State Recovers $610M in Big Dig Related Cases

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BOSTON — The civil and criminal legal tussles over the problem-plagued Big Dig ended today after the state settled the final cases related to the fatal ceiling collapse in July 2006.

A total of $610,625,000 has been recovered by Attorney General Martha Coakley's office from various vendors and contractors who worked on the massive Central Artery project that put a tangle of highways, including I-90 under the heart of the state's capital. The project was plagued with cost overruns and faulty work, including a concrete ceiling panel in the I-90 connector tunnel that fell on a vehicle, killing the driver.

There is one remaining outstanding civil-cost recovery matter, unrelated to the ceiling collapse, that should be resolved in the coming weeks.

On behalf of the commonwealth, the Massachusetts Turnpike Authority and the Massachusetts Highway Department, the attorney general entered into a settlement agreement with ceiling designer Gannett Fleming Inc., resolving the pending civil claims against the company in connection with the collapse. Gannett Fleming has agreed topay $1,525,000 into the Central Artery Statewide Road and Bridge Infrastructure Fund, also known as the TIF, $50,000 to the city of Boston, and forgo $150,000 in payments from the MTA. 

Sika Corp., manufacturer of the epoxy glue used in the ceiling that was sold to Powers Fasteners Inc., has agreed to pay $200,000 into the fund. Powers Fasteners resolved both criminal manslaughter indictment and civil claims in a $16 million settlement on Dec. 17, 2008, and entered into a deferred prosecution and corporate compliance agreement.

Coakley's office is dismissing claims against Sigma Engineering International Inc., a structural engineering company and Conam Inc., a materials inspection company, finding that the corporations were not liable in connection with the ceiling collapse.

"Since taking office two years ago, it has been one of my priorities to resolve all matters related to the Big Dig ceiling collapse in a manner that was fair and just for the commonwealth, and for the loved ones of Milena Del Valle who so tragically lost her life almost three years ago. We believe that we have achieved that goal," said Coakley. "The resolutions we have reached with the various companies involved in the project appropriately hold accountable those responsible for the problems in our tunnels, ensure that similar problems will be prevented in the future, and provide the Commonwealth with the necessary funds to maintain the tunnels and other transportation infrastructure in the years ahead."

Gannett Fleming has also agreed to a Corporate Compliance Program as part of the settlement. The program requires it to provide a Federal Highway Technical Advisory to the owners of all facilities for which Gannett Fleming performed design services since 1990 in which adhesive anchors may have been used. Gannett Fleming must also provide the Technical Advisory to their current and former employees. 

The advisory provides guidance and recommendations on the use and inspection of adhesive anchors, strongly discourages their use in sustained tension or overhead applications, and recommends retrofitting or replacing current systems.

As part of the settlement with Sika, the company affirms that it has ceased all sales and production of the Fast Set epoxy used in the ceiling and complied with the National Transportation Safety Board's requirements to provide warning labels on its products and alert its distributors of the NTSB’s recommended prohibition on the uses of adhesive anchors.    

Since January 2007, the attorney general's office has recovered approximately $610.625 million on behalf of the Commonwealth, the MTA, and MHD. Some of those recoveries reflect settlement agreements entered in conjunction with the U.S. attorney's office.

In addition to already cited settlements, they are:

May 12, 2007: $58.5 million; AIG state settlement (recovery of workers' compensation insurance overcharges.)

July 27, 2007: $50 million; Aggregate Industries federal-state settlement (false claims for adulterated cement). Also include $75 million additional insurance coverage.

Jan. 23, 2008: $458.2 million; Global federal-state settlement with Bechtel/Parsons Brinkerhoff and other contractors for ceiling collapse, wall leaks, various design errors and problems. In addition, B/PB may be liable for up to $100 million for any future catastrophic event.

Nov. 14, 2008: $21 million; Modern Continental Construction Co., settlement for damages.

Nov. 14, 2008: $5 million; Newman Associates Inc. and Renner Colony LLC settlement for damages with a Corporate Compliance Agreement with the company that sold the epoxy glue to Modern Continental.

The attorney general expects to revert approximately $2.1 million back to the MTA as a result of unused monies from the cost recovery fund.
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Lanesborough Town Meeting to Vote Budget, Bylaws & Vehicle Purchases

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — Tuesday's annual town meeting includes a $14 million operating budget, new short-term rentals, accessory dwelling units and sign bylaws, and free cash article appropriations.

Voters will gather at Lanesborough Elementary School on June 9 at 6 p.m. to decide on 20 warrant articles.

The fiscal 2027 budget is up a little over 10 percent. Some of the main increases are the Mount Greylock Regional School District and McCann Technical School: the McCann assessment is up more than 30 percent based on factors including enrollment and the school renovation project, and Mount Greylock's is up 11 percent.

Article 11 is for the town to vote to approve from free cash the sum of $16,298.48 for the McCann Technical School roof and window replacement project so as not to impact the budget. Article 3 is  appropriate $7,586,284 for Mount Greylock Regional School assessment.

Another notable increase was in life and health insurance, showing an increase of about 26 percent.

Ambulance Director Jen Weber is planning 24-hour coverage, which means more staff and a hike in her budget. One of the articles asks the town to appropriate $234,100 to operate the Ambulance Enterprise Fund for salaries and expenses.

Many town departments are looking for new vehicles. The Fire Department is looking to replace its outdated 1996 fire engine. There are two articles related to the truck at a total of $813,366. Article 12 would transfer $225,000 from free cash into the Fire Truck Stabilization Fund; Article 13 would transfer $605,000 from the fund and authorize the borrowing of $208,366.08.

The total includes a $100,000 contingency cost to cover any additional costs if a 2026 model-year chassis cannot be secured before new emissions standards go into effect in 2027.

The board at its last meeting moved the $225,000 transfer to come before the borrowing article, changing the stabilization number. If the $225,000 is not voted on, then they will amend the next article's number on the floor, subtracting the $225,000. This shows the borrowing number significantly lower.

Article 17 asks for the transfer of $80,000 from free cash to replace a police cruiser.

Police Chief Rob Derksen's aim is to replace one vehicle every other year, meaning the oldest vehicle gets replaced about every 10 years. 

He stressed that if delayed this year, the town may have to double up in a future year to get back on schedule, and that paying later usually costs more. The article will ask for $80,000 from free cash, the vehicles used to be funded by the BHRD.

Lastly, the Highway Department is looking to replace a 2014 International dump truck that will be a total of $330,000 and will take two to three years to receive.

Money will be used from last year's approval of $250,000 from free cash for the replacement of a 2012 highway front-end loader that was underspent $49,261. Town meeting is being asked to approve  a transfer of $53,274.85 from free cash and the use of $227,464 from funds from the Sale of Town Real Estate to fund the balance.

Other free cash proposals include $1,200 to purchase software to support tracking and ongoing maintenance schedules of town-owned vehicles; $42,000 for the replacement of the Highway Department's storage shed roof, $200,000 to reduce the tax levy.

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