Arkansas HVACR NewsMagazine September 2020

Published by Arkansas HVACR Association

News Magazine September 2020

Arkansas’ First and Only HVACRNewsMagazine 9 Articles Related to the Coronavirus Pg 11, 30

No Stranger Time

We Shall Prevail . No Stranger Time pg 3 Unintended Consequences pg 8 Unemployment brings pay increase Are Forgiven Loans Taxable pg 11 ADH Mandates Quarantine pg 14 After Exposure

SBA Issues Guidance pg21 ACCA Pushes for Loan Relief pg 23 Contractor Liability Protection pg 25 TVA Aids Business Installing pg 25 Ultraviolet Lights Transitioning to Normalcy pg 26

Every Article Aimed at Your Success

Understanding Foam Houses

Minimum Wage Increase

pg 39

pg 18

5% vs 15 % Silver Solder pg 42 Code Bulletin - Pipe Enclosures pg 43

Unico

pg 28

Kirk’s Corner

pg 31

pg 49

By Arkansans

For Arkansans

Table of Contents

Feature story

PG 3

Chapter Meeting Schedule

PG 6

Editorial & Opinion Unintended Consequences (Unemployment gives pay increase)

pg 8

Business

PG 11

Are Forgiven PPP Loans Taxable?

State, national, chapter news ADH Mandates 14 Day Quarantine After Exposure

PG 14

PG 18

Minimum Wage Increase

PG 21

SBA Issues Additional Guidance on PPP Loan Forgiveness ACCA Pushes Congress for Loan Relief for HVACR Small Businesses

PG 23

PG 25

Contractor Liability Protection

PG 25

Tennessee Valley Aides Businesses Installing Ultraviolet Lights Transition to Normalcy (Repeated from May. Still important)

PG 26

PG 28

Unico — Worth a Second Look

PG 31

Kirk’s Corner

Education News Training Programs

PG 33

Rebate Programs & Incentives

PG 37

Tech News

PG 39

Complete Story – Understanding Foam Houses by Tom Turner

PG 42

5% vs 15 % Silver Solder (Brazing Rod) Bryan Orr

PG 43

Code Bulletin - Pipe Enclosures

Unique Arkansas Featuring Arkansas Culture

PG 49

Nana ’ s Lemon Pie

S tate, National, Chapter News Feature Story

No Stranger Time

Born out of Hiroshima and Nagasaki, Japan and the aftermath of the only two nuclear attacks in history, GODZILLA broke into film in 1954 from the mind of Tomoyuki Tanaka. Godzilla was to be nature ’ s revenge on mankind and was the metaphor for the “ bomb ” . In 36 movies, Godzilla has been revenger, villain, and sympathetic antihero. His emergence also created opportunities for heroes and heroines and equally evil antagonists. Now we have from the east, this time China, the Coronavirus coming out of the Wuhun province. The result of bats in an open market or perhaps carelessness in a bio lab, it has taken an unbelievable tole of 22,698,506 cases, 793,291 deaths worldwide. Unlike Godzilla, the Corona Virus is real and has changed our lives. As of August 19 th , Arkansas had 53,430 cases and 631 deaths. That number grows each day. I lost my dearest friend of over 40 years in a nursing home. I could not sit with him or hold his hand to provide comfort and support. The nurses did all they could to comfort him as he passed away. I am grateful to them. This virus is something that I never thought would happen in America. We are suppose to be immune from pandemics and the

destructive chaos of third world countries. We are America. Like Godzilla spewing fire from his mouth, consuming everything in its path, the Corona Virus, has consumed our families and friends and even more so, our way of life. We wear masks, are fearful to touch another or shake hands and some grandparents greet their grandchildren through the glass door.

HOWEVER, THIS TOO SHALL PASS

In the same way that Godzilla was driven back into the sea, the Corona Virus shall be eradicated from America.

S tate, National, Chapter News Feature Story

I do not know when but am as sure of this fact as I am that the sun is gonna ’ shine in the morning. Fortunately, many in our business have done very well this summer. The HVACR industry is an “ ESSENTIAL ” service to Arkansans. You can ’ t just shut it down. The more people are at home, the more they need air conditioning. Unlike a liquor store, it is a comfort as well as a life and death situation. Take the air conditioning out of hospitals, the refrigeration out of food processing, the comfort ac away from homes and businesses and what do you have? You have death, sickness, discontent, and discomfort on an unprecedented scale. Our industry has not gone into seclusion, cocooning ourselves in the basements of our homes. Our industry has gone into homes, businesses, hospitals, food processing, and factories to keep them operating. We have worn masks and adopted measures to ensure that customers as well as techs are safe. It sounds corny but our industry has done what was necessary while some politicians have shamefully disparaged others for political gain. The HVACR industry has put themselves at risk to provide the much needed service of air conditioning and refrigeration. They are the first responders to a bad compressor, a burned out contactor, or a shorted fan motor. We salute them for their selfless service to every homeowner, business, hospital, industry and food processor that needs service--- now, at midnight and on weekends. In attics and crawlspaces, on their back between the deep fryer and grill, stretching to reach the back of a ice

