The Official Publication of the Power & Communication Contractors Association 4th Quarter 2015 Inside • PCCA Hits the Ground Running in Washington • PCCA Looks Back, Moves Forward at Charleston Mid-Year • PCCA Inducts Industry Luminaries into Hall of Fame • 2016 PCCA Convention Preview • Year-End Product Showcase Explaining the Hours-of-Service Exemption for Utility Service Vehicles Photo courtesy of Michels Corporation
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4th Quarter 2015 Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors Publication Staff 1908 Mt. Vernon Avenue, 2nd Floor Alexandria, Virginia 22301 (800) 542-PCCA • www.pccaweb.org ©2015 Power & Communication Contractors Association Garrett Akin Brooks Construction Craig Amerine Amerine Utilities Construction, Inc. Glen Amerine Amerine Utilities Construction, Inc. John Audi MasTec North America, Inc. Robert Breeden ElectriCom, Inc. Tony Briggs Vermeer Corporation Ed Campbell Henkels & McCoy, Inc. Marty Ferguson FS3, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. Robin Gilbertson J&R Underground, LLC Jerrod Henschel Michels Corporation Chase Lapcinski Push, Inc. Dan Levac Preformed Line Products Rob Pribyl MP Nexlevel, LLC Jameson Ringger NESCO, LLC Heath Sellenriek Sellenriek Construction Steve Sellenriek Sellenriek Construction Don Stephens Tjader & Highstrom Lindsley Thulin Michels Corporation Publisher Timothy Wagner Editor Michael Ancell Advertising Sales Stacy Bowdring Advertising Sales Dana Gilbertson Photography Steven Purcell Information Technology Greg Smela Accounting James Wagner President Timothy D. Killoren TelCom Construction President-Elect Todd Myers Kenneth G. Myers Construction 1st Vice President James Dillahunty Henkels & McCoy, Inc. 2nd Vice President Larry Pribyl MP Nexlevel, LLC Treasurer David Aubrey Okay Construction Secretary John Fluharty Mears Group, Inc. PCCA Hits the Ground Running in Washington 9 By Eben M. Wyman Since deciding in September to establish a ground game in Washington advocacy, PCCA has taken aggressive steps to implement it. In October, a group of dedicated PCCA members stormed out of the gate and planted a solid footprint in the Nation’s Capital, proactively reaching out to regulatory agencies and aligning the association with key players representing the power and telecommunications industries. Explaining the Hours-of-Service Exemption for Utility Service Vehicles 15 By Peter Lolley Most commercial motor vehicles used for utility service work spend less than two hours a day on DOT-regulated highways. These trucks are used to move highly skilled utility workers and special equipment to and from a jobsite. Once there, these trucks are our offices and toolboxes. The Department of Transportation regulates these work trucks in the same manner they do any over-the-road and freight companies, but the fact is they are just not the same. PCCA Looks Back, Moves Forward at Charleston Mid-Year 21 More than 160 PCCA members and their families traveled to Charleston, S.C., September 23-26, to honor the association’s past, plan its future, and take part in the educational and social events that make PCCA meetings so valuable. RUS News 18 PCCA Hall of Fame Induction 27 In Memoriam: Howie Bowdring 33 2016 PCCA Convention Preview 34 Ditch Witch Makes Splash with PCCA Auction Item 41 Year-End Product Showcase 42 PCCA New Members 62 Industry Calendar 62 Advertiser Index 62
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PCCA Journal|3rd Quarter 2015 9 Continued on page 10 Inside Washington In September, PCCA took the initial steps in a major expansion of its federal government relations program. Since deciding to establish a ground game in Washington advocacy, PCCA has taken aggressive steps to implement it. In a matter of weeks, a group of dedicated PCCA members have stormed out of the gate and planted a solid footprint in the Nation’s Capital, proactively reaching out to regulatory agencies and aligning the association with key players representing the power and telecommunications industries. Developing and implementing an effective advocacy program is fundamental to the success of any national trade association. Maintaining a government relations platform not only ensures that the industry’s voice is heard with regard to issues of interest, but can also establish the association as a resource for lawmakers and regulators to gain initial industry feedback in advance of governmental action. Becoming such a resource is invaluable in terms of influencing legislation and regulatory initiatives. Providing a Strong Offense and a Solid Defense Like many national associations, PCCA will work to expand the markets associated with its members. Although projects to build, repair, and replace electric power and communications systems are funded mostly by the private sector, there are legislative opportunities to provide for a more robust market for PCCA members and for the industry at large. Representing construction contractors, manufacturers, and suppliers, PCCA offers the unique and sought-after perspective of the “job creators” in the power and communications sector. Stakeholders who can demonstrate economic impact are needed in the debate, and PCCA contractors hire the workers and purchase the equipment needed to get the job done right. This is a focal point in our messaging. At the same time, legislation and the regulation that stems from it can stifle innovation and productivity in the construction industry and the many services associated with it. While acPCCA Government Relations Team Hits the Ground Running in Washington By Eben M. Wyman
