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May 2020 | Advertising for Certified Women, Veteran & Minority-Owned Subcontractors | 50th Edition
South Central Texas Regional Certification Agency:
Providing Seamless Certification for Small Businesses FROM LEFT TO RIGHT: Jessica Bateman, Charles Johnson, Janie Romero, Karina Pineda
16-17
INSIDE
18
Mayor Turner Appoints Office of Business Opportunity Director Houston City Council approves appointee
10
Supporting Small Businesses Impacted by COVID-19
30
Container Activity Slowing at Port Houston First-Quarter Volume Still Up
2 | May 2020
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PUBLISHER’S MESSAGE
Keith J. Davis, Sr. CERTIFIED:
HMSDC
The Subcontractors USA Texas Journal highlights opportunities and news relevant to the construction, energy, architecture, manufacturing, education, engineering, oil and gas, transportation and IT industries we serve. We hope you find this issue not only informative, but inspiring and educational as well. This month’s issue highlights the South Central Texas Regional Certification Agency. SCTRCA’s mission is to make things as easy and efficient as possible for small, minority and women-owned businesses to get certified. During the pandemic, the agency Port of Houston
PUBLISHER & CEO Keith J. Davis, Sr. COO & MANAGING EDITOR Kimberly Floyd ACCOUNTING MANAGER Eugenie Doualla STAFF WRITER Carly Hammack ART DIRECTOR Angel Rosa PHOTOGRAPHY Grady Carter L.C. Poullard
“Doing the best at this moment puts you in the best place for the next moment.”
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has made every effort to continue supplying the best way to help these small businesses. They are proud to now offer their certification process completely online. Even in this time of transition, their numbers have continued to rise, showing that small businesses in the state of Texas are continuing to put in the work. As always, thank you for your continued support of Subcontractors USA Texas Journal. When you support us, you are supporting more than just our company; you are supporting the communities in which we live and work. Working together, we can succeed in making positive things happen.
—Oprah Winfrey
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08 CONSTRUCTION 08 Post-coronavirus contingency planning for contractors, owners 10 Council Approves Centerpiece Development for Upcoming Trinity Mills Station 10 ENERGY 10 Supporting Small Businesses Impacted by COVID-19 12 IT & TECHNOLOGY 12 Technology Drives Innovation in the Construction Industry 12 Using New Technologies To Reduce Methane Emissions 14 Mask Ambition 16-17 COVER STORY 16-17 South Central Texas Regional Certification Agency: Providing Seamless Certification for Small Businesses 18 LEGAL 18 City of Forth Worth: PeopleFund launch new microloan program supporting local businesses
DISTRIBUTION Rockie Hayden
18 HOUSTON 18 Mayor Turner Appoints Office of Business Opportunity Director Houston City Council approves appointee
CONTRIBUTING WRITERS Helen Callier Subcontractors USA News Provider
20 OIL AND GAS 20 Texas Oil and Natural Gas Industry Launches Coalition to Develop Industry-Led Solutions to Minimize Flaring and Methane Emissions 22 PERMITS 22 12 Proven Practical Steps to Obtain Building Permits in any Economic Market Condition 24 SAFETY 24 Worker Exposure Risk to COVID-19 24 U.S. Department of Labor Issues Guidance for Respiratory Protection During N95 Shortage Due to COVID-19 Pandemic
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OUR SERVICES
CONTENTS 04 ARCHITECTURE 04 Architect Standard of Care Relative to Site Visits During the COVID-19 Pandemic 04 Architect’s Guide to Business Continuity now available
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26 TRANSPORTATION 26 Texas Central High-Speed Rail announced that their planned high-speed rail project from Dallas to Houston could be impacted by the COVID-19 pandemic 30 Texas’ Thirteenth Court of Appeals Rules in Favor of Texas Central 30 Container Activity Slowing at Port Houston First-Quarter Volume Still Up
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ARCHITECTURE
Architect Standard of Care Relative to Site Visits During the COVID-19 Pandemic By Subcontractors USA News Provider
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rchitecture firms are undoubtedly facing many challenges and decisions as they deal with the impact of COVID-19. Most architecture firms are working remotely, either by their own choice or at the direction of local authorities. However, many construction projects are continuing. Architects and their firms that need to provide contract administration services or other contractual or legal obligations for site visits will need to balance competing interests and obligations. The AIA is prohibited from giving legal advice. However, we are able to outline the issues for your use in seeking the advice of an appropriate professional. If you believe that you are facing a situation where liability may arise, we urge you to promptly seek advice from legal counsel licensed in your jurisdiction, as well as the advice of your professional liability insurer. The general guidance below should be weighed against the specific facts at hand and the needs of the parties involved, including whether site visits are even permissible under the current state and local mandates, such as those currently in effect in California and New York. Historically speaking, means, methods, and jobsite safety are responsibilities generally within the sole province of the contractor, so architects should be careful not to overstep their bounds. Given the unusual conditions presented by COVID-19, the best course of action at this time is to openly communicate with the other project participants (owner, contractor, subs, etc.) about the situation, identify the challenges presented, and work toward a mutually acceptable resolution, such as putting a limit on the number of people onsite during observations, adopting methods for virtual observation, and other solutions. In their discussions, the parties may consider how social distancing, the Centers for Disease Control (CDC) guidelines, and other requirements or recommendations by applicable public authorities or officials will be addressed to allow for safe and approved site visits by the architect and its consultants. If the means stated by the contractor are not satisfactory to the architect related to protecting the architect's employees and consultants that must ordinarily visit the site, or in order to comply with regulatory mandates
and policies, the architect may attempt to come to an alternative understanding with the contractor. If an understanding cannot be reached, then the issue could be escalated to the owner. If the architect does get adequate assurances, these assurances should be memorialized in a writing to confirm the parties' common understanding (and to serve later as proof of the understanding). The architect's employees and consultants sent to the site should be advised of the understanding between the architect and contractor (and owner), and a copy of the written confirmation of the understanding should be provided to them. Employees and consultants should also be told that if, upon arrival at the site or during the visit, conditions are not as agreed, or if they have other concerns, they should suspend the site visit and contact their home office to discuss their concerns before proceeding.