machine, under pressure to get the cooling system of medical equipment working, on tops of offices and warehouses suffering 120+ degrees of heat, repairing chillers and cooling towers--it is the HVACR professional that has kept this state and country going during this pandemic. There are many other trades that have similarly sacrificed so Americans can have some degree of normalcy. It is the trades, like the unsung heroes that drove Godzilla back into the depths, that have put themselves on the front line. As normalcy returns on the movie screen, our lives will also return to normalcy. It will not stay this way forever. When it does, I look forward to shaking hands, laughing over a meal, and sitting by a fellow HVACR professional in a class. This has been the strangest summer any of us have ever experienced and we hope it will never happen again.

chapter meetings

Central Chapter 4 th Tuesday 6:00 Meal : 6:30 Program Location: Whole Hog 2516 Cantrell Road Little Rock, AR 72202

October 27 November 24 February 23 March 23 April 27

September 1 October 6 November 3 December 1 January 5 February 2 March 2

Fort Smith Chapter 1 st Tuesday

5:30 Meal : 6:00 Program Location : Western Sizzlin 5200 Towson Avenue Fort Smith

April 6 May 4

Hot Springs Chapter 2 nd Tuesday 6:00 Meal : 6:30 Program Location: Smokin’ in Style BBQ 2278 Albert Pike Hot Springs North Central Chapter 4 th Thursday 6:00 Meal : 6:30 Program Location : Western Sizzlin ’ 905 Hwy 62 – 65 North Harrison

October 13 November 10 February 9

March 9 April 13

September 24 October 22 February 25 March 25 April 22

chapter meetings

North East Chapter 3 rd Tuesday

October 20 November 17 February 16 March 16 April 20

6:00 Meal : 6:30 Program Location : Western Sizzlin ’ 2405 East Highland Jonesboro 870/ 336 - 4417

North West Chapter 2 nd Thursday

October 8 November 12 February 11 March 11 April 8

6:00 Meal : 6:30 Program Location: Golden Corral 2605 Pleasant Crossing Drive Rogers 479/986-9201 South Central/ Camden 1 st Thursday 6:00 Meal : 6:30 Program Location: Ouachita Partners for Economic Development 625 Adams Avenue Camden 870/ 836 - 9354

October 1 November 5 February 4 March 4 April 1

South West / Texarkana 3 rd Thursday

October 15 November 17 February 18 March 18 April 15 Call for meeting Location

6:00 Meal : 6:30 Program Location: Rotates between restaurants. Call for a meeting location. 501/487-8655

Everyone has benefited from this $2 trillion package but it has some unintended consequences which should have been easily anticipated. The additional $600 per week on top of any state-provided unemployment benefits. That very generous “ Add On ” put a significant portion of unemployed making more than they made working. Thus, some businesses are having problems getting folks back to work--- can you blame the employee? If my information is correct, Arkansas regular unemployment benefits are 1/26 th of the base quarter. Won ’ t go into determining the base quarter. We ’ ll just focus on assumed based quarters where a person was making $10, $11, $12, $13, $14, and $15 per hour. Employed Income Reg Benefit CARES Add On Total Hrly Wkly $10 $400 $198 $600 $798 $11 $440 $218 $600 $818 $12 $480 $238 $600 $838 $13 $520 $258 $600 $858 $14 $560 $277 $600 $877 $15 $600 $297 $600 $897 The question is, would you go back to work as long as you were making this kind of money? Probably not; but, the CARES money stopped July 31. Time to find a job. Not so fast. With all the political pressure and legitimate need of Americans still suffering from COVID 19 related unemployment, the feds and the state have moved to extend the “ Add On ” . Governor Hutchinson announced his intent to continue the “ Add On ” at a

Unintended Consequences

Well Intentioned but STUPID. With shoot from the hip legislation that was rushed to help American workers and Businesses reeling from the Corona Virus, the CARES act passed on March 27, 2020. The Coronavirus Aid, Relief, and Economic Security Act, was a $2 trillion stimulus package providing direct cash transfers and expanded unemployment benefits. Highlights included the following: a) cash payments of up to $1,200 (plus $500 for each child age 16 or under) for each qualifying adult b) an additional $600 per week on top of any state-provided unemployment benefits through July 31 c) up to 13 weeks of unemployment benefits in addition to what your state provides, up to 39 weeks; and d) unemployment benefits for self- employed and gig workers Unemployment insurance was and is designed to keep food on the table while a person looks for a job after being laid off through no fault of their own. In the case of the CARES Act, if you've been laid off or seen your hours reduced due to COVID-19, you may be eligible for unemployment benefits. In addition, you may qualify if you can't work because you've been told to quarantine or self-isolate, you're caring for a family member with COVID-19, or you're looking after a child whose school has closed.

