PCCA Journal 4th Quarter 2009

The Official Publication of the Power & Communication Contractors Association 4th Quarter 2009 Also Inside: • One Man’s Opinion:The New Normal • Pre-Employment Screening: Understanding Background Check Requirements • 2010 PCCA Convention Preview Every Business Should Have an Emergency Plan Now! emporary Resort World®, Florida , 2010 w! esort orida N e W , 65th Annual Convention Details Inside

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4th Quarter 2009 President Ron Tagliapietra Michels Corporation President-Elect Kevin Mason ElectriCom, Inc. 1st Vice President Larry Libla Libla Communications 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 Robert Orr Sherman & Reilly, Inc. 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 One Man’s Opinion:The New Normal 7 By Stephen Spears Surviving today to fight another day tomorrow has become its own reward. It is the “new normal.” The internal and external pressures brought to bear on the American economy have changed the definition of success today and probably forever. How did we get here? How do we deal with this new reality? These are the things we must explore. Pre-Employment Screening: Understanding Background Check Requirements 17 By Brandon G. Phillips Recently, PCCA members have experienced a rise in background screening requirements from companies like Verizon, Embarq, AT&T, and CentryLink. The trend comes in part due to the rise in negligent hiring lawsuits and the lack of consistent screening procedures. You can be proactive with meeting these requirements by implementing new-hire screening policies that will help you stay ahead of the curve and mitigate some of the risk associated with your business. Every Business Should Have an Emergency Plan 21 How quickly your company can get back to business after a terrorist attack, tornado, fire, or flood often depends on emergency planning done today. This article provides information on how business owners and managers should prepare their employees, operations, and assets in the event of an emergency. News Briefs 9 Safety News 30 2010 PCCA Convention Preview 33 PCCA Member News 41 Industry Calendar 46 Advertiser Index 46

PCCA Journal|4th Quarter 2009 7 Surviving today to fight another day tomorrow has become its own reward. It is the “new normal.” The internal and external pressures brought to bear on the American economy have changed the definition of success today and probably forever. Day-to-day survival is a reward in and of itself. It is the best we can expect for the foreseeable future. While that may seem to be a harsh reality, it is the cold, hard truth. How did we get here? How do we deal with this new reality? These are the things we must explore. The most significant events to examine are the emergences of new global economic orders. We (the United States) continue to be a leading world economy. We, however, are no longer the world’s leading economy. The acquisition of wealth and the emergence of large voracious consumer economies in China, India, and Chile, among other third-world economies, have driven competition. Those nations have quickly educated their people. They have demonstrated their ability to organize broad planned national initiatives. They have followed them through, and as a result that has shaken us to our core. These programmed strategies allow the “new” economies to continue to grow while the rest of the world’s leading economies (G-8) are in recession. While we in the United States would love to shift the blame for our difficulties, that is not so easily done. Complacency in dealing with greed and corruption are causal factors. Failure to properly educate and discipline our children is another. A widespread attitude of entitlement by birthright that permeates our society is ludicrous but real. The lack of a conscious, consistent, concerted plan at the national level is forcing us into incredible debt in an effort to spend our way out of recession. (While this tactic may provide some shortterm relief, it does not fix the problems.) Our fundamental problems are not going to fix themselves. We, as a nation of individuals, must collectively move to fix them. We as business people, construction company owners, executives, and workers must redefine who we are and what we are willing to do to deal with the “new normal.” Success is survival. Survival requires daily, weekly, monthly, and yearly analysis of who we are and where it is we want to go. Some companies grow while many more fail. Those who survive recognize that they must work cheaper, faster, and better every day to earn the right to do the same tomorrow. We are no longer competing against only our classic competitors; we are now competing against the pressures exerted by developing economies. They (the new economic powerhouses) want what we have and what we have had. They are willing to educate, sacrifice, plan, act, reinvent, and follow through in order to achieve. Are we? Consulting groups like FMI are called upon more than ever these days. They are doing brisk business selling services and advice on “how to survive.” Everybody wants to be better, cheaper, and faster. We all want to be “lean.” We all want to deliver quality goods and services. We all want to survive. The question comes down to being willing to do the work that it takes to make those things happen. Are you willing? The “new normal” is that survival, growth, and progress are their own rewards. They are not permanent. They are not given. They are to be earned. The sooner we realize that our destiny is in our own hands, the sooner we can act to correct the deficiencies in our internal and external worlds in order to start making real progress. The decades of American dominance as the world’s leading economy as a given are over. The beginning of the future has commenced. It all boils down to the survival of the fittest. Those who are willing to do the work to outwork their internal and external competitors will prevail. Prevailing as a nation is a challenge of incredible complexity. Survival as individuals, as companies, and as industries is no less difficult. Are we willing to do the work? Associations such as PCCA must be catalysts in spreading the word, educating, and leading. We have the resources. Do we have the will? Can we collectively and as companies, associations, and as a nation rise to the challenge? We at Bonneville Contracting say we’re ready. We’re betting on us. What are you going to do? One Man’s Opinion: The New Normal By Stephen Spears

