Portland Water District

High cost of low bids: Environmental, safety violators get stimulus contracts

Workers replace a sewer line on Washington Avenue in Portland last year. The metal structure protects them in the event of a trench collapse. Failures to comply with excavation and protective system requirements are among the violations committed by companies that have received federal stimulus funds for infrastructure work in Maine.

PORTLAND — Federal stimulus funds funneled into Maine may have resulted in a reported 1,600 jobs and improvements to infrastructure all over the state.

Since 2009, the federal government has awarded $1.4 billion in American Recovery and Reinvestment Act funds to public, private and nonprofit organizations throughout Maine. The largest awards went to projects for roads and water main replacements.

The money was awarded to state agencies, which then hired contractors to carry out the projects. Some of the largest awards were to the Maine Department of Transportation and the Portland Water District.

Both PWD and DOT pick contractors based on the lowest bids. This process saves money, but can also result in companies cutting corners to achieve the lowest bids.

Many contractors have few or no violations of federal Occupational Safety and Health Administration or state Department of Environmental Protection laws. But in some cases, the agencies awarded contracts to construction companies with histories of violating state and federal laws.

The Portland Water District utilized the Maine Drinking Water Project’s State Revolving Loan Fund for 14 projects totaling $4.5 million in southern Maine.

All but $1.3 million of the award was an interest-free loan and will be paid back to the state.

Dearborn Construction of Buxton had the lowest bid on two PWD projects: water main replacements on Elizabeth Street in Portland and Wards Hill Road in Gorham, totaling $825,000.

“We go with the lowest bidder,” Chris Crovo, a PWD engineer, said of the district's selection process.

In this case, that meant awarding bids to a company with several recent OSHA violations, as well as a recent violation of Maine’s environmental laws.

On Sept. 29, 2009, an OSHA inspector fined Dearborn $28,500 for three serious violations, two of which were repeats, meaning the company was cited for the same offense, or one very similar, in the previous three years.

The largest of the fines, $21,000, was a repeat violation for failing to protect employees during excavations. Another repeat violation, for failing to have daily inspections to avoid trench cave-ins, resulted in a $6,000 fine.

Portland City Hall roundup: Poll asks about public utility ...

This would be a great idea. Somehow Randy raising rates 50% in 3 years and then planning for another 85% over the next few years isn't real palatable - And they haven't had to do any actual work for EPA yet. The guy needs a leash.

Also, we could just make Randy go to the PUC for a rate increase. RIght now, if Randy wants to raise rates nobody can do anything. That much power for person with megalomania isn't safe.

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