$300 per week level through the end of the year. Now lets look at that result. Employed Income Reg Benefit CARES Add On Total Hrly Wkly $10 $400 $198 $300 $498 $11 $440 $218 $300 $518 $12 $480 $238 $300 $538 $13 $520 $258 $300 $558 $14 $560 $277 $300 $577 $15 $600 $297 $300 $597 Even at the reduced “ Add On ” level, a person making $10/hrly before the Coronavirus is making the equivalent of $12 per hour with the regular unemployment and the CARES money. So the question is, “ Would you take a $2.00/hr. cut in income so you could go back to work? Or if you were at $15 pre- Coronavirus, would you go back to work so you can make an extra $3 per week? Our country has run up close to $3.1 trillion in debt in since March and the Democrats want another $4 trillion while the Republicans only want another $1 trillion. Can ’ t believe I just said, “ Only ” . I am grateful that our country was financially able to create that first round of debt to help Americans out of work. Without that money, we would have had soup lines greater than those of the Great Depression. As we move forward, we have to be careful, equally helpful but less political. Is it right and can we afford to pay someone more on unemployment than they made employed. Can we expect the unemployed to return to work when

their family enjoys a better life style when Mom and Dad are unemployed? The national debt has broken through the wildest nightmarish expectations. Beginning February 2020, the debt was 23.4 Trillion. At the end of July, it hit 26.5 — a 3.1 Trillion increase.

Trillion $ National Debt

26.4 26.5

25.7

24.9

23.4 23.6

FEB MARCH APRIL MAY

JUNE JULY

Want to see something scary? Click on the link to the real time National Debt Clock. https://www.usdebtclock.org/ My point in this is, (1) thank goodness our country was able to help millions without work and (2) is it right and can we afford to pay more in unemployment than a person makes working? All this will come to an end someday and when it does, what will be the unintended long term consequences of having paid an overly generous “ Add On ” to unemployment. I know that some think this question is heartless. We all have heard politicians rail against those that ask these questions. But do they really care about the unemployed or are they trying to buy votes. How much more debt shall we put on our children and grandchildren to appear generous or to buy votes today.

Business

consult with a tax expert to make a decision about how this will apply to your business. Although you won’t need to in clude the forgiveness amount in your gross income for federal income tax purposes, the current guidance is unclear as to whether or not you will need to include the forgiveness amount in your business’ gross income for state and local tax purposes. You should be aware though, that those expenses covered with PPP financing that would normally be tax deductible, like wages and the forgiven debt, will not be tax deductible. The Hill recently reported : “The IRS said in its guidance Thursday that expenses that result in forgiveness of a PPP loan are not tax deductible in order to prevent a “double tax benefit,” and continued, “The agency cited Section 256 of the tax code, which states that deductions can’t be taken if they are tied to a certain class of tax-exempt income. If desired, Congress could override the IRS’s stance by passing a law that explicitly allows the deductions.” In other words you won’t be able to get forgiveness of your PPP loan and take the tax deductions associated with the covered expenses. This is another areas where we encourage you to seek the advice of your accountant, CPA, or tax attorney.

Are Forgiven PPP Loans Taxable? Article provided by Nav,

fintech company that uses real business data to quickly match small businesses with

the financing options. 200, Draper, UT 84020 (855) 226-8388

by Ty Kiisel

Are forgiven PPP loans taxable? The short answer may be, “No,” but the complete answer could be, “Maybe.” It depends on whether we’re talking about federal taxes or state taxes. I’m not an accountant and you should not take my comments here to be either tax advice or legal advice, but merely an effort to help inform the questions I advise you to speak with your accountant, CPA, or tax attorney about. According to the text of the CARES Act 1106(i): “Taxability.— For purposes of the Internal Revenue Code of 1986, any amount which (but for this subsection) would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income. ” In other words, it appears that forgiven PPP loans, at least as far as the IRS and your federal taxes are concerned, will not be taxed because they won’t be considered gross income. That b eing said, I’m not a tax expert and this is merely my understanding from reading the CARES Act and looking a little deeper. I suggest you

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ADH Mandates a 14-day Quarantine After Exposure Isolation is Mandatory Regardless of Negative Test Information furnished by law firm of Friday, Eldredge & Clark by Katherine C. Campbell and Michael S Moore and the CDC https://www.healthy.arkansas.gov/programs- services/topics/covid-19-guidance-for- employers According to the August 6 News Alert from the law firm of Friday, Eldredge & Clark, the Arkansas Department of Health (ADH) announced that it will require a 14 day home quarantine for anyone who has been exposed to COVID-19. So what does exposed mean? • Being within 6 ’ of a COVID patient • & More than 15 minutes • Irrespective of a mask being worn • Even if your test is negative How to determine if the “patient” was infectious when you were around them? • They receive a positive test or have symptoms • 48 hours before symptoms began • 48 hours before the positive test was collected

Click here to view announcement.

During the self-quarantine period, the person is expected to stay home during the entire 14-day period and not leave for any reason, except to seek any needed medical care. If the exposed person does not develop symptoms of COVID-19 prior to the end of the self- quarantine period, they will be free to resume normal activities, including school or work. They will also receive a letter stating they have completed the home quarantine period. This new guidance is important because it requires a 14-day quarantine for anyone in close contact regardless of whether the exposed person receives a negative test result after such exposure .

