BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey has announced CDM Smith Inc. (CDM) will pay $5.5 million after allegations it failed in its obligations to properly oversee construction of Plum Island’s water and sewer systems.
“This company failed to take the necessary steps to make certain that this project was built in accordance with its own technical specifications,” Healey said. “We are pleased that we could come to an agreement that provides Newburyport with the resources needed to undertake needed repairs and ensure the integrity of Plum Island’s critical infrastructure.”
CDM was hired to construct the systems on Plum Island that are maintained by the city of Newburyport. The funds for the hire came from loans made through the Massachusetts Department of Environmental Protection’s (MassDEP) Clean Water State Revolving Fund and Drinking Water State Revolving Fund.
“I’m grateful to the attorney general for all of her office’s work on this and for helping us reach an agreement that will provide our city with the resources necessary to repair this system,” said Newburyport Mayor Donna Holaday.
The $5.5 million settlement includes $5.3 million earmarked for the city of Newburyport. The money will go into a trust fund earmarked for repairing, modifying and optimizing Plum Island’s water and sewer systems.