PCCA Journal|3rd Quarter 2015 10 tively working to advance legislation to expand the power and communication market, PCCA will also ensure that the industry is heard when overreaching regulatory proposals are introduced and move through the maze-like regulatory process. Three weeks after agreeing to move forward with federal advocacy, several PCCA members traveled to Washington, D.C., October 13-14, to refine its legislative/regulatory strategy and began outreach to government and industry organizations. The following is a recap of this successful event. NTCA – The Rural Broadband Association Representing approximately 900 independent, community-based telecommunications companies that serve rural communities across the country, NTCA members provide state-of-the-art internet service to rural consumers. Because NTCA represents a major customer base of the PCCA membership, meeting with NTCA’s Washington team kicked off PCCA’s first visit to the Nation’s Capital. It didn’t take long for NTCA’s government affairs people to realize that working cooperatively with PCCA toward shared goals could lead to a long-term alliance. After discussing both the opportunities and challenges presented by the Federal Communications Commission’s (FCC) Connect America Fund (CAF), both organizations agreed to work together at tackling the challenges of providing and sustaining universal access in rural areas. According to FCC, the CAF is intended to ensure “universal availability of robust, scalable, affordable broadband to homes, businesses and anchor institutions in unserved areas at an affordable cost.” Unfortunately, the uncertainty surrounding the CAF program may be impeding investment in broadband services. Both PCCA and NTCA agreed to reach out to FCC and share information about the CAF program and the most effective way to acquire and utilize CAF dollars. NTCA clearly saw the value of having the industry’s “job creators” participate in their lobbying efforts and invited PCCA to NTCA’s Telecom Executive Summit in Washington, D.C., on November 15-17. Several members of PCCA’s government relations team (four contractors and two staff members) participated in the NTCA event, including a Capitol Hill Day, where attendees took to Capitol Hill to educate lawmakers on the issues involved in building the projects and employing the workers that deliver broadband all around the country. The focus of NTCA’s legislative agenda is to ensure that federal programs intended to expand broadband service give ample consideration to the needs of rural America. Such programs include the Universal Service Fund, which subsidizes projects to provide universal access to telecommunications services across the country, and the FirstNet program, authorized in a 2012 tax bill. FirstNet is intended to help build, operate, and maintain a nationwide wireless broadband network dedicated to public safety and emergency communications. PCCA was enthusiastic about joining NTCA in their Capitol Hill event, and we look forward to working with them in future advocacy efforts. Rural Utilities Service The Department of Agriculture’s Rural Utilities Service (RUS) works to improve economic opportunity through financing for electric power, communications, and other services for individuals and businesses in rural communities with a population of 20,000 or fewer. PCCA members work on projects that improve the quality of life for rural America through infrastructure improvements funded by RUS dollars, underscoring real-life benefits that come with the program. PCCA was founded in 1945 to work with the USDA’s Rural Electrification Administration (which later became the RUS), and we have maintained an outstanding working relationship with the agency for more than 70 years. Continuing this relationship, fly-in participants sat down with representatives from RUS’s Policy and Outreach Division (Telecommunications Program) to discuss ways that PCCA can promote RUS programs on Capitol Hill and with other industry organizations. RUS appreciated our offer of vocal support of RUS and said they look forward to working with the association on a range of issues in the future. Resources from RUS’s electric program help finance construction of electric distribution, transmission, and generation facilities, including repair and replacement projects to improve service in rural areas. For the most part, loans are made to cooperatives as well as to corporations, states, and local governments that supply the power in rural areas. Additional grant assistance is provided to rural communities with exceptionally high costs to construct, extend, upgrade, and otherwise improve electric facilities. RUS also provides loans and grants to build and expand telecommunications and broadband networks, which are now crucial for educational, social, and economic reasons as well as job creation and economic growth. Broadband is increasingly closing the digital divide between rural and urban communities, and RUS dollars are helping make that happen. Loans to build broadband networks that deliver service to rural households and businesses are offered to rural teleInside Washington Continued from page 9