One alternative the architect and its consultants might consider and discuss with the owner and contractor is the feasibility of using technology to do site inspections if they feel in- person site inspections will not work. Development of a plan and protocols for "virtual site inspections" would depend on many factors, including the working relationship and levels of trust among the various parties (architect, owner, contractor, consultants), the particular nature of the items to be observed, and the specific intent of the visit. For example, a general visit to certify applications
for payment may differ from observations of concrete pours or inspections by the authority having jurisdiction that are key to structural integrity or health, safety and welfare (HSW) issues, the technology available, and informing the owner of potential shortcomings by not physically visiting the site to see the work in place. In general, an owner and contractor have contractual and common law obligations to follow all laws. A party to a contract also cannot force another party to perform an illegal act. It remains unknown whether the requested action, jobsite visits, would be illegal per se, though it may violate CDC guidelines. In localities where there are quarantine or shelter-in-place orders, the situation may be quite different. At the end of the day, the architect will most likely be judged by whether or not it acted reasonably in learning about the conditions expected to be encountered at the site, advising the contractor and owner (and construction manager, or other similarly situated entities with corresponding obligations and responsibilities) of its concerns and expectations, including any limitations on the quality of observations that might be made using technology in lieu of in-person site visits, and making good faith efforts to continue performance. The traditional standard of care is what a reasonably prudent architect in the same or similar locale would do under the same or similar circumstances. This standard of care is also reflected in the AIA Owner Contractor agreements (see for example B101-2017 at § 2.2). Where there are future inquiries regarding what the standard of care may be, a judge, jury, or arbitrator will look back at the totality of circumstances to determine whether the architect fulfilled its obligations. Because the standard of care varies by location and from case to case, the AIA cannot set a standard of care for architects. It is unfortunately not possible for AIA or any organization to state that a prescribed set of steps taken now will definitely satisfy the standard of care because, ultimately, compliance with the standard of care will be adjudged by looking back at the architect's actions. Despite this fundamental challenge, the AIA understands that it may be frustrating for members dealing with this complex situation in real time, and is actively working on materials that will assist members. Please continue to check the AIA websites, and look for further communications from components, for further information. Source: AIA
ARCHITECTURE
Architect’s Guide to Business Continuity now available
New AIA resource provides guidance for firm resiliency By Subcontractors USA News Provider
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n an effort to assist architecture firms with navigating adverse business conditions, the American Institute of Architects (AIA) is releasing a new resource: Architect’s Guide to Business Continuity. “Firms across the country are facing pressures from all sides—from transitioning offices to teleworking models, to work stoppages, to repositioning their businesses to adapt to changing client needs,” said AIA
EVP/Chief Executive Officer Robert Ivy, FAIA. “This guide is meant to help firms be nimble during any kind of disruption, whether environmental or manmade. It also should support them in making informed decisions during economic uncertainties so they can be best poised to address the future.” The guide provides firm leaders with insights into managing staff, premises, technology, information, supply chains, stakeholders, and reputation, so a firm can continue to provide services, generate revenue, and reduce the consequences of business interruption. Additionally, it provides insights on business aspects unique to building industry professions to help firms be aware
of potential vulnerabilities to their business and provides considerations for expanding resilient design services. It also builds on best practices and incorporates lessons learned from firms adversely impacted during previous events. A March AIA survey found that 48 percent of firms surveyed had all, or almost all, of their staff now working remotely, while 31 percent reported that some of their staff are working remotely. Few firms reported a major impact to their staff due to family or personal reasons, but 15 percent of firms said that at least some of their staff are currently unable to work at all. AIA is providing firms with a host of resources in response to COVID-19 in addition to advocating for much needed
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relief for workers and employers through the CARES Act. Included in the legislation are a number of AIA-supported measures to help meet the needs of architects and their firms, including the Paycheck Protection Program for small businesses and sole proprietors, low interest loans to mid-sized businesses, and the Employee Retention Credit for all businesses. Additionally, AIA has provided firms and architect members with FAQs as well as guidance on how Congressional and administration policy activities would impact their practices. Visit AIA’s website for COVID-19 member resources and to view the Architect’s Guide to Business Continuity. Source: AIA
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CONSTRUCTION
Post-coronavirus contingency planning for contractors, owners By Subcontractors USA News Provider
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ne 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. However, 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 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 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.
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Source: Construction Dive
May 2020 | 9
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CONSTRUCTION
ENERGY
Council Approves Centerpiece Development for Upcoming
Trinity Mills Station By Subcontractors USA News Provider
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arrollton City Council unanimously approved an agreement for a 125,000-square foot, sixstory Class A office structure to serve as the marquee building within new Trinity Mills Station urban development. The City of Carrollton, Dallas Area Rapid Transit (DART), The Integral Group, and Koa Partners signed a Master Development Agreement (MDA) for the entire Trinity Mills Station on March 1, but Council's approval at the Tuesday, April 7 meeting means planning for the first of two major office buildings for the area is set to move forward. The City and DART collectively own 26 contiguous acres of land that will comprise Trinity Mills Station, a future transit center district, located at the southeast quadrant of the President George Bush Turnpike and IH-35E interchange. It is the largest publicly owned transit-oriented development site in North Texas and the most connected, since Trinity Mills Station is served by the DART Green Line light rail service to Dallas and the Denton County Transportation Authority (DCTA) A-Train commuter service to Denton. "This is a monumental milestone for the entire development team on all sides," Carrollton Urban Development Director Ravi Shah said. "The Trinity Mills Station MDA is the culmination of negotiations over the last two years and the start of a transformation in this area from an inner-ring suburb to a vibrant hub for economic and social activity, with increased shopping and dining, hospitality and recreation venues, and business opportunities." The City and DART have expressed their vision for the project as an active mixed-use development including office buildings, a hotel, restaurants, retail, residential uses and large outdoor grass gathering places for concerts, picnics, exercising, and other events that would create activity day and night every day of the year. "I believe the Trinity Mills Station development will be one of the most impactful projects in Carrollton in recent history." Carrollton Mayor Kevin Falconer said. "In view of the previous projects in our surrounding cities in years past, the City of Carrollton is in for an economic boost that will reclaim the area surrounding the old Home Depot property and infuse the neighborhood with a modern, streamlined aesthetic similar to Legacy Town Center." Phase I features not only the six-story, 125,000 squarefoot Class A office building that includes a four-story structured parking with five hundred parking spaces and 10,000 square feet of retail space, but also a five-story mixed-use residential development that also features structured parking, an esplanade, public infrastructure, and public green space. Commercial real estate company JLL (Jones Lang LaSalle Incorporated) has been retained to serve as the exclusive leasing partner for the office portion of the project with Executive Vice President
Chris Doggett and Vice President Lauren Perry leading the marketing and leasing efforts. Construction is scheduled to begin in July 2021. Integral, an Atlanta-based master developer led by managing principal, Art Lomenick, has partnered with Koa Partners, a Dallas-based office developer led by CEO, Harry Lake, to achieve the vision of redeveloping the new Trinity Mills Station into a place to live, work, and play by transforming former parking lots and other commercial and acquired land by the City into an urban village that will spur further investment around the Trinity Mills DART station and the Broadway corridor to Downtown Carrollton. Lomenick has directed the initial redevelopment of numerous uptown and midtown communities throughout the U.S., beginning with involvement in the evolution of Dallas' very own Uptown - transforming it into a thriving urban district of shops, residencies, offices, and engaging public spaces. He also orchestrated the business planning and development of Addison Circle and Legacy Town Center, two master-planned, new urbanist communities crafted in cooperation with the Town of Addison and City of Plano. "Partnership and vision building are key to sparking successful catalytic developments like the proposed Trinity Mills Station," Lomenick said. "The plan is to bring in people that are passionate about the project and turn an area like this into a prime spot for corporate relocations and civic growth." Due to its location at PGBT and IH-35E, this premier redevelopment area has high visibility and the potential to capture not only the east-west traffic from PGBT, but also north-south commuters from IH-35E. Highway and rail connections to Dallas Love Field and DFW International Airports can be made within 20 minutes. "The long-term benefits of developing communities and activity centers near rail stations is one that extends across the nation," DART President/Executive Director Gary C. Thomas, said. "Connectivity and multi-modal access are increasingly important in a Texas that is rapidly urbanizing - this is especially true in the Dallas/Ft. Worth region. The City of Carrollton's commitment to multi-modal transportation options, and an urban landscape that reflects the importance of those options, will be fully realized with Trinity Mills Station." Falconer said he is very excited about this partnership and the vision set in place by the City, DART, and Integral. He said Trinity Mills Station was a Council priority from the Strategic Planning session in the summer of 2017 and, arguably, one of the most thrilling projects to come into fruition. "Carrollton's transportation infrastructure is one of its greatest strengths," Falconer said. "Trinity Mills Station will be a tremendous catalyst for growth for all three of Carrollton's DART light rail stations, as we continue to create a City that more families and businesses want to call home."
