Utility & Transportation Contractor April 2021

Utility & Transportation

contracTOR

Smith-Sondy

Celebrates 75 Years In Construction

April 2021

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ATLANTIC CONCRETE CUTTING CELEBRATING 30 YEARS IN BUSINESS! WE ARE PROUD OF OUR PARTNERSHIP WITH YOUR FINE COMPANY. BEST WISHES FOR CONTINUED SUCCESS!

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SMITH SONDY ASPHALT CONSTRUCTION FOR CELEBRATING 75 YEARS IN CONSTRUCTION

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

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president’s message

From the desk of: dave smith

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his time last year I wrote, “as the UTCA President I never thought I would be writing about a Pandemic.”

As I write this edition of my President’s Message one year later, we find ourselves still grappling with COVID 19 and the global economic crisis it has caused. As business owners, we make decisions that impact the lives of many, and as the pandemic continues, the misinformation we must sort through creates additional hurdles to our day to day business operations.

Where’s the Work – These are possibly the three words I hear most.

Sometimes I even hear myself saying them. The fact is that funding has been slow to be deployed. The number of regulatory hurdles that exist to get a funded project from concept to bid are mind scrambling, and the level of red tape is paralyzing to say the least. Managing a workforce to get this all done in a pandemic is yet another issue within itself. All this being said, Bob Briant, myself, and the UTCA staff are working hard to clear the path of the spend. We are calling on the State’s leadership to clear the red tape and drive this economic recovery. We speak with the heads of every agency and discuss the spend along with a recovery plan to deploy the capital at a pace that will be consistent with the vision of the Administration. We are assured regularly, nearly weekly that this will happen.

What it takes to keep the lights on – We continue to see new requirements placed on business every day. Whether driven by pandemic related requirements, necessity, politics, or special interest agenda, the burden falls on business owners and

2 Utility & Transportation Contractor | april| 2021

this burden has been a heavy one of late. UTCA consistently fights back legislation and regulations that would negatively impact our industry. Know that although we may not be able to change or eliminate every measure we oppose, UTCA is often able to secure amendments and stop bad bills from advancing.

We also work proactively with elected leaders to secure funding and facilitate project delivery, and will continue to fight for the interests of our industry.

Fair and level Playing Field - On the list of things we fight for, this is amongst the top priorities. Be it regulation, or how it is administered and with what level of consistency, UTCA monitors the way bid documents are written and followed. We must all fight this fight with full commitment, as the very future of what we do is dependent on it.

We need to get our Nation’s economy going. Nothing has ever been finished that was not started and we cannot start without going to work. We need the great people of America to get back to business as usual so we can begin the long fight to recover from the pandemic.

Best regards,

Dave Smith

CONTENTS

Cover story 54 Smith-sondy asphalt construction co. celebrates 75 years

DEPARTMENTS 2 7 15 23 31 45 85

President’s Message Financial Overview

54

FEATURES 74 atlantic concrete cutting - building on experience in the 30th year

Legal Dig Accounting Corner

NEWS

Legislative News

97 level-funded medical programs

labor relations

105 what new jersey's contractors need to know about the state's new online bidding laws

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 $I¿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 | april| 2021 3

Congratulations Smith-SondyAsphalt Construction 75 Years in Construction And Atlantic Concrete Cutting 30 Years in Business

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hat opening line of Jack Norworth’s tune lets you know spring is here, and with it comes high hopes for a successful new season. I, for one, am tired of hearing, reading, and talking about the pandemic. While taking precautionary measures is prudent and necessary, it’s time to get back to business. Let’s get back to work as the season begins and let our performance foster an economic renaissance.

At this time of year, capital is a critical resource for all businesses, especially contractors. As work begins, payroll and other operating expenses climb. Inventory is needed to complete the work and suppliers need to be paid. Equipment investment becomes evident, whether it’s for new machinery or replacing older ones. Bonded jobs can also be a drain on capital.

Various sources of funding can support your capital needs, and all should be considered. Banks are the traditional source of capital for most financing needs, but the unique situation of each company can influence the funding structure chosen. Newer companies might have limited choices due to their length of time in business, while more mature firms might have succession planning or perhaps events of liquidity for their principals to consider. Regardless of your situation, thoroughly review your financial objectives as you consider your options to ensure that they are met.

Once business owners understand their capital needs, the next step is to make sure that the necessary funding is available. Lines of credit are fairly commonplace; however, forecasting the ebb and flow of funds can help anticipate when borrowing capacity might be strained. Carve-outs of lines of credit to support surety bonds and letters of credit can further limit available funding. Suppliers are often used as a source of capital to “plug” deficit cash flows as dated

payment terms can supplement those short-term periods; however, this approach tends to act as a Band-Aid and should not be considered a long-term solution for short-term capital needs.

Equipment manufacturers have increasingly provided low-rate financing to their dealers in order to turn inventory. Although the rates appear attractive, hidden costs are often imbedded in the purchase price. Cash deals can lead to better pricing, and low-cost capital expenditure lines of credit can provide substantial savings on equipment acquisitions. Capex lines can also be put in place for a full year, providing financial flexibility for needed equipment as the year progresses.

Financial overview

take me out to the ball game!

Obtaining capital for succession planning or liquidity events tends to be more sophisticated and requires significant structuring to satisfy all parties involved. For example, an Employee Stock Ownership Plan, or ESOP, is an attractive way to pass ownership to the next generation of owners as well as create cash for the sellers. The necessary capital can come from a variety of sources, but the balance sheet will be leveraged and loan covenants could be breached. Other legal issues aside, the debt must be repaid, and a company’s cash flow is the primary source of doing so.

Private equity (PE) can also be used to transition ownership or provide liquidity. Privately held companies are a prime target for PE firms, as that market is flush with cash and looking for opportunities to generate good returns. Generally, PE funding will require controlling interest of a company, which brings with it other philosophical considerations that may or may not suit current ownership’s objectives.

Many companies have benefited from low interest rates over the past decade, but rates are beginning to increase. The yield curve in the bond market has steepened somewhat, and while interest rates are still quite attractive, the risk should not be overlooked. Once you understand your capital needs and their duration, consider interest rate hedges to minimize your risk. The simplest hedge is a fixed interest rate on borrowings, which ensures your capital costs will not fluctuate in the future.

I hope you and your families are healthy and safe. As we enter the spring season with exuberant optimism, I — a long-time former Little League coach — leave you with wisdom according to Yogi Berra: “Little League baseball is a very good thing because it keeps the parents off the streets.” Batter up!

Congratulations to Smith Sondy Asphalt Construction for celebrating 75 years in business and Atlantic Concrete on its 30 year anniversary. Quite an accomplishment, and I hope for many more.

Utility & Transportation Contractor | april| 2021 7

Congratulations I!,.'; Smith•Soncfy for 75 years of paving the way for millions of travelers.

Nava is proud to support you and your employees.

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federal acquisition regulations and small business concerns: what do you need to know?

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hen executing federal project construction contracts, navigating federal laws and regulations can be burdensome, especially for small business concerns that are just beginning or are expanding. Misinterpreting these small business requirements can result in significant penalties, so understanding the Federal Acquisition Regulations (FAR), the principle set of rules regarding the procurement process in the United States, is essential for small business concerns to ensure compliance with all aspects of a federal construction contract.

What is a small business concern?

Under the FAR, a small business concern is defined as “any business entity organized for profit with a place of business located in the United States or its outlying areas and that makes a significant contribution to the US economy through payment of taxes and/or use of American products, material, and/or labor, etc.”

“Concern” includes but is not limited to an individual, partnership, corporation, joint venture, association, or cooperative.

How does a construction company determine if it is considered a small business concern under the FAR? The Small Business Administration (SBA) determines the small business size standards for each industry through the North American Industry Classification System (NAICS). A size standard of a small business is usually “stated in number of employees or average annual receipts, [and] represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and federal contracting programs. The definition of ‘small’ varies by industry.”

Generally, the construction industry uses average annual receipts, and all other industries are based on number of employees.

How does the SBA calculate the average annual receipts under the appropriate industry NAICS codes?