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This ADH guidance is in line with the CDC’s recent guidelines. The CDC recently announced that a test- based strategy is no longer recommended to determine when to return employees to work. The CDC now recommends using a symptom- based strategy. It’s a bit confusing so let’s create a Jerry & Jennie scenario.

On Wednesday, Jennie develops COVID-19 symptoms.

On Thursday, she is tested positive.

The ADH states that anyone (1.) within 6 feet of Jennie for (2.) 15 minutes (3.) within 48 hours of onset of her symptoms or positive test must SELF- QUARANTINE.

On Tuesday, Jerry & Jennie have a conversation and they are less than 6 feet apart

Jerry says, “I wore a mask.” Sorry, Jerry.

• This new guidance requires a self- quarantine even if Jerry wore a mask. • It also requires the self-quarantine even if Jerry took a test and tested negative. • This self-quarantine applies to anyone who was within 6 feet of Jennie for 15 minutes beginning Monday (48 hours before she showed symptoms or was tested positive. Jerry must self-quarantine for 14 days; however, if he may return to normal activities if-- (i) at least 10 day have passed since symptom onset; (ii) at least 24 hours have passed since resolution of fever without the use of fever-reducing medications; and (iii) other symptoms have improved.

Less than 6 feet

The conversation lasts 15 minutes

Don’t use hand-held phones while driving a CMV.

It’s the law. A CMV can be as small as a 3/4 T Truck and a Tandum Axle Trailer

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http://www.edssupply.com/arkansas

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in an employer declared workweek. A declared work week is the seven consecutive days that an employer bases employee on. An example is Sunday through Saturday or Saturday through Friday etc.

MINIMUM WAGE INCREASES

There are some exemptions, (Subminimum wage).

Beginning January 1, 2021, the Arkansas State minimum wage increases to $11.00 / hour. As you may recall in 2018, Ballot Issue 5, the Minimum Wage Increase Initiative, was approved. Minimum wage at the time, $8.50, increased incrementally to $11 beginning in 2021. At the time, there was lots of talk about taking it to $15 / hour but that was not included in the Initiative. According to Lindsay Moore, Section Manager of the Arkansas Department of Labor and Licensing which administers the Arkansas Minimum Wage Act, Arkansas employers are governed by the AMWA and the Fair Labor Standards Act administered by the US Department of Labor, USDOL. Both laws have similarities but some differences as well. The most notable difference is the minimum wage. Federal law is set at 7.25 and the state is $11 beginning 2021. Since the strictest rule applies, the AMWA minimum wage applies to all Arkansas employers. Overtime is required to be paid when a nonexempt employee exceeds 40 hours

• If the employer has less than 4 employees 1 • Apprentices, Learners, Student Learners can be paid 85% of the minimum wage as long as the student and employer are participating in a Department of Labor certified program. AR Code 11-4- 215; AR Wage and Hour Regs 010.14-104(A) 2 • Arkansas law allows employers to pay student workers a wage that is not less than 85% of the standard minimum wage rate if: o the employer obtains a certificate from the Arkansas Department of Labor to do so; o the full-time student attends an accredited institution of education in Arkansas or a border town of a sister state; o the full-time student works not more than (20) hours per week while school is in session or (40) hours per week when school is not in session; o the full-time student qualifies for employment under any child labor laws. AR Code 11-4-210(b); AR Wage and Hour Regs 010.14-103 2 Arkansas law allows employers to pay employees with disabilities a •

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wage that is lower than the standard minimum wage rate if the employer obtains a temporary special exemption license or a permit from the US Department of Labor or the Arkansas Department of Labor. AR Code 11-4-214; AR Wage and Hour Regs 010.14-105 2 (1) https://www.govdocs.com/arkansas-voters- pass-new-minimum-wage-increase/ (2) https://www.employmentlawhandbook.co m/wage-and-hour-laws/state-wage-and-hour- laws/arkansas/minimum-wage/#6

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for an 8-week covered period or 2.5 months’ worth (2.5/12) of 2019 net profit (up to $20,833) for a 24-week covered period. This limit excludes any sick leave or family leave taken under the Families First Coronavirus Response Act (FFCRA); 3. Interest payments on mortgages in place before February 15, 2020, this is calculated in the same manner as the payments are deductible on Form 1040 Schedule C (business mortgage payments); 4. Rent payments on lease agreements in place before February 15, 2020, this is calculated in the same manner as the payments are deductible on Form 1040 Schedule C (business rent payments); and 5. Utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments). In addition, SBA issued a worksheet that is meant to simplify the forgiveness application process. It is available for use by PPP participants who: • Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; or • Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%. Article furnished by Air Conditioning Contractors of America Are self-employed individuals and have no employees; or