PCCA Journal|3rd Quarter 2015 11 communications companies, broadband providers, wireless companies, and fiber-to-the-home providers. As with the electric program, grants for broadband enhancements are reserved for communities with the highest need. PCCA supports robust RUS funding through federal appropriations and other legislation that would allow RUS to leverage federal dollars. PCCA is particularly interested in the status of the “773 contract,” which provides for construction, maintenance, and repair of telephone equipment and facilities. Revisions are pending related to 773 projects, including increasing the limit of these contracts, and PCCA will monitor developments and educate policymakers about the importance of 773 projects. For years, RUS has served as the lender of last resort for unserved or underserved rural communities that lack essential utility services that other areas of the country take for granted. Nevertheless, RUS funding is often the target of overzealous budget hawks in Congress looking to cut federal spending in any way, shape, or form. As a key player in connecting rural America and providing critical infrastructure improvements to power and communications systems in rural areas, PCCA considers itself a steward of the program. Therefore, protection and enhancement of RUS programs will be a pillar of PCCA’s advocacy program. Federal Communications Commission Expansion of telecommunications service, especially access to high-speed internet in underserved areas, was a campaign promise of candidate Obama in 2008 and again by President Obama in 2012. The FCC provides federal dollars to expedite this expansion, although gaps in the information chain have left many stakeholders at a loss as to how these resources can be accessed. The Connect America Fund (CAF) came out of the FCC’s Universal Service Fund (USF) a few years ago, intended to eventually replace high-cost support systems. The high-cost program within the existing USF provides subsidies to telecommunications carriers that serve rural and other remote areas with high costs of providing telephone service. There are several stipulations that need to be met in order to access CAF resources, including requirements that proposed service areas are high-cost and within the provider’s service area, and that service providers demonstrate that Continued on page 12 Portable Fiber Optic Cable Placement THE GMP WHISPER MICRO CABLE BLOWING MACHINE 2 to 8.5 mm (.08 to .33 in.) microfiber cable O.D. Speeds up to 90 m/min (300 ft/min) into 4 to 18 mm (.15 to .63 in.) OD microduct — rollers are powered by a cordless drill (most types) Compact size and portable maneuverability for ease of handling Ideally suited for external or in-building cable placement +1.215.357.5500 • GMPtools.com MADE IN USA Powered by a cordless drill. (Drill not included) Portable Fiber Optic Cable Placement GMP BREEZE & TORNADO CABLE BLOWING MACHINES 0.039 to 0.334 in. (1.0 to 8.5 mm) fiber optic cable O.D. (Breeze) 0.25 to 1.25 in. (6 to 32 mm) fiber optic cable O.D. (Tornado) Speeds up to 164 ft./min.(50 m/min.) into pre-installed micro duct (Breeze) Speeds up to 300 ft./min. (90m/min.) into pre-installed 1 to 2.5 in. (25 to 63 mm) diameter duct (Tornado) +1.215.357.5500 • GMPtools.com MADE IN USA Visit our website for complete details
PCCA Journal|3rd Quarter 2015 12 they are taking reasonable steps to offer broadband throughout the entire service area. Remaining questions and ambiguity led PCCA to reach out to FCC to learn more about the CAF program and how CAF resources are distributed and accessed by the appropriate parties. PCCA met with FCC staff on October 14, but it became clear that another meeting would be necessary with representatives of the FCC’s Wireline Competition Bureau. We held that meeting on November 16 (after press time) to discuss how best to promote the CAF program and educate interested stakeholders about the program and the federal assistance dollars associated with it. Federal Motor Carriers Safety Administration The U.S. Department of Transportation’s Federal Motor Carriers Safety Administration (FMCSA) oversees Hours-of-Service (HOS) regulations subject to commercial drivers. PCCA members maintain large numbers of utility fleets that are obviously impacted by HOS regulations and have a particular interest in pending electronic logging device (ELD) regulations. The PCCA team knew that forging an effective relationship with FMCSA was a must. Soon after PCCA folks headed home from their Washington visit, they had FMCSA staff on a conference call to ensure that the power and communications industry fell under the exemption for “Utility Service Vehicles” from HOS requirements when responding to utility service calls to maintain and repair essential utility services. After a productive discussion with FMSCA’s Driver and Carrier Operations Division, PCCA was pleased to report to its membership that utility vehicles maintained by contractors fall under the HOS exemptions, which apply when USV’s are “repairing, maintaining, or operating” utility facilities. (See article on HOS exemptions on page 15.) It is worth noting that during that call, PCCA was able to explain to FMCSA staff that the majority of electric power and communications construction work is contracted out, a point that surprised some FMCSA representatives on the call. The increasing role that contractors are playing in the industry is an important and often neglected point to make when discussing these issues with congressional and regulatory audiences. FMCSA appreciated this fact and agreed to add PCCA to its list of industry stakeholders that periodically evaluate HOS initiatives and updates. Suiting Up for Future Advocacy At press time, PCCA was preparing for its second trip to D.C. only weeks after the very successful fly-in event in October. Six PCCA representatives were heading back to Washington to learn more about NTCA programs and support this important part of our industry’s customer base with their efforts on Capitol Hill. Over the next several months, PCCA will refine and expand its legislative