Construction Outlook April 2016 by Ucane

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

APRIL, 2016

Plymouth Force Main Problems Intensify UCANE Members Called on Again for 24/7 Emergency Services

• MWRA FY16-FY18 Construction Awards • BWSC CIP 2016-2018 E xecutive Summary • MassDOT Continues to Address Stormwater Run-Off

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APRIL, 2016

IN THIS ISSUE

OFFICERS President JOHN OUR

Robert B. Our Co., Inc.

President-Elect PAUL SCENNA

Albanese D&S, Inc.

Treasurer RICHARD PACELLA, JR. R. M. Pacella, Inc.

Secretary MARCELLA ALBANESE

Albanese Brothers, Inc.

BOARD OF DIRECTORS VINCENT BARLETTA

Barletta Heavy Division

JOHN BERKSZA

Eastern Insurance Group, LLC

NICK BIELLO

J. D’Amico, Inc.

TONY BORRELLI

Celco Construction Corp.

GERRY CARNEY, JR.

C. N. Wood Co., Inc.

KEVIN COLE

J. F. White Contracting Co.

BRIAN COONEY

3 President’s Message:

Everyone’s Falling in Love With the Word Infrastructure

7 Legislative Update:

• MWRA Looks to Tackle Aging Water Service Lines • Joint Rule 10 Day: Legislative Committees Issue Decisions on Initial Matters of Review • Baker-Polito Administration Announces $1.25 Million Grant to Support Connecticut River Water Quality Improvements • As Spring Arrives, Communities Start to Raise Water and Sewer Rates to Tackle Water Infrastructure Needs • MassDOT Continues to Address Stormwater Run-Off • Commonwealth Starting to Look More Closely at Primacy

20 UCANE’s March Dinner Meeting:

MassDEP, MWRA, and BWSC Agency Heads Discuss Upcoming Capital Projects

25 MWRA FY16-FY18 Upcoming and Ongoing Construction Awards 33 BWSC Capital Improvement Program 2016-2018 Executive Summary and Upcoming Projects 45 In Memoriam: Patrick J. Walsh, Jr., Walsh Corporation

46 Plymouth Force Main Problems Intensify

UCANE Members Called on Again for 24/7 Emergency Services

53 In Memoriam:

C. C. Construction, Inc.

Scott B. Lindquist, Water Line Supply LLC

JON D’ALLESSANDRO

55 The McCourt Foundation Gala 57 Massachusetts LLS Presents “Champions of Hope Gala” 59 Insurance Perspective:

D’Allessandro Corp.

GREG FEENEY

Feeney Bros. Excavation, LLC

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

MARCO GIOIOSO

P. Gioioso & Sons, Inc.

A. J. LORUSSO

Lorusso Heavy Equipment, LLC

AL MORTEO

FED. CORP.

JOSEPH PACELLA

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

PAUL A. UMBRO

Umbro & Sons Const. Corp.

CHRIS VALENTI

GVC Construction, Inc.

DAVID ZOPPO

R. Zoppo Corp.

PHIL JASSET

Honorary Board Member

ANNE KLAYMAN

Executive Director

Controlling Your Workers Compensation Costs

62 UCANE’s Fifth Annual Trade Show 67 UCANE’s 37th Annual Golf Classic 69 Financial Management: • • • • •

Deducting Sales Taxes IRA Charitable Donations Higher Education Tax Breaks Tax-Free Investment Gains Business Tax Benefits

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Magazine Designer: Sherri Klayman Construction Outlook Chairman: John Our Editorial Board: John Our, Paul Scenna, Richard Pacella, Jr., and Marcella Albanese 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; Email: 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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Everyone’s Falling in Love With the Word Infrastructure How many times in the last year have we heard, “Our country’s infrastructure is falling apart? We must invest in our country’s infrastructure. Building our country’s infrastructure will create millions of jobs. A modern infrastructure is the foundation for business and the economy to expand and collectively raise our standard of living.”

