Construction Outlook May 2020 by Ucane

MAY | 2020

The Shea Family: Celebrating Four Generations

• MassDEP Releases FINAL CY2020 Clean Water & Drinking Water SRF Lists Totaling $661 Million • Post-Coronavirus Contingency Planning for Contractors • You’ve Been Approved for a Paycheck Protection Program Loan. Now What?

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MAY, 2020

Years of Excellence 1954-2020

MAY, 2020

IN THIS ISSUE

OFFICERS President MARCELLA ALBANESE Albanese Bros., Inc.

President-Elect RYAN McCOURT

McCourt Construction Company

Treasurer BRIAN COONEY

C. C.Construction Inc.

Secretary CHRIS VALENTI

GVC Construction, Inc.

BOARD OF DIRECTORS VINCENT BARLETTA

Barletta Heavy Division

NICK BIELLO

J. D’Amico, Inc.

5 President’s Message:

While We Return to a New Normal, the Work Will Continue

7 Legislative Update: • • • •

Massachusetts Legislature Continues to Work UCANE Weighs in on Gas Infrastructure Legislation Clean Water Trust Approves $675,000 for School Water Improvement Grants EPA Proposes Municipal Stormwater General Permit Modifications for Massachusetts Communities • COVID-19 Side Effect? Water Usage Goes Down; Needs Still Exist

17 MassDEP Releases FINAL CY2020 Clean Water & Drinking Water SRF Lists Totaling $661 Million 31 Post-Coronavirus Contingency Planning for Contractors, Owners

MIKE BISZKO, III

35 In Memoriam:

ANDREW DANIELS

37 Not the Time to Back Off

GEORGE DeFELICE

38 Associate Member of the Month:

Biszko Contracting Corp. J. Derenzo Co.

DeFelice Corporation

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

JOE GIOIOSO

P. Gioioso & Sons, Inc.

DAN HORGAN

R. H. White Const. Co., Inc.

LISA FRENCH KELLEY

W. L. French Excavating Corp.

BILL LEONARD

Aqua Line Utility, Inc.

JOHN OUR

Robert B. Our Co., Inc.

QUERINO PACELLA

RJV Construction Corp.

RICHARD PACELLA, JR. R. M. Pacella, Inc.

BRIAN RAWSTON

Jay Cashman, Inc.

FRED ROGERS

Scrap-It, Inc./Minichiello Bros., Inc.

Bernard “Bernie” John Lazaro, Lazaro Paving Corp.

Shea Concrete Products: A Tradition of Strength

43 Save the Date: UCANE’s 41st Annual Golf Classic 45 You’ve Been Approved for a Paycheck Protection Program Loan. Now What? 55 Voters Overwhelmingly Favor Investment in Water Infrastructure According to New Poll 57 Get to Know Your UCANE Contractor Members: Andy Bissonnette, NSI Contracting, LLC

59 Insurance Perspective:

• COVID-19 Impact on Cyber Risk • Important: Use Your Bonding Company as a Resource!

63 Safety Corner:

Things Should Never Go Back to “Normal”

65 Spotlight on Cape Cod: Federal Wastewater Ruling Could Have Cape Implications

ERIK SVEDEN Milton CAT

JORDAN TIRONE

DeSanctis Insurance Agency, Inc.

DAVID WALSH

Pawtucket Hot Mix Asphalt

JEFF MAHONEY

Executive Director

Editor: Jeff Mahoney, Associate Editor: Suzanne Hatch, Magazine Designer/Assistant Editor: Sherri Klayman Construction Outlook Chair: Marcella Albanese Editorial Board: Marcella Albanese, Ryan McCourt, Brian Cooney, & Chris Valenti CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; Email: aklayman@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff. Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Brockton, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

While We Return to a New Normal, the Work Will Continue

It is most certainly an understatement to say that we have all been living through some very trying times. We mourn for those who have lost their lives during this pandemic, and pray for all who have been fighting off this terrible virus. What has sustained us throughout this ordeal is hope. The hope that we will once again be able to enjoy the company and camaraderie of our family, friends, and colleagues in person, NOT on a computer screen. The hope is that the actions and sacrifices that we have all made will allow us to return to some semblance of normalcy, even if it is a “new normal” for the foreseeable future.

he same holds true for UCANE member firms. While many members have continued to work safely on critical utility infrastructure projects during this crisis, we anticipate that the volume of work will increase in the coming weeks as the “reopening” of Massachusetts is phased in. Employee health and safety remains UCANE’s top priority, and members continue to implement all new safety protocols and measures at jobsites and offices. Lieutenant Governor Karyn Polito has been appointed Co-Chair of the Reopening Advisory Board and UCANE continues to work with her to address member questions and concerns. However, I would encourage our members to consult your legal, insurance, and financial professionals regarding contract, employee, and business issues, as members return to their ongoing projects and begin to start new work. On a positive note, MassDEP has released the final 2020 Intended Use Plan (IUP), which includes a list of the borrowers and amounts that have been approved for construction projects to be financed through the Drinking Water State Revolving Fund (DWSRF) and the Clean Water State Revolving Fund (CWSRF). Highlights include $420 million for 41 new Drinking Water projects and $138 million for 21 new Clean Water projects. (See lists beginning on page 17.) UCANE will continue to advocate for the state and federal government to provide a significant amount of financial incentives and flexibility to municipalities and awarding authorities, so that all critical drinking waMAY, 2020

ter, wastewater, and underground utility infrastructure projects will go forward. This may come in the form of federal stimulus money, an omnibus infrastructure bill, grants, principal forgiveness on project loans, and other significant incentives. This crisis has certainly shown how our water and utility infrastructure supports our public health response, allowing millions of residents, our hospitals, community health centers, and nursing homes, among many others, to access clean water, sanitation, and utilities. It has also been vital to citizens who have been asked to stay at home to prevent the further spread of the virus, that these systems stay operational. Lastly, I would like to point out that over the years Construction Outlook has been paramount in successfully promoting our industry issues to federal, state, and local officials, and our intent is to continue to do so during this crisis and beyond. So on behalf of the UCANE Board of Directors and staff, I want to thank our members and friends for their continued support of our magazine. I am keenly aware of how COVID-19 has affected all of our businesses and our entire industry. The fact that so many of you have maintained your ads in our magazine, is truly heartwarming and very much appreciated, and has not gone unnoticed. It is yet another example of why I take such pride in being a member of this incredible Association and serving as your President. Most importantly, I pray that you and your families stay safe and healthy! n

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MAY, 2020

Mark Molloy, Esq., Tenax Strategies, Inc.

Massachusetts Legislature Continues to Work

he month of April saw the Massachusetts legislature continue to focus on immediate needs created by the COVID-19 pandemic. Meeting through regularly scheduled “informal” sessions, the Massachusetts Senate and the Massachusetts House of Representatives have largely focused on issues that cannot be addressed merely through an executive order. For example, the MA legislature recently passed legislation providing for an alternative form of notarizing documents in light of the need for social distancing. The legislation, which had bipartisan support, allows for real-time video conferencing for notarizing any document – whether in the course of closing a transaction involving a mortgage or other conveyance of title to real estate, any will, nomination of guardian or conservator, caregiver authorization affidavit, trust, durable power of attorney or health care proxy. The measure was necessitated by the fact that many financial or contractual matters require notarized documents within statute. Along a similar line, the MA legislature also passed legislation creating a moratorium on evictions due to a loss of income and providing liability protections for health care workers treating COVID-19 patients. Again, these measures were passed during informal sessions with bipartisan consent, but the MA legislature will soon have to enter into “formal” sessions to meet certain requirements necessary for passing controversial legislation or legislation that mandates formal roll call votes. To that end, House Speaker Robert DeLeo and Senate President Karen Spilka have been working closely with their membership to develop the framework for a legislative process that balances the need to be socially distant, but “toMAY, 2020

gether” for voting, filing amendments, and otherwise engaging in the legislative process. The MA House of Representatives will be experimenting with telephonic and in-person means of moving legislation requiring “roll call” votes. For its part, the MA Senate has said that it will soon unveil its version of the “new normal” for formal sessions. Expect to see the House and Senate test these new systems and become more efficient as the process is used. In terms of upcoming matters, the MA legislature will begin to address both COVID-19 related and non-COVID-19 related legislation in the near future. One principal priority remains the fiscal year 2021 budget. With revenue projections now well below initial projections, budget writers are trying to determine what revenue is actually reliably available. As well, for practical purposes, House and Senate leadership are trying to figure out how to actually pass a budget, given the process usually involves close to a combined three thousand amendments. Much of the budget process is undertaken in person – whether through negotiating or voting on amendments. In the coming weeks, House and Senate leadership will also weigh whether it is possible to undertake measures involving transportation finance, environmental stewardship, housing, and transportation bonding, among other items, before the end of formal sessions at the end of July. At a minimum, legislators have talked about the need to pass an economic development bill that helps businesses within Massachusetts regain their previous solid footing. UCANE will continue to engage legislators and staff as the session continues to ensure that the construction industry continues to have its voice heard. continued on page 9

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Legislative Update continued from page 7

UCANE Weighs in on Gas Infrastructure Legislation

efore the Massachusetts legislature redirected its immediate efforts to stemming the impact of COVID-19, the Joint Committee on Telecommunication, Utilities and Energy released legislation, House Bill 4555, relative to gas infrastructure, with a favorable report. The legislation, that has a wide-sweeping impact across the natural gas industry, will also impact contractors through mandated registration requirements by the MA Department of Public Utilities (DPU) as well as significant increases in the fines for Dig Safe violations. The legislation, which has been sent to the House Committee on Ways and Means, is part of a larger discussion about the response necessary to prevent another Merrimack Valley gas incident. In submitting comments to the House Ways and Means Committee, UCANE noted the following concerns relative to the substantially increased Dig Safe fines proposed in the legislation: “Under Section 10 of this legislation, however, contractors would see the penalties for Dig Safe violations, whether related to gas infrastructure or not, increase almost 20 times more than the existing system. Under the existing penalty system, there is a $1,000 fine for a first offense and for a second offense, $10,000, if the company has been cited within the previous year. As written, the Kendall Lubricants Announcement 7.5could x 5 6-18.qxp_Dennis Burke 6/21/18 $200,000 penalty in HB4555 bankrupt an K. excavator

for an infraction that neither impacted gas infrastructure nor caused a disruption in service for any other covered utility. Given that other states’ fines remain similar to Massachusetts’ existing fine structure, this makes no sense. PHMSA’s own audit did not identify the DPU’s fine structure as a problem – simply the lack of a requirement to call public safety officials through the 911 system. Further, as written, the penalty structure does not provide an excavator with the means of knowing what infraction is tied to what penalty, meaning that the same violation of the Dig Safe Law could lead to two different fines, depending on nothing more than a regulator’s impression of one excavator versus another. Finally, while the tragic 2018 gas explosion in Merrimack Valley was a serious incident, it was not caused because an excavator failed to follow the Dig Safe law or regulations.” The safety of the Commonwealth’s gas infrastructure has long been debated by the Massachusetts legislature. With the tragic gas incident in Merrimack Valley in 2018, more legislation has been filed to address this important system. UCANE, for its part, has continued to monitor this type of legislation to ensure that the proposed solutions actually relate to solving the identified problems. Expect the Massachusetts legislature to look closely at this issue once the immediate COVID-19-related legislation is addressed. 3:19 PM Page 1

continued on page 11

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Legislative Update continued from page 9

Clean Water Trust Approves $675,000 for School Water Improvement Grants

ccording to a press release from the Office of the Massachusetts Treasurer Deb Goldberg, the Massachusetts Clean Water Trust (Trust) approved the first round of grants totaling $675,000 to 32 school districts under the new School Water Improvement Grant (SWIG) program. SWIG, a grant-based program, will cover the purchase and installation of filtered water bottle filling stations to address detections of lead in drinking water at eligible public schools. This program is designed to encourage communities to perform lead testing and address elevated levels with the help of state experts. The Trust’s SWIG program, funded through a $5 million appropriation filed by Governor Baker and approved by the legislature, will provide grants to school districts that have participated in the Commonwealth’s lead testing pro-

gram or other comparable testing for drinking water fixtures. The $675,000 is expected to install 225 fixtures in 95 schools, serving over 53,000 students in the Commonwealth. These filtered fixtures will be used to reduce the lead levels in school drinking water. Grant awards were calculated based on a per fixture award of $3,000. Award funds may be used for the purchase and installation of bottle filling stations, the future testing of these fixtures and the purchase of replacement filters. Under current federal and state laws, lead testing in schools is voluntary. Water supplied to schools is generally free of lead, but lead can be introduced into drinking water through plumbing and fixtures in buildings – especially in older facilities. continued on page 13