SBA Issues Additional Guidance on PPP Forgiveness

Following the passage of the PPP Flexibility Act, the Small Business Administration (SBA) issued rules on loan forgiveness which provide clarity on the treatment of payroll expenses, and how much of the funds can be spent on non-payroll expenses. Namely, the threshold for forgiveness has been reduced from 75% of funds being spent on payroll expenses to 60%. Moreover, participants who took out loans prior to June 5th may choose to use either the 8-week period or the 24 week period. The rule also clarifies that PPP funds are eligible for forgiveness if they are spent on the following: 1. Payroll costs including salary, wages, and tips, up to $100,000 of annualized per employee (for 24 weeks, a maximum of $46,154 per individual, or for 8- weeks, a maximum of $15,385 per individual) as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums); 2. Owner compensation replacement is calculated based on 2019 net profit with forgiveness limited to 8- weeks’ worth (8/52) of 2019 net profit (up to $15,385)

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Small Business Forgiveness Act. This important bipartisan legislation would completely forgive all PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. This would allow many ACCA members to focus their time and energy on their essential businesses instead of burdensome paperwork, while putting real money back into their pockets at the same time. We know the work ACCA members do is essential and extremely important to our way of life in this country (a point that was made clear to Congress in our letter). This is why we will continue to advocate for policies that support essential small businesses in the HVACR contracting industry. It is our way of saying thank you to all of our members who have been working tirelessly to keep our nation’s vital infrastructure viable since the onset of the pandemic. You may have seen our action alert on this legislation. If you haven’t already, please take a minute to participate and let your representatives in Congress know that you support PPP loan forgiveness for small businesses by clicking here. You can read ACCA’s letter to Congress here: ACCA_Letter_H_R__7777_and_S__41 17_PPP_Small_Business_Forgiveness_.pdf

ACCA Pushes Congress for PPP Loan Relief for Essential HVACR Small Businesses It was promoted to be simple. At least that was the way I read all the SBA information back in April on the PPP. Even the application became complicated and I think banks played a role in that as well. Regardless, many of in our industry applied for and received PPP loan assistance. As the essential business designation and the PPP, most of our members have had a very busy summer. Should also note that folks staying home increased the demand for comfort and unit replacement. Having said that, we are now at the point of loan forgiveness or repayment. The time is not short but waiting until the end could result in needless delays and frustration. ACCA is lobbying congress to reduce the complications of the loan forgiveness. It’s not that a good accountant can’t do the paperwork. It’s that it will create expense and distraction to what we do which is design and fix systems, manage employees, and comply with regulations. To the end of simplification, we have included information from ACCA on how you can support legislation that will reduce the burden on small businesses. We encourage you to read their message and follow their simply process of letting your congressman know how you feel. Today ACCA wrote Congressional leadership in support of S. 4117 and H.R. 7777, the Paycheck Protection Program

Your involvement makes a difference. ACT TODAY

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Tennessee Valley Authority Aids Businesses Installing Ultraviolet Light According to the Chattanooga Times Free Press, the Tennessee Valley Authority is offering financial aid for schools, restaurants, nursing homes and other buildings with public places to install ultraviolet germicidal irradiation lights in air ducts to minimize the spread of airborne microorganisms such as COVID-19. The idea has been in the planning stages but TVA decided in June to expedite the roll-out to aid in the battle against the coronavirus. TVA is offering standard incentives at $30 per ton for duct-mounted UVGI systems. Installing systems is not cheap but at least it is a recognition that UVGI can play an effective roll in reducing the incidence and spread of viruses. According to the Times Free Press, Ultra-violet light has proven to kill viruses for more than a century. In 1941 when measles swept through schools around Philadelphia, ultraviolet fixtures were installed at the Germantown Friends School and about 15% of children who had not previously contracted the disease became sick. In the upper-grade classrooms in the same city where ultraviolet fixtures were not installed, more than half of the susceptible students contracted measles. TVA allocated $500,000 through September for the project. Full Article Link

Protect Your Business

Contractor Liability Protection Under S. 4317 SAFE TO WORK Act The Air Conditioning Contractors of America is asking the HVACR industry to send their Senators a letter of support for the SAFE TO WORK Act. COVID-19 related lawsuits are beginning to mount across the country and the act offers liability protection to essential workers and small businesses. This legislation would provide much needed legal cover from potentially crippling COVID-19 related legal costs and judgments. HVAC industry workers are “essential workers” who have labored tirelessly since the onset of the pandemic to keep our country’s critic al infrastructure afloat. They deserve to work without the constant threat of legal action over their head for simply doing their job. Please take action today to help ensure liability protection for HVACR contractors, small businesses, and essential workers across the country. Just click on the link to access the prepared letter to your Senator. It is simple and will only take a couple of minutes.