FMI Corporation is the premier investment banking and management consulting firm serving the worldwide engineering and construction industry. For more than 55 years, FMI has built a reputation for assisting our clients in the creation and realization of value in their firms. MERGERS & ACQUISITIONS | FINANCIAL ADVISORY SERVICES FMI is pleased to have served as an exclusive financial advisor in the following transactions: For more information, visit our website at www.fminet.com, or contact: W. Christopher Daum at 919.785.9264 / cdaum@fminet.com *Represented by FMI Riggs Distler & Company, Inc.* Cherry Hill, NJ has been acquired by Thirau, LLC a subsidiary of CVTech Group, Inc. Drummondville, Québec Engineering Associates, Inc.* and its affiliate EA Technical Services, Inc.* Alpharetta, GA were acquired by Quanta Services, Inc. Houston, Texas

PCCA Journal|4th Quarter 2009 9 News Briefs News Briefs continued on page 10 Agriculture Secretary Tom Vilsack recently announced that 46 rural utilities and cooperatives in 30 states have been selected to receive $1.16 billion in loans to build and repair 11,249 miles of distribution and transmission lines and make system improvements that will benefit 109,250 rural customers. For example, Fox Islands Wind, LLC, in Vinalhaven, Maine, has been selected to receive a $9.5 million loan to provide clean, low-cost renewable energy through wind power. Fox Islands provides power to 1,900 consumers in rural Maine on the Penobscot Bay via submarine cable to the mainland, where electric rates range from two to seven times the national average. When the Fox Islands project is complete, it will be the largest coastal wind-power facility in New England and the secondlargest facility on the East Coast. Meanwhile, Southwest Louisiana Electric Membership Corporation (SLEMCO) has been selected to receive a $71.2 million loan to repair damages incurred during tropical storms and hurricanes. SLEMCO, headquartered in Lafayette, La., serves 93,000 consumers with more than 9,500 miles of distribution and transmission lines across nine parishes. Below is a complete list of the selected borrowers. Funding of each loan recipient is contingent upon the recipient meeting the conditions of the loan agreement. USDA Announces More Than $1 Billion in Electric Infrastructure Loans Arkansas, Oklahoma, and Texas: Southwest Arkansas Electric Cooperative Corporation; $40,000,000 loan Colorado and Nebraska: Highline Electric Association; $4,121,000 loan Colorado, Nebraska, New Mexico, and Wyoming:Tri-State Generation and Transmission Association, Inc.; $102,511,000 loan Florida:West Florida Electric Cooperative Association, Inc.; $19,845,000 loan Florida:Talquin Electric Cooperative, Inc.; $47,571,000 loan Idaho and Montana: Missoula Electric Cooperative, Inc.; $17,837,000 loan Idaho, Nevada, and Utah: Raft River Rural Electric Cooperative, Inc.; $7,225,000 loan Illinois: Monroe County Electric Cooperative, Inc.; $7,000,000 loan Iowa: Southwest Iowa Rural Electric Cooperative; $6,000,000 loan Kansas: Heartland Rural Electric Cooperative, Inc.; $10,600,000 loan Kansas: Flint Hills Rural Electric Cooperative Association, Inc.; $5,000,000 loan Kansas:The Lane-Scott Electric Cooperative, Inc.; $9,860,000 loan Kentucky: Big Sandy Rural Electric Cooperative Corporation; $10,397,000 loan Kentucky: East Kentucky Power Cooperative, Inc.; $140,716,000 loan Kentucky: Grayson Rural Electric Cooperative Corporation; $16,438,000 loan Louisiana: Southwest Louisiana Electric Membership Corporation; $71,247,000 loan Louisiana: Northeast Louisiana Power Cooperative, Inc.; $9,200,000 loan Maine: Fox Islands Wind, LLC; $9,500,000 loan Minnesota: Stearns Cooperative Electric Association; $20,000,000 loan Minnesota: Crow Wing Cooperative Power and Light Company; $28,000,000 loan Mississippi: Magnolia Electric Power Association; $31,000,000 loan Mississippi: South Mississippi Electric Power Association; $55,663,000 loan Missouri: New-Mac Electric Cooperative, Inc.; $5,800,000 loan Missouri: Citizens Electric Corporation; $26,000,000 loan North Carolina: Central Electric Membership Corporation; $7,500,000 loan North Carolina: Rutherford Electric Membership Corporation; $16,000,000 loan North Dakota: McLean Electric Cooperative, Inc.; $6,500,000 loan North Dakota and Minnesota: Square Butte Electric Cooperative; $13,235,000 loan Ohio: Consolidated Electric Cooperative, Inc.; $21,182,000 loan Oklahoma:Verdigris Valley Electric Cooperative, Inc.; $15,246,000 loan Oklahoma: Northwest Oklahoma Electric Cooperative; $19,370,000 loan Oklahoma and Texas: Southwest Rural Electric Association, Inc.; $4,628,000 loan Pennsylvania: REA Energy Cooperative, Inc.; $17,850,000 loan South Carolina: Horry Electric Cooperative, Inc.; $118,935,000 loan South Dakota: Central Electric Cooperative, Inc.; $11,412,000 loan South Dakota: Butte Electric Cooperative, Inc.; $13,331,000 loan South Dakota, Iowa, and Minnesota: Sioux Valley - Southwestern Electric Cooperative, Inc.; $40,697,000 loan South Dakota, Montana, and North Dakota: Grand Electric Cooperative, Inc.; $10,890,000 loan Tennessee: Meriwether Lewis Electric Cooperative; $15,000,000 loan Tennessee: Duck River Electric Membership Corporation; $47,500,000 loan Tennessee: Sequachee Valley Electric Cooperative; $13,000,000 loan Texas: Rita Blanca Electric Cooperative, Inc.; $12,216,000 loan Texas: Rusk County Electric Cooperative, Inc.; $13,164,000 loan Texas: San Patricio Electric Cooperative, Inc.; $8,545,000 loan Virginia: Central Virginia Electric Cooperative; $24,000,000 loan Wisconsin: Jump River Electric Cooperative, Inc.; $4,000,000 loan