Supporting Small Businesses Impacted by COVID-19 By Subcontractors USA News Provider
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o help small businesses, Entergy Texas has created a hub of resources to connect owners to information, tools and opportunities that could help during the COVID-19 pandemic. “Small businesses are the backbone of the communities we serve,” said Steve Pilgrim, director of business and economic development for Entergy Texas. “During these challenging times, we hope these resources are helpful for small businesses impacted by the pandemic. Southeast Texas has weathered many storms, and together, we’ll weather this one too.” The hub provides information on the federal Coronavirus Aid, Relief and Economic Security (CARES) Act. It also includes COVID-19 resources from state and regional partners. These resources are at entergy.com/ covid-19/txsmbiz/. said Steve Pilgrim, Businesses applydirector of business and ing for financial help economic development for available through Entergy Texas. the CARES Act must provide a copy of their most recent utility bill. A copy can be found by logging into myAccount online. If you don’t have an account, register at entergytexas. com and click on myAccount. If you have trouble registering, need your account number or need more help, call 1-800-ENTERGY (1-800368-3749). Now more than ever, bad actors are leveraging the COVID-19 pandemic to create even more chaos. Small businesses and residential customers alike should remain vigilant for phishing campaigns or callers that may be trying to trick them. If they have questions about their account, they call 1-800-ENTERGY or visit myAccount online. Entergy Texas, Inc. provides electricity to approximately 461,000 customers in 27 counties. Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 9,000 megawatts of nuclear power. Entergy delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of approximately $11 billion and more than 13,000 employees.
Source: Dallas Area Rapid Transit
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“Small businesses are the backbone of the communities we serve,”
Source: Entergy
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IT & TECHNOLOGY
Technology
Drives
Innovation in the Construction Industry this type of growth strategy from succeeding. So, what types of problems could a ‘bottom-up’, end-user-first strategy solve?
By Subcontractors USA News Provider
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IT & TECHNOLOGY
onstruction technology is undoubtedly one of the most exciting pockets of innovation in today’s economy. Funding in U.S.-based construction technology startups surged by 324 percent to nearly $3.1 billion in 2018, compared with $731 million in 2017, according to Crunchbase data. Investment spans hardware, software, AI and other exciting technologies. For too long, the construction industry was essentially neglected by the technology and VC worlds. However, the industry is finally experiencing an injection of innovation that — if deployed and nurtured appropriately — could have a meaningful and lasting impact across safety, productivity and connectivity. It’s important to note that the majority of these new-age construction technologies are geared toward businesses — they sell a piece of technology, be it hardware or software, to a company in the construction space, and that technology is then used by some subset of workers at that company. Many of these companies’ offerings help solve important problems in the industry — safety, productivity, communication, etc. However, it’s not entirely clear that top-down solution, versus a bottom-up solution, will drive the most change. A product or platform that is geared towards the worker, not management, will be most widely adopted and engaged with, and therefore have the most impact. It’s human nature to react adversely to something that you’re being forced to use, versus something you’ve discovered yourself and you feel provides the most utility. Slack and Dropbox, while not construction technologies, are examples of exactly this. Slack is a messaging/ team productivity platform and Dropbox is a file storing/sharing platform. Both Slack and Dropbox were built solely with the end-user in mind, and their initial go-to-market efforts were geared toward acquiring that end-user. They were wonderful products that provided real utility, therefore they were able to establish a critical mass of users to a point where these users began demanding their companies purchase the products for their companies. They were obsessed with serving their end-user, which then enabled them to eventually become dominant players in the enterprise space. The same dynamic may exist in the construction workforce. Sure, construction is a bit more regulated than other spaces, but that doesn’t necessarily preclude
Using New Technologies To Reduce Methane Emissions By Subcontractors USA
Communication Communication Why isn’t there a Slack for the construction industry? Probably because the communication habits of construction workers are fundamentally different than those of the office worker. But, whoever takes the time to understand these habits, and builds a product that workers actually enjoy using, will be the one who captures this opportunity.
Jobs Jobs The construction labor market is undeniably inefficient, largely due to the lack of effective tools at the market’s disposal. Generally, construction workers don’t use resumes, since written resumes are not an effective method of demonstrating a builder’s skillset. Workers who build things prefer to show their stuff via photos and videos because it’s a far more compelling medium for what they’re trying to communicate. This is why these workers aren’t on LinkedIn, and why the traditional job boards have struggled to capture them as well. A common complaint among contractors/ builders is that they can’t find enough skilled workers for their projects. There isn’t (yet) a deep platform to access skilled tradespeople, since nothing has been built for the worker.
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educing methane emissions in oil and gas operations is an important way to reduce greenhouse gas emissions. Advances in technology can help detect and identify the sources, and improve the ability to respond quickly. But there’s no one-size-fits-all solution. That’s why ExxonMobil is leading testing for the most promising next-generation methane detection technologies at 1,000 sites in Texas and New Mexico, with the aim of identifying effective, scalable solutions.