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Legislative Update continued from page 11

EPA Proposes Municipal Stormwater General Permit Modifications for Massachusetts Communities

he U.S. Environmental Protection Agency (EPA) recently proposed targeted modifications to the 2016 Small Municipal Separate Storm Sewer System (MS4) general permit for Massachusetts’ communities. The proposed modifications would provide municipalities with more tools and flexibilities for permit implementation while also ensuring that water quality is protected and the goals of the Clean Water Act (CWA) are met. According to an EPA press release, the proposed modifications were developed through a multi-year mediation between EPA and the parties who challenged the underlying 2016 permit. The proposed modifications are identical to those attached to the litigation settlement agreement announced for public comment in December 2019 and executed in April 2020 between EPA and the permit litigants, which included municipalities, environmental groups, and other affected stakeholders. EPA will accept public comments on the proposed permit modifications for 45 days. EPA’s New England Regional Office issues CWA National Pollutant Discharge Elimination System (NPDES) permits in Massachusetts and New Hampshire. MS4 permits are NPDES permits that authorize certain discharges of municipal stormwater to surface waters. EPA issued the Massachusetts Small MS4 General Permit in 2016. After EPA finalized the 2016 MS4 Permit, various parties filed petitions for review, including the National Association of Homebuilders (NAHB), the Home Builders and Remodelers Association of Massachusetts, Inc. (HBRAMA), the Center for Regulatory Reasonableness (CRR), the Massachusetts Coalition for Water Resources Stewardship (MCWRS), the Town of Franklin, Massachusetts, (Franklin), the City of Lowell, Massachusetts (Lowell), the Conservation Law Foundation (CLF), and the Charles River Watershed Association (CRWA). These petitions were consolidated with a challenge to EPA’s 2017 New Hampshire Small MS4 General Permit in the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit). Once consolidated, the cases were entered into the DC Circuit’s mediation program; after more than two years of discussions, the parties negotiated a proposed settlement agreement that was announced December MAY, 2020

27, 2019, issued for public comment, and executed by all parties on April 15, 2020. Under the terms of that settlement agreement, EPA committed to taking the proposed modifications to the Small MS4 General Permit. The Federal Register notice, the proposed MS4 permit modifications, statements of basis that explain EPA’s rationale for the proposed permit modifications, and instructions on how to formally submit comments on the proposed permit modifications will be available on https://regulations. gov under the following docket number: EPA-R01OW-2020-0216. EPA will hold two informational webinars on the proposed permit modifications. The first information session was held May 4, 2020. To register, and for more information, for more information, please see: www.epa.gov/npdes-permits/massachusettssmall-ms4-general-permit. continued on page 15

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Legislative Update continued from page 13

COVID-19 Side Effect? Water Usage Goes Down; Needs Still Exist

he Springfield Republican recently highlighted that members of the Springfield City Council have raised concerns about a proposed 16.9% increase in the water and sewer rates, which is being blamed in part on the coronavirus. According to the Springfield Sewer Commission, water usage was down approximately 15% to 20% during the coronavirus pandemic, triggered by the closure of many businesses and schools. That was creating a major loss in water and sewer rate revenues that fund the annual commission budgets. Under the proposed rate increase, the typical household water and sewer bill would increase by an estimated $140.88 annually. For fiscal 2020, residential water/sewer bills average $839.55. The residential water rate is proposed to increase from $3.62 per 100 cubic feet (CCF) to $4.23 per CCF. The residential sewer rate will increase from $5.71 to $6.67 per CCF.

The Springfield Sewer Commission serves water customers in Springfield and Ludlow, and operates a regional wastewater treatment system. Water comes from the Cobble Mountain Reservoir. For its part, the Brockton Enterprise has reported that Brockton City Council, which controls water and sewer

rates, will also debate increasing rates to keep up with the City of Brockton’s water infrastructure needs. Proponents of the rate hike and new user fees say the additional $3 million collected each year will enable the Brockton Department of Public Works to replace water mains that date back, in some instances, to the 19th century. The City of Brockton, which was able to stabilize water and sewer rates for 10 years without a rate increase, is reporting that the cost of operating the system now exceeds revenue collected through rates. For an average household consuming about 3,000 cubic feet of water per financial quarter, the increased rates and new quarterly user fees would cost them about $175 more per year. Interestingly, both proponents and opponents of the rate increase cite the COVID-19 pandemic – proponents highlighting the importance of a working water system and opponents lamenting incurring any additional costs due to the impact of COVID-19. For cities and towns across the Commonwealth, the same debate will be played out as municipalities struggle to keep up with their existing water infrastructure needs. While potential infrastructure assistance may come from the federal government in the future, municipalities are recognizing that the Commonwealth’s $21 billion water infrastructure funding gap will have to be addressed sooner rather than later. n

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MassDEP Releases FINAL CY2020 Clean Water & Drinking Water SRF Lists Totaling $661 Million Charles D. Baker Governor Karyn E. Polito Lieutenant Governor

Matthew A. Beaton Secretary

$495 Million Offered for Clean Water SRF in 2020

he Massachusetts Department of Environ-

January 26, Protection 2016 mental (MassDEP) is pleased to

Martin Suuberg Commissioner

across the Commonwealth.

As noted in Table 1, approximately $420 million present the Calendar Year 2020 Intended Use will fund 41 new construction projects, $59 million will To(IUP), All Interested Parties: Plan which details the projects, borrowers and be allocated towards funding five previously approved amounts that will be financed through the Clean Wamultiyear projects, an additional Massachusetts Department of Environmental pleased to present$7.6 the million will ter The State Revolving Fund (CWSRF) loan program.Protection (MassDEP) isand finance ten planning projects. A total of $3be million has 2016 Intended Plan (IUP),financing which details TheFinal CWSRF is a jointUse federal-state loan the projects, borrowers and amounts that will been allocated toprogram. the emergency set-aside program that provides improve Fund financed through the subsidized Clean Waterloans State to Revolving (CWSRF) loan The CWSRF is aaccount, and $5 million will berate directed Community Sepandjoint protect water quality andloan public healththat in provides the federal-state financing program subsidized interest loans to to the improve or tic Management Program to remediate failed septic Commonwealth. Massachusetts is offering approxiprotect water quality in the Commonwealth. systems in participating communities. mately $495 million to finance clean water projects

As noted in Table 1, Massachusetts is offering approximately $414 million to finance clean water projects across the Commonwealth. Approximately $3801 million will fund 35 new construction Table projects and an additional $15 million will be TABLE allocated1 towards funding 9 previously approved CLEAN WATER STATE FUND Cleanprojects. Water$2State Revolving Fund CY2020 Intended Use multi-year million has been allocated to REVOLVING the emergency set-aside account, and $3 Plan Calendar Year 2020 CWSRF Intended Use Plan million will be directed to the Community Septic Management Program to remediate failed septic NEW PROJECTS systems in participating communities. An additional $13.8 million will fund 15 planning projects. NEW PROJECTS

2020 Project Cost IUP Cost 2020 CostWater IUP Cost The Water Resources Reform and Development Act of 2014 (WRRDA) amendedProject the Clean

Rating Applicant SRF ID ID Project Project Rating Applicant SRF

Act resulting in important changes to the CWSRF Program that will affect most borrowers. The $22,500,000 4605 Wastewater Treatment Facility Upgrade - Phase 1 $22,500,000 primary changes to the program are the requirements for borrowers to develop and maintain a Fiscal 133 Sustainability NEW BEDFORD Plan, (PF) which is similar $27,580,000 $19,445,000 6657 Pumping Stationmanagement Improvements plan and a certification to an asset that the cost and of the project has5626 been evaluated and thatImprovements the project maximizes water$8,944,000 efficiency and $8,944,000 131 effectiveness NANTUCKET #(H) Phase 2 Surfside WWTF energy conservation. The body of the IUP discusses these new WRRDA requirements in greater 120 NEW BEDFORD (PF) $15,805,000 $15,805,000 6634 Wastewater Collection System Improvements detail.

161 TAUNTON #(RE)(PF)(H)

120 FITCHBURG (PF)

United 107 The REVERE (PF)States

4624 CSO 007, 011, 039, 048 Separation/Rehabilitation

$8,000,000

$32,000,000

Environmental Protection Agency (EPA) has not yet determined $6,700,000 the exact 2016 $6,700,000 6648 Phase 11 Construction- I/I, IDDE, P.S. & Drainage SRF grant allocations to the states. Based on the overall federal appropriation, MassDEP expects to 100 receive TAUNTON $6,000,000 6690federal WWTF-grant Solids to Handling Improvements an(PF)(H) estimated $44 million subsidize the CWSRF program. Under the Fiscal $6,000,000 2016 (PF) Omnibus Appropriations Bill,Needs Congress requiring that at least 10% of$12,686,000 the federal grant 100 Year ACUSHNET $12,686,000 6647 CWMP Areas is 2 Sewer Extension be used to fund “green infrastructure”. The 2016 Final IUP lists 16 new “green infrastructure” 100 ACTON #(H) $16,600,000 $16,600,000 6630 West Acton Center Sewer Extension Project construction projects. The exact monetary value of the green portion of these projects will be 94 determined NORWOOD (PF) $2,700,000 6715 Underdrain Area Sewer Rehabilitation when project applications are submitted but are expected to be well in excess of 10% of$2,700,000 federal(PF) grant. 94 the WAREHAM $9,000,000 $9,000,000 6642 Process Upgrades at the Wareham WPCF 93 NANTUCKET (H)

6722 Sea St. Pump Station Force Main No. 3

This information is available in alternate format. Call Michelle Waters-Ekanem, Diversity Director, at 617-292-5751. TTY# MassRelay Service 1-800-439-2370 92 LYNN WATER AND SEWER $27,800,000 $27,800,000 6736 Headworks and Grit Removal Upgrade MassDEP Screenings Website: www.mass.gov/dep

COMMISSION

Printed on Recycled Paper

92 WINTHROP (PF)

4620 Centre Business District Infrastructure Improvement

$8,635,000

87 BROCKTON (PF)(H)

6688 Sewer Rehabilitation Project

$5,000,000

87 ACTON #(RE)(H)

5625 Acton Middle Fort Pond Brook WWTF Upgrades

83 BARNSTABLE #(PF)(H)

6675 Wastewater Pump Station Improvements Project

83 NEW BEDFORD #(PF)

MAY, 2020

82 CHATHAM 82 CHICOPEE #(PF)

continued on page 19 $13,300,000 $13,300,000 $1,000,000

$1,000,000

$12,750,000

4615 Chatham Stormwater Improvement Projects - 2020

$3,311,000

6721 Jones Ferry Wastewater PS Phase II Improvements

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4614 Wastewater Treatment Plant Improvements

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100 ACTON #(H)

6630 West Acton Center Sewer Extension Project

$16,600,000

94 NORWOOD (PF)

6715 Underdrain Area Sewer Rehabilitation

$2,700,000

94 WAREHAM (PF)

6642 Process Upgrades at the Wareham WPCF

$9,000,000

$32,000,000

$27,800,000

DEP/SRF continued from page 176722 93 NANTUCKET (H)

Sea St. Pump Station Force Main No. 3

92 LYNN WATER AND SEWER COMMISSION

6736 Headworks Screenings and Grit Removal Upgrade

87 BROCKTON (PF)(H)

6688 Sewer Rehabilitation Project

87 ACTON #(RE)(H)

NEW PROJECTS (cont.)