PCCA Journal|4th Quarter 2009 10 News Briefs Continued from page 9 Agencies Report Strong Demand for Broadband Funding The Commerce Department’s National Telecommunications and Information Administration (NTIA) and the Department of Agriculture’s Rural Utilities Service (RUS) announced that they received almost 2,200 applications requesting nearly $28 billion in funding for proposed broadband projects reaching all 50 U.S. states, territories, and the District of Columbia. This is the first round of American Recovery and Reinvestment Act funding aimed at expanding broadband access and adoption to help bridge the technological divide and create jobs building internet infrastructure, with $4 billion available through loans, grants, and loan/ grant combinations. The Recovery Act provided a total of $7.2 billion to NTIA and RUS to expand access to and adoption of broadband services. Of that funding, NTIA will use $4.7 billion to deploy broadband infrastructure in unserved and underserved areas in the United States, expand public computer center capacity, and encourage sustainable adoption of broadband service. RUS will invest $2.5 billion to facilitate broadband deployment in primarily rural communities. Approximately $2.4 billion from RUS and up to $1.6 billion from NTIA is available in this first grant round. Applications came in from a diverse range of parties including state, local, and tribal governments; nonprofits; industry; anchor institutions, such as libraries, universities, community colleges, and hospitals; public safety organizations; and other entities in rural, suburban, and urban areas. “Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the Nation,” said Lawrence E. Strickling, assistant secretary for communications and information and administrator of NTIA. “We will move quickly but carefully to fund the best projects to bring broadband and jobs to more Americans.” “The overwhelming response we received underscores the extensive interest in expanding broadband across the country. Rural communities clearly recognize that broadband can expand their economic opportunities and create jobs,” said Jonathan Adelstein, administrator, Rural Utilities Service. “The big demand for loans as well as grants demonstrates that we can leverage private investment with USDA’s $2.5 billion to deliver the greatest bang for the taxpayers’ buck.” A preliminary analysis of applicant-reported data shows that NTIA and RUS received requests for grants and loans totaling nearly $28 billion. When including about $10.5 billion in matching funds committed by Continued on page 12 FMI recently announced that its Nonresidential Construction Index (NRCI) for the third quarter is 44.8 and essentially unchanged from the second quarter reading of 45.0. AN FMI press release said, “This result leads us to think we are seeing the bottom of this long recession for nonresidential contractors. However, there isn’t much this quarter indicating recessionary conditions, for nonresidential contractors at least, are going to end soon.” Most of the panelists in FMI’s analysis see the shortterm outlook as slightly less bad than last quarter, and FMI takes that as a good sign, even if a small one. A more important and telling sign is seen in this quarter’s results for the one- to three-year outlooks for major construction markets. Panelists have reined in their longer-term optimism, which seems to signal they are expecting a protracted recovery. FMI said that the American Recovery and Reinvestment Act hasn’t yet been that stimulating for nonresidential construction and has led to a certain amount of frustration in the responses in the third quarter. The hope for a quick recovery has faded, and contractors are now slugging it out in the trenches trying to keep their backlogs full and facing increasing competition. Nonetheless, this recession will end, FMI said, and when it does there is a growing sense that there will be a lot of changes in the industry. For instance, panelists expect much more work will come from the public sector than from private owners as the recession recedes, and the move to green construction continues to represent a growing trend. FMI Releases Nonresidential Construction Index for Q3 2009

