Power & Communication Contractor
January, 2002

Contents

Guy Fugal, Steady Leadership for PCCA

PCCA News

Safety Watch

Watch IT

Industry Roundup

Advertiser Index

Fugal Guides PCCA With a Steady, Experienced Hand

Guy L. Fugal, President of Niels Fugal Sons, Pleasant Grove, Utah, has been guiding PCCA as its 2001-2002 President. Guy has been a member of PCCA since Fugal Company joined the association 20 years ago. He has been a driving force on every committee on which he has served, and for more than 13 years, he has greatly influenced PCCA’s direction as an officer.

Guy is a great-grandson of Utah pioneers. His grandfather Niels Fugal founded the Niels Fugal Company in 1924. During the early years, the company built water distribution systems for communities throughout Utah and Idaho under contracts with the Public Works Administration. The economic boom following World War II increased demand for construction, and in the late 1940s, Niels went into partnership with his sons, Neil, Boyd, and Grant, to form Niels Fugal Sons Company.

As technology improved and consumer demand increased, the company branched into the construction of natural gas lines. In 1947, the Fugal Company began installing natural gas distribution systems for Mountain Fuel Supply Company. More than 50 years later, the company’s Natural Gas Distribution division has installed systems in every area and community serviced by Mountain Fuel Supply Company, now known as Questar.

Leadership Rooted In Values
With the retirement of the second generation, the third generation continues to this day under the leadership of Guy as President and his brother Dan as CEO. Knowing full well how difficult it is for any family company to succeed going into the third generation, Guy and Dan were determined that the company would continue to strengthen and uphold the values of integrity, quality, leadership, teamwork, and success that their father and grandfather advocated. Under Guy and Dan’s leadership, the company has more than quadrupled revenues in the past five years.

Under Guy’s leadership, the Fugal Company has since diversified into three divisions: Natural Gas Distribution, Telecommunications, and Network Services. The Telecommunications division has installed cable, fiber, conduit, and all other associated work throughout the western states for many private and independent telephone and engineering companies. Through its Network Services division, the Fugal Company offers a full range of voice and data-structured cable systems, including engineering, installation, and testing to meet any communication and data network application.

The Telecommunications division is what brought Guy to PCCA. “Out of all the organizations we belong to, PCCA has brought more ‘value-added’ to our company in the way of networking and solid relationships within the telecommunications industry than any other organization or relationship,” Guy said.

Bigger Sandbox, Bigger Toys
As a young boy, Guy played in his sandbox with a large fleet of Tonka trucks and equipment, and he knew he would always work in the construction industry. “It started with a couple of Tonkas in the sandbox, and over the years we have built an impressive fleet with the newest and best maintained equipment,” he said. “But really, it is the quality of our people who get the job done, and we take great pride in exceeding our clients’ expectations. Only today, the sandbox is a lot bigger, and so are the toys.”

Although Guy has worked in the construction almost full-time since 1967, important values and a strong work ethic were being taught as he worked side-by-side with his father and grandfather as a young boy. Guy vividly remembers, as a teenager, walking to the jobsite of a competitor’s telephone conduit job. He watched as they quickly backfilled the conduit without shading it. Excitedly, he ran home to tell his father what he had learned. When Guy asked why Fugal Company did not backfill like this to save time and money, his father sharply replied, “That’s not the way it’s supposed to be done. We do it right the first time, and we don’t cut corners.” Lessons like these continue to shape the Fugal Company of today.

Guy took time off as a contractor to study business in college, and he served in the Army Reserve. He has been married to his wife, Paula, for 30 years. He attributes much of his business success to the support Paula provided as he worked on many out-of-town projects over the years. Guy and Paula have two daughters, Abbie and Page, and a son-in-law, Russ Fowles, who currently works at Fugal Company as a Superintendent. Their one-year-old granddaughter, Mary, is the joy of their life.