agenda to include other issues of importance to the industry. Some of these include: • Support of public policy that provides a level playing field for union and non-union contractors in the federal procurement process; • Support for comprehensive energy legislation, including provisions to: » Streamline the permitting process for power transmission and distribution infrastructure improvements; » Reform the pipeline permitting process to expedite projects to deliver natural gas, a commonly used fuel for the generation of electricity; » Incentivize upgrades to electric transmission and distribution infrastructure; and » Support efforts to recruit and retain workers to provide a strong “21st Century Workforce.” PCCA will also engage other government and industry audiences, including the Broadband Opportunity Council, the National Rural Electric Cooperative, and the Common Ground Alliance. On a personal note, after being involved in Washington business for almost 25 years, I have to say witnessing the enthusiasm and interest of PCCA members in jumping into the sometimesintimidating world of federal lobbying has been exciting to see, and I’m honored to be a part of this important effort. Construction contractors increasingly play a bigger role in building and maintaining a wide range of critical infrastructure, and the power and communication sector must be considered among the highest of importance. I look forward to working with all of you. Eben Wyman, PCCA’s new government relations representative, has worked in Washington, D.C., for 24 years, starting at the DOT’s Office of Pipeline Safety, followed by 12 years as Government Relations Director for the National Utility Contractors Association. In 2012, he founded E. Wyman Associates, which represents several association clients that serve contractors, manufacturers, and distributors operating in various segments of the construction industry. His other clients include the Distribution Contractors Association, the Plastics Pipe Institute, and the Sustainable Water Infrastructure Coalition. He can be reached at eben@wymanassociates.net. Inside Washington Continued from page 11
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PCCA Journal|3rd Quarter 2015 15 Most commercial motor vehicles used for utility service work spend less than two hours a day on DOT-regulated highways. These trucks are used to move highly skilled utility workers and special equipment to and from a jobsite. Once there, these trucks are our offices and toolboxes. The Department of Transportation regulates these work trucks in the same manner they do any over-the-road and freight companies, but the fact is they are just not the same. In 2005, the Federal Motor Carrier Safety Administration (FMCSA) adopted new regulations under the Safe, Accountable, Flexible, Efficient, Transportation Equity Act. Within that legislation was an exemption from the federal hours-ofservice (HOS) regulations for operators of commercial motor vehicles engaged in certain defined operations. One of those exemptions was 395.1(n) that exempts Utility Service Vehicles from any hours-of-service requirements. Immediately following the adoption of the new rules, the utility service companies began to exercise this exemption as the ultimate provider of the various utilities, but over the decade that followed, many of the utility companies who exercised their HOS exemption began to subcontract a more and more of the service and repair work. Working closely with one of the PCCA members, Transportation Safety Consultants established the goal of receiving the same hours-of-service exemption that the utility companies received extended to subcontractors. Initially, the goal was just to be exempt during periods of emergency repair, but the final outcome was an acknowledgement from the Department of Transportation that subcontractors meeting the definition Explaining the Hours-of-Service Exemption for Utility Service Vehicles By Peter Lolley As a Utility Service Vehicle Driver, you are exempt from rules and regulations set forth in 49 C.F.R. §395 for hour of service. In the event of a roadside inspection or when asked for a Records of Duty Status by any law enforcement official, it is important to know how to respond with the correct information. Question: What is a Utility Service Vehicle? FMCSA defines a Utility Service Vehicle (USV) as a Commercial Motor Vehicle • Used in the furtherance of repairing, maintaining, or operating any structures or any other physical facilities necessary for the delivery of public utility services, including the furnishing of electric, gas, water, sanitary sewer, telephone, and television cable or community antenna service; and • While engaged in any activity necessarily related to the ultimate delivery of such public utility services to consumers, including travel or movement to, from, upon, or between activity sites (including occasional travel or movement outside the service area necessitated by any utility emergency as determined by the utility provider); and • Except for any occasional emergency use, operated primarily within the service area of a utility’s subscribers or consumers, without regard to whether the vehicle is owned, leased, or rented by the utility. Question: Why am I exempt from Hours of Service? § 395.1 (n) states, “Utility service vehicles. The provisions of this part shall not apply to a driver of a utility service vehicle as defined in § 395.2.” Question: When am I required to prepare a driver’s daily log? Any time your are assigned to a job for a new utility provider or for a customer that does not provide a utility service, and will be driving to a location more than 100 air miles from the facility you started at for that day, or working a period over 12 hours. Sample roadside questions from enforcement officers: “May I see your log book?” Response: “As a Utility Service Vehicle I have been informed that we’re exempt from completing a logbook.” Incorrect Response: “I was told I don’t have to do one.” “I don’t have one.” “We don’t do them.” “Who informed you that you’re exempt?” Response: “I have been trained by our Safety Director and Compliance Consultant based on guidance from the FMCSA.” Utility Service Vehicle Directions Continued on page 16