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PCCA Journal|4th Quarter 2009 12 News Briefs Continued from page 10 the applicants, there are more than $38 billion in proposed broadband projects. The applications break down as follows: • More than 260 applications were filed solely with NTIA’s Broadband Technology Opportunities Program (BTOP), requesting over $5.4 billion in grants to fund broadband infrastructure projects in unserved and underserved areas. • More than 400 applications were filed solely with RUS’s Broadband Initiatives Program (BIP), requesting nearly $5 billion in grants and loans for broadband infrastructure projects in rural areas. • More than 830 applications were filed with both NTIA’s BTOP and RUS’s BIP, requesting nearly $12.8 billion in infrastructure funding. (Applicants for infrastructure projects in rural areas must apply to BIP but were given the opportunity to jointly apply to BTOP in case RUS declines to fund their application.) Rural Communities Benefit from Greater Broadband Internet Access A new USDA economic analysis has found that rural communities with greater broadband internet access had greater economic growth than areas with less access. The study, Broadband Internet’s Value for Rural America by economists at USDA’s Economic Research Service, compared counties that had broadband access relatively early (by 2000) with similarly situated counties that had little or no broadband access. Employment growth was higher and non-farm private earnings greater in counties with a longer history of broadband availability. “Rebuilding and revitalizing rural communities is one of my top goals and a key component of the American Recovery and Reinvestment Act, and this study reaffirms that expanding access to broadband is a catalyst for economic development,” said Agriculture Secretary Tom Vilsack. By 2007, the study found, most households (82 percent) with inhome internet access had a broadband connection. However, there was a marked difference between urban and rural broadband use. Only 70 percent of rural households with in-home internet access had a broadband connection in 2007, compared with 84 percent of urban households. Rural America has shared in the growth of the internet economy, the study found. Such benefits as online course offerings for students and continuing education programs have improved educational opportunities, especially in small, isolated rural areas. Telemedicine and telehealth have been hailed as vital to health care provision in rural communities. Most employment growth in the U.S. over the last several decades has been in the service sector, which is especially conducive for broadband applications. Broadband allows rural areas to compete for low-and highend service jobs, from call centers to software development. The farm sector is increasingly comprised of farm businesses that buy inputs and make sales online, the study found. Copies of the study are available at www.ers.usda.gov/publications/ err78. AT&T Study: U.S. Companies Preparing for Economic Recovery in First Half of 2010 U.S. companies are preparing for a global economic recovery to begin in the first half of 2010 according to a new “Road to Growth” study from AT&T. The 2009 AT&T study is based on more than 72 one-on-one interviews with IT executives employed with multinational companies in the U.S. and Europe. The U.S. portion of the study included CIOs and senior information technology executives from approximately 48 multinational companies averaging $4.75 billion dollars revenue and operations in 28 countries. All U.S. executives interviewed for the study work for a U.S company or a U.S. subsidiary of a foreign company, and they have responsibility for making decisions about IT strategy and budget allocations. Below are some of the key findings from the study: In today’s economic climate, U.S. companies have significantly shortened the time frame over which return on investment is delivered. More than half of U.S. IT executives interviewed stated they are under pressure to deliver a return on investment in half or less than half the time. As a result, two-thirds cited that the change has affected their IT budgets, strategies, and priorities. The study found that companies are less willing to invest in longer-term projects or projects where the return does not come quickly. Cost cutting and increasing revenue remain the two primary business goals cited by U.S. companies. To achieve the goals, survive the recession, and move towards growth, IT strategies are focused on: • Reducing operating costs • Improving collaboration with customer and partners • Enhancing workforce performance and productivity “U.S. companies are under added pressure to deliver, and IT investments are more critical than ever before,” said Bill Archer, chief marketing officer, AT&T Business Solutions. “From the study, we expect U.S. companies to come out of the recession leaner and more agile. Technologies that cut cost, reduce redundancies and loss, and improve efficiencies top the priorities list.” News Briefs continued on page 14