92 WINTHROP (PF) $8,635,000 4620 Centre Business District Infrastructure Improvement Rating Applicant SRF ID Project Project Cost

2020 $8,635,000 IUP Cost

$5,000,000

5625 Acton Middle Fort Pond Brook WWTF Upgrades

$13,300,000

83 BARNSTABLE #(PF)(H)

6675 Wastewater Pump Station Improvements Project

$1,000,000

83 NEW BEDFORD #(PF)

4614 Wastewater Treatment Plant Improvements

$12,750,000

82 CHATHAM

4615 Chatham Stormwater Improvement Projects - 2020

$3,311,000

82 CHICOPEE #(PF)

6721 Jones Ferry Wastewater PS Phase II Improvements

$4,281,600

81 LITTLETON #(RE)(H)

6713 Littleton Common Smart Sewer Project

$22,950,000

77 REVERE (PF)

5628 Eliot Circle Wastewater Capacity Improvements

$9,500,000

77 SALEM (PF)

6672 Canal Street Flood Mitigation Project - Phase 2B

$37,500,000

76 BILLERICA #(PF)(H)

4618 Darby and Waterview Avenue Pump Stations

$2,525,000

73 CHICOPEE (PF)

6639 Solids Handling Improvements Project

$3,178,000

72 BELMONT

6702 Sewer and Storm Drain Rehabilitation

$1,564,000

71 SOUTH ESSEX SEWERAGE DISTRICT

6656 Contract No. 20-1 Danvers Siphon Rehabilitation

$2,500,000

69 DUDLEY (PF)

4603 Dudley I/I Mitigation Construction Project

$1,300,000

66 SOUTH ESSEX SEWERAGE DISTRICT

4608 Primary Clarifier Concrete Restoration

$10,795,400

66 BILLERICA (PF)(H)

4621 Sewer Contracts 37 & 38

66 SOUTH ESSEX SEWERAGE DISTRICT 65 MARTHA'S VINEYARD

AIRPORT COMMISSION 66 BILLERICA (PF)(H)

$10,795,400

4621 Sewer Contracts 37 & 38

$39,564,763

4625 Martha's Vineyard Airport WWTF Upgrades

65 BARNSTABLE (PF)(H) 61 GLOUCESTER #(PF)

6683 Pump Station Upgrades, City of Gloucester, MA

58 SALEM (PF) 61 GLOUCESTER #(PF)

AIRPORT COMMISSION

$39,564,763

$10,795,400

6730 Solids Handling Upgrade 4625 Martha's Vineyard AirportProject WWTF Upgrades 3 6711 Route 28 and Yarmouth Road Intersection Sewer

65 BARNSTABLE #(PF)(H) 65 MARTHA'S VINEYARD

$39,564,763

4608 Primary Clarifier Concrete Restoration

$4,500,000

$7,493,000 $4,500,000 $2,000,000

$4,500,000

$7,493,000 $4,500,000 $2,000,000

6730 Solids Handling Upgrade Project

$7,493,000

6711 Route 28 and Yarmouth Road Intersection Sewer

$2,000,000

4617 Salem Infiltration/Inflow Removal 2020 PEFMA 6683 Pump Station Upgrades, City of Gloucester,

$4,924,200 $2,765,000

58 SALEM (PF) 57 BARNSTABLE (PF)(H)

4617 Salem Infiltration/Inflow Removal 2020 PEF 6714 Strawberry Hill Road Sewer Expansion

$4,924,200 $8,500,000

57 BARNSTABLE(PF)(H) (PF)(H) 55 TYNGSBOROUGH

6714 Strawberry Hill Road Sewer Expansion 6645 I and I Rehabilitation

$8,500,000 $500,000

65 BARNSTABLE #(PF)(H) 65 BARNSTABLE (PF)(H)

55 TYNGSBOROUGH (PF)(H)

6645 I and I Rehabilitation

51 MASSACHUSETTS WATER RESOURCES AUTHORITY 51 MASSACHUSETTS WATER

6679 Hayes Pump Station Rehab

48 SALEM (PF)

4606 Ocean Avenue West Pump Station Improvements

47 ACTON (H)

6684 South Acton Sewer System Improvements

46 NAHANT 46 NAHANT

6737 Sewer Collection System Replacement 6737 Sewer Collection System- -Repair Repair and and Replacement

RESOURCES AUTHORITY

48 SALEM (PF) 47 ACTON (H)

6679 Hayes Pump Station Rehab

$2,765,000

$500,000

$11,000,000

$11,000,000 $2,000,000

4606 Ocean Avenue West Pump Station Improvements

$2,000,000

6684 South Acton Sewer System Improvements

$4,520,000

$4,082,000 $4,082,000

$428,253,963 $428,253,963

$420,118,963 $420,118,963

TOTAL TOTAL OF NEW OFPROJECTS NEW PROJECTS

TOTAL OF NEW PROJECTS (Count: 41) (Average Rating:82.61) 82.61) (Count: (Count: 41) (Average Rating: 41) (Average Rating: 82.61)

(H) - Housing Choice Communities (H) - Housing Choice Communities (PF) - Affordability Criteria (PF) - Affordability Criteria (RE) - Potential Renewable Energy Projects (RE) - Potential Renewable EnergyEfficiency, Projects Renewable Energy and/or meets EPA's definition of a # - Projects contains Energy # - Projects contains Efficiency, Renewable Energy and/or meets EPA's definition of a Green Project Energy (https://www.epa.gov/greeningepa/energy-and-emissions-epa) Green Project (https://www.epa.gov/greeningepa/energy-and-emissions-epa)

MAY, 2020

$2,765,000

$4,520,000

$428,253,963

$4,520,000

$420,118,963

continued on page 21

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DEP/SRF continued from page 19

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS

MULTI-YEAR CARRYOVER AND STATUTORY MULTI-YEAR Applicant SRFPROJECTS ID ProjectCARRYOVER Applicant

Applicant

SRF ID Project

SRF ID

AND STATUTORY PROJECTS Project Cost

Project

LYNN WATER AND SEWER 4488 West Lynn Sewer Separation COMMISSION LYNN WATER AND SEWER 4488 West Lynn Sewer Separation COMMISSION MASSACHUSETTS WATER 4150 DITP Asset Protection Phase 3 RESOURCES AUTHORITY MASSACHUSETTS WATER 4150 DITP Asset Protection Phase 3 RESOURCES AUTHORITY MASSACHUSETTS WATER 4117 Facility Asset Protection RESOURCES AUTHORITY MASSACHUSETTS WATER 4117 Facility Asset Protection RESOURCES AUTHORITY MASSACHUSETTS WATER 3981 Remote Headworks Upgrade RESOURCES AUTHORITY MASSACHUSETTS WATER 3981 Remote Headworks Upgrade RESOURCES AUTHORITY MASSACHUSETTS WATER 4446 Nut Island HW Odor Control & HVAC - Contract 7548 MASSACHUSETTS WATER# 4446 Nut Island HW Odor Control & HVAC - Contract 7548 RESOURCES AUTHORITY RESOURCES AUTHORITY # TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS TOTAL OFTOTAL MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 5) (Count: 5) (Count: 5) MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS Applicant Applicant Applicant

SRF ID Project SRF ID SRF ID Project

(Count: 2)

PLANNING PLANNINGPROJECTS PROJECTS Applicant Applicant GLOUCESTER GLOUCESTER

Project Cost $99,637,090 $99,637,090

2020 IUP Cost 2020 IUP Cost 2020 IUP Cost $22,200,000 $22,200,000

$66,500,000 $66,500,000

$600,000 $600,000

$45,448,945 $45,448,945

$7,000,000 $7,000,000

$129,936,000 $129,936,000

$21,000,000 $21,000,000

$57,565,399 $57,565,399

$7,900,000 $7,900,000

$399,087,434

$58,700,000

$399,087,434 $399,087,434

$58,700,000 $58,700,000

Project Cost Project Cost Project Cost

IUPCost Cost 2020IUP 2020 2020 IUP Cost

MassDEP PRIORITY PROJECTS

EMERGENCY SRF SET-A2977 EMERGENCY SRF SET-A2977 SIDE SIDE 3850 Community Septic Management Program COMMUNITY SEPTIC COMMUNITY SEPTIC 3850 Community Septic Management Program MANAGEMENT MANAGEMENT OF PRIORITY MassDEP PROJECTS PRIORITY PROJECTS TOTAL OF TOTAL MassDEP TOTAL OF MassDEP PRIORITY PROJECTS (Count: 2) (Count: 2)

Project Cost

SRF SRFID ID Project Project

$3,000,000 $3,000,000 $5,000,000 $5,000,000

$8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 continued on$8,000,000 page 23

Project ProjectCost Cost

2020 IUPCost Cost 2020IUP

$225,000 $225,000

HAVERHILL HAVERHILL(H) (H)

6631 6631 CMOM CMOMProgram ProgramPlanning Planningand andDiscrete DiscreteSewer SewerSystem System In In

$1,370,000 $1,370,000

MILLBURY MILLBURY

4609 4609 MS4 MS4Permit PermitCompliance Compliance

$500,000 $500,000

NEW NEW BEDFORD BEDFORD

4612 4612 Sewer Sewerand andStormwater StormwaterSystem System IDDE IDDE

$2,000,000 $2,000,000

QUINCY QUINCY(H) (H)

6669 6669 Stormwater StormwaterManagement ManagementPlanning PlanningStudy Study

$200,000 $200,000

QUINCY(H) (H) QUINCY

6668 Stormwater StormwaterDrainage DrainageStudy Study 6668

$350,000 $350,000

REVERE REVERE

6652 FOG FOGControl Controland andCMOM CMOMEquipment EquipmentProcurement Procurement 6652

$800,000 $800,000

REVERE REVERE

6651 Alternative AlternativeWastewater WastewaterConnections(s)/Storage Connections(s)/StorageEval Eval 6651

$750,000 $750,000

REVERE REVERE

6628 Phase Phase12 12Investigations Investigations 6628

$1,300,000 $1,300,000

$150,000 $150,000

$7,645,000 $7,645,000

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TOTALOF OFPLANNING PLANNINGPROJECTS PROJECTS TOTAL (Count:10) 10) (Count:

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TOTAL OF INTENDED USE PLAN TOTAL OF INTENDED USE PLAN

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$842,986,397 $842,986,397

B2W Maintain

6697 6697 Gloucester GloucesterComprehensive ComprehensiveWastewater WastewaterManagement Management Plan Plan

$494,463,963 $494,463,963

5 5

MAY, 2020

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

COMMUNITY SEPTIC MANAGEMENT

3850 Community Septic Management Program

$5,000,000

TOTAL OF MassDEP PRIORITY PROJECTS (Count: 2)

DEP/SRF continued from page 21

$8,000,000

PLANNING PROJECTS

Applicant Applicant

SRFIDIDProject Project SRF

Project Cost Project Cost

2020 IUP IUPCost Cost 2020

GLOUCESTER

6697 Gloucester Comprehensive Wastewater Management Plan

$225,000

HAVERHILL (H)

6631 CMOM Program Planning and Discrete Sewer System In

$1,370,000

MILLBURY

4609 MS4 Permit Compliance

$500,000

NEW BEDFORD

4612 Sewer and Stormwater System IDDE

$2,000,000

QUINCY (H)

6669 Stormwater Management Planning Study

$200,000

QUINCY (H)

6668 Stormwater Drainage Study

$350,000

REVERE

6652 FOG Control and CMOM Equipment Procurement

$800,000

REVERE

6651 Alternative Wastewater Connections(s)/Storage Eval

$750,000

REVERE

6628 Phase 12 Investigations

$1,300,000

WESTPORT

6695 Integrated Plan for WRM - Phase II

$150,000

TOTAL OF PLANNING PROJECTS (Count: 10)

$8,000,000

$5,000,000

TOTAL OF PLANNING PROJECTS

(Count: 10)

TOTAL OF DRAFT INTENDED USE PLAN

$7,645,000

$842,986,397

$7,645,000

$494,463,963

continued on page 25 TOTAL OF INTENDED USE PLAN

$842,986,397

$494,463,963

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MAY, 2020

DEP/SRF continued from page 23

$166 Million Offered for Drinking Water SRF in 2020

he Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the Calendar Year 2020 Intended Use Plan (IUP), which lists the projects, borrowers and amounts that will be financed through the Drinking Water State Revolving Fund (DWSRF) loan program. The DWSRF is a joint federal-state financing program that provides subsidized loans to protect public health by improving water supply infrastructure systems and protect drinking water in the Common-

wealth. Massachusetts is offering nearly $166 million to finance drinking water projects across the Commonwealth. As noted in Table 1, approximately $138 million will fund 21 new construction projects, an additional $23 million will be allocated towards funding six previously approved multi-year projects, and $1.7 million is allocated towards the five Planning Projects submitted. An additional $3 million will fund an emergency set-aside account.

