Utility & Transportation Contractor June 2021

Utility & Transportation

contracTOR

7UDIÀF 6DIHW\ 6HUYLFH &HOHEUDWHV <HDUV

june 2021

I

de i s n

:

ran ete s Of V n sse ht O usine g i l t B Spo ned w -O A UTC

Congratulations to

�

and thank you to

All who serve in the military

arden State

Traffic Safety Service

PKECAST�

www.gardenstateprecast.com

dmorris@gardenstateprecast.com & gomalley@gardenstateprecast.com

� ♦ OPCA

C&HAGENCY

TRAFFIC SAFETY SERVICE CELEBRATING 50 YEARS IN CONSTRUCTION BEST WISHES FOR CONTINUED SUCCESS!

Exclusively Serving Contractors' Insurance & Bonding Needs for Over 50 Years 783 North Riverview Drive• Totowa, New Jersey 07512 P.O. Box 324• Totowa, New Jersey 07511 PHONE 973.890.0900• FAX 973.890.9038• E-MAIL: info@chagency.com

www.chagency.com

president’s message

From the desk of: dave smith Who we are: UTCA is actively Building a Better New Jersey by developing and maintaining a safe, well-funded business environment for utility and transportation contractors, subcontractors, their affiliates and vendors in New Jersey.

Our Board of Directors and staff work to ensure a fair and level playing field and an equitable industry where the only advantages are the ingenuity, productivity, and strategies that each business has developed to make its operations successful. Ensuring that contracts, specifications, and industry rules are applied consistently and fairly to all is at the core of our Association’s principles.

Murphy and his administration as well as many leaders in the Legislature.

What you can do to help: • Support our PAC: Constructors For Good Government. A strong PAC strengthens our voice in the state Legislature and allows UTCA to successfully advocate for the industry in the Hall of Trenton.

• Join a committee. Be heard and be a problem solver.

• Attend our events. Meet your peers and the UTCA staff. Our events offer opportunities to network with industry participants and discuss issues that affect us all.

• Know the issues. The ability to speak assertively and knowledgeably about the facts and causes that pertain to our industry makes a difference.

What guides us: You do. We have reached out with multiple surveys for your feedback and are moving consistently with the thoughts and vision of the membership to answer its needs. We are always available, and like any industry, we are fluid and accepting of change if it is for the better of the majority.

• Know your State Representatives. Deliver the facts to your State Representatives and know which support the initiatives and goals of our industry.

How we get results: The UTCA staff, the Board of Directors, and its membership are educated, experienced, and in tune with our industry and its needs. We are united with a common goal and utilize a broad network of connections, experts, and industry colleagues to move the Association’s agenda and address industry issues. The power of the legislative process is a tool that we use on a regular basis. We are widely respected by Governor

2 Utility & Transportation Contractor | june | 2021

Best regards,

Dave Smith

CONTENTS

Cover story 44 traffic safety service celebrates 50 years

44

DEPARTMENTS 2 7 15 25 57 71 77

President’s Message

FEATURES 62 spotlight on veteran-owned businesses of the utca

Financial Overview Legal Dig Accounting Corner

NEWS

Legislative News

85 the american rescue plan act and cobra subsidies

labor relations the pipeline

Published Bimonthly During 2021

1670 Route 34 North Farmingdale, NJ 07727 PO Box 728 Allenwood, NJ 08720 PH: (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org

Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Dan Kennedy, Zoe Baldwin, Dan Neville Advertising Manager: Helene Nasdeo Production/Graphics: Lauren Hagan, Helene Nasdeo Circulation: Helene Nasdeo Printed By: American Plus Printers $௻OLDWLRQV ARTBA, Clean Water Construction Coalition, Water Infrastructure Network UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, )DUPLQJGDOH 1- 3HULRGLFDO SRVWDJH SDLG DW )DUPLQJGDOH 1- DQG DGGLWLRQDO PDLOLQJ RႈFHV POSTMASTER: Send address changes to UTILITY AND TRANSPORTATION CONTRACTOR, PO Box 728, Allenwood, NJ 08720.

Utility & Transportation Contractor | june | 2021 3

Congratulations Traffic Safety Service celebrating 50years in construction &

On this Memorial Day let us remember those who courageously gave their lives for our country

GU/DERAIL

FENCING SIGNS SIGNFOUNDATIONS

SPECIALTYMETALFABRICATION

ROBOTIC WELDING

A/SC AWS

1512 Mays Landing Road Hammonton, New Jersey 08037 Phone: 609-561-3800 EXT.32 Fax: 609-567-8349 www.ruberton.com Email: info@ruberton.com

1hanft.Jou for!)Dur service!

*****

UTCA MEMBER-- VETERAN OWNED BUSINESSES * Lima Charlie Construction * BCA Insurance* Revenue Engine* * Walker Diving Underwater Construction*

CONGRATULATIONS -- TRAFFIC SAFETY SERVICE * Celebrating 50 Years in Construction*

MOUNl CONSTRUCTION COMPANY, INC.

-�-

B\N&R :����z� �

�

WWW.THEMOUNTGROUP.COM

MOUNl MATERIALS, LLC

Kevin Ellman CFP, CEO and Paul D. Miller are proud to announce the publication of their latest book.

Critical to the success of a Wealth Preservation and Succession Plan, is having a 360° Family Wealth Manager oversee and coordinate the diverse cast of professionals responsible for implementing a plan's complex elements and techniques to achieve the desired results.

Can your Family Wealth Management plan pass the 360° Stress Test?

Text WEALTH to 88799 to receive a complimentary copy of our new book.

PaulD.Miller President

Kevin Ellman CFP and CEO

ElizabethD'Aleo Director offamily Offices

Contact Kevin Ellman CFP Tel: 201.632.2022 Email: kellman@wpsllc.net Wealth Preservation Solutions, LLC. 45 Eisenhower Drive, Suite 550 Paramus, New Jersey 07652 wealthpreservationsolutions.com Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Wealth Preservation Solutions, LLC is not affiliated with Kestra IS or Kestra AS.

Investor Disclosures

By: Kevin Ellman, wealth preservation solutions

A

recurring question that my clients ask is, “What is the stock market going to do?” I begin by reminding them of quotes by two famous people. J.P. Morgan supposedly once said to a reporter when asked the same question, “Well, son, prediction is very difficult, especially when it's about the future.”

Yogi Berra later put his own twist on this perspective, saying, “It's tough to make predictions, especially about the future.”

Despite this element of uncertainty, one has to develop an outlook on the economy and the stock market to make sensible decisions about investing money. To refine my economic outlook on the stock market, I consider six key factors that I rate on a scale of one through five, with five designating the most favorable condition and one being the most unfavorable. A total of thirty points is possible across the following categories: • Federal Action • Inflation

Growth: 4 The growth outlook looks positive. The world is getting vaccinated, people are slowly going back to work, and the economy is recovering. A large infrastructure and stimulus spending bill might pass and invest trillions into the economy.

Regulation: 3 It appears that there will be more government regulation of businesses going forward. Generally, more regulation means lower profits, but the exact impact on the economic picture remains fuzzy.

Financial overview

prediction is very difficult, especially when its about the future

Employment: 3 The climate for employment is improving as the world slowly reopens in the wake of the pandemic. For the same reasons that growth looks good, the outlook for employment looks promising.

• Growth • Regulations • Employment • Taxes Federal Action: 4 Currently, the Federal Reserve is committed to keeping interest rates lower for longer. Their stated goal is to use monetary policy to foster full employment, even if that means that there could be some inflation down the line. Low interest rates help keep many of the costs of doing business low and help consumers borrow cheaply to buy all kinds of goods and services.

Inflation: 3 A little inflation is good — a lot, not so much. Low inflation rates allow businesses to raise prices slowly and workers to get modest raises, but if inflation gets out of control, then corporations and consumers start buying less. Right now, some fear that inflation might begin rising, but I view this as “reflating” back to normal.

Taxes: 3 Taxes for businesses and high-income individuals will likely rise under this administration. Higher taxes might support infrastructure and stimulus objectives, but increased taxes have a negative impact in my outlook for the future.

Conclusion These criteria produce a total score of 20 out of 30 potential points, or an average rating of 3.33. This rating points to a generally positive trend, and therefore we are investing for growth this year and next.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Wealth Preservation Solutions, LLC is not affiliated with Kestra IS or Kestra AS. Investor Disclosures: https://bit.ly/KF-Disclosures

Utility & Transportation Contractor | june | 2021 7

Heavy and General Construction Laborers' Union Joseph P. Madden Building 700 Raymond Boulevard Newark, New Jersey 07105 Phone:973-589-5050 Fax:973-589-0582 Affiliated with: New Jersey State AFL-CIO New Jersey State Building and Construction Trades Council Parent Organization: Laborers' International Union of North America

OFFICERS

Tony Oliveira, Business Manager

Mike Testa, President, Business Agent Manuel Amador, Jr., Vice President, Business Agent Luis Recio, Recording Secretary, Business Agent Jerry Isabella, Secretary-Treasurer, Business Agent Michael Giunta, Sergeant-At-Arms, Business Agent Dennis D'lmperio, Auditor, Business Agent Robert Campos, Auditor Derek Brooks, Auditor, Business Agent Pat Mancini, Executive Board, Business Agent Donald Cooper, Executive Board, Business Agent

Thank you to all military veterans!

WORK JURISDICTION: DRILLING, BLASTING, ROADS, SEWERS, BRIDGES, UTILITY WORK, PAVING, TUNNELS, DAMS, HAZMAT, EXCAVATIONS, CONCRETE WORK ON HEAVY AND GENERAL CONSTRUCTION TERRITORIAL JURISDICTION: COUNTIES: BERGEN, ESSEX, HUDSON, HUNTERDON, MIDDLESEX, MONMOUTH, MORRIS, PASSAIC, SOMERSET, SUSSEX, UNION, AND WARREN

,� □

V LLERS

SITEW □ RK

ENVIRONMENTAL

UTILITIES

PAVING

RECYCLING

OEMOLITION

VOLLERS FOUNDING PRINCIPALS -VISION. INTEGRITY.AND SENSE OF URGENCY Since 1949, Vallers has delivered quality construction services to the public, commercial and private clients.

908.725.1026 www.VollersCompany.com

Serving the New Jersey, New York and Pennsylvania area.

33 11 US Hwy. 22. North Branch, NJ 08876

@[FW ©@ @

:I.Li

CRISDEL

·@@ffiw� W@@[f®

SINCE 1985

STRUCTOR

0 R P O R A T E D COMMERCIAL · INDUSTRIAL

INTEGRITY

/ SAFETY

NJ/NY WBE / Port authority / NJ Transit / WBENC /SBECertified

/ SOLUTIONS

Thanking All Veterans and

Cong ratu lating Traffic Safety Service

VISIT US AT HCCO N STRUCTORS. BLU EBOOK.CO M

An Equal Opportunity Employer

FLORIO

PERRUCCI

I

I

STEINHARDT CAPPELLI TIPTON & TAYLOR LLC

Legal Strategy • Governn1ent Advocacy • Business Solutions

Traffic Safety Service Celebrating 50 Years in Construction Veteran --- Owned UTCA Members Lima Charlie Construction BCA Insurance Revenue Engine Wa1ker Diving Underwater Construction Construction & Public Contracting Law Louis Cappelli , Jr., Esq. (856) 853-5530 lcappelli@floriolaw.com

Brian R. Tipton, Esq. (908) 454-8300 btipton@floriolaw.com

Cherry I-Iill, New Jersey Bethlehem, Pennsylvania

Phillipsburg, New Jersey Harrisburg, Pennsylvania www.floriolaw.com

Adrienne L. Isacoff, Esq. (201) 843-5858 aisacoff@floriolaw.com New Providence, New Jersey New York, New York

subcontract terms in public contracts

P

ublic construction contracts in New Jersey, whether they be contracts with municipalities and other entities operating under the Local Public Contracts Law, N.J.S.A. 40A:111, et seq., school boards operating under N.J.S.A. 18A:18A-1, et seq., the New Jersey Schools Development Authority, the New Jersey Department of Transportation, or another State agency, are all prepared by and presented by the owner on essentially a non-negotiable basis. The general contractor has very little input on the contract terms. By contrast, the terms of the subcontracts entered into by the general contractor are generally drafted by the general contractor, with some negotiation of terms by the subcontractor. Although each project and subcontract presents unique issues, there are some common principles that should be considered when drafting and negotiating subcontracts on public construction projects.

The Parties Although the contractor will generally know the identity of the owner that it has entered into a contract with, the subcontractor or supplier might not have the full information needed to protect its rights. The subcontractor should know from the commencement of the job whether the owner is the State, a municipality or school board, or a private entity. The answer to that question will affect whether the subcontractor has rights under the Construction Lien Law or the Municipal Mechanic’s Lien law — statutes with very different time parameters and procedures. It will also affect whether the job is bonded — it might not be if it is a private job. Contractors on all State and municipal and school district jobs must furnish performance and payment bonds. This is particularly important on State jobs since no lien rights exist against the State.

