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
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
“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.