Link to Express Your Support of the SAFE TO WORK Act

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business. Remember, if you don’t take it seriously, your competitor will Third, Opportunity! This is the greatest opportunity that you have had in the life of your business to present your company as being the visible professional. Wearing a mask and practicing health and safety measures is visible. It’s like wearing a sign that says, we care about you, we are the professionals, you are safe with us. If you dismiss this opportunity because you don’t want to take it seriously, you will miss out on leapfrogging your competitors. To make this work for you — 1. Send an email or letter to all your customers. Explain what you are doing to protect them and your techs. 2. Place an ad in the local paper and on the radio. Again explain what you are dong to protect them and your techs. Make it human. Sign your name and use your voice. 3. Offer an article to the local paper explaining what your company and the industry is doing to protect customers. Emphasize that heating and air conditioning is an essential business — that health and safety has been, is presently, and will continue to be a foundational principle of your business. 4. Have the tech give your customer a flyer that explains what they are doing to protect their health and safety. A sample flyer follows this page. You can access it as a Word document on the Association webpage. Download the document, add your logo, insert your company where indicated, and add your contact information at the bottom. Let this be like breathing. Something that you do automatically.

Transitioning

to Normalcy The President has given the country a three step plan to transition from quarantine to a normal life. It is in the hands of the governor’s to implement and they have the option to modify based on their state’s situation. We need to understand that there is no immediate return to normal. We all wish there were but we need to protect our techs and our customers for months to come — maybe even into the fall. Even if we think it is ridiculous, even if we are sick and tired of the incessant TV and webinars that seek to tell us what to do — we can’t just wake up tomorrow and revert to life as we lived before January 2020. There are three reasons to continue using protective measures; i.e., taking temperatures, masks, booties, gloves, separation, and special procedures. First, Real! We need to protect our techs and customers. We know that not everyone that gets the Coronavirus has symptoms but may still be contagious. So an ounce of prevention can be worth a pound of cure. Even if it seems ridiculous, we need to err on the side of caution. Second, Psychological! Some, perhaps many of our customers, may remain fearful about your techs being in their home. We need to lead with caution for their psychological benefit. If they think there could be a problem, it is real to them and that is what counts. If we treat their fear casually, we disrespect them and perhaps don’t deserve their

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Protecting Our Clients and Employees Your Guide to Williams Heating and Air Conditioning, LLC Safety Precautions Williams Heating and Air Conditioning, LLC is committed to keeping our customers and employees safe during the COVID-19 crisis. Even though most business will soon be opening, we know that the need to practice health and safety remains. We also know that heating and air conditioning is essential. We respect and honor your trust. Some of our procedures may seem unnecessary to many but we prefer to err on the side of caution. We appreciate your business and will serve you in the same manner that we would want someone to serve our family.

We will be taking the following steps to protect both you and our technicians. Our steps are as follows:

All of our employees are aware of and provided with materials needed to follow the procedures set forthby the Centers for Disease Control (CDC) and recommended for the transition. All employees temperatures are taken and recorded at the beginning of each shift. When scheduling an appointment, a member of our officewill confirm that no one in the home or business is currently feeling ill or quarantined/isolated due toCOVID-19. Upon arrival, our technicians will apply hand sanitizer before entering your home or business and again confirm that no one is feeling ill or quarantined/isolated due toCOVID-19. To put you at ease, we will replace our usual hand- shake with a wave to say “Hello” and “Thank you.” While performing our work, technicians will wear disposable gloves.

We will practice social distancing with a goal to maintain the recommended six-foot distance from clients, family members, and/or employees. We will bag any dirty filters immediately after removing them from your system to reduce the spread of dirt, germs and viruses. We will remove these filters from your property. We will not ask for your signature on our service tickets until such time that it is deemed appropriate to do so again. Our technicians will once again apply hand sanitizer (outside your home or business) when their work at your home or business is complete. Our employees are following recent recommendations to wear face masks, and we have provided these for them. Don’t be alarmed if, out of an abundance of caution, a technician or other of our employees wears a face mask while at your home or business.

We are committed to the safety of ALL of our clients and employees!

Thank you for trusting your safety and comfort to Williams Heating and Air Conditioning, LLC .

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The Unico System: Big Benefits for End Users; Big Business Benefits for Contractors You may have heard of The Unico System (www.unicosystem.com), a heating and cooling system featured in over 30 episodes of television’s This Old House, or perhaps you have seen it featured as the only product endorsed by the National Trust for Historic Preservation: https://savingplaces.org/stories/10- cool-historic-landmarks-youll-want-to- visit#.XOAH1MhKjD4. Unico Systems are sold in all 50 states, in all provinces of Canada, and in over a dozen countries internationally. Manufactured in St. Louis, it is 100% made and 98% sourced in the United States. The Unico System: Features and Benefits for End Users The Unico System provides a lot of great end user benefits: 1. Fits into a tighter space (as you can see in the drawing accompanying this article, the system fits into one- third the space needed for other systems, and can be installed horizontally or vertically in an attic, basement, crawl space, closet or mechanical room. 2. Removes up to 30% more moisture from the air in cooling mode, making the house less humid and more comfortable. 3. Provides even room temperatures , generally just one degree of

temperature variance from floor to ceiling and wall to wall. 4. Aesthetically pleasing , in that outlets are generally the size of a cd- rom and can be hidden away in the corners of a room. There are many finishes: 16 wood types for both round and slotted outlets, as well as plastic and metal. 5. A warm air heat pump, Unico routinely delivers 120+ degree air in heating mode. This is up to 25 degrees warmer some than other heat pumps. 6. Draft free air flow , with air from the outlets gently mixing the air in the room, end users don’t feel a draft, but enjoy very even room temperatures. There are lots of other end user benefits and home owners with Unico Systems tend to register higher levels of approval and; because Unico Systems are independently rated to last over 26 years, customers enjoy comfort for years and years to come.