Scope of Work The scope of work on a construction project is generally identified by way of incorporation by reference of detailed plans and specifications. At the lower contract levels, it could be identified by limited incorporation of plans and specifications applicable to that subcontract, by incorporation of plans and specifications with a list of exceptions, or by the supplier or subcontractor’s stated proposal. Regardless of the manner in which the scope of work is identified, for the benefit of all parties to the contract, it must clearly identify the full and comprehensive work responsibilities of the subcontractor. Regardless of whether the contrac-

tor is paid on a unit price basis or a lump sum, the subcontract can utilize any payment method agreed upon by the parties. The contract must clearly identify the agreed-upon pricing, especially if it is a different method than that being used for the contractor. In renovation projects, the contract should identify the extent to which hidden work is in or out of the base scope of work.

Legal Dig

By: adrienne l. isacoff, esq., florio, perrucci, steinhardt, cappelli, Tipton & Taylor LLC

Scope of work may be identified not only from the architectural plans but also from structural plans, electrical plans, and mechanical plans, among others. The specifications typically require each contractor to review all plan sheets carefully, regardless of whether or not they would typically fall within that contractor’s trade. This is not always done, which causes problems during the course of the project; a detail that would be the responsibility of the general construction contractor might be located on a plan applicable to a specific subcontractor trade, and the general contractor and trade subcontractors may each claim that the work was not their responsibility.

It is the contractor’s obligation to articulate the limits of its scope of work by way of specific affirmative statement of what that scope includes, as well as by identifying exceptions. This may also be addressed by building in allowances or unit prices. If the latter is used, a base quantity of the particular work needs to be identified (i.e., any fill material in excess of X cubic yards shall be compensated at a stated rate per cubic yard).

Subcontractors and suppliers are typically asked to provide a quote to perform certain work that may be identified within one or two plan sheets or a limited section of the specifications. After that quote is provided and the prime contractor enters into a contract with the owner, a subcontract will be issued to the subcontractor that may significantly expand the work that the subcontract felt it was quoting. This may be accomplished by including other items or by incorporating by reference all terms of the prime contractor’s contract and the plans and specifications.

If the subcontractor has not seen those documents prior to executing the subcontract, it may be surprised to discover later that the plan sheets or specification sections require additional work.

The safest way to avoid these problems is for the subcontractor or supplier to review the proposed owner/contractor agreement and the full set of plans and specifications before executing any subcontract (preferably prior to issuing a quote). Even if this is not feasible, the subcontractor or supplier should include all ex-

Utility & Transportation Contractor | june | 2021 15

ceptions and limits in its quote.

Legal Dig

Payment Methods.

At the time of contracting, the manner in which payments are to be made and the limitations regarding payment obligations need to be clearly defined. Payment scheduling on a construction project is typically included within a milestone payment provision or a schedule of values and progress payment provision. On most public projects, the schedule of values and progress payment process is used. Under this process, primary work functions are identified on a schedule of values with a particular value associated with each component. The cumulative values of each of these scheduled value items adds up to the total contract price. The schedule of values is prepared by the contractor and submitted to the owner for its approval. On typically a monthly basis as the project progresses, the contractor issues a payment application demonstrating that it has performed a certain percentage of one or more of the identified work components. It is then paid after approval of the percentage of completion of those components. A percentage of retainage is typically withheld on each payment so that at the time of substantial completion the owner will be holding not only the value of remaining line items on the schedule of values, but also the stated percentage.

Variations on these payment methods include unit price payments, allowances, and time and materials billing. In all instances, the contract should include timing provisions for the submission of invoices or applications, timing for when payment is required, provisions that would allow the owner or contractor to withhold downstream payments, and provisions for submitting supporting documentation that may include material invoices, storage invoices, certified payrolls, delivery tickets, and the like.

This has become more crucial with the amendments to the New Jersey Prompt Payment Act (N.J.S.A. 2A:30A-1 et seq.).

Regardless of the payment method selected, certain common problems arise with regard to payment obligations for subcontractors and suppliers. A subcontractor or supplier may execute an agreement that calls for a “pay-when-paid” clause — or worse, a “pay-if-paid” clause. Under these clauses, regardless of the timing provisions that may exist in the subcontractor/contractor agreement, if the contractor has not been paid by the owner (regardless of whether it was due to the subcontractor’s acts or omissions), the subcontractor may not have an immediate entitlement to payment. The courts in New Jersey have typically sided with the subcontractors on pay-when-paid clauses to the extent that the courts have agreed that contractors may not withhold payment indefinitely. However, there have been no cases decided in New Jersey on enforcing pay-if-paid clauses, although that has occurred in other states so long as the clause is unambiguous. More general contractors are including pay-if-paid clauses into their subcontracts, including language that has been successful elsewhere in enforcing such clauses. Even a bond claim can be affected on the basis that the pay-if-paid clause precludes the accrual of a bond claim.

Subcontractors and suppliers also need to be alert to the contractor’s ability to ignore payment obligations for “extra work.”

16 Utility & Transportation Contractor | june | 2021

Many subcontracts and purchase orders issued by contractors will include provisions that effectively state that the subcontractor’s or supplier’s ability to receive funds for extra work is limited to instances where the contractor has the ability to receive such funds. Such a term should be the subject of negotiation prior to executing the subcontract. If the subcontractor’s work is outside of its own scope of work, it should not matter whether or not the contractor is able to obtain an overall change order from the owner since it is not uncommon for a scope of work item to exist in the owner/contractor overall scope but have been excluded from the subcontractor’s obligations in some fashion.

Finally, the contract should identify mechanisms under which change orders or claims for additional or deducted work should be priced. Often problems arise during the course of construction where there may be agreement that particular work is outside of the scope of work but disagreement arises with respect to valuing that extra or changed work. Mechanisms should be available in the subcontract in addition to the standard issuance of a quotation, acceptance of the quotation, and then issuance of a change order that handles disputed cost functions. This may be addressed by work directives followed by time and material provisions, use of dispute resolution boards or other neutrals to value the work, unit price development, or similar mechanisms.

Takeaway Both contractors and subcontractors should carefully review the terms of the subcontract to achieve clarity and agreement to the extent possible. Disputes are almost inevitable in construction projects, but a well-crafted subcontract will at least give each party the tools it needs to understand its own obligations, the other party’s obligations, and the remedies available if one of the parties breaches the contract.

J. Fletcher Creamer & Son, Inc. congratulates and recognizes Traffic Safety Service for 50 years in construction &

the UTCA Member Veteran-Owned Businesses for their contributions to our industry.

UTILITY I HEAVY/HIGHWAY I SIGNS & GUARD RAIL I EMERGENCY WORK

REAME rt�HHC.REAMER•snr.. IN -•r.lll/llf

�

STAVOLA

��7

G

COMPANIES

Congratulations Traffic Safety Service

For Celebrating 50 Years in Construction! &

Veteran-Owned UTCA Members

Lima Charlie Construction, SCA Insurance, Revenue Engine, and Walker Diving Underwater Construction

Heavy Civil - Tunnel - Drilling - Marine - Construction Companies

Caldwell Marine International

1333 Campus Parkway Wall Township, NJ 07753 732.557.6100 www.jaginc.co

aiHUXTED �TUNNELING ,JAG Company

Eel

DRILLING INTERNATIONAL • ..w.ac_,_,

PERREIRA

I

BUILDING THE FUTURE WITH PRIDE Ferreira is a first-rate company built on a foundation of integrity. We have experience and expertise in all facets of transportation infrastructure, utility/power, marine construction and construction management. We are a nationally recognized leader in the construction industry due to our proven track record of successful project execution, effective planning and emphasis on safety.

CONGRATULATIONS TRAFFIC SAFETY SERVICE LLC FOR SO YEA RS IN CONSTRUCTION FERREIRACONSTRUCTION.COM I A CERTIFIED MBE COMPANY BUILT ON A FOUNDATION OF INTEGRITY NEW

JERSEY

NEW YORK

FLORIDA

CALIFORNIA

NEW

ENGLAND

(856) 768-8493 427 S. White Horse Pik-e_ - -� Berlin, NJ 08009 -!"Ww�jvearilerica.com

�-=-

UTCA MEMBER VETERAN OWNED BUSINESSES

/ TRAFFIC SAFETY SERVICE

•

So grateful for your service!

Celebrating 50 Years in Construction

rlington, Camden, Gloucester & Mercer Counties R 20, 30 OR 40 VAR

CGflCJlffE

HfNtim--

J_STQM�S/ SOIL • ., � . ..

SULLWASTE &RECYCLING

(609) 820-4267 427 S. White Horse Pike Berlin, NJ 08009 www.bullwaste.com

PETILLO INCORPORATED

HEAVY HIGHWAY AND SITE DEVELOPMENT CONSTRUCTION

Congratulations Traffic Safety Service On Celebrating 50 Years in Construction and Thank You to All Veterans

the benefits of an esop for architecture, engineering and construction companies By: lou sandor, cpa, partner, practice leader, construction services -- withum

P

al of the business is performed. In many instances, the business must borrow the funds from an outside lender (external loan) and loan proceeds immediately to the ESOP (internal loan) in order for the ESOP to purchase the shares or interest of the business. Outside lenders require this two-step loan process in order to avoid compliance issues with ERISA loan requirements.

According to the National Center for Employee Ownership, approximately 6,600 ESOPs are in place in the United States covering approximately 14 million employees. ESOPs primarily exist for small to midsize businesses with less than 250 employees, and average sales of these businesses are between $20 and $50 million. While ESOPs are prevalent in a broad range of industries, construction, manufacturing, and engineering are some of the top sectors implementing this succession planning option.

Should the purchase be partially financed with outside debt, the remaining interest could be funded by seller (owner) notes that would call for a reasonable rate of interest but be subordinated to the senior financing. Some owners find the idea of funding the ESOP through a seller’s note appealing since they receive a favorable rate of return on the note.

What are ESOPs? Similar to a profit-sharing plan or 401(k) plan, an ESOP is a tax-qualified retirement plan that is subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA). The main difference between an ESOP and other tax-qualified retirement plans is that an ESOP must invest in the company’s stock. ESOPs offer owners a beneficial way to reward

Similar to a contribution that a business might make to a 401(k) plan, a business is required to make a tax-deductible contribution to the ESOP annually. The contribution provides the ESOP with the funds to repay the internal loan that the ESOP has with the business. In addition to making these contributions to the ESOP, a business that is a C corporation can pay tax-deductible dividends and an S corporation can make distributions on shares of the stock held by the ESOP, which can be used to pay the internal loan.

Accounting Corner

lanning is the cornerstone of a successful company in the AEC industry, but planning an exit strategy is a process that is often overlooked. While there are many options to choose from, an ESOP (Employee-owned Stock Ownership Plan) might be the most beneficial option for both owners and employees.

Shares purchased by the ESOP are held in a suspense account within the trust. As the ESOP pays down its internal loan with the business, shares of stock are released from the suspense account and are allocated to the separate accounts of employees participating in the ESOP. Employees are participants in the ESOP through years of service or some other formula for participation. The longer a participant is employed by the business the greater their participation in the ESOP. Rules tend to vary, but an employee is fully vested in the ESOP in as early as three years or as long as six years.

Advantages of ESOPs employees while transferring ownership.

How do ESOPs Work?

A business must form an ESOP trust and name a trustee who is normally independent of the business. The ESOP will purchase all or a portion of the business from the owners after an apprais-

ESOPs are appealing for a number of reasons. First and foremost, ESOPs effectively create an internal market for the interest or shares of the business where one did not previously exist, offering an owner a means of liquidity.

ESOPs also offer special tax incentives subject to compliance with a number of specific rules. The contributions made by the

Utility & Transportation Contractor | june | 2021 25

Accounting Corner

business to the ESOP are generally tax deductible, and in many cases the owner can defer taxes on the transaction. For a shareholder of a C corporation, the gain from the sale to the ESOP can be tax-deferred by re-investing the proceeds in the securities of other domestic companies. An S corporation or partnership can also be converted to a C corporation before the sale and receive the same tax deferral. If a business stays an S corporation, there is an additional tax benefit offered by an ESOP. Because S corporation income is not taxed at the corporate level but rather passed through to individual shareholders, any S corporation income attributable to shares held by an ESOP is not subject to federal income tax. At the employee level, the shares within the ESOP trust allocated to employee accounts accumulate on a tax-free basis until disbursement.

Does it Make Sense for Your Business?

From a management standpoint, studies have shown that ESOPowned businesses maintain their culture post-sale, retain their employees for a long period of time if not through the remainder of their careers, and align employees’ interests with the owner’s.