Taking Civic Responsibilities Seriously
Having always been civic minded, Guy serves to this day as a volunteer fireman for the city of Pleasant Grove and is a Certified Emergency Medical Technician. Another part of Guy’s life that keeps him busy involves the schools in Utah. He has been a member of the Alpine School District Board of Education and a Director of the Utah Activities Association for more than eight years. He has served as Vice President and President of the Board of Education and has had a great influence on the direction of education in a district serving more than 55,000 students. This involvement, combined with his activity in his church, family, and PCCA, has kept him very busy over the past few years. He also loves to get away every chance he gets, and on occasion you will find him snow skiing, golfing, or spending time at the beach.

Even with a “downturn” in the economy over the past few months, Guy sees a bright future for the power and telecommunications industry. “There will be a strong and continued demand for the services of members of PCCA,” he said.

His top goals during his presidency have revolved around unifying the association and helping us all remember “how we got here.” He hopes the upcoming convention in Dana Point, Calif., will be “productive and memorable for all who attend.”

PCCA News

The Great Land Awaits PCCA In Alaska
Towering glacial peaks, mighty rivers, amazing wildlife, and infinite landscapes await PCCA members at this year’s Mid-Year Meeting, July 25-27, at the Alyeska Resort in Girdwood, Alaska. Nature’s grandeur combined with industry-specific education, important association business, and unbeatable networking opportunities make this Mid-Year a truly special event.

“The Alyeska Resort provides the perfect setting for our contractor and associate members to meet, make contacts, and figure out what we must do to jump-start our industry,” said incoming PCCA President Charley Duff. “The PCCA Mid-Year is a great place to learn more about where our industry is headed, gain knowledge to improve your company’s operations, and allow you to have a voice in improving our industry.”

Girdwood is on Alaska’s south-central coast, just 40 miles south of Anchorage, which is accessible via an average 170 in-bound flights daily. In July, the average temperature is around 65 degrees, and there is nearly 23 hours of daylight each day. (Who’s thinking 9 p.m. tee times?)

The Aleuts call the area “Alyeska, the Great Land,” and the resort and the PCCA program offer opportunities to fully explore its splendor. The resort is tucked amid the Chugach Mountains, and among its many charms is an aerial tram that runs 2,300 feet above the valley floor.

PCCA has booked the Klondike Express, a high-speed catamaran, for a 26-glacier cruise of Prince William Sound, where members will view glittering icebergs, green fjords, and all sorts of wildlife. A full range of optional tours are available, including tours of Mt. McKinley and Denali National Park, flight-seeing, berry-picking, white-water rafting, hiking, biking, and fishing.

For more information about the 2002 PCCA Mid-Year Meeting, call (703) 212-7734. For registration, click here.

New Offerings From The PCCA Library
In November, PCCA announced a new educational partnership with FMI that provides construction management materials and seminars to association members at discounted rates. Following are the first selections in the PCCA Library.

• Hiring Keepers: Video Training Package
  This package includes two videotapes, five workbooks, and resource guides that show contractors step-by-step how to write job descriptions, screen applicants, write interview questions, conduct interviews, make the offer, and more. This training package provides the keys to reaching all hiring goals: lower overall hiring costs, less employee turnover, and employees with the highest probability of fitting into your organization.
  Member Price: $855 per set, plus shipping, handling, and tax.
  
• Driving Ideas Cassette Series
  Driving Ideas is the way to make the most of your time in the car or at home. This audiotape series includes topics such as how to increase field productivity and improve safety through better training and planning, how to manage cash flow and achieve profitability, how to enhance management and leadership skills, how to market and sell your firm’s services, and how to motivate employees to excel. The complete Driving Ideas package includes five sets of six tapes.
  Member Price: All 30 tapes for $479, four sets for $409, three sets for $319, two sets for $219, one set for $119, any three tapes for $59, plus shipping, handling, and tax. Thirty-day trial period.
  
• Financial Management For Contractors
  FMI’s best-selling book. Updated and revised, this is a hands-on book written in plain English for contractor managers at every level. It is not an accounting book for financial professionals. This step-by-step, easy-to-use, 275-page guide gives contractors the information they need to maintain their company’s fiscal well-being.
  Member price: $59.95 each for 1-4 copies, $53.95 each for 5-10 copies, $47.95 each for 11-20 copies, plus shipping, handling, and tax. Thirty-day trial period.
  
