The Financial Impact of the COVID-19 on Water Utilities

A report prepared for the American Water Works Association (AWWA) and the Association of Metropolitan Water Agencies (AWWA), has estimated the financial impacts of the crisis on drinking water utilities in the U. S. 

Some details included within the report: 

  • Toho Water (FL) is anticipating experiencing a 52% reduction in commercial water usage. A 12.5%, reduction in reclaimed water sales over a six-month period, with a total annual revenue loss of about 9.2 percent
  • Fort Pierce Utilities Authority (FL) has experienced increases in materials and supplies costs for disinfectants, towel wipes, respirators, thermometers, and masks. It also anticipates incurring additional expenses when offices open and employees return.
  • Martin County Utilities has decreased pressures to relieve stress on surficial wells. We are at the peak of Florida’s dry season and are experiencing very dry conditions. This coupled with increased residential water demands drove demands well over 12 MGD (highest demand on record was 14 MGD April 2018).
  • The combined water and wastewater sector impact of COVID-19 is estimated to be more than $27 billion. 

For the full details on this case, view it below…

Public Owners Shifting Risk on Contractors for Future Pandemics

The following was shared by the Florida Surety Association, citing a public owner in the Midwest adding language via addendum that attempts to shift the risk of COVID-19 onto the contractor –

The following language was added just before the bid via an addendum…

“Contractor acknowledges and agrees that it assumes all risk associated with impacts resulting from the Coronavirus (COVID-19) pandemic, that the Contract Sum and the bid submitted by Contractor has factored in the risks associated with impacts from COVID-19, and that impacts resulting from or related to COVID-19, including but not limited to acts of government, acts of public authorities, and any instances that may constitute a force majeure event, shall not be a basis for a Contractor to make a claim for an adjustment to the Contract Sum”

And further:

“impacts resulting from or related to COVID-19 […] shall not be a basis for a Contractor to make a claim for an adjustment to the Contract Sum, and/or to terminate or suspend the Contract except […] for an [sic] no-cost extension of the Contract Time […]”

At JCA, we have resources available to help in the event you come across similar language being included in public bids. Give us a call, let us help….

Senate Approves Additional $484 Billion to PPP

  • $310 billion for the Paycheck Protection Program, including $30 billion to community lenders, small banks and credit unions, and $30 billion to medium-sized banks and credit unions
  • $60 billion for the U.S. Small Business Administration’s Economic Injury Disaster Loan Program, which includes $10 billion in emergency grants for businesses 
  • $75 billion for hospitals and protective equipment 
  • $25 billion for COVID-19 research 

The Senate approved another $484 billion in federal funding for coronavirus relief. 

For more information visit the article from Forbes below. 

U.S Treasury: Construction Firms & PPP

  • Competition for the Paycheck Protection Program has tightened and over 10% of the total available loans have been accounted for since its launch on April 3rd. Many construction contractors are worried they won’t have enough loans to cover all costs. Now new guidance for contractors has been created for loan application. Congress is also realizing that the PP Program may not be enough to stand up against the overwhelming impacts of COVID-19. Secretary Steven Mnuchin is proposing an additional $250 billion dollars to PPP, to supplement the $349 billion that the CARES Act provided for the program. More details below.