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PCCA Journal|4th Quarter 2009 14 Agencies Attempt to Facilitate Transmission Siting on Federal Lands Obama administration officials in October released a Memorandum of Understanding (MOU) signed by nine federal agencies to make it faster and simpler to build transmission lines on federal lands. The goal is to speed approval of new transmission lines, reduce expense and uncertainty in the process, generate cost savings, increase accessibility to renewable energy, and jump-start job creation. President Obama said the agreement “will help break down the bureaucratic barriers that currently make it slow and costly to build new transmission lines on federal lands.” The MOU was signed by the U.S. Department of Agriculture, Department of Commerce, Department of Defense, Department of Energy, Environmental Protection Agency, the Council on Environmental Quality, the Federal Energy Regulatory Commission, the Advisory Council on Historic Preservation, and Department of the Interior. “The process of siting and permitting new transmission lines on federal lands has posed a barrier to efficient grid enhancements....we want to expand and modernize our nation’s transmission grid so we can access renewable energy sources, improve reliability, and reduce grid congestion,” said Nancy Sutley, chair of the White House Council on Environmental Quality. The agreement intends to cut approval time off the normal federal permit process and help break down the barriers to siting new transmission lines by: • Designating a single federal pointof-contact for all federal authorizations; • Facilitating coordination and unified environmental documentation among project applicants, federal agencies, states, and tribes involved in the siting and permitting process; • Establishing clear timelines for agency review and coordination; and • Establishing a single consolidated environmental review and administrative record. Instead of applicants going to multiple agencies, a single lead agency will coordinate all permits and approvals. The new process will keep applications on track by requiring agencies to set and meet clear deadlines and improve transparency by creating a single record to be posted online. The MOU does not alter the authority of any participating agencies, the release said, and all existing environmental reviews and safeguards are maintained fully. News Briefs Continued from page 10

PCCA Journal|4th Quarter 2009 15 www.GMPtools.com +1.215.357.5500 Powered Duct Rod Pusher For Placing Pulling Lines or Fiber Optic Cables into New, Old or Crowded Conduits For use with GMP’s 1/2 inch (13 mm) duct rods Push/pull up to 300 lbs. (136 kg) of load Moves at a rate of up to 130 ft./min. (330 cm/min.) Includes hydraulic power pack Also useful for mapping projects Override capability – allows you to rod occupied ducts Specialty cassette clamp Powered Duct Rod Pusher MADE IN USA In October, Agriculture Secretary Tom Vilsack announced the approval of a $17.4 million loan to Greensburg Wind Farm, LLC, to provide financing for the 10-wind turbine project that will supply power to the community of Greensburg, Kans. “This project will not only enhance our country’s long-term energy security by producing clean, renewable energy, but also create green jobs and generate income in the local community,” Vilsack said. The total project cost is estimated at $23.3 million. Approximately, $17.4 million will come in the form of a loan to Greensburg Wind Farm, LLC, a subsidiary of John Deere Renewables, with the remaining $5.8 million, or 25 percent of the total project cost, being provided through an equity investment by Deere & Company. The loan will support the 10-wind turbine project that will generate 12.5 MWs of electricity that will serve the electric needs of the City of Greensburg and other rural communities through the Kansas Power Pool. “I am proud of the long standing commitment by USDA Rural Development’s Rural Utilities Service toward working with community-based electric cooperatives to find new and more energy independent ways to power rural America,” said Rural Development Under Secretary Dallas Tonsager. Funding of the loan is contingent upon the recipient meeting the conditions of the loan agreement. Since a tornado devastated Greensburg in 2007, USDA Rural Development has provided an estimated $20 million in financing to help with the community rebuilding efforts. Funding includes nearly $5.9 million to support local housing, $10 million in community facility funding to support local hospital efforts, and $3.6 million in economic development assistance. USDA Announces $17.4 Million Loan to Expand Wind Energy Generation

PCCA Journal|4th Quarter 2009 17 Within the past decade, background checks have become an instrumental part of the hiring process. Historically, companies took a resume or application at face value and, consequently, often found themselves with employees that were not qualified for the positions they were working in. Human resource professionals have since realized that a resume or application is simply a job candidate telling them exactly what they wanted to hear or what the candidate wanted to say. Further, companies have found that conducting a simple criminal check, motor vehicle search, or other searches will lessen the likelihood of a negligent hiring situation. Recently, PCCA members have experienced a rise in background screening requirements from companies like Verizon, Embarq, AT&T, and CentryLink. The trend comes in part due to the rise in negligent hiring lawsuits and the lack of consistent screening procedures in approximately 20 percent of U.S. companies. You can be proactive with meeting these requirements by implementing new-hire screening policies that will help you stay ahead of the curve and mitigate some of the risk associated with your business. There are several common components of the new screening requirements that you should be aware of. Common background screening requirements include: • A Social Security number trace, • A seven- or ten-year County Criminal search in all counties of residence and employment, • A National Sex Offender Registry search, • A search of the Office of Foreign Asset Control (OFAC) database, • A seven- or ten-year Federal Criminal Districts search in all federal districts of residence and employment, Verifi • cation of employment for the past seven-year employment history, • An education verification of highest degree earned, and A fi • ve-panel non-DOT drug test. Another common requirement is the turnaround of completing the background checks. In most cases, five to seven business days are given from the first day of the contract assignment to provide the required background check results. A typical background search should take less than 48 hours, so it’s a short period of time to wait for peace of mind. Motor vehicle checks are essential for all employees who are asked to operate motor vehicles as part of their work or for any manager or executive. Motor vehicle checks that reveal someone who drinks and drives, for example, can be very revealing about a person’s character. Hiring someone without performing an adequate background check can be risky. Negligent hiring is a growing area of civil litigation, and lawsuits have grown over the past several years. Statistics show the following: Human Resources Pre-Employment Screening: Understanding Background Check Requirements By Brandon G. Phillips Hiring someone without performing an adequate background check can be risky. Negligent hiring is a growing area of civil litigation, and lawsuits have grown over the past several years.... A pizza restaurant has been sued for $8 million for not completing an adequate background investigation.The company hired a convicted child molester who was accused of raping two teenage employees. Continued on page 18