• Negotiating Skills For Contractors
  February 4-5, Bonita Springs, Fla.
  February 21-22, Denver, Colo.
  Learn how to negotiate like a pro. Two instructors will demonstrate how to gain the upper hand and get your fair share in every situation. You will discover how to bring your own natural style and negotiating methods into any setting. Examine construction industry situations and practical easy-to-apply techniques.
  First member attendee: $825; additional attendees from same member company: $725 each; fourth attendee from same member company: free.
  
• Nine Skills Of Highly Effective Leaders
  February 7-8, Bonita Springs, Calif.
  February 14-15, Denver, Colo.
  This course offers a unique opportunity to build leadership skills. Discover how to add key elements to your managerial profile to boost you into the premier group of construction executives.
  First member attendee: $825; additional attendees from same member company: $725 each; fourth attendee from same member company: free.
  
• Tight Job Control
  January 31, Phoenix, Ariz. • February 5, Jacksonville, Fla. • February 7, Portland, Oreg. • February 12, Richmond, Va.• February 18, Sacramento, Calif.
  In this one-day program, operations managers, foremen, and superintendents get specific solutions to scheduling and job control problems. They will understand the enormous impact a small change in productivity has on company profits.
  First two member attendees: $245 each; additional attendees from same member company: $220 each.

To order materials, register for seminars, or obtain more information, call PCCA at (703) 542-7222.

PCCA Financial Statistical Survey Now Available
PCCA, in conjunction with the National Utility Contractors Association, recently released the PCCA/NUCA 2000 Financial Statistical Survey. The study of PCCA and NUCA contractor members examines the overall financial position of utility, power, and communications construction and service businesses, as well as the compensation levels and benefits provided for 30 positions in these industries.

PCCA members can purchase the survey results for $345, and the nonmember price is $695.

The survey data is presented in five categories based on the respondents’ annual revenue: all respondents, less than $5 million, $5-10 million, $10-20 million, and more than $20 million. The 30 positions examined by the survey are classified by Construction Management, Estimating/ Engineering, Equipment Management, Administrative, Safety/Human Resources, Marketing/Sales, and Clerical.

The Financial Statistical Survey makes construction executives more aware of the changing market in which they operate. Measuring one’s business against other comparable businesses is a good indicator of how the company is performing and what it may require to become more profitable.

To order the PCCA/NUCA Financial Statistical Survey, call (703) 212-7734.

Safety Watch

OSHA Cites Construction Firm For Overexposing Workers To Lead
Exposing workers to unsafe levels of lead may cost a Wisconsin company $250,000 in proposed penalties, OSHA announced in December. OSHA alleged that the company committed safety and health violations by overexposing workers to lead and failing to implement proper engineering and administrative controls to protect employees.

“These citations deliver an important message,” said Secretary of Labor Elaine Chao. “Employers have a responsibility to follow standards and protect workers from excessive exposure to harmful substances such as lead.”

Alleged willful violations involved the company’s failure to properly implement and manage a lead program while demolishing a bridge that was known to have lead coatings. OSHA cited the company for exposing workers above the permissible limit without proper engineering controls and a proper respiratory program. Other willful violations were for failing to ensure employees properly used protective coveralls, permitting employees to wear street clothes under their coveralls, and permitting employees to wear the same personal footwear in a hazardous lead environment and their homes.

Alleged serious violations were for failing to adequately monitor the air to determine the level of exposure while employees cut lead coatings, failing to implement protective measures for employees until air monitoring determined the hazards at the site, and using objective and historical data that was inadequate and did not reflect the conditions at the worksite.

Other alleged serious violations involved the company’s failure to inform workers in writing of the air monitoring results, failure to update the lead compliance plan in the past six months, and failure to conduct blood lead tests within specified time frames. Employees were allowed to eat in contaminated areas in their work clothes, shower facilities were not provided, and respirator fit test records were incomplete. One employee was observed working under a suspended load of bridge steel being moved by a crane.

OSHA defines a serious violation as a hazardous condition in which there is a substantial probability that death or serious physical harm and the employer knew or should have known of the hazard. A willful violation is one in which the employer knowingly failed to comply with a legal requirement or acted with plain indifference to employee safety.

The company has 15 working days from receipt of the citations to contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission or request an informal hearing with the OSHA area director.