PCCA Journal|3rd Quarter 2015 16 outlined in 395.2 received the same hours-of-service exemption that the utility providers did. The HOS exemption is not an all-or-nothing situation. Unfortunately, it is not as simple as just making the determination that your company is, or is not, exempt under the rule. Working with the FMCSA Office of Enforcement for the Midwest Region Center, Transportation Safety Consultants were given further guidance on how to apply the regulation. Trip-by-Trip Basis First, the exemption is on a trip-by-trip basis. A company may have a driver who is exempt today based on variables such as the utility customer and what work is being performed, but that same individual may be regulated tomorrow based on what his or her task is for that day. To assist with these types of issues, a driver handbook was developed and included a list of frequently asked questions that provide some direction as to when a driver is or is not exempt. Each handbook included: • Utility Service Vehicle Definition under 395.2 • Hours-of-service exemption regulation under 395.1(n) • Probable Q&A with roadside enforcement officers • When a driver is required to prepare a driver’s daily log • Guidance from FMCSA Midwest Region Center for applicability • Confirmation of the exemption from FMCSA State Program Manager Second, the exemption is intended for the repair, operation, or maintaining of utility service. Any new construction would not applicable and then would be subject to the hours of service requirements in part 395. The following situations would not qualify to be exempt: • Construction of new buildings or structures • Construction of transmission lines • Construction of any new service area [Editor’s note: In an October 20 call with several PCCA members, staff at the FMCSA’s Driver and Carrier Operations Division said that upgrade work—such as replacing existing copper lines with fiber or replacing existing steel gas lines with plastic—is considered maintenance, not new construction, and would therefore qualify to be exempt.] Education Is Crucial Ultimately, educating the drivers of how to apply the exemption is the most crucial part to a successful implementation of the exemption. Under certain situations, drivers aren’t required to carry a driver daily logbook, but it’s the drivers understanding of his requirements and proper explanation to roadside enforcement that will make the exemption successfully utilized. The FMCSA’s ultimate goal is to eliminate fatal accidents caused by commercial motor vehicles. In most cases, a commercial driver of a utility subcontractor will organically remain within the hours established within the regulations. What the exemption offers is the flexibility to meet the needs of the utility customer without risk of compliance concerns. Peter Lolley is Compliance & Safety Specialist for Transportation Safety Consultants Inc. He is a Certified Director of Safety, North American Transportation Management Institute, and serves on the Missouri Trucking Association’s Council of Safety Supervisors. He also has HazMat Certification from the USDOT Transportation Safety Institute. Hours of Service Exemption Continued from page 15 PELSUE OFF ROAD FIBER OPTIC/COPPER SPLICING VEHICLES Contact our sales department for quotes and questions 1-800-525-8460 or 303-936-7432 Fax 303-934-5581 www.pelsue.com
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PCCA Journal|3rd Quarter 2015 18 RUS NEWS USDA Awards Nearly $2.3 Billion in Loans for Rural Electric Infrastructure Projects Agriculture Secretary Tom Vilsack in October announced nearly $2.3 billion in loans to build and improve rural electric infrastructure in 31 states. “Improving our rural electric utility systems will help us continue to provide reliable and affordable electricity to rural customers,” Vilsack said. “By financing these improvements, USDA helps increase efficiencies, reduce carbon emissions, and improve the quality of life in rural areas.” USDA is awarding loans to 77 utilities and cooperatives in 31 states. The funding includes more than $108 million for smart grid technology, $41 million for renewable energy improvements, and $9 million for storm damage repairs. These loans will help build or improve 12,000 miles of transmission and distribution lines. The funding is being provided through USDA Rural Development’s Electric Program, which makes loans and loan guarantees to non-profit and cooperative associations, public bodies, and other utilities, primarily for electric distribution in rural areas. Funding is contingent upon the recipient meeting the terms of the loan or grant agreement. State, Borrower, Loan Amount AL, FL, PowerSouth, $115,884,000 AR, Craighead Electric Co-op Corp., $31,525,000 AR, MO Clay County Electric Co-op Corp., $15,000,000 AR, MO, OK, Today’s Power Inc., $10,500,000 CO, K C Electric Assn., Inc., $10,849,000 FL, Suwanee Valley Electric Co-op, $13,000,000 FL, West Florida Electric Co-op Assn., $11,000,000 FL, Withlacoochee River