Payments Payments Somehow the construction industry is still heavily reliant on paper. Digital payment platforms like Stripe have exploded to support industries like e-commerce, but no one has yet been able to definitively capture the construction space. Getting paid on time is a massive concern — and growth inhibitor — for sub-contractors and workers alike. Payment systems need to work differently for this industry, which is a solvable problem. It’s just not one that has yet been solved. There’s a lot to be excited about in the construction technology space these days — it’s an industry that’s ripe for innovation and disruption, and it feels like we’re in the early innings of this new age of innovation. The companies who will capture the biggest opportunities are the ones who build their products with the enduser — the worker — top of mind. Source: Associated General Contractor
Here’s a look at what ExxonMobil is working on – from outer space to on the ground – as well as providing a roadmap for the industry to zero in on and stop methane leaks and reduce emissions.
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14 | May 2020
MASK AMBITION By Subcontractors USA News Provider
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hance Facebook friendship between an Atlantabased physician and a digital transformation expert from ExxonMobil could help unlock a wave of medical masks that health care workers need to help treat patients with COVID-19. Justin Sink, a digital transformation and innovation advisor at ExxonMobil, saw a March 19 Facebook post from his friend Dr. Susan Morris, a pediatric intensivist. The post was written by Dr. Joanna Newton, who was frustrated at the shortage of protective gear for medical professionals. Just a day later, Dr. Newton returned to Facebook to announce she’d partnered with a team at Georgia Tech to 3D print face shields and reusable masks. But they still had a gap: a plastics manufacturer who could mass-produce the equipment. Seeing the challenge at hand, Justin immediately connected with ExxonMobil’s chemical business experts. This team of engineers and product managers tapped into its broad network of material science specialists and equipment manufacturers to help. Together, they have brought in more industry partners to answer the call for protective gear for medical professionals on the front lines of this fight. Dr. Newton’s post set off a wave of willing assistance and contacts, culminating in a new collaboration between ExxonMobil and a host of other companies, academics and government institutions to help solve the protectivegear shortage without a moment to lose. In an interview with Justin, he lays out new details on this initiative, explains why it’s both critical and unprecedented, and describes how it will, within days, enable the production of thousands of protective masks every hour.
EnergyFactor: Factor:How Howdid didyou yourealize realizethat that Energy youwere wereininaaposition positionto tohelp helpsolve solvesuch suchaa you widespreadproblem problemso soquickly? quickly? widespread Justin Sink: In fairness, this has all come together faster than I anticipated. About a week ago, we were nowhere. In a short time, we went from zero to a network of willing partners. This initiative quickly went from design to prototype to being on the cusp of mass production. When I first saw the call for help, I knew our plastics business had the right manufacturing contacts to help get things going. We forged connections between manufacturers and medical professionals who’d never have found each other on their own, and brought in our production and supply chain expertise, too. I’m grateful for how our chemicals professionals have stepped up to answer the call, as well. My colleagues Bill Ramsey, Bob Ferguson and Mike Donahue have been incredibly helpful in this process, recruiting and mobilizing so many partners. Things snowballed from there.
We’vebeen beenhearing hearingaalot lotabout aboutN95 N95masks. masks. We’ve Whatmakes makesthem themeffective effectiveand andso sohard hardtoto What comeby byright rightnow? now? come The masks are made of a material that Exxon invented in the 1970s. It looks and feels like rigid cloth, but it’s
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IT & TECHNOLOGY
actually a melt-blown polymer that enables air to flow in and out easily. What most people don’t know is that before the fabric is shaped into masks, it’s given an electrostatic charge. That charge is what captures viruses or bacteria. Over time and with extended use and contamination, that charge diminishes and, along with it, the protective ability of the mask. So, these masks often have to be thrown away after a single use. And the problem is there’s only so much of the fabric being produced around the world.
Whycan’t can’tproduction productionsimply simplyramp rampup? up? Why With the N95 mask, the technology that’s required to produce each unit is quite complex. It’s difficult to build a new supply chain for N95 masks in a week – it usually takes months. And the virus spreads exponentially. For context, we still produce the raw materials for the fabric at our Baytown, Texas, production facility, which is currently working at maximum capacity. But most of the N95 microfiber is manufactured in Asia, and they need masks there as much as we need them here. So, the supply chain is stretched too thin, meaning mask material that’s made in Asia is staying in Asia right now. Fortunately, ExxonMobil understands materials science, manufacturing and supply chains, so we’re working to use that expertise and our connections in these areas to help. That means looking at similar designs and materials and talking to academics and manufacturers who can divert their resources and retool their machinery quickly.
What are are some of the What the different differentmaterials materialsthat that you and your partners are working with? you and partners are working with? In terms of materials for the masks, we have two new sources. One is from a company that makes the dustrepelling fabric for speakers for sound systems. That material, when charged, gets to a similar level of protection as an N95 mask and, if used properly, can protect a health care worker for an entire shift. A team at North Carolina State University, which is the premier fabric institute for polymers, has a production line operating 10 hours per day. We’re helping to get them going 24/7. Of course, there’s only so much filtering material that can be produced. So, we need to use every centimeter of fabric effectively, which means rethinking the mask itself. So instead of the traditional N95 disposable mask, we’re working on a composite rubber facemask with small, replaceable filter cartridges. This mask looks like the ones painters wear. The filter fabric in the cartridges will have the electrostatic charge, and at the end of a shift, the doctor or nurse can simply remove the mask, clean it and replace the cartridges with new ones, enabling them to use the same mask again the next day.
Would the the masks’ masks’ replaceable replaceable filter filter Would cartridges contain contain similar similar material material to to that that of cartridges of an N95 mask? an N95 mask? Essentially, yes. The main advantage is that we will use far less filter material than we would with a disposable mask, so no filter material goes to waste. Best of all, we’re not putting health care workers in a position where they feel they have to wash or heat sterilize an N95 mask, which just reduces the effectiveness of the masks they’ve been forced to reuse up to this point.
So how do we get from concept to rapid production, given the current supply chain constraints? We used 3D printing for prototypes and molds. After working with the medical community and the team at the Global Center for Medical Innovation in Atlanta to make sure the mask is up to standards, our medical-grade plastics experts started working with private and government manufacturers to create an injection mold. Once the mold is built in the shape of the mask, thousands of them can be produced per hour. We’re collaborating with NASA, the Georgia Tech Research Institute, GE, Delta Airlines, the National Organization for Technology Exploration and Delivery, Boeing and the U.S. Army Futures Command to decide which materials can be scaled up.