Table 1 Drinking Water TABLE State1 Revolving Fund CY2020 Intended Use Plan DRINKING WATER STATE REVOLVING FUND Calendar Year 2020 DWSRF Intended Use Plan

NEW PROJECTS

Rating Applicant SRF ID Project Project Cost Rating Applicant SRF ID Project Project Cost 538.0 * WEST BOYLSTON WATER DISTRICT (PF)

6654 Manganese Removal Treatment at Oakdale Well

535.0

6658 Lead Service Line Replacement Program - Phase II

NEW BEDFORD (PF)

2020 IUP Cost

$5,100,000

$15,400,000

$7,500,000

530.0 * AYER (H)(PF)

6635 Spectacle Pond Wellfield PFAS Treatment

$5,734,000

528.0

6716 Notown/Fallbrook WTP Upgrades

$6,557,600

525.0 * BLACKSTONE (PF)

6686 Blackstone Groundwater Treatment

$5,000,000

524.0 * EASTHAM (PF)

6661 Eastham Water System - Phase 2C

$13,561,401

517.0

DRACUT WATER SUPPLY DISTRICT (H)(PF)

6659 Water System Improvements

$17,152,000

$15,000,000

514.0

LOWELL (H)(PF)

6677 Lead Service Replacement Project

$3,930,929

449.0

NEW BEDFORD (PF)

4613 Water Treatment Plant Upgrades - Phase II

$15,250,000

$7,500,000

441.0

BROCKTON (H)(PF)

6689 Transmission Main Valve Replacement Project Ph. II

$2,000,000

439.0

SPRINGFIELD WATER AND SEWER COMMISSION (PF)

6649 Clearwell and Backwash Pump Station Replacement

$21,750,000

$15,000,000

423.0

NEWBURYPORT

6720 Newburyport WTP Transmission Main

$7,840,000

421.0

TRI TOWN WATER BOARD

6705 Tri-Town Regional Water Treatment Plant

$70,100,000

$13,000,000

LEOMINSTER (PF)

410.0 * DUDLEY (PF)

4604 Dudley Drinking Water System Improvements Project

$5,225,000

405.0 * EAST BROOKFIELD (PF)

6717 Water Main Replacement and Wellhouse Upgrades

$2,790,000

321.0 # CENTERVILLE-OSTERVILLEMARSTONS MILLS FIRE DISTRICT (H)(PF)

6687 Manganese and Iron Removal for Hayden Wells

315.0 * DEERFIELD FIRE DISTRICT (PF)

4623 Greenfield Rd. Water Main Replacement Project

$940,000

230.0

LOWELL (H)(PF)

6665 Transmission Main Connection

$4,927,500

228.0

LAWRENCE (H)(PF)

6641 Water Treatment Plant & Source Improvements

$4,161,417

OUTLOOK” $16,000,000

25 $7,000,000

$3,448,085

MAY, 2020 “BUY FROM THE ADVERTISERS CONSTRUCTION 228.0 MASSACHUSETTS WATER 6691 Northern Intermediate High IN Section 89 Replacement RESOURCES AUTHORITY 222.0

FALL RIVER (H)(PF)

6696 Water Main Rehabilitation - Phase 20

continued on page 27

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421.0

TRI TOWN WATER BOARD

6705 Tri-Town Regional Water Treatment Plant

410.0 * DUDLEY (PF) 405.0 * EAST BROOKFIELD (PF) DEP/SRF continued from page 25

$70,100,000

$13,000,000

4604 Dudley Drinking Water System Improvements Project

$5,225,000

6717 Water Main Replacement and Wellhouse Upgrades

$2,790,000

321.0 # CENTERVILLE-OSTERVILLEMARSTONS MILLS FIRE DISTRICT (H)(PF)

6687 Manganese and Iron Removal for Hayden Wells

315.0 * DEERFIELD FIRE DISTRICT 4623 Greenfield Rd. Water Main Replacement Project $940,000 Rating (PF) Applicant SRF ID Project Project Cost

2020 $940,000 IUP Cost

230.0

LOWELL (H)(PF)

6665 Transmission Main Connection

$4,927,500

228.0

LAWRENCE (H)(PF)

6641 Water Treatment Plant & Source Improvements

$4,161,417

228.0

MASSACHUSETTS WATER RESOURCES AUTHORITY

6691 Northern Intermediate High Section 89 Replacement

$16,000,000

$7,000,000

222.0

FALL RIVER (H)(PF)

6696 Water Main Rehabilitation - Phase 20

$3,448,085

222.0

HOLYOKE (PF)

6662 Phase 1 Water Main Replacement Project

$1,845,000

$228,712,932 $228,712,932

$138,060,932 $138,060,932

214.0 *# MEDWAY (H)

NEW PROJECTS (cont.)

6728 Holliston and Brentwood Water Mains

TOTAL OFOF NEW PROJECTS TOTAL NEW PROJECTS

(Count: (Count: 21)

21)

(Average Rating: 399.09) (Average Rating: 399.09)

MassDEP PRIORITY PROJECTS

MassDEP PRIORITY PROJECTS * - Small System

(H)Applicant - Housing Choice Communities Applicant SRF ID ID ProjectProject SRF (PF) - Disadvantaged Community (RE)EMERGENCY - Potential Renewable Energy Projects SRF SET-A2978 # SIDE - Dropped by Applicant

$3,000,000

TOTAL OF MassDEP PRIORITY PROJECTS (Count: 1)

Project Cost Project Cost

TOTAL OF MassDEP PRIORITY PROJECTS 3 (Count: 1)

$3,000,000

IUP Cost 2020 2020 IUP Cost $3,000,000 $3,000,000

$3,000,000 $3,000,000 continued on page 29

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS Applicant

SRF ID Project

Project Cost

s Put ou m e t arts Extensive Inventory t f s of K syes and P en

4406 Commonwealth Ave Pump Station Redundancy

$6,879,500

$1,000,000

MASSACHUSETTS WATER RESOURCES AUTHORITY

4564 Weston Aqueduct Supply Main Rehabilitation

$19,021,535

$1,000,000

MASSACHUSETTS WATER RESOURCES AUTHORITY

4408 Connect Mains Rehab. of Sections 23, 24, and 47

$14,322,000

$1,000,000

MASSACHUSETTS WATER RESOURCES AUTHORITY

4119 SEH Redundancy and Storage

$49,297,289

$5,000,000

PEABODY (PF)

4592 Peabody Water Transmission Main and Pump Station

$9,285,570

$4,285,570

PEABODY (PF)

4593 Winoma & Coolidge WTP Improvements

$22,156,875

$10,714,430

•

s ireedy Hydrants

TOTAL OF PLANNING PROJECTS

2020 IUP Cost

6681 Wells Treatment Pilots, Conceptual Plans, Layouts

$650,000

6680 New Well Exploration Program

$555,000

$50,000

6709 Neponset WTF PFAS Treatment Study

•

CANTON (H)

Project Cost

$23,000,000

$400,000

mainta i n g

CANTON (H)

BARNSTABLE (H)

$120,962,769

$400,000

Golf Course Dr a i n a ge &

BARNSTABLE (H)

6667 Water System Master Plan

ut d orworks Brass

ANDOVER (H)

SRF ID Project

For d W ate

Applicant

“PIPE”... it’s our middle name

the l e a

PLANNING PROJECTS

get

(Count: 6)

•

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS

Complete Line

• FIx wa s 24 Hour ter n l o r Rep t air Pip rEErosion Con

MASSACHUSETTS WATER RESOURCES AUTHORITY

2020 IUP Cost

6734 Pecunit WTF PFAS Treatment Planning and Design

1-855-GETPIPe

www.putnampipe.com $75,000 $75,000 Hopkinton • Taunton $1,730,000

$1,730,000

(Count: 5)

MAY, 2020

TOTAL OF INTENDED USE PLAN IN CONSTRUCTION OUTLOOK” $354,405,701 “BUY FROM THE ADVERTISERS

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MassDEP PRIORITY PROJECTS EMERGENCY SRF SET-A2978 SIDE Applicant SRF ID Project TOTAL OF MassDEP PRIORITY PROJECTS EMERGENCY SRF SET-ADEP/SRF continued from page2978 27 (Count: 1) SIDE

$3,000,000 Project Cost $3,000,000 $3,000,000

TOTAL OF MassDEP PRIORITY PROJECTS MULTI-YEAR MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSCARRYOVER (Count: 1) Applicant SRF Applicant SRF ID ID Project Project

2020 IUP Cost $3,000,000 $3,000,000 $3,000,000

AND STATUTORY PROJECTS $3,000,000

Project Cost Project Cost

MULTI-YEAR CARRYOVER AND STATUTORY4406 PROJECTS MASSACHUSETTS WATER Commonwealth Ave Pump Station Redundancy RESOURCES AUTHORITY Applicant SRF ID Project

PLANNING PROJECTS

6667 Water System Master Plan SRF ID Project SRF ID Project 6681 Wells Treatment Pilots, Conceptual Plans, Layouts 6667 Water System Master Plan 6680 New Well Exploration Program 6681 Wells Treatment Pilots, Conceptual Plans, Layouts 6709 Neponset WTF PFAS Treatment Study 6680 New Well Exploration Program 6734 Pecunit WTF PFAS Treatment Planning and Design 6709 Neponset WTF PFAS Treatment Study 6734 Pecunit WTF PFAS Treatment Planning and Design

TOTAL OF PLANNING PROJECTS (Count: 5) TOTAL OF INTENDED USE PLAN (Count: 5)

TOTAL OF DRAFT INTENDED USE PLAN TOTAL OF INTENDED USE PLAN

2020 IUP Cost IUP Cost 2020

$6,879,500

MASSACHUSETTS WATER 4564 Weston Aqueduct Supply Main Rehabilitation MASSACHUSETTS WATER 4406 Commonwealth Ave Pump Station Redundancy RESOURCES AUTHORITY RESOURCES AUTHORITY MASSACHUSETTS WATER 4408 Connect Mains Rehab. of Sections 23, 24, and 47 MASSACHUSETTS WATER 4564 Weston Aqueduct Supply Main Rehabilitation RESOURCES AUTHORITY RESOURCES AUTHORITY MASSACHUSETTS WATER 4119 SEH Redundancy and Storage MASSACHUSETTS WATER 4408 Connect Mains Rehab. of Sections 23, 24, and 47 RESOURCES AUTHORITY RESOURCES AUTHORITY PEABODY (PF) 4592 Peabody Water Transmission Main and Pump Station MASSACHUSETTS WATER 4119 SEH Redundancy and Storage RESOURCES AUTHORITY PEABODY (PF) 4593 Winoma & Coolidge WTP Improvements PEABODY (PF) 4592 Peabody Water Transmission Main and Pump Station TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS PEABODY 4593AND Winoma & Coolidge WTP Improvements TOTAL OF (PF) MULTI-YEAR CARRYOVER STATUTORY PROJECTS (Count: 6) (Count: 6) TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS PLANNING PROJECTS (Count: 6) Applicant SRF ID Project PLANNING PROJECTS ANDOVER (H) Applicant Applicant BARNSTABLE (H) ANDOVER (H) BARNSTABLE (H) BARNSTABLE (H) CANTON (H) BARNSTABLE (H) CANTON (H) CANTON (H) TOTAL OF PLANNING PROJECTS CANTON (H) (Count: 5) TOTAL OF PLANNING PROJECTS

