Construction Outlook April 2014

A publication of the Utility Contractors’ Association of New England, Inc.

APRIL, 2014

Agency Heads Forecast Sustained Level of Underground Water and Sewer Projects

• MassDEP Releases Final CY2014 SRF Lists • MWRA FY14-FY15 Upcoming & Ongoing Projects • BWSC 2014-2016 Capital Improvement Program

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APRIL, 2014 OFFICERS President AL MORTEO FED. CORP. President Elect TONY BORRELLI Celco Construction Corp.

Treasurer JOHN OUR Robert B. Our Co., Inc. Secretary PAUL SCENNA Albanese D&S, Inc.

BOARD OF DIRECTORS MARCELLA ALBANESE Albanese Bros., Inc. JEFF BARDELL Daniel O’Connell’s Sons, Inc. VINCENT BARLETTA Barletta Heavy Division NICK BIELLO J. D’Amico, Inc. KEVIN COLE J. F. White Contracting Co. STEVE COMOLETTI P. Caliacco Corp.

STEPHEN J. CONNOLLY ATS Equipment, Inc. MAUREEN DAGLE Dagle Electrical Const., Corp.

THOMAS DESCOTEAUX R. H. White Const. Co., Inc. ALEX DUNN Travelers JERRY GAGLIARDUCCI Gagliarducci Construction, Inc. MARCO GIOIOSO P. Gioioso & Sons, Inc. BILL IRWIN C.J.P. & Sons Const. Co., Inc. PHIL JASSET Honorary Board Member RICHARD PACELLA, JR. R. M. Pacella, Inc. BRIAN RAWSTON J. Cashman, Inc. KENNETH STEVENS A. H. Harris & Sons, Inc. DAVID ZOPPO R. Zoppo Corp.

KLAYMAN ANNE Executive Director

IN THIS ISSUE

3 President’s Message:

UCANE’s Associate Members are a “Rare and Special Breed!”

5 Legislative Update:

• Legislatively Mandated Reporting Deadline Signals Turn Towards the End of Formal Sessions • House Passes Minimum Wage and Unemployment Insurance Reform Bill, Next Steps for Legislation Uncertain • Massachusetts Water Pollution Control Association Legislative Event Focuses on Water Infrastructure Funding and Challenges • Governor’s Advisory Committee on Employee Health and Safety Releases Findings and Recommends Legislation • Tewskbury Considering Options to Address Sewer Infrastructure

14 UCANE’s March Dinner Meeting:

Agency Heads Forecast Sustained Level of Underground Water and Sewer Projects

19 MassDEP Releases Final CY2014 Clean Water & Drinking Water SRF Lists Totaling Over $542 Million 27 MWRA FY14-FY16 Upcoming Construction Awards 31 MWRA Ongoing Capital Improvement Projects 35 BWSC 2014-2016 Capital Improvement Program Executive Summary and Upcoming Projects 43 UCANE’s Third Annual Trade Show 47 Environmental Viewpoint:

EPA’s Climate Assessment Update to the National Stormwater Calculator

49 Legal Corner:

General Casualty Co. of Wisconsin v. Five Star Building Corp.: Continuing the Trend Toward Recognizing Coverage for Defective Work Claims

55 Save the Date...UCANE’s 35th Annual Golf Classic 57 UCANE Welcomes New Members 58 Massachusetts LLS presents “Champions of Hope Gala” 59 Financial Management:

• Is It Time to Trim Stocks?

• Supreme Court Bolsters Beneficiary Rights • Business Owners Get More Bang From Flex Plan Bucks

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Graphic Designer: Sherri Klayman Construction Outlook Chairman: Al Morteo Editorial Board: Al Morteo, Tony Borrelli, John Our, and Paul Scenna CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; E-mail: aklayman@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff.

Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Abington, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

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UCANE’s Associate Members are a “Rare and Special Breed!”

Like UCANE’s Contractor members who have to “sharpen their pencils” to win highly competitive public and private jobs, UCANE’s Associate members are ready, willing, and able to compete for our business, not only on price, but on their service and willingness to “go the extra mile.”

UCANE’s Associate members, many of whom have been members for twenty or thirty years, are an integral part of our Association and have contributed to our success in many ways. Associate members serve on our Committees and are members of our Board of Directors. They support our Association’s goals and literally every UCANE function…from our College Scholarship Program to our Annual Banquet where we honor our Contractor and Associate Member of the Year recipients. They advertise their products and services in our Annual Industry Directory and our monthly publication, Construction Outlook magazine. They attend our dinner/business meetings and support our various charitable endeavors, including the Leukemia & Lymphoma Society of Massachusetts, and Sojourner House, a shelter for homeless families through their golf tournament. They do all this willingly and in turn I believe our Contractor members should give them the chance to quote on their products and/or services.

Our Executive Director, Anne Klayman continually tells our Board that UCANE’s Associate Members are a “rare and special breed.” I know this to be true, and, time and time again, have seen their generosity and support for our Association’s causes.

They don’t simply pay their dues so they can say that they belong to UCANE. On the contrary, they not only pay their dues, they ask what more they can do. They take a supporting and active role in

APRIL, 2014

our Contractor’s issues, knowing that the more successful our Contractors are, the more potential they have to do business.

It’s absolutely a win-win situation when one of our Associates is chosen by a Contractor member as their supplier of a product or service. The Contractor wins because s/he has fulfilled a requirement of the bid, and the Associate wins because s/he has increased their business and has the opportunity to forge a lasting relationship with the Contractor. Associates hope that one win will lead to a second and third.

Whether keeping our Contractors informed about the newest products, latest construction techniques, or cost-cutting methods, our Associate members play an important role in our Association. All they ask in return is for the opportunity to present their product or service. I think that is a very fair request…and so I ask all of our Contractor members to please refer to UCANE’s Annual Industry Directory when you are in need of a product or service. By doing business with our Associate members, whenever possible, everybody wins! n

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Legislatively Mandated Reporting Deadline Signals Turn Towards the End of Formal Sessions

M

arch was an extremely busy month in the legislature, as the various legislative committees issued hundreds of favorable reports, unfavorable reports, study orders, and extensions on legislative matters in order to comply with Joint Rule 10. Under Joint Rule 10, all joint committees, with the exception of the Joint Committee on Health Care Financing, must make final report on all matters referred to them at the beginning of the 2013-2014 session no later than the third Wednesday of March of the second year.

Of interest to UCANE, the following bills are a sampling of matters that were ordered to a study by respective committees: • HB 679, An Act relative to the reduction of particulate emissions from diesel engines.

(Would require the Best Available Diesel Retrofit Technology for all off-road vehicles).

• SB 1496, An Act creating flexibility in contracting for public construction. (Would allow for unfettered design build for water and sewer projects throughout the Commonwealth).

Also of interest to UCANE, the following pieces of legislation are a sample of matters that were advanced favorably by respective committees on or before March 19: • SB 1527, An Act relative to requiring interest on retainage. (A UCANE filed matter; this legislation would provide interest to contrac-

APRIL, 2014

tors for retainage held more than a certain period).

• SB 873, An Act promoting fairness in private construction contracts. (Note: this legislation, which requires weekly payroll certification, was recently signed by the Governor).

• SB 854, An Act requiring recordkeeping at public construction worksites, in order to protect first responders. (Would require worksite sign-in to determine the number of people physically present at a given worksite).

Finally, various matters of interest to UCANE were given extension orders, which allow the respective committees more time to evaluate a legislative proposal. For instance, the Joint Committee on Telecommunications, Utilities and Energy has filed for an extension until June 15, 2014 to consider the several different bottle bills before it. Most of these matters would simply expand the bottle redemption program and allow for redemption on containers of still water and other non-carbonated, non-alcoholic containers. UCANE has taken the position that any “bottle redemption” legislation must be used to fund water infrastructure.

UCANE continues to advocate for or against the various initiatives that impact UCANE’s membership. The end of formal sessions is July 31, 2014. Thereafter, informal sessions, where noncontroversial matters may be considered, continue until December 31, 2014. continued on page 7

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Legislative Update continued from page 5

I

House Passes Minimum Wage and Unemployment Insurance Reform Bill, Next Steps for Legislation Uncertain

ment during House debate on the matter. n the first days of April, the House passed a minimum wage and unemployment insurance reform package, With both branches having passed UI reform and House Bill 3983, An Act relative to workforce reform. an increase to minimum wage, the usual process would The Senate passed separate legislation to reform the mincall for a conference committee to negotiate the differimum wage and unemployment insurance in November ences between the House and Senate proposals. Howand February, respectively. UCANE, after sending its own ever, the House crafted its own version of the legislation outreach and correspondence to the legislators, joined rather than taking up the bills passed by the Senate. For with every other major contractor organization in sending this reason, there is uncertainty between the branches a joint letter to legislative leaders about the impact certain as to the strategy for advancing these different pieces UI reforms will have on the construction industry. of legislation. If the matters remain in limbo for the reThe reform measures advanced by the House and mainder of formal sessions, the minimum wage issue Senate reflect some major similarities. Both the House will likely appear on the ballot in November. and Senate UI bills propose expanded experience rate In a late development, the House and Senate aptables that would reward the highest-rated employers pear to have agreed to freeze the UI rates for this year. and in a sense, punish the lowest-rated employers, Accordingly, while the large-scale reforms remain to be by requiring them to pay more. Both UI reform pieces worked out, the House and Senate plan to pass legislawould lengthen the payroll base for experience rate caltion freezing the UI rates for this year. It is anticipated to culations and base UI tax rates on the average of three go to the Governor’s desk shortly in an effort to address years payroll instead of one, which would lower the the pending UI billing cycle. rates for businesses that have added jobs. This change is thought to minimize rate shock for companies that continued on page 9 quickly expand and those that encounter cyclical economic problems that require layoffs. That said, key differences remain in the two legislative proposals. These include, but are not limited to, the following: • Minimum Wage Increase: The Senate’s bill would increase the minimum wage to $11 per     hour over the next three years while tying fu-       Source for Quality Lu

ture increases to the rate of inflation. The House

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$10.50 per hour over the next two years and      does not index future increases to inflation. If    the Senate’s proposal for minimum wage is ad-   opted, this would set Massachusetts as having    the highest minimum wage in the country.   • Unemployment Insurance Taxable Wage   Base: The Senate version would raise the    st st employer taxable wage base from $14,000 to New Â

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Legislative Update continued from page 7

Massachusetts Water Pollution Control Association Legislative Event Focuses on Water Infrastructure Funding and Challenges

T

he Massachusetts Water Pollution Control Association (MWPCA) Government Affairs Committee, in collaboration with the New England Water Environment Association (NEWEA) and New England Interstate Water Pollution Control Commission (NEIWPCC), held its fourth annual Legislative Event in March at the Omni Parker House in Boston. Attendees included Massachusetts legislators, representatives from MassDEP and the Water Pollution Abatement Trust; local officials; industry advocates and professionals.

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Representative Carolyn Dykema, a lead on the Massachusetts Water Infrastructure Finance Commission and also a member of the Joint Committee on the Environment, Natural Resources and Agriculture, and the House Committee on Ways and Means, delivered keynote remarks. The focus of Representative Dykema’s talk was the Senate President’s water infrastructure financing legislation, which is currently before the House. That legislation aims to deliver new funding for water and wastewater infrastructure while also putting in place various reform measures. Representative Dykema highlighted the importance of the partnerships between the state and municipalities and continued advocacy on this issue.

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Mayor Kim Driscoll of Salem, Mayor Gary Christenson of Malden, and Mayor Richard Kos of Chicopee also spoke at the event and shared their cities’ struggles with aging water and wastewater infrastructure that are in dire need of repair.

Cities are also facing new federal mandates that often require system upgrades to comply with more stringent regulations, despite the unavailability of any funding. The mayors described the challenges of striking a balance between appropriating resources to repair broken systems in need of maintenance and/or achieve compliance with unfunded federal mandates. Decades of deferred maintenance render it even more important for municipalities to address water infrastructure needs now, as the reliability of water systems for residents and businesses becomes compromised, as well as the community’s economic stability.

The mayors also expressed concern with financing in light of priorities to minimize the impact on ratepayers.

The MWPCA successfully drew attention to the concerns and challenges that both the state and municipalities share when it comes to addressing our aging water infrastructure.

continued on page 11

APRIL, 2014

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Legislative Update continued from page 9

Governor’s Advisory Committee on Employee Health and Safety Releases Findings and Recommends Legislation

A

ccording to a press release issued by the Massachusetts Coalition for Occupational Safety and Health (MassCOSH), the Massachusetts Employee Safety and Health Advisory Committee recently released a report with recommendations for promoting safety at state workplaces. The Advisory Committee was created by Governor Deval Patrick in 2009 through Executive Order 511 to evaluate injury and illness data, recommend training and implementation of safety and health measures, monitor the effectiveness of safety and health programs, and determine where additional resources are needed to protect the safety and health of the Commonwealth's employees. According to the report, Governor Patrick issued the executive order to address health and safety protections for Commonwealth employees because public workers are not covered by federal Occupational Safety and Health standards and rules.

In addition to creating the Advisory Committee, the executive order required each secretariat to appoint a Health and Safety Coordinator and keep records concerning occupational injuries, illnesses, and deaths.

The Advisory Committee reported that, based on re-

ported claims from Executive Branch agencies, more than 3,000 state workers experienced job-related injuries serious enough to require time off from work (i.e., lost time) and four workers lost their lives during the period FY10 through FY12. The hazards causing the greatest number of these injuries included violent assaults (i.e., correctional officers and law enforcement), falls from height, and lifting injuries.