Having an ownership stake in the business provides motivation for employees to increase productivity and hold each other accountable.

• Adequate Payroll: The business is subject to limitations on how much it can contribute into its ESOP each year, and payroll must be adequate enough to cover the purchase. If the appraised value of the business is high in comparison to its payroll, an ESOP might not be a viable option.

26 Utility & Transportation Contractor | june | 2021

An owner must account for several considerations to ensure the longevity of the ESOP, such as: • Management Continuity: The business must generate enough cash to buy out the owner while maintaining its operations.

• Pre-Existing Debt: The business must consider its pre-existing debt and its related bank covenants before securing additional debt to purchase the owner’s interest.

• Appraised Value: The owner must be willing to sell their shares at an appraised fair market value to the ESOP even if an outside investor would pay more for the potential synergies created.

North American Pipeline Services LLC is now Vortex Services.

Services Offered

As part of the Vortex family, we are now able to deliver the same excellent service you have come to rely on with the added experience and cutting-edge trenchless infrastructure solution methods Vortex Companies is known for.

VORTEX SERVICES WOULD LIKE TO CONGRATULATE

Traffic Safety Service Celebrates 50 Years in Construction Veteran-Owned UTCA Members Lima Charlie Construction, BCA Insurance, Revenue Engine, Walker Diving Underwater Construction and Allied Equipment Ser vices

1-855-WHYDIGl I www.vortexcompanies.com

MANHOLE REHAB • GeoKrete· Geopolymer • Hybrid Cements

GEOPOLYMER LINING • Culverts • Pipe • Non-Round Infrastructure CIPP LINING • Full Segment • Spot Repair

GROUTING • l&I Elimination • Soil Stabilization INSPE C TION, CLEANING & ASSESSMENT • Clean/CCTV • Lidar • Sonar

Exceeding Expectations cisleads.com 1170 Kinnelon Road, Kinnelon NJ 074051800.247.1727

Transformative Solutions

WE SOLVE TECH PROBLEMS It's why we're trusted by 500+ of the region's leading companies and business leaders.

At Mindcore, we provide more than IT services;

We are currently offering a free Technology Risk

we provide solutions that will transform your

Assessment to all UTCA members, vendors, and

business. Solving IT problems is our thing, it's

partners. The assessment will be done by our CEO,

why we're trusted by 500+ of the region's leading

Matt Rosenthal.

companies and business leaders.

Simply call Matt at the number below, and let him

Through business management coaching, real­

know you are calling f rom the UTCA community.

time collaboration, and customized solutions, we help leading companies take back control of

973-664-9500 ext 7123

their technology, streamline their business, and outperform their competition.

"Thank you to all the members and vendors of the UTCA. It's been an honor to serve so many of you over the years. We wish you all the best in202J." Matt Rosenthal, CEO of Mindcore matt.rosenthal@mind-core.com

OFFERING A COMPLETE LINE OF CONSTRUCTION & UNDERGROUND UTILITY MATERIALS FOR: SANITARY SEWER STORM DRAINAGE, WATER PIPE, AND SITE AMENITIES ■

HOPE Pipe: Under Drain Coils Soiltight Watertight

■

Reinforced Concrete Pipe

■

Ductile Iron Pipe and Fittings

■

Castings: Domestic and Imports

■

Custom Fabricated Storm Water Grates and Trash Racks

■ Aluminum Drainage Products ■ K Copper and Poly Water Piping - 1/2 ■

PVC Sewer, Water Pipe and Fittings:

Schedule 40 Schedule 80 SDR35 SDR26

SDR21 C900 PVC Water Main

■

Corrugated Polyethylene Pipe

■

Corrugated Aluminum Pipe/ Multi-Plate Culverts

■

Fernco Couplings

■

Cherne Air Testing Equipment

■

Geotextiles: Stabilization Fabric Filter Fabric

■

Soil Erosion Products: Silt Fence Safety Fence Soil Savers

■ Geneco Saddles & Boxes

11

to 211

■ Complete Line of Safety and Construction Materials

Serving New Jersey Since 1995

WE ALSO SELL TOPSOIL!

YOUR SOURCE FOR THE "BEST" TOPSOIL IN EXISTENCE FARM SCREENED TOP SOIL , SCREENED FINER THAN ALL THE REST

Congratulations to

Traffic Safety Service and Thanking All Military Veterans

KMETZ INC.

YOUR TRENCHLESS UTILITY EXPERTS SPECIALIZING IN: HORIZONTAL DIRECTIONAL DRILLING LASER GUIDED AUGER BORING PIPE RAMMING PIPE BURSTING OPEN CUT UTILITY INSTALLATION HEAVY HIGHWAY CONSTRUCTION

N.J. & N.Y. DBE/WBE/MBE CERTIFIED

"Don't ask if we can drill it, ask when!"

499 Marlboro Road- S3- Old Bridge, NJ 08857 732-821-0533 Fax 732-821-5099 WWW.KMETZINC.COM

In f'ndus011 m Facebook

Blue Line Traffic Management is your fully certified premier traffic safety coordination service. We aid contractors, developers, utility road crews, municipalities and others who work on public roadways, with highly experienced traffic management professionals. Blue Line Traffic also services synagogues, churches and others.

Our management team is made up of law enforcement veterans, each with 20 plus years of traffic management under their belt, safely directing the motoring public safely through construction, work zones and more.

TRAFFIC CONTROL SERVICE CAPABILITIES

Traffic Safety Service so Years in Construction

Thank you to all U.S. Military personnel for your sacrifices

BLU ELIN ETRAFFICMG MT.COM

732.845.6500

Congratulations to:

Traffic Safety Service

Celebrating 50 Years in Construction

Veteran-Owned UTCA Members

Lima Charlie Construction, BCA Insurance, Revenue Engine, Walker Diving Underwater Construction Whenever you drive on a highway, or ride a train, or fly into most airports in New Jersey, you probably have benefitted from Anselmi & DeCicco's expertise.

1977 Springfield Avenue, Maplewood, NJ 07040

www.anselmidecicco.com

I

I

973.762.3359

"An Equal Opportunity Employer"

Unusual Challenges : Unique Solutions

111

COHEN SEGLIAS

George E. Pallas

PALLAS GREENHALL & FURMAN PC

Shawn R. Farrell

ATTORNEYS AT LAW

Michael F. McKenna

I I

gpallas@cohenseglias.com sfarrell@cohenseglias.com

I

mmckenna@cohenseglias.com

www.cohenseglias.com

PENNSYLVANIA

NEW JERSEY

NEW YORK

DELAWARE

WASHINGTON, DC

KENTUCKY

RITACCO Ritacco Construction, Inc. is a family owned and operated business ...

Servicing the construction industry since 1987, we take pride in providing clientele with service, quality, and schedules that meet or exceed the diverse and varying requirements of our contracts without compromising our commitment to safety and professionalism.

1 O Lawrence Street Belleville, NJ 07109 (973) 751-4848 www.Ritacco.com An Equal Opportunity Employer

TOTAL TEAM

LENDING

EXPERIENCED LOCAL LENDERS

$13 BILLION

STRONG

Provident BANK

®

www.Provident.Bank

@

Am•m""'of

Nexia

International

I

CohnReznick is an indepe?dent . member of Nex1a International

CohnReznick congratulates Traffic Safety Service and the Pecoraro family on 50 years in construction. We also honor and appreciate all military veterans.

OPllMIZE PERFORMANCE As your business transitions from the COVID-19 pandemic, the advisory, assurance, and tax professionals at Cohn Reznick will help you prepare for what's next.

From project planning through completion, we can help you manage cash flow, implement technology to boost efficiencies, determine capital and bonding requirements, and maintain job site integrity.

Our multidisciplinary teams deliver diverse technical expertise and deep industry experience to all types of contractors, including public-private partnerships. So, you can move ahead with insight and confidence.

Are you ready to achieve your vision? Let's get going.

Visit us at cohnreznick.com/construction � Contact: Jack A. Callahan CPA, Partner - Construction Industry Leader Jack.Callahan@cohnreznick.com 732.380.8685

Congratulations Traffic Safety Service & The Pecoraro Family 50 Years of Exceptional Service to our Industry Wishing you continued success!

Daidone Electric Inc. & The Daidone Family

Daidone Electric Inc. 200 Raymond Blvd. Newark, NJ 07105 Phone: (973) 690-5216 www.daidoneelectric.com

CONCRATULA llONS To our dear friends at

Traffic Safety Service for all their services and 50 years in business CO,. INC.

JOSE R. CASIMIRO,

President

497 Raymond Boulevard Newark, New Jersey 07105 973-465-0030 973-465-0911

Cover Story

traffic safety service celebrates 50 years By: zoe baldwin

T

o the average driver, traffic management and safety around construction sites may seem like a very straightforward operation, but as with many aspects of our industry, there is much more to it than meets the eye. This constantly changing field relies on innovation, technology, and experience to make sure the motoring public and workers in the field are protected and that everyone can get home safely.

This high-level expertise is especially critical in dense regions like ours, and few know the rules of road safety like Traffic Safety Service, now celebrating its 50th year in the industry. A full-service safety firm specializing in traffic control devices and pedestrian safety products, Traffic Safety Service (TSS) handles everything from lane closures to advanced warning devices and specialized vehicle rentals. They are a 3M Master Distributor for sign manufacturing and design, manufacture, and distribute their safety products, many of which are American made.

We recently spoke with Traffic Safety Service’s CEO Theodore Pecoraro, COO Michael Pecoraro, and General Manager John Sandy to hear about their last half-century of growth and innovation.

Founder: Tony Pecoraro

Traffic Safety Service was founded in 1971 by Ted and Michael’s father, the late Tony Pecoraro. “My father was a banker by trade,” Ted begins. “He was thorough in everything that he did and was especially meticulous in handling the customers. From his demeanor and attitude to the way he dressed, everything about him was very well put together. Back in the 70s they did not have computers, so all the banking was done by hand, and my father’s attention to detail earned him respect as well as repeat customers. One gentleman named Jose would come to see him at the bank every day and was the owner of a company similar to ours.

He offered my dad a job, which he accepted, and worked there for about a year before the owner decided to close the business and go back to his native country. My father had the experience and the talent, saw the need for the services, and had a good rapport with the customers, so he decided to strike out on his own and built this company.”

Tony had the necessary experience from working at his prior job, so he knew what it took to keep the business running efficiently.

As Ted describes it, “Back then there was just a handful of contractors that did most of the work, so he concentrated on their needs and making them happy. Service, quality of product, and then price is what he always preached because if he could not give you the service or the product, it did not matter what the price was. His philosophy was that cheapest isn’t always best.”

Pictured from right to left, CEO Ted Pecoraro, COO Michael Pecoraro and GM John Sandy.

44 Utility & Transportation Contractor | june | 2021

“In the beginning,” Ted continues, “my dad had a billing clerk and a secretary, three guys in the warehouse, and two drivers.

The office had a small warehouse attached to it — maybe 1,500 square feet — where he stored the safety products and made the signs. Back then he had a heat applicator, and he would actually have to bake the sign to make the glue on the reflective sheeting

products in-house over the years, including the plastic A-frame barricade and rail, Type 3 barricade, a water barrier, several rigid and flexible reflectors, sign-mounted and barrier-mounted light brackets, and a PYTHON® cable protector (high voltage shunt protector), all of which are made in the USA.

adhere to the plywood. We had an area where the barricade lights were located. We’d take them off, change the batteries, clean the lens, and change the bulbs.”

Michael adds, “Back in the early 1990s we used steel barricades on the roadway with flashing lights. Today, the majority of the traffic control devices are made of plastic because it’s much safer.

If you are in a car and you run into a steel barricade, it turns into an extremely dangerous projectile. Given our focus on safety, we saw the need for improvement and began developing and distributing plastic safety products.”

Like many in our industry, that’s where Ted and Michael got their start in the business. Ted remembers going to the office with his dad on Saturdays as a child to help with small tasks. “In high school as soon as school let out, I’d go to the office and work in the warehouse for a few hours a day. When I finally graduated, I showed up for work dressed kind of nice – well I thought so – and he said, ‘Where are you going dressed like that?’ He gave me a few dollars and told me to go down the street and buy some clothes that I did not care about and sent me into the warehouse.

Michael and I both learned the job from the bottom up. I had to be in the warehouse for four or five years making signs, changing lights, and making deliveries. Then I moved on to seeing customers and gradually moved inside.”

“Over 30 years ago,” Michael continues, “we developed plastic A-frame and Type 3 barricades, and we had to conduct our own crash tests. We would go to an empty parking lot and Ted was our driver. We would intentionally drive into the barricade and then examine the results to ensure that the products we developed performed as required. Now when we test products, we send them out to professional testing facility where it’s done a lot more scientifically. We have National Cooperative Highway Research Program (NCHRP 350) crash letters — an older methodology — and our products are compliant with the Manual for Assessing Safety Hardware (MASH) guidelines — the newest test type developed by AASHTO. Our traffic control devices are engineered to meet and surpass all the latest crash testing requirements.”