Chao Comments On Historic Lows In Workplace Injury And Illness
In December, Labor Secretary Elaine Chao released the following statement about the 2000 Injury and Illness data released by the Bureau of Labor Statistics.

“Today’s announcement is good news for both workers and those who employ them. Workplace injury and illness rates declined in 2000, to the lowest level since the Bureau of Labor Statistics began reporting this data in the early 1970s. This data shows that our nation’s workplaces continue to become safer and healthier each year.

“While the number of injuries and illness cases remained basically the same as reported in 1999—5.7 million—the number of hours worked rose by two percent, resulting in a lower injury and illness rate of 6.1 cases per 100 workers. Injury and illness rates in more dangerous occupations such as construction and manufacturing also continued to decline.

“We must keep improving upon this positive trend in workplace injury and illness rates, through proper enforcement of health and safety standards, as well as OSHA’s model compliance assistance program.”

OSHA Encourages Defibrillator Use To Revive Workers With Cardiac Arrest
Because the use of automated external defibrillators (AEDs) can save the lives of workers who experience cardiac arrest while on the job, OSHA is encouraging employers to consider making this equipment available in their workplaces.

“AEDs are easy to use and can make the critical difference in reviving individuals who suffer a cardiac crisis,” said OSHA Administrator John Henshaw. “Administered within three minutes, the electric shock (defibrillation) restores the normal rhythm to the victim’s heart and can increase survival rates from less than 5 percent to nearly 75 percent. Immediate defibrillation can revive more than 90 percent of victims.”

OSHA has issued a fact card and a technical information bulletin on the use of AEDs, encouraging employers to take advantage of this technology. AEDs are lightweight and run on rechargeable batteries. They are designed to analyze the heart rhythm and automatically indicate when to administer the shock. Each unit costs from $3,000 to $4,500.

Each year 300,000 to 400,000 individuals die from cardiac arrest. Most of these deaths occur outside hospitals. Cardiac arrest is often due to chaotic beating of the heart, which can be restored to normal rhythm if treated promptly with defibrillation. With each minute of delay in defibrillation, 10 percent fewer victims survive.

Placing AEDs in workplaces could significantly increase survival rates. In 1999 and 2000, 815 of 6,339 workplace fatalities reported to OSHA resulted from cardiac arrest. The agency estimates if AEDs helped restore 40 percent of those who suffer a cardiac crisis, as many as 120 lives would be saved each year. Workers involved in shift work, holding high stress jobs, or exposed to certain chemicals or electrical hazards face a higher risk of heart disease and cardiac arrest.

AED’s have proven their value at the U.S. Department of Labor headquarters where they are strategically placed throughout the building. In December, a Labor Department employee collapsed. Co-workers called the DOL Health Unit, and a nurse came and used a nearby AED to treat the victim. The individual was resuscitated, sent to the hospital and is now recuperating following heart surgery.

The new OSHA fact card and technical information bulletin are available on OSHA’s website at www.osha-slc.gov/ OshDoc/Additional.html#AED” {AED Card} and www.osha-slc.gov/dts/tib/tib_data/tib20011217.pdf {Technical Information Bulletin}, and through the agency’s publications office at (800) 321-OSHA.

Note: The purpose of these materials is for information only and does not impose and is not intended to result in the imposition of any new legal obligations or constraints on employers.

Direct Access To Specialists May Reduce Workers’ Compensation Costs
In contrast to managed care approaches, a program offering direct access to specialist doctors and increased physicians’ fees may reduce workers’ compensation costs, reports a pilot study in the August Journal of Occupational and Environmental Medicine, official publication of the American College of Occupational and Environmental Medicine (ACOEM).

Stephen Atcheson MD, of Reno, Nev., and colleagues evaluated a “specialist-direct” approach to workers’ compensation cases from two large hotel-casinos. In the new approach, workers with on-the-job injuries had direct access to physicians specializing in the care of musculoskeletal injuries.

Over two years, the program reduced overall workers’ compensation costs by 63 percent. Indemnity costs—including compensation for missed work time and disability payments—decreased by 85 percent.

