March 2019 - Tata & Howard

T&H Joins Impact Tour with Water for People

In the small, landlocked country of Rwanda, situated amid a dense population of nearly 12 million inhabitants, Water for People (WFP) expanded their mission of promoting the development of high-quality drinking water and sanitation services. The ‘Everyone Forever’ model was built out of Water for People’s Rwanda office in Kigali and is a programmatic effort to provide water and sanitation to Everyone in targeted districts, Forever.

To understand the full scope of Water for People’s vision while also supporting their mission, two Tata & Howard employee owners will be heading off to visit Water for People’s Rwanda site as part of their Impact Tour in September of this year.

Impact Tour

Water for People’s Impact Tours were created in efforts to show stakeholders how the organization is strengthening communities and fostering independence within defined geographical areas – that is, by bringing clean water and sanitation to every family, clinic, and school.

Throughout the course of an Impact Tour, participants will visit one of Water for People’s sites for a week to visit country staff, see the work they are doing, and witness firsthand what supporting Water for People truly looks like. Participants will interact directly with community leaders, local staff, government officials and people whose lives have been changed for the better due to the support and work in their area.

There are typically two Impact Tours each year – the first of 2019 will be taking place in Bolivia from April 13-18. The Rwanda Impact Tour that our team members will be participating in will take place from September 7-12.

The Lucky Winner

James Hoyt, Project Manager, was chosen through a company-wide raffle that was put together through our ESOP Committee. This raffle encouraged employees to continue supporting an organization we have been heavily involved with as a company, while also increasing employee engagement.

James is excited and honored for the opportunity to represent T&H for the Rwanda Impact Tour. He looks forward to meeting and interacting with Water for People staff and the local community while learning from their experiences.

“It is meaningful to have the opportunity to bring this experience back to the company and to be an advocate for the positive changes the organization is making,” he said.

Two’s Company

Tata & Howard Co-President, Jenna Rzasa will also be accompanying James on the Rwanda Impact Tour this September. As a donor and supporter of Water for People for the last 15+ years, Jenna saw the Impact Tour as a wonderful opportunity to see the positive benefits that come as a result of providing safe drinking water to the people of Rwanda.

“Not only is WFP important to me, but also to the late Don Tata (co-founder of Tata & Howard), who was passionate about the organization and the winner of the 2018 Kenneth J. Miller Founders’ Award,” said Jenna. “By choosing to attend the trip with the Tata & Howard Raffle Winner, it serves a tribute to Don as well,” she added.

Raffle Entries

To participate in the raffle, Tata & Howard team members were given several opportunities to earn raffle tickets for the Impact Tour trip, including:

Payroll Contribution to Water for People*

*The only requirement for raffle eligibility was a payroll contribution to Water for People. Subsequently, employee owners could then participate in other activities and company events to earn more tickets.

Time at Tata & Howard
Participation in ESOP Month Activities
Donations for the November Food Drive
Gifts for the DARE or Toys for Tots Giving Trees
Donations to the Animal Shelter Drive
Participation in the February ESOP event

A Second Opportunity

Because many of our team members have children, families, and other commitments – we were pleased to offer those unable to travel to Africa with the opportunity to use their raffle tickets elsewhere. Within a second raffle bucket, employee owners could also be eligible to win a $500 gift card to an airline of their choice. Raffle entries were collected in the same way they were for the Impact Tour.

The lucky winner for this prize was T&H Associate, Ryan Neyland.

While Ryan has yet to pick a destination to take advantage of his prize, he is thankful for the opportunity and is thankful to be part of Tata & Howard’s ESOP.

“I value the ESOP knowing that the long-term ownership of the company will remain with its employees, and that we all have a direct impact on the stability and value of our company,” said Ryan.

Special opportunities such as supporting a truly impactful organization are just some of the perks that come with being a part of an ESOP. While the Impact Tour trip to Africa may be a once-in-a-lifetime experience, we are always looking for ways to keep our employees working hard, engaged, and happy about the difference they can make in our company and the world.

ESOP – An Excellent First-Resort

As business owners, there is a lot to consider when mapping out future retirement and succession plans. Between 401(k)s, Individual Retirement Arrangements (IRAs), Employee Stock Ownership Plans (ESOPs) and other similar options, weighing the advantages and disadvantages of each one is critical. While plans such as 401(k)s and IRAs are most common, there is still a large knowledge gap when it comes to ESOPs – and because of this, the ESOP option frequently gets overlooked or viewed as a ‘last-resort.’

With that said, let’s dive into some of the great benefits that ESOPs bring to both employers and employees, and discuss why ESOPs should truly be viewed as a first-resort.

