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UCANE E-News

November 12, 2009
Submitted by Lauren Garzik
Administrative Assistant

Mike Galli Leaves UCANE

Mike Galli, UCANE’s Legislative Liaison, recently made a career change and has relocated to Dallas, Texas. Mike joined UCANE just over a year ago, and while new to our industry, he was able to jump right in and become an integral part of our Association. We will miss Mike and wish him all the best!

Expected Rate Increase for Mass. Unemployment Insurance

The Massachusetts Unemployment Insurance Trust Fund which covers unemployment checks is in the red, and predictions are that it will not be back in the black until 2013.  As a result, employers may be required to pay increased unemployment insurance rates of $200 per employee next year, raising the average cost per employee to $800.

Due to rising unemployment and increased drawdowns from the formerly employed, the Trust Fund will rely on loans over the next four years from a federal account which will help to cover the $55M deficit in the employer-funded contributions that pay benefits to the unemployed.

The average annual unemployment rate is expected to jump from 8.7% in 2009 to 9.7% in 2010, with a loss of approximately 110,000 jobs, according to a report from the labor secretariat tracing the Trust Fund.
John Regan, Executive Vice President at Associated Industries of Massachusetts (AIM), said that the business trade group will not oppose the expected rate hike.  “The rapid decline in employment is driving this equation in a way it hasn’t in 30 years,” Mr. Regan told the News Service.  “At this point a rate freeze would be imprudent.”

AIM is hoping to push through a bill (H 1814) that will seek reforms to the unemployment insurance system.  This bill would require businesses, primarily, construction companies and industries, to pay more, due to the fact that they have seasonal employment, and lay off employees more often.

The Trust Fund’s ending balance as of July 31st was $661.9M, the employer contribution balance was $548.1M, and the government’s contribution stood at $113.8M.  Federal stimulus funds are expected to supplement the Trust Fund with $108M, adding to the $54.2M the state received earlier this year.

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MWRA Advisory Board Update

AB Urges a Level Rate Revenue Requirement for FY11

In a letter sent to MWRA Chairman Ian Bowles and Executive Director Fred Laskey, MWRA Advisory Board Chairwoman Katherine Dunphy urged the Authority to keep the rate revenue requirement for communities level funded for FY11.  This approach, endorsed by the Advisory Board’s Executive Committee on October 9, would result in a 0% wholesale rate increase for many communities.  The bleak economic situation facing the Commonwealth is spurring further reductions in the state budget.  Local aid cuts are likely to occur in order to close the growing budget gap.  Potential reductions in local aid in FY10 and FY11 will put additional pressure on cities and towns, which have already cut staff and services to balance their budgets.  “If ever there was a year to allow cities, town, and especially ratepayers to catch their breath, it is FY11,” said Chairwoman Dunphy.  The Advisory Board is urging Authority staff to make use of various “tools” provided in the Advisory Board’s review of the Proposed FY10 budgets, which include many potential areas of reductions.  Advisory Board staff will work with Authority staff to achieve this ambitious, but necessary goal.

MWRA Aiding in Emergency Preparedness in Communities

The Department of Environmental Protection (DEP) has required all water suppliers to update emergency plans for significant new emergency scenarios and to submit a completed checklist by December 31, 2009.  MWRA is developing a template to help communities.  The template will include DEP’s revised notification strategies, required DEP forms, outline response plans to specific new scenarios and other technical information to comply with DEP requirements.  Communities will be able to input their system information or append the MWRA documents to existing local emergency plans.  The template is expected to be ready in November.  MWRA staff will be in touch with Water Department staff in communities to coordinate this effort.

Governor Cuts DSA, Clinton Money

Governor Patrick announced sweeping mid-year 9C cuts to the state budget in the face of a $600 million deficit four months into FY10.  This is the fourth time over the past year the Governor has made emergency cuts to the state budget.  The $500,000 from the Commonwealth Sewer Rate Relief Fund, also known as Debt Service Assistance (DSA), was completely eliminated.  Also eliminated is the $500,000 reimbursement for the Clinton Wastewater Treatment Plant.  These cuts follow the loss of chemical reimbursements totaling more than $900,000 at the start of the fiscal year.  The Governor indicated that 2,000 state jobs are also in jeopardy; some positions depend on union concessions, others will be eliminated.  The Governor is seeking expanded 9C authority from the legislature to make cuts to non-executive branch agencies, which could include local aid, as well as cutting $277 million across executive branch agencies.

AB Testifies for New Bottle Bill

Executive Director Joseph Favaloro testified in support of H.3125:  An Act to Expand the Bottle Bill at a legislative hearing this month.  This bill would expand the existing Bottle Bill to include a 5-cent deposit on bottled water containers.  Unreturned deposit receipts would be placed in a dedicated fund available to municipalities, water districts and the MWRA to be used for water and sewer infrastructure repairs and projects.  Funding for local water and sewer infrastructure projects has been slashed in recent years.  When the Bottle Bill was written 27 years ago, bottled water was not on the radar.  Today, Americans spend billions of dollars a year on it.  In addition to its environmental impact, reduced usage of public water causes challenges in communities.  The Advisory Board testified that the state should seize the opportunity to update the Bottle Bill in order to re-invest in the public water and sewer infrastructure.  This updated bottle bill would create a win-win situation for communities, for ratepayers, and for the environment.  The bill was supported by the Metro Mayors Coalition; in addition, 100 communities have signed on in support of an expanded Bottle Bill in some format.