The SBA considers “annual receipts” to be total income and costs of goods sold, as defined by the appropriate Internal Revenue Service tax return forms. As such, this constitutes all revenue that is received or accrued from any source, including the sales of products, services, interest, dividends, rents, royalties, fees, or commissions but reduced by returns and allowances. However, receipts do not include (1) net capital gains or losses; (2) taxes

collected for and remitted to a taxing authority, if included in the total income; (3) proceeds from transactions occurring between the small business concern and an affiliate; and (4) amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder, or customs broker.

Legal Dig

By: nicholas a. sullivan, esq., florio, perrucci, steinhardt, cappelli, Tipton & Taylor LLC

Generally, the average annual receipts of a small business concern in business for five or more completed taxable years is calculated as the total receipts of the small business concern over its most recent five taxable years divided by five. A small business concern in business for fewer than five completed taxable years is calculated as the total receipts for the period that the small business concern has been in business divided by the number of weeks in business and then multiplied by 52. In order to assist in this process, the NAICS contains industry codes that state the maximum average annual receipts for each industry. Typically, barring certain construction industries such as dredging, the maximum average annual receipt for a construction company to maintain its small business status is $39.5 million.

How does the SBA determine the number of employees of a small business concern under appropriate industry NAICS code?

The SBA counts all employees of a small business concern, including full-time, part-time, and other employees such as, but not limited to, employees from a temporary employment agency.

The calculation of the size standard for the average number of employees is based on the number of employees for each pay period for the prior twelve calendar months. If a small business concern has been in business for fewer than twelve complete calendar months, the average number of employees is calculated for all pay periods the small business concern has been in business.

How does a small business concern understand its primary industry under the NAICS? In order to determine the primary industry of a small business concern, the SBA considers numerous factors such as receipts, employees, costs of doing business in the different industries that the small business concern operates in, distribution of patents, contract awards, and assets occurring in the most recent completed fiscal year.

Utility & Transportation Contractor | april| 2021 15

Legal Dig

What are some limitations for subcontracting under a project reserved for small business concerns?

Under FAR 52.219–14, the limitations on subcontracting for contracts reserved for small business concerns are: (1) for services, except for construction, at least fifty percent of the cost of the contract performance must be expended for employees of the small business; (2) for general construction, the small business concern is required to perform at least fifteen percent of the cost of the contract with its own employees, excluding the cost of materials; and (3) for construction by special trade contractors, the small business concern must perform at least twenty five percent of the cost of the contract with its own employees, excluding the costs of the materials.

Does the FAR contain any mandatory reporting requirements for subcontractors?

Under FAR 52. 204–10, there are certain requirements for reporting executive compensation and first-tier subcontract awards. In part, a first-tier subcontract is defined as a “subcontract award by the contractor for the purpose of acquiring supplies or services (including construction) for performance of a prime contract.” A small business concern that has entered into a subcontract agreement with a first-tier subcontractor must report, by the end of the month following the month of the award of the first-tier subcontract, certain background information to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) about the first-tier subcontracting company and the subcontract agreement.

Within that same time period, the small business concern is also required to report the names and total compensation of each of the five most highly compensated executives of the first-tier subcontractor for the preceding fiscal year to the FSRS, if in the prior completed fiscal year the first-tier subcontractor received

16 Utility & Transportation Contractor | april| 2021

(1) eighty percent or more annual gross revenue from federal contracts or subcontracts, loans, grants, subgrants, cooperative agreements, and other forms of federal financial assistance; and (2) the first-tier subcontractor received $25 million or more annual gross revenue from federal contractors, subcontracts, loans, grants, subgrants, cooperative agreements and other forms of federal financial assistance. The first-tier subcontractor must meet both of these requirements to trigger the small business concerns’ reporting requirement.

What are the penalties for misrepresentation of size status by a small business concern?

If a small business concern misrepresents its size status as a small business when submitting a bid, proposal, or application for a project that is reserved for small businesses; when registering in a federal electronic database as a small business; or when signing any certification related to the procurement of a project reserved for a small business, the SBA retains the authority to suspend or debar the small business concern. Further, the small business concern may be subject to severe civil penalties under numerous federal laws, such as, but not limited to, the Fraud Claims Act and the Fraud Civil Remedies Act. Additionally, individuals of a small business concern may be subject to criminal penalties if it is determined that these individuals knowingly misrepresented the size status.

Conclusion It is important to have a comprehensive understanding of the SBA requirements for construction projects and NAICS codes before bidding and entering into contracts for projects reserved for small business concerns. Prior to initiating the procurement process, you may want to contact counsel to ensure that your project qualifies as a small business concern and to avoid potential penalties.

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your line of credit can affect bonding and banking relationships By: richard higgins, CPA, mccarthy & company

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What is a Line of Credit?

Profitability – A contractor’s gross profit percentage and net income as a percent of revenue compared to industry averages.

Like a credit card, you are required to make the minimum payment each month on your line of credit. Your account balance can fluctuate significantly depending on the amount you draw out of your account and the variable interest rate. By contrast, if you took out a loan, you would receive the funds in a lump sum with interest rates and payments fixed over the life of your loan.

Working Capital – To realize the expected profit margin on a job, a contractor needs to have enough working capital to meet short-term expenses; otherwise, the project might have to be financed, which increases costs and reduces profits.

Liquidity Ratios – Liquidity ratios (current ratio, quick ratio, and operating cash flow ratio) measure a company’s ability to pay debt obligations. Bankers and sureties will look at a contractor’s liquidity ratios to determine if the company is highly leveraged and using a high percentage of its revenue to pay off debt.

A line of credit is a predetermined amount of funding that can be borrowed over time from a financial institution such as a bank.

The client can take out money until they reach the maximum loan amount and, in the case of an open line of credit, they can borrow the money again as they repay the debt. This arrangement is contingent on the borrower not exceeding the credit limit or missing minimum payments.

What Do Sureties Look for in a Line of Credit?

Bank borrowings are fine for contractors and subcontractors, but sureties want to see:

Accounting Corner

uilding a solid foundation for good relationships with sureties and bankers is important for every contractor, impacting growth and profitability. Sureties and bankers rely on your credit history, payment record, credit score, and performance when making a credit decision. Sureties also factor the three C’s into their decision to issue a bond: a contractor’s capital, capacity, and character. In addition to these indicators, bankers and sureties also consider the following factors when determining a company’s creditworthiness:

Demand Clause – The bank can call in the LOC whenever they like, and the contractor will have to pay it back on demand.

Therefore, surety companies consider lines of credits a current liability even if it is not due in more than one year. Banks that call in a line can have a devastating impact on a business.

Working Capital – Sureties (and bankers) are focused on working capital. The definition of working capital is current assets minus current liabilities. Sureties consider lines of credit a current liability. Therefore, they reduce working capital unless they are converted to term loans and reclassified as a long-term liability.

Cash vs. Borrowing – Most sureties want to see that cash and receivables are greater than your bank borrowings, so it is important to have the ability to pay off the LOC if the bank demands immediate repayment.

Although sureties like to see that a contractor has a line of credit (LOC) in place, using it can impact your ability to maintain your bonding capacity. Sureties will scrutinize how and why you are using the LOC to finance your business and specific jobs. Ideally, they are looking for minimal or no borrowings on the line.

Extend the Maturity Date – Since most sureties will consider a LOC as a current liability, it is advantageous to have the maturity date extend beyond two years. Some sureties will reclassify some of the debt as a long-term liability if you can do so.

Utility & Transportation Contractor | april| 2021 23

How Do Lines of Credit Affect Your Credit Score?

Accounting Corner

FICO and other credit-scoring models take many factors into consideration when calculating your credit score. The length of credit history accounts for 15% of your FICO score. Your payment history is particularly important in the calculation. Always try to make payments on time to improve your credit score.

Nearly a third of your credit score is based on your credit utilization. Many people think that a high balance-to-limit ratio on your LOC can hurt your credit score; although scoring models do not consider a LOC when they calculate your revolving utilization, sureties might. Therefore, paying your LOC on time could improve your score, as well as lowering your utilization ratio by paying down credit card debt.

When you apply for a line of credit, the lender will typically review your credit reports, which could negatively impact your credit score. Inquiries influence 10% of your FICO score. As long as you are not frequently applying for new credit, seeking a LOC should not have a major impact on your FICO score.