henever our elected officials or our municipal planners were using the term infrastructure it was assumed to have a specific definition. Over time the word infrastructure became synonymous with public works projects, such as the modernization of our country’s intrastate highway system in the 1950s and 1960s; and protecting our natural water resources from pollution through the Clean Water Act of the 1970s. On the local level, as populations grew and residents needs for basic services became a priority, each municipality created a department of public works (DPW) to manage and maintain these services. Starting in 1954 and continuing to the present time, some 62 years later, our Association has tried to educate the public, our elected officials, legislators, and generations of designers and engineers about our state’s and this nation’s infrastructure needs, specifically underground water and sewer systems. Although UCANE has rightly concentrated on underground infrastructure problems, we have also sounded the alarm about our roads and bridges. Case in point has been the recently accepted idea by many municipalities that before local roads and highways are repaved, our underground systems need to be evaluated and replaced so that APRIL, 2016

newly paved roads won‘t soon be dug-up to install new systems or replace outdated and/or corroded ones. The Merriam Webster dictionary still agrees with UCANE’s long held definition of infrastructure: “The basic equipment and structures (such as roads and bridges) that are needed for a country, region, or organization to function properly” and “the system of public works of a country, state, or region.” Our roads, bridges, water, and wastewater systems are reaching their life expectancy and are in dire need of increased and dedicated funding. With continued on page 5

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President’s Message continued from page 3 serious infrastructure problems like Flint Michigan hitting the national stage, and problems like the Plymouth MA force main making local news, most of the citizens are finally understanding the meaning and importance of “infrastructure.” In recent years, however, the definition seems to be expanding. Perhaps to take advantage of the general publics understanding of infrastructure, proponents of schools, libraries, police stations, and other municipal buildings are calling these projects “infrastructure.” Though certainly an important element of a functioning community, they have historically stood on their own when it comes to funding, and have not needed (nor probably wanted) to be termed infrastructure.

So a challenge to UCANE, environmentalists, government agencies, and other groups that promote true “infrastructure” projects, is to keep the traditional definition alive and not allow groups with other motives to confuse the general public by highjacking the word “infrastructure.” n

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Mark Molloy, Esq., Lynch Associates, Inc.

MWRA Looks to Tackle Aging Water Service Lines

he Massachusetts Water Resources Authority mately 5.6 percent of the 500,000 service lines within (MWRA) recently announced that it is launching the area the MWRA serves. Replacing a lead service a $100 million interest-free loan program to help line typically costs between $3,000 and $5,000. cities and towns cover the cost of replacing 28,000 agThis program was developed at the suggestion ing water service lines made with lead, that threaten to of the MWRA Advisory Board, which represents the contaminate drinking water in dozens of communities. interests of the cities and towns served by MWRA. MWRA already provides financial assistance to The new MWRA program will focus on service member communities through a $210 million zero-inlines that connect water mains below the street to terest, 10-year loan repayment program for member homes and businesses. Under the new initiative in communities to upgrade local water systems, primarMassachusetts, the MWRA would provide funding to ily water mains. The new program, which will be dedicities and towns for eligible lead service line replacecated solely to replacing lead service lines, may lead ment projects in the 47 communities it supplies. The to increased water rates in the future. communities would have 10 years at zero interest to pay back the MWRA. For more information about this MWRA program, please visit: http://www.mwra.state. In implementing their lead service line replacema.us/01news/2016/032116-serviceline-fundment projects, communities would be able to deing.html velop their own programs for replacing lead service lines. Officials said details of the program are still continued on page 9 being ironed out, but they expect it will launch fully within the coming months. MWRA officials say the MBO Precast Inc. water flowing from its reservoirs and through its water mains is vir4 Marion Drive • Carver, MA 02330 tually lead-free, but can be conT: 508-866-6900 • F: 508-866-5252 taminated after it leaves the main. www.MBOPrecast.com Officials said the new financing program will allow them to greatly Stone Strong Retaining Wall Systems accelerate progress on their yearslong replacement efforts and could Manholes / Catch Basins / Custom Structures also be a helpful head start should Septic Tanks / Leaching Products the Flint, Michigan crisis prompt regulatory changes that mandate water systems replace lead service lines. According to the press release announcing the new program, the MWRA estimates that about 28,000 buildings are connected to lead service lines, which equates to approxi-

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Legislative Update continued from page 7

Joint Rule 10 Day: Legislative Committees Issue Decisions on Initial Matters of Review

he Massachusetts legislature, beginning its turn into the final lap of the 2015-2016 legislative session, recently tackled the self-imposed deadline for reporting on legislation in its committee of initial review. Known as Joint Rule 10, the rule requires all committees of initial review to issue a favorable, unfavorable, or study order to legislation pending before the committees by the third Wednesday of March in the second year of session. Given the early session debate about the Joint Rules of the House and Senate, this session’s deadline impacted a higher percentage of legislation than in past years. In an effort to “catch-up” from the earlier delay, committees had more legislation still before them as the deadline approached. To that end, UCANE has closely followed, supported, or opposed a wide variety of legislative initiatives. While UCANE’s water infrastructure funding initiative (HB2516) was placed into a study order by the Joint Committee on Revenue, the Joint Committee on Telecommunications, Utilities and Energy issued

a favorable report on UCANE’s initiative (HB2850) to modernize the Commonwealth’s excavation laws. UCANE will continue to pursue a funding stream for water infrastructure and encourage the legislature to hold water infrastructure as a priority going forward. Of further interest to UCANE members, the following matters were placed into “study orders”, essentially ending their consideration for the remainder of the 2015-2016 session. (Please note the following items only represent a sampling of matters.) •

