Nicholls v. Veolia Water Contract Operations USA, Inc.

Massachusetts Supreme Judicial Court·Decided July 13, 2026·No. SJC 13804·Published

Opinion

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SJC-13804

JEREMIAH NICHOLLS & others1 vs. VEOLIA WATER CONTRACT OPERATIONS USA, INC.2

Suffolk. March 4, 2026. - July 13, 2026.

Present: Budd, C.J., Gaziano, Kafker, Wendlandt, Georges, Dewar, & Wolohojian, JJ.

Labor, Wages, Public works. Public Works, Wage determination.

Statute, Construction. Words, "Improvements."

Certification of questions of law to the Supreme Judicial Court by the United States Court of Appeals for the First Circuit.

Terence E. Coles for the plaintiffs.

Barry J. Miller (Adrienne C. Lee also present) for the defendant.

David B. Wilson & Charlotte M. Petilla, for Springfield water and sewer commission, amicus curiae, submitted a brief.

WENDLANDT, J. In this case, we answer the following certified questions regarding St. 1997, c. 155 (special act),

1 Walter Goodrow, Wesley Dinsmore, and Richard Ruppert.

2 Formerly known as Suez Water Environmental Services, Inc.

and the Prevailing Wage Act, G. L. c. 149, §§ 26-27H (PWA):3

"1. What is meant by the phrase 'construction and design of improvements' as used in [§] 6 of [the special act]?

"2. Is [the special act] incompatible with the [PWA] under the court's decision in Metcalf v. BSC Group, Inc., [492 Mass. 676 (2023)]?"

In response to the first question, we conclude, with reference to the parties' arguments before this court, that the phrase "construction and design of improvements" in § 6 of the special act is not synonymous with "construction" as defined in the PWA, G. L. c. 149, § 27D; moreover, the phrase does not encompass ordinary repairs, routine inspections, day-to-day operations and maintenance, or ordinary replacements.

Regarding the second question, we answer "no." In Metcalf, we addressed professional services contracts untethered to any particular public works project and governed by G. L. c. 7C, § 58. The special act concerns the Springfield water and sewer commission's wastewater treatment facility, sewers, and pump

3 A panel of the United States Court of Appeals for the First Circuit (certifying court) certified the questions pursuant to S.J.C. Rule 1:03, as appearing in 382 Mass. 700 (1981), which provides in relevant part:

"This court may answer questions of law certified to it by . . . a Court of Appeals of the United States . . . when requested by the certifying court if there are involved in any proceeding before it questions of law of this State which may be determinative of the cause then pending in the certifying court and as to which it appears to the certifying court there is no controlling precedent in the decisions of this court."

stations; unlike G. L. c. 7C, § 58, the special act expressly provides that certain work -- namely, work that falls within "construction and design of improvements" -- is governed by the PWA. The decision in Metcalf does not control the provisions of the special act or its compatibility or incompatibility with the PWA.4 1. Background. a. Statutory framework. Because the certified questions require us to consider the special act, we begin by briefly reviewing its history and relevant provisions.

In 1996, the city of Springfield (city) formed the Springfield water and sewer commission (commission) to oversee and to maintain drinking and wastewater systems; the commission owns and operates the city's regional wastewater treatment facility and associated sewage collection, pumping, and interceptor systems.5 See G. L. c. 40N, § 4 (water and sewer

We acknowledge the amicus brief submitted by the 4

Springfield water and sewer commission.

The city elected to form the commission pursuant to G. L.

5

c. 40N, which permits local governments to establish municipal water and sewer commissions with enumerated powers. See G. L. c. 40N, § 4 (discussing creation of water and sewer commissions and membership processes); G. L. c. 40N, §§ 8, 9 (discussing powers and limitations of water and sewer commissions). The commission has authority to set fees and rates for water and sewage services, to regulate water sources, and to protect and improve water and sewage systems for the city and surrounding communities. G. L. c. 40N, § 9 (a) (authorizing and empowering commissions to "fix, revise, charge, collect and abate fees, rates, rents, assessments, delinquency charges and other charges for water, sewer and other services"); G. L. c. 40N, § 8 (i)

commissions are independent public instrumentalities), § 6 (commissions shall "own, control, operate and maintain the water works system and the sewer works system").

That same year, following the lead of other communities in the Commonwealth, the commission decided to privatize its wastewater operations; it sought to enter into a long-term contractual relationship with a qualified entity to upgrade its main wastewater treatment facility and associated systems and thereafter to manage the operation and maintenance of wastewater services for the commission. With assistance from the office of the Inspector General, which had expressed concerns regarding other communities' privatization efforts, the commission sought special act legislation6 exempting it from many of the laws applicable to the procurement and awarding of public contracts.

In 1997, the Legislature passed the special act, which permits the commission to outsource the operation of its wastewater facilities and exempts it from compliance with some

(granting water and sewer commissions power to "construct, improve, extend, enlarge, maintain and repair the water works system and the sewer works system").

6 Special acts are "legislation addressed to a particular situation . . . that [do] not establish a rule of future conduct with any substantial degree of generality, and [which] may provide ad hoc benefits of some kind for an individual or a number of them" (citation omitted). Pearson v. Sheriff of Bristol County, 489 Mass. 691, 694 n.9 (2022). These acts are not codified in the General Laws but have the "same force and effect as a General Law" (citation omitted). Id.

generally applicable public works statutes. See St. 1997, c. 155. The special act authorizes the commission to enter into contracts

"for the sale or lease, operation and maintenance, financing, design and construction of modifications and installation of new equipment and systems necessary at the wastewater treatment facility, sewers and pump stations to ensure adequate services and to ensure the ability of said commission's wastewater treatment facility, sewers and pump stations to operate in full compliance with all applicable requirements of federal, state and local law."

St. 1997, c. 155, § 1. Such contracts "shall not be subject to the competitive bid requirements" in G. L. c. 30, § 39M, or G. L. c. 149, §§ 44A to 44J.7 Id.

Contracts entered into pursuant to the special act may provide for terms of up to twenty years, with an option for renewal or extension of operations and maintenance services for one additional term of up to five years. St. 1997, c. 155, § 2. Contracts may provide for, inter alia, "equipment installation and replacement, performance testing and operation, studies, design and engineering work, construction work, [and] ordinary repairs and maintenance . . . required for the wastewater treatment facility, sewers and pumping stations and the management, operation, maintenance and repair" of the same. Id.

The special act provides detailed procedures for the

7 Additional statutes from which the commission is exempt pursuant to St. 1997, c. 155, § 1, have been repealed. See G. L. c. 7, §§ 38A1/2-38O, repealed by St. 2012, c. 165, § 66.

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