Rapid access to specialists was a major factor in reducing indemnity costs. For minor injuries, the specialists were likely to recommend that the worker stay on the job with modified duties. For more serious injuries, seeing a specialist early shortened the time until the patient received definitive care.

The specialist-direct approach also increased the fees paid to the primary care doctors treating the injured patients but did not allow them to profit from “self-referral” for tests or treatments from which they might profit financially. Under the new system, medical costs decreased by 45 percent—even though the doctors received higher fees, the amount of services provided decreased.

Occupational injuries are an enormously expensive problem. In recent years, employers have considered managed-care approaches, including limited access to specialists and discounted fees paid to physicians. However, these approaches have often failed to achieve expected cost reductions.

Although more study of the specialist-direct approach is needed, the preliminary results suggest it has the potential to achieve real cost reductions, rather than cost shifting, in the management of workers’ compensation cases.

ACOEM, an international society of 6,000 occupational physicians, provides leadership to promote optimal health and safety of workers, workplaces, and environments.

WatchIT

A Few Simple New Year’s Resolutions For Your IT Department
We’re all coming off the good feelings generated by end-of-the-year holiday celebrations, so now would be a good time to take those warm fuzzies and apply them to the coming year. Most IT departments have a to-do list a mile long, and if yours is threatening to get out of hand (or already is!), you should probably start your list of New Year’s resolutions with the Golden Rule as it applies to the end user. (You remember the Golden Rule: Do unto others as you would have them do unto you.)

Resolution #1
Be nice to the end users. They really aren’t stupid. Generally, they just want to get their work done with minimal fuss. Of course, we all have stories about users doing less than brilliant things to their computers. (The urban legend about the guy who used his CD-ROM tray as a coffee cup holder comes to mind.) For the most part, Joe Worker has to do more with less, and that less, in the computer world, almost always falls in the training category. Be nice to the end users. Don’t talk down to them just because they ask a question that prima donna you feel is beneath you! The positive spin you place on any encounter with an end user—your client—will come back to you just as surely as any condescension.

Resolution #2
Keep everyone in the loop. That means that everyone above and below you on the corporate org chart needs to be on the same page as to what your department is doing. For example, if you want to earn the undying admiration of your colleagues, install new software on everyone’s computers over the weekend without telling them so that when they come in Monday morning they are completely confused as to what’s going on. All sarcasm aside, letting people know as far in advance as possible when you need to update or change software or hardware, even minor things, will go far to earn you respect in the organization. After all, even though your world revolves around the computer, their world revolves around the work they perform with the computer. That’s an easy one to forget.

Resolution #3
If you screw up (or I should say, when you screw up), own up to it! People generally don’t mind mistakes as long as you come clean and work to correct them immediately. Even if they are up against a deadline and the IT project you’ve been selling to them as the “latest and greatest time and effort saver” is not working at all, show what you’re made of and move to fix it rather than hide it. And do it quickly!

Resolution #4
Don’t update, upgrade, or change anything (you can fill in the blank) for the sake of changing, upgrading, or updating. In simplest terms, if it ain’t broke, don’t fix it. After all, even though the AcmeSoft Company has released three upgrades in the past six months, that doesn’t necessarily mean they are of use to you and/or your company. The entire PC industry is driven by the “latest and greatest,” and not to begrudge them, but what does that have to do with you? I would venture a guess that the answer is, “Not much!”

While it is fun to upgrade hardware and software, it takes valuable work time away from the company. And this goes further to what your role is in your company. (Some companies like to play the technology advocacy game, and more power to them. But make sure you have the go-ahead to do so, or you may be left with a company holding all the latest toys but no customers.)

Do Unto Others...
That’s my list of Resolutions for the New Year. You may notice that virtually all of them are people oriented rather than PC oriented. That’s because that’s the way it should be, in my humble opinion, if you want your IT department to garner the respect it needs to help your company flourish. It all goes back to the Golden Rule.

Greg Smela is the information systems manager at John J. Kirlin, Inc., a mechanical contracting firm in Rockville, Md. He can be reached at gsmela@johnjkirlin-inc.com.