Why Not Get a Credit Card?

There are advantages to using a LOC instead of a credit card. The main advantage is that a LOC is not considered in your credit utilization ratio, so if you borrow money that you do not intend

24 Utility & Transportation Contractor | april| 2021

to pay back by the next statement date, a LOC might be a better alternative. Not making payments on a credit card would have a negative impact on your credit score.

On the other hand, the draw period on a LOC typically lasts only for a few years, and a credit card does not have a time limit. If you do not hit your borrowing limit, you can make payments with your credit card indefinitely.

What About a Term Loan?

LOCs are better for short-term capital needs, and term loans are better for long-term investments. Interest rates are usually higher on a LOC than a term loan. A LOC might not ever be used, so banks cannot charge the same rates as they do for a term loan unless the line is used. However, application fees and monthly maintenance fees associated with LOCs are often small compared to the hefty origination fees and pre-determined interest payments with a term loan.

LOCs and other forms of bank financing need to be used correctly and managed responsibly to maximize your surety bond capacity. Contractors need to keep their leverage ratios low to maintain their bonding capacity.

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in the lobby By: zoe baldwin

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Thanks to heavy borrowing this fiscal year, ample federal aid, and a much-improved revenue outlook, the $44.8 billion proposal avoids raising or adding any taxes or fees and maintains several priority items for our industry including: • $2 billion for the State Transportation Capital Program, including: o $1.24 billion for state and local highway and bridge projects o $760 million for NJ Transit • $60 million for drinking water and clean water infrastructure • $200 million for the Offshore Wind Port In his address, Governor Murphy also stated his intention to "do away with antiquated permitting rules at the Department of Environmental Protection and other departments, which will cut government bureaucracy and get projects off the ground quicker." We do not yet have details of this effort but are supportive of any measure that will speed the process of advancing projects to construction.

In turn, the State Legislature has just begun its process of public hearings and negotiations to finalize their budget bill to send back to the Governor for approval. We expect our priorities to remain intact and will keep you updated as the process unfolds.

Project Labor Agreements – S3414/A5378 (Sweeney/DeAngelo) Legislation to allow project labor agreements on more public works projects over $5 million has passed the full Senate by a vote of 31-4. The bill was amended to limit PLAs to onsite workers and to ensure that participatory unions have adopted the building and construction industry exemption authorized by the federal Employee Retirement Income Security Act. The amended version of that bill was heard in the Assembly Committee on March 15th and, at the time of this writing, is expected to pass a floor vote.

Employer Protection Fixes for Marijuana Legalization – S3525 (Sarlo) As previously reported, UTCA advocated for stronger employer protections in the law that legalized marijuana. While our concerns and those of other safety-sensitive employers were not ultimately included in the final language, UTCA has worked with Senator Sarlo on newly introduced legislation that would specifically protect the construction industry and remove a provision requiring the use of a third-party Workplace Impairment Recognition Expert for determinations of suspicion of an employee’s usage on the jobsite. This bill has not yet been scheduled for a hearing.

Workers Compensation – S3375 (Singleton) Legislation has been introduced that would mandate non-interference with medical treatment for workers compensation cases. UTCA opposes this legislation and is in contact with other associations and business groups to get ahead of the issue. This bill does not have an Assembly counterpart and has not been scheduled for a hearing. We will keep you updated if it should advance.

Legislative News

t’s been just over a year since the start of the pandemic, and as the vaccines continue to roll out and businesses start to reopen, a return to normalcy seems nearly within our grasp.

Speaking of business as usual, Governor Murphy has unveiled his fourth and final budget of his first term, kicking off the FY22 budget season in Trenton.

I-Bank Expansion – Legislation has been sent to the Governor that would expand the purview of the transportation side of the I-Bank to also finance aviation and marine projects, as well as make it easier for the NJIB 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.

At the time of this writing, A5057/S3190 is awaiting the Governor’s signature; we expect it to be signed into law. The I-Bank is one of New Jersey’s most efficient and successful programs, and this expansion will help facilitate projects statewide.

Lead Service Lines – S3398/A5343 (Singleton/Schaer) Legislation has advanced in the 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.

Local Hire legislation (Chaparro) & Eco-Friendly Concrete (Addiego) – UTCA was successful in amending two bills recently heard in committee. Initially, A5018 would have required contractors to implement local hire programs on I-Bank fund-

Utility & Transportation Contractor | april| 2021 31

Legislative News

ed projects. Working with our partners in the Laborers union, we were able to work out amendments to require the water system itself to have the local hire program instead. A4933 would have preferenced contractor bids using eco-friendly concrete.

We were able to secure language requiring that the product be included in specifications and narrowing the definition of “concrete products” to exclude ready mix concrete, sand, stone, gravel, or bituminous concrete or asphalt.

Pension Relief in COVID Package – As you are no doubt aware, another COVID package was passed, providing a third round of stimulus checks, unemployment assistance, food and housing aid, money for small business, and aid to states. Known as the American Rescue Plan Act of 2021, the package also contains significant funding for certain underfunded multi-employer pension plans. That section, the Butch Lewis Emergency Pension Plan Relief Act of 2021, makes certain underfunded plans eligible for direct “special financial assistance” that is not subject to any repayment obligations.

Under the plan, the US Treasury will directly fund eligible pensions 100% for the next 30 years (2051) via a single, lump-sum payment made by the Pension Benefit Guaranty Corporation (PBGC). The measure is expected to total about $86 billion. It does not contain any provisions for taxes or fees on participating employers or any reduction in participating employee benefits. Notably, the bill does not include structural reforms to the multi-employer programs, which many feel are necessary to ensure the long-term viability of these types of plans.

Multi-employer pension plans eligible for the program would include plans in critical and declining status and plans with significant under-funding that have more retirees than active workers in any plan year beginning in 2020 through 2022. Additionally, plans that have suspended benefits and certain plans that have already become insolvent would also be eligible.

ed that they will not advance any package without Republican support.

UTCA will continue advocating for the industry, but at this time, the path forward remains uncertain. We will keep you up to date as the conversation continues.

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 in March 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.”

UTCA's PAC Club Constructors For Good Government 2021 Campaign Is In Full Swing!

As passed, the law is silent as to what this funding will do to an employer’s calculation of withdrawal liability. All eyes will now be on the PBGC as it develops and issues regulations to implement this special assistance program.

UTCA is working to better understand the implications of the measure and will keep you updated as more details become available.

Federal Infrastructure Package Update – The House is beginning work on a new infrastructure package that will be modeled after HR2, the $1.5 trillion dollar plan that passed the House last year but stalled in the Senate. This could be good news for construction as the measure would significantly increase spending levels for highway, transit, and water infrastructure projects.

Additionally, the bill is expected to contain UTCA’s language establishing a toll credit marketplace pilot program and adding flexibility to allow the use of toll credits toward transit projects.

That said, we are hearing that it is now unlikely that the Senate will introduce an identical version and is instead looking to craft their own bill. The COVID relief package was passed without minority support, and in response, certain Senators have stat-

32 Utility & Transportation Contractor | april| 2021

Thank you to all our member firms that have donated for 2021.

If you would like to donate, please visit www.utcanj.org and click on "Donate To Our PAC" or call the UTCA office at (732) 292-4300 June Issue of the "Utility & Transportation Contractor" will have a full list of 2021 PAC Contributors

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recreational marijuana use legalized in new jersey: employment law implications By: jonathan landesman, esq. & hope steidle kildea, esq.

O

n February 22, 2021, New Jersey Governor Phil Murphy signed into law the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA), legalizing the recreational use of marijuana for adults twenty-one and over. The new law implements a November 3, 2020 ballot referendum passed by New Jersey voters amending the state’s constitution to legalize recreational marijuana use and possession. But the legislation does not stop there; CREAMMA places significant restrictions on employment-related decisions based upon an individual’s marijuana use.

