised February estimate of $661.6 billion. Residential construction was at a seasonally adjusted annual rate of $258.4 billion in March, 4.2 percent below the revised February estimate of $269.6 billion—dropping to only 26.65 percent of the overall market, down from its high of slightly over 56 percent three years ago. Meanwhile in a show of unexpected (but welcomed) strength, nonresidential construction topped the $400 billion level for the first time at a seasonally adjusted annual rate of $402.6 billion in March, 2.7 percent above the revised February estimate of $392.0 billion. Public Construction: In March, the estimated seasonally adjusted annual rate of public construction spending was $308.7 billion, 1.1 percent above the revised February estimate of $305.4 billion. Educational construction was at a seasonally adjusted annual rate of $89.2 billion, 1.6 percent above the revised February estimate of $87.8 billion. Highway construction was at a seasonally adjusted annual rate of $76.2 billion, 0.8 percent below the revised February estimate of $76.8 billion. Verizon Communications Reports Growth in First Quarter Verizon Communications Inc. in April reported that its revenue and earnings continued to grow in the first quarter 2009 and that it continued to generate strong cash flows. Despite the general economic climate, sales remained strong for wireless, News Briefs continued on page 12 News Briefs Continued from page 8

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PCCA Journal|2nd Quarter 2009 12 FiOS, and strategic business services. Verizon reported diluted earnings per share (EPS) of 58 cents in the first quarter 2009, up 1.8 percent from 57 cents per share in the first quarter 2008. On an adjusted basis (non-GAAP), first-quarter 2009 earnings were 63 cents per share, up 3.3 percent from first-quarter 2008 earnings of 61 cents per share. Verizon’s total operating revenues grew 11.6 percent to $26.6 billion, compared with the first quarter 2008, as the company added revenues from its acquisition of Alltel Corporation in early January 2009. On a pro forma basis (determined by consolidating the operating results of Verizon and the former Alltel as though the acquisition had occurred on Jan. 1, 2008), revenue growth was 3.3 percent. Cash flows from operations totaled $6.4 billion for the first three months of 2009, up $1.0 billion, or 19.1 percent, over the same period last year. Capital expenditures totaled $3.7 billion in the first quarter 2009, and free cash flow (cash flows from operations minus capital expenditures) totaled $2.7 billion, up $1.5 billion from the first quarter 2008. “Our business groups executed with excellence in the first quarter,” said Verizon Chairman and CEO Ivan Seidenberg. “Our operational and financial discipline produced continued revenue and earnings growth, as well as an expansion of our already strong operating cash flows. A highlight of the quarter was our successful completion of the Alltel acquisition. We quickly began integration efforts, and we are aggressively pursuing synergies.” Cox Says Cable Subscriber Growth Slowing Due to Maturity, Not Economy Dallas Clement, Cox’s senior VP of strategy and development, said a recent slowdown in subscriber growth is due to the maturing nature of the business, but the slow economy and increased competition from telcos have also contributed, the Wall Street Journal reported. Interviewed at the Cable Show this week in Washington, D.C., Clement said that the company is at 60 percent penetration to its analog subscriber base, 40 percent of homes served are data customers and about 28 percent are voice subscribers. Cox is not seeing an increase in service disconnects or people paying late on bills, both telltale signs that the economy is squeezing people. Instead, Clement said that research shows that, for the average family, video or broadband service would be one of the last News Briefs Continued from page 10 News Briefs continued on page 14 Carrier Ethernet Market Showing Double- Digit Growth Despite Recessionary Spending U.S. enterprises and consumers are expected to spend more than $27 billion over the next five years on Ethernet services provided by carriers, according to a new market research study from the Insight Research Corporation. With metro-area and wide-area Ethernet services now available from virtually all major data service providers, the market is expected to grow at a compounded rate of more than 25 percent, increasing from $2.4 billion in 2009 to reach nearly $7.8 billion by 2014. According to Insight Research’s market analysis study, “Carriers and Ethernet Services: Public Ethernet in Metro & Wide Area Networks 2009-2014,” the economic recession that emerged in late 2008 is expected to dampen Ethernet service growth to a projected 14 percent this year; however, the study projects that growth will re-accelerate beginning in 2010 and that revenue growth will reach another peak of 32 percent by 2012. Ethernet services are marketed under various names: transparent or native LAN, Ethernet, Gigabit Ethernet, GigE, metro Ethernet, Ethernet private line, Ethernet virtual private line, Layer 2 virtual private network, Ethernet access, and virtual private LAN service. “The carriers are growing their Ethernet revenues in the context of steadily increasing data bandwidth demand and because Ethernet has real cost advantages in terms of providing flexible bandwidth and scalability that is superior to many competitive services,” said Robert Rosenberg, president of Insight Research. “Though we are predicting an accelerating pace of Ethernet adoption, we are not suggesting that Ethernet is ready to ‘take over the world.’ Generally speaking, private line and frame relay customers are not ready to abandon these services, so the migration to Ethernet is going to be slow and steady.” The report examines carrier Ethernet market spending and usage patterns by topology (E-line, E-LAN, and access), regional domain (metro, wide-area, and access), retail/ wholesale, and various bandwidth levels.