One of the Advisory Committee’s major recommendations was that the Commonwealth establish, through legislation, an OSHA-type program of training, technical assistance, and enforcement for state government using these standards, and to allocate sufficient resources for necessary staff and equipment and other prevention measures to implement this program. The Committee also recommended that the Commonwealth ensure design and implementation of this program is risk-focused so that highest risk issues are given the highest priority. Coincidentally, legislation that would implement most of the report’s recommendations received a favorable report from the Joint Committee on Labor and Workforce Development in March.

continued on page 13

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Legislative Update continued from page 11

A

Tewskbury Considering Options to Address Sewer Infrastructure

ccording to the Tewksbury Town Crier, the Town of Tewksbury is faced with a huge drop in revenue for its Sewer Enterprise Fund. Accordingly, the Tewksbury Board of Selectmen must now determine how to raise $640,000. Town Manager Richard Montuori outlined his proposed $6.2 million Sewer Enterprise Fund budget for FY15 at the end of March. According to his report, estimated revenue from sewer hookups will drop more than $640,000, from $815,652 in the current fiscal year to around $172,800 in FY15.

While expected for a number of years, the reason for the shortfall was the result of many residents having finished paying off their $3,000 sewer betterment fee, established at the time the $100 million townwide sewer project was approved back in 2002. As a result of the revenue drop-off, Town Manager Montuori projected that sewer rates would have to increase between 13 and 15 percent in FY15. For an average Tewksbury family, producing 90,000 gallons of waste flow per year, the rate would increase 13 percent, from $12.45 to $14.07 per 1000 gallons. This would

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result in an increase on their bill of $106.16 ($816.98 to $923.14).

While expressing concerns that the original “hook-up” fees may have been too low, selectmen heard about a proposal which would result in no increase at all in the sewer rates for FY15. The proposal would shift $640,000 in debt from the sewer project over to the property tax levy. According to the presentation, the move would share the cost among all property owners in town and not just the roughly 65 percent connected to the sewer line. The $640,000 debt shift would result in the property taxes for the owner of a $314,000 property (the average home price in Tewksbury) increasing an estimated $47.10 per year.

Of the proposed $6.2 million Sewer Enterprise Budget for FY15, $3.65 million (59 percent) is debt payment, largely associated with a 2002 sewer project. While no final decision on the matter was made at the meeting, this further reflects the difficulties faced by cities and towns in addressing their water and sewer infrastructure needs. n

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UCANE’s March Dinner Meeting

Agency Heads Forecast Sustained Level of Underground Water and Sewer Projects

Steve McCurdy

Fred Laskey

John Sullivan, P.E.

MassDEP Director of Municipal Services

MWRA Executive Director

BWSC Chief Engineer and Operations Officer

R

umor had it that a truce was called last year. But, as the date for UCANE’s Annual Construction Forecast meeting got closer they just couldn’t control themselves. Unknown to one another, each planned a surprise for the other…something a little different.

Now the Hatfield and McCoy feud lasted for nearly three decades and has long been forgotten. But the intense need of the leadership of Massachusetts’ two major water and sewer construction “clans” to duel each other in a comedic battle for the bigger laughs, will forever be remembered by UCANE members, who have attended these Forecast meetings year after year.

Some would call it a full-fledged competition.

Some would call it light-hearted banter. Let’s just call it what it is…good natured ribbing between close friends who have a common goal of providing Massachusetts and Boston residents with the best drinking water and sewer services that exceeds everyone’s expectations, and also provides some levity to what everyone knows is a serious subject.

While much has been said about each presenters program, both John Sullivan, Chief Engineer of the Boston Water and Sewer Commission (BWSC), and Fred Laskey, Executive Director of the Massachusetts

14

Water Resources Authority (MWRA), fully understand how important this forecast meeting is to UCANE members. The heart and soul of the presentations are the jobs coming out for bid this year, and their bid dates, and both agencies construction expectations for the coming years. Comedy aside, everyone is on-board with the seriousness of the issues being discussed as this meeting has proven to be mutually beneficial to both contractors and the agencies putting out the work.

Knowing the planned projects for the year allows contractors to utilize their manpower and equipment resources to the fullest extent possible. Also, by providing contractors with important business information, the agencies are helping to assure the maximum participation in the bidding process, and the highest level of competition and the lowest prices.

Over 250 members and guests attended UCANE’s 2014 Annual Forecast Meeting, held at the Four Points

by Sheraton Hotel in Norwood, MA. This is always a heavily anticipated and attended meeting, as the agency representatives presentations outline the jobs coming out to bid in the coming year.

UCANE President Al Morteo opened the meeting with welcoming remarks and then turned the meeting over to Executive Director Anne Klayman. She introduced

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

our new members and guests who were in attendance, as well as four prospective members.

Anne then introduced MassDEP Director of Municipal Services Steve McCurdy who spoke of the State Revolving Loan Fund (SRF) history and success, as well as new requirements for the SRF in 2014. All in all, he expressed a positive outlook for the number and dollar value of water and sewer projects proposed for the coming year. (See page 19 for the MassDEP CY2014 final lists of Clean Water and Drinking Water projects.)

Next, MWRA Executive Director Fred Laskey presented a slide show highlighting recently completed projects, projects currently underway, and projects coming out to bid. (See page 27 for the complete list of projects.)

Boston Water & Sewer Commission’s Chief Engineer John Sullivan followed by presenting an overview of the 2014-2016 Capital Improvement Program and a

APRIL, 2014

detailed review of the projects that are expected to be put out for bid in the next three years. (See page 35 for the BWSC list.)

The general consensus of all three speakers was that there would be sustained levels of underground water and sewer construction projects in the immediate future.

According to the presenters, the need for clean drinking water, wastewater pipeline, and treatment facilities will continue to grow in order to meet the needs of our citizens, as well as to build the foundation for business and job growth.

The presentations illustrated environmental problems our state faces and the subsequent cost to remedy these problems. They highlighted that there is a very important need to prepare for climate change, which has already begun to effect sea level and will continued on page 17

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

15

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We Buy Scrap!

Servicing all of MA and RI. We buy scrap, haul scrap, rent scrap processing equipment, provide lowbed service and more!

We Want Your Scrap!

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

Dinner Meeting continued from page 15 continue to over time. It is imperative to be proactive as it is not an if it happens, but when it happens situation.

Concern was voiced about the lack of public understanding of the complexities involved in developing and then constructing a viable, efficient, and reliable drinking water and wastewater infrastructure network, which will allow our state to continue to prosper. The presenters also expressed the need to inform the public and our elected officials of the success of the SRF program, which is essential if the program is to successfully compete for limited resources with other equally important programs.

We at UCANE want to thank our speakers for taking the time out of their busy schedules to join us and for their informative presentations. The consensus among those in attendance was that the meeting met and exceeded their expectations, with regard to providing each agency’s prospective projects.

This is one of the best examples of government and private industry working together for the good of the citizens of the Commonwealth.

We would also like to thank our Construction Outlook advertisers who participated in our third annual trade show prior to the meeting. It was a huge success! (Article on page 43.) n

APRIL, 2014

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17

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

MassDEP Releases Final CY2014 Clean Water & Drinking Water SRF Lists Totaling Over $542 Million

M

$415.6 MILLION FOR CLEAN WATER SRF IN 2014

assachusetts DEP is pleased to present the Final 2014 Intended Use Plan (IUP), which details the projects, borrowers and amounts that will be financed through the Clean Water State Revolving Fund (CWSRF) program. This Final CWIUP is based on a Draft CWIUP that was widely circulated and reflects comments that were received following a public hearing that was conducted on January 24, 2014. The CWSRF is a joint federal-state financing program that provides subsidized interest rate loans to improve or protect water quality in the Commonwealth.

As noted in Table 1, Massachusetts is offering approximately $415.6 million to finance clean water projects across the Commonwealth. Approximately $366.2 million will fund 31 new projects and $28.8 million is allocated towards funding 8 previously approved multi-year projects. An additional $13.6 million will fund clean water Planning Projects and $2 million has been allocated to an emergency set-aside account. A total of $5 million will be directed to the Community Septic Management Program to remediate failed septic systems in participating communities.

Table 1 Clean Water State Revolving Fund TABLE 1 CY2014 Intended Use Plan CLEAN WATER STATE REVOLVING FUND Calendar Year 2014 CWSRF Intended Use Plan

NEW PROJECTS Rating Applicant Rating Applicant

SRF

SRF ID ID Project

NEW PROJECTS

Project

137 NEW BEDFORD (EJ)(RE)#

3858 CSO Abatement

124 CHICOPEE (EJ)

2014 Cost IUP ProjectProject Cost 2014 IUPCost Cost $183,900,000

$40,000,000

3913 CSO Area 4

$15,140,000

$15,140,000

122 MARION #

3859 WW Collection and Drainage Improvements

$16,700,000

$16,700,000

118 FITCHBURG (EJ)#

3863 Easterly WWTF Upgrade

$19,210,000

$19,210,000

117 SAUGUS (EJ)#

3911 SSO Reduction Subsystem 5

$2,706,000

$2,706,000

111 MWRA

3917 CSO Phase 15

$671,637,000

$20,000,000

109 SPRINGFIELD WATER AND SEWER COMMISSION (EJ)

3916 Dickinson Siphon/Main Interceptor Rehab

$17,880,000

$9,858,000

107 REVERE (EJ)#

3910 Collection System Improvements

$19,250,000

$19,250,000

106 GROTON

3861 Lost Lake Sewers

$11,880,000

$11,880,000

101 HAVERHILL (EJ)

3918 CSO Improvements, WWTF and SEWER SYSTEM

$6,588,000

$6,588,000

93 BILLERICA #

3902 WWTF Upgrades

$4,625,000

$4,625,000

89 FALMOUTH (EJ)

3928 Sewer Extension and New Recharge Site

$39,580,000

$39,580,000

89 LAWRENCE (EJ)#

3919 Sewer System Rehabilitation

$12,808,000

$12,808,000

87 NORWOOD (EJ)

3853 Sewer Underdrain Rehab

$2,700,000

$2,700,000

86 LUNENBURG

3860 Sewer Extension

$1,628,000

$1,628,000

84 FALMOUTH (EJ)#

3929 WWTF Upgrade

$4,860,000

$4,860,000

79 BILLERICA

3899 Contract 35 Sewers

$14,000,000

$14,000,000

74 MIDDLEBOROUGH (EJ)

3924 WWTF Upgrades

$24,880,000

$24,880,000

74 LOWELL REGIONAL WASTEWATER UTILITY (EJ)#

3923 WWTF Biosolids Dewatering Improvements

$4,000,000

$4,000,000

71 BOSTON (EJ)(RE)#

3907 Gardner St. Landfill Closure

$22,717,000

$22,717,000

69 TYNGSBOROUGH 64 BROCKTON (EJ)

APRIL, 2014 (EJ)# 61 MONTAGUE 61 NORTON

3926 PH 1 and 2 Sewer Extensions

continued on$8,834,000 page 20 $8,834,000

3856 Sewer System Rehab

$1,750,000

“BUY FROM ADVERTISERS IN CONSTRUCTION OUTLOOK” 3915 PumpTHE Station Replacements $7,280,000 3869 Sewer Extensions

$12,826,000

$1,750,000

19 $7,280,000 $12,826,000

87 NORWOOD (EJ)

3853 Sewer Underdrain Rehab

$2,700,000

$2,700,000

86 LUNENBURG

3860 Sewer Extension

$1,628,000

$1,628,000

84 FALMOUTH (EJ)#

3929 WWTF Upgrade

79 BILLERICAcontinued DEP/SRF

from

page 3899 19 Contract 35 Sewers

$4,860,000

$4,860,000

$14,000,000

$14,000,000

$24,880,000

$24,880,000

$4,000,000

$4,000,000

$22,717,000

$22,717,000

74 MIDDLEBOROUGH (EJ)

3924 WWTF Upgrades

WASTEWATER

UTILITY (EJ)# Rating Applicant

74 LOWELL REGIONAL

3923

71 BOSTON (EJ)(RE)#

3907 Gardner St. Landfill Closure

69 TYNGSBOROUGH

3926 PH 1 and 2 Sewer Extensions

$8,834,000

$8,834,000

64 BROCKTON (EJ)

3856 Sewer System Rehab

$1,750,000

$1,750,000

61 MONTAGUE (EJ)#

3915 Pump Station Replacements

$7,280,000

$7,280,000

61 NORTON

3869 Sewer Extensions

$12,826,000

$12,826,000

54 MWRA

3921 Chelsea Screenhouse Upgrades

$3,630,000

$3,000,000

54 MWRA

3920 Remote Headworks Upgrade

$161,755,000

$3,600,000

54 MWRA

3922 DITP Upgrades

$28,694,297

$3,000,000

52 MALDEN (EJ)#

3906 Sewer Improvements

$4,000,000

$4,000,000

48 BRIDGEWATER

3862 Sewer Inspection, Cleaning and Lining

$4,760,500

$4,760,500

47 PLYMOUTH (EJ)

3864 Route 44 Sewer Expansion

$9,980,000

$9,980,000

45 GARDNER (EJ)

3866 WWTP Upgrades

$14,000,000

$14,000,000

$1,354,198,797

$366,160,500

NEW PROJECTS (cont.)