Ted joined the company full time in June of 1983 and Michael just a few years later in 1989 after he finished college at Fairleigh Dickenson University. Since then, the Pecoraro brothers have been driven by their ingenuity and their focus on problem solving for every customer. The firm has developed numerous

Traffic Safety Service continued to grow and prosper. The Pecoraros found themselves working with the second and third generations of contractors their father had started with. As Michael puts it, “We have quality products with unparalleled service at a competitive price (I got that from my dad). When you put those three together it makes it easier to get repeat business, and your reputation spreads through word of mouth.”

TSS 25 Year Employee's Dedication, Loyalty & Professionalism.

Cover Story

“The industry has changed from a lot of lights to reflective sheeting and from steel to plastic, incorporating all the technology we have today,” John points out. “The three of us were in this industry before many of the products used today were invented or popularized.”

As John points out, “Our success also comes from how we develop and enhance some of our suppliers’ products. For example, Michael had an idea to improve a taxiway marker to make sure kestrels did not perch on them. Now that product design is used at every major airport in the Tri-State Area. That was about 12 years ago. Mike went and met the customer, saw the challenge, engineered different samples during the development phase, was involved with the testing of different prototypes, and now it is the industry standard. That is a perfect example of how Mike can take an idea and run with it, and that’s helped the company get to where it is today.”

TSS TMA closing a right lane on Route 22 East Bridgewater.

By the mid-1990s, the brothers were beginning to take the reins from their father. “He left everything in our hands,” Ted remem-

Utility & Transportation Contractor | june | 2021 45

Cover Story

in logistics as well. John describes the firm’s expertise in lane closures, highlighting their work on both the FDR Drive in New York City and on the Pulaski Skyway in New Jersey. “No one had ever closed the FDR before, just like no one ever closed the Pulaski Skyway before. We were in charge of closures on the contract for Pulaski and it was a complicated job because there are so many roadways with on and off ramps.”

TSS crews providing multiple lane closures on the NJ Turnpike MP 56.5 Bordentown.

bers, “but still checked up on us every morning to make sure the ship was still being steered in the right direction. He knew we were capable of running the business, but this was his baby and he had to make sure it was being fed properly, so to speak.”

Then, in 2004, tragedy struck when their father passed away suddenly. “It was a big loss to us personally, especially since we were used to seeing our dad every day. We did what we needed to do for the firm and kept his philosophies in mind by making sure we did everything the right way.”

Now at the helm, Ted and Michael have continued their father’s legacy, growing the firm and greatly expanding their products and services. General Manager John Sandy joined the firm in 2006, bringing with him decades of experience from prior work in Maryland and Delaware. Between the three there are over 100 years of experience, which has helped solidify the firm’s position as a leader in its field.

The firm also has quite a few “firsts” under their belt. In addition to designing the first plastic A-frame barricade and Type 3 barricade, they developed and began manufacturing an innovative water barrier in 2007 that can turn ninety degrees and make a full square with no additional pieces. They sold the first message boards in the state of New Jersey, which are now an industry standard. Michael himself installed the first flexible delineators in high impact on and off ramps on both the Garden State Parkway and New Jersey Turnpike for test pilot programs. As Michael puts it, “We always think of tomorrow’s future today.”

John remembers the NJ Turnpike Widening 6-9 project as one of the first truly high-tech jobs in the state. “Agencies liked the fact that people could get real time, updated live traffic info, and the widening project was a major job with over 100 pieces of equipment on it. It was all tied together, and TSS could track every piece of equipment on computers to make sure they were working as designed.”

Traffic Safety Service not only leads their field in technology, but

46 Utility & Transportation Contractor | june | 2021

“The FDR Drive project was a very original job,” John continued. “They were building sections of a hospital in a yard in New Jersey underneath the Driscoll Bridge and then barging sections of it across the river to New York. We shut down the highway and had dozens of ramps and streets to close — it was a major operation that required a highly coordinated effort.”

Michael adds, “Another job requiring TSS to close the FDR Drive involved the transportation of the 1,776-foot Spire sitting on top of The World Trade Center in New York City. Pieces of the Spire arrived at Chelsea Pier, and TSS made sure the roads were closed so the transport to the construction site went smoothly. We take pride in every job we perform, and to TSS and staff, it was more than a job; it was patriotic and made us feel proud to be Americans.”

“We make sure all of our employees are certified on many levels,” Ted says. “They get flagging cards, are OSHA certified, take

TSS equipment protecting work zone Route 202 South - Bridgewater

Rutgers classes, and take refresher classes. From supervisors to laborers, they are educated on every type of situation that could arise. We do this so that we can work as safely and efficiently as possible.”

Michael oversees the purchase of the vehicles and proudly notes, “We have over 100 late-model trucks spanning truck-mounted attenuators (TMAs), cone layer trucks, bucket trucks, bucket vans, service trucks, pick-up trucks, tractors, Landoll trailers, and other specialty safety service vehicles and always recycle out

older vehicles and equipment. Our massive rental equipment division has variable message boards, camera trailers, light towers, arrow boards, traffic sensors, speed trailers, portable traffic lights, concrete barriers, and ground mounted attenuators, to mention a few. Our priority is to make sure our customers are happy and their teams are safe.”

Looking forward, Traffic Safety Services has a bright future ahead. They have over 100 employees across several divisions and a national reputation for innovation and quality. They launched their online store this year and are shipping products nationally, expanding their already impressive footprint. Ted’s son, TJ, finishes college in May and is looking forward to growing with the firm. Like many of the contractors TSS works with, there is a sense of pride in seeing a third generation join the - TSS Management family business. Keeping with tradition, TJ has spent numerous summers in the warehouse working and learning just like his father and Uncle did.

A Special Thank you To All Of Our Loyal Customers

That same thoughtfulness also defines their corporate culture. The Pecoraros view their staff like family, and many, like John, have stayed with the firm for decades. “Our employees are a great asset to our many accomplishments,” says Ted. “Their knowledge, skills, dedication, and support drive today’s milestones and tomorrow’s opportunities. We would like to thank all our employees who contribute their professionalism

Traffic Safety Services’ dedication to service and instinct to innovate has built a solid foundation that will support them well into the future. UTCA congratulates them on this momentous occasion and looks forward to celebrating the next fifty years to come.

Cover Story

The firm’s emphasis on customer satisfaction has also helped maintain long-term relationships across the industry. “We would like to thank all our customers, who are too numerous to mention, and our key suppliers, as they are important to our past and current achievements and to our future growth,” says Ted.

and talents, especially our 25+ year veteran employees, for a job well done.”

Utility & Transportation Contractor | june | 2021 47

IN FO@TrafficSafetyService.com "Quality Products at Competitive Prices with Unparalleled Service!"

SCI GROUND MOUNT ATTENUATORS 100% Reusable !!

Sales

�

*

seruice

*

908-561-4800

Rentals

Delineator Tubes � �

Crash Gard Sand Drums

i

Traffic Cones

Traffic Drums

WATER FILLED BARRIERS SALES & RENTALS

with Tire Rings

@lfil@(]j)�[ID �@(WOOD'□���

TRUCK MOUNTED ATTENUATOR & BASKET TRUCKS

L I G H T

T 0 w E

Arrowboards

R

s

BUCKET VAN & BUCKET TRUCKS INCLUDING: 30', 45', 60', 85'

Variable Message Signs

EQUIPMENT SALES, RENTALS, REPAIRS & ROAD SERVICE Delineator Posts

•

END RDAOWDRK

V

S1gns{osts . � Accessories

�© ©@OO'illRi@l1 @m@� LANE CLOSURE SPECIALISTS

J. Sign Manufacturing and Related Products J. Lane Closure & Flagger Services J. Truck Fabrication & TMA Installation J. Highway Safety Products Sales & Rentals J. Barricades & Water Filled Barrier J. Taxiway Markers & Airport Products J. Traffic Control Plans J. Ground Mounted Attenuator Installation J. Emergency Management Trailer Packages J. Smart Work Zone Systems

A-Frame Barricades

, ··se·mi: :� ,,.,

' ,.

.

f

YE'AR�

.

s

A F E T y

A p p A R

E L

�- .

MANUFACTURERS 8c DISTRIBUTORS OF HIGHWAY 8c PEDESTRIAN SAFETY PRODUCTS MAKING PEOPLE, ROADS AND COMMUNITIES SAFER, SINCE 1971

Congratulations to Traffic Safety Service from yourfriends at

��EWPR/NCE) CONCRETE CONSTRUCTION COMPANY, INC. PAT MAISANO President JOHN MAISANO Executive Vice President VINCENT MAISANO Vice President

ROSEMARIE MAISANO Secretary MARIA MAISANO-SUDOL Office Manager

215 ELLEEN TERRACE HACKENSACK, NEW JERSEY 07601 E-Mail: MAISANO@NEWPRINCECONCRETE. COM 201-488-8208 Fax: 201-488-7259 ''An Equal ·Opportunity Employer"

� Super Products

®

CONTRACTOR TOUGH

VACUUM TRUCKS Request a Rental Today at 732.204.8000 107 Sunfield Avenue, Edison, NJ 08837

� Super Products

®

Super Products, an Alamo Group Company, is a leading manufacturer of vacuum trucks for a wide variety of applications.

800.837.9711 info@superproducts.com www.superproducts.com

I

I

A NAME Lynn A. Conover, CPA, CFBA

Tax Partner

lconover@curchin.com

William C. McNamara, CPA, CCIFP®

Partner

bmcnamara@curchin.com

Kevin P. Donovan, CPA, CCIFP®

Senior Audit Manager

kdonovan@curchin.com

Outlast uncertainty and overcome adversity with timely information, reliable insight, nimble action, and industry-specific accounting from The Curchin Group, a mainstay at the Jersey Shore since 1955.

Through stormy seas to smooth sailing, Curchin will help chart your financial course.

Our buoy marks the safe course for your business.

Tax/ Audit/ Business Consulting

Build a strong financial foundation for your business with Curchin.

URGENT ABOUT UPTIME SINCE 1933

\. 732.446.7600 Scan to watch a ZW220-6 walkaround

Like all Hitachi wheel loaders, the ZW220-6 is renowned for its reliability to achieve optimum performance with minimum downtime; proven to operate at high levels of efficiency, on a wide range of job sites.

At Highway Equipment, we are SOLUTION PARTNERS. We help you find the right equipment and features, like the Hitachi ZW220-6, to get YOUR job done productively and predictably.

Construction and General Laborers' Union

RN

RAYMOND M. POCINO BUILDING 604 BORDENTOWN ROAD TRENTON, NEWJERSEY 08610 (609) 291-9100 (609) 291-0158 FAx

AFFILIATED WITH: NJ STATE AFL-CIO NJ STATE BUILDING & CONSTRUCTION TRADES COUNCIL

172

PARENT ORGANIZATION LABORERS' INTERNATIONAL UNION OF NORTH AMERICA

C. z -

Anthony Capaccio

President- Business Manager RaymondM. Pocino resident Emeritus Brendan Rosenberg, Vice President William Coffin Jr., Recording Secretary

Folsom Office 1100 Blackhorse Pike Folsom, NJ 08037 (609) 567-4488 (609) 567-9498 FAX

HerbertJaudon, Secretary-Treasurer ouglas Small, Sergeant-at-Arms

Executive Board Members Joseph ,DeMarco, Jr. Alfonso Guarraggi Christian Cole Auditors JohnBohme Mark Griffith RussellJones Jr.

Ocean County Office 335 9 Unit#5 Lanoka Harbor, NJ 08734 (609) 549-0331 (609) 549-0332 FAX

us

Drilling, Blasting, Roads, Sewers, Bridges, Utility work, Paving, Tunnels, Dams, Hazmat, Excavations, Concrete Work on Heavy and General Construction jurisdiction Counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Ocean & Salem ®�19

• Safe roads, bridges, trains and tunnels • Healthy water and sewer systems • Modern energy, including solar, wind and natural gas

BETTER BUILDING BEGINS HERE WWW.IUOE825.0RG GREG LALEVEE IUOE General Vice President Business Manager, Local 825

FOUNDRY

FOUNDRY 800 BERGEN ST. HARRISON, NJ 07029 Ph: 973-483-5480 Fax: 973-483-1843 sales@campbellfoundry.com

MATERIALS

BERLIN YARD 175 JACKSON RD. BERLIN, NJ 08009 Ph: 856-767-0400 Fax: 856-767-4320 greg@bridgestate.com

MATERIALS 1235 HARRISON A VE. KEARNY, NJ 07032 Ph: 201-998-3765 Fax: 201-998-3764 sales@campbellinaterials.com

in the lobby By: zoe baldwin

U

Since our last installment of In the Lobby, Governor Murphy has taken action on several bills relevant to our industry: Design-Build As previously reported, UTCA has been working to establish procedures for design-build projects for the past several years. The new law establishes the procurement tool statewide for both local governments and state agencies. The bill has gone through several amendment cycles as various agencies and departments weighed in alongside industry and labor. UTCA worked with Assembly Majority Leader Lou Greenwald as well as other partners throughout this process and is glad to see the measure finally enacted.