Drug-Free Workplace Policies Under CREAMMA CREAMMA expressly authorizes employers to maintain drugfree and alcohol-free workplace policies. The law’s protections apply to employees’ off-duty, recreational use of marijuana, but do not extend to on-the-job conduct. CREAMMA expressly reserves employers’ rights to prohibit the “use, consumption, impairment, possession, transfer, display, transportation, sale, or growth” of marijuana in the workplace. Additionally, the law affirms that employers are still free to prohibit employee use of or impairment from marijuana during work hours.

Drug Testing: When, Why, and How In addition to limiting what employers can do with drug test results, CREAMMA also restricts when and why employers can conduct drug testing to the following scenarios: • Pre-employment drug testing • Random drug testing of employees in safety-sensitive positions and/or regular drug testing of employees to determine use during work hours • Post-accident drug testing (i.e., after a workplace accident subject to investigation by the employer)

• Drug testing in response to observable signs of marijuana intoxication during work hours Although employers are prohibited from basing employment decisions solely upon a positive test result, CREAMMA does not prohibit employers from considering drug test results when deciding upon the appropriate disciplinary action to take against an employee for related conduct, such as workplace use of, impairment from, or possession of marijuana. Before taking action, employers should consider how they conduct drug tests to ensure compliance with CREAMMA’s standards.

The new law redefines “drug-test” to require a two-part inquiry.

First, employers must utilize a “scientifically reliable objective testing method” (e.g., blood, urine, or saliva test). Next, employers must arrange a physical evaluation by a certified Workplace Impairment Recognition Expert (WIRE) to detect marijuana usage or impairment in the individual. Issuance of WIRE certification will be based upon standards and training requirements set forth by the New Jersey Cannabis Regulatory Commission.

Employer Exemptions Unlike other state laws legalizing recreational marijuana use, CREAMMA’s employment provision does not contain an exemption for safety-sensitive positions (i.e., jobs that could affect the health and safety of the employee, other workers, or the general public). Although the legislation has faced criticism for its potential consequences for workplace safety, it remains unclear whether interpreting regulations will adopt an exemption for safety-sensitive positions.

Labor Relations

The new law prohibits employers from refusing to hire, discharging, or otherwise taking adverse employment action against an employee or prospective employee solely because the individual uses marijuana. Additionally, CREAMMA prohibits employers from taking adverse employment action against an individual solely due to a positive marijuana drug test result.

• Reasonable suspicion drug testing (i.e., when an employer reasonably suspects an employee used marijuana during work hours)

CREAMMA does provide a carve-out for federal contractors and grantees where compliance would result in the loss of a federal contract or grant. This exemption allows employers that are subject to a federal contract to amend their drug policies as necessary to comply with federal laws and regulations. As a result, employers who are subject to the US Department of Transportation’s regulations for safety-sensitive positions, which prohibit marijuana use and mandate employee drug testing, are still able to take adverse employment action against employees and pro-

Utility & Transportation Contractor | april| 2021 45

spective employees based upon a positive drug test alone.

Next Steps

Labor Relations

Forthcoming regulations from the New Jersey Cannabis Regulatory Commission should provide additional insight into employers’ obligations under CREAMMA. In the meantime, employers should review their existing drug and alcohol policies to confirm compliance with the New Jersey law. Federal contractors and grantees should closely review their contracts to ensure they have a thorough understanding of the federal laws and regulations governing their projects.

46 Utility & Transportation Contractor | april| 2021

Should you have any questions about your obligations under the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act or any other issues related to your drug and alcohol policy, please do not hesitate to contact Jonathan Landesman, Esquire or Hope Steidle Kildea, Esq. at Cohen Seglias Pallas Greenhall & Furman PC. Jonathan Landesman, Esq. and Hope Steidle Kildea, Esq. are members of the Labor and Employment Group where they focus their practice on representing contractors and subcontractors in all matters relating to the workplace, including employment litigation, human resources counseling, and labor relations.

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Cover Story

Smith-Sondy Asphalt Construction Co. Celebrates 75 Years By: zoe baldwin

J

oseph Smith, President of Smith-Sondy Asphalt Construction, is an excellent storyteller and lights up as he talks about his family’s 75-year history in New Jersey asphalt construction. His business partner and company VP, Nicola (Nick) Genchi, PE, brings an engineer’s sensibilities and eye for detail, and between the two, it’s easy to see how the duo grew Smith-Sondy Asphalt Construction Company into the successful and trusted brand it is today.

Their story begins in 1946 when Joe’s father, Edward J. Smith, made a declaration that would set the family’s trajectory for the next three-quarters of a century. As Joe tells it, “My grandfather and a fellow by the name of Frank Sondy owned a cab business.

My father was a driver for them until one day he came home and said ‘Pop, I’m going into the paving business.’ When my grandfather asked him what he knew about the paving business, he said, ‘Nothing, but I’m not going to drive a cab for the rest of my life.’”

His grandfather’s partner, Frank, suggested he and his son go into business together. The pair went on to buy an existing firm that came with a truck, a roller, and a laborer, and the rest, as they say, is history.

Picture of Joe's Father, Edward J. Smith Founder of Smith-Sondy

“Most of the work they did early on was residential and commercial,” Joe says. “In those days there was big industry in the cities of Passaic and Clifton with companies like Uniroyal and Manhattan Rubber. There was also quite a bit of residential work because of the post-war housing boom. My father had some friends who were developers, so they helped him get into that work as well.”

Like many in our industry, Joe began working for the family at an early age, pushing a broom until he was a teenager and later, able to work in the field as a laborer. Joe went on to graduate from Fairleigh Dickinson University where he studied marketing. In 1973, while he was still in college, Joe’s father became ill. “I went to see my father in the hospital and told him, ‘Pop I know you’re sick, but we have to keep the business going.’ My dad feared he would not be able to come back to work, so the next day I was in the paving business full time.”

Joe took over the day-to-day business of the company and spent his senior year of college splitting time between running the business and his full-time course load. “It was a lot,” Joe admits.

“But at the time everyone knew what was going on, and I had a lot of support from the construction community, including my competition. They’d let me cut the line at the asphalt plant because they knew I had to get back to class. It was really that kindness that allowed me to develop and maintain the business while still going to school.”

Joseph C. Smith, President and Nick P. Genchi, P.E., Vice President of Smith-Sondy

54 Utility & Transportation Contractor | april| 2021

Joe’s efforts paid off, and the following year, he was approached by a private developer planning to build 110 single-family homes in Wallington, New Jersey where the firm is located. “Wallington is my hometown, and because of the reputation I’d built, he approached me about the project. I took this as an opportunity. I told him that I wouldn’t do the job unless he let me build the road

for it as well. When asked if I had ever built a road my response was, ‘Absolutely’ even though I had no idea what a crown was, nor did I know how to build it. I took on the challenge, learned how to run a grader, made a few mistakes, and in the end, successfully built the road. I embraced the challenge and never looked back.”

Joe knew that Nick brought valuable contributions to the business. He recalls, “Nick worked here for six or seven years and then became a partner, and we’ve been together ever since. We haven’t had one argument. We both share the same work ethic and we’re excellent partners. We’ve been very fortunate.”

Nick graduated from Memphis State University in 1976 with a degree in Civil Engineering. He worked briefly as a consultant, but ultimately came back home to New Jersey to work for the City of Clifton and then again as a consultant in Paramus. As Nick tells it, “Joe convinced me to get into construction. We had a meeting and he told me if I worked in construction, I’d get winters off. My wife loved that point, although I don’t think we’ve really had a winter off in 40 years. I told myself that if I don’t like construction, I could always go back to consulting, but it’s been 40 years and I haven’t gotten tired of it yet.”

Cover Story

“That was the first time I did something really big,” Joe contin- Nick recalls that early in his career, when on a vacation with his wife, he took away the NJ State Specificaued. “When I started, the company was doing tion “Green Book.” He read the book as one less than $150k a year. After the first year I would a novel, and when his wife questioned took over, I doubled the business. I worked nights and weekends tirelessly. My father “Each year, you take on a little him about his unusual choice of reading, Nick responded, “I have to understand evjoked, ‘I ran this business for 25 years and I bit more work and you get erything in this book, because we’ll run into never stayed in the office as long as you do — more experience; you do it it sooner or later.” why are you working at 10 o’clock at night?’

But that’s what I did. I just worked hard.”