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REMINDER
Massachusetts 20% Apprenticeship Program Effective July 1, 2009

The Division of Apprentice Training (DAT) has offered assistance in complying with Section 33 of S2061, An Act Mobilizing Economic Recovery in Massachusetts, which requires 20% apprentice participation on all projects funded in whole or in part by the American Recovery and Reinvestment Act (ARRA) of 2009.

The MassDEP has stated that any SRF project in excess of $1M, bid after July 2, 2009 will contain this requirement, since all SRF projects will receive a portion of ARRA funds.  Contractors bidding on these projects are advised to read Section 33 of S. 2061, An Act Mobilizing Economic Recovery in Massachusetts, in order to familiarize yourself and comply with this law.

SECTION 33. 
  1. Notwithstanding any general or special law to the contrary, the following requirements shall apply to any public works project funded by the American Recovery and Reinvestment Act of 2009 where the amount of construction costs under any contract awarded is likely to exceed $1,000,000.  For the purposes of this section, “public works” shall mean building or work the construction of which is carried on by authority of the commonwealth, or by a county, town, authority or district, or with funds of a federal agency or the commonwealth or a county, city, town, authority or district to serve the interest of the general public, regardless of whether title thereof is in the commonwealth or in a county, city, town, authority or district; provided, however, that for the purposes of this definition, “construction” shall have the meaning
    provided in section 27D of chapter 149 of the General Laws.
  2. For any public works project subject to subsection (a), the specifications set forth in any request for responses shall include a requirement that, on a per project basis, not less than 20 per cent of the total hours of employees receiving an hourly wage who are directly employed on the site of the project, employed by the contractor or a subcontractor and subject to the prevailing wage, shall be performed by apprentices in bona fide apprentice training programs as provided in sections 11H and 11I of chapter 23 of the General Laws which are approved by the division of apprentice training in the executive office of labor and workforce development.
  3. During the performance of a public works project subject to subsections (a) and (b), the contractor shall submit periodic reports to the awarding authority with records indicating the total hours worked by all journeymen and apprentices in positions subject to the apprentice requirement.  In any instance in which the apprentice hours do not constitute 5 per cent of the total hours of employees subject to the apprentice requirement, the contractor shall submit a plan to the awarding authority describing how the contractor shall comply with the apprentice requirement.
  4. The attorney general shall have all the necessary powers to require compliance with the requirements of subsections (a), (b) and (c) therewith, including the power to institute and prosecute proceedings in the superior court to restrain the award of contracts and the performance of contracts.  Prior to award of the contract, an awarding authority may petition the attorney general for approval to adjust the requirements set forth in said subsections (a), (b) and (c). The attorney general may adjust these requirements only if he determines that compliance with these requirements is not feasible or if application of the requirements would be preempted
    by federal law.
  5. An awarding authority serving a low-income population may require additional specifications that address the needs of its clients including, but not limited to, preferential hiring for residents
    of public housing authorities for available apprenticeship positions.
  6. Subject to appropriation, the division of apprentice training shall enhance its outreach efforts to underserved populations in order to increase and diversify the number of apprentices in the
    commonwealth.
Program Sponsor Application Process

An employer may start the application process by calling the office at 617-626-5409 to schedule a meeting with field personnel.  Staff will schedule a meeting within two weeks of initial contact.  At this meeting field staff will verify the place of business and explain the requirements of the apprenticeship model. Sponsor applicants may view a sample copy of the standards and all
statues, regulations and policies on the DAT website @ www.mass.gov/dat.

Only original copies of the Standards as supplied by staff will be accepted.  Field staff will help the applicant fill out the necessary forms and explain how the apprenticeship model works.  A meeting will be scheduled at the applicant’s place of business.

The sponsor will be required to have:

The fees associated with the Division are as follows:

The approval process can take between 2-4 weeks depending on the complexity of the program, scheduling and promptness of requested paperwork.  All new programs will have a one year probationary period which will not affect their ability to bid publicly funded projects.  

In order to speed up the application process, group sessions may be conducted at various locations throughout the state.  DAT has four field representatives with offices in Boston, New Bedford, Springfield and Worcester who are available to speak with groups and individuals regarding the Do’s & Don’t of prevailing wage requirements for apprenticeship programs.

NOTE:  The Division of Apprentice Training (DAT) has offered assistance in complying with Section 33 of S. 2061. 

Click Here to Visit DAT

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Tel: (617) 471-9955 • Fax: (617) 471-8939 • 300 Congress Street, Suite 101 • Quincy, MA 02169