WWTF Biosolids Dewatering Improvements

SRF ID

Project

TOTAL OF NEW PROJECTS (Count: TOTAL 31)

OF NEW PROJECTS (Count: 35) (Count: 31)

(Average Rating:

83.45) (Average Rating: 93.14) (Average Rating: 83.45)

2014 Project Cost IUP Cost

$1,354,198,797 $ 366,160,500

(EJ) - Environmental Justice Communities (EJ) - Environmental Justice Communities (RE) - Potential Renewable Energy Projects (RE) - Potential Renewable Energy Projects # - Projects containscontains EnergyEnergy Efficiency, Renewable Energy, EPA'sdefinition definition a Green Project # - Projects Efficiency, Renewable Energy,and/or and/or meets meets EPA's of aofGreen Project (http://water.epa.gov/aboutow/eparecovery/index.cfm) (http://water.epa.gov/aboutow/eparecovery/index.cfm)

continued on page 21

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS Applicant

L. GUERINI$26,657,515 GROUP, INC. Specialists In 1762 Plant Optimization/Ancillary Modifications $3,000,000 3641 CSO $25,429,393 $9,429,393 SINCE 1917 Bonding And 3134 Deer Island Treatment Plant Improvements $81,559,117 $3,000,000 3668 Nut Island Headworks & Conveyor Improv. $8,700,000 $1,000,000 Material Placement Specialists 2885 Wastewater Treatment Electrical Plant and Sewer $44,461,788 $3,000,000 Insurance For Improvements 3823 Caruso Pump Station $2,398,000 $3,000,000 $1,398,000 2870 Electrical Upgrades $73,215,641 Contractors 3134 Deer Island Treatment Plant Improvements $81,559,117 $2,000,000 SRF ID Project

Applicant

Project Cost

SRF ID Project

MWRA

CHICOPEE (EJ)# MWRA

MWRA MWRA MWRA MWRA MWRA SOUTHBRIDGE (EJ)

Project Cost

3100 Brownfields Redevelopment

$240,740,221 $51,436,276 $17,700,000 $2,000,000

CARL TRAINA

MWRA #

3542 DITP Digester and Cryogenics Upgrade

MassDEP PRIORITY TAUNTON (EJ) PROJECTS Applicant

300 Congress Street Quincy, 02169-0907 3793MA SSES Phases 10-12 SRF ID Project 617.773.9200

EMERGENCY SRF SET-ASIDE

SRF ID Project

COMMUNITY SEPTIC PLANNING PROJECTS

MANAGEMENT PROGRAM Applicant LOU TONRY

281 Main Street 3850 MA 01570 Webster, SRF ID Project 508.671.9222

EMERGENCY SRF SET-A-SIDE BLACKSTONE (EJ)

BOURNE (EJ) PROJECTS TOTAL OF MassDEP PRIORITY

(Count: 2)

2977

3710 3709

BRIDGEWATER (EJ)

CANTON PLANNING PROJECTS

$15,000,000

$9,000,000

$249,790,014

$28,827,393

2012 IUP Cost

Pumps Up To 200 yds/hr • Booms Up To 142’ Reach $5,000,000 $5,000,000 Line Pumps • Grout Pumps Project Cost 2012 IUP Cost Material Placement To 106’ $2,000,000 $2,000,000

3653 Stormwater Management Plan

BOURNE (EJ)

$2,000,000

$2,000,000 EQUIPMENT $2,000,000 CONCRETE PUMPING “TELEBELT” MOBILE CONVEYORS $2,000,000 $2,000,000 STONE SLINGER SERVICE Project Cost 2014 IUP Cost

2977 Bedford

238 Street Lexington, MA 02421 TOTAL OF MassDEP PRIORITY PROJECTS 781.861.1800 MassDEP PRIORITY PROJECTS (Count: 1) Applicant

$16,582,060 Project Cost

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 8)

$1,700,000

3580 Phases 8 - 9Treatment SSES and Plant Pump Station Upgrades 2885 Wastewater and Sewer Improvements $10,000,000 $48,685,168 $4,000,000 $2,000,000

TOTAL OF#MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MWRA 3543 DITP Electrical and Plant Upgrades (Count: 6)

2014 IUP Cost

$4,846,160

Since 1926

MWRA TAUNTON (EJ)

2012 IUP Cost

34 Topalian Street Stormwater Management Plan PO Box 260187 Comprehensive Wastewater and Nutrient Plan Boston, MA 02126

$400,000

$300,000 $7,000,000 $300,000$7,000,000 $350,000

$350,000

3744 Water Resource Management Plan

$250,000

$250,000

3706 Stormwater Management Plan

$491,000

$491,000

(617) 296-0290

www.tonry.com www.guerini.com SRF ID Project Project Cost 3671 Stormwater Fee and Management Plan $450,000

Applicant MELROSE

NANTUCKET BROCKTON

3704 CWMP 3855 Stormwater Management Plan

NORWOOD

EASTHAMPTON

PEMBROKE “BUY

20 EVERETT

3716 SSES/CMOM/Stormwater Planning

FROM THE

PLYMOUTH (EJ)

FALL RIVER

$400,000

3912 IWRMP

3708 Stormwater Management Plan ADVERTISERS IN CONSTRUCTION

3890 Storm Water/Sewer Evaluation 3707 CWMP

OUTLOOK”

3925 Integrated Wastewater and Stormwater Plan

2014 IUP Cost $450,000

$685,000 $400,000

$685,000 $400,000

$500,000

$500,000

$1,100,000

$340,000

$500,000

$500,000

$3,000,000

$1,100,000

$340,000 APRIL, $500,000

2014

$500,000

$3,000,000

(EJ) - Environmental Justice Communities (EJ) -- Environmental Environmental Justice Justice Communities Communities (EJ) (RE) - Potential Renewable Energy Projects (RE) -- Potential Potential Renewable Renewable Energy Energy Projects Projects (RE) # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of a Green Project # Projects contains contains Energy Energy Efficiency, Efficiency, Renewable Renewable Energy, Energy, and/or and/or meets meets EPA's EPA's definition definition of of aa Green Green Project Project # -- Projects (http://water.epa.gov/aboutow/eparecovery/index.cfm) (http://water.epa.gov/aboutow/eparecovery/index.cfm) (http://water.epa.gov/aboutow/eparecovery/index.cfm)

DEP/SRF continued from page 20

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSCARRYOVER MULTI-YEAR MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY STATUTORY PROJECTS PROJECTS MULTI-YEAR Applicant SRF ID Project Applicant

SRF Applicant SRF ID ID ID Project Project Applicant SRF Project

AND STATUTORY PROJECTS

Project Cost 2014 IUP Cost Project Project CostCost 2014 2014IUP IUPCost Cost Project Cost 2014 IUP Cost

CHICOPEE (EJ)# 3641 CSO $25,429,393 $9,429,393 CHICOPEE 3641 $25,429,393 $9,429,393 CHICOPEE (EJ)# (EJ)# 3641 CSO CSO $25,429,393 $9,429,393 MWRA 3668 Nut Island Headworks Electrical & Conveyor Improv. $8,700,000 $1,000,000 MWRA 3668 Nut Island Headworks Electrical & Conveyor Improv. $8,700,000 $1,000,000 MWRA 3668 Nut Island Headworks Electrical & Conveyor Improv. $8,700,000 $1,000,000 MWRA 3823 Caruso Pump Station $2,398,000 $1,398,000 MWRA 3823 Caruso Caruso Pump Pump Station Station $2,398,000 $1,398,000 MWRA 3823 $2,398,000 $1,398,000 MWRA 3134 Deer Island Treatment Plant Improvements $81,559,117 $2,000,000 MWRA 3134 Deer Deer Island Island Treatment Treatment Plant Plant Improvements Improvements $81,559,117 $2,000,000 MWRA 3134 $81,559,117 $2,000,000 MWRA 2885 Wastewater Treatment Plant and Sewer Improvements $48,685,168 $2,000,000 MWRA 2885 Wastewater Treatment Plant and Sewer Improvements $48,685,168 $2,000,000 MWRA 2885 Wastewater Treatment Plant and Sewer Improvements $48,685,168 $2,000,000 MWRA # 3543 DITP Electrical and Plant Upgrades $51,436,276 $2,000,000 MWRA # 3543 DITP Electrical and Plant Upgrades $51,436,276 $2,000,000 MWRA # 3543 DITP Electrical and Plant Upgrades $51,436,276 $2,000,000 MWRA # 3542 DITP Digester and Cryogenics Upgrade $16,582,060 $2,000,000 MWRA # 3542 DITP Digester and Cryogenics Upgrade $16,582,060 $2,000,000 MWRA # 3542 DITP Digester and Cryogenics Upgrade $16,582,060 $2,000,000 TAUNTON (EJ) 3793 SSES Phases 10-12 $15,000,000 $9,000,000 TAUNTON (EJ) 3793 SSES Phases 10-12 $15,000,000 $9,000,000 TAUNTON (EJ) 3793 SSES Phases 10-12 $15,000,000 $9,000,000 TOTAL OFTOTAL MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSPROJECTS $249,790,014 $28,827,393 OF MULTI-YEAR CARRYOVER AND STATUTORY

$249,790,014 $28,827,393 TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $249,790,014 $28,827,393 TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $249,790,014 $28,827,393 (Count: 8) (Count: 8) (Count: 8) (Count: 8) MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS MassDEP PROJECTS MassDEP PRIORITY PRIORITY PROJECTS Applicant SRF ID Project Project CostCost 2014 2014IUP IUPCost Cost Applicant

SRF ID

Project Applicant SRF Project 2014 Applicant SRF ID ID Project Project Project Cost Cost 2014 IUP IUP Cost Cost COMMUNITY SEPTIC 3850 $5,000,000 $5,000,000 COMMUNITY SEPTIC 3850 $5,000,000 $5,000,000 MANAGEMENT PROGRAM COMMUNITY SEPTIC 3850 $5,000,000 $5,000,000 MANAGEMENT MANAGEMENT PROGRAM PROGRAM EMERGENCY SRF SET-A-SIDE 2977 $2,000,000 $2,000,000 EMERGENCY SRF SRF SET-A-SIDE SET-A-SIDE 2977 $2,000,000 $2,000,000 EMERGENCY 2977 $2,000,000 $2,000,000 TOTAL OFTOTAL MassDEP OF PRIORITY MassDEPPROJECTS PRIORITY PROJECTS TOTAL OF OF MassDEP MassDEP PRIORITY PRIORITY PROJECTS PROJECTS TOTAL (Count: 2) (Count: 2) (Count: 2) 2) (Count: PLANNING PROJECTS PLANNING PROJECTS PLANNINGApplicant PROJECTS Applicant

Applicant Applicant BROCKTON BROCKTON BROCKTON EASTHAMPTON EASTHAMPTON EASTHAMPTON EVERETT EVERETT EVERETT FALL RIVER FALL FALL RIVER RIVER HAVERHILL HAVERHILL HAVERHILL LAWRENCE LAWRENCE LAWRENCE MALDEN MALDEN MALDEN MANCHESTER-BY-THE-SEA MANCHESTER-BY-THE-SEA MANCHESTER-BY-THE-SEA NANTUCKET NANTUCKET NANTUCKET NEW BEDFORD NEW NEW BEDFORD BEDFORD NORWOOD NORWOOD NORWOOD REVERE REVERE REVERE

$7,000,000 $7,000,000 $7,000,000 $7,000,000

$7,000,000 $7,000,000 $7,000,000 $7,000,000

PLANNING PROJECTS

SRF ID ID Project Project SRF SRF SRF ID ID 3855 3855 3855 3912 3912 3912 3890 3890 3890 3925 3925 3925 3891 3891 3891 3892 3892 3892 3905 3905 3905 3893 3893 3893 3865 3865 3865 3857 3857 3857 3854 3854 3854 3909 3909 3909

Project Project Stormwater Management Plan Stormwater Stormwater Management Management Plan Plan IWRMP IWRMP IWRMP Storm Water/Sewer Evaluation Storm Storm Water/Sewer Water/Sewer Evaluation Evaluation Integrated Wastewater and Stormwater Plan Integrated Wastewater Integrated Wastewater and and Stormwater Stormwater Plan Plan Revised PH 11 CSO LCTP Revised PH 11 CSO LCTP Revised PH 11 CSO LCTP SSES and CMOM SSES and and CMOM CMOM SSES Stormwater Management Plan Stormwater Management Management Plan Plan Stormwater CWMP CWMP CWMP Stormwater Master Plan Stormwater Stormwater Master Master Plan Plan Integrated WW and SW plan Integrated WW and Integrated WW and SW SW plan plan SSES/CMOM/Stormwater Plan SSES/CMOM/Stormwater SSES/CMOM/Stormwater Plan Plan Illicit Connection Detection Program Illicit Connection Detection Illicit Connection Detection Program Program

Project CostCost 2014 2014IUP IUPCost Cost Project Project Project Cost Cost $400,000 $400,000 $400,000 $1,100,000 $1,100,000 $1,100,000 $500,000 $500,000 $500,000 $3,000,000 $3,000,000 $3,000,000 $1,000,000 $1,000,000 $1,000,000 $1,920,000 $1,920,000 $1,920,000 $500,000 $500,000 $500,000 $750,000 $750,000 $750,000 $350,000 $350,000 $350,000 $1,000,000 $1,000,000 $1,000,000 $500,000 $500,000 $500,000 $700,000 $700,000 $700,000

2014 2014 IUP IUP Cost Cost $400,000 $400,000 $400,000 $1,100,000 $1,100,000 $1,100,000 $500,000 $500,000 $500,000 $3,000,000 $3,000,000 $3,000,000 $1,000,000 $1,000,000 $1,000,000 $1,920,000 $1,920,000 $1,920,000 $500,000 $500,000 $500,000 $750,000 $750,000 $750,000 $350,000 $350,000 $350,000 $1,000,000 $1,000,000 $1,000,000 $500,000 $500,000 $500,000 $700,000 $700,000 $700,000

$1,200,000

$1,200,000

REVERE

3908 CWMP/CSMP Supplemental Plan

RUTLAND

3867 CWMP

$350,000

$350,000

UXBRIDGE

3868 CWMP

$350,000

$350,000

TOTAL OF PLANNING PROJECTS

TOTAL OF PLANNING PROJECTS (Count: 15) (Count: 15) TOTAL OF INTENDED USE PLAN

APRIL, 2014

$13,620,000

$13,620,000

$1,624,608,811 $415,607,893

TOTAL OF INTENDED USE PLAN

$13,620,000

$1,624,608,811

$13,620,000

$415,607,893

continued on page 23

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

DEP/SRF continued from page 21

M

$126.4 MILLION FOR DRINKING WATER SRF IN 2014

assachusetts DEP is pleased to present the Final 2014 Intended Use Plan (IUP), which details the projects, borrowers and amounts that will be financed through the Drinking Water State Revolving Fund (DWSRF) program. The DWSRF is a joint federal-state financing program that provides subsidized interest rate loans to protect public health by improving water supply, infrastructure systems, and protecting drinking water in the Commonwealth.

As noted in Table 1, Massachusetts is offering $126.4 million to finance drinking water projects across the Commonwealth. Approximately $88.5 million will fund 19 new projects and an additional $35.9 million will be allocated towards funding 7 previously approved multi-year projects. The Final IUP also contains $2 million to fund an emergency setaside account. No drinking water planning projects were submitted by municipalities this year.