For starters – what is an ESOP?

To keep it simple, companies that launch an ESOP form a trust that purchases some or all of the company’s shares and holds them in retirement accounts for employees. As the stock value increases or decreases over time, so too does the value of the employees’ accounts.

The two main reasons why ESOPs are such beneficial alternatives to the other succession plans out there are as follows:

ESOPs increase employee engagement, thus improving the company’s overall performance
ESOPs offer potentially compelling benefits at the time of sale

Employee Engagement

In terms of employee engagement, studies have shown that employees who participate in an ESOP are more motivated to perform at a higher level than those who do not participate in an ESOP. Research in a study conducted on the effects of ESOP adoption and employee ownership at the University of Pennsylvania showed that individual employee-owners have increased job satisfaction, organizational commitment, motivation and workplace participation. Employee ownership has also been shown to result in increased firm productivity, profitability and longevity. In the largest study on the performance of employee stock ownership plans, Joseph Blasi and Douglas Kruse found that overall, productivity increased by 4% in companies who participate in an ESOP. The National Center for Employee Ownership also found that on average, employee-owners have retirement accounts that are 2.2x larger than those in traditionally owned companies.

Compelling Benefits

The second reason why ESOPs are a great option for business owners is the increased optionality. When the time comes to sell a business, ESOPs give business owners more than one solution to a very complex situation. One example of this can be seen through the decision Dansko, a popular manufacturer of shoes, made to become an employee owned company. When owner Mandy Cabot made the decision to sell her company, she was presented with an offer from Timberland, another massive name in the industry. While the deal offered an attractive price tag and additional benefits like added R&D for Dansko, ultimately Mandy sold her shares to an ESOP. Instead of an outside company running her business, the employee owners who have been ingrained in Dansko’s roots for so long, will continue on with their original commitment to employees, community, and values.

“In any business, employees are the life-blood, they ARE the business,” Mandy said. “Through our employees, Dansko will learn, evolve, and regenerate itself virtually forever.”

Misconceptions of ESOPs

With these benefits laid out on the table, what then gets in the way of owners looking to implement this viable option? Here are some of the major misconceptions surrounding ESOPs:

An owner may not get fair market value by selling to an ESOP – It is true that an ESOP cannot pay MORE than a business’ fair market value – thus, an owner will not be walking away with an offer from the highest bidder. However, the ESOP can pay every dollar of fair market value determined by a market evaluation exercise.
Owners lose operating control of their companies when they create an ESOP – This is also not true. While employee-owners will observe management decisions and strategies to grow the value of the company, ESOP members don’t manage operations.
ESOPs are too complex – Although there are more nuances when it comes to setting up an ESOP, ESOPs are structured under U.S. law as an employee retirement plan. There are many financial advisors out there who are experts on the ins and outs of ESOPs.

In the end, some retirement options may be better suited for certain companies and firms – but at the least, be sure to evaluate the tangible benefits of an ESOP.

Tata & Howard adopted an Employee Stock Ownership Plan in October of 2014 to ensure future success of the company. As a result, Tata & Howard employees own 100% of the company through their ESOP. Since becoming an ESOP company, Tata & Howard still upholds the same core mission and values of teamwork, efficient solutions, client satisfaction, integrity, and positive attitude, originally established more than 27 years ago.

International Women’s Day 2019

Women in Engineering

For the last 108 years, International Women’s Day (IWD) has taken place on March 8 all around the world. IWD is a global day of recognition celebrating the social, political, economic, and cultural achievements of women.
While the personal meaning of this day may vary, the global theme of equality and celebration resonates with a powerful force. From big cities and sprawling country sides, to tiny villages and corporate organizations, women and men alike are showing their support for all the women who make a difference each and every day.

The Women of Tata & Howard

At Tata & Howard, we feel particularly lucky to work alongside such talented and fantastic women. Of the 60 individuals who make up our firm across seven locations, 22 (or 37 percent) are women. On top of that, our two co-presidents are also women. Karen L. Gracey and Jenna W. Rzaza have more than 43 years in combined engineering experience, and go above and beyond to lead our team to its fullest potential. In an industry that has been predominantly dominated by men for the last several centuries, it prides us to see the strides and achievements being made within our company and others like us around the world.

Some of the Tata & Howard women in the Marlborough, MA office.