HB1657, An Act to amend Section 20C, Chapter 148 of the General Laws relative to liability for damages caused by blasting (Joint Committee on the Judiciary) (Increasing liability for any party engaged in blasting);

•

HB2723, An Act to promote responsible contracting on state construction projects (Joint Committee on State Administration) (Creating a potential unconstitutional statewide REO); continued on page 11

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Legislative Update continued from page 9 HB2788, An Act relative to honesty in bidding for public works (Joint Committee on State Administration) (Creating additional penalties, on top of those for perjury, in the event of a bid irregularity); • SB1625, An Act relative to debarment in public contracts (Joint Committee on State Administration) (Requiring automatic debarment for any procurement error); • SB1810, An Act to protect vulnerable road users by requiring certain vehicles to be equipped with side under-ride guards and blind spot mirrors (Joint Committee on Transportation) (Mandating the use of “side guards” on all intra- and interstate trucks) While these and other matters of interest have been defeated for the time being, UCANE remains vigilant on other pieces of legislation that received “favorable” reports that may directly or indirectly impact the construction industry. (Please note the following items only represent a sampling of matters.) • HB2735, An Act further defining fraud in public construction contracts (Joint Committee on State Administration) (Restructures the standard common law definition of “fraud”);

•

SB966, An Act to prevent wage theft and promote employer accountability (Joint Committee on Labor and Workforce Development) (Broad legislation that may inadvertently impact law-abiding employers);

•

SB1681, An Act relative to increasing transparency in public construction (Joint Committee on State Administration) (Making certain financial documents in the prequalification process public records);

•

SB970, An Act requiring recordkeeping at public construction worksites in order to protect first responders (Joint Committee on State Administration) (Broadly drafted legislation that may inadvertently impact contractors)

•

UCANE will continue to monitor and advocate “for” or “against” a variety of legislation that remains before the Massachusetts legislature. The end of formal sessions, where “controversial” matters are considered is July 31, 2016. The legislature continues its informal sessions until a new legislature is sworn in early in January 2017. For more information about any of these legislative matters, please visit: www.mass.gov/legis continued on page 13

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Legislative Update continued from page 11

Baker-Polito Administration Announces $1.25 Million Grant to Support Connecticut River Water Quality Improvements

s reported in a recent press release from the of local and federal funding, these organizations have Massachusetts Executive Office of Environreduced the number of CSOs discharging raw sewmental Affairs, the Baker-Polito Administraage into the Connecticut River from the original numtion awarded a $1.25 million grant to the Pioneer ber of 132 down to 65 CSOs, reducing the volume of Valley Planning Commission to provide assistance to CSO effluent discharges by about 50 percent. The the cities of Springfield, Chicopee, and Holyoke as state grant announced will support additional CSO they develop plans to reduce sewer overflows and elimination projects in the three municipalities. Boston Area improve water quality in the Connecticut River Wacontinued on page 15 Locations tershed. 2 Dexter Street According to the Pioneer ValEverett, MA 02149 ley Planning Commission, the Boston Area Boston Area Connecticut River Clean-up ComLocations Locations 431 Second Street mittee has been working for more Everett, MA 02149 than 20 years to eliminate water 2 Dexter Street 2 Dexter Street pollution from combined sewer Everett, MA 02149 Everett, MA 02149 overflows (CSOs) in the Connecticut River. This funding will be used 431 Second Street 431 Second Street to assist the local communities in Everett, MA 02149 Everett, MA 02149 completing high-priority CSO reBOSTON AREA LOCATIONS duction projects. 2 Dexter Street 431 Second Street Specific work supported by Everett, MA 02149 Everett, MA 02149 this grant includes: • Upgrades to the York Street Pump Station in Springfield and design of the Connecticut River Sewer Crossing CSO Project, both of which will reduce CSO volume by approximately 50 percent annually; • Redirecting outfall flows to a new abatement facility inMinichiello HolyBros./Scrap-It, Inc., Minichiello Bros./Scrap-It, Inc. oke that will reduce or eliminate Serves over 2500 customers a week and is one of New England’s largest customers a week and is one New England's largest buyers, up to 40 million gallons ofServes CSO over 2500 buyers, sellers, and processors of scrap metal. Forour overgoal 60 years our goal sellers and processors of scrap metal. For over 60 years has remained discharge per year; and remained the same - to in provide the best along prices in thetop industry along with the same - tohas provide the best prices the industry with notch top notch service! Fred Rogers at 617-595-5505 • Design of a sewer separation customer service! Callcustomer Fred Rogers at Call 617-595-5505 Minichiello Bros./Scrap-It, Inc., project that will substantially Minichiello Bros./Scrap-It, Inc., reduce CSOs from most of the Serves over 2500 customers a week and is one New England's largest buyers, Chicopee Center area and, sellers and processors of scrap metal. For overa60week years ourisgoal Serves over 2500 customers and onehas Newremained England's largest buyers combined with previously comthe same - to provide the best in theof industry along with notch sellers and prices processors scrap metal. Fortop over 60 years our goal has remain pleted CSO projects, eliminate customer service! the Callsame Fred -Rogers at 617-595-5505 to provide the best prices in the industry along with top notch nearly 80 percent of CSO discustomer service! Call Fred Rogers at 617-595-5505 charges annually. Over the last 15 years, the Pioneer Valley Planning CommisTurn your metal into money today! sion and the Connecticut River Turn your metal into money today! Minichiello Bros. Inc./Scrap-It Inc. Clean-up Committee have worked Minichiello Bros. Inc.,/Scrap-It Inc. to clean up the river. With the use