Table 1 Drinking Water State Revolving Fund TABLE TABLE 1 1 Use Plan CY2014 Intended DRINKING WATER STATE REVOLVING

DRINKING WATER STATE REVOLVING Calendar Year 2014 DWSRF Final Intended Plan Calendar Year 2014 DWSRF Final Intended UseUse Plan

PROJECTS NEW

NEW PROJECTS Rating Applicant Rating Applicant

Rating Applicant

NEW PROJECTS

SRF SRF ID Project SRF ID ID Project Project

559.0WEBSTER WEBSTER (EJ)# 559.0 (EJ)#

3880 Station No.1 Improvements 3880 Station No.1 Improvements

554.0FALMOUTH FALMOUTH (EJ)# 554.0 (EJ)#

3878 Long Pond WTF 3878 Long Pond WTF

548.0 * SHIRLEY 548.0 * SHIRLEY

3881 Great Road Water Main Extension 3881 Great Road Water Main Extension

540.0MALDEN MALDEN 540.0 (EJ)(EJ)

2014

Project Cost 2014 Cost Project Cost 2014 IUPIUP Cost Project Cost IUP Cost $2,940,000 $2,940,000

$2,940,000 $2,940,000

$43,600,000 $43,600,000

$18,600,000 $18,600,000

$430,650 $430,650

$430,650 $430,650

3894 Water System Improvements 3894 Water System Improvements

$6,750,000 $6,750,000

$6,750,000 $6,750,000

540.0AUBURN AUBURN WATER DISTRICT 540.0 WATER DISTRICT

3931 West St. WTF Upgrade 3931 West St. WTF Upgrade

$2,730,000 $2,730,000

$2,730,000 $2,730,000

537.0HOLYOKE HOLYOKE 537.0 (EJ)(EJ)

3903 WTF upgrades 3903 WTF UV UV upgrades

$2,520,000 $2,520,000

$2,520,000 $2,520,000

525.0 * WESTPORT 525.0 * WESTPORT

3932 WTF for Products

By Products Removal 3932 NewNew WTF for By Removal

$500,000 $500,000

$500,000 $500,000

523.0CHATHAM CHATHAM (RE)# 523.0 (RE)#

3875 WTF 3875 NewNew WTF

$8,325,000 $8,325,000

$8,325,000 $8,325,000

522.0MARLBOROUGH MARLBOROUGH (EJ)# 522.0 (EJ)#

3885 Millham WTP Improvements 3885 Millham WTP Improvements

$6,000,300 $6,000,300

$6,000,300 $6,000,300

519.0NORTON NORTON 519.0 # #

3874 WTP 3874 NewNew WTP

$8,185,000 $8,185,000

$8,185,000 $8,185,000

515.0 * MANCHESTER 515.0 * MANCHESTER

3897 Water System Improvements 3897 Water System Improvements

$1,445,000 $1,445,000

$1,445,000 $1,445,000

439.0MALDEN MALDEN (EJ)# 439.0 (EJ)#

3896 Pump Station Rehab 3896 Pump Station Rehab

$2,025,000 $2,025,000

$2,025,000 $2,025,000

435.0CHICOPEE CHICOPEE 435.0 (EJ)(EJ)

3901 Transmission Main Redundancy 3901 Transmission Main Redundancy

$8,576,000 $8,576,000

$5,000,000 $5,000,000

435.0 BEDFORD (EJ)(EJ) 435.0NEW NEW BEDFORD

3870 Transmission Main Improvements 3870 Transmission Main Improvements

$10,300,000 $10,300,000

$5,000,000 $5,000,000

430.0 RIVER (EJ)(EJ) 430.0FALL FALL RIVER

3873 Water Main Improvements PH PH 14 14 3873 Water Main Improvements

$2,593,000 $2,593,000

$2,593,000 $2,593,000

421.0 WATER BOARD (EJ)# WEW Regional Water Treatment Plant 421.0TRI-TOWN TRI-TOWN WATER BOARD (EJ)#3872 3872 WEW Regional Water Treatment Plant

$46,000,000 $46,000,000

$1,000,000 $1,000,000

420.0 420.0MWRA MWRA

3898 Weston Aqueduct Supply Mains andand SecSec 36/101 3898 Weston Aqueduct Supply Mains 36/101

$22,145,590 $22,145,590

$10,000,000 $10,000,000

410.0 410.0UXBRIDGE UXBRIDGE

3879 Rt. Rt. 122122 Water Main Replacement 3879 Water Main Replacement

$3,270,000 $3,270,000

$3,270,000 $3,270,000

410.0 * PAXTON 410.0 * PAXTON

3933 Maple St. Elevated Tank 3933 Maple St. Elevated Tank

$1,370,000 $1,370,000

$1,210,000 $1,210,000

TOTAL OF OF NEW PROJECTS TOTAL NEW PROJECTS

TOTAL OF NEW PROJECTS (Count: 19) 19)19) (Count: (Count:

(Average Rating: 488.53) (Average Rating: 488.53) (Average Rating: 488.53)

$179,705,540

$88,523,950

$179,705,540 $88,523,950 $179,705,540 $88,523,950

* - Small System * - Small System

(EJ)(EJ) - Environmental Justice Communities - Environmental Justice Communities (RE) - Potential Renewable Energy Projects (RE) - Potential Renewable Energy Projects # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of aofGreen Project # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition a Green Project (http://water.epa.gov/aboutow/eparecovery/index.cfm) (http://water.epa.gov/aboutow/eparecovery/index.cfm)

APRIL, 2014

continued on page 25

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

23

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APRIL, 2014

DEP/SRF continued from page 23 MassDEP PRIORITY PRIORITY PROJECTS PROJECTS MassDEP Applicant Applicant

Applicant

MassDEP PRIORITY PROJECTS

SRF ID Project

SRF IDID Project SRF

EMERGENCY SRF SRF SET-A-SIDE SET-A-SIDE EMERGENCY

(Count: 1)

MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY STATUTORY PROJECTSCARRYOVER MULTI-YEAR MULTI-YEAR PROJECTS Applicant SRF IDID ProjectProject Applicant

SRF Applicant SRF ID Project

2014 IUP Cost

$2,000,000 $2,000,000

$2,000,000 $2,000,000

$2,000,000 $2,000,000

$2,000,000 $2,000,000

$2,000,000

$2,000,000

AND STATUTORY PROJECTS

Project CostCost 2014 2014IUP IUPCost Cost Project Project Cost 2014 IUP Cost

LAWRENCE (EJ)# (EJ)# LAWRENCE

3814 Water Water Main Main Replacement Replacement 3814

$21,895,000 $21,895,000

$11,895,000 $11,895,000

MWRA MWRA

3825 Wachusett Wachusett Aqueduct Aqueduct Pumping Pumping Station Station 3825

$47,955,000 $47,955,000

$1,000,000 $1,000,000

MWRA MWRA

3049 New New Connecting Connecting Mains Mains 3049

$47,880,847 $47,880,847

$1,000,000 $1,000,000

MWRA MWRA

3048 Lower Lower Hultman Hultman Aqueduct Aqueduct Rehabilitation Rehabilitation 3048

$53,112,388 $53,112,388

$1,000,000 $1,000,000

MWRA MWRA

1680 Southern Southern Spine Spine Distribution Distribution Mains Mains 1680

$65,685,888 $65,685,888

$2,000,000 $2,000,000

MWRA ## MWRA

3727 Low Low Service Service Storage Storage 3727

$8,500,000 $8,500,000

$1,000,000 $1,000,000

$32,000,000 $32,000,000

$18,000,000 $18,000,000

SPRINGFIELD WATER WATER AND AND 3756 South South Water Water Transmission Transmission Main Main Replacement Replacement SPRINGFIELD 3756 SEWER COMMISSION (EJ) SEWER COMMISSION (EJ) TOTAL OF OF MULTI-YEAR MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY STATUTORY PROJECTS PROJECTS TOTAL (Count: 7) 7) (Count:

Project Cost

Project CostCost 2014 2014 IUP IUPCost Cost Project

2978 2978

OF MassDEP PRIORITY PROJECTS TOTAL OF OFTOTAL MassDEP PRIORITY PROJECTS PROJECTS TOTAL MassDEP PRIORITY (Count: 1) 1) (Count:

$277,029,123 $35,895,000 $277,029,123 $35,895,000 $277,029,123 $35,895,000

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 7)

TOTAL OF INTENDED USE PLAN

$458,734,663 $126,418,950

D e dTOTAL i c aOF t eFINAL d tINTENDED o e x cUSE e ePLAN d i n g y o u r e x p e c t a$458,734,663 tions.

TOTAL OF FINAL INTENDED USE PLAN $458,734,663

$126,418,950 $126,418,950

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APRIL, 2014

23 Arthur Street Easthampton, MA 01027 413-527-6900

www.palmerpaving.com 43 Old Coldbrook Road Barre, MA 01005 413-283-8354

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

25

from Design to Delivery American Shoring is the Leader in High Quality, ModularTrench Shoring A complete line of heavy duty and light weight aluminum or steel trench shoring is available for all your needs.

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26

American Shoring of Massachusetts, Inc.

226 Cherry Street Shrewsbury, Mass 01545

508-842-2822 Fax: 508-842-2824

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

Massachusetts Water Resources Authority Massachusetts Resources Authority UpcomingWater Construction Awards Massachusetts Water Resources Authority Upcoming Construction Awards Upcoming Construction Awards

Estimated Contract Estimated Estimated Anticipated Amount Contract Contract Advertisement ($000s) Anticipated Amount Anticipated Amount Advertisement ($000s) Anticipated Est. Contract Advertisement ($000s)

FY14–FY16 Upcoming Construction Awards Project

Project Project

Project

FY14 Anticipated Awards FY14 Awards Northern Intermediate High Redundancy FY14 Anticipated Anticipated Awards & StorageIntermediate High Redundancy Northern Northern Intermediate High Redundancy & & Storage Storage DI Treatment Plant Asset Protection DI Treatment Plant Plant Asset Asset Protection Protection DI Treatment Carroll Water Plant Treatment DI Treatment Treatment AssetPlant Protection DI Plant Asset Protection DI Treatment Plant AssetPlant Protection Carroll Water Treatment Carroll Water Treatment Plant DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection DI DI Treatment Treatment Plant Plant Asset Asset Protection Protection FY15 Anticipated Awards Weston Aqueduct Supply Mains FY15 FY15 Anticipated Anticipated Awards Awards MWR003 Gate & Siphon Mains Weston Weston Aqueduct Aqueduct Supply Supply Mains Facility Asset Protection MWR003 MWR003 Gate Gate & & Siphon Siphon Long Term Redundancy Facility Asset Protection Facility Asset Protection Clinton Wastewater Treatment Plant Long Long Term Term Redundancy Redundancy DI Treatment Plant Asset Protection Clinton Clinton Wastewater Wastewater Treatment Treatment Plant Plant DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection Facility Asset Protection DI DI Treatment Treatment Plant Plant Asset Asset Protection Protection Facility Asset Protection Facility Asset Protection Facility Asset Protection Facility Asset Protection DI Treatment Asset Protection Facility Asset Plant Protection Facility Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection DI Treatment Treatment Plant Plant Asset Asset Protection Protection DI

FY16 Anticipated Awards Facility Asset Protection FY16 FY16 Anticipated Anticipated Awards Awards Wastewater Central Monitoring Facility Facility Asset Asset Protection Protection Facility Asset Protection Wastewater Wastewater Central Central Monitoring Monitoring DI Treatment Plant Asset Protection Facility Asset Facility Asset Protection Protection Cathodic ProtectionAsset Of Distribution DI DI Treatment Treatment Plant Plant Asset Protection Protection Mains Protection Of Distribution Cathodic Cathodic Protection Of Distribution Spot Pond Supply Mains Rehabilitation Mains Mains Central MonitoringMains System Spot Spot Pond Pond Supply Supply Mains Rehabilitation Rehabilitation Waterworks Facility Asset Protection Central Central Monitoring Monitoring System System Waterworks Facility Asset Protection Waterworks Facility Asset Protection Winsor Station Pipeline Improvements Waterworks Waterworks Facility Facility Asset Asset Protection Protection Quabbin Transmission System Winsor Station Pipeline Winsor Station Pipeline Improvements Improvements Northern Intermediate High Redundancy Quabbin Quabbin Transmission Transmission System System & StorageIntermediate High Redundancy Northern Northern Intermediate High Redundancy Waterworks Facility Asset Protection & & Storage Storage DI TreatmentFacility Plant Asset Protection Waterworks Waterworks Facility Asset Asset Protection Protection Residuals Asset Protection DI Treatment Plant Asset DI Treatment Plant Asset Protection Protection Alternative Energy Initiatives Residuals Residuals Asset Asset Protection Protection DI Treatment Plant Asset Protection Alternative Alternative Energy Energy Initiatives Initiatives Sudbury/Weston Aqued. Repairs DI DI Treatment Treatment Plant Plant Asset Asset Protection Protection Clinton Wastewater Treatment Plant Sudbury/Weston Sudbury/Weston Aqued.