PRUH HIÀFLHQWO\ DQG \RX JURZ Nick’s skills and background as a professionSure enough, 40 years later, al engineer enabled the firm to take on more In 1975, Joe told his father he wanted to technical work, beginning with an $864,000 buy into the business. His father laughed at \RX·G EH LPSUHVVHG µ site improvement contract for the Clifton first, but ultimately gave Joe a third of the - Nick Genchi City Hall. This project took the firm well ownership. When his father passed away in beyond its paving niche as it also included 1977, Joe continued to pursue ownership of electrical installations and landscaping. That Smith-Sondy, buying out his mother in 1980 project acted as a springboard for more public work, and a few and then Joe Sondy in 1987. years later, Smith-Sondy took on their first multi-million-dolJoe’s current partner and vice president Nick Genchi joined the lar job for the State of New Jersey on Getty Avenue in Paterson. firm in 1981. His grandfather was an Italian contractor and home From there, the duo was well positioned to take on an increasing builder who worked with Joe’s uncle. Nick’s grandfather intro- amount of public work, further diversifying their portfolio and duced the two at Nick’s father’s millwork shop, and that fateful solidifying their reputation as a premier paving operation in the interaction set the stage for the following four decades of growth. state.

“I did a lot of marketing with the engineers, and when Nick came on board, he helped me sustain that,” Joe recalls. “We’ve been fortunate to maintain the reputation that my father built, which has carried us into the industrial work and commercial work, and ultimately to the municipal and state work.”

Smith-Sondy is generally focused in New Jersey North of the Raritan River, and they’ve proudly worked for some of the biggest names in the industry such as Russo Development, Gale and Wentworth, and Joseph M. Sanzari, in addition to performing a considerable amount of work at Teterboro Airport for Jet Aviation, Meridian, and Signature Flight.

Nick says, “In the past, the firm concentrated on grading and paving as a subcontractor to larger construction companies, but over the years, developers would prefer to give out one contract, and that’s basically when we started building up our sitework expertise. We started to take on the crews and performed much of that work ourselves.”

Now, with about 100 employees, Smith-Sondy continues to build upon its legacy. They’re currently finishing up a State Department of Transportation project on Route 23, working on a project for Amazon in Carlstadt, and have just completed a 50,000ton paving project for Union County and a 40,000-ton project for Essex County.

Utility & Transportation Contractor | april| 2021 55

Cover Story

He cites long-time employees like projects manager Bill Meyer and general superintendent Jack Meyer as key to the firm’s steady growth. Field managers Tony Ferreira and Jose Seixiero have been fundamental assets in the field. Former CFO Vincent Massimo served the company from 1987 until his untimely passing in 2009 and actually picked his successor, Susan Ruschke, who has served in that position since. Joe and Nick also attribute some of the company’s continued success to their dedicated subcontractors and suppliers, in addition to the valued business relationships they have developed in their long-established history.

As they look ahead, Smith-Sondy shows no signs of slowing.

“Retirement is not in my genes,” Joe says. But he is optimistic for the future. “My hope is that my son, Eddie, will continue to grow what we’ve built. He has been working with us for about 15 years and is well poised to take the reins whenever I decide to slow down. I only hope he’ll be as lucky as I was to find a partner like Nick. Our partnership has been the main ingredient to Smith-Sondy’s success. There’s no doubt that the skills and knowledge that Nick brought to the business, along with his ability to negotiate and construct, have been invaluable.”

William J. Meyer and his nephew Jack Meyer together with 105 years of asphalt experience.

Nick says that, “When we started in 1981, we grossed over $1 million, and each year we’ve continued to grow. You take on a little bit more work and you get more experience; you do it more efficiently and you grow. Then sure enough, 40 years later, you’d be impressed.”

Joe attributes much of this success to his partnership with Nick, and specifically, to Nick’s eye for design. “We have an advantage,” Joe says, “because Nick and our engineers redesign a lot of the projects. One of the biggest things in the industry that we face are grades. Nobody understands grades like Nick. He is very meticulous in his work and over the years, thanks to his knowledge, we’ve continued to expand our engineering department. We currently have four engineers on staff as well as several estimators with 30-plus years of experience.”

Despite its commercial success, Smith-Sondy remains a family business. Their office is still located in the house where Joe was raised, and they have an impressive history of employee retention.

“Our management team has about 300 years of collective expertise, and our employees are our most valuable asset,” Joe says. “Our people are committed and tend to stay. Most of our employees are 30-plus year - Joseph Smith employees.”

"Our management team has about 300 years RI FROOHFWLYH H[SHUWLVH Our employees are our PRVW YDOXDEOH DVVHW

56 Utility & Transportation Contractor | april| 2021

Smith-Sondy Management Team.

For three-quarters of a century, Smith-Sondy has built upon its accomplishments and expanded into a multi-million-dollar success story, all while remaining true to its foundations. Their mission of “building relationships through quality, integrity and service” has served them well and remains at the core of their business model, to this day and into the future.

Smith-Sondy has been an active member of UTCA since 1985 and has found great value in the contractor community throughout their long history. UTCA would like to congratulate Smith-Sondy Asphalt Construction Company on this impressive milestone and looks forward to celebrating their continued success.

ro.JCongratulatio ns,-J

Smith-Sandy Asphalt Construction Company mr building a reputation as a leading contractor by providing the highest quality service mr the past 75 years.

•Best wishes and continued ruture success, rrom your rriends at Komatsu America•

E.d-. 1946

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P-tWU1-9 Ccmtria.c-t� • :Fl

14 Locations in 6 States: PENNSYLVANIA Frackville, Harrisburg, Hatfield, State College, Wilkes-Barre • MARYLAND Baltimore •DELAWARE Laurel • NEW JERSEY South Plainfield, Winslow • NEW YORK Holbrook, Holmes, Pine Bush, Yonkers • CONNECTICUT Newington

WWW.KOMATSUNE.COM

JOHN GARCIA

ANTHONY B. GARCIA

Storm Drain Wet Taps

Water Mains Sewer

Phone: (973) 773-4544 jgarciaconstr@gmail.com

183 Friar Lane Clifton, NJ 07013

To JOE, NICK, EDDIE& STAFF: CONGRATULATIONS ON

75 YEARS

OF DEDICATION

TO THE CONSTRUCTION INDUSTRY. IT HAS BEEN A PLEASURE BEING ASSOCIATED WITH YOUR COMPANY FOR THE PAST

50

YEARS.

MAY YOU HAVE A SMOOTH ROAD AHEAD FOR THE NEXT

75 YEARS!

BEST WISHES, TONY&JOHN

ASPHALT CORR

CONGRATULATES SMITH-SONDY ASPHALT CONSTRUCTION CELEBRATING 75 YEARS IN BUSINESS BEST WISHES FOR CONTINUED SUCCESS MICHAEL LAMORGESE-PRES! DENT JOSEPH C. MACCHIONE, JR.- VICE PRESIDENT 32 O'BRIEN STREET KEARNY, NEW JERSEY 07032 PHONE: 973-482-1113 FAX: 973-482-2501

NEGkJI

ENGINEERING ASSOCIATES

34 PARK AVENUE PO BOX 426 LYNDHURST, NJ 07071 WWW.NEGLIAENGINEERING.COM

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Engineering • Municipal Engineering • Landscape Architecture • Plq,nning raffle Engineering • Land Surveying • GIS •1 ConsJructi,o'n Management /

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.a,CISIP ••• • €ompanies 16 Cozy Lake Road, Unit 3 Oak Ridge, NJ 07438 (973)-697-0900

Smith-Sondy Asphalt Construction Celebrating 75 Years in Construction

■ Smith•Sondy Your Friends at The Precision Companies congratulate you on your 75 years in business and wish you all the best in the years to come!

Precision

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TREE SERVICE INC.

FetVvlLLtJ-OWV\,eol coVvl-pet 11\,[es, CoVvl-petV\,Les tVlett etve fetVvlLltJ. Congratulations to Joe Smith & Smith-Sondy Asphalt Construction Co. for their 75 years in business! We've had the pleasure of working on numerous projects together, from Borough Street Improvement Projects to George Washington Memorial Park and so many in between. Excellence is never an accident; it is the result of high intention, sincere effort, intelligent direction, skillful execution, and the vision to see obstacles as opportunities. It's been 75 excellent years for Smith-Sondy & all of us here at Downes couldn't be prouder to work with you. You don't get what you wish for, you get what you work for- here's to 75 more years!

