ACECL September 2020 ENewsletter

ACECL is creating a new Committee. The purpose of the Risk Management Committee will be to assist member companies and others in understanding and managing risk and, on their behalf, to advocate changes in legislation and regulation to properly control or allocate risk. The financial and business development aspects are the main things that are commonly left out of the risk management discussion. Do we expand our territory or stay put? Venture into new areas of expertise or stick to what we know? Do we need a fulltime marketing director? If so, why? Pay big bonuses and higher salaries or reinvest in the company and spread ownership around? Effect of tax loopholes and liabilities. These and other issues will be explored. Tripp McCormick of Galloway Johnson Tompkins Burr & Smith will serve as inaugural chair.

Committee Sign Up Form

FP&C RESPONDS TO ACECL PUBLIC COMMENTS ON RULE CHANGES

On August 26, ACECL once again submitted comment to FP&C relative to their Rules change.

It was evident that FP&C’s biggest concern is where designers over-estimate project cost and recommends project scope reductions, and then bids come in lower than AFC. FP&C then expects consultants to “design the removed portion of the project” to get back up to the AFC, without paying additional designer fees. Danger is if this language is ever applied outside of these expressed concerns. We need to keep a watchful eye moving forward (if a member feels this interpretation was unjustly applied to their project situation).

At a minimum we made our point, along with AIA, to emphasize the concern of designer’s responsibility with respect to the actual bid prices vs AFC. I hope that they will be lenient on this issue as they state that they will be and have been. Ultimately the rules we have are:

Base Bid must be less than AFC
Alternates greater than AFC must be ‘approved’ since fees are increased.

Click here to view FP&C response.

FIRST CIRCUIT COURT OF APPEAL GRANTS ACECL MOTION TO FILE AMICUS CURIAE BRIEF

The First Circuit Court of Appeal has granted ACECL's motion to file an Amicus Curiae Brief in support of the original application for supervisory relief granted in the matter City of Walker, etal vs. State of La through DOTD, etal. The basis of the brief was in protection of the design community's standard of care and was filed by ACEC/L in furtherance of our advocacy for the appropriate legal and liability systems affecting the industry.

The following is a summary of the ACECL argument as reflected in the brief:

The ruling left untouched would have profound implications not only to those who render professional engineering services, but to all professionals regardless of their field. What the trial court has ultimately said is that the duty of the professional is without any limitation. It is not bounded by contractual terms, by specific undertaking, or by the generally accepted principals of a profession. Rather, the district court has found that there is a previously unidentified duty not in any way tied to the standards of the engineering profession or the contractual undertaking pertaining to the specific project, but is instead a duty created helter-skelter through the perfect lens of hindsight where professional judgment must be in error when the professional does not prevent the result complained of by those not in privity with the professional.

Acceptance of the motion is a good indication the court will take up the appeal.

Click here to read ACECL Amicus brief and Grant of Motion.

2020 SPECIAL SESSION

The Legislature called itself back into a Special Session on September 28. It will be a 30 day session and included 70 different call items. The leaders of the House and Senate have indicated the main purpose of the session - regardless of the call - is to take up the governor's sole authority to declare/continue a state of emergency and dealing with other operations of government impacted by COVID and Hurricane Laura, particularly keeping depletion of Unemployment Insurance fund from triggering a significant tax increase on employers. There is one bill from the 2020 Regular Session field by LES on behalf of LaPELS that has been filed and is moving. It was advanced from Senate and Governmental Affairs Committee today. There were a lot of questions about the required oral exam for land surveyors. That part of the law was not being changed but it generated questions nonetheless.

As background on the LES bill, back before the 2020 Regular Session started, I advised you that (LES) was sponsoring legislation supported by the Louisiana Professional Engineering and Land Surveying Board (LAPELS) to make changes to the Engineering and Land Surveying licensing law. That legislation did not advance after the Regular Session was suspended and was not filed during the first special session. While they did not ask for Sen. Hewitt to move it during this current special session, LES learned yesterday that she had filed the bill for this 30 day second special session. Here is the information I had provided back in February:

While most of the items are housekeeping, there is one change that is a bit more substantive in nature. This proposed change provides an alternative path to licensure as a Professional Engineer in Louisiana, copying what has already been done in numerous states around the country.