Aqued. Repairs Repairs DI Treatment Plant Asset Protection Clinton Wastewater Treatment Clinton Wastewater Treatment Plant Plant DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection DI DI Treatment Treatment Plant Plant Asset Asset Protection Protection

Phase

Phase Phase Phase

West Street Pipeline - Reading West Pipeline -- Reading West Street Street Reading North Main Pipeline Pump Station & Winthrop Terminal Facility Butterfly Valve Replacement North Main Pump Station North Main Pump Station & & Winthrop Winthrop Terminal Terminal Facility Facility Cryogenics Chillers Replacement Butterfly Valve Replacement Butterfly Valve Replacement Carroll Plant StorageReplacement Tank Roof Drainage System Cryogenics Cryogenics Chillers Chillers Replacement Fuel System Modifications Carroll Plant Storage Carroll Plant Storage Tank Tank Roof Roof Drainage Drainage System System Thermal / Power Plant Boiler Control Replacement Fuel System Modifications Fuel System Modifications Digester Sludge Pump Replacement Phase 2 Thermal Thermal // Power Power Plant Plant Boiler Boiler Control Control Replacement Replacement Digester Sludge Pump Replacement Digester Sludge Pump Replacement Phase Phase 22

Advertisement Amount ($000) Out to bid Out Out to to bid bid Out to bid Out to bid Out to bid Apr-14 Out Out to to bid bid Dec-13 Apr-14 Apr-14 Apr-14 Dec-13 Dec-13 Apr-14 Apr-14 Apr-14 Apr-14

$2,100 $2,100 $2,100 $14,600 $14,600 $14,600 $2,200 $4,200 $2,200 $2,200 $3,000 $4,200 $4,200 $1,000 $3,000 $3,000 $4,659 $1,000 $1,000 $4,659 $4,659

Section 36/W11/S 9-All Valve Construction 2 (Gate & Controls Section 36/W11/S 36/W11/S 9-All Valve at MWR003) Section 9-All Valve DeLauri Pump2 Station Upgrades Construction (Gate & Controls at MWR003) MWR003) Construction 2 (Gate & Controls at Wachusett Aqueduct Pump Station DeLauri Pump Station Upgrades DeLauri Pump Station Upgrades Clinton Roofing Rehabilitation Wachusett Aqueduct Pump Station Station Wachusett Aqueduct Pump Gravity Thickener Rehabilitation Clinton Roofing Rehabilitation Clinton Roofing Rehabilitation Barge and Facility Replacement GravityBerth Thickener Rehabilitation Gravity Thickener Rehabilitation Alewife Brook Pump Station Rehabilitation Barge Berth and Facility Replacement Barge Berth and Facility Replacement Caruso PS Improvements Alewife Brook Pump Station Rehabilitation Alewife Brook Pump Station Rehabilitation Chelsea Screenhouse Upgrades Caruso PS Improvements Caruso PS Improvements Sodium Pipe Replacement Chelsea Hypo Screenhouse Upgrades Chelsea Screenhouse Upgrades Winthrop Terminal Facility Variable Frequency Drives Sodium Hypo Pipe Replacement Sodium Hypo Pipe Replacement Replacement Winthrop Winthrop Terminal Terminal Facility Facility Variable Variable Frequency Frequency Drives Drives Replacement Replacement

May-14 Jun-14 May-14 May-14 Jun-14 Jun-14 Jun-14 Jun-14 Jul-14 Jun-14 Jun-14 Jul-14 Jul-14 Sep-14 Jul-14 Jul-14 Nov-14 Sep-14 Sep-14 Nov-14 Nov-14 Nov-14 Nov-14 Apr-15 Nov-14 Nov-14 Apr-15 Apr-15 Apr-15 Apr-15

$8,860 $1,893 $8,860 $8,860 $420 $1,893 $1,893 $47,028 $420 $420 $525 $47,028 $47,028 $5,786 $525 $525 $2,265 $5,786 $5,786 $9,260 $2,265 $2,265 $2,429 $9,260 $9,260 $3,300 $2,429 $2,429 $7,986 $3,300 $3,300 $7,986 $7,986 $4,073 $4,073 $4,073

Prison Point Piping Rehabilitation Wastewater Redundant Communications Prison Prison Point Point Piping Piping Rehabilitation Rehabilitation Chelsea Headworks Upgrade Wastewater Redundant Communications Wastewater Redundant Communications North Main Pump Station Motor Control Center Phase 2 Chelsea Chelsea Headworks Headworks Upgrade Upgrade North Main Pump Station Motor Control Center North MainControl Pump Station Center Phase Phase 2 2 Corrosion ProgramMotor - TaskControl 1 Corrosion Control Program Task 1 Corrosion Control - Task 1 Con Sec 4 Webster Ave Program Bridge Pipe Rehab Quabbin PowerAve Communications & Security Sec 4 Webster Bridge Pipe Rehab Sec 4 Webster Ave Bridge Pipe Rehab Con Con Elevated Water Storage Tank Repainting Quabbin Quabbin Power Power Communications Communications & & Security Security Beacon Street Line Repair Repainting Elevated Elevated Water Water Storage Storage Tank Tank Repainting HatcheryStreet Pipeline - Repair Construction Beacon Line Beacon Street Line Repair Ware River Intake -Valve Replacement Hatchery Hatchery Pipeline Pipeline - Construction Construction Ware River Intake Valve Ware89River Valve Replacement Replacement Sec & 29Intake Redundancy Construction Phase 1 Sec 89 & 29 Redundancy Construction Sec 89Vault & 29Manhole Redundancy Construction Phase Phase 1 1 Meter Retrofits Fire Alarm System Replacement Meter Vault Manhole Retrofits Meter Vault Manhole Retrofits Residuals Facility Upgrade Fire Fire Alarm Alarm System System Replacement Replacement DI Wind Phase II Construction Residuals Residuals Facility Facility Upgrade Upgrade Sodium Bisulfite Tanks Rehabilitation DI DI Wind Wind Phase Phase II II Construction Construction Ash Street Sluice Tanks Gates Sodium Bisulfite Sodium Bisulfite Tanks Rehabilitation Rehabilitation Phosphorous Reduction Ash Ash Street Street Sluice Sluice Gates Gates Cryogenics Plant-Equip Replacement Phosphorous Phosphorous Reduction Reduction Expansion Joint Repair -Replacement Construction 3 Cryogenics Cryogenics Plant-Equip Plant-Equip Replacement Expansion Joint Repair Construction Expansion Joint Repair - Construction 3 3

May-15 $343 $700 May-15 $343 May-15 $343 $53,671 May-15 $700 May-15 $700 $6,086 May-15 $53,671 May-15 $53,671 $6,086 May-15 $6,086 May-15 $498 May-15 $498 $498 $1,500 May-15 May-15 May-15 $2,800 $1,500 May-15 $1,500 May-15 $5,000 $2,800 May-15 $2,800 $1,000 May-15 $5,000 May-15 $5,000 $2,834 May-15 $1,000 May-15 $1,000 $1,200 May-15 $2,834 May-15 $2,834 May-15 $1,200 May-15 $1,200 Jun-15 $21,980 Jun-15 $21,980 Jun-15 $21,980 Jul-15 $1,989 Oct-15 $16,000 Jul-15 $1,989 Jul-15 $1,989 Nov-15 $10,000 Oct-15 $16,000 Oct-15 $16,000 Nov-15 $2,500 $10,000 Nov-15 $10,000 $2,625 Nov-15 $2,500 Nov-15 $2,500 $1,000 Nov-15 $2,625 Nov-15 $2,625 Dec-15 $5,758 Nov-15 $1,000 Nov-15 $1,000 Feb-16 $5,300 Dec-15 $5,758 Dec-15 $5,758 Mar-16 $1,889 Feb-16 $5,300 Feb-16 $5,300 Mar-16 $1,889 continued on page 28 3/21/14 Mar-16 $1,889 3/21/14 3/21/14

APRIL, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

27

MWRA continued from page 27

MWRA Upcoming Contract Awards

d Butterfly Valve – North Main DeerReplacement Island Butterfly Valve on And Winthrop Terminal Facility Replacement

$2.5 million

North Main Pump Station And Winthrop Terminal Facility

Northern Intermediate High Redundancy & Redundancy Storage: & Storage: Northern Intermediate High West Street Pipeline West Street Pipeline - Reading Reading Out to bid • Out to Bid Es?mated • Cost: $2.1 m$2.1 illion million Cost:

• Out to Bid • Cost: $14.6 million

MWR003 Gate and Rindge Avenue Siphon Relief

Deer Island Cryogenics Chiller Replacement

ics Chiller Replacement • Out to Bid • Cost: $2.2 million

28

MWR003 Gate & Rindge Avenue Siphon Relief

• Last contract award under the CSO Control Plan!

• Last contract award under the • An?cipated Adver?sement: 2014 Plan

CSOJune Control • Es?mated Cost: $1.9 illion • mAnticipated Advertisement: June 2014 • Estimated Cost: $1.9 million

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 40

APRIL, 2014

Alewife Brook Pump Station Rehabilitat MWRA Upcoming Contract Awards

achusett AqueductWachusett Pump Station Aqueduct

Pump Station

• 2Anticipated Advertisement: to Proceed: April 014 June 2014 ed Cost: $45.6 million • Estimated cost: $47.0 million

Alewife PumpNovember Station2014 An?cipated Brook Adver?sement: Es?mated Rehabilitation Cost: $9.3 million

• Anticipated Advertisement: November 2014 • Estimated cost: $9.3 million

continued on page 31 25

Dave Pateuk / Owner Email: dave@northeastshoring.com Website: www.northeastshoring.com

• • • •

Any Size Trench Box; Standard & Custom Fully Stocked Sales & Rental Fleet The Best Source for Road Plate Rentals Two Trucks for FAST RELIABLE DELIVERY!

APRIL, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

29

Minichiello Bros.,/Scrap-It, Inc., Serves over 2500 customers a week and is one of New England's largest buyers, sellers and processors of scrap metal. For over 60 years our goal has remained the same - to provide the best prices in the industry along with the highest level customer service! Call Fred Rogers at 617-595-5505

Turn your metal into money today!

Minichiello Bros. Inc. /Scrap-It Inc.

Minichiello Bros.,/Scrap-­‐It, Inc. 2 Dexter Street Everett MA 02149 888-­‐SCRAP-­‐98

30

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

MWRA continued from page 29

MWRA Ongoing Projects

Cambridge Sewer Separation, Contract 8A: Carroll Treatment Plant Ultraviolet Fac P. Gioioso & Sons, Inc. Daniel O’Connell’s Sons, Inc.

Carroll Treatment Plant Ultraviolet • Unfiltered systems must have two primary disinfectant Facilities: C ryptosporidium achieve Daniel O’Connell’sinac?va?on Sons, Inc.

Cambridge Sewer Separation, • Installa?on of 2.5 miles of new Contract 8A: sewer a nd s torm d rain a nd 1Inc. .3 P. Gioioso & Sons, miles of smaller drain pipe over 68

• On-­‐track for ac?va?on on Ahave pril 1two , 2014 • Unfiltered systems must primary • disinfectants, Overall contract 74% omplete one ofcwhich must achieve inactivation • Cryptosporidium $32 million

• Installation of 2.5 miles of new sewer andacres storm drain and 1.3 miles of smaller • drain 70% complete acres pipe over 68 • • 70% complete $16.3 million • Cost: $16.3 million

• On-track for activation on April 1, 2014 • Overall contract 74% complete • Cost: $32 million

Quabbin Water Treatment Plant UV Daniel O’Connell’s Sons, Inc. 20

• Addi?on of ultraviolet disinfec?on Quabbin Water facili?es to meet new Treatment SDWA Plant UV regula?ons Daniel O’Connell’s Sons, Inc. • 72% complete • Addition of ultraviolet disinfection • facilities $5.6 million to meet new SDWA regulations

Cambridge Sewer Separation, Contract 8B:8B: Cambridge Sewer Separation, Contract Barletta Barletta Engineering Corp Engineering Corp.

• Installation of 3.9 miles of new sewer and

overand 83storm acres Installa?on of 3storm .9 miles odrain f new sewer drain over 83 acres 10% complete • 10% complete $30 million • Cost: $30 million

• 72% complete • Cost: $5.6 million

21

APRIL, 2014

continued on page 33

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

31

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MWRA continued from page 31 Deer Island – North Main Pump Station Watertown Section Pipeline Rehabilitation: J.F. White Contracting Co. J. D’Amico, Inc.

MWRA Ongoing Projects

Watertown Section Pipeline • Slip-­‐lining of 5,400 feet of watermain Rehabilitation: with 2J. 4-­‐inch HDPE pipe Inc. and D’Amico,

installa?on of 300 feet HDPE pipe by • Slip-lining 5,400 feet of watermain open-­‐cut of construc?on with 24-inch • $2.7 million HDPE pipe and installation of 300 feet HDPE pipe by open-cut construction • $2.7 million

Deer Island - North Main Pump • Replacing obsolete Station VFDs: variable frequency drives J. F. White Contracting Co. • 45% complete

• Replacing obsolete variable • $24.3 mdrives illion frequency • 45% complete • $24.3 million

DI Pipe & Fittings • PVC Pipe & Fittings Valves & Hydrants • HDPE Pipe & Fittings • Geotextiles • Brass Castings • Stormwater Chambers • Safety & Tools Water Main Taps • Hydrostatic Testing • Hydrant Repair Canton: 781-828-1350 • No. Harwich: 508-430-1696 • Worcester: 508-754-2027

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APRIL, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

33

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Many thanks to our clients, peers and friends whose comments contributed to our being awarded a first-tier national ranking in the Litigation-Construction category.

h i n c k l e y a l l e n . c om ALB AN Y

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34

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

Contract 09-309-001: This project consists of the replacement and rehabilitation of sewer and drain pipes in Back Bay, Dorchester, Hyde Park, Mattapan, and West Roxbury. Construction commenced in September 2010 and anticipated to be completed by February 2014. Capital reserved for this project totals $172,000.

S & D Replacement Associated with Water Mains: On streets planned to replace water pipe, the Commission will inspect the condition of the sewer and drain pipes. If they need to be repaired or replaced the Commission will add the work to the water main replacement contract. This work is intended to upgrade all Commission facilities in the street at the same time thus avoiding multiple contracts which disrupt the public. It is also less expensive to combine work into single contracts.

Monies budgeted for this project totals $9,000,000 for 2014-2016.

Boston Water and Sewer Commission Capital Improvement Program 2014-2016 Executive Summary MWRA COMBINED SEWER OVERFLOW PROJECTS

T

CSO

Reserved

Channel

Contract:

The

he Boston Channel Water andSewer SewerSeparation CommissionProject (“the Reserved Commission” or “BWSC”) is a public instrumenwill involve the separation of combined sewers tality, a body politic, corporate and a political sub076,078,079separate and 080andCSO areas divisioninofthe theBOS Commonwealth, apart fromin the City.