Expansion of Project Labor Agreements This newly signed law allows project labor agreements on all types of public works projects over $5 million. Additionally, the bill permits as part of the PLA provisions to provide on-the-job or off-the-job outreach and training programs for minority group members, members of disadvantaged communities, and women, which may include measures giving them priority in referral and placement from the hiring halls of signatory unions.

I-Bank Expansion This new law expands the purview of the transportation side of the I-Bank to finance aviation and marine projects, as well as make it easier for the I-Bank to provide emergency, relief, or disaster loans to clean water, drinking water, or transportation projects in the event of an emergency like the COVID-19 pandemic. The I-Bank is one of New Jersey’s most efficient and successful programs, and UTCA was glad for the opportunity to support this expansion as it will help facilitate projects statewide.

Electronic Permit Processing Review System This measure requires the establishment of a web-based system allowing for the electronic submission of applications for construction permits, plans, and specifications pursuant to the "State Uniform Construction Code Act;" for the electronic review and approval of applications, plans, and specifications; for the scheduling of inspections; and for the exchange of information between the applicant, the applicant’s professionals, and the department or enforcing agency during the review process. UTCA supported this bill as it went through the legislative process.

Transportation Bank Governor Murphy has signed into law legislation that will eliminate the five percent down payment requirement for local bond ordinances involving New Jersey Infrastructure Bank transportation projects. The new law removes a down payment that is not required for projects funded by the water bank, bringing parity to the two sides of the program.

UTCA worked to get this legislation introduced and passed in order to facilitate transportation funding opportunities in more communities statewide, and thanks sponsors Senator Gopal and Assemblyman Houghtaling for all of their work.

Legislative News

TCA CEO Bob Briant Jr. in May was appointed as Chair of the Board of Directors for the New Jersey Infrastructure Bank, where he will continue his efforts to ensure communities and utilities receive the financing necessary to advance critical water infrastructure and transportation projects.

This appointment is especially poignant as our state and nation are poised to greatly increase infrastructure funding as a means of economic recovery from the COVID-19 pandemic. Bob has served on the Board since 2013 and builds upon the legacy of his father, Bob Briant Sr., who served on the Board for 20 years and as Chair for ten. UTCA hopes you will join us in congratulating Bob on this much-deserved ascension.

NJ Buy American Act Governor Murphy has conditionally vetoed legislation that would require State agency highway and bridge projects, where feasible, to use American steel. The conditional veto was an effort to have the State legislation mirror existing federal procurement. The Governor's action sends the bill back to the Senate for consideration.

A troubling trend that UTCA has been fighting is a recent uptick in legislation aiming to upend the integrity of our low bid system by creating price preferences for certain materials and disadvantaged businesses. Below are the bills currently introduced, one of which we were able to amend and the rest of which we continue to oppose.

Service-Disabled Veteran-Owned Business Price Preference – A4042/S1866 (Gopal/Downey) Legislation has advanced that would create a price preference of up to 10 percent for bids on state contracts from qualified service-disabled veteran-owned businesses (DVOB). UTCA has opposed this legislation as it undermines the low bid system and will increase project costs.

Utility & Transportation Contractor | june | 2021 57

Additionally, NJ Transit, NJDOT, and Port Authority each have existing DVOB programs in place and UTCA believes adjusting or expanding this existing framework is the more appropriate avenue to assist veteran-owned businesses.

Legislative News

Price Preference for Businesses Owned by Women Veterans or Women in Military Service – A5600/S3765 (Tucker/Gopal) This legislation is essentially the same as above, but in this instance creating a 10 percent price preference for businesses owned by women veterans or women in military service. As of this writing, the bill has not advanced, but UTCA will oppose this bill should it be posted to an agenda.

Low Carbon Concrete Price Preference – A5223/S3732 (Zwicker/Greenstein) UTCA has opposed legislation that would establish a price preference for low embodied carbon concrete on projects bid by State agencies. This bill would also upend the low bid system and has the potential to increase liability for contractors who utilize materials not called for in project specifications. While we did testify against the bill in committee, at the time of this writing UTCA has been working with bill sponsor Assemblyman Zwicker, who has shown an openness to amendments but has not yet committed. We will keep you updated as our efforts progress.

Low Carbon Concrete Pavers – S3091/A4933 (Addiego/Burzichelli) Legislation has advanced that would require builders to offer unit concrete products that utilize carbon footprint-reducing technology as option in new construction and establish tax incentives and State and local purchasing requirements for unit concrete products that utilize carbon footprint. As introduced, the bill would have preferenced contractor bids that used low carbon concrete. UTCA was able to secure language that requires the product be included in specifications and narrows the definition of “concrete products” to exclude ready-mix concrete, sand, stone, gravel, or bituminous concrete or asphalt. The bill has passed the full Senate and awaits a floor vote in the Assembly.

We also have a few updates since the last magazine on ongoing issues of concern to the industry.

Lead Service Lines – S3398/A5343 (Singleton/Schaer) Legislation has been passed by the full Assembly that would require all drinking water systems to create an inventory of lead service lines and develop a schedule for replacement. UTCA testified in support of this legislation as it has the potential to create a steady stream of replacement projects in communities across the state.

Our testimony was quoted in statewide press highlighting this important bill. We expect the measure to be heard in the Senate later this year.

Prevailing Wage Database – S1260/A1171 (Singleton/Oroho) A bill has passed the Assembly which would require the Commissioner of Labor and Workforce Development to create a statewide database of the written statements regarding payroll information that public works contractors and subcontractors file. Additionally, the bill requires contractors to file payroll statements with both the relevant public body and the commissioner. Under current law, contractors are only required to file these statements with the relevant public body.

58 Utility & Transportation Contractor | june | 2021

Violation disclosure – A801/S3502 (Verrelli/Addiego) Requires bidders seeking State contracts to disclose the past two years of labor and employment law violations. It then authorizes the head of a State agency to "evaluate the seriousness of any violations reported and, in the case of violations that represent a significant threat to the health or safety of employees or that demonstrate a disregard for the law, may disqualify that bidder or business entity from pursuing the contract." UTCA opposed the bill in the Assembly where it passed with bipartisan support; it has passed Senate committee and is set up for full passage in the upper chamber.

Please consider supporting the UTCA PAC, Constructors for Good Government UTCA continues to be a leading voice for the infrastructure construction industry in Trenton and Washington, DC. Whether it is providing expert testimony before business and legislative groups or positively effecting the legislative process, UTCA stands alone in its record of achievement for our industry. This success is only possible with your support and more importantly, by supporting the industry PAC: Constructors for Good Government. (We will be reaching out to you shortly and hope you will consider contributing as a robust PAC greatly strengthens our voice. Thank you for your continued support.)

Members have been invoiced for PAC participation. Please take a moment to review the invoice and find a way that you can participate in our PAC. Also new this year is online credit card contributions. Please go to our home page (www.utcanj.org) and click “Donate to Our PAC.”

constructors for good government 2021 contributors UTCA would like to thank all firms that have contributed to our Industry PAC for 2021 President’s Club

J. Fletcher Creamer & Son Crisdel Construction D’Annunzio & Sons George Harms Construction Montana Construction Mount Construction Northeast Remsco PKF Mark III South State Inc. Union Paving & Construction

Governor’s Level Schifano Construction

Ambassador Level

Aspen Landscaping JRCRUZ Corp P&A Construction M.L. Ruberton Construction Traffic Lines Zone Striping

Leadership Level

Anselmi & DeCicco B. Anthony Construction Bayshore Recycling Corp.

Black Rock Enterprises Haines & Kibblehouse R.E. Pierson Construction Smith-Sondy Asphalt Construction

Platinum Level

Green Construction Metra Industries New Prince Concrete Construction Pillari Bros. Construction Corp.

Yonkers Contracting Company

Gold Level

Advanced Coring & Cutting Corp.

Advanced Drainage Systems Bil-Jim Construction Co. Brent Material Company CATS Sweeping Company Wrench Garden State Precast Kemsco Construction & Equip.

Mathis Construction Ritacco Construction SJA Construction Sa & Sons Construction V.A. Spatz & Sons UC Management Unicorn Construction

Silver Level

B&W Construction BCA Insurance Group Caterina Supply Inc. Edward H Cray The Curchin Group Genova Burns LLC Landmark Surveys LLC MV Contracting Inc. Perna Finnigan

Rencor, Inc. Renda Roads Scafar Contracting TKT Construction Trench Technologies Trevcon Construction Walters Marine Construction Zack Painting Co.

Bronze Level

Capital Steel Service LLC Clearsite Industrial LLC Commonwealth Construction Co. Coppola Services Diacon USA Patrick DiCerbo Holman Frenia Allison PC Lucas Construction Group J.C. MacElroy Co. Oxford Construction Services James Reid Reivax Contracting Zuccaro Inc.

If your firm is interested in donating to Constructors For Good Government, please visit www.utcanj.org and CLICK ON, Donate To Our PAC or contact Dave Rible at (732)292-4300 or dave@utcanj.org

Utility & Transportation Contractor | june | 2021 59

LiUNA! Eastern Region

The Power of

PARTNERSHIP • Skilled Workforce • Federally-Approved Apprenticeship • Government Relations • Industry-Accredited Training Programs • Business Development • Occupational Safety & Health

FOLLOW US f "# @ @LiunaEasternReg

B

uilding relationships with contractors, developers, decision-makers, and project owners is what we do to build things right-on time, on budget, no surprises, no problems. LIUNA delivers a

diverse, skilled and productive workforce, as well as the professional and industry support to move your projects and business forward. Working together works best and we practice this every day.

That's the power of partnership. That's LIUNA.

LABORERS' INTERNATIONAL UNION OF NORTH AMERICA EASTERN REGIONAL OFFICE

Raymond M. Pocino, Vice President and Regional Manager

LIUNA, Eastern Region 1104 Interchange Plaza, 3rd Floor I Monroe Township, Nf 08831

-

• -NEW JERSEY STATE­ ' VETERANS CHAMBER Ill COMMERCE

Feature Story

spotlight on veteranowned businesses of the utca

T

he UTCA is proud to have veteran business owners in its ranks, and in this story, we’ve profiled five of them: Jeff Cantor, Tim Allen, Chris Lopez, David Earp, and Lisa

Post.

Although they served in different branches of the military and work in various fields, their stories resonate with each other, bringing to the surface commonalities that suggest the ways in which veterans are an asset to our industry. Many utilize the expertise they developed in the military in their current work, drawing on a vast body of technical knowledge. Their leadership experience translates into the business world as well — a common theme of their stories is putting the team first and valuing tight-knit collaboration. Even after returning to civilian life, the veterans we spoke to continue to serve their communities in meaningful ways, such as volunteering, fundraising for veterans’ causes, mentoring West Point and ROTC candidates, and advising other veterans on business ownership.

Jeff Cantor, Lima Charlie Construction Jeff Cantor, Chief Executive Officer of Lima Charlie Construction, joined the US Army in 1985 as a Private First Class. He made it to the rank of Sergeant before he was commissioned in 1987 as a second Lieutenant in the Infantry, where he served in various roles at the company and battalion level. In 1993, Jeff decided to reclassify in military intelligence, was trained and certified as an imagery analyst, and received his Top Secret security clearance. He worked for a couple of “three letter” agencies and did some real-world missions while commanding a detachment of specialized soldiers.

In 1997, Jeff transferred branches once again to Civil Affairs.

He was the Bravo Company, 404th Civil Affairs Commander when he deployed to Iraq for Operation Iraqi Freedom. Jeff was attached to the 3rd Battalion, 3rd Special Forces Group, where he infiltrated into Northern Iraq as part of Task Force Viking.

His company was the first Civil Affairs company to be infiltrated into Iraq. As a Civil Affairs commander, Jeff was responsible for the city of Kirkuk, Iraq, which had a population of 1.2 million ethnically diverse people. He and his soldiers helped build 285

62 Utility & Transportation Contractor | june | 2021

Jeff Cantor on an Iraqi T-55 tank in Kirkuk, Iraq, after battling Iraqi forces and Saddam loyalists. Colonel Cantor helped rid the area of Republican Guard forces and helped free oppressed people.

schools, built a new police academy, created a new provincial government, repaired the electrical grid, and completed many other civil projects. He created an employment center which put over 8,500 people to work and stopped an insurgency from taking hold in the province. His greatest accomplishment from the war was bringing all his soldiers home alive and in one piece.