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4. Tools for promotion and marketing: https://www.unicosystem.com/trad e#resources you’ll find a lot of tools to help you grow your Unico System business. 5. Adding your company to the Unico Preferred Contractor program: When you become a UPC, your firm can be listed on their website. Many UPCs report significant web traffic and leads from their listing. To assist you further, Unico assigns one of the Inside Sales Group members to be the direct contact for your firm to personally help you and your team with any Unico System inquiries. If you are interested in finding out more, reach out to Scott Intagliata, Sales Director, at scott@unicosystem.com or fill out a time for a call that is convenient to you at this calendar link:

The Unico System: Benefits for Contractors – Leads and Internet Activity Unico routinely markets their product to the owners of older, architecturally unique homes as well as those families who are building their dream home. There are over 200,000 end users visits to the Unico website each year (www.unicosystem.com), and over 25,000 of those visitors punch in their zip code looking for contractors. Many of those interested end users are in Arkansas. Unico invites all better installing contractors in the state to join their growing ranks of Unico Preferred Contractors (UPCs). Here are the advantages of being a UPC: 1. Your company would have a 10-year warranty on your Unico System installations. Registration is easy to access and use, generally taking no more than three minutes to register a project: https://www.unicosystem.com/reso urces/product-registration/. 2. Training options – Unico offers factory training and on-line options, all of which can be accessed at: https://www.unicosystem.com/trad e#unico-university. One-to-one online trainings can also be arranged for your firm. 3. Technical information – please visit https://www.unicosystem.com/reso urces/manuals-software/ to find complete technical specifications for Unico System.

https://calendly.com/scottintagliata- /update-on-unico-system .

Scott Intagliata is an owner and Sales Director at Unico, Inc., manufacturer of The Unico System. He and his co-owners have grown the company over 750% over that time.

An important way to distinguish your company from all the other “me too” HVAC dealers is to have the best employees that can be trusted in the homes of your clients / customers. More important than cool air or warm air is the peace of mind in knowing that one’s belongings and family are safe. A tech that has passed a background check and has a company photo ID demonstrates professionalism and trustworthiness to the client / customer. Employee background checks are also important for the dealer. The dealer can manage their liability and their insurance costs by making sure that their employees have passed a background check, a drug screening test, and a driving record search. A member of the Arkansas HVACR Association can have that peace of mind by using the endorsed service, CourtHouse Concepts. Their prices are affordable and their reputation is great. Association members that are already using CoutHouse Concepts have given them a glowing recommendation. Be sure to identify yourself as a member of the Association to get a 10% discount.

Here are some plan option:

Expanded Criminal Plan $25.00

Independent Drug Testing $40

Motor Vehicle Report $19.95

*Social Security Trace – match SS# to applicant and lists addresses *Nationwide Criminal History—500 million criminal records *Nationwide Sex Offender Search *Nationwide Courthouse Check—7 yr. County Criminal History--Court Fees are additional if applicable

Amphetamines Barbiturates Benzodiazepines - Cocaine - Ecstasy - Marijuana - Methadone - Methamphetamine - Opiates – Phencyclidine

~3 years driving record Speeding & violations DWI Accidents

Hair follicle available on request (~90 days, $120)

24 to 48 hours

2 – 3 days

1 day or less

Paul J. Hickman III 3205 Shackleford Pass Little Rock, AR 72205 Main - 501-588-3973 : Direct - 501-588-7115 Toll Free - 877-750-3660

t.hickman@courthouseconcepts.com www.courthouseconcepts.com

Arkansas HVACR Association, P. O. Box 1296, Little Rock, AR 72203, 501-487-8655 : tomhunt@arhvacr.org ; www.arhvacr.org

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Kirk’s Corner Gear Up for Heating Season Get all the information you’ll need for the upcoming Arkansas Scoop event Oct. 13 th . During these uncertain times, your health and safety remain our top priority. Due to the increase in Covid- 19 cases we have had to change to a virtual meeting . The virtual event is going to give you the same great information just in a virtual format. • Learn what’s new in CenterPoint Energy’s rebate offerings • Receive tips on how to get rebates processed faster for your customers • And much more! Those that attend will:

Are you prepared for the heating season? “This should be a busy winter so be sure and upsell your

customers to a 95% furnace while CenterPoint Energy helps pay the difference with a $600 rebate,” said Kirk Pierce, Energy Efficiency Consultant. To save time and get your rebates more quickly, we recommend submitting your rebates online using our easy-to-use application at CenterPointEnergy.com/RebateScoop. Bonus tip Include an ENERGY STAR® Thermostat with each qualifying install for an additional $50 rebate for your customer and to maximize energy savings! We look forward to greeting you online at this year’s Scoop meeting on Oct. 13th from 10:30 a.m.- 12:30 p.m. To get more information, contact Kirk at 501-377-4646 : timoty.pierce@centerpointenergy.com Click Here

Company Leaders and Sales 9:00 AM - 10:15 AM Residential program update Important rebate processing information for your business

Rebate Admin/Office 10:30 AM - 12:00 PM

General processing updates Online processing update Processing contact info

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already satisfied with your present company? Don’t change. The Association would never ask you to do anything that is against your best interest; however, if their quote is less and you get a 10% discount, “ WHY WOULD YOU NOT CHANGE ?” Your changing to EMC helps the entire industry because of the financial help EMC gives the Association. How is that true? Let me be very presumptuous and say that the Arkansas HVACR Association offers benefits to its members that are unavailable elsewhere at an affordable price. 1. The Association works tirelessly on legislative and regulation issues. 2. The Association has saved the industry thousands of dollars that most will never know about. It is usually behind the scenes. Just one example. Those that attended the Manual J classes this fall were part of a $22,250 cumulative savings. 3. The Association offers training and informative sessions in each of the eight chapters during their five meetings. Three especially important examples are a. “So Called” Drop In Refrigerants b. Mechanical Ventilation c. DOT licensing surprise requirements Again, these were made possible in part by EMC Insurance. So, I am not embarrassed to ask you to give EMC a shot at your business. What have you got to lose? (479) 424-4918 or (501) 581-1176

Why you owe it to yourself and the industry

OK! It is obvious that the Arkansas HVACR Association promotes EMC insurance. Truth is, there is something in it for us. EMC pays the Association an advertising/marketing fee that is important to the finances of the Association. BUT THAT ISN’T THE ONLY REASON! First, EMC came recommended by several HVACR companies in the Ft. Smith chapter. Why? Here are three reasons: 1. EMC is very competitive 2. EMC offers Association members a 10% discount in addition to their competitive rates 3. EMC has a record of quick and fair claims service. Second, the fee paid by EMC to the Association allows us to keep our membership dues low, only $200 per year. Most other Associations begin at $400 and go to over a thousand. Third, we sincerely believe that every HVACR contractor in Arkansas owes it to themselves to get a quote prior to their next renewal. Notice, I did not say buy from EMC. They still have to compete for your business with pricing and service. It costs noting to get a quote and the benefits can be substantial. What if they come in higher and you are

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NTI Business & Industry 550 Bain St, Springdale, Arkansas 72764 Ronni Hammond : rhammond@nwti.edu 479-751-8824 SAU Tech 6415 Spellman Rd, East Camden, AR 71701 Eddie Horton : ehorton@sautech.edu 870-574-4500 Southeast Arkansas College 1900 Hazel Street, Pine Bluff, AR 71603 John Pyland : jpyland@seark.edu 870-543-5900 UACC Hope 2500 South Main, Hope 71802 Leo Rateliff : leo.rateliff@uacch.edu 870-722-8507 UACC Morrilton 1537 University Blvd., Morrilton, AR 72110 3000 West Scenic Drive, NLR 72206 Robert Dixon : rdixon@uaptc.edu 501-812-2200 EEDD 1224 Fayetteville Road, Van Buren Rick Rosenthal : rr.eeddinc@outlook.com 479-926-7462 If you are a college or technical institute and want to be included in the list of HVACR education providers, contact the NewsMagazine 501-487-8655 tomhunt@arhvacr.org We’ll make sure you are in the next issue. Also, if we need to correct your information, please let us know. (501) 977-2053 UA Pulaski Tech Add Your Name

Training Programs

Arkansas North Eastern College 4213 Main Street, Blytheville 72315 Rick Sones : rsones@smail.anc.edu 870-763-6222 Arkansas Tech University, Ozark 1700 Helberg Lane, Ozark, AR 72949 Kenneth Beeler : kbeeler@atu.edu 479-508-3333 ASU Mountain Home 4034 Hwy 63 W, Mountain Home 72653 Eric Smith : esmith@asumh.edu 870-508-6221 ASU Newport 33500 US 63, Marked Tree 72365 Mark Constant : mark_constant@asun.edu 870-358-2117 ASU Searcy 1800 East Moore Avenue, Searcy 501-207-6221 Crowley’s Ridge Technical Institute 1620 Newcastle Road, Forrest City, AR 72335 Robert Jackson : 870-633-5411 National Park College 101 College Drive, Hot Springs, 71913 Kelli Albrecht : 501-760-4349 501-760-4222 North Arkansas Community College 1515 Pioneer Drive, Harrison, AR 72601 Jeff Smith : jsmith@northark.edu 870-391-3382 Northwest Arkansas Community College One College Drive, Bentonville, AR 71712 Michael Dewberry : mdewberry@nwacc.edu 870-391-3382

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