On International Women’s Day, and every day, we are thankful for the women who make up our team.
Christine Beliveau – Marketing Coordinator
Katie Carreira – Assistant Project Engineer
Justine Carroll, P.E. – Associate
Molly Coughlin – Assistant Project Engineer
Natalia Close – Engineer
Meghan Davis – Project Engineer
Karen Gracey, P.E. – Co-President
Chelsea Henderson – Engineer
Meagan Heslin, P.E. – Project Engineer
Eyleen Izaguirre – Engineer
Patricia Kelliher – Project Engineer
Jessica Kemp – Marketing Communications Manager
Kasey Kenyon – Engineer
Melissa Leach, P.E. – Senior Project Engineer
Maria Maynard – Manager of Human Resources
Jenna O’Connell – Engineer
Carmen Perkins – Staff Accountant
Jenna Rzasa, P.E, – Co-President
Allison Shivers, P.E. – Project Engineer
Jan Stone – Administrative Assistant
Kaitlin Tallman – Engineer
Mary Vermes – Staff Accountant

A few of the Tata & Howard men showing their support for their colleagues on International Women’s Day in the Marlborough, MA office.

Today we celebrated with our usual ‘Friday treats’ and acknowledged all of the great work our female engineers and staff members do throughout the year.

PFAS to be Classified as Hazardous Substances Under New Bipartisan Senate Bill

The PFAS Action Act

A bipartisan senate bill was introduced on March 1 to mandate the Environmental Protection Agency (EPA) classify Per- and Polyfluoroalkyl Substances (PFAS) as hazardous substances eligible for cleanup under the Superfund toxics law, a massive step in efforts to eliminate widespread contamination by these compounds across the country. Under the PFAS Action Act of 2019, legislation would require responsible parties to report the excess release of PFAS into the environment and allow the government to sue polluters to recover the costs of cleanup.

Scott Faber, Senior Vice President of Government Affairs at the Environmental Working Group (EWG) said that “this proposal could assist potentially hundreds of communities throughout the country struggling with PFAS contamination by securing the resources required to begin the cleanup process and holding polluters accountable.”

What are PFAS?

PFAS are manmade chemicals that have been used in both industry and consumer products since the 1950s. The most common products that PFAS are used in include:

Non-stick cookware
Products that resist grease, water and oil
Water-repellant clothing
Stain resistant fabrics
Firefighting foams
Some cosmetics

Exposure to PFAS can happen through a variety of ways including:

Drinking contaminated municipal water or private well water
Eating fish caught from a source that was contaminated with PFAS
Swallowing contaminated soil or dust
Eating food that was packaged in material containing PFAS
Using consumer products including the ones listed above

As PFAS are produced and used, they can migrate into soil and water inducing hugely detrimental effects on the environment, people, and animals. While scientists are still learning about the health effects to exposure of PFAS, some studies show that PFAS exposure may affect:

Growth
Learning
Behavior of infants and children
The ability to get pregnant
Natural hormones in the body
Cholesterol levels
Immune system
Risk of cancer

Why is the PFAS Action Act of 2019 Necessary?

Tests performed by the EPA have detected PFAS pollution of public water supplies for 16 million Americans in 33 states, a statistic that is considered a severe underestimate of the scope of the problem. EWG and researchers at Boston’s Northeastern University have tracked 172 PFAS contamination sites in 40 states – a number that does not include public water systems with PFAS contamination. In May 2018, EWG released a data analysis that estimated more than 1,500 drinking water systems, serving up to 110 million Americans, may be contaminated with similar fluorinated chemicals.

The map below from EWG and SSEHRI at Northeastern University shows contamination sites and EPA tap water detections. Click here to view an interactive version of this map. The blue circles show where PFAS chemicals were detected between 2013 and 2016 in public drinking water systems, and the red circles show sites in Northeastern’s PFAS Contamination Site Tracker.

Should this bill be enacted into law, these 1,500 contaminated drinking water systems across the country would soon be cleaned up as part both short-term and long-term actions included in the Action Plan, potentially resulting in clean water supplies and safe drinking water.

PFAS Action Act – Action Items

The EPA is leading the national effort to understand PFAS and reduce risks to the public through implementation of this Action Plan and through active engagement and partnership with other federal agencies, states, tribes, industry groups, associations, local communities, and the public.

Key actions to PFAS related challenges include:

Expanding toxicity information for PFAS
Developing new tools to characterize PFAS in the environment
Evaluating cleanup approaches
Developing guidance to facilitate the cleanup of contaminated groundwater
Using enforcement tools to address PFAS exposure in the environment
Using legal tools such as those in the Toxic Substances Control Act (TSCA) to prevent future PFAS contamination
Addressing PFAS in drinking water using regulatory and other tools
Developing new tools and materials to communicate about PFAS

(See all priority actions, short-term actions, and long-term actions here.)

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2shaheen.senate.gov

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Month: March 2019