How will will the the new new mask mask get get approved, approved, How adopted and and distributed distributed for for widespread widespread use? use? adopted Everyone involved is sticking to their expertise and leveraging their relationships to make sure we get this done and protect the people on the front lines, who are protecting all of us. So, for example, we at ExxonMobil know materials science and supply chains, but we don’t know the medical community. The team at the Global Center for Medical Innovation, however, does – so they’re the ones working closely with doctors to make sure the mask is up to standard. That team is also coordinating with the FDA for quick approval. How soon do you anticipate face shields and the new masks making their way to doctors and nurses? The face shields will start shipping this week. The Army Futures Command and NASA have been helping with the design and prototyping process. Boeing also has shifted production to the shields. One production line can have an output of 10,000 shields per hour. What’s key to understand, though, is that we’re not replacing supply from the other manufacturers of masks. We’re adding to it. In just a couple of weeks, we’ll have created an entirely different production method and supply chain that doesn’t have the same bottlenecks that exist now. It’s like the mobilization of the war effort in the 1940s: Everybody is pitching in to make this work.
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Source: ExxonMobil
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SCTRCA:
Offering Ease and Efficiency to Small Businesses By Subcontractors USA News Provider
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ince its inception, the South Central Texas Regional Certification Agency’s mission has been to make things as easy and efficient as possible for small, minority and women-owned businesses, and even in the midst of a pandemic, that mission has remained the same. SCTRCA, a 501c3 nonprofit, was founded in 1998 follow i n g t he model of its sister agency, the North Central Texas Regional Certif ication Agency, founded just five years prior. Covering 16 counties in Sout h C entral Texas, this agency was created by a team of councilmembers to make it simple for small businesses to obtain their certification in just one place. “A s h istor y shows, there has long been an uneven and unfair disadvantage to small businesses,” SCTRCA Executive Director Charles Johnson said. “SCTRCA has positioned itself to be an agency that provides certifications in a one-stop-shop format, making it easier for these small businesses to participate in all
contract opportunities available to them.” As the executive director, Mr. Johnson oversees a staff of individuals ranging from certification specialists to intake clerks who work to ensure that the certification of small businesses is done seamlessly. They engage with the SCTRCA member entity consisting of the different counties, the City of San Antonio, the Housing Authority and several quasi-governmental entities including school districts like Alamo Colleges, and San Antonio Independent School District. They also correspond with corporate sponsors to give them access to contract opportunities in their extensive database and find vendors that are currently certified to do business with them. “My job is to engage with the business community as well as the corporate sponsors and government entities to ensure that everybody has a shot at soliciting one of those contract opportunities,” Mr. Johnson said. There are two avenues of membership with SCTRCA. One option is their interlocal agreement. This yearly agreement is a commitment to the agency, which in turn is a commitment to helping the small,
minority and women-owned business community. The second avenue is a corporate sponsorship. Becoming a corporate sponsor is a way of showing the small business community that they are sensitive to the needs of small business and are available to do their part in participating and helping. Gaining memberships requires outreach, another area SCTRCA excels in. Their efforts consist of hosting expos and trainings for members and potential members as well as joining in on partners events and offering support through certification information and tips. “We like to get out into the community to let people know who we are and what we have to offer,” Mr. Johnson said. “We want them to know we are here to help and connect them with the right resources for their businesses to succeed.” However, since the pandemic, operations at SCTRCA have required some adaptation. Much like other businesses during this time, the agency has made a shift to focus on offering their services virtually. In
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just a week’s time, Mr. Johnson was able to coordinate all the necessary steps to have his team working safely at home while still being able to carry out their essential services. “I am very pleased with what we've been able to accomplish,” Mr. Johnson said. “Our numbers have actually continued to go up during this whole pandemic. People are still getting certified while this is happening. And this just indicates to us that businesses are still out there working, which is great to hear.” Like many organizations, SCTRCA had their entire year planned regarding events,
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We like to get out into the community to let people know who we are and what we have to offer,” Mr. Johnson said. “We want them to know we are here to help and connect them with the right resources for their businesses to succeed.
trainings, etc. And while the events were cancelled physically, the information they had to offer is still accessible through online trainings and virtual access to the staff for answers to important questions.
The accomplishment Mr. Johnson is most excited about however is the agency’s transition to offering certification requirements completely online. Though it has been set up since fall of 2019, the timing is nothing short of perfection. “Thanks to this new online certification setup, we have been able to safely and efficiently continue certifying these businesses,” Mr. Johnson said. “We have been able to keep our members as well as ourselves safe by giving them the avenue to simply go online. We are excited for this to continue to be an option even after the pandemic.”
It is clear that SCTRCA places high priority on ease and efficiency. This shows the value they see in honoring the time of the members. Many of these small businesses consist of only one or two employees, adding even more value to how their time is spent. “Being able to offer these businesses one place to get all certifications, ranging from a local to a federal level, shows them we care about their time,” Mr. Johnson said. “Their time and efforts are incredibly valuable, and our goal is to be here, ready to help their business succeed in any way we can.”
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www.sctrca.org
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HOUSTON
LEGAL
Mayor Turner Appoints Office of Business Opportunity Director Houston City Council approves appointee By Subcontractors USA News Provider
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PeopleFund launch new microloan program supporting local businesses By Subcontractors USA News Provider
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he City of Fort Worth is teaming up with PeopleFund to launch the Business Resiliency Microloan Program, which is prepared to provide at least $850,000 to eligible businesses in Fort Worth who are being impacted by the COVID-19 crisis. These loans may be used to pay fixed debts, payroll or accounts payable, or cover other bills that can’t be paid due to the pandemic. While maximum loan amounts may reach $50,000, at least half of these loans will be $15,000 or less, and at least 60% of loan proceeds will be allocated to minority-owned businesses and those with low to moderate income.
Eligibility Businesses are eligible for these loans if: • The business has an established physical address in Fort Worth. • The business is current with city and county property taxes.
Additional loan terms:
• Zero interest rate and no payments for the first six months, after which there will be an interest rate of 5% or less. • Loans are fully amortized over a total term of up to 78 months. • Loans can be repaid early at any time with no penalties. • These loans can be combined with other PeopleFund programs.
Finally, all applicants are required to apply for available federal assistance before applying to the Business Resiliency Microloan Program. PeopleFund can provide assistance with those applications, as needed. Businesses can apply for the Business Resiliency Microloan Program on the PeopleFund website.