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PCCA Journal|2nd Quarter 2009 14 things cut from the budget. In the current economic climate, privately held Cox is focusing on keeping existing customers and tightening up on operational expenses, rather than going “Vonagecrazy” on marketing to get new subs. The company is also moving forward to spin up new revenue streams, including ramping up its wireless offering and putting more emphasis on business services. Business customers are expected to generate about $1 billion in revenue in 2010. Cable Group Makes Broadband Policy Recommendations In April filings, the American Cable Association made several recommendations designed to achieve the Obama administration’s twin goal of introducing high-speed Internet service into areas that never had it and increasing broadband speeds in those underserved locations where data rates have been less than optimal. “ACA’s members—small, independent cable companies first to deploy broadband facilities in rural America—are the ideal candidates for receiving economic stimulus funding to spread broadband into those truly remote areas that have been economically challenging to serve,” ACA president and CEO Matthew M. Polka said. “In addition, funding of middle-mile projects— also an ACA priority—would unquestionably improve broadband performance in underserved communities.” ACA filed comments with the Commerce Department’s National Telecommunications and Information Administration, the Agriculture Department’s Rural Utilities Service, and the Federal Communications Commission. Under the American Recovery and Reinvestment Act of 2009 (ARRA), NTIA and RUS have $7.2 billion to distribute in broadband grants and loans. In its comments, ACA emphasized that small operators of cable systems located in both “unserved” and “underserved” areas should have access to funding. “Congress was unequivocal in its economic stimulus legislation that broadband money should be made available for the purpose of providing broadband to both ‘unserved’ and ‘underserved’ areas. The agencies should not favor one area over the other,” Polka said. In its filings, ACA does make a distinction between the types of projects that should be funded in “underserved” and “unserved” areas. ACA urged the agencies to focus on funding middlemile projects in “underserved areas” over those that seek to provide to-the-home, last-mile facilities. According to ACA, the problem with delivery of high-speed broadband capability to “underserved areas” is not a lack of last-mile infrastructure, but an inability for existing operators to run their networks at top speeds because of slow middle-mile connections linking their facilities to Network Access Points (NAPs) that are based near urban zones many, many miles away. “Broadband speeds in underserved communities would ramp up dramatically if NTIA and RUS opted to steer millions in loan and grant dollars toward middlemile projects in ‘underserved’ areas and insisted that access to those facilities be provided on fair and reasonable terms,” Polka said. In the sparsely populated and geographically challenged “unserved” areas, where current economics make providing high-speed Internet nearly impossible, ACA recommended that the agencies fund both lastmile and middle-mile projects. ACA also urged regulators to bear in mind that the majority of ACA members are small businesses that can’t devote the time and expense to filling out lengthy government forms and applications. As a result, ACA stressed the need for a streamlined application process with a minimum amount of paperwork as part of a review that should assure that projects meet the requirements for the grants and that applicants have the resources and expertise to operate the facilities for which funding is sought. Employee Free Choice Act Generates Wide-Spread Opposition Dubbed the Employee Free Choice Act of 2009, a bill recently reintroduced by congressional Democrats (HR 1409/S 560) would effectively eliminate secret ballot elections from the union organizing process by favoring a card-check system where union organizers would only need to gather signatures from more than 50 percent of the employees in a workplace or bargaining unit. The legislation would also impose mandatory arbitration awards on employers and employees as the most likely method of determining collective bargaining terms in a first contract for at least two years and would impose onerous penalties on employers for unfair labor practices committed during organizing campaigns or before a first contract is reached. While unions broadly support the measure, it has also attracted vigorous opposition from PCCA members, business groups, and even longtime liberal Democrats. PCCA Board member John Fluharty has been following the legislation and offered the following opinion: “This bill takes away our freedom of a private ballot vote. This is a dangerous precedence-setting move that we should not allow to take place. The current process allows the union the opportunity to organize and the employee the right to a private ballot. If passed as it currently stands, it will affect every contractor News Briefs Continued from page 12