Industry Roundup

FMI Construction Market Outlook Is Cautious For 2002, But More Optimistic For 2003
A recently released report from PCCA member FMI, Raleigh, N.C., opens with this bit of good news: “There are many reasons to be optimistic about the long-term strength of the U.S. economy.” But the bad news follows closely behind: “However, economic conditions were worsening before the September 11 terrorist attacks, and they have deteriorated further since then. In light of this fact, FMI estimates a slowdown in the construction sector to last through 2002.”

The report predicts that virtually all sectors of the U.S. construction will be impacted by the slowdown, but that several major economic factors will stop the decline in late 2002 and provide the foundation for sustained expansions in 2003 and 2004.

2001-2002 U.S. Markets Construction Updates provides the latest information on economic factors affecting the construction industry. It forecasts the growth or decline in each market sector and geographic region, noting both short-term and long-term considerations.

The forecasts for the telecommunications and power sectors largely echo those presented at PCCA’s Mid-Year Meeting last August by FMI’s Chris Daum, one of the report’s contributors. Electric power providers are expanding capacities to keep up with demand. And despite the current turmoil in the telecommunications due to a lack capital investment, the report says, “the underlying fundamentals supporting continued growth in [communications] infrastructure spending remain strong.”

For more information or to order 2001-2002 U.S. Markets Construction Updates, call FMI at (919) 787-8400.

White House Wipes Out Blacklisting Rule
On December 27, the Bush administration revoked a controversial procurement rule linking the award of federal contracts to satisfactory compliance with labor, tax, antitrust, consumer protection, and environmental laws. The rule was issued in the waning days of the Clinton administration but was suspended last April by President Bush.

Business groups strongly opposed the rule, arguing that sufficient laws are already in place to ensure such compliance and that the rule could effectively blacklist companies from doing business with the federal government. Many argued that the rule gave too much authority to contracting officers who may not have corresponding expertise. These contracting officers had been instructed to consider anything they deem credible in evaluating a company’s record. That included unproven, pending, or alleged violations in administrative complaints or civil cases.

American Augers Wins Prestigious Weatherhead 100 Award
On December 11, American Augers, Inc. joined a distinguished group of the fastest-growing companies in Northeast Ohio when it received the prestigious Weatherhead 100 Award for 2001. Based on the company’s 1996-2000 revenues, the award highlights American Augers’ continued and rapid growth over the past five years. Company CFO Mike Mooney accepted the award in Cleveland, Ohio.

“American Augers is proud to be included in this outstanding group of companies,” said Scott Smalley, company Vice President and General Manager. “Our success is a direct result of the hard work and dedication of the entire American Augers team, from the manufacturing department all the way up through the executive management team.”

Each year, the Weatherhead School of Management at Case Western Reserve University, along with Enterprise Development, Inc.; Bank One, NA; Ameritech; and Benesch, Friedlander, Coplan & Aronoff LLP, recognizes the fastest-growing companies in Northeast Ohio.

Poll Finds That Despite Wide Availability Of Broadband, Few Are Signing Up
A new poll of dial-up Internet users found that while high-speed broadband service is widely available, many don’t see much value in subscribing to it.

The poll, released in November by Peter Hart of Hart Research and David Winston of the Winston Group, also found that there’s little support for Tauzin-Dingell legislation, with almost two-thirds of those polled saying the legislation would lead to DSL price increases. Only 6 percent said prices would decrease if Tauzin-Dingell passes.

“The bottom line is that among people who are most likely to subscribe to high-speed Internet access, the obstacles are price and lack of appeal,” said Hart, CEO of Hart Research. “Forty-eight percent have no interest regardless of price, and another 21 percent are willing to pay at most $20 per month. If you cannot win over the people who are currently using the Internet, consumer acceptance of high-speed access will be slow and limited. Most dramatic of all is that fully 63 percent of Americans believe the Tauzin-Dingell bill would lead to higher DSL prices because there wouldn’t be much price competition.”

Findings about consumer interest in subscribing to high- speed service also apply to those who use it at work, the poll found, indicating that even those exposed to the service find little reason to subscribe at home.

According to the poll, 74 percent believe Congress should encourage competition among various DSL providers in each market. Only 15 percent believe Congress should allow one company to build and maintain all the DSL networks in a region and give that company the ability to set rates and conditions without regulation.