(c) A graduate of an accredited engineering curriculum of four years or more approved by the board as being of satisfactory standing, who has twenty or more years of progressive engineering experience in work acceptable to the board, who is of good character and reputation, who has passed the examinations required by the board, and who has satisfied the requirements of R.S. 37:694.

This change would allow an engineer with 20 years of progressive experience and that has passed the PE exam to be licensed in Louisiana without having taken or passed the FE (Fundamentals of Engineering) exam (also known by many as the EIT exam). This change would in effect substitute 16 years of progressive engineering experience for the FE exam.

Below is a mark up of the rule and talking points about the changes provided by LES for your information.

Click here for rule mark up

Click here for talking points

IN CASE YOU MISSED IT

Brad Tate, senior manager in Hannis T. Bourgeois' New Orleans office, discusses many issues facing PPP borrowers as they make decisions on moving forward

through the forgiveness with cases & examples to assist through the process.

Click here to view webinar

Click here for presentation

Mary Kincaid P.E., Sustainable Infrastructure Program Manager, City of New Orleans discusses opportunities for firms to work with municipalities, schools, and agencies on competitive applications for BRIC funding. FEMA is emphasizing "nature-based solutions" for project considerations, and the City of New Orleans has had a great deal of success in using this approach for both post-disaster HMA and competitive grant awards.

Click here to view webinar

Click here to view presentation

Steven Loeb, Attorney with Breazeale Sachse and Wilson, presented the ACECL Surveyors Annual Seminar. Click here to view presentation.

AFFILIATES SPOTLIGHT

Benefits. It’s our sole focus. The company benefits you offer to employees and the benefits of working with benefitsone.

Our expertise is grounded in traditional benefits — medical, dental, pharmacy, life, disability, vision and retirement plans. We’re also well-versed in specialty offerings that enhance a company’s benefits line-up, including concierge services, telemedicine and tele-behavior health.

We’re a small, yet vibrant and growing employee benefits consulting firm. But our focus is big and bold: We deliver best-in-class products, customized for our clients’ unique needs and industries and delivered with exceptional service and personal attention.

Our knowledge of employee benefits runs deep, with nearly 100 years of industry experience collectively across our benefitsone team. We’re committed to the industry and are certified by respected organizations. This credentialing keeps us sharp and current on the benefits industry’s demands and ensures our ability to meet your business’ needs.

When we’re not helping our valued clients, we actively advocate for the benefits industry. We do this in the work we do in our community and by our involvement in leading associations. As a locally focused firm that works in our community and throughout Louisiana, we have a vested interest in meeting your needs because our reputation is at stake.

Jack Duvernay, RHU

President

985.800.2800 main

504.512.5252 cell

www.benefits.one

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Kevin Laborde

President

Durable Piling Restoration, L.L.C.

504-554-3700

www.durablepiling.com

Durable Piling Restoration, L.L.C. was formed in 2012 with one objective in mind, to efficiently and effectively provide repair solutions for infrastructure. That emphasis has evolved from repairing utility poles, to timber pilings on concrete bridges and other bridge components. While mostly focused on timber repairs, with over 400 repaired piles to date, Durable has also developed expertise in carbon fiber repairs on concrete structures too. Simply put, we aim to reduce the number of structurally deficient bridges in our communities.

Unlike many other contracting firms, we have never desired to be the largest in our field, instead deciding to be the best. In fact, Durable’s small size allows us to quickly react to each project with thoughtful solutions. Durable’s repair methods have been tested and approved, are quick to deliver and low in cost. Most importantly, customers like what we do.

When considering creative, responsive and dependable partners to resolve your infrastructure challenges, think Durable.

www.durablepiling.com

504-229-2506

CxA Services, LLC is a Certified Commissioning Authority located in Lafayette, LA. We are pleased to be a certified small business under the Hudson Initiative by the LED.

Commissioning is the process of planning, documenting, scheduling, testing, adjusting, and verifying equipment operates as a fully functional system per the Owner's Project Requirements.