Electric Co-op, $97,800,000 FL, Seminole Electric Co-op, $122,601,000 GA, Planter EMC, $24,935,000 GA, Colquitt EMC, $22,000,000 GA, Hart EMC, $25,344,000 GA, Washington Electric Membership Corp., $11,675,000 GA, Southern Rivers Energy, $20,000,000 GA, Jackson Electric Membership Corp., $140,000,000 IL, Illinois Rural Electric Co., $25,000,000 IN, Southeastern Indiana REMC, $20,000,000 IN, Tipmont REMC, $23,000,000 IA, Grundy County REC, $5,000,000 IA, Butler County REC, $14,500,000 IA, Maquoketa Valley REC, $5,000,000 IA, Central Iowa Power Co-op, $59,773,000 IA, Prairie Energy Co-op, $3,900,000 KS, Lyon-Coffey Electric Co-op, $10,000,000 KY, East Kentucky Power Co-op, $90,617,000 KY, East Kentucky Power Co-op, $221,832,000 State, Borrower, Loan Amount MI, IN, OH, Midwest Energy Co-op, $59,000,000 MN, Meeker Co-operative Light & Power, $9,000,000 MN, McLeod Co-operative Power Assn., $20,950,000 MN, IA, Tri-County Electric Co-op, $12,240,000 MN, Brown County Rural Electric Assn., $8,000,000 MN, IA, Federated Rural Electric Assn., $6,364,000 MN, Steele-Waseca Co-operative Electric, $7,670,000 MN, South Central Electric Assn., $11,000,000 MN, People’s Energy Cooperative, $28,500,000 MN, Redwood Electric Co-op, $7,900,000 MN, IA, Freeborn-Mower Electric Co-op, $50,485,000 MN, Minnesota Valley Electric Co-op, $12,075,000 MN, IA, Nobles Cooperative Electric, $10,903,000 MN, Agralite Co-op, $7,373,000 MN, PKM Electric Co-op, $6,250,000 MN, North Star Electric Co-op, $8,000,000 MN, BENCO Electric Co-op, $15,200,000 MS, Southern Pine Electric Power Assn., $76,076,000 MO, Farmer’s Electric Co-op, $12,000,000 MO, IA, Grundy Electric Co-op, $2,799,000 MO, Southwest Electric Co-op, $14,551,000 MO, IA, OK, Associated Electric Co-op, $190,836,000 MT, Fergus Electric Co-op, $10,000,000 MT, Goldenwest Electric Co-op, $10,000,000 NC, GA, SC, Haywood EMC, $20,110,000 NC, Halifax EMC, $6,944,000 State, Borrower, Loan Amount NC, Surry-Yadkin EMC, $33,000,000 NC, O2 EMC Portfolio 1, LLC, $10,000,000 NC, O2 EMC Portfolio 1, LLC, $7,700,000 NC, O2 EMC Portfolio 1, LLC, $5,000,000 ND, North Central Electric Co-op, $30,000,000 ND, Burke-Divide Electric Co-op, $27,000,000 NE, Midwest Electric Member Corp., $7,919,000 NM, TX, Farmers’ Electric Co-op of NM, $38,723,000 NM, AZ, Columbus Electric Co-op, $14,705,000 OH, Consolidated Electric Co-op, $15,500,000 OH, Washington Electric Co-op, $13,000,000 OK, MO, Kamo Electric Co-op, $90,565,000 OK, Northfork Electric Co-op, $20,746,000 OK, East Central Oklahoma Electric Co-op, $12,200,000 OK, Cookson Hills Electric Co-op, $7,451,000 OR, Umatilla Electric Co-op Assn., $43,059,000 OR, West Oregon Electric Co-op, $4,017,000 SC, Pee Dee Electric Co-op, $28,079,000 SD, Charles Mix Electric Assn., $6,361,000 TN, Appalachian Electric Co-op, $30,000,000 VA, WV, Craig-Botetourt Electric Co-op, $4,238,000 WA, Orcas Power & Light Co-op, $17,100,000 WI, Oconto Electric Co-op, $10,000,000 WI, IL, Scenic Rivers Energy Co-op, $13,000,000 WI, St. Croix Electric Co-op, $8,500,000 USDA Electric Loans - October 22, 2015
PCCA Journal|3rd Quarter 2015 19 On November 18, USDA Rural Utilities Service Administrator Brandon McBride announced that nearly six million Americans who live and work in rural areas now have access to new or improved high-speed internet service, thanks to USDA funding provided in the American Recovery and Reinvestment Act. “I am proud to announce today that all of the active projects USDA has financed through the Recovery Act are now providing broadband service in rural areas nationwide,” McBride said. “In 2009, the Obama administration pushed for, and Congress provided USDA with, an unprecedented level of funding and five years to connect rural areas to high-speed networks. Bringing broadband to these areas is having a tremendous impact on rural communities. This access means more jobs, better education, and a higher quality of life. The economic viability of rural America, like all of America, depends on access to broadband.” USDA said that 254 Recovery Act broadband projects financed by the Rural Utilities Service totaling $2.9 billion are providing broadband service in 44 states and American Samoa. More than half the infrastructure projects were completed under budget, resulting in the return of nearly $113 million to the U.S. Treasury. The measure’s five-year period for funding broadband projects expired at the end of the 2015 fiscal year. These projects have brought high-speed internet access to 260,000 rural households, 17,500 businesses, and 1,900 community facilities. The service providers estimate that completed projects could provide access for more than 5.8 million rural consumers. While Congress instructed USDA to improve rural broadband access as part of a sweeping set of infrastructure investments funded through the Recovery Act, USDA is financing additional expansions to rural broadband service through other annual funding. “We’ve accomplished a great deal as a result of the Recovery Act funding,” McBride said. “But we still have more to do. Too many rural Americans are still living on the wrong side of the digital divide. USDA is committed to bridging that divide by getting more rural Americans online at work, at school and at home.” According to the Federal Communications Commission, only 47 percent of people who live and work in rural areas have access to high-speed internet, compared to 90 percent of those who live and work in urban and metropolitan areas. RUS Funding Expands RuralBroadband Access Take Advantage of The New 2015 Tracker Trade-In Allowance of $7,000 USD! Contact your local Ditch Witch® dealer for details.