It wasBoston. created byThe the Massachusetts South construction Legislature of a new of the Acts in July 1977 in response to a “home rule” of the storm drain system will also include sewerage City. In August 1977, the ownership, operation and control improvements in thesewere CSO of the and City’swater watersystem sewer and storm drain systems transferred to the Commission. to the Commission areas.

Sewer and waterPrior system improvements assuming these responsibilities, retail water and sewer ser-in will not be eligible for MWRA funding vices in Boston were provided by the City of Boston's Deaccordance with(“DPW”). our MOU/FAA with the partment of Public Works MWRA. Designtheservices performed bymainTetra The Act authorizes Commission to operate, tain andTech construct improvements the sysRizzoall fornecessary the sewer separationtowork will tems, establish and collect rates and charges for its services be eligible for MWRA funding. Design services at aggressive East Secondrenewal St. Drain Manhole and replacement program, re(which are not subject to regulation by any other govern- K St.an sewerage andandwater system mental that body),involve and finance its operations improvements ducing unaccounted for water, encouraging conservathroughimprovements revenue collections of bonds willand notthe besale eligible for and suchnotes funding. Construction supervision be performed tion and participating in theservices Boston will Harbor pollution payableunder solely from the Commission’s revenues. abatement project.

The Commission is also committed a separate contract. Three-year funding totals 8,545,000. Construction commenced in to meeting or exceeding the requirements of all federal The Act further provides that revenue surpluses September 2012 and is to any be completed

by Decemberand 2015. state water and wastewater laws, regulations and earned by the commission in any Fiscal Year shall be used technical standards. to offset future rate increases or returned to the City. Since its inception, the Commission has generated a surplus in • To establish and administer a billing and collections each year of its operations and has credited the surplus to systems that is fair and efficient. The Commission the reduction of the next year’s rates. has worked to establish a rate structure that fully reflects its costs, fairly distributes the financial obligation The Act may be amended only by means of further concerning its customer base encourages water conser“home rule” petitions of the City enacted by the MassachuSewer setts Legislature, or by means of state legislation affecting vation. The metering, billing and collection process is63 water and sewer districts within the Commonwealth. key component of the Commission and the Commission is committed to maintaining its strong record in Discussion of Management that area.

Objectives and Accomplishments • To maintain a strong financial structure. The Commission consistently utilizes conservative financial proThe Commission was created to maintain and improve jection and budgeting assumptions, maintains adequate the long-term quality and reliability of water and sewer reserves and strikes a reasonable balance between debt services for all users in the City and to assure adequate funding and rate funding of capital expenses. funding for the Systems. The Commission is committed to three primary goals: The Enabling Act and the Commission’s General Rev• To maintain and improve the Water Distribution enue Bond Resolution, adopted December 6, 1984 (“the and Wastewater Collection Systems. The CommisResolution”) requires the Commission, on an annual basion is committed to a number of improvements to the sis, develop a three-year Capital Improvement Program continued on page 36 Water Distribution and Sewer Systems, implementing

APRIL, 2014

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35

Boston Water and Sewer continued from page 35 (“CIP”). The CIP outlines the schedule and implementation of the capital projects necessary to maintain and improve the water and sewer systems for the ensuing three-year period. Complying with the requirements of the Enabling Act and the Resolution, the Commission projected cost of the Commission’s Capital Improvement Program from Fiscal Years 2014 through 2016 totals approximately 207.4 million.

The overall objectives of the Commission 2014-2016 CIP are to ensure the delivery of high quality potable water for consumption and fire protection, as well as the efficient collection of sewage for transport and delivery to a treatment facility or for approved discharge. In addition, the CIP includes projects to improve overall efficiency of the Commission and to enhance the Commission’s ability to provide services to its customers.

Expenditures are divided into three categories: Water Distribution System projects; Sewer System projects; and Support projects. Water Distribution System projects account for $95.6 million, or 46.1% of the 2014-2016 CIP. Sewer System projects comprise $81.6 million, or 39.3% and Support projects total $30.2 million, or 14.6% of the expenditures outlined in the program.

Total capital expenditures of $94.6 million are outlined for 2014. Water Distribution projects comprise $42.1 million, or 44.5%. Sewer System projects account for $44.1 million or 46.6% and Support projects totaling $8.4 million consisting of the remaining 8.9% of the 2014 amount.

Tables 1 and 2 present the cash flow expenditures and funding sources for the Commission’s 2014-2016 CIP.

2014-2016 CIP Cash Flows Table 1 PROGRAM

2014

2015

2016

TOTAL

Water

$ 42,097,000 $ 36,023,000 $ 17,459,000

$ 95,579,000

Sewer

$ 44,133,000 $ 25,356,000 $ 12,076,000

$ 81,565,000

Support

$ 8,353,000 $ 10,028,000 $ 11,853,000

$ 30,234,000

TOTAL

$ 94,583,000 $ 71,407,000 $ 41,388,000

$ 207,378,000

NOTE: Although expenditures decrease from periods 2015 to 2016, it is anticipated that funding for 2016 will be equal or greater than funding presented in 2015. The decrease in 2016 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.

2014-2016 CIP Funding Sources Table 2 FUNDING SOURCE

2014

2015

2016

TOTAL

BWSC Bonds

$ 64,504,000 $ 46,603,000 $ 28,686,000

$139,793,000

Rate Revenue

$ 15,177,000 $ 17,279,000 $ 11,067,000

$ 43,523,000

Grants

$

$

0 $

$

MWRA Water Assistance

$ 6,742,000 $

5,663,000 $

835,000

$ 13,240,000

MWRA I/I Assistance

$ 8,160,000 $

1,862,000 $

800,000

$ 10,822,000

TOTAL

$ 94,583,000 $ 70,407,000 $ 41,388,000

$207,378,000

0

0

0

NOTE: Although expenditures decrease from periods 2015 to 2016, it is anticipated that funding for 2016 will be equal or greater than funding presented in 2015. The decrease in 2016 is primarily due to the CIP being a one-year cash flow, over a three-year budget period. continued on page 37

36

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APRIL, 2014

Boston Water and Sewer continued from page 36

Project Highlights

T

he overall objectives of the Commission’s CIP are to ensure the delivery of high quality potable water for consumption and fire protection and the efficient collection of sewage for transport and delivery to a treatment facility for approved discharge. In addition, the CIP includes projects to improve the overall efficiency of the Commission and to enhance the Commission’s ability to provide services to its customers. The projects included in this CIP are intended to accomplish these objectives in the most efficient and cost effective manner.

The Commission intends to enhance Boston’s water and sewer infrastructure with several targeted projects included in the 2014-2016 Capital Improvement Program.

Some of the major projects are listed below: • Replacement of Large Water Valves • Water Pipe Corrosion Study • Water Main Flushing Program • Water Main Replacement Program • Sewer and Drain Rehabilitation and Replacement in the North End

• Engineering Design Services for Sewer Separation in Roxbury • CCTV of Sewers and Storm Drains (Contamination Investigation) • CCTV of Sewers and Storm Drains (CMOM program) • Separation of Sewers in Roxbury • Sewer Separation of the A Street Area in South Boston • Separation of Sewers in the Reserved Channel Area of South Boston, in Dudley Square and Along Massachusetts Avenue • Sewer Model Improvements • Construct BMPs and Green Infrastructure in Various Location around Boston • Industrial Facility Stormwater Pollution Prevention Program • CSO Public Notification Program • Upgrade of MTUs and DCUs with Latest Technology continued on page 39

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The 2014-2016 cash flow projection for Increased Capacity projects is presented in Table 12. Expenditures total $5,152,000 for the three-year period. Monies allocated for 2014 total $4,967,000.

Boston Water and Sewer continued from page 37 The largest component of the Water Distribution System CIP is the program to replace water mains.

The replacement program replaces aged, undersized or structurally deteriorated pipe. The program also includes rehabilitation of pipe by structural lining.

In 2011, the Commission completed a 20 year Water Distribution Study, which analyzed the effectiveness and stability of the water system. Incorporating a progressive approach to understanding system’s needs, the study outlined a detailed Capital Improvement Program maintenance and improvement plan.

This study provided a multi-faceted methodology for strategic investments over the next twenty years.

As part of the Water Distribution Study all pipes in the BWSC system were placed in a ranking system through a computer model utilizing several factors including pipe age, material, soil conditions, break history and consequence of failure.

This system is used as a guide in the selection of pipes for replacement under the Capital Improvement Program. Pipes with the higher ranking are considered for replacement. Pipes are also selected within proximity to other selected pipe to create geographic based contracts. All streets are coordinated with City and State Paving Programs.

Using the latest technology solutions, we are identifying new areas where BWSC can make sustainable improvement to the quality of our environment and services.

The quantity of work to be accomplished each year is in accordance with the recommendations of the 2011 Water Distribution Study as well as the specific needs of the Commission and its customers.

This study recommended that the Commission undertake an average of 11 miles per year of replace-

ment and relining projects. The 2014-2016 CIP for the Water Distribution System continues programs for the replacement of water mains, the replacement of older or defective hydrants as necessary on all replacement projects, the replacement of water mains on new or Sewer reconstructed bridges and various design services,68 permits and paving fees associated with the capital funded projects.

Projects scheduled for initiation in 2014 will result in the replacement of approximately 11 miles of water mains.

Projects included in the Sewer System CIP include the rehabilitation or replacement of approximately 2.5 miles of deteriorated or collapsed sanitary sewers and storm drains along with the television inspection of 11 to 15 miles of sewer pipe. Also, included are drainage improvements in the replacement of faulty tidegates.

K St. 54 Inch RCP Drain

The objective of the Wastewater and Storm Drainage System Facilities Plan is to develop facility plans for the City’s sewer and storm drains that are aligned with the Commission’s long-term service goals and continued on page 40

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RATION

JUSTIFICATION

Boston Water and Sewer continued from page 39 program involves the replacement of combined sanitary and storm sewers supported by effective operations, maintenance, and one for sanitary sewage and one for storm water. The purpose of the engineering practices. ce the frequency and volume wet weather CSOproject discharges and ensure Criticalofelements of this include: h state and federal • permits.

Combined systems will be separated where it Assessment of the Commission’s Service Goals ive to do so. Sewer separation work most often involves converting the and other factors affecting long-term planning including: changing requirements, sanitary sewer and constructing a new stormregulatory drain. climate change and financial conditions ission’s sewer separation work hasuse increased considerably.

• Systematic of Risk-based tools:Beginning to governin 1, 1995 - June 30, 1996) the MWRA established its wholesale wastewater prioritization of investments in condition assessments, repairs andflow replacements ies based, in part, on total metered wastewater that must be treated • Integration of Business neededto Deer Plant. Separating sewers reduces the amount ofProcess: flow conveyed to sustain effective Capacity, Management, s wastewater system resulting in a reduction in its metered wastewater Operation and Maintenance (CMOM) Programs rges. for sanitary sewer collections systems and engineering programs has spent more than $286 million on sewer separation projects. Projects • Training and Education: to embrace the quality use of t of eliminating combined sewer (CSO) discharge, improving water new tools and business processes and to sustain aries and diverting storm-water from environmentally sensitive areas. knowledge of the system and its operations In addition to establishing a sustainable framereduced annual work for planning and management, the Wastewater llion gallons per or achievements of the Fort Point levard projects. e projects the served Channel

l and Morrissey essfully reduced over 12 million nnel project is charge of CSO in s completion in East Third Street and H Street Drain Installation Associated

and Storm Drainage Facilities Plan project includes a broad spectrum of data collection, engineering evaluation and tool development activities.

The CIP continues funding for the separation of combined sewers and for the reduction of infiltration and inflow into the sanitary system. Infiltration and inflow (“I/I”) is extraneous quantities of water, which enters the sanitary sewers and reduce the capacity of the system to transport sanitary sewage. Reduction of I/I also decreases the quantity of water transported to the Massachusetts Water Resource Authority (“MWRA”) wastewater treatment facilities, thereby reducing overall transportation costs, treatment costs and BWSC sewer assessments.

The Commission has executed agreements with the MWRA, which is under a court order decree to eliminate or substantially reduces combined sewer overflows. The MWRA has committed to provide sewer separation in Dorchester, the Stony Brook area of Jamaica Plain, the area of Boston known as the Bullfinch Triangle and the Reserved Channel area of South Boston, the Constitution Beach area of East Boston and the Fort Point Channel area of South Boston. The projects resulted in the installation of approximately two hundred thousand feet of new drain pipe and the replacement of old water pipe and defective sewer pipe. The final result substantially decreased the amount of combined sewer overflows into the Charles River, Neponset River and Boston Harbor. In addition the work greatly reduced the amount of drainage entering the Commission’s sewer system reducing payments to the MWRA. A complete description of the MWRA CSO program is in the 2014-2016 CIP, which is available at www.bwsc.org. continued on page 41

with Reserved Channel Separation

Darmody, Merlino & Co., LLP CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 70

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APRIL, 2014

Boston Water and Sewer continued from page 40

BWSC 2014-2015 CIP Upcoming Projects WATER MAIN REPLACEMENT

Sewer and Drain Projects North End I

8,985 Ft.

$4.0M

April

2014

Sewer and Drain R&R

4,480 Ft

$1.2M

July

2014

Large Conduit Rehab

$2.5M

March 2015

.25M

March 2015

City Proper

3,450 Ft

$2.0M

April 2014

City Proper

5,290 Ft

$3.6M

April 2014

Dorchester

12,500 Ft $2.4M

May 2014

CSO Outfall 065

Hyde Park/W. Roxbury

6,570 Ft

$1.2M

June 2014

Sewer Cleaning 4,000 Ft.

Roxbury

6,370 Ft

$1.4M

June 2014

E. Boston/Beacon Hill

9,265 Ft

$2.3M

July 2014

Citywide

Valves

$1.1M

Aug 2014

WATER MAIN REPLACEMENT Mattapan

7,350 Ft

$1.3M

Aug 2014

Jamaica Plain/Roslindale 7,120 Ft

$1.4M

Dec 2014

Roxbury

6,705 Ft

$1.9M

Jan

2015

Dorchester/Brighton

6,965 Ft

$1.5M

Feb

2015

City Proper

7,120 Ft

$3.0M

Feb

2015

West Roxbury

14,255 Ft $3.2M

Mar

2015

Fenway/Jamaica Plain

5,300 Ft

Mar

2015

$1.5M

Sewer and Drain Projects Sewer and Drain R&R

11,800 Ft

$3.3M

April 2015

North End II

1,150 Ft.