CxA provides Fundamental and Enhanced commissioning services on HVAC and Electrical Systems for projects in a manner that is consistent with ASHRAE and ACG Commissioning Guidelines. These guidelines provide a proven method for successful commissioning of all projects including LEED project requirements. Our team has over 19 years of experience performing commissioning services for the federal government, healthcare facilities, and private industry clients. Our main office is in Lafayette, LA and we can be contacted at 337-237-5396. You can visit our website at www.cxaservices.org for more information.

Ken Credeur

CxA Service, LLC

3909 West Congress Street * Suite 101 * Lafayette, LA 70506

337-237-5396 (o) ext 3 * 337-804-2370 (c)

TRANSPORTATION NEWS

Congress Poised to Extend Federal Transportation Programs

Legislation introduced September 21 by congressional leaders would extend surface transportation programs under the FAST Act for one year. In the absence of a multi-year reauthorization, ACEC and other industry stakeholders have lobbied lawmakers in support of a one-year extension to provide funding stability to clients before the current programs expire on today.

The bill would retain current funding levels and transfer $13.6 billion to the Highway Trust Fund to maintain solvency through Fiscal Year 2021. It also transfers $14 billion into the Airport & Airways Trust Fund to support the Airport Improvement Program.

ASCE has commended the House of Representatives for extending federal highway and transit programs for one year, but has expressed disappointment that the legislation maintains flat funding and does not address emergency relief for state departments of transportation and transit agencies. At current spending levels, the US faces a roughly $2.1 trillion surface transportation spending gap from 2020 through 2039, according to a preliminary report from ASCE released Wednesday. These preliminary findings state that if industry costs are passed onto customers, costs per household could be as high as $12,500 over 20 years, or $625 dollars per year.

Click here for industry letter to Senate and House Leadership to pass surface transportation law.

Update on previous information regarding federal agencies and potentially State DOTs demanding “credits” from firms that receive forgiven PPP loans:

ACEC met with Dept of Defense and received clarification that in situations where a firm has a forgiven PPP loan there is no requirement to credit DOD unless the firm received assistance through a separate program (Sec. 3610), and then only for the amount of that reimbursement. Confusion arose in the context of FAQ guidance issued by the DOD Office of Defense Pricing and Contracting (DPC), which included the following language: "...to the extent that PPP credits are allocable to costs allowed under a contract, the Government should receive a credit or a reduction in billing for any PPP loans or loan payments that are forgiven. Furthermore, any reimbursements, tax credits, etc. from whatever source that contractors receive for any COVID-19 Paid Leave costs should be treated in a similar manner and disclosed to the government."

ACEC had organized an industry coalition letter expressing objections to this interpretation when it initially appeared and ACECL reached out to our congressional delegation for assistance, as it was worded in such a way as to apply to any federal contractor with a forgiven PPP loan. In follow-up correspondence the DOD DPC stressed the following: "If a firm receives a PPP loan and it is forgiven, and the firm did not receive any Sec. 3610 reimbursement, then we would not expect a credit. Our guidance regarding credit and resulting clause to notify and credit is tied to Sec 3610 Act/reimbursement."

We are obviously encouraged by this clarification, as this will be helpful to ACEC in working with FHWA and other agencies that will be influenced by DOD's approach. ACEC did recommend that DPC add language to Q&A 23 in the FAQ document to make it abundantly clear that the references to credits and forgiven PPP loans are limited solely to Section 3610 payments.

This is a positive step forward, although we still have work to do in clarifying guidance released by the Office of Management and Budget (OMB) which would also direct agencies to pursue credits in the context of federal contracts from firms that have received PPP assistance. ACEC will continue to argue that programs such as PPP loans were created in response to an extraordinary event, where the clear intent of Congress has been to provide assistance to employers, not discounts to public agencies.

ACEC Research Institute Hosts Online Panel on Accelerating Infrastructure Project Delivery

The ACEC Research Institute, in partnership with Accelerator for America and the New Partnership on Infrastructure, hosted an online panel looking at recommendations to empower localities with effective project delivery tools and processes.

The panelists were Jamie Rubin, CEO of Meridiam NA; Manisha Patel, vice president at WSP USA; and Andy Winkler, associate director at the Bipartisan Policy Center.

