Florida Changes Proposal Rules

Independent power producers are hailing a regulatory body's decision that they expect will open a new state market for them. On Jan. 3, the Florida Public Service Commission voted to revise its bid rules to make the state's powerplant construction process more competitive.

The new rules require utilities to describe in detail the factors used to evaluate bids and to refrain from changing them without good cause. If substantial changes are made to the project, utilities now will have to give bidders the opportunity to revise their bids. Also added was an expedited procedure for dispute resolution within the bidding process.

The changes were made in the name of "creating a more transparent bid process that is fair and open to all bidders," said Kevin Bloom, PSC spokesman.

Since 1994, Florida utilities wanting to add generation capacity have sought proposals from developers. Of seven separate projects awarded, none has gone to an outside bidder during the last nine years, according to Florida Partnership for Affordable Competitive Energy, an IPP group.

PACE, whose members are vying for a piece of the $5-billion powerplant market expected in Florida over the next 20 years, is pleased with the new bid rules, said Mike Green, executive director.

"In the past, the rules were flawed and biased in favor of the utilities, but PSC has put in place strong language that bids will be solicited and evaluated in a transparent manner," said Green.

Florida Power Corp.'s parent, Raleigh-based Progress Energy, is disappointed and surprised by the new bid rules, said Aaron Perlut, spokesman. "We're going to take some time to examine the potential effects of the proposed rules and decide what our next strategy will be," he said. "We may decide to ask for a new hearing, but at this point we're just not sure." Source: Engineering News-Record.

Stimulus May Not Stir Industry

The battle to stimulate the economy has begun, with both Republicans and Democrats claiming they have the better plan. Each party has tilted its proposal toward individuals, and neither includes much relief for construction.

The White House unveiled a plan centered on eliminating all taxes on corporate dividends. In a speech to the Economic Club of Chicago on Jan. 7, President Bush outlined a 10-year, $674-billion package that would also accelerate the income tax cuts set to be phased in between 2004 and 2006. Business would see the $25,000 cap on write-offs for new equipment purchases jump to $75,000. Bush said his plan will increase consumer spending and promote small business growth. "The need for this plan is urgent," Bush said.

Bill Spencer, vice president of government affairs for the Associated Builders and Contractors, said that while most of the provisions of the White House plan will help individuals rather than companies, he is optimistic about the impact the stimulus package will have on the overall economy. "Historically, an upturn in the economy has resulted in strengthening the construction market. This will allow for more construction and for more job creation," said Spencer.

In contrast, House Democrats, attempting to upstage the president by one day, unveiled their $136-billion economic stimulus package Jan. 6. That 10-year plan would offer tax relief to small businesses, accelerated depreciation to spark plant and equipment investment and $5 billion for highway construction. House Democratic Leader Nancy Pelosi (Calif.) said the proposal would "jump start" the economy in the near term, with most of the impact to occur in 2003. Democrats say that beyond 2003, their proposal contains virtually no spending increases or revenue reductions.

With the GOP controlling both Congress and the White House, Pelosi admits Democrats will face an uphill battle trying to incorporate key elements of their package into compromise legislation. But she said lawmakers from both parties should find common ground.

The Bush plan makes all of the individual tax rate reductions enacted in 2001 effective this year and retroactive to Jan. 1, 2003. It reduces the marriage penalty this year instead of in 2009 and raises the child tax credit. The measure would extend unemployment insurance benefits and create "re-employment accounts" to help unemployed workers with job training, child care, transportation or other expenses associated with finding a new job.

One big disappointment for construction lobbyists was the absence of a provision to make permanent the repeal of the estate tax that Congress passed last year. Under current law the estate tax will be phased out by 2010 and then reinstated in 2011. Permanent repeal of the levy has long been a top priority of the industry.

Stan Kolbe, director of legislative affairs for the Sheet Metal and Air Conditioning Contractors' National Association, said the depreciation changes are "a critical element" for the capital-intensive sheet metal industry, which uses equipment to fabricate everything it puts in place.

But most of the political firefights center on the president's plan to scrap stock dividend taxes. Bush said it will allow taxpayers to exclude dividend payments from their taxable income and would return about $20 billion this year to the economy.

Opponents argue that the plan benefits wealthy stockholders. AFL-CIO President John J. Sweeney said the dividend benefit will primarily help wealthier taxpayers with incomes exceeding $100,000. Adds Sweeney: "The president should shelve the dividend cut and focus instead on a targeted recovery package." Source: Engineering News-Record. By Sherie Winston.

Supreme Court Rejects Appeal in PLA Case

The Supreme Court has refused a request by the AFL-CIO Building and Construction Trades Department to hear its appeal of a lower court ruling that affirms a White House order prohibiting project labor agreements on federally funded construction projects. The High Court's action is a setback for the building trades and a win for non-union contractors.

Without comment, the Justices on Jan. 27 denied review in the 2001 case, Building & Construction Trades Dept. AFL-CIO v. Joe M. Allbaugh.

Eddie Rispone, chairman of the Associated Builders and Contractors, said, "President Bush's common-sense executive order helps to ensure open competition in the U.S. construction industry. The Supreme Court's decision is a major victory for U.S. taxpayers and for the construction industry."

Shortly after Bush took office in January 2001, he issued an order prohibiting mandatory PLAs on federal projects. Later that year, the BCTD and others successfully sued in U.S. District Court in the District of Columbia to block enforcement of the directive.

In November 2001, the Justice Department appealed the district court decision and last July, scored a victory when the U.S. Court of Appeals for the D.C. Circuit reversed the lower court ruling and affirmed the executive order. In October, BCTD appealed to the High Court. Source: Engineering News-Record. By Sherie Winston.