With great admiration, Kevin Downes Downes Tree Service Co., Inc.

Congratulations to Smith-Sandy Asphalt Construction Liberty Mutual Surety celebrates your firm's 75 years in business, applauds your accomplishments and wishes you continued success.

� Lihe!!Y Mutual.

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SURETY

L 2021 Liberty Mutual Insurance Insurance un derwritten by Liberty Mutual Insurance Co, Boston, MA, or its affiliates or subs1d1anes

A. MACCHIONE BROTHERS

Residential • Commercial • Industrial

CONGRATULATIONS! (201) 652-2700 / (201) 666-2229 FAX: (201) 487-5325

PAVING DRIVEWAYS MILLING 80 PATTERSON STREET, HILLSDALE, NJ 07642 71 S. NEWMAN STREET, HACKENSACK, NJ 07601

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GREG LALEVEE

IUOE General Vice President Business Manager, Local 825

PBRRBIRA

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.

CONGRATUL ATIONS SMITH SONDY A SPHALT CONSTRUCTION FOR 75 YEARS IN CONSTRUCTION A ND ATLA NTIC CONCRETE CUTTING FOR 30 YEA RS IN BUSINESS FERREIRACONSTRUCTION.COM I A CERTIFIED MBE COMPANY BUILT ON A FOUNDATION OF INTEGRITY NEW

JERSEY

NEW

YORK

FLORIDA

CALIFORNIA

·

NEW ENGLAND

Congratulations to: Smith-Sondy Asphalt Construction Celebrating 75 Years in Construction Your Friends at Weldon

SERVING THE CONSTRUCTION INDUSTRY WITH INTEGRITY AND PRIDE SINCE 1898 CONCRETE • ASPHALT • STONE 908-233-4444 www.weldonmat.com

Riverview Paving CONGRATULATIONS SMITH-SONDY ASPHALT CONSTRUCTION ON 75 YEARS OF SERVICE TO THE CONSTRUCTION INDUSTRY!

AN EQUAL OPPORTUNITY EMPLOYER

FOUNDRY

CA\lMPiB{Itl}L d, L,

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

Since }921

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

MATERIALS

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

Congratulations to Everyone at Smith-Sondy on 75 Years of Success in Conshuction

Feature Story

atlantic concrete cutting - building on experience in the 30th year WBE firm reflects on their portfolio of projects while looking towards the future

T

here are many uncertainties in the construction industry, but after thirty years in business, Nancy Cramer knows one thing; nothing is more valuable than experience.

Nancy founded Atlantic Concrete Cutting in 1991 on a shoestring budget with the goal of one day becoming a leader in both the greater New Jersey and New York construction arena and the saw-cutting industry nationally. From humble beginnings of Nancy driving trucks and completing invoicing at the kitchen table, Atlantic gradually took on more expansive projects. Nancy’s philosophy for growing her business has always been to focus on the next opportunity. With each new and challenging prospect, the firm draws on its past experiences and skills to focus its outlook for the future.

Atlantic started out in the 1990s by providing basic core-drilling and slab-sawing services. Early membership into the UTCA and the Concrete Sawing and Drilling Association (CSDA) provided access to a fantastic network of knowledgeable individuals.

CSDA’s training and technical resources proved to be invaluable. Throughout the late ’90s and early 2000s, Atlantic took on more challenging projects, venturing into specialized cutting for bridge and structure demolition, as well as sawing and sealing joints in new pavements.

With expansion of Atlantic’s market area came new equipment and additional manpower. Moving into more areas of the TriState region, the firm acquired new industry contacts and joined additional professional organizations. In the mid-aughts, Atlantic undertook some of its first landmark projects; the company core drilled 14-inch tieback holes into the dry-dock walls at General Electric’s submarine plant in Groton, Connecticut. In 2009, they installed some 265,000 linear feet of neoprene joint sealant at JFK’s bay runway, which was the first of three runway rehabilitation projects Atlantic undertook for the airport. Most notably during this period, Atlantic became involved in wire sawing and wall sawing for structural demolition of the World Trade Center site in preparation for new construction. The majority of this work took place between 2007 and 2014, although Atlantic is still

74 Utility & Transportation Contractor | april| 2021

Atlantic employees cut a bridge deck into pickable pieces for IEW Group in Montclair, New Jersey.

regularly engaged in work at the World Trade Center.

Creating alternative solutions for intricate demolition problems and navigating tight schedules has set Atlantic apart from the rest, and the core of this success is the firm’s employees. Whether in the field or in the office, taking on a complicated and challenging project requires the experience and input of everyone. As an employer, Atlantic prioritizes its responsibilities and commitments to its employees and their families, providing competitive wages and salaries to skilled individuals from across the region.

Since 1991, they’ve developed an extensive support network to meet the demands of their growing projects. New equipment and an expanding vehicle fleet required a well-staffed shop with trained mechanics to keep operations efficient and safe. Their administrative support staff has grown by leaps and bounds as larger contracts and growing assets required capable individuals to

The former Tappan Zee Bridge (center) showing two spans with the center portions of bridge deck sawcut by Atlantic. This was done to reduce total span weight allowing full spans to be picked by the Left-Coast-Lifter (right).

assure regulatory compliance, contract review, proper insurance coverage, and revenue collections. Michelle Morris, who joined Atlantic in 2012 as a financial controller and rose through the ranks to become CFO/COO in 2016, has been working alongside Nancy through all this growth, bringing 33 years of construction accounting experience. "Having a great team that is working together is the key to our success".

In 2017, Atlantic undertook its largest consecutively executed project to date — complete saw cutting for the demolition of the former Tappan Zee Bridge. A landmark structure in our region, the 3.2-mile-long Tappan Zee was replaced with two larger structures. The project’s final phase was the total demolition of the old bridge in a tight two-year schedule. Atlantic and its employees put their ingenuity to work to develop several methods for bisecting the 60-year-old structure into manageable pieces for disposal. The company’s crews worked long shifts in all weather conditions, wire-sawing sub-structures in and over the frigid Hudson River and operating above the active Metro North railroad. They even collaborated with an industry equipment manufacturer to design a custom road saw to cut the bridge deck into tapered pieces, which dramatically accelerated the deck-removal process.

Atlantic Concrete Cutting crew with Project Manager Ted Nielsen at a weekend track outage project for WMATA in Washington, DC.

The ability to execute these jobs successfully really sets our team apart in our field, and the lessons learned on each project prepares us for the next.” Atlantic has been called on recently for several rapid weekend bridge-replacement jobs for the NJDOT, as well as night and weekend work for NJ Transit, the MTA, and the LIRR, and is currently working on its third large project for WMATA in the Washington, DC area.

Feature Story

Another reason for Atlantic’s success has been diversification.

The casual observer might say that concrete cutting is just concrete cutting. Not so. As the industry has matured over the years, technological advances have offered new approaches for fulfilling clients’ unique job needs. The company has a wide range of diesel-powered and electric slab saws as well as electric and hydraulic core drills. In recent years, this equipment has been supplemented and, in some cases, completely replaced with an assortment of wire saws, curb saws, dowel drills, hi-cycle wall saws, and various joint and crack sealant installation machines.

To remain competitive and economically viable in a difficult industry, Nancy and Michelle take a hands-on approach. Nancy explains, “We always seek ways to keep our customer base and to expand into new markets. This requires ongoing training, developing an even stronger safety culture, acquiring state-of-the-art equipment, recruiting new employees who possess innovative thinking skills, recognition and advancement for our existing family of employees, and strong, aggressive leadership by our managers. This is a difficult undertaking, but one I’m confident that Atlantic can meet.”

The future is bright and full of promising opportunities for Atlantic. Its management team will continue to build on their expertise, seeking new markets, utilizing cutting-edge technologies, and providing a secure future for their employees.

Atlantic’s management team at the last UTCA event in Atlantic City, NJ Wes Jones, Ted Nielsen, Nancy Cramer, Michelle Morris.