$3,000,000

$1,000,000

Project Cost

2020 IUP Cost

$19,021,535 $6,879,500

$1,000,000 $1,000,000

$14,322,000 $19,021,535

$1,000,000 $1,000,000

$49,297,289 $14,322,000

$5,000,000 $1,000,000

$9,285,570 $49,297,289

$4,285,570 $5,000,000

$22,156,875 $9,285,570 $120,962,769 $22,156,875 $120,962,769

$10,714,430 $4,285,570 $23,000,000 $10,714,430 $23,000,000

$120,962,769

$23,000,000

Project Cost $400,000 Project Cost Project Cost $650,000 $400,000 $555,000 $650,000 $50,000 $555,000 $75,000 $50,000 $1,730,000 $75,000 $1,730,000

2020 IUP Cost $400,000 2020 IUP Cost

$1,730,000

$354,405,701

2020 IUP Cost $650,000 $400,000 $555,000 $650,000 $50,000 $555,000 $75,000 $50,000 $1,730,000 $75,000 $1,730,000

$1,730,000

$165,790,932

$354,405,701 $354,405,701 $165,790,932 $165,790,932

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Post-Coronavirus Contingency Planning for Contractors, Owners One would be hard-pressed to find any construction industry player that hasn't been affected by the COVID-19 pandemic. While a few U.S. jurisdictions have banned construction work altogether, many more have limited which projects can move forward.

owever, according to John Robbins, managing director and USA and North America head of real estate for Turner & Townsend, developers and contractors that find their project pipelines in a stall pattern still have plenty of planning to do for the reboot of work. Some experts say this could come as soon as the next few weeks while others say it might be in a few months. One thing is certain: When construction comes back to full strength, U.S. contractors will face some new short-term and long-term realities. First, Robbins said, when contractors are cleared to begin work, they could find themselves waiting in a long line for building inspections; materials, tools and equipment; and skilled trade workers and other labor, particularly as some seek to make up for schedule delays. "It will be a strategic balancing act of demand with resources and available materials," Robbins said. He added that city, state and municipal agencies will have to deliver "high levels of cooperation" to maintain a quick turnaround of permits and other approvals. Robbins also said that owners, consultants and contractors should work together to ensure a smooth reboot. That includes exploring funding options for cash-strapped contractors and settling matters related to coronavirus-related costs. In the long term, the stay-at-home orders issued in most states have forced owners and contractors into what Robbins called the “great remote working experiment," which could usher in a more permanent digital transformation. "I believe we will see the future of project and program management digital innovation now come to the fore," he said. Also, Robbins said, now that social distancing has become a permanent part of the construction

MAY, 2020

industry lexicon, techniques that allow for a reduced level of human interaction like modular construction, remote and robotic drone inspections, autonomous rovers, 360-degree cameras and artificial intelligence may become more popular. "[This technology] is not only a good idea, but [it is] perhaps a necessary one," he said.

What's Next? Robbins offered other ways that construction will look different once the coronavirus crisis passes. In order to be ready for these changes, he said owners might want to: • Take another look at each project's material specifications and make sure they include options for locally sourced or readily available products in order to provide enhanced levels of cost and schedule controls. •

Review project delivery methods. Consider a construction management at risk (CMAR) model and, engage a contractor using a "fee only" bid while construction continued on page 33

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Post-Coronavirus continued from page 31 documents are still in production. With the design team and cost manager acting as an integrated project team, look for long-lead items that can be sourced early to avoid future schedule delays. • Perform a quantitative risk analysis of each project to gain a thorough understanding of potential exposures to the cost and schedule. During the bidding process, contractors should expect that some owners and developers will: • Decide whether to pursue competitive bids in an environment of tight contractor and material supply. • Extend the length of the procurement period,

potentially impacting the schedule. • Consider rewriting the Request for Proposal (RFP) to include multiple shifts, overtime or other labor-acceleration mechanisms that will help make up for any delays incurred during planning and procurement and mitigate potential future delays. Using multiple shifts will also assist contractors in adhering to social distancing requirements by reducing the density of workers on site. • Update risk analyses and include those potential impacts in their projections. Construction companies, suppliers, owners and developers will need to stay in touch with each other during downtime as these decisions could change one or more elements of the project, he added. The types of projects that will be in demand will also be slightly different from pre-coronavirus days, according to RCLCO Director of Strategic Planning Charles Hewlett. He told Construction Dive that demand for distribution and warehouse space may likely increase as U.S. companies favor higher inventory levels and emphasize supply chain resiliency over efficiency. Market reports have calculated that a 5% increase in total business inventories would translate into the need for an additional 500 million to 700 million square feet of industrial space. “In the long run, expect more manufacturing facilities to locate in North America to ensure supply and access to markets during episodes like this one, a boon to economic growth and industrial and logistics facilities in the U.S. and Mexico,” he said. Written by Kim Slowey. Re printed from Construction Dive. n

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t’s predictable, and a mistake. Faced with stimulus response, it is in the best interests of taxpayers of Cape Cod to move aggressively to aureasonable concerns about the impact of thorize the design, engineering, and construction the pandemic on municipal budgets, towns of as many water quality and wastewater projects are reviewing spending plans for next year. as possible this spring. Doing so increases the They should. That said, towns should resist the chance to take advantage of future infrastructure calls to delay moving forward with wastewater funding and lowering the cost of clean water for and other water quality projects. Cape taxpayers. There are two important reasons towns need The second reason to move forward is to reto move forward with wastewater water quality member that things will get better. For Cape Cod projects that have emerged as consensus priorito recover economically, clean water is as essenties after years of conversation. The first reason tial to our long-term well-being as it was before for moving forward is to not repeat a mistake. After the pandemic hit. While it is hard to keep the longthe Great Recession in 2007 and 2008 the federal term in mind when most of us want to do is get government passed historic stimulus packages back to work, see our friends and family and no that provided hundreds of millions of dollars for longer have to worry about COVID-19, it is still imshovel ready infrastructure projects, like wastewaportant to, as we always have, look to the future. ter treatment and sewer construction, to support job creation. If you lived on the Cape in those days, I look forward to a future on Cape Cod you may have not been aware of this federal fundwith clean water. The pathway to that future needs to be put in place now. n ing, because almost none of it came to Cape Cod. The Cape missed out because we spent so much time avoiding doing what we needed to do on wastewater that the Cape didn’t Call Your Nearest GENALCO Warehouse have projects ready to go. The For These Supplies HYDRAULIC GRADE 8 money went to other communiSTROBE LIGHTS OIL NUTS & BOLTS WEATHER CAPS ties and Cape residents were left AIR CLEANERS holding the bill. GREASE FITTINGS BUCKET TEETH It is now abundantly clear HYDRAULIC HOSE BUCKET LIPS that Congress will again use inEQUIPMENT PAINT BUCKETS frastructure stimulus as a tool to help the economy recover. The CUTTING EDGES CHAIN terms and conditions are not yet SLINGS BACKUP BELLS determined, but it is a safe bet AIR, OIL & FUEL AND ALARMS FILTERS EXTREME ROTARY that there will be an emphasis PRESSURE GREASE ASPHALT CUTTERS on funding projects that are deGENALCO inc. 1-877-436-2526 70 years of service to New England Industry signed and ready to go in order to www.genalco.com get people back to work quickly. Needham Heights, MA Springfield, MA West Haven, CT Warwick, RI FAX 781-449-6643 FAX 413-781-3771 FAX 203-934-2580 FAX 401-736-9769 So given the projected federal

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Delivering Value On A Daily Basis - The Shea Way 38

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MAY, 2020

A TRADITION OF STRENGTH This year marks Shea Concrete Products 70th Anniversary. With it brings not only time for celebration and camaraderie, but also time for reflection and remembering the company’s humble beginnings starting in 1949. What began as a vision 70 years ago has grown to become one of New England’s largest and most reputable precast concrete manufacturers. The company has weathered many economic storms in keeping to a disciplined set of core values and principles. We now operate out of four manufacturing facilities, produce a broad product line, and recently constructed a new headquarters facility in Amesbury, Massachusetts that is in the final stages of completion and will submit for a LEED Certification. The story starts in Wilmington, MA, in the backyard of the family’s home in 1949. It is a story much like many other family owned precast concrete companies across the country, made

MAY, 2020

possible thanks to hard work, daily sacrifice, and tough decisions that have transformed it from a small single location operation into a top producer in New England. We like to refer to ourselves as New England’s Premier Precaster. We work hard to make sure we are an industry leader and also focus on making our industry better and sharing our knowledge to help all involved within it grow. Shea Concrete Products (then known as E.F. Shea) was founded by Ernie Shea as a concrete block wholesaler in Wilmington, Massachusetts. He remained in this business until the 1960s when a customer suggested he start manufacturing precast concrete septic tanks. At the time, precast concrete was still establishing its place in the building products industry, but Ernie saw the potential so he purchased the company’s first form, a 750-gallon septic tank, from Norwalk Precast Molds.

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continued on page 40

Shea Concrete continued from page 39

asting the tanks back then was nothing like what you’ll find at precast plants today. The “plant” was the backyard of the family’s home, and production was done outdoors without the assistance of batch plants, automated mixers, gantry cranes, or any of the other machinery in modern plants. Instead, employees hand-batched concrete with a quarter-yard mixer and shovels. Once the concrete was batched, they would run wheelbarrows up wooden planks and dump the concrete into the form. Each tank took one yard, meaning four batches of concrete. When Ed Shea, Ernie’s son, thinks back to what it was like working for his father early on, his tone is a little nostalgic, but also very serious. He says it was awfully hard at the beginning with everything being done by hand and exposed to the environment. It was hard work, but he was young – it was just part of the deal back then. The work was grueling, but entering the precast business would prove to be a wise move for the company. Ed, with his wife Judi, continue to lead the company and have transitioned their legacies to the families third generation including their four daughters and three sons-in-law. E.F. Shea had just a handful of employees in the 1960s, including a high school kid named Bob Flores, who showed up at the Shea’s house in 1967 looking for a summer job. Ernie very matter-of-factly told Bob he’d hire him, but that he “wouldn’t last a week.” He did last, though, and by the end of the summer he asked if he could come back the next summer. Bob recalls Ernie looking at him and saying, “Nobody has ever come back.” Bob remembers that to this day and remains very happy with his decision to come back that next summer! A slight grin comes to Bob’s face when he thinks about wheelbarrows of concrete occasionally tipping as they ran up the planks or pouring 10 yards a day with only the quarter-yard mixer. As a distant memory, he finds humor in how hard simply pouring a form was. He recalls being pretty much like the Flintstones. They poured concrete in blizzards and he remembers covering everything with tarps and having portable heaters that would run all night to make sure the quality was never compromised. Bob has now racked up over 50 years with the company, a feat that stands in stark contrast to today’s employment landscape. He was there when Ed and Judi’s daughters were first born and has watched them grow into adults and influential members of the company, and has always been Ed’s go-to guy. Ed refers to Bob as a key player of the team and indicates that it’s unheard of to have someone work for you for 50 years. Ed does not recall ever having a misunderstanding with Bob. In fact they would sit down for a meeting and both have the same notes before even getting started. To this day, Bob continues to be an integral part of the leadership team! Ernie was a conservative man and cautious about growing the company, so E.F. Shea was successful but remained small. When Ed and Judi took over, they

New Headquarters Facility (Amesbury, MA)

A Daily Reminder of How We Started brought new ideas and business approaches. Ed just did things differently than his father, and took the company in a different direction. Ed is the definition of a “people person,” and he has used his interpersonal skills and innate business savvy to establish the Shea Concrete Products brand. When Ed took over daily operation and leadership responsibilities in 1975, the transition to Shea Concrete Products occurred. E.F Shea will always remain with the company, but it was at that time when change started to occur. His persistent optimism and unconditional honesty have become synonymous with the company. Ed is characterized as hard working, caring, honest, and very well respected throughout the industry, especially by his family at Shea Concrete Products. Never one to shy away from a challenge, Ed expanded the scope and reach of Shea Concrete Products exponentially through acquisitions that brought new product lines, customer bases, equipment, and locations. Thanks to the relationships he developed with fellow precasters in the region, some competitors came to him when they were selling, because they knew he would take care of their customers and employees. In September 1999, Ed

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MAY, 2020

Supporting New England Since 1949 - We are "Boston Strong" and Judi put up everything they owned as collateral to make their largest acquisition. Two facilities were purchased from then New England Precast in Amesbury, MA and Nottingham, NH. At the time of the acquisition, all New England Precast employees were provided with their jobs and so the phrase “The Shea Way” was born. It is important to note that things have not always been smooth sailing for the company and market volatility and recessions have been challenging to navigate. When the recessions hit, Shea Concrete Products braced for the impact and was prepared to weather the storms. It leaned out its staff and even temporarily closed two locations at one time. Despite challenging times, the company has always found ways to grow and succeed in the face of adversity. It is echoed that knowing costs is an important part of remaining a healthy and productive company. Shea Concrete Products has always stayed true to its economic expectations and made good decisions to come out of the recent recessions stronger than ever. The past recessions have been good reminders to stay close to the mission and core values the company is based upon. With it now 10 years past the last financial crisis the company remains confident in the New England market and also focused on a strong balance sheet and reserves as volatility and market uncertainty can currently be felt with the COVID-19 situation. The company is well positioned to handle what the future will hold and continues to invest in future opportunities. Time and time again, Ed and Judi’s decisions proved to be the right ones for the company and its employees. Thanks to that, the company that had just one delivery truck when they took over now has over 20. The employee base has grown from six to approximately 120 and it now has four plants with the most recent acquisition of Utility Precast in 2010 located in Rochester, MA. The Rochester facility continued to diversify the company’s product line and brought it into utility work. With this facilities purchase the decision was made to purchase an additional 20 forms for utility products to ensure it was a one-stop-shop for customers.