NationsRent Shoots for Bankruptcy Rebound

A new, consensual debt consolidation and management reorganization plan may transform NationsRent into a privately owned company. The newest development comes more than a year after the publicly held Fort Lauderdale-based rental firm's Chapter 11 bankruptcy filing in December 2001 and its initial plan presented to the U.S. Bankruptcy Court in Wilmington, Del., in June 2002.

A handful of lawsuits surfaced after the Chapter 11 announcement in 2001, many of which originated with former, unpaid rental operators who sold their companies to NationsRent since its start-up in 1997. Creditors also sued James Kirk, former president and CEO, for receiving a $2 million severance package when he resigned three days prior to the Chapter 11 filing.

On Jan. 27, a court hearing will review the plan's disclosure statement, which includes privatizing the company. Under the new plan, two Boston investors, Phoenix Rental Partners and Baupost Group, will take over NationsRent and assume 100 percent of the debt - 95 percent with secured and 5 percent with unsecured lenders.

Former rental executives Bryan Rich and Douglas Suliman established Phoenix Rental Partners in 2001 specifically to acquire NationsRent debt securities. Baupost Group, founded in 1982, currently manages about $3.5 billion of equity capital.

Although Suliman declined to comment on how these events will affect equipment renters, he does say he expects the court to schedule a confirmation hearing, which finalizes the plan, by the end of March.

D. Clark Ogle, NationsRent's chief executive officer, said the company is "well on our way toward completion of our restructuring." Ogle, too, expects NationsRent to emerge from Chapter 11 in March.

NationsRent reports that it currently operates about 235 outlets nationwide, including 70 stores located inside Lowe's home-improvement centers. In 2001, the firm reported $500 million in rental volume and $600 million in gross volume, a decline from the respective $546 million and $669 million reported for 2000. Company representatives blame these losses on rental consolidation and economic slowdown. Source: Engineering News-Record. By Tudor Hampton.

Gov. Bush Honors Nation's Top Concrete Mason

At his last cabinet meeting of 2002, Gov. Jeb Bush recognized by proclamation the top Florida award winners of the Vocational Industrial Clubs of America (VICA). Among the winners was a Florida masonry apprentice, Chris Sutherland of Tampa, who won the Gold Medal at the National Skills USA VICA competition, held last summer in Kansas City.

Sutherland is a third-year apprentice construction mason employed by Red Brookshire of Florida, a masonry-building contractor in the Tampa Bay area. According to Devon Brookshire, president of Red Brookshire, "Chris is definitely on the fast track at Brookshire Masonry. He is one of my best craftsmen I have and is currently a supervisor one of my masonry crews."

Chris won multiple competitions prior to capturing the Kansas City VICA medal. For three consecutive years he placed first in the local Tampa Bay Chapter Apprentice Skill Contests, the State Apprentice Skill Contests, and the United States Regional events. Chris won the Nationals in Orlando in 2001, in Phoenix in 2002 and will compete in his last National event at the Masonry Contractors Association of America International Skills Challenge in Tampa March 12-15, 2003.

Contech Acquires Metal Pipe Business From Rinker

Contech Construction Products, Middletown, Ohio, recently purchased the corrugated metal pipe and geosynthetic business of Rinker Materials (Hydro Conduit), located at Pinellas Park and Ft. Pierce, Florida.

Formerly operated as Southern Culvert, the facilities and personnel will merge into Contech's nationwide sales and manufacturing team. The company provides corrugated steel and aluminum pipe, silt fence and special fabricated structures. The facilities also serve as distribution points for plastic drainage pipe, geotextiles, geogrids, turbidity barriers, water control gates, gabions and safety bars for mitered pipe.

Roepnack Moves to New Headquarters

Roepnack Corp., a commercial general contracting, design-build and construction management firm, recently moved to a 28,000-sq.-ft., two-story building at 3195 North Powerline Road in Pompano Beach.

The firm will occupy 14,000 sq. ft. for its new corporate headquarters, which will include all administrative staff; the operations, accounting, personnel, marketing and project management departments; and a warehouse. About 30 Roepnack employees will work in the new building.

Maleta Construction Co. Opens Doors

Maleta Construction Co. announced the opening of its offices at 6451 N. Federal Highway in Fort Lauderdale. Founded by Lawrence Maleta, the company is offering construction management and general-contracting services.

Maleta was previously with Pavarini Construction, Miami Lakes. Aziz Soliman will serve as chief estimator.

Thomas A. Maleta is company vice president.

Haskell Wins National ABC Award

The Haskell Co., Jacksonville was honored with an Associated Builders and Contractors national first place Eagle Award for its Sea Walk Performance Pavilion project for the City of Jacksonville Beach. Haskell will accept the award on March 14, 2003, in San Diego at ABC's Annual National Convention.

Construction began in April 2001 and was completed in four months. Haskell provided master planning, architecture, engineering, value engineering, construction management and landscape architecture services to the project. The company also teamed with RP Hirsch and Co., who contributed structural engineering services.

Haskell completed design-build services on the project in August 2001. The entertainment venue serves more than one million people in five communities surrounding Jacksonville Beach.

The National Association of Women in Construction has been selected for the 2003 "Associations Advance America Honor Roll," a national awards competition sponsored by the American Society of Association Executives, Washington, D.C.

NAWIC received the award for its Construction Career Days program, the goal of which is to introduce students to construction and to create industry awareness through a career fair. In 1997, Construction Career Days was formed in an effort to address the severe shortage of skilled workers.