PCCA Journal|2nd Quarter 2009 15 (both union and open shop) and every supplier in the PCCA. Additionally if a union gets 50 percent plus one signature, you will be notified by the union that you are in fact unionized and have 90 days to negotiate a contract. If you do not come to terms in the 90 days, you will be sent to binding arbitration to resolve the dispute. Ironically, you as an owner may never know about it until the union notifies you and it is too late. The House will pass this easily, and if it reaches the president’s desk, he will sign it. But we have a chance in the Senate, so please notify your U.S. Senator and express your concerns.” The bill also drew the ire of the American Pipeline Contractors Association, which in a policy statement said, “None of the proposed radical changes to wellestablished labor law, alone or in combination, will bring about positive change for American workers or employers. The legislation poses not only an assault on an individual’s right to privacy, but a direct threat to economic growth and job creation. A recently released study indicates that the increased unionization likely to result from passage of EFCA would likely result in the loss of over 600,000 jobs in America. At this time of great economic uncertainty, Congress should not enact any legislation that threatens our economic competiveness, including the Employee Free Choice Act.” The proposed legislation also drew opposition from an unlikely source, former Democratic senator and presidential candidiate Gearge McGovern. “As a longtime friend of labor unions, I must raise my voice against pending legislation I see as a disturbing and undemocratic overreach not in the interest of either management or labor,” McGovern said. “The legislation is called the Employee Free Choice Act, and I am sad to say it runs counter to ideals that were once at the core of the labor movement. Instead of providing a voice for the unheard, EFCA risks silencing those who would speak.” McGovern noted that there are “many documented cases where workers have been pressured, harassed, tricked, and intimidated into signing cards that have led to mandatory payment of dues” and said that “workers could lose the freedom to express their will in private, the right to make a decision without anyone peering over their shoulder, free from fear of reprisal.” Obama Nominates Two for NLRB Posts Craig Becker and Mark Pearce are President Barack Obama’s nominees to fill two of three vacancies on the National Labor Relations Board (NLRB). The board primarily acts as a quasi-judicial body that oversees the National Labor Relations Act, which governs relations among unions, employees, and employers in the private sector. Becker is associate general counsel to the Service Employees International Union and the AFL-CIO. He has practiced and taught labor law for the past 27 years, including at UCLA, the University of Chicago, and Georgetown law schools. Becker has argued labor and employment cases in nearly every federal court of appeals and before the U.S. Supreme Court. Pearce has been a labor lawyer his entire career. He’s a founding partner of Creighton, Pearce, Johnsen & Giroux law firm in Buffalo, N.Y., where he practices union-side labor and employment law before state and federal courts and agencies, including the U.S. Department of Labor and the NLRB. Pearce served as attorney and district trial specialist for the NLRB in Buffalo from 1979 to 1994 and has taught several courses in the labor studies program at Cornell University’s School of Industrial Labor Relations Extension. Traditionally, the political makeup of the board favors the president’s party. If approved by the Senate Health, Education, Labor and Pensions Committee and confirmed by the full Senate, Becker and Pearce will join current board members Wilma B. Liebman, a Democrat, and Peter Carey Schaumber, a Republican.