More about the Business Resiliency Microloan Program At the onset of the crisis, PeopleFund set up a Texas
COVID-19 Relief Fund and seeded it with $3 million in capital to support small businesses impacted throughout the state. To date, the organization has more than doubled the initial fund with an additional $2.5 million in capital and $1 million in grants. The Fort Worth Loan Development Corporation (FWLDC) has made $350,000 in loan capital available to this Texas COVID-19 Relief Fund, and PeopleFund will match this capital with $500,000 to support eligible businesses in the City of Fort Worth. If demand for relief exceeds the original $850,000 pool, PeopleFund and the FWLDC have agreed to provide additional funding support, which could bring the total pool to more than $1.7 million. “Fort Worth’s small businesses are one of the things that makes our city so special, and we know they’ve been hit hard during this unprecedented time,” said Mayor Betsy Price. “As our community continues to rally around our small businesses, this program will provide them with some much-needed support and relief.” “The best support that we can provide for Fort Worth’s businesses right now is funding,” said Robert Sturns, the city’s Economic Development Director. “Our hope is that this relief will help ease some of their financial burden and allow Fort Worth businesses to keep their basic necessities afloat – from their employees, to their buildings, to paying their bills.” “Over the last 25 years, PeopleFund has created economic opportunity by helping small business owners establish and grow their businesses in Texas,” said Gustavo Lasala, president and CEO of PeopleFund. “True to that mission, we are proud to join our resources and expertise with those of the city of Fort Worth to help the most vulnerable businesses navigate through this crisis. Small businesses are the backbone of our economy; they are resilient and necessary for the recovery ahead.” Additional funding sources Businesses can also apply for a variety of assistance at local, regional and federal levels, including: • The CARES Act Paycheck Protection Program (PPP), which provides small businesses with up to $10 million to cover eight weeks of payroll costs (including benefits), rent and utilities. Loans can be mostly or completely forgiven if 75% or more of the funds goes towards payroll, including hiring back employees. • Economic Injury Disaster Loans (EIDL) provide low interest loans of up to $2 million for capital expenses like fixed debt and payroll costs, with an emergency forgivable advance of up to $10,000 available upon request when you apply.
ouston City Council confirmed Marsha E. Murray as Director of the Office of Business Opportunity. She has filled the role as Interim Director since September 2019. Murray previously served as Deputy Director of OBO from 2012-2019. While at OBO, Murray played an instrumental role in the department’s growth and led comprehensive operational changes and policy updates in the department. Murray also led the expansion of OBO’s services to facilitate free legal assistance and guidance for Houston’s small business community doing business globally. In February 2019, Murray received OBO’s Advisory Board Chairman’s Advocate of the Year award for her work on behalf of Houston’s business community. Prior to joining the City of Houston, Murray served as legal counsel to New York City government for 10 years. During that time, she worked to ensure that the most vulnerable New Yorkers had access to social services and led programs that served to maximize housing options for citizens in a perpetually challenging housing market. “Marsha Murray's experience and success working with the business community is the kind of leadership the Office of Business Opportunity needs to continue providing economic opportunity and workforce inclusion in the city of Houston,” said Mayor Turner. “She has consistently shown great leadership and is committed to workforce development as evidenced through her professional achievements. Since I’ve been mayor, Houston has awarded nearly more than one billion dollars in City of Houston contracts to MWBEs (Minority & Women Business Enterprises). I expect that level of commitment to continue.” “I am extremely honored to be asked to lead the Office of Business Opportunity. I am keenly aware of the important role the Office of Business Opportunity plays in ensuring the success of local small businesses and creating employment pathways for disenfranchised individuals," said Marsha E. Murray, Office of Business Opportunity director. "Under my leadership, I’m committed to providing transformational services and programs to support their resiliency and success.” Murray has a Bachelor of Arts degree in Political Science and Spanish from Colgate University and a law degree from Villanova University School of Law. Murray is active in the local community and serves on the board of Zonta Club of Houston, a global organization of professionals empowering women worldwide through service and advocacy. She is a graduate of the Center for Houston’s Future Business/Civic Leadership Forum and has served as an advisory board member of the World Chamber of Commerce. She has served on national and international panels advocating for the continued support and development of small businesses. Her advocacy for businesses to thrive globally has led her to earn a National Association of Small Business International Trade Educators Certified Global Business Professional designation.
Source: City of Fort Worth
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OIL AND GAS
Texas Oil and Natural Gas Industry Launches Coalition to Develop Industry-Led Solutions to Minimize Flaring and Methane Emissions By Subcontractors USA News Provider
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n alliance of Texas oil and natural gas trade associations, along with nearly 40 Texas energy companies, today announced they have formed a coalition to work together on environmental progress. Focused on industry-led solutions to minimize flaring and methane emissions, the Texas Methane and Flaring Coalition (the Coalition) will collectively identify and promote operational and environmental recommended practices. “Texas is a global leader in the responsible production of energy that has powered life for more than a century. Always proactively innovating and improving, Texas oil and natural gas companies strive to find innovative ways to minimize flaring and methane emissions in the production and transportation of our state’s natural resources. The Texas Methane and Flaring Coalition is just one more example of industry demonstrating its commitment to advancing solutions to environmental concerns,” said Todd Staples, president of the Texas Oil & Gas Association, which is a member of the Coalition. While the Texas oil and natural gas industry is a global leader in the responsible production of energy that has powered life for more than a century, the industry is always proactively innovating. To that end, Texas operators are committed to improving environmental performance. The Coalition will evaluate existing data and evidence on flaring and methane emissions from the industry in Texas and develop opportunities and recommendations to continue to minimize these practices. Specifically, the Coalition’s objectives are to:
• Develop recommendations that will improve data quality for accuracy and consistency in reporting vented and flared volumes. • Define why and when flaring is necessary and communicate the environmental and safety reasons that may necessitate flaring. • Identify, assess, and recommend opportunities and best practices to minimize methane emissions and flaring. • Evaluate existing studies and summarize findings.
• The South Texas Energy & Economic Roundtable (STEER) • The Texas Alliance of Energy Producers (The Texas Alliance) • The Texas Independent Producers & Royalty Owners Association (TIPRO) • The Texas Oil & Gas Association (TXOGA) • The Texas Pipeline Association (TPA) • Nearly 40 Texas oil and natural gas companies
Coalition members have developed a website with resources and information for stakeholders, legislators and regulators, and the general public who are seeking to gain a better understanding of these issues. The website will be updated frequently as the Coalition develops and implements its objectives, findings and recommendations. The vast majority of Coalition members are participating in other initiatives to improve environmental performance, including The Environmental Partnership, The Oil & Gas Methane Partnership, the New Mexico Oil & Gas Association Methane Mitigation Roadmap, among others, demonstrating the industry and individual companies’ commitment to advancing solutions to environmental concerns.