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PCCA Journal|3rd Quarter 2015 21 More than 160 PCCA members and their families traveled to Charleston, S.C., September 23-26, to honor the association’s past, plan its future, and take part in the educational and social events that make PCCA meetings so valuable. The historic city served as an ideal backdrop for the PCCA Mid-Year Meeting that reunited old friends and colleagues, celebrated four new inductees into the PCCA Hall of Fame (see page 27), and provided a firsthand account of the 2000 terrorist attack on the USS Cole. Yet Charleston is also a forward-looking, cosmopolitan city, and that too was fitting for a group that is expanding its advocacy efforts in Washington, D.C., and throughout the power and telecommunications industry (see page 9). As always, the Construction Industry Roundtable was the centerpiece of the Mid-Year. Ken Kuchno, Deputy Assistant Administrator for the Rural Utilities Service Telecommunications Program, led off the roundtable with a report on his agency’s broadband and electric programs. He said that despite a few negative stories that received a lot of press, the Broadband Initiatives Program (which was mandated by the Obama administration’s economic stimulus efforts) was a “huge success,” providing more than $3.5 billion in loans and grants for broadband deployment in rural America. He said that the RUS Electric Program will provide $1.866 billion in 2015 in loans and loan guarantees to finance the construction or improvement of electric distribution, transmission, and generation facilities in rural areas. He also discussed the impact of the Federal Communications Commission’s Connect America Fund on broadband-expansion efforts and said that “RUS and the FCC are sharing information better than ever before.” Kuchno also reported on the “long overdue” efforts to update many of its contracts and said that PCCA would continue to be involved in the process. Dean Mishke, of Finley Engineering and the American Communications Engineers, followed with an engineering perspective on many of the issues that Kuchno discussed. He concluded his remarks by saying that there is “a lot of positive news out there.” Jaime Espinosa, of Corning Cable Systems, discussed the factors putting pressure on the global fiber supply for 2016 and beyond, most notably increased funding for broadband construction and emerging markets around the world. Mark Bridgers, Continuum Advisory Group, delivered another upbeat forecast for the telecom, overhead and underground power, and pipeline markets. “The sun is shining,” he said. “Make hay while it shines for the next 12 to 24 months.” But he tempered his enthusiasm with a discussion of the profound shortage of workers in the construction industry. “We’ve done a lousy job of getting people to come work in our industry,” he said, noting that 10-20,000 new workers will be needed in the next 5-10 years. Bridgers will discuss the industry’s labor situation in much greater detail during the PCCA Convention in Key Largo in March, where he will lead the session “Who Will Do the Work? North American Utility Construction Workforce Supply vs. Demand.” FMI’s Dan Shumate was likewise optimistic in his assessment of the markets in which PCCA members work. He said that FMI’s mergers and acquisitions business is as busy as it’s been in the last 10 years. He said that a light has been shined on infrastructure issues in the United States and that transmission work is booming, distribution infrastructure is in great need of repair, and gas market growth is in replacement and repair. The Mid-Year education program also featured Issue Roundtables on marketing/membership and government/ labor, and two sessions led by FMI’s Andy Patron: a general session on management succession and a Leadership Development Program refresher on executive communication. Commander Kirk Lippold, USN (Ret.), delivered the MidYear’s keynote address, detailing the harrowing yet uplifting story of how he and his crew reacted to the Al Qaeda attack on the USS Cole in the Port of Aden, Yemen, in 2000. The audience was captivated as Lippold proudly recounted the bravery and professionalism of his crew. Throughout his story, Lippold wove in what he calls the Five Pillars of Leadership that leaders in all walks of life can benefit from: integrity, vision, personal responsibility and accountability, trust and invest, and professional competence. The PCCA crowd also kicked up its heels a few times, especially at the closing party, a circa 1939 celebration at the historic Riviera Theater, which has been restored to its original Art Deco splendor. Attendees also explored the wonderfully historic city of Charleston, including tours of Patriots Point and Fort Sumter. PCCA Looks Back, Moves Forward at Charleston Mid-Year See Mid-Year photos on pages 22 - 24
PCCA Journal|3rd Quarter 2015 22 RUS’s Ken Kuchno reports on the hefty investment in rural electric and broadband infrastructure that the RUS made in 2015. After the Roundtable, Corning’s Jaime Espinosa continues discussing fiber availability with Jerrod Henschel of Michels Corporation (right) and FMI’s Dan Shumate. Dean Mishke, of Finley Engineering and the American Communications Engineers, gives his take on RUS and FCC broadband programs. From left, David Aubrey, Okay Construction; Heath Sellenriek, Sellenriek Construction; and Jerry Beyer, Vermeer, grab a bite during the President’s Welcome Reception. A Michels Moment: Ruth Michels (center) enjoys time with Lyn and Nadine Thulin. FMI’s Andy Patron leads a general session on management succession. PCCA Executive Vice President Tim Wagner (center) chats with two of the Mid-Year’s top stars, Hall of Fame inductee Winston Weaver, Jr., (left) and keynote speaker Kirk Lippold. Commander Kirk Lippold captivates the PCCA audience with the story of how his crew reacted quickly, bravely, and professionally to the Al Qaeda attack on the USS Cole in Yemen in 2000. Brad Radichel of Condux welcomes Roland Taggard and Tobin Kurtin, both of Wagner-Smith Equipment Co., to their first PCCA meeting. Roundtable attendees heard positive news on the short-term health of the construction economy but worrisome news on the availability of skilled workers. The Construction Industry Roundtable grabbed attendees’ attention with valuable information on the markets in which they work.