PCCA Journal|4th Quarter 2009 18 • The average negligent hiring lawsuit costs approximately $1.6 million. • Employers in some industries using criminal record checks as a part of their hiring process are finding that two out of every ten applicants have a criminal record. • A recent Time/CNN poll revealed that 37 percent of those surveyed cited workplace violence as a growing problem in the nation. • According to the U.S. Department of Justice, acquaintances or individuals well known to the victims committed 54 percent of reported violent workplace crimes. Only one percent of violent workplace crimes were committed by relatives of the victims. • A pizza restaurant has been sued for $8 million for not completing an adequate background investigation. The company hired a convicted child molester who was accused of raping two teenage employees. • A furniture company in Florida was ordered to pay $2.5 million for failing to check the background of a deliveryman after he assaulted a customer. A study conducted by the American Management Association reported annual losses to U.S. business due to: • Employee pilferage—more than $10 billion • Commercial bribery—more than $10 billion • Computer fraud—more than $1 billion • Embezzlement—more than $4 billion • Vandalism—more than $2.5 billion • Burglary—more than $2.5 billion • Insurance/workers’ compensation fraud—more than $2 billion • Shoplifting—more than $2 billion • Arson—more than $1.3 billion As you can see, being proactive with implementing background screening procedures of potential employees is a small investment that can save your company thousands, maybe millions, of dollars in the long run. Brandon Phillips is the CEO and president of Global HR Research, LLC, an industry-leading pre-employment screening firm based in Bonita Springs, Fla. For more information, call (800) 790-1205 ext. 102 or go to www. GlobalHRResearch.com. Human Resources Continued from page 17

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PCCA Journal|4th Quarter 2009 21 How quickly your company can get back to business after a terrorist attack, a tornado, a fire, or a flood often depends on emergency planning done today. While the Department of Homeland Security is working hard to prevent terrorist attacks, the lessons of the 1993 World Trade Center bombing, the 1995 Oklahoma City bombing, and the September 11, 2001, terrorist attacks demonstrate the importance of being prepared. When you also consider that the number of declared major disasters nearly doubled in the 1990s compared to the previous decade, preparedness becomes an even more critical issue. Though each situation is unique, any organization can be better prepared if it plans carefully, puts emergency procedures in place, and practices for emergencies of all kinds. America’s businesses form the backbone of the nation’s economy; small businesses alone account for more than 99 percent of all companies with employees, employ 50 percent of all private sector workers, and provide nearly 45 percent of the nation’s payroll. If businesses are ready to survive and recover, the nation and our economy are more secure. A commitment to planning today will help support employees, customers, the community, the local economy, and even the country. It also protects your business investment and gives your company a better chance for survival. Ready Business (www.ready.gov/business) outlines commonsense measures business owners and managers can take to start getting ready. It provides practical steps and easy-to-use templates to help you plan for your company’s future. These recommendations reflect the Emergency Preparedness and Business Continuity Standard (NFPA 1600) developed by the National Fire Protection Association and endorsed by the American National Standards Institute and the Department of Homeland Security. It also provides useful links to Every Business Should Have an Emergency Plan Editor’s note:The following information was provided by Ready Business, which was launched in 2004 by the U.S. Department of Homeland Security and the Advertising Council.The Ready campaign was designed to educate and empower Americans to prepare for and respond to emergencies, and Ready Business focuses specifically on business preparedness. It helps owners and managers of small and mediumsized businesses prepare their employees, operations, and assets in the event of an emergency. Continued on page 22