Members of the Coalition include: • The Panhandle Producers & Royalty Owners Association (PPROA) • The Permian Basin Petroleum Association (PBPA)
Source: Texas Oil and Gas Association
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PERMITS
12 Proven Practical Steps to Obtain Building Permits in any Economic Market Condition By Helen Callier Contributing Writer
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cratching your head attempting to figure out how to obtain your building permit when the Permitting Center is closed to walk-ins during epidemic? You are not alone. Our toll-free line has been ringing with questions from Architects to Contractors. Questions like the following: Can you tell me if the City of San Antonio is still conducting inspections? Are there any delays with the Electrical companies connecting power to finished buildings once we have CO? Is there any impact in the plan review time on commercial projects in the City of Austin? We were told the Baytown Health Inspectors are not conducting inspections, is this true? And the questions go on and on with our team of Permitting experts sharing insights and the latest information as we are in steady contact with over 300 jurisdictions in Texas to serve our clients and be a resource for the construction industry. In addition to responding to inquiries, we share that whether the construction market is hot, warm or cold, obtaining a building permit without delays is vital to start construction in a timely manner and is important when involving deferred submittals. To assist in obtaining building permits, employing
proven practical steps like the 12 listed below positions your design or construction firm to be successful in permitting. Start Early – Avoid last minute scramble in reviewing building codes, changes in permitting process and tossing the permit package together. Getting started early allows you to minimize risks in permitting, make necessary changes and insure have all required documents. Visit Jurisdiction’s Web Site – Check for latest changes in building codes, hours of operation and how submissions are being processed. This step alone can save you lots of time and money. Contact Jurisdiction – Permitting staff are available to answer questions on properly completing forms, approach in meeting building codes, and so much more. Call, email or schedule an appointment to meet with specific permitting staff. QA/QC Permit Package – Prior to submitting electronically or in person
Engage a Permitting Expert Manage Uploads – Submit electronically and
make sure placing in the correct folders to avoid being rejected. Pay Jurisdiction Fees – Certain fees are due upfront such as plan review fees, and best to pay water/wastewater fees early to minimize delays on backend of permitting. Monitor Progress Respond to RFI’s - Address all jurisdiction rejection comments in a timely manner. Ask Questions – If need assistance, reach out to the Plan Reviewer. Note: This may be a challenge when jurisdiction uses third-party plan reviewers. Say Thank you Purchase Building Permit and Start Construction
IN CONCLUSION Yes, you can scream and shout at the Plan Reviewer. Yes, you can call your elected official to ask them to scream and shout to obtain your building permit. You can do this, but before you move in that direction, consider using the practical tips mentioned above as they are proven on residential including complex multi-family, commercial, industrial and other construction projects requiring a building permit. And if your project is truly difficult, reach out to a Permit Expediter as they stay abreast of the latest changes in permitting, are knowledgeable of building codes and have established relationships to cut through the chase in any market conditions. If you have any tips on obtaining building permits fast, I love to hear your story. Connect with me on Linkedin or call 1.844.PERMIT.4 #BuildSafe
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WORKER
SAFETY
Exposure Risk to COVID-19 By Subcontractors USA News Provider
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lassifying Worker Exposure to SARS-CoV-2 Worker risk of occupational exposure to SARSCoV-2, the virus that causes COVID-19, during an outbreak may depend in part on the industry type and need for contact within 6 feet of people known to have, or suspected of having, COVID-19. OSHA has divided job tasks into four risk exposure levels, as shown below. Most American workers will likely fall in the lower exposure risk (caution) or medium exposure risk levels. Occupational Risk Pyramid for COVID-19
Very High Exposure Risk Jobs with a high potential for exposure to known or suspected sources of COVID-19 during specific medical, postmortem, or laboratory procedures. Workers include: • Healthcare and morgue workers performing aerosol-generating procedures on or collecting/handling specimens from potentially infectious patients or bodies of people known to have, or suspected of having, COVID-19 at the time of death.
High Exposure Risk Jobs with a high potential for exposure to known
or suspected sources of COVID-19. Workers in this category include: • Healthcare delivery, healthcare support, medical transport, and mortuary workers exposed to known or suspected COVID-19 patients or bodies of people known to have, or suspected of having, COVID-19 at the time of death.
Medium Exposure Risk Jobs that require frequent/close contact with people who may be infected, but who are not known or suspected patients. Workers in this category include: • Those who may have contact with the general public (e.g., schools, high-population-density work environ-
ments, some high-volume retail settings), including individuals returning from locations with widespread COVID-19 transmission.
Lower Exposure Risk (Caution) Jobs that do not require contact with people known to be, or suspected of being, infected. • Workers in this category have minimal occupational contact with the public and other coworkers. For more information, see the Guidance on Preparing Workplaces for COVID-19. Source: OSHA
SAFETY
U.S. Department of Labor Issues Guidance for Respiratory Protection During N95 Shortage Due to COVID-19 Pandemic By Subcontractors USA News Provider
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he U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued interim enforcement guidance to help combat supply shortages of disposable N95 filtering face piece respirators (N95 FFRs).
The action marks the department’s latest step to ensure the availability of respirators and follows President Donald J. Trump’s Memorandum on Making General Use Respirators Available. Due to the impact on workplace conditions caused by limited supplies of N95 FFRs, employers should reassess their engineering controls, work practices and administrative controls to identify any changes they can make to decrease the need for N95 respirators. If respiratory protection must be
used, employers may consider use of alternative classes of respirators that provide equal or greater protection compared to an N95 FFR, such as National Institute for Occupational Safety and Health (NIOSH)-approved, non-disposable, elastomeric respirators or powered, airpurifying respirators. When these alternatives are not available, or where their use creates additional safety or health hazards, employers may consider the extended use or reuse of N95 FFRs, or use of N95 FFRs that were approved but have since passed the manufacturer’s recommended shelf life, under specified conditions. This interim guidance will take effect immediately and remain in effect until further notice. This guidance is intended to be time-limited to the current public health crisis. Visit OSHA’s Coronavirus webpage regularly for updates. For further information about COV-
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ID-19, please visit the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www. osha.gov. The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. Source: OSHA
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MORE THAN BRICKS AND MORTAR
As one of the nation’s largest commercial builders, Turner is dedicated to providing avenues of opportunity for Minority- and Woman-Owned Businesses in Houston to achieve entrepreneurial success. Our commitment to social responsibility and fair play is not just on paper; it is ingrained in our corporate culture. We are devoted to making sure the contributions that strengthen the local economy reflect the demographics of the community at large.