Jeff deployed again in 2009 to Afghanistan where he oversaw 14 provincial reconstruction teams throughout Eastern Afghanistan. He had a budget of $640 million dollars to build new roads, power grids, and protective measures for coalition forces and Afghan national police. In his last several years in the military, Jeff was responsible for international missions and exercises in the Balkans. He assisted all of the Balkan nations with antiterrorism measures and helped build capacity to address the overwhelming migrant flow from the Middle East and Africa.

After retiring from the military in 2017, Jeff met several times with his friends Anthony and Lionel Lucas and decided to build a heavy civil construction company based out of Freehold, New Jersey, and in 2018, Lima Charlie was born. In military phonetics, Lima Charlie means Loud and Clear, indicating that things

Colonel Jeff Cantor at the Springfield Avenue PSEG project in Union, NJ.

are good. Lima Charlie was growing nicely when the pandemic hit, and although operations slowed in the first half of 2020, Jeff decided not to accept a paycheck to keep his employees paid and working.

Jeff applies the work ethic and leadership that grew from from his military service to the helm of Lima Charlie Construction, and the quality of the company’s work earned them NJBIZ’s Emerging Business of the Year award in 2020. Jeff ’s goal is to create pathways for other veterans to get into the construction industry. He routinely counsels other veterans in business ownership and runs the NJ State Veterans Chamber of Commerce.

He wants Lima Charlie Construction to be the “go-to” disabled veteran-owned business and small business enterprise in the industry, advising larger construction companies on meeting their state-mandated disabled veteran-owned business goals. He also seeks to raise awareness for many veterans’ causes and has raised hundreds of thousands of dollars by organizing an annual motorcycle ride, Blues and BBQ festival, and golf outing.

Anyone who wants to speak to Jeff can get in touch with him at jeff@limacharlieconstruction.com

AES President Tim Allen, right, as a Platoon Leader in Afghanistan 2010.

Tim Allen, Allied Equipment Services Allied Equipment Services (AES) is led by Tim Allen, a former US Army Captain and 2007 graduate of the United States Military Academy at West Point. Upon graduation, Tim served in various positions as a Field Artillery officer, deploying to Hawijah, Iraq and Mazar-i-Sharif, Afghanistan with the 1st Brigade Combat Team, 10th Mountain Division out of Fort Drum, NY. After leaving the military, Tim earned his master’s degree in business from New York University while simultaneously found-

An AES 50l telehandler supporting an infrastructure project in a remote part of upstate New York.

ing AES. In business since 2015, AES supplies hand tools and industrial materials as well as equipment rental services. AES has grown annually, which has allowed it to expand into offering a full range of silt fence, geotextiles, and erosion control materials while continuing to grow its rental fleet.

Although no longer wearing the uniform, Tim continues to serve his community. A West Point Field Force volunteer since 2015, Tim currently serves as the Congressional District Coordinator for New Jersey’s 8th Congressional District, where he mentors and advises candidates applying to West Point and ROTC. As a Vice-Commander of Hoboken American Legion Post 107, he is helping to reduce veteran homelessness in Hudson County.

Feature Story

Lima Charlie has completed work for the NJ Turnpike Authority, doing main line highway milling and paving operations.

They have undertaken utility projects in various municipalities, worked on Substation 7 for the Port Authority, repaved Springfield Avenue for PSE&G, and completed drainage solutions, sanitary sewer lines, water main repairs, and new sidewalks for many different customers.

Chris Lopez Chris Lopez, a member of the UTCA, is preparing to launch a new business software for the construction industry.

He describes his experience in the military as “nothing short of incredible,” noting that “Waking up every day, donning the uniform of a United States Marine, and having the privilege of serving sideby-side with men and women from all corners of the nation who genuinely put country above self was

Chris Lopez

Utility & Transportation Contractor | june | 2021 63

Feature Story

once-in-a-lifetime stuff.”

When reflecting on his time in the Marines, Chris recounts how military service unites people from across the country, bridging geographic and cultural divides. “One of the greatest gifts from my military service,” he explains, “was seeing firsthand that our country is truly full of awe-inspiring people. I led Marines who grew up without running water, came from humble beginnings, broken families, even growing up exposed to gang violence; from the streets of Camden to the hills of Montana, the beaches of California and down in the Bayou — they came from everywhere.

And they taught me what ‘everywhere’ was like — their customs, traditions, how things were back home. I learned from my Marines out of Texas and Tennessee that barbeque wasn’t about throwing hot dogs and hamburgers on a grill like I thought as a Jersey kid, but rather a culinary artform with bragging rights, too!”

ing the Navy, David studied at the Tuck School of Business at Dartmouth College and earned a Master of Business Administration.

Chris speaks to the perseverance and teamwork that his group demonstrated in the face of arduous circumstances, working in the middle of the desert in temperatures as high as 128 degrees.

“When they wore the uniform and worked,” he explains, “whether it was serving in our communications section, operating our howitzers, or performing maintenance on our 30 trucks and Humvees, they banded together and did it to the absolute best of their ability, over and over again.”

Now in the construction sector, Chris feels that he owes much of his success to his time as a Marine. He views the professionalism and work ethic fostered by military service as an asset, explaining that “The expectations we had of each other every day as Marines, I would argue also applies in the business world — showing up to work or meetings 10 minutes early, preparing for tomorrow the night before, looking sharp, clean shave, haircut, treating people professionally, following up, doing what you say you’re going to do, being technically and tactically proficient, communicating clearly to your people, and putting the team first, among many other tenets. Serving will always be the greatest honor of my life.”

David Earp

In addition to exposing him to diving, David’s military career in special operations reinforced the immeasurable value of experience when working in a highly specialized field. With that in mind, Walker Diving has a management team with over a hundred years of diving experience that can be utilized to plan projects and solve complex underwater challenges, regardless of the size of the project. They currently provide a wide variety of diving and underwater construction services primarily in New Jersey, New York, and Pennsylvania. Walker Diving is one of the few diving companies in the area that can bond and execute

David Earp, Walker Diving Underwater Construction and Walker Cutting Services David Earp draws on his service in the Navy as President of Walker Diving, which was founded by Glenn Walker in 1957 to provide diving services in Philadelphia. Since its founding, Walker Diving has expanded to offer a wide variety of specialized services and has transitioned ownership several times, with David Earp purchasing the company in 2009.

David Earp grew up in South Jersey and attended the US Naval Academy, where he studied Ocean Engineering with a focus on underwater life support systems. After training as a diving officer and serving on the diving and salvage ship USS Grasp, he attended SEAL training. As a Navy SEAL, David served at several commands and traveled much of the world including Iraq and Afghanistan. His final tour in the Navy was with SEAL Delivery Vehicle Team 2, which focused on underwater operations and was one of the largest diving commands in the Navy. After leav-

64 Utility & Transportation Contractor | june | 2021

Dive Platform in NYC

multi-million-dollar underwater construction projects as either a prime or subcontractor while also maintaining a service branch that provides the full spectrum of diving service work — from

Lisa Post, BCA Insurance Group

Walker Diving maintains a full suite of diving equipment and underwater tools to complete specialized projects efficiently.

They have one of the largest inventories of diving life support equipment and hydraulic tools in the region and maintain a wide variety of truckable floating equipment to support their work.

Recent growth has included purchasing and fully equipping several barges. Walker now has three barges with seventy-foot-long self-picking spuds that can operate independently throughout most of the New York harbor area. The barges are currently equipped for a project which requires epoxy and grout pile encapsulation with space to store and prepare materials as well as mix and pump grouts, but they can be readily reconfigured for other diving project needs.

Lisa Post led Edward J. Post Company, Inc. from 1988 to 2019 as president and owner. She acquired the company, which specializes in surety bonds for construction firms, from her father Edward Post, who founded it ten years earlier in 1978. In March 2019, she sold the company to BCA Insurance Group, where she now serves as Director of Surety.

In recent years, Walker Diving has been a part of some interesting underwater projects involving underwater wire sawing.

In 2019, with a growing body of experience and a newly hired manager, Walker Diving started offering concrete cutting services under the name Walker Cutting Services. The division is led by a management team with decades of experience in cutting and coring in this market. Doug Walker — of no relation to the founder of Walker Diving — and his team have decades of experience with some of the most complex cutting challenges in the region. Walker Cutting Services has a full spectrum of specialized cutting equipment and provides the same high-quality service to many of Walker Diving’s customers. Though most of the cutting work is not marine-related, several recent projects involved underwater wire sawing or core drilling.

Bernice I. Post, left with 2nd Lt. Lisa A. Post USAR (United States Army Reserve)

Feature Story

inspections and cleaning to potable water or hazmat diving to cable-locating and long penetration diving.

Lisa enlisted in the Women’s Auxiliary Corps in 1973 through the Army’s Early Entry Program, attending basic training at Fort McClellan, Alabama. She later joined the Army Reserves to attend college fulltime, earning a bachelor’s degree in Health Science and a Master of Science in Health Administration from the University of Missouri. In 1981, she was promoted to 2nd Lieutenant by direct commission in the Medical Service Corps, and in 1993, she retired from the Individual Ready Reserves.

Lisa notes that her military training taught her not only combat-related skills like “weapons and explosives handling, map reading, and survival techniques” but also how to carry herself with confidence and resilience, imparting a whole host of interpersonal techniques that she brings to her work as a civilian. “I take all of the skills I learned through my military experience and apply them every day,” she explains, “It’s an adventure.”

It is with tremendous gratitude that we thank Jeff Cantor, Tim Allen, Chris Lopez, David Earp, Lisa Post, and all the veterans of the UTCA for their sacrifice and service to our great nation. Our debt to these individuals, and all the many veterans who work in our industry, can never be paid in full! From the Revolutionary War to our current military actions, our men and women have given of themselves so that we, as Americans, can enjoy our lives and have the freedom to raise our families, work our careers, and worship our God as we see fit. For the great gift of protecting these liberties, we will be eternally grateful. As Claudia Pemberton once said, “America without her Soldiers would be like God without His angels.”

Lisa Post

May God forever bless our veterans and may God bless America!

Utility & Transportation Contractor | june | 2021 65

pes th who serve -�� esent \Ct> protect and we ern

� , e�

CONSTRUCTION RISK PARTNERS

-

is a leading

independent brokerage firm dedicated solely to the construction industry. We combine specialized expertise with a customer-focused culture that enables our clients to achieve their strategic objectives To engage one of our specialists visit our website: constructionriskpartners.com or call, (908) 566-1010

Foley, Inc. is proud to honor these Veteran-owned UTCA members

Lima Charlie Construction BCA Insurance Revenue Engine Walker Diving Underwater Construction Allied Equipment Services

Signs & Safety Devices, LLC

INC

ETV

SIBILE

SERVICE DRIVEN

QU LllY ASSURED

SBE & WBE CERTIFIED Fabrication & Installation of Construction and Permanent Signs Crash Truck, VMS & Arrow Boards­ Rental and Repair

SPECIALITIES • CONES

• MPT SERVICES

• DRUMS

• LANE CLOSURES

• BARRICADES

• RUTGERS CERTIFIED

• LINE STRIPING

TRAFFIC CONTROL

• SEAL COATING

TECHNICIANS

C

FDR BOOKING +732 302-3007

Ii [!)_. �

www.signsandsafetydevices.com

◄

The ELEC825 brings together a cavalcade of professionals from the union and construction industry, policy wonks, business experts, strategic communicators and grassroots community activists to deliver for members and contractors.

r

1

1

TRIF &MODUGNO -- ATTORNEYS AT LAW --

Thank You Veteran-Owned UTCA Members for Your Service LIMA CHARLIE CONSTRUCTION BCA INSURANCE REVENUE ENGINE WALKER DIVING UNDERWATER CONSTRUCTION

Congratulations TRAFFIC SAFETY SERVICE Celebrating 50 Years in Construction NEW JERSEY 89 Headquarters Plaza North Tower, Suite 1201 Morristown, New Jersey 07960 973-547-3611

NEW YORK 11 Broadway Suite 615 New York, New York 10004 917-477-2999

www.tm-firm.com

PENNSYLVANIA 1700 Market Street Suite 1005 Philadelphia, Pennsylvania 19103 267-869-0050

contractors face unsettled question of whether they may require employees to get a covid-19 vaccine By: kevin s. brotspies and greg trif, trif & modugno llc

A

fter a seemingly interminable year stacked with numerous novel challenges, the widening rollout of COVID-19 vaccines brings with it new questions about policies regarding employee vaccination. Indeed, contractors contemplating the return of their entire workforce on a full-time basis are acutely interested to know whether they can, should, or must require their employees to be vaccinated. Like many other COVID-19 related questions, this issue is new and developing.

Initial guidance from state and federal authorities, however, supports a contractor’s right to require its employees to be vaccinated.