The Tappan Zee Bridge was an important project not only because of its size and impact on the company’s portfolio, but because the methods applied to the project have become essential to Atlantic’s work ethic going forward. Operations manager Wes Jones notes, “A large portion of our current backlog of work are projects that involve a tight and often alternate shift schedule.

Atlantic Concrete Cutting crews dice up a portion of Runway 13L-31R at JFK.

Utility & Transportation Contractor | april| 2021 75

®

Amem-of • ���

I

CohnReznick is an independent member of Nexia International

CohnReznick congratulates Smith Sondy Asphalt Construction on 75 years in construction and Atlantic Concrete Cutting on 30 years in business.

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Specializing in all of your trucking needs since 1979

Shark Transportation Inc. • Mark Veniero Trucking 172-178 Passaic Ave. Belleville, NJ 07109 973-759-7888 www.mvtrucking.com NJ SBE Certified • NJ A901 License • PA ACT 90

"Checking in" on New jersey's water infrastructure By: dan kennedy, director of environmental & utility operations TCA continues to work closely with Jersey Water Works (JWW), a collaborative effort started in 2015. JWW is made up of many diverse organizations and individuals who embrace the common purpose of transforming New Jersey’s inadequate water infrastructure by investing in sustainable, cost-effective solutions that provide communities with clean water and waterways; healthier, safer neighborhoods; local jobs; flood and climate resilience; and economic growth.

U

waterways; and demonstrates how effective stormwater management can help mitigate the effects of climate change. Jersey WaterCheck advances the knowledge our state’s leaders need to improve New Jersey’s water infrastructure for individuals, communities, and utilities.

By serving on the Steering Committee for this effort and as a co-chair of its Asset Management and Finance Subcommittee, UTCA is positioned to assist and influence critical work conducted by this collaborative effort. Through JWW, we have generated additional support for increased funding and other priorities for the UTCA.

UTCA and others are working to build institutional and financial capacity in all water systems and to gain support from the federal and state government to overcome decades of underinvestment.

We believe that when residents and businesses are educated on the condition of their underground and unseen water infrastructure issues, they will be willing to invest more to modernize these assets and elect representatives at all levels of government who are willing to address these issues head on.

In addition to prioritizing funding for water infrastructure in New Jersey, it has established the following goals:

UTCA is helping to promote Jersey WaterCheck, a new online resource created by JWW that can be accessed by heading to www.njwatercheck.com.

UTCA contributed to the development of this new tool with the goal of helping bring the status of drinking water and wastewater systems to the light of day. The urgency of the water-infrastructure problem in many (not all) of New Jersey’s older cities and towns cannot be overstated. We hope this new tool can help identify and celebrate those water systems that are succeeding and expose those that are underachieving. This is expected to encourage continued success (for well-run systems) and more aggressive actions to bring failing systems into compliance.

This new website is intended to make it easier for all to learn more about how their local water systems are faring in terms of regulatory compliance, investment, and transparency. Jersey WaterCheck helps New Jerseyans understand our drinking water and wastewater systems; shows how improved water infrastructure can enhance the health of our communities, rivers, and

Benchmarking and Checking in on Water Systems This tool has two main features. The first is the “Benchmark Hub,” which helps utility managers and state leaders dive into the factors that contribute to the need for water infrastructure investment. Here you will find the details, measures, reports, results, and data that JWW has gathered for every water and wastewater system in the state. It should be noted that JWW is partnering with the NJDEP, and their staff should be credited with bringing historically buried regulatory data to the public eye. Do you want to know how many drinking water systems met primary drinking water standards? Do you want to know how much money has been received by the federal government that is used to provide project funding support? Jersey WaterCheck can provide responses to these questions and many more metrics-based measures.

The Pipeline

Bringing Water System Data to your Fingertips

Jersey WaterCheck includes 55 metrics, which are measures of specific conditions. Most of them show information about water and wastewater systems. Data for metrics come from four primary sources: 1) publicly available information provided by government agencies such as New Jersey Department of Environmental Protection (NJDEP) and Delaware River Basin Commission; 2) self-reported survey data from utilities and municipalities; 3) data and information gathered from utility websites; and 4) information from a statewide public opinion survey.

The second feature is the “System Finder,” which gives users a

Utility & Transportation Contractor | april| 2021 85

direct link to their drinking water provider and the agency that cleans the wastewater they create. Using a map or the search box, users can click on individual water systems and learn more about them. In addition to these two features, there is a document center that has a detailed FAQ, explainers on the data and metrics, and other relevant publications from JWW and its backbone organization, NJ Future. Do you want to know if an individual water system is meeting primary drinking water standards? Do you want to know that the general condition of an individual system is? Jersey WaterCheck can provide you responses to these questions and many more representative based metrics.

Big Picture Water infrastructure — like transportation and energy infrastructure — is a basic building block of our economy and quality of life and should be stewarded as such. The mounting needs of our drinking water, wastewater, and stormwater systems will not be resolved without bold action. If we are going to achieve desired outcomes such as cleaner drinking water and less flooding, we need political support to push past the narrative of searching for solutions to the act of implementing them. Educating the public on the condition of their water systems is a big part of what it takes to stimulate this action. We commend JWW and NJ Future on this effort. We hope that it contributes to us reaching commons goals of creating create good jobs for the long term, accelerating planned economic development opportunities, and improving the environment.

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86 Utility & Transportation Contractor | april| 2021

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Congratulations on 75 years in business! Whether at work or play everything you did in your life is first class.

Your mom and dad would be proud!

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l,VERSAL

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FOR OUR CLIENTS AND OUR COMMUNITY Congratulations to Joe Smith, Nick Genchi and all the folks at Smith-Sondy Asphalt Construction for 75 successful years in business. We value your partnership.

MICHAEL TIAGWAD

CONNER STRONG & BUCKELEW

President and Chief Executive Officer

HARRY JOHNSON Senior Vice President, Construction Practice Leader

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STATEWIDE STRIPING CORPORATION ---------------------------------------------PAVEMENT MARKINGS SINCE 1978 EPOXY• TAPE •PAINT• THERMOPLASTIC• REFLECTORS• SIGNS

Congratulations Joe and To your entire Team for 75 years of Success

CORPORATION It has been our pleasure to service Smith-Sandy for 42 years.

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Congratulations Coach & Smith-Sondy Asphalt on 75 years

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the benefits of a wellness program By: tim fitzpatrick, senior vice president, employee benefits, ioa & nancy damato, rda benefit services

I

n the December and February editions of the UTCA Magazine, we wrote articles focused on the concept of level funding for small employers. Our first article discussed some of the general benefits of these programs including flexibility in plan design and network, access to claims data, the opportunity for a return, and wellness incentives. Our follow-up article reviewed some key factors to consider when evaluating these programs: medical underwriting, stop-loss contract, and method of return on a claims fund. This article will dive deeper into one of the little known and often underutilized tools offered by some level-funded programs — the wellness fund.

A wellness fund is an annual pool of money pledged by a carrier to support health and wellness initiatives and foster a culture of wellbeing in the workplace. Wellness funds can be used as cash or cash equivalents for incentives but cannot be used to fund medical premium differentials or spending account contributions. Carriers are willing to make this investment because they understand that proactive efforts in this area can lead to more sustainable and even improved claims trends.

Wellness is a very broad term, so it can be difficult for an employer to determine which services fit within the category. The good news is that this ambiguity can provide a tremendous amount of flexibility. Although programs do lay out some guidelines for how the fund can be utilized, most are willing to provide latitude for interventions that make sense and serve the goal of improving employee health. A few initiatives to consider are biometric screenings, incentivizing preventive care, basic utilization education, and safety supplies: • Biometric Screenings — Employers are increasingly seeing value in providing their employees with the opportunity to participate in onsite biometric screenings, which are convenient and can help employees gain vital knowledge about their health — especially if they do not receive an annual physical examination routinely at their doctor.

Wellness funds can subsidize the cost of administering these exams.

• Incentivizing Preventive Care — When onsite biometric screenings are not feasible, organizations can consider financially incentivizing their employees to complete their preventive care goals, which can include annual physicals,

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level-funded medical programs:

age-appropriate health screenings, or the completion of health risk assessment. Gift cards are frequently used with this approach.