$1.0M

April 2015

Future Projects  Water Main Replacement continues  Sewer and Drain Replacement and Rehab  Major Cleaning and television inspection  BMP/LID Projects Citywide  Laying groundwork for Climate Adaptation

2014-­‐2016 Capital Improvement Plan is available @ WWW.BWSC.ORG

APRIL, 2014

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CANE held its Third Annual Trade Show prior to the March “Forecast” Dinner Meeting, offering a complimentary booth to each Construction Outlook magazine advertiser.

With such positive feedback from the last two years shows, this year 34 advertisers set up their tables and displays, during an extended social hour, at the Four Points

by Sheraton Hotel in Norwood, MA. Our members were extremely enthusiastic about showcasing their products and services, and networking with other members. Everyone walked away with something...new business contacts, promotional gifts, and the truly lucky won one of the great prizes donated by our trade show participants. The prizes included two Red Sox tickets courtesy of Taylor Oil Co.; three $100 Visa gift cards donated by HD Supply Waterworks; two Red Sox tickets from ATS Equipment, Inc.; a Golf Bag, from American Shoring, Inc.; a $100 Lowes gift card, from The Scituate Companies; a RocketBallz driver, from Rain for Rent-New England; a Kindle Fire HD, from Foley Carrier Services; two $100 Capital Grille gift cards and four Red Sox tickets, from Shea Concrete Products; and a $50 Lowes gift card, from Ocean State Oil. Construction Outlook advertisers know that name recognition, visibility, and credibility are essential to help grow and expand their businesses. Advertising in a trade

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publication offers a powerful punch in competitive economic times. In businesses where pro-active involvement is critically important, advertising in a trade specific publication is the best investment a company can make.

UCANE is providing its print advertisers with multiple ad exposures, at no additional cost. Their ads also appear in a full digital version of Construction Outlook on our website. Also on the website, their ad will be listed with a link to their website, and will be featured, on a rotating basis, in our monthly e-newsletter.

Our magazine advertisers make it possible for us to continue to publish our magazine which helps get our message out to not only our members, but also to every city and town, agency head, legislator, and non-members as well, in a most professional manner.

We ask our members to encourage their employees who may not receive a print copy of Construction Outlook to visit the UCANE website and read it online.

Our advertisers and Associate members are familiar with the day-to-day issues underground contractors face.

When doing business with a supplier that is a UCANE member, there is a good feeling knowing that they support our industry and our common goals. continued on page 44

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Trade Show continued from page 43

Thank You to All of Our Trade Show Participants ATS Equipment, Inc. Albanese D&S, Inc. Allied Recycling Center A merican Shoring, Inc. EJ Eastern Pipe Service, LLC Eastern States Insurance Agency, Inc. Ferguson Waterworks Foley Carrier Services, LLC HD Supply Waterworks A. H. Harris & Sons, Inc. Lorusso Heavy Equipment, LLC Mabey, Inc. North East Shoring Equipment, LLC NorthStar Insurance Services, Inc. Ocean State Oil E. J. Prescott, Inc.

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R ain For Rent – New England Read Custom Soils Rodman Ford Sales, Inc. Rogers & Gray Ins. Agency, Inc. Schmidt Equipment, Inc. The Scituate Companies Scrap-It, Inc. Shea Concrete Products Starkweather & Shepley Ins. Brokerage, Inc. Systems Support Corporation Taylor Oil Company Albert J. Tonry & Co., Inc. Travelers United Concrete Products, Inc. United Rentals Trench Safety C. N. Wood Company, Inc. Woodco Machinery, Inc.

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If your company is not currently a Construction Outlook advertiser…

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APRIL, 2014

Environmental Viewpoint Robin L. Main, Esq.

Rhiannon Campbell, Esq.

Hinckley Allen, LLP

EPA’s Climate Assessment Update to the National Stormwater Calculator Note: Robin L. Main is a Partner in Hinckley Allen LLP’s litigation group and co-chair of the firm’s environmental practice group. Rhiannon A. Campbell is an Associate in Hinckley Allen LLP’s litigation and environmental practice groups.

E

very year billions of gallons of polluted stormwater enter rivers, streams, and lakes, adversely effecting plant and animal life. Recognizing these harmful effects, the Environmental Protection Agency (“EPA”), as part of the President’s Climate Action Plan, released the National Stormwater Calculator (“SWC”) to assist developers, planners, and architects in reducing stormwater runoff from a property.

The SWC is a computer desktop application that estimates the annual amount of rainwater and associated runoff from specific sites anywhere in the United States. The SWC collects soil, topography, rainfall, and evaporation information from several national databases to create these estimates.

On January 30, 2014, the EPA released “Phase II” of the SWC, introducing a Climate Assessment update. With the update in place, the SWC now takes into account changes in seasonal precipitation levels, effects of high-intensity storms, and changes in evaporation rates when calculating stormwater runoff estimates.

In order to provide more accurate estimates, the SWC allows users to provide information about the site’s land cover. Moreover, the SWC allows users to select different types of stormwater control measures that might be implemented at a given site to determine the impact of those measures on storm-

APRIL, 2014

water runoff. Users can elect from the following control measures: disconnection, rain harvesting, green roofs, street planters, rain gardens, infiltration basins, and porous pavement.

The SWC will help you determine what stormwater control measures to implement to most effectively reduce stormwater runoff. Implementation of these control measures may have additional benefits for your project. Use of some of these measures will earn a project credits towards Leadership in Energy & Environmental Design (“LEED”) certification. LEED certification may earn the project tax benefits or rebates. Moreover, some municipalities offer separate economic incentives for stormwater control measures.

To learn more about the SWC or to download a copy visit http://www.epa. gov/nrmrl/wswrd/wq/models/swc/. n

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Hinckley Allen, LLP

Charles E. Schaub, Jr. Esq.

John Connelly

General Casualty Co. of Wisconsin v.

Five Star Building Corp.: Continuing the Trend Toward Recognizing Coverage for Defective Work Claims Note: I would like to acknowledge the assistance of my colleague, John Connelly, who prepared this article. John is an Associate at Hinckley Allen LLP’s Construction and Public Contracts Group.

Legal Corner’s September 2013 article discussed recent cases from the Connecticut Supreme Court and the Second Circuit Court of Appeals recognizing defective work as an “occurrence” under Commercial General Liability (CGL) Insurance Policies.1 Although the cases hailed from different jurisdictions, they appeared to signal a trend toward recognizing coverage for defective work claims that Massachusetts courts may very well follow – which would be good news for New England contractors.

This trend has now extended to federal courts in Massachusetts in a recent insurance coverage case in the United States District Court for the District of Massachusetts, General Casualty Company of Wisconsin v. Five Star Building Corporation, et al. (D. Mass. September 19, 2013). In General Casualty, the Court ruled that damage resulting from faulty workmanship was an insured “occurrence” under a CGL policy.

APRIL, 2014

Background General Casualty was a declaratory judgment action between an insurer and its insured, an HVAC contractor. The HVAC contractor had been hired

by The University of Massachusetts to upgrade the HVAC system on a portion of the University’s Science Center. As part of its work, the HVAC contractor made penetrations in the existing roof system to install supports for ductwork and other rooftop structures related to the HVAC work.

After making the penetrations, the HVAC contractor installed temporary patches that would remain until subcontractors installed the supports and continued on page 51

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APRIL, 2014

Legal Corner continued from page 49 permanent patches. While this work was being performed, a severe rainstorm caused some temporary patches to fail resulting in extensive water damage to the roofing insulation system, as well as the interior of the building.

The insurer agreed to provide coverage for most of the damage to the interior and contents of the building, but denied coverage for damage to the roofing insulation system. The insurer relied on two grounds to deny coverage: (1) that faulty work was not an “occurrence” under the policy and, (2) that the “Your Work” exclusion precluded coverage.

An “Occurrence” The CGL policy contained the typical definition of “occurrence,” i.e., “an accident, including continuous or repeated exposure to substantially the same harmful conditions.” The insurer argued that this definition did not include faulty workmanship.

The HVAC contractor countered that although faulty workmanship may not itself constitute an occurrence, the torrential rainstorm that led to the leaking was an occurrence, even if that leaking was caused in part by the allegedly faulty workmanship.

The Court adopted the HVAC contractor’s argu-

ment and ruled that the rain damage to the roofing system was an “occurrence” under the CGL policy.

The “Your Work” Exclusion The policy contained the standard coverage exclusions for damage to property on which the contractor is working (if the damage arises out of the contractor’s work) and damage to property that must be repaired or replaced because the contractor’s work was incorrectly performed on it. They precluded coverage for: • That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of your operations; or • That particular part of any property that must be restored, repaired, or replaced because your work was incorrectly performed on it.

These exclusions, which are known as the “your work” exclusions, are aimed at prohibiting coverage for faulty workmanship and design errors and omissions, save for injury to persons or damage to the property of third parties, and are often relied on by insurers in denying coverage in construction defect cases. continued on page 53

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Conclusion

Legal Corner continued from page 51 The court in the General Casualty case considered both of those exclusions and found that neither applied.

In rejecting the insurer’s argument, the court emphasized that the HVAC contractor’s work concerned replacing the HVAC system, and that the penetrations to the roof and installation of the temporary patches were only incidental to that HVAC work. According to the court, the damaged areas of the roof were not areas on which the HVAC contractor was “working directly or indirectly” such that coverage would be excluded under the first prong of the “Your Work” exclusion.

With respect to the second prong – that the damage was excluded because it was damage to that particular part of the property that must be restored, repaired, or replaced because the HVAC contractor’s work was incorrectly performed – the Court held that the insurer had failed to present conclusive evidence showing the HVAC contractor’s work was faulty or incorrectly performed. In other words, the presence of leaking rainwater alone did not establish the HVAC contractor’s negligence in installing the temporary patches.

General Casualty follows the growing national and regional trend (including in the recent Connecticut and Second Circuit cases) toward treating damages caused by potentially defective work as “occurrences entitled to coverage under the standard CGL policy. In fact, the majority of jurisdictions now accept faulty work as an “occurrence.” Accordingly, while the standard CGL policy contains several provisions limiting recovery for construction defect claims, an insured who carefully parses out the claim and the policy may be able to overcome these provisions and secure coverage. n See “Capstone and Scottsdale: Recent Cases Continue the Trend Toward Recognizing Coverage for Defective Work Claims”

by Scott McQuilkin (Construction Outlook September 2013).

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IN THIS ISSUE: • Is It Time to Trim Stocks?

• Supreme Court Bolsters Beneficiary Rights • Business Owners Get More Bang From Flex Plan Bucks

Smart Tax, Business & Planning Ide

Is It Time to Trim Stocks?

Is It Time to Trim Stocks?

concept Here, yo allocatio goals an actual al plan, you mix back Exam basic ass and 35% of a bull $40,000 of bonds. This would bring her to $260,000 in portfolio stocks (65%) $140,000 inStandard bonds (35%).

In 2013, theand benchmark & (75%) and $ Note that Megan will still have a substantial Poor’s 500 Index returned more than rebalance, M amount invested in stocks, so she will continue to profit 32%, andperform the average stock if stocks well. At domestic the same time, she will havestocks and b less exposure to a possible stock market reversal. would bring fund was up more than 31%, according The Megan Harris example is extremely to Morningstar.

Major domestic stocksimplified.(65%) and $ Rebalancing Act Today, many financial advisers advocate a portfolio indexes are at or near record Note tha Market timing may not be recommended, but market that’s diversified among multiple asset classes. Megan many financial advisers favor the concept of rebal- levels, as ofinternational this writing. the equities, nadir largesubstantial might hold andSince domestic ancing your portfolio. Here, you determine an asset company and small company stocks, high grade andso she will c of the financial crisis in early 2009, stocks allocation to suit your investment goals and your risk lower quality bonds, real estate securities, commodities enjoyed powerful five-year tolerance. If your actual allocation departs from the have and so on. Eachaasset class will have an run. allocation, andperform we plan, you’ll act to get your investment mix back on the periodic rebalancing canout keepof thestocks, mix on track.

Is it time to move have less ex chosen path. or at least trim your market reve Taxholdings?

Tactics Most Example 1: Megan Harris has a basic asset allocaadvise against trying One advantage of continual rebalancing is that The Meg tion of 65% stocks and 35% bonds. After a few years of commentators it time encourages investors to sell haveextremely si a bull market, Megan’s $400,000 portfolio is $300,000 to the market. There’s noafter way assets of appreciated and buy other assets that are currently in stocks (75%) and $100,000 (25%) in bonds. To reknowing if we’re at the top ofcontinued the market, financial ad on page 61 balance, Megan would sell $40,000 of stocks and buy as we were in 2000 and 2007, or if we’re that’s divers just beginning an 18-year bull run like classes. Meg “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 59 APRIL, 2014 the one we enjoyed from 1982 to the and domest 2000 peak. small comp

I

n 2013, the benchmark Standard & Poor’s 500 Index returned more than 32%, and the average domestic stock fund was up more than 31%, according to Morningstar. Major domestic stock market indexes are at or near record levels, as of this writing. Since the nadir of the financial crisis in early 2009, stocks have enjoyed a powerful five-year run.

Is it time to move out of stocks, or at least trim your holdings? Most commentators advise against trying to time the market. There’s no way of knowing if we’re at the top of the market, as we were in 2000 and 2007, or if we’re just beginning an 18-year bull run like the one we enjoyed from 1982 to the 2000 peak.

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Financial Management continued from page 59 out of favor. Long term, that can be a formula for successful investing. It’s also a formula for realizing taxable gains. Some astute planning can reduce the tax bill, though.

One approach is to rebalance by executing your asset sales in a tax-favored retirement plan such as a 401(k) or an IRA. Then, any gains on the sale won’t be taxed right away. By building up a substantial amount in such an account and holding a blend of asset classes in there, you’ll increase your ability to rebalance without triggering taxes.