Notwithstanding the benefits that the vaccines offer to both contractors and their employees, mandatory vaccination policies are unlikely to be met with unanimous acceptance by employees. Whether a contractor may require vaccinations will require a delicate balancing of an employee’s individual rights against the contractor’s obligation to provide a safe and accommodating workplace.

Both the Equal Employment Opportunity Commission (EEOC) and the State of New Jersey have released statements supporting employers’ right to require vaccines. However, contractors who are considering a mandatory vaccination policy must be mindful that such a policy cannot be absolute, and there are various factors that a contractor must consider in crafting and enforcing its policy.

Under the Americans with Disabilities Act (ADA), a contractor is permitted to have policies that “include a requirement that an individual shall not pose a direct threat to the health or safety

Federal law also requires a contractor to accommodate an employee whose sincerely held religious belief, practice, or observance precludes the employee from complying with a mandatory vaccination policy, unless such accommodation would cause an “undue hardship” on the business. An “undue hardship” is created by an accommodation that has more than a de minimis burden on the contractor. Given the sensitive and often personal nature of an employee’s religious beliefs, the EEOC suggests that the contractor assume that an employee’s request for a religious accommodation is based on a sincerely held belief and only request additional information from the employee where the contractor has an objective basis for questioning the employee’s sincerity.

Labor Relations

Contractors, who have spent the last year taking innumerable precautions and incurring significant expenses to protect against the spread of COVID-19 in their workplaces and jobsites, are undoubtedly cognizant of the benefits of having a fully vaccinated workforce. Company-wide vaccination would be among the strongest protections against the spread of COVID-19 in the workplace, thus mitigating potential liabilities, reducing healthcare costs, and promoting increased attendance and productivity. As the country awaits further guidance from the Centers for Disease Control and Prevention (CDC), vaccination could open the door for the types of business travel and in-person interaction that existed pre-pandemic.

of other individuals in the workplace.” If a mandatory vaccination policy screens out an employee with a disability, however, the contractor must determine whether unvaccinated employees would pose a “direct threat” due to a “significant risk of substantial harm to the health or safety of the individual or others that cannot be eliminated or reduced by reasonable accommodation.”

The EEOC directs employers (including contractors) to consider four factors to determine whether such a direct threat exists: (i) the duration of the risk; (ii) the nature and severity of potential harm; (iii) the likelihood that the potential harm will occur; and (iv) the imminence of the potential harm. Then, if the contractor determines that the employee who is unable to be vaccinated indeed poses a direct threat to the workplace, the contractor must consider whether it can reasonably accommodate that employee. Such reasonable accommodations may, depending upon the circumstances, include requiring the employee to wear extra personal protective equipment, allowing the employee to work remotely, or permitting the employee to take a leave of absence.

When determining the reasonableness of accommodations, the contractor should consider facts about the employer’s workplace, the employee’s particular job duties, whether there is an alternative job that the employee could perform, the degree of importance to the contractor’s operations that the employee be vaccinated, and any applicable Occupational Safety and Health Administration (OSHA) standards.

As part of a vaccination policy, contractors may require employees to provide proof that they have received a COVID-19 vaccination without running afoul of the ADA’s provisions regarding disability-related inquiries. The EEOC has advised that a con-

Utility & Transportation Contractor | june | 2021 71

tractor’s simple request for proof of an employee’s vaccination is unlikely to elicit information about a disability and is thus not a disability-related inquiry. However, follow-up questions by contractors, such as inquiring as to why the employee did not get vaccinated, could elicit information about a disability and would be subject to the ADA’s requirement that such inquiries be “job-related and consistent with business necessity.” When obtaining proof of vaccination from an employee, contractors should advise the employee to share only the proof of vaccination and not to disclose additional medical information, so as to avoid implicating the ADA.

Labor Relations

Evidencing the rapid development of this novel legal issue, at least two lawsuits against employers’ vaccination mandates have been filed thus far — one by a corrections officer in New Mexico and another by public school teachers in California. These complaints — both filed by civil servants against public employers — similarly allege that employers cannot compel their employees to get the vaccine where such vaccine has, to date, only been authorized by the CDC under an emergency use authorization (EUA). These plaintiffs allege that, under the EUAs, individuals must be given the option to “refuse administration of the product;” accordingly, they contend that an employer’s vaccination mandate conflicts with the individual discretion provided for in

72 Utility & Transportation Contractor | june | 2021

the federal statute governing EUAs. Although it is expected that the EUAs will be supplanted by permanent licensure approvals from the Food and Drug Administration (FDA), these cases (and others to follow) are likely to set precedent with respect to employees’ challenges to vaccine mandates. It bears further note that these cases involve public employers and, as such, there may be different considerations from those impacting private sector employers with at-will workforces.

To date, all signs seem to support a contractor’s right to require its employees to get vaccinated against COVID-19. Notwithstanding that legal support, contractors may find it preferable, for various reasons, to encourage or incentivize their employees to obtain a COVID-19 vaccine rather than mandate it.

Kevin S. Brotspies, a member of Trif & Modugno LLC, represents businesses, including contractors and subcontractors, in all areas affecting the construction industry, including in employment and labor matters. Greg Trif, a member of Trif & Modugno LLC, represents developers, general contractors, subcontractors, and suppliers in all areas of law affecting the construction industry including contract claims, project crisis management, labor and employment disputes, and business torts.

YEARS

Railroad Construction Company, Inc. (RCC) has over nine decades of experience in the Originally offering construction industry. railroad track construction and maintenance services, the company has grown into a full service General Contractor proficient in

executing, administering and coordinating all aspects of construction necessary to complete projects on time and within budget. 'I'he RCC Team has the proven experience and capability to design, construct and maintain roads, bridges, utility systems and t·ailroad facilities.

tS>C()N'st,r�

Traffic Safety Service

20'..!0

ENR

TOP6QO �

.... @ .,n.,

www.RailroadConstruction.com Rai'.lroad Construction Company, Inc. is an EEO/AA Employer and on ESOP Company.

'@ 192,;.15fl.,

RCC Headquarters

75-77 Grove Street Paterson, NJ 07503 Phone: 973-684-0362 Fax: 973-684-1355

Valvoline Lubricants• Skid Tanks & Dikes Pumps• Ultra Low Sulfur Diesel Gasoline • Kerosene Bio-Diesel • DEF Direct to the equipment fueling of construction equipment

TAYLOR OIL CO.

"Fueling America� Progress!"

Somerville, NJ Bellmawr, NJ Lakewood, NJ Philadelphia/Harrisburg, PA Delaware Baltimore, MD Boston, MA Portland, CT Providence, RI Northern VA/DC

908-725-9200 856-262-3133 877-240-5588 800-543-3835 800-543-3835 410-636-9000 800-894-3835 860-342-2122 401-431-5060 410-636-9000

,,

True & Associates INSURANCE • SURETY • BENEFITS Celebrating over 35 years in business

Congratulations to

Traffic Safety Service Celebrating 50 Years in Construction and to

Lima Charlie Construction BCA Insurance Revenue Engine Walker Diving Underwater Construction Veteran Owned UTCA Members

Thank you for your service to our country!

"Advising for today, insuring for tomorrow" 6 Leigh Street Cllnton, NJ 08809 908-713-6711

...

325 North Avenue East Westfield, NJ 07090 908-232--0760

www.trueassoc.com

Proud member of the UTCA

30 Wall Street, 8111 Floor New York, NY 10005 212-766-1400

risks and opportunities: clean energy transition By: dan kennedy, director of environmental & utility operations

Y

ou have read in this column in the past few years about the risks and opportunities for the construction industry as the State of New Jersey (and now the federal government) pushes for the total conversion of New Jersey’s energy profile to clean energy by 2050. Governor Murphy (and President Biden) campaigned on this issue and has focused a large amount of his administrative attention on it since taking office.

The construction of new energy facilities offers clear opportunities for public works contractors, but we must be wary as the climate data being used to promote renewables is also being used to stymie development in other arenas. UTCA has been working on both fronts, advocating projects and policy that will help New Jersey diversify its energy portfolio while fighting the more extreme initiatives that misappropriate the data to justify impractical bans on development and traditional fossil fuel use.

UTCA supports strategies to accelerate utility scale renewable and cleaner energy generation and storage, including but not limited to solar and offshore wind. New, in-state cleaner energy production should be expanded, including offshore wind, utility scale solar, nuclear, and natural gas. UTCA has and will strongly oppose any moratorium on fossil fuel infrastructure in the foreseeable future.

While we have been rightly focused on the risks, it is only fair to track and report on the opportunities for the construction industry with these policy shifts. There are signs that long purported opportunities for the construction industry are coming close to fruition, and UTCA has been working with relevant state agencies to ensure that our members are well-positioned to win the work ahead.

Clean Energy and Offshore Wind New Jersey’s Energy Master Plan (EMP) includes strategies to “accelerate the deployment of renewable energy and distributed energy resources” and “modernize the grid and utility infrastructure.” UTCA supports planning for and constructing the necessary distribution infrastructure to handle increased electrification. We also support necessary transmission upgrades for existing cleaner-energy options such as natural gas. In addition, the EMP seeks to “expand the clean energy innovation economy” and cites the economic benefits the State could attain by developing an offshore wind economy. This is one area where the promise of future work seems to be getting more real.

In addition to the energy mix issue, the DEP is pushing to include projected risks from anticipated climate change in the year 2100 into land-use decisions being made today. Working closely with the Engineers Labor-Employer Cooperative 825 (ELEC 825) and the NJ Laborers’ Employers Cooperative and Education Trust

The Pipeline

On the risk side, UTCA believes that any policy choices and proposals must match and not exceed the existing data that support them. Shifting to 100 percent clean energy may be a politically expedient position since the public might lack the specialized knowledge to understand how challenging it will be to reconfigure today’s energy mix, but the reality of enacting this ambitious goal is far from simple. Costs have yet to be calculated, and there is much left to be proven regarding how this shift will actually be enacted.

(NJLECET), UTCA has engaged the NJDEP and provided comments on the land-use components of this policy effort, which is branded “Protecting Against Climate Threats (NJPACT). Our primary position is that data on sea-level rise and rainfall must be used to guide policy, not extrapolated to justify extreme policy choices that are not warranted from the data. We believe that projections seeking to gauge impacts as many as 80 years into the future should not be the basis for hard and fast regulatory proposal.

Utility contractors in New Jersey have been hearing about this opportunity for over a decade, so readers would not be wrong to shrug and say, “We will believe it when we see it.” However, recent events show this opportunity taking shape.

Utility & Transportation Contractor | june | 2021 77

Wind Port Takes Shape in Salem County A new port for the staging, assembly, and manufacturing activities related to offshore wind projects off the East Coast (not just New Jersey) is moving forward. Located in Lower Alloways Creek (Salem County) adjacent to the PSEG’s Hope Creek Nuclear Facility, this new port is estimated to generate up to $500 million initially in engineering and construction opportunities. In total, it is projected to create up to 1,500 jobs. An initial $200 million commitment is included in the Governor’s FY 2022 budget, with more funding anticipated from recent reported State budget surpluses as well as federal recovery funding. New Jersey Economic Development Authority (NJEDA) intends to design and construct this approximately 200-acre port in two phases.

The NJEDA has issued a Request of Qualifications (RFQ) and Request for Proposals (RFP) for Construction Management Services (CM) related to the new port. The firm NJEDA selects for CM will perform both preconstruction services and construction services to implement the proposed design. The RFQ includes a goal of awarding 15 percent of the total contract value to subcontractors, equipment lessors, and material suppliers that are minority-, women-, or veteran-owned.

The Pipeline

The current design for phase one will involve a wide approach channel between the main Delaware River Channel and port, dredged (and maintained) to -35.5’ NAVD-88 (= +/- 32.4’ MLLW), with a wide turning basin and a purpose-built heavy-lift wharf with a total length of 1,280 feet with two delivery berths. In addition, subparcels will be purpose-built for offshore wind marshalling and manufacturing with a heavy-haul road constructed to connect the site to the new wharf. Phase two is currently in the conceptual stage with detailed design expected to commence later in 2021.

What’s Next?

At the time of this article, five firms have been shortlisted for CM by the EDA, including several UTCA members and other notable state and regional companies. Phase one of this new port, once constructed, will be complemented by another facility being planned in Paulsboro, where a company has pledged to invest $250 million to construction facilities as well as the existing port. These two ports are key investments in the infrastructure it takes to build a regional industry for offshore wind. Construction is expected to begin this year. If New Jersey can position itself as a hub of this emerging industry, the opportunities could be significant.

With the federal government now accelerating approvals for offshore wind projects along the Atlantic coast, the industry will be quite competitive. In the case of New Jersey and New York, current Governors set goals to have new offshore wind capacity of 16,500 MW by 2035. New Jersey expects to award a second offshore wind project (7,500 MW) later this year, with the first project proceeding towards construction as we speak.