MAY, 2020

As a result, the plant has continued to grow and continues achieving record years over all measured metrics. While Ernie and Ed have led the charge for the company over the years, the employees have always been its secret weapon. In addition to Bob, the company has many other long-term employees, and most important among those are the growing cast of employees Ed more affectionately refers to as family. Since they were old enough, Ed’s four daughters – Brenda, Kathleen, Mary, and Nancy – have proudly worked for the company alongside their mother, Judi. Today, Brenda is responsible for Human Resources, as well as the company Treasurer. Kathleen is the company Vice President and responsible for Accounts Receivable. Mary is responsible for Accounts Payable, and Nancy assists in the Accounting Department. Ed and Judi Shea are very proud to have their daughters working in the business as well as their sons-in-law and grandchildren active as well! Ed and Judi’s three sons-in-law have all come to play important roles in the company. Greg Stratis, married to Brenda, is now the company President. Greg took over company leadership in November 2016 after working sideby-side with Ed for years. Mary’s husband, Tony DiRocco, is the Head of Maintenance and supports all company manufacturing locations. Dave DeRose, Nancy’s husband, is Production Manager at the Amesbury location and also provides production support for the other three facilities. Greg, the first son-in-law to join the company, was working for defense contractor Raytheon when Ed offered him the opportunity. At first he wasn’t sure, but the turning point came when he was offered a new position at Raytheon. Ed remembers telling Greg that, “If you’re going to come work for me, you’re going to have to bend wire and rebar and learn the business from the bottom up,” and that mentality continues to serve the company well. Today, Shea Concrete Products is a very different company than the one Ernie started in his backyard. Ed indicates that everything is more complicated today, referring to the broader dimension of roles a precast plant plays, including sales, inventory tracking, plant certification and quality assurance programs, safety programs, marketing, and overall industry engagement. One thing remains the same – change is inevitable. Shea Concrete Products has chosen to embrace the constant change and grow with it. Ed spent a considerable amount of time teaching Greg the ropes of running a precast facility and the inner workings of the company. Just as Ed wasn’t afraid to take the company to new places, Greg is now ensuring it remains ahead of the curve for the future. Greg points out that success today requires a diverse product offering, aggressive marketing and sales efforts, an increased focus on automation both with internal processes and on the manufacturing floor, and keeping up with technology. Greg believes that an operation with only one, two, or three product lines may struggle in the current changing continued on page 42

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Shea Concrete continued from page 41 economy and competitive environment. Shea Concrete Products product line is vast. The main reason for this is to service customers in the best way possible. Many customers love the idea that they can call or show up at the company’s facilities and get what they need immediately or later that day on a special delivery. Offering customers high-quality products with exceptional customer service has always and will always serve the company well. Like many precast concrete companies, Shea Concrete Products has always succeeded through word of mouth and reputation, but it now has a sales force actively seeking projects to bid and a marketing strategy that keeps up with a fast paced industry. Greg has also made sure Shea Concrete Products has a strong online presence, and that its plants participate within the NPCA Plant Certification Program. He has served as President of the Northeast Precast Concrete Association, has served as Chairman of the National Precast Concrete Association, and has been an active board member of the NPCA since 2011. Greg recently celebrated his 27th Anniversary with the company and continues to lead the company by example and commitment to the right mix of old-fashioned family values, unmatched customer service, and first-rate products. Greg is a firm believer that with so many competitive materials out there, you have to get specified on design plans. He feels it is something the precast industry has not done well with, because it’s not in precasters’ nature to market and get in front of design engineers and specifiers. Utilizing the power of the internet is also very important as the majority of the company’s back-office and production floor is automated with processes in-place to drive efficiency and profitability. Shea Concrete Products specifiers, partners, and customers now expect the company to be automated and well represented on the internet and social media platforms. With customer service as one of the main pillars, the company makes it a priority to be well represented and provide value through its website and other internet-based offerings. As Ed Shea and Bob Flores near retirement, a calculated shift of passing the torch continues to take place. Ed and Bob remain very active in the business and both love their work and the company. Ed, knowing he has put the company into trustworthy and hard-working hands has not been shy about taking welldeserved leaves to enjoy time away with his wife, Judi. After all, he and Judi grew the company the right way, without cutting corners and with the utmost honesty and integrity. Ed has no complaints or regrets as to how the company has grown and where it is headed. He is proud of what has been accomplished and knows the company will continue to be an example for others to follow moving forward. The current leadership team is not afraid to continue

Taking "Pride In Our Ride" Since 1949 making investments back into the company. Greg believes you have to be willing to invest in something you believe in while making sure to keep money in reserve so the company is never over-leveraged. Investment back into the company can be seen by keeping equipment up to date and in the new headquarters facility, which bring benefits to the company employees as well as customers and industry partners. The company remains focused on sustainability and now powers its Amesbury facility 100% with solar-power generated electricity from two solar arrays located on the production facilities roof. As this article goes to print, work is nearing completion on a 20,000SF production facility addition in Amesbury, MA. This will allow the Amesbury, MA location to be more efficient and provide an opportunity to increase production lines and product offerings. Shea Concrete Products goal is to be nimble enough to adapt to whatever the market is demanding, diverse enough to meet any need, yet small enough to always make customer service a top priority. The company is always looking for different options for products and add-on services like providing vacuum testing, which has proven to be well received and needed by the industry. Greg remains focused on listening to, and always taking care of customers. He believes that if you get too carried away you can lose that. Having a balanced approach and staying committed to customers is a must. So back to “The Shea Way:” Hard work, honesty and ambition are the trademarks of Shea Concrete Products success story. At Shea Concrete Products you will find a proud, fourth-generation precast concrete company with four striving locations, a diverse product line for its customers, and a bright future ahead.

UCANE is proud to count Shea Concrete Products as a member and wishes the Shea family many more years of growth and success. 42

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MAY, 2020

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You’ve Been Approved for a Paycheck Protection Program Loan. Now What? The Paycheck Protection Program, enacted under the Coronavirus Aid, Relief and Economic Security Act (CARES Act), is an extension of the Small Business Administration (SBA) 7(a) loan program, allowing financial institutions to provide federally backed, forgivable loans to eligible businesses. The Paycheck Protection Program and loan forgiveness are intended to provide economic relief to small businesses adversely impacted by the COVID-19 pandemic.

Paycheck Protection Program Highlights: At least 75 percent of the PPP loan is supposed to be used to fund payroll and employee benefits costs: 1. Payroll costs, including benefits; • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee). • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit. • State and local taxes assessed on compensation. • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee. 2. The remaining 25 percent can be spent on: • Interest on mortgage obligations, incurred before February 15, 2020. • Rent, under lease agreements in force before February 15, 2020. • Utilities, for which service began before February 15, 2020. The maximum amount eligible employers can borrow is 250 percent (or 2.5 times) the borrower’s average monthly payroll cost in 2019, up to a maximum of $10 million. • If you are a seasonal employer, the lender will

MAY, 2020

use a 12-week period beginning either February 15, 2019 or March 1, 2019 and ending June 30, 2019. • If your business did not exist before June 30, 2019, the lender will look at your costs in January and February 2020. The SBA wants borrowers to certify that the loan is “necessary” to support ongoing operations. • Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should carefully review the required certification that “current economic uncertainty” makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support continued on page 47

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MAY, 2020

Paycheck Protection continued from page 45 their ongoing operations in a manner that is not significantly detrimental to the business. • Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of the guidance issued on April 23, 2020 and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. As loans under the Paycheck Protection Program are distributed, the eight-week “covered period” is beginning for many small businesses. The “covered period” begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than 10 calendar days from the date of loan approval. Although the SBA is expected to publish additional guidance on loan forgiveness, here is what we know so far: • The CARES Act requires the SBA to issue guidance on the loan-forgiveness provisions of the PPP within 30 days from enactment, or April 26, 2020. • The CARES Act states that the forgiveness of debt under the PPP program will not be tax-

MAY, 2020

able to the borrower for federal income tax purposes (but not necessarily for state and local income tax purposes). • The CARES Act itself does not require any specific allocation of proceeds. However, the SBA’s Interim Rule (and all subsequent SBA guidance) requires borrowers to spend at least 75 percent of the loan proceeds on “payroll costs,” with any balance going towards covered mortgage interest payments, covered lease payments or covered utilities. • The borrower is responsible for documenting use of proceeds for payroll costs in order to determine the amount of forgiveness. • If a borrower uses loan proceeds for unauthorized purposes, the borrower will be required to repay those amounts and could be subject to additional charges from the SBA for knowing violations or misappropriations. Below are some of the many questions AIM members have been asking: What expenses may be paid from the PPP loan amount? The loan may fund “payroll costs,” including the employer cost of group health insurance and retirecontinued on page 49

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Paycheck Protection continued from page 47 ment; mortgage interest payments (but not prepayments or principal payments); rent payments; utility payments; interest payments on any other debt obligations that were incurred before February 15, 2020; and refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020. How are full-time equivalents (FTEs) computed? The CARES Act Sections 1102 and 1106 do not define FTEs. Guidance has not yet been provided with respect to defining an FTE. CARES Act Section 2301(c)(3), which pertains to the employee retention credits, defines a full-time person by referencing Internal Revenue Code, Section 4980H. A full-time employee is an individual who works an average of at least 30 hours per week. A fulltime equivalent employee is determined by adding the hours of part-time employees on a monthly basis and dividing by 120 [IRC Section 4980H(c)(2)(E)]. How do you determine loan forgiveness? The maximum forgiveness amount, which must be substantiated by documentation, is the sum of expenses you incur or pay during the eight-week period following loan origination (when the company receives its first disbursement of PPP funds) to cover payroll costs

and mortgage interest, rent and utilities payments; provided, however, that not more than 25 percent of the forgiven amount may be for non-payroll costs. How do you calculate loan forgiveness? Once your business has determined the payments are eligible for forgiveness, you will need to complete two additional calculations to determine if such amount is ultimately forgivable. Both calculations are based on your payroll: the first is a measurement of your number of Full Time Equivalents (FTEs), and the second is a measurement of your actual salary expense. If a business reduces its full-time employees during the “covered period” (defined as the eight-week period after the company receives its first disbursement of PPP funds), the forgiveness amount is reduced by a ratio defined as: • The average number of FTEs during the covered period (numerator) divided by the average number of FTEs during the base period (denominator). • For the purposes of the calculation, the current thinking is that one FTE equals one employee that worked at least 30 hours in a week. There are three different options to determine the base period, and borrowers can select the one most continued on page 51

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Paycheck Protection continued from page 49 favorable to them: • Using 2019 Information –the average number of FTEs per month from February 15, 2019 through June 30, 2019 • Using 2020 Information –the average number of FTEs per month from January 1, 2020 to February 29, 2020 • Seasonal Businesses –the average number of FTEs per month from February 15, 2019 through June 30, 2019. The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value? No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including: • employer contributions to defined-benefit or defined-contribution retirement plans. • payment for the provision of employee benefits consisting of group-health care coverage, including insurance premiums. • payment of state and local taxes assessed on compensation of employee. What happens if I need to reduce the pay for some of my employees? To ensure that companies were hiring back employees at a wage rate that was similar to pre-Covid-19 levels, the amount of loan forgiveness is further reduced if employees who made less than $100,000 in annualized wages in 2019 receive a reduction in pay of more than 25 percent during the “covered period.” The SBA will issue additional guidance on the loan-forgiveness element of the PPP, and specific guidance on this provision is warranted to determine how this dollar-for-dollar calculation will work in practice.