In the panel discussion, the panelists discussed three of the 26 recommendations for improving infrastructure delivery in Community Serving Infrastructure: A Playbook for a New Infrastructure Partnership, which was recently published by the New Partnership for Infrastructure, the ACEC Research Institute, and several other organizations, including WSP USA and HNTB.

Click here to listen to the hour-long panel discussion.

Click here to access the first panel discussion, which focused on Funding and Financing Infrastructure.

Additional panels will be held on:

October 7: Holistic Infrastructure Planning and Design

Click here for information on federal highway programs available to local agencies.

DOTD issues new Design Report instructions. Click here to review instructions.

Click Here for Fillable Form

2020 ROBBY CANGELOSI AWARD

Each year ACEC of Louisiana presents an award to recognize the accomplishments of a young professional engineer who is contributing to the engineering profession and demonstrating the ability to positively impact the community through professional accomplishments and community involvement. This award was implemented in 2015 in memory of our past Board Member, friend, and leader in the engineering community, Robby Cangelosi.

Please find attached the Nomination Form, along with the criteria, to apply for the 2020 Robby Cangelosi Award . As we had a great number of applications submitted last year, we encourage those applicants to once again apply this year, and also request that firm principals encourage our emerging engineering leaders to apply.

This 2020 award will be presented at the ACEC/L Annual Fall Conference awards luncheon which will be held in Baton Rouge, Louisiana on November 5, 2020 at the Marriott Hotel.

Also, please note the application for the 2020 award is due in our office no later than close of business on OCTOBER 5, 2020 by mailing to:

ACEC/Louisiana, Attn: The Robby Cangelosi Award

9643 Brookline Avenue, Suite 112

Baton Rouge, Louisiana 70809

or by hand-delivery.

Upcoming Meetings

Click here to Register!

2020 NATIONAL ACEC FALL CONFERENCE IS VIRTUAL

If you have not been able to attend one of the national ACEC conferences in the past, this year you will have an opportunity to get the same great programming and speakers without leaving your office. Mark your calendars for October 28-30 for this unique opportunity.

Click here to register

EARLY BIRD REGISTRATION ENDS TODAY.

2020 STATE ACEC FALL CONFERENCE WILL BE IN PERSON!

Yep, we're doing it! The ACECL Fall Conference is on and will convene November 5 in Baton Rouge at the Marriott Hotel observing social distancing protocols. Registration opens tomorrow. Watch your in-box for the Registration email!

Results are in from the ACEC Business Impact Survey (Wave 8). More than 400 members participated:

75% of firms feel the condition of the US Economy is worse compared to March.
Fewer firms (down to 19% from 23% in May) are optimistic about a “return to normal” within six months.
46% of firms still feel it will take another 12 to 18 months to return to normal.
Although increasingly pessimistic about a quick economic rebound, most firms report their finances and cash flow are the same or better than before the Pandemic.
31% of firms say their backlog has increased since the beginning of March; 47% say their backlog has decreased.
29% of firms say they have less than 3 months of backlog, 30% have 7 to 12 months of backlog and 13% have more than 12 months.
Nearly six out of ten firms (58%) indicate they have experienced Pandemic-related work stoppages. Larger firms are more likely to be affected by stoppages than smaller firms.
More firms report work stoppages in commercial (35%) and transportation (35%) markets than other markets.
90% of office buildings are open, but only an average of 56% of employees are working in these buildings.
Larger firms are less likely to have employees working in office buildings. Larger firms report looking to reduce their office space.
The percentage of firms not allowing air travel to meetings/conferences has increased (more the 50% of firms.) The one exception is for meetings with 10 or fewer attendees.

ACECL MEMBERS VOLUNTEER IN LAKE CHARLES

Several ACECL firm members volunteered to prepare, cook and serve meals to Troop D and the La State Troopers Association members. Thank you Alex Guillory (Bluewing Engineering); Tammy Broussard (Meyer & Associates); Colby Guidry, Nash Romero, Brock Sonnier, (Huval Engineering); Butch Babineaux (C.H. Fenstermaker); Wilfred Barry (SJB); and David Dupre (Meyer Engineering) for your time and talents!