Other data show that while the majority believed some form of Internet access should be available in all parts of the country, relatively few users (30 percent) place a high priority on ensuring that all Americans have access to high-speed service. In fact, more respondents (32 percent) rated this a low priority.

Broadband Industry Encourages Stimulus
In a December 10 letter to House and Senate leaders, the Telecommunications Industry Association (TIA) urged Congress to include in its economic stimulus package a two-tiered tax credit provided for by the Broadband Internet Access Act, a 30 percent depreciation deduction for capital expenses on IT equipment, and a five-year net operating loss carry-back provision.

The Broadband Internet Access Act establishes a temporary, two-tiered tax credit to encourage communications service providers to extend their high-speed Internet access networks to underserved areas and to invest in next-generation broadband facilities.

TIA estimated that this provision would stimulate some $2 billion in increased investment and that the resulting broadband deployment would further benefit the economy through increases in electronic commerce and sales of computer hardware and software, for example. The group claims that the move would also extend productivity gains to all segments of the economy, including medical facilities, farmers, and small businesses.

TIA is also calling for a 30 percent one-time depreciation deduction for assets placed in service over the next three years. “In this uncertain economy, this will offer a substantial incentive for telecommunications and IT investments by accelerating capital recovery,” said TIA President Matthew Flanigan. “It will also provide an immediate stimulus to the broad range of IT-dependant industries that account for more than 40 percent of the gross domestic product (GDP) and that have generated nearly three-quarters of real GDP growth since 1995.”

TIA argued that the extension of the net operating loss (NOL) carry-back to five years instead of the current two would be offset by a reduction in the allowed number of years such a loss could be carried forward from 20 to 17 years. “A five-year NOL carry-back will immediately put necessary capital in the hands of the technology sector and corporate America at large,” Flanigan said. “Providing much-needed capital to suffering companies would directly address the issue of severe revenue losses due to the current economic downturn.”

USDA Announces $260 Million For Rural Energy And Business Efforts In 24 States
Agriculture Secretary Ann Veneman in December announced more than $260 million in loan and grant funds for 24 states to boost bioenergy production, expand rural business ventures, and improve economic and community development. She said that Minnesota will receive more than $22 million to help increase access to business opportunities and improve community infrastructure. These dollars include a $9.9 million guaranteed loan to the Minnesota Valley Electric Cooperative, which will use the loan to add 63 miles of electric distribution to benefit 1,130 new consumers; $950,000 in loans to assist in the production of ethanol and other business ventures; $10.5 million in loans and grants to improve seven community water and wastewater systems; and a $750,000 loan to support local efforts to provide businesses with access to much needed financing through a revolving loan fund.

Legg Named RUS Administrator
Hilda Gay Legg, a leader in Kentucky for rural development, was recently sworn in as the Administrator of USDA’s Rural Utilities Service by Agriculture Secretary Ann Veneman.

“We appreciate the swift confirmation of Hilda Legg by the U.S. Senate,” Veneman said. “She brings a great deal of experience and expertise to the Rural Utilities Service, and I am proud to have her serving on our team here at USDA.”

As RUS Administrator, Legg oversees financing for construction of rural infrastructure, including rural electrification, telecommunications, and drinking water programs, and administers the distance learning and telemedicine loan and grant program. She will also serve as the governor of the Rural Telephone Bank, a public/private lending institution that also finances rural telecommunications infrastructure.

Legg brings a diversified background of Kentucky and Washington, D.C., experience in rural community development. She has directed a rural development center, served on the Appalachian Regional Commission, and represented Senator McConnell in Kentucky. Since 1994, Legg served as executive director and CEO of the Center for Rural Development in Somerset, Kent.

American Augers, Inc.
American Pipe & Plastics, Inc.
ARNCO Corporation
Baker Equipment Engineering
Cable Placing Equipment
Clifford of Vermont
Craftworktools.com
Environmental Crossings, Inc.
Ground Specialties
Hogg & Davis
Lewis Manufacturing
NESCO
Osburn Associates
Roland Machinery
Scott Powerline & Equipment
Sherman & Reilly
Trencor
Utility Equipment Leasing Company
Vac-Tron
Vermeer Manufacturing