As a result of Governor Baker’s Stay-at-Home Advisory, I furloughed my employees. Will the amount of my loan forgiveness be reduced? Businesses that re-hire laid off workers by June 30, 2020 and restore any reductions in employment that occurred between Feb. 15, 2020 and April 26, 2020 will not be penalized and are still entitled to full forgiveness. This is a simple quantitative test—the SBA will look at the number of employees on February 15, on a full time equivalent (FTE) basis and compare that number to the number of full-time equivalent employees at June 30, 2020 continued on page 53

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Paycheck Protection continued from page 51 There is no requirement that the borrower rehire the same employees; restoring the number of fulltime equivalent employees is sufficient. How do employers persuade employees making more money on unemployment to return to work and make less money? Because of the enhanced unemployment provisions in the CARES Act, many employees are making more money collecting Unemployment Insurance (UI) benefits, than they were making pre-pandemic. As a result, many employers are considering providing furloughed employees a bonus, increasing salary levels, offering extra vacation time or flexible work schedules to incentivize them to forego their unemployment benefits and return to work. It is unclear, however, whether these additional payments will be considered payroll costs eligible for forgiveness. What happens to the remainder of the loan that is not forgiven and what are the key loan terms? The loan has a maturity of two years and an interest rate of 1 percent. There will be no prepayment penalty, meaning you will be able to repay the loan at any time before the maturity date. There is no collateral or personal guarantee required. All loans will be processed by third-party lenders under delegated authority of the SBA, and the lenders are permitted to rely on the certifications of the borrowers in order to determine eligibility of the borrower and the use of loan proceeds. How do the retention credits interact with the PPP? The retention credit of CARES Act Section 2301 is not available if the taxpayer receives a covered SBA loan under SBA Section 7(a)(36) (i.e., a PPP loan). How does the deferral of payroll taxes provision of the CARES Act interact with the PPP? Employers that received a Paycheck Protection Program loan may not defer the deposit and payment of the employer’s share of Social Security tax that is otherwise due once the employer receives a decision from the lender that the loan was forgiven. The amount of the deposit and payment of the employer’s share of Social Security tax that was deferred through the date the PPP loan is forgiven continues to be deferred and will be due on the “applicable dates”: • On December 31, 2021, 50 percent of the deferred amount; and • On December 31, 2022, the remaining amount. Written by Beth Yohai. Reprinted from Associated Industries of Massachusetts (AIM). n MAY, 2020

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Voters Overwhelmingly Favor Investment in Water Infrastructure According to New Poll

Fifth Annual Value of Water Index finds 84 percent of voters want the federal government to invest in water infrastructure; infrastructure should be one of the top priorities for federal government action according to voters. WASHINGTON, DC (April 28, 2020) - A new poll by the Value of Water Campaign recently released shows that 84 percent of American voters want state and federal leaders to invest in water infrastructure. The near-unanimous support amid the COVID-19 pandemic reveals that voters value water and want elected officials to prioritize investing in infrastructure - specifically, drinking water and wastewater infrastructure. For the fifth year in a row, the Value of Water Campaign poll surveyed over 1,000 American voters for the annual Value of Water Index. The poll asked voters how the nation should solve infrastructural issues and which priorities it should meet. Support for water infrastructure investment cuts across demographic, political, and geographic divisions. Key poll findings include: • Eighty-four percent of Americans support (with 47 percent strongly supporting) increasing federal investment to rebuild the nation's water infrastructure. • Eighty percent say rebuilding America's infrastructure is extremely or very important. Americans support rebuilding the nation's infrastructure more than most other issues today, including reforming the healthcare system, expanding early childhood education, and ending the opioid crisis. It ranked similarly to strengthening the economy. • Seventy-three percent of Americans support investing in water infrastructure to increase resilience to climate change, even when told it could cost $1.27 trillion. • Seventy percent of Americans want the president and congress to develop a plan to rebuild water infrastructure. • More than three in four democrats (94 percent), republicans (77 percent), and independents (76 percent) broadly support increasing federal investment. Support also cuts across gender, age group and income. Dave Metz, partner and president of Fairbank, Maslin, Maullin, Metz, and Associates (FM3), who

MAY, 2020

helped to conduct the poll, said: "The COVID-19 crisis only sharpened public opinion about the need to keep people safe and healthy. Investments in water infrastructure that benefit public health are seen as critically important in this environment. The public also tends to see them as 'shovel-ready' investments that can create jobs and strengthen the economy." Lori Weigel, principal of New Bridge Strategy, who was the other partner on the poll, said: "In the face of COVID-19, the public is thinking hard about needs versus wants. Needs, such as food, shelter, and water, are perceived as fundamental and worth investing in right now. That perception is shared by people across ideological and geographic lines." Radhika Fox, CEO of the US Water Alliance and Director of the Value of Water Campaign, said: "Water utilities provide an essential service, protect public health, and help communities to thrive. These systems have operated continually for decades and need repairs. There is a huge gap between the investment our water systems need and what we actually spend each year, meanwhile the federal government's contribution to water infrastructure has plummeted for the last several decades. Investing in water is the smart thing to do for public health and for the economy. Voters are sending a clear message to state and federal leaders that investing in water must be a top priority." A bipartisan research team FM3 (D) and New Bridge Strategy (R) conducted the poll, seeking voters' opinions on the nation's water infrastructure. The team fielded the poll from March 7-18, during a time when the COVID-19 pandemic began to unfold in the United States and command public attention. For the complete poll results go to www.thevalueofwater.org. The Value of Water Campaign educates and inspires the nation about how water is essential, invaluable, and in need of investment. Spearheaded by top leaders in the water industry, the Value of Water Campaign is building public and political will for investment in America's water infrastructure. n

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Get to Know Your UCANE Contractor Members

Experts in Shoring Design and Installation NSI Contracting originated in 2014 in order to provide General Contractors and Project Owners with a one stop solution for both design and construction of earth support systems for deep or difficult excavations. Combining the talents of professional engineers with experienced heavy construction veterans, NSI brings decades of experienced foundation support talent to each project. Our long resume includes shoring systems for pump stations, deep foundations, jacking pits, large diameter tanks, and special structures. Temporary or permanent support systems for retaining walls, shoreline protection, dam repairs, and cofferdams are all in our wheelhouse. Each excavation challenge requires its own unique solution. We work with General Contractors and Owners both pre-bid and postbid to analyze boring logs, existing designs, and site restrictions. NSI shoring systems are custom for each project. NSI’s in-house engineers develop shoring and sheeting solutions based on both effectiveness and affordability, always considering other on-going site activities and contract schedules. We can provide cost estimates for the complete job whether it be our own custom and PE stamped design, or that of another designer. We can offer alternate designs and pricing if conditions warrant. NSI field crews have years of experience and maintain all necessary state and federal licenses. Safety is a key component of any NSI project and field personnel have 10-hour and 40-hour OSHA training, competent person certificates, and carry Red Cross First Aid and CPR cards.

Andy Bissonnette 6 Wright Avenue Merrimac, NH 03054 (603) 377-7437 (603) 429-1313 700 West Center Street, Suite 7 W. Bridgewater, MA 02379 (781) 381-7755 (508) 232-7780 email: info@NSI.com www.nsicontracting.com

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Untitled-6 1

3/7/2016 3:49:21 PM

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Kristin Erickson

Tonry Insurance Group, Inc.

COVID-19 Impact on Cyber Risk Imagine your company’s network as a sealed bubble as it once was a long time ago. Information leaks were rare and generally a result of one “traitor” and infiltrators were few and far between. Fast forward to the IoT (Internet of Things) Era and imagine all of the holes in that bubble that need to be constantly monitored and sealed. Leaks and infiltrations occur constantly and as a society we have built defenses. Still, the breaches happen and can be devastating.

ow, imagine that big sealed bubble bursting into many little bubbles caused by many more employees working remotely. The risk of a breach or cyber-attack is increased exponentially. How can you possibly implement and enforce the security measures necessary to protect your network and data knowing that your biggest risk is human error and, your humans are now out of site and earshot? Add to that the devious cyber criminals who are preying on the insecurity of your employees caused by COVID-19. On April 8, the U.S. Department of Homeland Security issued a warning that “a growing number of cyber criminals and other malicious groups online are exploiting the COVID-19 outbreak for their own personal gain. The techniques used by attackers prey on people’s appetite for information and curiosity towards the outbreak, with phishing emails and SMS messages using the virus as a lure to trick people into revealing credentials or downloading malicious software.” 1Recently, phishing email impersonating the CDC, WHO, and other health authorities presented links to information that trick users into downloading and running a malicious application while viewing a coronavirus map loaded from a legitimate online source. Training your employees to safely work remotely is almost as important as practicing social distancing. It may not save a human life but it can save your business. Establish an Incident Response Plan (IRP) to identify the response team, methods to identify and MAY, 2020

contain incidents, and procedures to eradicate the root cause of the attack. If you already have cyber liability coverage, look into the resources provided by your insurance carrier. Many carriers include access to preventative training with your annual premium. Take advantage of this valuable resource. Visit their websites, download the cyber risk information. Read it. Communicate it to your employees and enforce it the best you can. Then, know that if prevention fails, you have the response team and coverage in place to minimize the impact of a breach or cyber-attack. If you don’t have cyber liability coverage, please call your agent for quotes. The process of completing the application serves as a self-assessment bringing to your attention exposures that put your company continued on page 60

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

Insurance Perspective continued from page 59

1 https://www.cisa.gov/news/2020/04/08/uk-and-us-securityagencies-issue-covid-19-cyber-threat-update

at risk. Next, evaluate the quotes carefully. No two coverage forms are the same. Cyber insurance policies offer a wide range of both first party and third party coverages and can be tailor-made to fit your specific needs. Recent examples of hackers exploiting COVID-19 according to RISKIQ:

2 https://www.riskiq.com/blog/analyst/covid19-cybercrimeupdate/

4/16/20 Digital Exploitation Highlights

continued on page 61

Crushed Stone & State Specified Dense Graded Base Manufacturer & Installer of Bituminous Concrete Products:

•

Hackers are selling two critical vulnerabilities M.B.S. Construction Services/Paving for the video conferencing software Zoom that Holden Trap Rock Co. Berlin Stone Co. would allow someone to hack users and spy on 2077 N. Main Street 332 Sawyer Hill Rd. their calls, according to Motherboard. The two (Route 122 A) (off Rt. 62 & 495) Holden, MA 01520 Berlin, MA 01503 flaws are zero-days, and are currently present in Boston Area Tel: 508-829-5353 Tel: 978-838-9999 Zoom’s Windows and macOS clients, according Locations Fax: 508-829-9346 Fax: 978-838-9916 to the report. 2 Dexter Street • Researchers from BitSight Everett, MA 02149 found that remote-work users Boston Area Boston Area are more likely to have malLocations Locations 431 Second Street ware on their devices, accordEverett, MA 02149 ing to LookingGlass reporting. 2 Dexter Street 2 Dexter Street BitSight found that Trickbot Everett, MA 02149 Everett, MA 02149 malware was three times more likely and the Mirai botnet was 431 Second Street 431 Second Street 20 times more likely to be on Everett, MA 02149 Everett, MA 02149 home office networks than BOSTON AREA LOCATIONS corporate networks. The Trick 100 Fremont Street 2 Dexter Street 431 Second Street bot malware has been leverWorcester, 01603 Everett, MAMA 02149 Everett, MA 02149 aged in order to deliver Ryuk ransomware to target hospitals, local and state governments, and corporations. • Facebook said today it will begin alerting users if they have interacted with harmful misinformation about COVID-19. This effort is a part of a series of new, aggressive steps to combat Minichiello Bros./Scrap-It, Inc., what health authorities have deMinichiello Bros./Scrap-It, Inc. scribed as a global “infodemic.” Serves over 2500 customers a week and is one of New England’s largest Serves over 2500 customers a week and is one New England's largest buyers, • Governments are imposing buyers, sellers, and processors of scrap metal. Forour overgoal 60 years goal sellers and processors of scrap metal. For over 60 years has our remained remained the same - to in provide the best along prices in thetop industry along with new digital surveillancethe tools same - tohas provide the best prices the industry with notch top notch service! Fred Rogers at 617-595-5505 to track and monitor individucustomer service! Callcustomer Fred Rogers at Call 617-595-5505 Minichiello Bros./Scrap-It, Inc., als to slow the pandemic. Minichiello Bros./Scrap-It, Inc., While many citizens have welServes over 2500 customers a week and is one New England's largest buyers, comed tracking technology, sellers and processors of scrap metal. For overa60week years ourisgoal Serves over 2500 customers and onehas Newremained England's largest buyers some privacy advocates are the same - to provide the best in theof industry along with notch sellers and prices processors scrap metal. Fortop over 60 years our goal has remain wary, concerned that governcustomer service! the Callsame Fred -Rogers at 617-595-5505 to provide the best prices in the industry along with top notch ments might not be inclined customer service! Call Fred Rogers at 617-595-5505 to unwind such practices af ter the health emergency has passed, according to the Wall Turn your metal into money today! Street Journal. Turn your metal into money today! And this is an update for Minichiello Bros. Inc./Scrap-It Inc. Minichiello Bros. Inc.,/Scrap-It Inc. just one day.