Another tax reduction method is to sell assets from a large holding within your portfolio, acquired at different times. Specify the shares you’d like to sell, choosing those with the least tax impact.

When instructing her broker to make this sale, Megan specifies which shares to sell, choosing those that (a) have declined since her purchase or (b) have relatively small paper profits. Among the gainers, Megan focuses on the shares that have been held more than one year and, thus, qualify for the favorable tax rate on long- term capital gains.

Yet another way to reduce the tax on rebalancing gains is to build up a bank of capital losses by periodically selling assets that lose value after you buy them.

(See the January 2014 Financial Management article).

Such capital losses can offset taxable capital gains. continued on page 63

Example 2: As in our previous example, Megan Harris wants to rebalance her portfolio by selling $40,000 of stocks. She sells $15,000 of stock funds held inside her 401(k), avoiding a current tax bill, but Megan would like to sell another $25,000 of stocks in her taxable account.

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A

Supreme Court Bolsters Beneficiary Rights

2013 decision by the U.S. Supreme Court illustrates the importance of updating beneficiary forms regularly. If you don’t, your desired heirs can lose a valuable asset.

This case, Hillman vs. Maretta, had its genesis in 1996, when Warren Hillman married Judy Maretta. Warren was a federal employee, so he named Judy as the beneficiary of his group term life insurance policy. The couple was divorced after two years, and Warren subsequently married Jacqueline. Warren and Jacqueline were still married in 2008 when Warren died; that life insurance policy’s death benefit was nearly $125,000.

As it turned out, Warren had never

changed the beneficiary designation on the policy. Thus, Judy received the death benefit, and Jacqueline went to court to get the money from Judy.

State Versus Federal The case took place in the state of Virginia, which has passed a state law saying that a divorce or annulment revokes a beneficiary designation relating to death benefits. That sounds like it should have settled the matter, but Warren’s life insurance policy was created under the Federal Employees’ Government Life Insurance Act (FEGLIA), a federal law, and the U.S. Constitution states that federal law will trump state law when there’s a conflict.

Nevertheless, Jacqueline still had a card to play.

Virginia has another law saying, in essence, that if death benefits are turned over to a former spouse because of such a conflict, that former spouse is liable for the amount in question, payable to the person who otherwise would have collected. Thus, Jacqueline (Warren’s widow) sued Judy for the amount of the insurance proceeds.

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noted, so federal employees have an “unfettered freedom of choice in selecting a beneficiary and to continued on page 64

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Financial Management continued from page 63 ensure the proceeds actually belong to that beneficiary.” State law can’t overturn that federal law’s intent, the Court ruled.

Not every case will come down in favor of a former spouse. ERISA, a federal law covering retirement plans, gives a current spouse certain rights to death benefits from an employer’s retirement plan, unless that right has been formally waived. Nevertheless, beneficiary conflicts can be time consuming, expensive, and stressful, especially if large amounts are at stake. Regularly updating all beneficiary forms can spare your loved ones from fighting what might wind up being a losing battle. continued on page 65

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Financial Management continued from page 64

A

Business Owners Get More Bang From Flex Plan Bucks

lthough all the effects of the Afford- deductibles, copayments, dental treatments, eyeglasses, eye surgery, and prescription drugs. Such able Care Act (ACA) are still unclear, reimbursements are not considered taxable income. it’s likely that health insurance costs Thus, Harvey will pay those medical bills with pretax will continue to increase in the future. rather than after-tax dollars.

Business owners may require greater Health FSAs and the Affordable Care Act Under health plan contributions from participat- the ACA, there are limitations on an employer ofing employees. In addition, this health continued on page 66 care law already has made it more difficult for individuals to deduct medical outTHE DRISCOLL DIFFERENCE: lays: For most taxpayers, Your key to only expenses over 10% obtaining the of adjusted gross income (AGI) are tax deductible, expertise versus a 7.5% hurdle under needed to prior law. (The 7.5% rule meet your remains in place through bonding 2016 for individuals 65 and needs. older and their spouses.)

In this environment, business owners stand to serving major contractors for more “The entire surety bonding team at benefit substantially by After than 50 years, the Driscoll Agency truly Driscoll has the experience, expertise understands the unique risks, insurance requireand industry contacts to give us the best offering a health flexible ments and surety demands of the construction possible representation and service. industry.

In an industry as specialized as ours, spending account (health we wouldn’t consider letting any other Managing risk can be very difficult. Which is why agency handle this important need of it’s critical to obtain adequate and proper insurance FSA). These plans allow coverages. Our underwriting specialists will work our company.” – Satisfied Client with your best interests in mind when proposing employees to set aside up solutions to your insurance needs. to $2,500 per year that they To discover the Driscoll difference, contact When it’s time to navigate through the comTim Lyons, Bond Department Manager at plexities of surety bonding, you can rely on our can use to pay for health 781-421-2560 or tlyons@driscollagency.com. expertise and connections to get you aggressive representation and unbeatable access to care expenses with pretax industry decision-makers. dollars.

Example 1: XYZ Corp. offers a health FSA to its employees.

Harvey James, who works there, puts $2,400 into the plan at the beginning of the year. Each month, $200 will be withheld from Harvey’s paychecks, and he’ll owe no income tax on those amounts.

Going forward, Harvey can be reimbursed for his qualified medical expenses that are not covered by his health plan at XYZ. Possible examples include health insurance

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Financial Management continued from page 65 fering a health FSA to their employees. Standalone health FSAs can only be offered to provide limited scope dental and vision benefits. An employer can only offer a health FSA that provides more than limited scope dental and vision benefits to employees if the employer also offers group major medical health coverage to the employees.

Additionally, an employer can make contributions to an employee’s health FSA. However, under the ACA, the maximum employer contribution the plan can offer is $500 or up to a dollar-for-dollar match of the employee’s salary reduction contribution.

Ultimately, these additional new rules can affect whether an employer can offer a health FSA and the amount of any optional employer match.

Employer Benefits A health FSA’s benefits to participating employees are clear. What will the business owner receive in return? Chiefly, the same advantages that come from offering any desirable employee benefit.

Recruiting may be strengthened, employee retention might increase, and workers’ improved morale can make your company more productive.

There’s even a tax benefit for employers, too.

When Harvey James reduces his taxable income from, say, $75,000 to $72,600 by contributing $2,400 to a health FSA, he also reduces the amount subject to Social Security and Medicare withholding by $2,400. Similarly, XYZ Corp. won’t pay its share of Social Security or Medicare tax on that $2,400 going into the health FSA.

Counting the Costs However, drawbacks to offering an FSA to employees do exist. The plan, including reimbursements for eligible expenses, must be managed. Many companies save headaches by hiring a third-party administrator to handle a health FSA, but there will be a cost for such services.

In addition, companies offering health FSAs to employees should have enough cash to handle a large demand for reimbursement, especially early in the year.

Example 2: Kate Logan also works for XYZ and she chooses to contribute $1,800 to her health FSA at the beginning of the year: $150 a month, or $75 per each semimonthly paycheck. Just after her first contribution of the year, Kate submits paperwork for a $1,000 dental procedure. XYZ might not have trouble coming up with $1,000 for Kate, but there could be a problem if several employees seek large reimbursements after making small health FSA contributions.

Using It, Losing It Employers also should be sure that employees are well aware of all the implications of health FSA participation. For years, these plans have been “use it or lose it.” Any unused amounts would be forfeited at year end.

Example 3: Mark Nash participated in an FSA offered by XYZ several years ago. He contributed $2,000 but spent only $1,600 during the year. The unspent $400 went back to XYZ. continued on page 67

Trusted Advice Paired Plans • In most 401(k) and similar plans, an amount left by a participant who has not received benefits will automatically go to the surviving spouse.

• If a participant wishes to select a different beneficiary, the spouse must consent by signing a waiver.

• This waiver must be witnessed by a notary or a plan representative.

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Financial Management continued from page 66 In 2005, the rules changed. Now, if the FSA permits, participants have until mid-March of the following year to use up any excess. If XYZ had adopted this optional grace period, Mark Nash would have had an extra 21⁄2 months to spend that leftover $400 on qualified medical costs.

Yet another change occurred in late 2013—a $500 option. Under this provision, FSA plans can be amended to allow each employee a carryover of up to $500, from one year to the next. Plans with this $500 carryover provision cannot allow a grace period as well. If your company now has an FSA with this optional grace period, it will have to amend the FSA to eliminate the grace period in order to add the $500 carryover provision.

In addition to explaining all the rules on possible forfeitures, employers offering an FSA should be sure their employees know about a possible impact on Social Security benefits. As mentioned, FSA contributions aren’t subject to Social Security; those contributions aren’t included in official compensation, for Social Security purposes. Employees should know that reduced compensation today might reduce Social Security benefits tomorrow. Companies that spell out all the FSA implications to workers may reduce misunderstandings and future complaints.

Reprinted from CPA Client Bulletin. n

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E.H. Perkins Construction, Inc. & Subsidiaries P.O. Box 301, Wayland, MA 01778 (508) 358-6161 • (781) 890-6505

-PLANT LOCATIONSQUINN-PERKINS S & G CO. Burlington (781) 272-0200 PANDOLF-PERKINS CO. Sterling (978) 422-8812 • (800) 339-3389 KANE-PERKINS CO. Hudson (978) 562-3436 • (800) 287-3436 GRAVEL • SAND • STONE FILL AND LOAM BITUMINOUS CONCRETE (PAVING) READY-MIX CONCRETE PRECAST CONCRETE PRODUCTS

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Equal Opportunity/Affirmative Action Employer

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Advertisers’ Index ATS Equipment, Inc. ...........................................................42 Adler Tank Rentals...............................................................62 Albanese D&S, Inc...............................................................22 Allied Recycling Center.......................................................16 American Shoring, Inc.........................................................26 Aon Construction Services Group..........................................9 Boro Sand & Stone Corp..................................................... 60 Dennis K. Burke, Inc........................................................... 64 Concrete Systems, Inc..........................................................32 Dagle Electrical Construction, Corp....................................54 Darmody, Merlino & Co., LLP........................................... 40 DeSanctis Insurance Agency, Inc. .......................................11 Dig Safe System, Inc............................................................61 The Driscoll Agency ............................................................65 EJ..........................................................................................50 Eastern Insurance Group, LLC..............................................6 Eastern States Insurance Agency, Inc..................................67 T. L. Edwards, Inc................................................................39 Ferguson Waterworks...........................................................33 Foley Carrier Services, LLC................................................57 Geod Consulting, Inc............................................................67 L. Guerini Group, Inc...........................................................20 HD Supply Waterworks..........................................................2 A. H. Harris & Sons, Inc. ....................................................37 Hinckley Allen, LLP............................................................34 John Hoadley & Sons, Inc....................................................63 P. A. Landers, Inc................................................................ 66 Lawrence-Lynch Corp..........................................................51 Liddell Brothers Inc..............................................................38 Lorusso Corp........................................................................55 Lorusso Heavy Equipment, LLC........................................ 46 Mabey, Inc........................................................................... 60 Mass Broken Stone Company...............................................61 Milton CAT................................................................... 4 & 48 Norfolk Power Equipment, Inc.............................................13 North East Shoring Equipment, LLC...................................29 NorthStar Insurance Services, Inc...................................... 24 Ocean State Oil.......................................................................7 Our Outhouses, Inc...............................................................13 Palmer Paving Corporation..................................................25 E. H. Perkins Construction Co., Inc.....................................68 Podgurski Corp.....................................................................62 E. J. Prescott, Inc..............................................Ins. Front Cvr. Rain For Rent-New England.................................................56 Read Custom Soils .............................................................. 64 Rogers & Gray Insurance Agency, Inc.................................12 Schmidt Equipment, Inc.......................................... Back Cvr. The Scituate Companies.......................................................52 Scrap-It, Inc..........................................................................30 Shea Concrete Products........................................................10 Smith Print........................................................................... 60 Starkweather & Shepley Ins. Brokerage, Inc.......................53 Ti-SALES, Inc. ....................................................................57 Albert J. Tonry & Co., Inc....................................................20 Travelers................................................................................62 United Concrete Products, Inc. ............................................58 United Rentals Trench Safety.................................................8 C. N. Wood Co., Inc. ............................................................18 Woodco Machinery, Inc................................... Ins. Back Cvr.

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2014

PARTS & service

CUSTOMER SUPPORT AGREEMENTS

REMARKETING

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CARETRACK

YOU’VE GOT A LOT OF JOBS TO DO YOU CHOOSE A DEALER WHO SUPPORTS EVERY ONE.

Smart Works.

140 Wales Avenue Avon, MA 02322 508-584-8484

22 North Maple Street Woburn, MA 01801 781-935-3377

60 Shun Pike Johnston, RI 02919 401-942-9191

www.woodcomachinery.com

Volvo Construction Equipment 173-939 Woodco_UCANE directory_Multi_6x7.5_L6_sw.indd 1

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City life isn’t for everyone. But the new 135G and 245G Excavators couldn’t be more at home. . But the new 135G and 245G Excavators couldn’t be more at home. Their reduced-tail-swing configuration opens up a TCihtyeliifreriesnd’ut fcoer dev-etrayiol-nsew ing configuration opens up a wide range of possibilities, making congested wide range of possibilities, making congested jobsites and working around obstacles a welcomed challenge. Coupled with their EPA-certified jInotbersim iteTsiear n4 denwgionerks,isnhgorat-rtohuronwdloowb-esftfaorctlecosnatrowlse, lacnodmspeadciocuhsa, qllueinetgcea.bsC, othuepy’llel kdeewpiytohutwhaenirtinEgPtAo-scteayrtoinfitehde jobsite, despite how easy Itnhetyerairm e toTiloeard4uepnag ndingeest ,toshthoertn-etxh t roonw e. Clo onwta-cetfufo s trotdcaoy.ntrols, and spacious, quiet cabs, they’ll keep you wanting to stay on the jobsite, despite how easy they are to load up and get to the next one. Contact us today.

Contact us today!

Contact us today!

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