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PCCA Journal|2nd Quarter 2009 17 When PCCA Past President Steve Spears (Bonneville Construction, Hato Rey, P.R.) was looking to help a group of local contractors gain more knowledge about the burgeoning wind energy market, he naturally thought of various PCCA colleagues who are working wind projects in the states. Spears mentioned these colleagues to Pancho Diaz Masso, president of the Puerto Rico AGC Subcontractors Committee, and Masso asked him to inquire about possible site visits to ongoing wind projects. One of Spears’ first calls was to PCCA board member Jim Dillahunty, vice president of Henkels & McCoy, and within a matter of days, the two were planning a visit by a delegation of contractors from Puerto Rico to a Henkels & McCoy jobsite in Portland, Oreg. Coordinating the visit proved to be a challenge because, as Spears said, “blocking out time for 12 to 14 busy contractors is no simple affair.” The visit was set for late October/early November of 2008. Spears worked with Ed Campbell, vice president western region for Henkels & McCoy who is directly in charge of the projects, and said his “willingness to assist in coordination, supplying guides and instructors, etc., was key to making this event the success that it was.” The group of contractors traveled from Puerto Rico to Portland on a Saturday and kicked off their visit with a Sunday afternoon trip to local vineyards, where they sampled some of Oregon’s famous Pinot Noirs. Campbell met with the group on Sunday evening for preliminary coordination and quite a bit of Q&A, which Spears said continued throughout the visit. “First we took him out for a nice dinner at Shulas, then we peppered him with questions, individually and collectively, all Sunday evening and all day Monday on our trip to and from the site,” Spears said. “I really cannot say enough about how accommodating Ed was before and during our visit.” At the jobsite on Monday, Project Continued on page 18 Contractor Group Experiences the Value of PCCA Membership

PCCA Journal|2nd Quarter 2009 18 Manager Brian Freepons stepped in as the group’s guide. “Brian gave us the detail (macro and micro) of what goes into building these projects,” Spears said. “Henkels’ specialty role on these projects is as the electrical and fiber optic components contractor. Brian first gave us an overview at the field office trailer, also a safety briefing and then was our on-site guide. It was really great that Henkels & McCoy was willing to give us so many perspectives and was so generous with their time and knowledge. It was also noted that the facilities Henkels was building were of superlative quality; the substations were true things of beauty built by first-rate people with first-line equipment.” The visiting contractors were delighted with how much they learned during their trip. “The first thing we learned was that we had chosen incredibly attentive and knowledgeable hosts,” Spears said. “Their commitment to hosting us was far beyond the expected.” In terms of technical knowledge, Spears said the group about learned many things, including • The commitment of government to facilitate permitting and development, • The public/private partnerships that finance, construct, and administer these projects, • The mix of contracting entities (specialty contractors) required to build these projects, • The project management systems employed to insure smooth project development, and • The incredibly sophisticated logistics coordination required to guarantee material and equipment delivery to remote construction sites (the Arlington site they visited is 100 miles from Portland). “You really only get a feel for the enormity of this task when you are standing on the ground beside a 130-foot long wind blade or beside a crane that has a 40- by 80-foot base,” Spears said. “Probably the most important single thing we learned is that we, the P.R. Associated General Contractors, can do this work. Very definitely specialized skills, specialized tools, equipment, and special materials are required, but there is nothing in this work that we are not capable of. This is interesting and challenging work, but it is not rocket science. To be honest, this revelation was exhilarating to our group; it made our day.” Spears contacted the PCCA staff about this article because he wanted to thank Dillahunty, Campbell, and everyone at Henkels & McCoy but also because he wanted to illustrate the value of PCCA membership. “I have been blessed in my career to have encountered people who were selflessly willing to teach me what they had learned over their careers,” he said. “Whatever level of success I am perceived to have achieved is due in large part to those people. In the PCCA I meet many such people: Robert and Stephen Bauchman (my mentors and partners), Max Clark, Gene Klaasmeyer, Kenny Trawick, and Jimmy Brooks, all PCCA past presidents. However, the rubber meets the road in the PCCA with the rank-and-file members who are there to share what they know and learn from others. The information transfer that has always been a key value-added benefit of the PCCA has now been made official with the Young Construction Professionals group.” “That said,” he continued, “Henkels’ willingness to share must be understood to be a sincere extension of their professionalism and a solid corporate culture. These values are also exemplified by the PCCA and most of its members. Obviously, Henkels and PCCA project the same positive values. As a result, the Puerto Rico General Contractors Association came away with much more than expected.” Wind Farm Visit Continued from page 17