UTCA plans to stay on top of both the risks and opportunities associated with clean energy goals set by our Governor and Legislature. Please contact us with any questions or input.

78 Utility & Transportation Contractor | june | 2021

UTCA 2021 Annual Convention September 30 - October 2, 2021 Tropicana Hotel & Casino

Additional information to follow in July 2021

�� Northwestern Mutual"

163 YEARS OF HELPING PEOPLE STAY STRONG AND COME OUT STRONGER. From pandemics to recessions, we've been there to help our clients through it all. We believe that our version of financial planning can help you keep reaching your goals while knowing that you'll be ready for anything.

LET'S WORK TOGETHER Patrick A Di Cerbo, CLU®, ChFC". AEP". MSFS. CFP8 Wealth Management Advisor 518.281.8200 patdicerbo.com pat.dicerbo@nm.com

07-1016 © 2020 Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM). (life and disability insurance, annuities, ard lrfe insurance with long-term care benefits) and its subsidiaries in Milwaukee, WI. Northwestern Mutual Investment Services, LLC (NMIS) (securrties), a subsidiary of NM, brokei-dealer, registered investment adviser and member FINRA and SI PC.Patrick ADr Cerbo isan Insurance Agent(s) of NM, Patrick A Di Cerbo, � a Registered ReJ)'esentative(s) of NMr.i, Patrick A Di Cerbo, is a Representatrveof Northwestern Mutual Wealth Management Company•, (NMWMC) (1idociary and fee-based financial planningse1V1ces), a subsidiary of NM and federal savif€S bank. All NMWMC products and services are offered only by properly credentialed Representatives who operate from agency offices of NMWMC. Certified Financial P@nner Board of Standards Inc. owns the certification marks CFP0, CERTIFIED FINANCIAL PLANNER" and CFP" (wrth Hamedesign}in the U.5, which rt awards to individuals who successfully complete CFP Board's initial and ongoingcertrfication requirements.

DRAIN p;j

* * * * *

Hot Taps:¾" - 36"

*

PRO TAPPING & PIPE FREEZING 620 Gravelly Hollow Road

Wet Taps: ¾" - 36"

Medford, New Jersey 08055

(8S6) 983-S44l

Line Stops: ¾" - 36"

Fax (856) 985-8621

Pipe Freezes: 1/2" - 24" Cl/DI EZ Valve Insertions: 4" - 24"

www.protapping.com info@protapping.com

* * * * *

Valve Insertions for Copper Pipe: '12'' - 2" Ultrasonic Pipe/Tank Wall Thickness Testing Specialty Valves & Fittings 24 Hour Service SBE Certified

CALL FOR ADDITIONAL PRESSURE TAPPING AND RELATED SERVICES

© Copyright 2017

CERTIFIED SBE

►

Construction Surveying ■ Laser Scanning ■ Subsurface Utility Mark-Outs 24 Kanouse Road, Newfoundland, NJ 07435 I Ph: 973-249-0900 www.layoutinc.net

I info@layoutinc.net

0 DELTA DENTAL®

The art of making people smile.

Delta Dental knows what it takes to keep you and your family happy.

At Delta Dental, we offer a variety of dental plans that are sure to put a smile on your face: • Flexibility. Enjoy quality coverage at competitive rates. Plans with and without orthodontic coverage.

• Network of Dentists. Freedom to choose any dentist from the Delta Dental system, the largest network of dentists in the country.

• Carryover Max Benefit. Lets your money go further.

Delta Dental of New Jersey. Your connection to oral health.

For a FREE quote please contact our authorized representatives for the UTCA, The Van Palmer Group, LLC at 973-837-2522.

()

U�TCR UTllllY and TRANSPORTATION coN @'c1AnoN Y

On behalf of Ava's family, THANK YOU to UTCA for selecting Ava Lorusso as this year's recipient of the Robert A. Briant, Sr. Memorial Scholarship.

We are so proud ofAva� remarkable accomplishments.

Ava's dad, Nick Puccio, has been a dedicated Doka Employee for 32 years and counting. He has proudly contributed on many UTCA member projects over the years.

We want to extend a special thank you to the selection committee:

Bob Cavaliere from B. Anthony Construction, Chris Grosso from Taylor Oil, Liza Pope from H.C. Constructors, Henry Meyers from Anselmi & DeCicco, and Dave Rible from the UTCA as well as the Scholarship Coordinator, Helene Nasdeo.

Ava is looking forward to her next chapter as she will be attending the College of William & Mary in Williamsburg, Virginia pursuing a degree in History and Pre-Law. We are truly humbled by your generosity that will help make her dreams possible.

---

��DA BENEFIT SERVICES � Guidance ■ Expertise ■ Trust

Do You Know Your RiskScore?

T

AnlOACompany

IO A

INSURANCE OFFICE OF AMERICA

IOA understands the complex needs of your organization. We have worked in conjunction with carrier underwriters, loss control specialists, corporate controllers, and professional risk managers to develop a proprietary solution called RiskScore. RiskScore is a results-driven process that helps clients discover the strengths and opportunities within their operations.

BUSINESS INSURANCE It starts with a 10-minute survey that focuses on four disciplines: Pre-hire, Post-Offer, Pre-claim, and Post-Claim.

Key Advantages •

Complimentary insurance and risk management analysis

•

Comprehensive loss control solutions

•

Access to our learning management system

•

Dedicated claims advocacy team

•

Experienced consultants in commercial insurance and surety/bonding

RiskScore

EMPLOYEE BENEFITS It starts with a 10-minute survey that focuses on six key disciplines: Employee Experience, Wellbeing, Data and Plan Performance, Compliance, Benefits Technology, and Employer Experience.

Key Advantages •

Access to a national HR consulting team

•

Custom branded communications

•

Complimentary benefits administration system

•

Dedicated account management team

Through this holistic evaluation process, we seek to reduce your overall spend, understand your culture and enhance employee engagement. Engaged employees have proven to have lower absenteeism, fewer safety incidents, better work performance, higher customer ratings and higher productivity.

Interested? Please contact: Tim Fitzpatrick Direct: 908.309.5210 Email: tim.fitzpatrick@ioausa.com

Nancy Damato Direct: 732.718.6991 Email: ndamato@rdabenefits.com ENTF0320 - 299

CONGRATULATIONS TO:

Traffic Safety Service celebrating 50 years in construction A Special thank you to Veteran-Owned UTCA Member Firms: Lima Charlie Construction, BCA Insurance, Revenue Engine, Walker Diving Underwater Construction

www.ioausa.com © 2020 INSURANCE OFFICE OF AMERICA. ALL RIGHTS RESERVED.

By: tim fitzpatrick, senior vice president, employee benefits, ioa & derek ashton, cebs, strategic client relationship consultant, medcom benefit solutions

T

he American Rescue Plan Act (ARPA) was passed by the Senate on March 10, 2021 and signed into law by President Biden on March 11, 2021. ARPA extends and expands provisions of the Families First Coronavirus Relief Act (FFCRA); the Coronavirus Aid, Relief, and Economic Security Act (CARES Act); and the Consolidated Appropriations Act (CAA). The law requires the full cost of COBRA to be subsidized for “assistance eligible individuals” (AEIs) from April 1 through September 30, 2021.

Important facts employers need to know about ARPA’s COBRA subsidies are outlined below: Eligibility • AEIs are individuals who are COBRA qualified beneficiaries due to involuntary termination of employment (other than for gross misconduct) or a reduction of hours, to the extent that the subsidy period overlaps with their initial 18 months of federal COBRA or their eligibility for state continuation.

• Some examples of a qualifying event for a “reduction of hours” include:

tion of employment as “a severance from employment due to the independent exercise of the unilateral authority of the employer to terminate employment, other than due to the employee’s implicit or explicit request, where the employee was willing and able to continue to provide services.”1 • AEIs may elect subsidized COBRA coverage during any portion of the subsidy period during which they are COBRA-eligible, even if they previously had the opportunity to elect COBRA coverage and waived it or if they elected COBRA coverage and allowed it to lapse.

• Subsidies must also be provided for spouses and dependents if they are COBRA qualified beneficiaries.

• Individuals are not eligible for subsidies if they are offered an opportunity to enroll under another employer’s group medical plan or are eligible for Medicare.

• Individuals who are ineligible and accept subsidies will be subject to penalties.

* Reduced working hours due to a change in the employer’s hours of operation

• AEIs who are enrolled in Marketplace coverage will no longer be eligible for premium tax credits at the Marketplace during the time they are enrolled in subsidized COBRA coverage.

* An employee’s change from full-time to part-time status

Scope of Coverage

* A temporary leave of absence

• Subsidies must be provided for state continuation coverage in addition to federal COBRA.

* Participation in a lawful labor strike Note: These occurrences are treated as COBRA qualifying events only if they result in a loss of coverage for the individual, spouse, or dependents.

• It is not entirely clear which employment termination events will be considered “involuntary” for purposes of COBRA subsidies. Michelle Barki, Esq., Senior Legal Counsel for Medcom Benefit Solutions, explains: While there is little guidance, so far, relating to ARPA, its COBRA subsidies bear similarities to those provided under the American Recovery and Reinvestment Act of 2009 (ARRA) and analogies may be drawn from ARRA guidance. Under ARRA, the IRS defined involuntary termina-

NEWS

the american rescue plan act and cobra subsidies

• Subsidies must be provided for dental and vision coverage in addition to medical coverage.

• Subsidies may not be provided for health flexible spending accounts (FSAs).

Coverage Changes • If an employer’s open enrollment occurs during the subsidy period, AEIs may not increase the subsidy amount by switching to a more expensive plan option. However, they may switch to a plan option that is less than or equal to the cost of their current coverage.

Utility & Transportation Contractor | june | 2021 85

NEWS

Notice Requirement • Employers must notify previously eligible AEIs of their eligibility to receive COBRA subsidies by May 31, 2021.

• AEIs who become eligible during the subsidy period must be notified of subsidies through an updated COBRA election notice.

Reimbursements and Penalties • AEIs may not be charged for any portion of the subsidized COBRA premium, including any applicable administration fee.

• Employers may claim payroll tax credits through Form 941 to offset the cost of COBRA subsidies, and the tax credit will be against the employer’s share of Medicare tax.

• An employer’s failure to satisfy ARPA’s COBRA requirements may result in an excise tax of $100 to $200 per day for each violation.

86 Utility & Transportation Contractor | june | 2021

Due to the rapid implementation timeline and lack of complete guidance from regulators, the application of ARPA’s subsidy requirement will present a number of challenges for insurers, employers, and COBRA administrators. Each employer must develop a sound strategy in collaboration with administrative and compliance partners to ensure updated notices are distributed and subsidies are provided for applicable individuals. We recommend that any company considering these options seek the guidance of an educated professional such as their broker or insurance consultant to help align them with the appropriate resources and vendor partners.

For additional information, visit the Department of Labor’s information page, located here: https://www.dol.gov/agencies/ ebsa/laws-and-regulations/laws/cobra/premium-subsidy.

1 Barki, Michelle. “Part 1: Your Questions about COBRA and The Outbreak Period.” Medcom Benefit Solutions (blog). 3/25/21. https://medcombenefits.com/blog/post/part-1-your-questions-about-cobra-and-theoutbreak-period.

PIPE CLEANING, LLC • Jet Vac cleaning of 6" to 72" pipe lines and box culverts • Digital TV inspections of storm and sanitary lines from 4" to 72" including service laterals. This service can also include a DVD and comprehensive computer generated report.

• Air and Mandrel testing for sanitary sewer systems • Water pressure testing for water distribution systems • Manhole vacuum testing • Catch basin and manhole cleaning • Storm water quality system maintenance • Hydro and vacuum excavation • Hydro excavation test pits in order to locate existing utilities without conventional digging • Hydro Vac cleaning of silted rip rap aprons and storm water spillways • Interior pipe repair

We can provide the services you require to comply with New Jersey's storm water management regulations.

"Building A Better New Jersey Through Transportation And Utility Construction" Utility Contractors Industry Advancement Fund Your Industry Advancement Dollars At Work:

❖ ❖ ❖ ❖ ❖ ❖

County College Construction Technology and Engineering Scholarships College Engineering Internships and Scholarships Public Education Messaging Highlighting The Benefits of Infrastructure Investment NJDOT Specifications Improvements Funded Nationally-Recognized New Jersey Economic Study On Infrastructure Investment Funded Public Research On Infrastructure Investment Options

u�-rc11 CON

efCIATION

UTILl1Y and TRANSPORTATION y

UTCA of New Jersey PO Box 728 * Allenwood, NJ 08720 (732) 292-4300 www.utcanj.org Dave Smith - President, UTCA Phil Schifano - Chairman, UCIAF Robert A. Briant, Jr. - CEO, UTCA