PCCA Journal|3rd Quarter 2015 23 Construction Industry Roundtable moderator Jerrod Henschel, Michels Corporation, urges attendees to speak up with questions and comments. Brightening the Welcome Reception are, from left, Doris Ferlmann, Karen Pribyl, and Kiana Tom. PCCA President-Elect Todd Myers, Kenneth G. Myers Construction, welcomes PCCA members to the Opening Session. Fish stories, fabrications, exaggerations, balderdash, and outright baloney—a morning cup of coffee at PCCA is never boring. Dan Levac of Preformed Line Products, center, is always full of good ideas and quick with a joke. Judging from the reaction of McLaughlin’s Matt Manning, this is probably the latter during the Marketing/Membership Roundtable. Robert Orr of Sherman + Reilly, right, talks business with Ray McCorkel of HyPower, Inc. Debbie and Kevin Mason, ElectriCom, beneath the Carolina moon. Lori Stephens, right, catches up with Coquette Fluharty during the Welcome Reception. Robin Gilbertson, J&R Underground, signs the Get Well Soon poster for PCCA President Tim Killoren. During the Board meeting, Past President Steve Sellenriek, Sellenriek Construction, explains how increasing government advocacy efforts will benefit membership recruitment and retention. Paying rapt attention to the budget discussion during the Board meeting are, from left, Chase Lapcinski, Push, Inc.; Marty Ferguson, FS3; Rob Pribyl, MP Nexlevel; and Bob Breeden, ElectriCom.
PCCA Journal|3rd Quarter 2015 24 The Celebration at the Riviera Theater featured throwback costumes, dancing to Big Band tunes, and joyous times, as evidenced by the smiling faces below. Clockwise from the top left photo are Jameson and Sheena Ringger, NESCO; Erin and Derrik Luttschwager, Kenneth G. Myers Construction; Gene Klaasmeyer, Klaasmeyer Construction; John Audi and Janet Cardarelli, MasTec North America; Bob and Sara Demuth, Blue Diamond Industries, and Gail and Denis Hannah, Sherman + Reilly; and Chase Lapcinski and Kiana Tom, Push, Inc. Though PCCA avoided the historic deluge that hit Charleston the week after we left, the rain did alter some of our outdoor plans but never once dampened our members’ enthusiasm for fun times or their fascination with American history. Top left, the USS Clagamore served for 30 years during the Cold War before retiring to Charleston Harbor. Top center, Tommy and Brenda Muse, Aubrey Silvey Enterprises, explore a Vietnam War-era helicopter. Top right, PCCA members check out an F-15 fighter jet aboard the USS Yorktown. Bottom left, Craig and Missi Amerine, Amerine Utilities Construction, debark a UH-34 Sea Horse, one of the three Vietnam War-era helicopters at Patriots Point. Center, a few brave golfers ventured out to the course during the storm, but alas, pro shop putting was their only reward. Bottom right, PCCA members cruised across Charleston Harbor to Fort Sumter for an interesting afternoon learning about the start of the Civil War.
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PCCA Journal|3rd Quarter 2015 27 The recent PCCA Mid-Year Meeting in Charleston, S.C., was filled with memorable moments: an uplifting tale of American bravery and patriotism, numerous upbeat reports on the future of our industry, and visits to famous places that shaped our nation’s history. But none of those were more poignant than when Winston Weaver, Jr., rose to the podium at the Riviera Theater to accept induction for him and his father, Winston O. Weaver, into the PCCA Hall of Fame. Winston’s rich baritone, which permeated PCCA Prayer Breakfasts for decades, is a bit softer these days but was no less captivating as he explained what this association meant to a young contractor from Rockingham, Va., many years ago. He was amazed that so many people offered him invaluable information, ideas, guidance, and friendship, and he remains appreciative to this day. On September 25, PCCA inducted four distinguished individuals into the association’s Hall of Fame: Jimmie Brooks, Brooks Construction Company, Inc.; Ted Koenigs, Michels Corporation; and Winston O. Weaver and Winston Weaver, Jr., both of Rockingham Construction. PCCA Executive Vice President Tom Wagner kicked off the ceremony with a brief history of the association: “In the early 20th century, the United States was divided into two worlds: one with electricity and one without. That division existed primarily between rural and urban areas. Eighty years ago, fewer than 11 percent of U.S. farms had been electrified. As part of President Roosevelt’s New Deal, the Rural Electrification Act of 1936 created the Rural Electrification Administration, which was charged with electrifying rural farms that the power companies had deemed too expensive to electrify. The REA provided low-cost, self-liquidating loans to electric cooperatives created by rural Americans to build networks of transmission and distribution lines. This was not only the birth of our industry but was the greatest public/private partnership in the history of the United States. Nine years later, in 1945, PCCA was founded to provide a unified voice for the industry when working with the USDA’s Rural Electrification Administration. Seventy years later, we still have the same mission, to represent members’ interests to the USDA’s Rural Utilities Services, the descendant agency of the REA.” Wagner went on to honor some of the people “who have made our association great.” He said, “Our Board of Directors created the Hall of Fame to recognize and celebrate the contributions that individuals have made over the years to the success of our association and to the success of the power and communication construction industry. Obviously, we have a long way to go to recognize all the people who helped us get to where we are today, but we have a good start—and I think it’s very important that we get started before many of these important people are forgotten.” PCCA Inducts Industry Luminaries into Hall of Fame Continued on page 28
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