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PCCA Journal|2nd Quarter 2009 21 The rise of PCCA President Ron Tagliapietra in the construction industry, from young laborer to successful executive to association president, is a classic American success story, complete with strong family, service to country, influential role models, and lots of hard work. Tag (as he is affectionally known throughout the industry) is now a senior vice president at Michels Corporation, an internationally renowned engineering and construction contractor based in Brownsville, Wis., but he readily recalls his start in the industry and what he brought to the job. “I was educated early on about dedication and hard work while excelling in high school sports,” he said. “I went to work for Michels Corporation three days after graduating from high school in 1964. At that time it was definitely the best paying job in the area. My first job was turning a cable reel on the only cable crew Michels had at the time. Michels was a very young, small company with just a handful of crews.” The growing company needed strong, young workers but so did the country, and about 18 months into Ron’s new career, Uncle Sam came calling. “I was drafted into the U.S. Army and served from 1965 to 1968. While serving in Vietnam with the 196th Light Infantry Brigade, I became a decorated Platoon Leader,” he said. “When I returned from my tour in Vietnam in 1968, I went to Fort Benning, Ga., to counsel and advise soldiers who were next in line to be deployed to Vietnam.” Anyone who knows Tag will tell you he’s a naturalborn raconteur, and sure enough he had a story about how the Army made it easy for him to make the decision to become an Officer. “I was in the Army for just a few months when I was called to K.P. duty or kitchen patrol,” he said. “I found myself surrounded by mounds of potatoes all waiting to be peeled. I peeled potatoes for 12 hours straight that day and never wanted to see another potato as long as I lived. Soon after, I was offered a chance to go to Officer Candidate School in order to become a 2nd Lieutenant. My one and only question before accepting the invitation was, ‘Would I have to do KP duty or peel potatoes?’ They said no, and I said yes to Officer School!” “That started the most challenging 26 weeks of hell that me and my body ever endured. My class started out with more than 75 candidates and ended up graduating about 25 officers. It made a man out of me at a very young age.” Tag: Hard Work Does Pay Off Continued on page 22

PCCA Journal|2nd Quarter 2009 22 In the Game for Good Once out of the military, Tag considered attending college in his home state of Wisconsin so he could play football. “That’s when Dale Michels re-entered my life,” he said. “Dale convinced me to come back to work for him instead of going on to college. I ended up saying yes to Dale, and looking back, I guess you could say things worked out pretty well. Dale was right, again!” Not long after starting back up with Michels, Tag realized that he was in the industry for the long haul. “It was in 1969 when I was promoted from equipment operator to crew foreman,” he said. “I liked that there was always a new and different challenge daily, not the same thing every day.” When asked about what he likes most about working in construction, he said. “It is very challenging and rewarding. Hard work does pay off!” “Today the biggest challenge is finding young people with a work ethic that is up to my standards. They need to understand that the sky’s the limit if they’re willing to put in the hard work. You don’t start at the top; you have to dedicate yourself and work hard to get Tag Continued from page 21 An Integral Part of an Industry Giant Michels Corporation began back in 1959 as a pipeline construction company and in 2009 is celebrating 50 years in the construction business. Senior Vice President Ron “Tag” Tagliapietra has been with the family-owned Michels Corporation for 45 of those 50 years, and after a successful tenure heading up the Telecommunications Division, Tag was just recently put in charge of the organization’s Wind Energy Division. Wind energy is just one of the many professional services Michels offers: • Horizontal Directional Drilling • Materials • Paving • Telecommunications • Engineering & Design • Pipe Services • Power • Tunneling • Pipeline Michels’ expert craftsmanship, timely and costeffective operations have earned the company several prestigious awards throughout the industry, including: • Trenchless Technology’s Project of the Year Award, • TransCanada’s Vice President’s Safety Award, • The Innovation Award for Quarry Quest, • Record-breaking Directional Drills for both length and diameter, and • MCI’s Contractor of the Year Award. In 2008, Engineering News-Record rated Michels as one of the Top 100 Contractors and one of the Top 10 Utility Contractors in the United States (based on sales).