• Basic Utilization Education — Many employees struggle with understanding and navigating the basic components of their medical plan. Increasing literacy in this area can help employees make more informed decisions about their healthcare and ultimately become confident consumers. A simple way to drive engagement is to provide financial incentives to employees who complete tasks such as registering on a carrier website or completing a quiz using knowledge gained from exploring the online tools provided by that website. Gift cards are a common method of incentive for this approach as well.

• Safety Supplies — Initiatives within a company’s existing safety programs can also qualify for use of a wellness fund. Electrolyte drinks for construction workers in hot conditions or ergonomic workspaces for office employees are both examples of practical uses of a wellness fund. In response to the COVID pandemic, some programs have even modified their guidelines to allow reimbursement for the purchase of personal protective equipment.

Due to financial and capacity constraints, small employers are often compelled to focus exclusively on the cost and core benefits when comparing health plans from various carriers. It is more prudent, however, to consider the additional benefits each carrier can provide, gaining a complete picture of their overall offering. Wellness funds, disease management programs, and fitness reimbursements are just a few important features that are available. A wellness fund, in particular, can help to develop a more holistic approach to an employee benefits package, fostering a more educated, satisfied, and productive employee base. Each initiative and its method of reimbursement or incentive should be reviewed internally to make sure that it aligns with company culture and reviewed externally with insurance and tax experts to make sure it is delivered in a compliant fashion.

Utility & Transportation Contractor | april| 2021 97

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what new jersey contractors need to know about the state's new online bidding laws By: mitchell taraschi, connell foley llp

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n July 16, 2020, Governor Phil Murphy signed the Electronic Construction Procurement Act (“ECPA”) into law. The ECPA, which becomes effective starting April 2, 2021, intends to establish a new system for electronic procurement (“e-procurement”) — also known as online bidding — related to public works contracts. In fact, all “State Contracting Units” that contract for the procurement of goods, services, or the construction of public works pursuant to the State College Contracts Law or Chapter 32, 33 or 34 of Title 52 will be required to utilize e-procurement for public works construction contracts whenever the project requires public advertisement. The new e-procurement system will be a unified “closed loop” system allowing contractors, vendors, and bidders to both receive bid solicitations and documentation and submit bids electronically.

The system will feature a “digital lockbox” that will prevent access to bid information by third parties prior to the bid deadline.

Further, bidders will be able to withdraw and resubmit their bids at any time up to the published bid deadline. The system will also provide all alerts related to the bidding process directly to bidders. The hope is that online bidding will streamline the public bidding process and allow state contracting units to allocate staff more efficiently and reduce costs associated with the current paper-based public contracting and purchasing system. In addition, electronic purchasing systems may increase the transparency of the contracting and bidding process, achieve value and promote competition, expand the supplier base, maintain financial controls, measure contractor performance, and promote efficiency in workflow and approval authority.

Pursuant to the ECPA, New Jersey’s State Treasurer is now required to develop regulations for the e-procurement of public works contracts. Although not yet promulgated, the regulations will apply to all State Contracting Units. Specifically, the regulations will set forth procedures to be followed by each State Contracting Unit for all e-procurement covered by the ECPA and will also outline the standards to be followed by State Contracting Units when awarding contracts through e-procurement. Certain requirements for e-procurement bids are already outlined in the ECPA. These requirements include the general conditions of the contract; plans and specifications of the public works construction project; competitive bidding for the contract, if appropriate; classification of firms submitting bids; statement of corporate ownership of the entity or entities submitting bids; bid bond and performance bond security; execution of the contract; certification of financial ability to complete the work; commencement of

work; prevailing wage mandate; acknowledgement of addenda; naming of prime subcontractors; specified alternates; non-collusion affidavit; and political contribution disclosure.

The State Treasurer will also be developing a bid proposal form that prospective contractors can utilize in submitting their bids through the new e-procurement process. The regulations will require that a contractor or vendor seeking a contract for public works construction pursuant to the ECPA be classified with the Division of Property Management and Construction in the Department of the Treasury or be prequalified by the Department of Transportation, New Jersey Transit, or the New Jersey Turnpike Authority prior to submitting a bid.

The State Treasurer will also require that the electronic procurement process meet the following criteria for functionality: allow for a business or company that creates or provides software to effectuate electronic procurement to provide those services, if the business or company has prior experience providing electronic procurement services to the State and to other public entities; allow public contracting units to advertise bids and distribute bidding documents, including plans and specifications; be a closed loop system that allows contractors, vendors, and bidders to receive bid solicitations and documentation, as well as submit bids electronically; provide a digital lockbox that ensures that bid information cannot be accessed by a third-party before the bid deadline, including an electronic bidding servicer or the state; allow bids to be encrypted upon submission and when in the digital lockbox; use digital signature technology and provide for identity verification; allow for electronic bid validation; allow bids to be withdrawn and resubmitted by the vendor or bidder at any point up to the published bid deadline; allow addenda to be issued electronically with addenda automatically applied to the online bid form; provide capabilities to create and edit templates of bid forms; provide the means for the State to require data types, including but not limited to numeric prices; alert contractors, vendors, and bidders of missing required data; provide email notification to contractors, vendors, and bidders of issuance of bid advertisement and addenda; provide commodity or classification codes as required by the contracting agency to allow for targeted notifications to contractors, vendors, and bidders; provide system implementation services and training to public contracting units at no cost; and offer scheduled training webinars for contractors, vendors, and bidders at no cost. Contractors might find that being alerted to missing required data

Utility & Transportation Contractor | april| 2021 105

NEWS

is particularly helpful given that bids are often rejected due to oversights made while scrambling to submit bids.

The ECPA additionally references and partially incorporates regulations related to a statute passed in 2018, the Local Unit Electronic Procurement Act (“LUEPA”). Under the ECPA, “Local Contracting Units” (defined as any government entity that contracts for the procurement of goods, services, or the construction of public works pursuant to the Public School Contracts Law, the County College Contracts Law, or the Local Public Contracts Law) are permitted to use e-procurement procedures for public works construction contracts, provided they follow the regulations promulgated under the LUEPA when doing so.

However, it is not mandatory that Local Contracting Units utilize e-procurement. The Director of the Division of Local Government Services, housed within the Department of Community Affairs, has developed regulations under LUEPA in consultation with the State Comptroller, State Attorney General, the Department of the Treasury’s Division of Purchase and Property, and other state agencies. These regulations were adopted on an emergency basis due to the COVID-19 public health emergency and will remain in effect until 90 days after the end of the public health emergency (the normal rulemaking process is currently playing out with regard to these regulations, as the deadline for comment expired on July 15, 2020). The LUEPA regulations set forth minimum standards for the electronic procurement of goods, services, and public works by local units, as well as the sale of surplus personal property and the sale and lease of real

106 Utility & Transportation Contractor | april| 2021

property by electronic means. The regulations also seek to provide the same integrity and procedural protections afforded by sealed public bidding in order to ensure that contracting in an electronic environment remains competitive and fair.

As noted above, the implementing regulations for the ECPA and LUEPA are being developed by two different sources, the former coming from the State Treasurer and the latter coming from the Director of the Department of Community Affairs’ Division of Local Government Services. As a result, there appears to be little chance that any semblance of complete uniformity will be achieved between the two sets of regulations, despite such uniformity at one time seeming to be the goal of modernizing New Jersey’s e-procurement procedures. With the enactment of the ECPA and the coming regulatory framework from the State Treasurer, having an accurate understanding of New Jersey’s new e-procurement procedures is more important than ever. Based on the statutes and regulations enacted thus far, however, the future of e-procurement represents a helpful evolution of the bidding process for contractors and vendors who bid on public works contracts.

About the Author. . . . Mitchell Taraschi is a partner in the Construction Law practice group at the Connell Foley LLP law firm. He represents owners (public and private), construction managers, and contractors in construction disputes, including defective construction, contract disputes, delay claims, acceleration claims, back-charges, lien disputes, public bid disputes, and OSHA violations. Mr. Taraschi also drafts and reviews construction contracts (construction manager agreements, general contractor agreements, subcontractor agreements) for public and private owners and contractors.

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