PCCA Journal|4th Quarter 2009 22 resources providing more detailed business continuity and disaster preparedness information. Business continuity and crisis management can be complex issues depending on the particular industry, size, and scope of your business. However, putting a plan in motion will improve the likelihood that your company will survive and recover. The following information is a good start for small to mid-sized businesses. Companies that already have their emergency plans in place can continue to help create a more robust sustainable community by mentoring businesses in their own supply chain and others needing advice. Preparing makes good business sense. Get ready now. Plan to Stay in Business Business continuity planning must account for all hazards (both man-made and natural disasters). You should plan in advance to manage any emergency situation. Assess the situation, use common sense and available resources to take care of yourself, your workers, and your business’s recovery. Be Informed Risk assessment is a sophisticated area of expertise that can range from self-assessment to an extensive engineering study. The specific industry, size, and scope of your individual company will determine your organization’s risk assessment needs. Know what kinds of emergencies might affect your company both internally and externally. Find out which natural disasters are most common in the areas where you operate. You may be aware of some of your community’s risks, while others may surprise you. Continuity Planning How quickly your company can get back to business after a disaster often depends on emergency planning done today. Start planning now to improve the likelihood that your company will survive and recover. • Carefully assess how your company functions, both internally and externally, to determine which staff, materials, procedures, and equipment are absolutely necessary to keep the business operating. Review your business process flow chart if one ◆ exists. Identify operations critical to survival and recovery. ◆ Include emergency payroll, expedited financial ◆ decision-making, and accounting systems to track and document costs in the event of a disaster. Establish procedures for succession of manage- ◆ ment. Include at least one person who is not at the company headquarters, if applicable. • Identify your suppliers, shippers, resources, and other businesses you must interact with on a daily basis. Develop professional relationships with more than ◆ one company to use in case your primary contractor cannot service your needs. A disaster that shuts down a key supplier can be devastating to your business. Create a contact list for existing critical business ◆ contractors and others you plan to use in an emergency. Keep this list with other important documents on file in your emergency supply kit and at an off-site location. • Plan what you will do if your building, plant, or store is not accessible. This type of planning is often referred to as a continuity of operations plan, or COOP, and includes all facets of your business. Consider if you can run the business from a differ- ◆ ent location or from your home. Develop relationships with other companies to use ◆ their facilities in case a disaster makes your location unusable. • Plan for payroll continuity. • Decide who should participate in putting together Emergency Planning Continued from page 21

PCCA Journal|4th Quarter 2009 23 your emergency plan. Include workers from all levels in planning and ◆ as active members of the emergency management team. Consider a broad cross-section of people from ◆ throughout your organization, but focus on those with expertise vital to daily business functions. These will likely include people with technical skills as well as managers and executives. Defi • ne crisis management procedures and individual responsibilities in advance. Make sure those involved know what they are sup- ◆ posed to do. Train others in case you need back-up help. ◆ • Coordinate with others. Meet with other businesses in your building or ◆ industrial complex. Talk with first responders, emergency managers, ◆ community organizations, and utility providers. Plan with your suppliers, shippers, and others with ◆ whom you regularly do business. Share your plans, encourage other businesses to ◆ set in motion their own continuity planning, and offer to help others. • Review your emergency plans annually. Just as your business changes over time, so do your preparedness needs. When you hire new employees or when there are changes in how your company functions, you should update your plans and inform your people. Emergency Planning for Employees Your employees and co-workers are your business’s most important and valuable asset. There are some procedures you can put in place before a disaster, but you should also learn about what people need to recover after a disaster. It is possible that your staff will need time to ensure the well being of their family members, but getting back to work is important to the personal recovery of people who have experienced disasters. It is important to re-establish routines when possible. • Two-way communication is central before, during, and after a disaster. Include emergency preparedness information in ◆ newsletters, on company intranet, periodic employee emails, and other internal communications tools. Consider setting up a telephone calling tree, a ◆ password-protected page on the company website, Continued on page 24

PCCA Journal|4th Quarter 2009 24 an email alert, or a call-in voice recording to communicate with employees in an emergency. Designate an out-of-town phone number where ◆ employees can leave an “I’m okay” message in a catastrophic disaster. Provide all workers with wallet cards detailing ◆ instructions on how to get company information in an emergency situation. Include telephone numbers or internet passwords for easy reference. Maintain open communications where workers are ◆ free to bring questions and concerns to company leadership. Ensure you have established staff members who ◆ are responsible for communicating regularly to employees. • Talk to workers with disabilities about what assistance is needed. People with disabilities typically know what assistance they will need in an emergency. Identify workers in your organization with special ◆ needs. Engage people with disabilities in emergency plan- ◆ ning. Ask about communications difficulties, physical ◆ limitations, equipment instructions, and medication procedures. Identify people willing to help co-workers with ◆ disabilities, and be sure they are able to handle the job. This is particularly important if someone needs to be lifted or carried. Plan how you will alert people who cannot hear an ◆ alarm or instructions. • Frequently review and practice what you intend to do during and after an emergency with drills and exercises. Emergency Supplies When preparing for emergency situations, it’s best to think first about the basics of survival: fresh water, food, clean air, and warmth. Encourage everyone to have a portable kit customized to meet personal needs, such as essential medications. • NOAA weather radio With tone-alert feature, if possible, that automati- ◆ cally alerts you when a watch or warning is issued in your area. Tone-alert is not available in some areas. Include extra batteries. ◆ It is recommended that you have both a battery- ◆ powered commercial radio and a NOAA weather radio with an alert function. The NOAA weather radio can alert you to weather emergencies or announcements from the Department of Homeland Security. The commercial radio is a good source for news and information from local authorities. • Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, computer backups, emergency or law enforcement contact information and other priority documents in a waterproof, fireproof portable container. Store a second set of records at an off-site location. • Talk to workers about what emergency supplies the company can feasibly provide, if any, and which ones individuals should consider keeping on hand. • Recommended emergency supplies include the following: Water, amounts for portable kits will vary. Individ- ◆ uals should determine what amount they are able to both store comfortably and transport to other locations. If feasible, store one gallon of water per person per day for drinking and sanitation Food, at least a three-day supply of non-perishable ◆ food Battery-powered radio and extra batteries ◆ Flashlight and extra batteries ◆ First-aid kit ◆ Whistle to signal for help ◆ Emergency Planning Continued from page 23