PCCA Journal|2nd Quarter 2009 23 KGP Logistics, Inc. kgptel.com 800-755-3004 KGP Logistics, formerly EMBARQ Logistics, continues to be committed to leveraging our long-standing strengths in logistics, deployments and equipment distribution, while continuing to provide lowest total cost solutions and an unmatched commitment to Customer Service. KGP Logistics is one of the country’s largest single-source value-added suppliers of supply chain services, communications equipment and integrated solutions to the telecommunications industry. We have a diverse and valued customer base, a national logistics network, and a portfolio of manufacturer partnerships that is second to none. We will continue to focus on delivering reliable and relevant service, lowering you’re total cost to compete, and providing uncompromised Customer Service. That remains our objective at KGP Logistics – just as it has been for the past 30 years. ...EMBARQ Logistics is now KGP Logistics Our long-standing history of serving our customers continues... Logistics KGP there.” “In the early years of my employment, the biggest challenge was traveling for weeks at a time and being away from my family,” he said. “I couldn’t have done it without Bonnie. She was a very good and understanding wife and an excellent mother raising our two children.” Family has always been important to Tag. “I came from a strong Italian family background,” he said. “All four of my grandparents immigrated from Italy in the early 1900s. I have two brothers and one sister. My wife, Bonnie, and I were married in 1969 and have been blessed with two children, Gina and Tony. We also have four beautiful grandchildren: Tyler, Luca, Calina, and Stella.” “My grandchildren have changed me a lot,” he continued. “When my children were young, I worked so much and spent so much time on the road that I didn’t get to watch them and appreciate them as much as I would have liked. Now I’m more laid back and have a chance to appreciate all the little things that I missed 30 years ago.” Many of the values that have helped Tag succeed in the industry were ingrained in him at an early age. “My mother and father lived through the Great Depression, and they taught me the value of a dollar and a good work ethic. My father was the hardest working, most Continued on page 24

PCCA Journal|2nd Quarter 2009 24 dedicated individual I have ever known,” he said. “His rule was that no one will work harder or out-produce any member of the Tagliapietra family. His entire career was in the Italian cheese business, where he earned numerous industry awards.” Learning from the Best Tag also had influential role models on the job: the late Dale Michels, founder and president of Michels Corporation, and the late Ted Koenigs, partner to Dale Michels and the company’s executive vice president. “Sometimes Dale could be real demanding,” Tag said. “I could get so mad at him, but you had to love him. He was like a Bob Knight or a Woody Hayes— a tough man but a fair man. His people would do anything for him. He knew how to get the most out of a crew. He knew the strengths of each individual and how to apply those strengths toward the common goals. Dale was also an excellent organizer and had a great memory, with names and with all the projects he worked on.” “Ted was another unique individual,” Tag continued. “He had a short temper, but a heart of gold. As fast as he’d get angry was as fast as he’d forget it. When I started estimating, I worked with Ted, and he taught me a whole lot. He was a very, very good estimator and a great organizer.” “Both Dale and Ted were very good at marketing and public relations, not just with customers, but with employees as well.” Ted Koenigs, a PCCA past president and a member for more than 30 years, also introduced Tag to PCCA. “When Ted retired from the Michels Corporation, Bonnie and I started representing the company,” Tag said. “The first convention we attended was in March of 1995 at Amelia Island. What I remember most about it is what a great bunch of people were there and how they welcomed us. Everyone was so very friendly. I only knew a handful of people beforehand, but after two days they treated us like longtime friends. I was also impressed by the caliber of people attending the convention, all presidents and vice presidents of their companies, a very high-level group.” Once Again Answering Duty’s Call That “high-level” group of contractors and suppliers also influenced Tag’s decision to take an active role in the association. “The past PCCA presidents are all leaders in the industry,” he noted. “When you see such a distinguished group of men and women working hard for the benefit of the industry—not just for themselves and their own interests but for all of us—you want to get more involved. I feel like it’s my responsibility to do whatever I can as well.” Tag has been an active member of PCCA’s Membership & Marketing Committee and one of the association’s top member recruiters for several years. He has also been a tireless fundraiser for PCCA, from selling (and selling and selling and selling...) raffle tickets to getting the annual auction up and running, which is so important to the organization’s financial success. As PCCA president, Tag is aiming to host “memorable and successful meetings that people will talk about for years to come,” and the recent convention on Hawaii’s Big Island went a long way toward achieving that goal. (See a recap of the event beginning on page 27, as well as a preview of the upcoming Mid-Year Meeting beginning on page 49.) He is also looking to “strengthen our financial position and increase our membership for both contractors and associates. And have fun!” Tag has a realistic view of his biggest challenges: Retaining members, both associates and contractors, and getting all members to become more actively involved. “I tell prospective members—and I hope some of them are reading this article—give us a try. Come to one of our conventions, and you will have an experience unlike any other meeting in our industry. Come to one, and we’ll have you hooked. You’ll be a repeat participant, just like Bonnie and I were after that convention in Amelia Island. It’s an excellent networking opportunity, and it’s a lot of fun with a lot of great people. I promise!” Tag Continued from page 23

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