w w w. t u r n e rc o n s t r u c t i o n . c o m
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TRANSPORTATION
Texas Central High-Speed Rail announced that their planned high-speed rail project from Dallas to Houston could be impacted by the COVID-19 pandemic By Subcontractors USA News Provider
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his is one of those moments where we have to acknowledge how small our world really is,” said Carlos Aguilar, CEO of Texas Central HighSpeed Rail. “Our engineering partner is in Italy, our operations partner is in Spain and our technology provider is in Japan. Our financial partners are in those countries, as well as here in the United States. Understanding the impact of COVID-19, and the challenges those countries and the US are facing, is a new fact of life. We are already implementing work from home and other measures to deal with the crisis, but still do not know what other impacts this will have.” In collaboration with the Federal Government, the State of Texas and a team of experts, Texas Central has advanced all aspects of this historic project and is ready to begin the construction phase once global financial markets stabilize and the federal approvals process is complete. “Our immediate next step is to continue working with our partner organizations and federal and state agencies, led by the Federal Railroad Administration, to finalize our permits. The current schedule we have from the federal government anticipates that will happen by July 31,” Aguilar continued. “From an execution standpoint, the project is shovel-ready. Once we receive our permit approval, our ability to begin construction will be contingent upon financial entities in the United States, Europe and Japan, all of which are dealing with urgent priorities generated
by COVID-19, completing their due diligence process." “Like other companies and organizations around the world, we are trying to make the best use of the funding we currently have, paying close attention to COVID-19 updates and putting plans in place to move our project forward as soon as the world is on the other side of this uncharted territory,” Aguilar said.
Texas Central expects to create more than 17,000 jobs during construction and a multibillion-dollar economic impact across the U.S via contracts for U.S. steel mills and other manufacturers, minority and women owned businesses, veterans, rural businesses along the alignment, and throughout the nation. To execute this project, Texas Central has put together a world-class team of experts and industry leaders, including: • Bechtel: Based in Virginia, Bechtel is the world’s leading
rail program manager. They will be our lead to oversee all aspects of this project as well as the integration of all scopes. • Central Japan Railway (JRC)/Renfe: We have two of the world’s leading rail system operators. JRC, based in Japan, is the technology provider and Renfe, based in Spain, is the operator of our system. • Salini Impregilo: headquartered in Italy, Salini is a best in class civil construction conglomerate that will deliver the civil infrastructure for our project. With vast high-speed rail experience, as well as a long-standing presence in Texas, Salini Impregilo (and its subsidiary Lane Construction) is perfectly suited to deliver this marquee project. • Team Shinkansen United (TSU): The best high-speed rail technology (Tokaido Shinkansen) in the world. TSU includes Hitachi, Mitsubishi Heavy Industries, Toshiba, NEC, and JRC. • Kiewit: Kiewit, based in Nebraska, and Mass Electric Construction Company, based in Massachusetts, market leaders in Rail systems construction and installation, will install the core systems that will operate the train, in partnership with the International Brotherhood of Electrical Workers. • Matthews Southwest (MSW) and Suffolk Construction: MSW, a Texas-based real estate developer, along with Suffolk Construction, based in Massachusetts, which has recently completed the most advanced rail terminal/commercial space in the nation, will develop and build the Texas Central stations.
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Source: Texas Central
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TRANSPORTATION
Texas’ Thirteenth Court TRANSPORTATION
Container Activity Slowing at Port Houston FirstQuarter Volume Still Up By Subcontractors USA News Provider
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of Appeals Rules in Favor of Texas Central By Subcontractors USA News Provider
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n the heels of a four-year long court battle, the Thirteenth Court of Appeals of Texas has ruled in favor of Texas Central, holding that it is both a railroad company and interurban electric railway. This legal process stems from landowners along the proposed route in Leon County who argued that the Texas Central project was not a railroad and therefore did not have the rights associated with a railroad, including eminent domain and access to property for surveyors. The Memorandum Opinion, authored by Justice Nora Longoria, held “Having found that the appellants (Texas Central Railroad and Infrastructure, Inc. and Integrated Texas Logistics, Inc.) are both railroad companies and interurban electric railways, we conclude that the trial court erred by granting (landowner’s) motion for summary judgment and denying appellants’
motion for partial summary judgment.” “This decision is rooted in state law that allows survey access and use of eminent domain by railroads, pipelines, electrical lines and other industries that provide for the public good and a strong economy,” said Carlos Aguilar, CEO of Texas Central. “This decision confirms our status as an operating railroad and allows us to continue moving forward with our permitting process and all of our other design, engineering and land acquisition efforts.” In 2019, Texas Central completed a portion of the land surveys required by the federal agencies conducting an environmental review of the project. This information allowed Texas Central to plan a route that is efficient, considerate of the environment through Central Texas and impacts the fewest property owners. The Final Environmental Impact Statement on the project is scheduled to be published by the Federal Railroad Administration later this month. “Texas Central confirms that it will always respect Texas landowners’ rights and will follow due process. Texas Central wishes to express gratitude to the Thirteenth Court of Appeals for its time in considering Texas Central’s appeal,” continued Aguilar.
ontainer activity at Port Houston, the largest container port on the United States Gulf Coast, began slowing in late March as expected as the coronavirus outbreak continued to threaten countries across the globe, including the U.S. Port Houston handled a total of 248,280 twentyfoot-equivalent units (TEUs) in March, a drop of 11 percent compared to March of 2019, when 280,721 TEUs were recorded. For the full year, Port Houston handled 773,087 TEUs through March, compared to 694,167 TEUs for the same period last year. That is an increase of 11 percent for the first quarter. The latest data from PIERS shows that while the U.S. container trade overall has contracted by more than 5 percent year-to-date, Port Houston has expanded by a similar amount. Nevertheless, in March Port Houston saw a total of seven blank sailings.
Source: Texas Central
Port Houston’s Bayport and Barbours Cut container terminals are important to the local, state and national economies as well as the supply chain, Executive Director Roger Guenther noted. Cargo moving across our docks reaches some 100 million residents as well as exporters and manufacturers throughout America’s heartland. “We must remain open for business to help international commerce continue during this difficult period,” Guenther said. “We also must support the economy with the necessary infrastructure to rebound when this global pandemic is brought under control.” Port Houston thanks the men and women working on all the private and public docks, driving trucks in and out of the port, and our other maritime transportation workers, who all support the port’s daily functions. Port Houston also thanks all other essential workers. Source: Port Houston
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May 2020 | 31
SUBCONTRACTORS USA
Experience Our World of Advertising, Marketing, Media and Communication
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TEXAT S EJ OXU A R NSA L W WW WW W . S. US BU CB UC SU AS . AC .O CMO M
Vaskey Media Group, Inc. 7322 Southwest Freeway, Suite 800 Houston, TX 77074 phone: 713-373-5577 email: contact@subcusa.com