PCCA Journal|4th Quarter 2009 25 Dust or filter masks, readily available in hardware ◆ stores and rated based on how small a particle they fi lter Moist towelettes for sanitation ◆ Wrench or pliers to turn off utilities ◆ Can opener for food (if kit contains canned food) ◆ Plastic sheeting and duct tape to “seal the room” ◆ Garbage bags and plastic ties for personal sanita- ◆ tion Deciding to Stay or Go Depending on your circumstances and the nature of the disaster, the first important decision after an incident occurs is whether to shelter-in-place or evacuate. Understand and plan for both possibilities in advance by developing clear, well-thought-out plans. • Have an evacuation plan and a shelter-in-place plan. • In any emergency, local authorities may or may not immediately be able to provide information on what is happening and what you should do. However, you should monitor TV or radio news reports for information or official instructions as they become available. • If you are specifically told to evacuate, shelter-inplace, or seek medical treatment, do so immediately. • Use common sense and available information to determine if there is immediate danger. For example, if your building is damaged you will typically want to evacuate. Make Fire Safety Part of the Plan Fire is the most common of all business disasters. Fires cause thousands of deaths and injuries and billions of dollars in damage each year. • Have your office, plant, or facility inspected for fire safety; ensure compliance with fire codes and regulations. • Install smoke detectors and fire extinguishers in appropriate locations. • Consider an automatic sprinkler system, fire hoses, and fire-resistant doors and walls. • Establish a system for warning your employees. Plan how you will communicate with people with hearing impairments or other disabilities and those who do not speak English. • Put a process in place for alerting the fire department. • Plan and practice how people will evacuate in a fire. Continued on page 26

PCCA Journal|4th Quarter 2009 26 Prepare for Medical Emergencies Workplace medical emergencies vary greatly depending on the disaster, type of job, and the worksite. Heavy equipment operators face different safety risks than do office workers or food service personnel. Regardless of the type of work, there are steps that can give you the upper hand in responding to a medical emergency. • Encourage employees to take basic first aid and CPR training. Offer on-site classes for your workers. • Keep first-aid supplies in stock and easily accessible. • Encourage employees to talk about medical conditions that may require support or special care in an emergency. • Keep employee emergency contact information on file and up-to-date. Store a copy with other vital records in your emergency kit and another at an offsite location. Influenza Pandemic A pandemic is a global disease outbreak. An influenza pandemic occurs when a new influenza A virus emerges for which there is little or no immunity in the human population and the virus begins to cause serious illness and then spreads easily person-to-person worldwide. The federal government, states, communities, and industry are taking steps to prepare for and respond to an influenza pandemic. If a pandemic occurs, it is likely to be a prolonged and widespread outbreak that could require temporary changes in many areas of society, such as schools, work, transportation, and other public services. An informed and prepared public can take appropriate actions to decrease their risk during a pandemic. To be prepared for such an emergency, the U.S Department of Health and Human Services encourages individuals, businesses, and communities to: • Talk with your local public health officials and health care providers, who can supply information about the signs and symptoms of a specific disease outbreak and recommend prevention and control actions. • Adopt business practices that encourage sick employees to stay home and anticipate how to function with a significant portion of the workforce population absent due to illness or caring for ill family members. • Practice good health habits, including eating a balanced diet, exercising daily, and getting sufficient rest. In addition, take common-sense steps to stop the spread of germs, including frequent hand washEmergency Planning Continued from page 25 800.346.1956 www.jamesonllc.com Fiberglass Fish Tapes Fiberglass Conduit Rodders Portable Work Lights Splicer Scissors Fiberglass Lay Up Sticks Line Clearance Tools Aerial Bucket Tool Holders Aerial Construction Tools Overhead or Underground Count On Our Quality

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