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Insurance Perspective continued from page 60

IMPORTANT: Use Your Bonding Company as a Resource!

In uncertain times such as these, your relationship with your bond company is especially important. As part of their underwriting process, they have teams of analysts monitoring the legal, economic, and political climate across the country – some across the World. The branches

share local knowledge with the home office who, in turn, disseminates it to the branches. For example, because our firm is a member of the Surety Association of Massachusetts, we recently received this email below:

Members, We have been made aware of efforts by public owners in other states to shift the risk of COVID-19 (and potential future pandemics) onto the contractor. Specifically, there have been reports of contract language aimed at restricting or prohibiting a contractor's ability to make a claim for an adjustment to contract sum and/or contract time. The following language was added just prior to a bid via an addendum to a Wayne County Schools project in Ohio: “Contractor acknowledges and agrees that it assumes all risk associated with impacts resulting from the Coronavirus (COVID-19) pandemic, that the Contract Sum and the bid submitted by Contractor has factored in the risks associated with impacts from COVID-19, and that impacts resulting from or related to COVID-19, including but not limited to acts of government, acts of public authorities, and any instances that may constitute a force majeure event, shall not be a basis for a Contractor to make a claim for an adjustment to the Contract Sum.” And further: “impacts resulting from or related to COVID-19 […] shall not be a basis for a Contractor to make a claim for an adjustment to the Contract Sum, and/or to terminate or suspend the Contract except […] for an [sic] no-cost extension of the Contract Time […].” Fortunately other state chapters have experienced some success in pushing back against owners on this issue. We encourage members to maintain awareness of this language, and SAM will remain available to intervene on behalf of our member companies as needed. As always, we encourage each member to develop their own risk mitigation strategies. Best regards, The Surety Association of Massachusetts

In the spirit of collaboration, if you come across any onerous contract provisions that you feel should be shared or, more importantly, addressed by the Surety Association of Massachusetts or the Surety Association of America, please notify your agent who will be happy to pass it on to the local Surety Association Chapter. We are all in this together. Using the surety as the enforcer can help preserve your relationship with an owner MAY, 2020

who introduces onerous language. Remember, on bonded work, the surety is signing off on the same contract provisions that you are. Your interests are aligned. As annoying as the underwriting questions can be, take the time to find the answers. You may choose to move forward and accept the risk, hopefully with your surety’s support, but at the very least, you will be aware of the risk. n

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MAY, 2020

Patrick W. Saltmarsh Corporate Safety Director J. Derenzo Companies

Things Should Never Go Back To “Normal” “Something good always comes from something bad.” ~ Brady Jandreau

t is wishful thinking to say that you want life to return to normal, but the fact is that it shouldn’t…at least not the old normal anyway. As a nation, we will only be able to achieve a “new normal” once we have a working vaccine for COVID-19. Until then, social distancing is here to stay for much more than a few weeks. The world has changed many times, and it is changing once again. All of us have been forced to adapt and adjust to a new way of living, working, and socializing. But I am hopeful that we can achieve a new kind of normalcy, and leave in place some of the employee health controls we so desperately scrambled to establish. This wretched COVID-19 pandemic has flipped our world onto its head and is challenging us both professionally and as individuals. Therefore, as we grapple with the painful lessons of the present, let’s embrace the opportunity to make the future even better. As we look for the silver lining, shouldn’t we be asking ourselves: What if every job had a handwashing station? What if we performed health screening at the entrance to every jobsite? What if we conducted most of our meetings virtually and improved our company’s teleworking capabilities? As we refashioned our jobsite to address COVID-19, we also made them safer from other afflictions as well. Each year, flu season typically begins in the fall and winter months, lasting until late spring. Maintaining and continuing the health controls we recently established will most certainly keep company employees healthier by being proactive and help to mitigate workplace viruses. Seasonal flu, and the comMAY, 2020

Example of a wash station, which was established in response to the COVID-19 jobsite requirements

mon cold can sweep through a workplace, resulting in high levels of worker absenteeism and productivity losses. This lost time has both a direct and indirect economic impact on companies. With remarkable speed, people have come to realize how important it is to wash our hands more often, cover our coughs more carefully, and how it is not okay to come to work if you are exhibiting any viral symptoms. This is progress. So what will the new normal look like? I don’t know. I am optimistic however, that companies and their employees alike will place more value in these health controls we have established and embrace the incredible feeling of arriving at work and knowing that you will be paid an honest day’s pay, in exchange for an honest day’s work. n

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Custom and Standard Concrete Products... Our Specialty! United Concrete Products, Inc.

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Offering a full range of products: Manholes, Catch Basins, Septic Tanks, Leaching Chambers, Dry Wells, Distribution Boxes, Pump Chambers, Grease Traps, PreTreatment Tanks, Utility Vaults, Meter Pits, Yard Drains, Box Culverts, End-Walls, Wing Walls, Curbs, Water Quality Structures, Prefab. Pump Stations, Storage Buildings, Dugouts, Concrete Barriers, Cable Concrete, Retaining Walls, Restroom Buildings, Telecommunication Shelters, Prestress Bridges, National Grid, Traffic Control Structures and many more.

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Federal Wastewater Ruling Could Have Cape Implications HARWICH — In placing the burden for wastewater cleanup and prevention on the shoulders of the US Environmental Protection Agency instead of state agencies, a recent US Supreme Court decision could spur Cape and Islands towns to significantly pick up the pace in addressing contamination of ponds and bays by nutrients and other contaminants from septic systems and treatment plants.

he decision in the County of Maui v. Hawaii Wildlife Fund, et al, found that pollutants added to groundwater could be the “functional equivalent” of a pipe, resulting in the degradation of nearby water bodies, and are subject to an EPA permit under the federal Clean Water Act. “From an environmental perspective, this was about the best result we could have wanted from the Supreme Court,” said Craig Johnson, a former EPA lawyer and an environmental law professor for 29 years at Lewis & Clark Law School in Portland, Oregon. “This decision retains our ability to seek judicial redress when things that should be done, aren’t being done,” said Andrew Gottlieb, executive director of the Association to Preserve Cape Cod. As of last year, only four Cape towns had completed their required Comprehensive Wastewater Management Plan, according to data from the Massachusetts Estuaries Project. Plans were underway in nine towns, and two towns were in the preliminary phase of planning. The Conservation Law Foundation has been trying for years to prove in court what they think is obvious, that septic systems and wastewater treatment plants that discharge into the ground can pollute surface water bodies and should be subject to the Clean

MAY, 2020 2016 SEPTEMBER,

Water Act. The goal was to get towns moving on addressing the problem. “There are many systems, septic and sanitary waste disposal systems, in place right now that are collectively contributing to the problem we see today,” said Christopher Kilian, the foundation’s vice president of strategic litigation. He said the Supreme Court decision “should result in a significant expansion of Clean Water Act application and liability on Cape Cod.” Maui officials permitted injection wells that discharged wastewater into groundwater that they knew reached the ocean nearby. Johnson said Maui argued that discharge into the land, even if it was only a continued on page 66

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65 00

Spotlight on Cape Cod continued from page 65 foot from the water, wasn’t subject to federal authority under the Clean Water Act. The Supreme Court decided by a 6-3 majority against the County of Maui and the EPA’s assertion that no discharge to groundwater was subject to the provisions of the Clean Water Act. That will likely have a direct impact on a Conservation Law Foundation court case against a Harwich resort, said Kilian. In December, the foundation filed an appeal to a US District Court decision in which Judge William Young cited a recent Environmental Protection Agency advisory opinion that discharges of pollutants to groundwater were categorically excluded from being required to obtain a federal permit. Young found the plaintiff, Wychmere Beach Club, not liable for discharging contaminants from their wastewater treatment plant into groundwater that entered the adjacent harbor. The club’s attorney, Jeffrey Porter, said in a prior interview that his clients had a system approved by the state Department of Environmental Protection and that its discharge accounted for only 2% of the total nitrogen load in Wychmere Harbor. Porter did not return an email requesting comment.

Nitrogen is both a marker indicating that wastewater effluent carrying both nutrients and other contaminants may be entering a system, and acts as a fertilizer spurring runaway algal growth that can overwhelm a water body, smothering marine life and robbing the water of life-giving oxygen. The state Department of Environmental Protection contracted with University of Massachusetts scientists, town officials and volunteers to determine the sources and extent of this contamination and set contaminant input targets, known as total maximum daily load, that would restore the health of Cape and Islands surface water bodies. The state study determined that the vast majority of the nutrient input attributed to humans comes from septic systems. “The TMDL’s are over 10 years old now and are the clearest indication of what’s going on on the Cape,” said Kilian. “To date that hasn’t resulted in rapid widespread action to correct the problem.” The Supreme Court decision, Kilian said, asserts what CLF has been saying all along, that authority over wastewater discharges should not be done solely through state permitting but should also include the permit process, along with penalties for violating the law and clear guidance to judges, when necessary, that they issue injunctions or orders to take action to continued on page 67 stop the pollution.

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MAY, 2020

Spotlight on Cape Cod continued from page 66 Kilian said his organization wants effective programs at the federal, state and local level. Preferably they would be coordinated. “We have been pressing for federal permitting because it provides an enforceable framework for reducing nitrogen. But, implementation of the state program and local programs is also a critical path for finding solutions,” Kilian wrote in an email. There was concern, expressed by the Supreme Court justices, that federal permits could impact individual property owners who use septic systems and create a regulatory nightmare. Their final decision included conditions like time of travel and distance from septic systems to surface water, soil types, chemical alteration and dilution as factors that could rule out many systems. An EPA spokesperson said the agency is reviewing the decision, but said the finding that the addition of pollution to groundwater requires a permit if it is the “functional equivalent” of a direct discharge “created uncertainty for the public, including private property owners.” Former EPA official and former Falmouth wastewater superintendent Gerald Potamis said he could see the EPA creating a watershed or regional permit as they did with stormwater discharge.

“We’re not looking for federal permits,” Gottlieb said. “What we want towns to do is to use the jurisdiction and state authority they have and implement functional solutions.” Gottlieb hoped that towns would expedite their planning process to take advantage of what will surely be a coronavirus job stimulus package like the one for the Great Recession under former President Barack Obama that will be looking for shovel-ready projects. “The criteria isn’t value for money spent but spending money to create jobs,” Gottlieb said. “I’ve argued this for a long time; have plans ready to go because when the money is available, you have to be ready.” Written by Doug Fraser. Reprinted from the Cape Cod Times. n

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