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Legislative Update continued from page 13

As Spring Arrives, Communities Start to Raise Water and Sewer Rates to Tackle Water Infrastructure Needs

ccording to the Wilmington Town Crier, water and sewer bills for Wilmington residents will see an approximate $5 increase per quarter for water and $3 increase per quarter for sewer. The rate increases were voted at a public hearing of the Wilmington Water & Sewer Commission with increased water rates of 8 percent and sewer rates by 3 percent. With the increases, the Wilmington rates remain in the lowto-mid range for average customer bills compared to neighboring communities. This is the first rate increase in eight years for water. In those years, the cost of producing safe drinking water has increased from the cost of materials and chemicals, to the cost of water purchased from the MWRA. Capital investments have also seen a corresponding cost increase in the past eight years. The town’s Five Year Capital Improvement Plan calls for more than $4.5 million in non-routine investments in the water infrastructure between FY17 and FY21. The improvements include replacement of the Nassau Avenue Water Storage Tank, which was built in the 1920s. This project is expected to

cost $3.4 million for design and construction. Additionally, Wilmington is scheduled to replace the Barrows Wellfield which was last replaced in 1991 and is one of the four active sources of water supply for the town. This project is estimated to cost $1.1 million. For the past five years, the town has utilized surplus revenue from prior years to supplement the annual budget and infrastructure investments. The rate increase will allow the town to absorb these future large non-routine project costs and stay on course with other necessary improvements. According to the Town of Wilmington, the last rate increase for Sewer was six years ago. The increase will support the MWRA assessment costs, the cost of treatment of sewer, and upcoming investments in the infrastructure. The Town is planning a large inflow and infiltration reduction effort which will remove extraneous flows from the system and reduce the town’s costs for transporting and treating these flows. The project is expected to be approximately $218,000 and to be funded by grants and zero-interest loans from the MWRA.

continued on page 17

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Legislative Update continued from page 15

MassDOT Continues to Address Stormwater Run-Off

s noted on the Massachusetts Department of Transportation’s blog, MassDOT continues to work to improve the water quality of rivers and streams across the Commonwealth, including the Charles River, by upgrading its stormwater management system. The MassDOT blog highlights the agency’s stormwater management project area abutting the Charles River. In noting the extensive effort that has been put into motion to improve the water quality of the Charles River, MassDOT notes that “an important part of this effort has been to install Best Management Practices including infiltration basins and swales and a wet pond along the Charles to provide stormwater treatment and reduce pollutants to the River. These practices manage both the quality and quantity of stormwater runoff by capturing most runoff events and mimicking natural ‘pre-development’ conditions.” The practices for the Charles River project

along the I-90 corridor, between Weston and Boston, include 23 infiltration basins, swales, and a wet pond. So far 16 basins have been installed and several are currently under construction. Plantings and seeding are being incorporated throughout the work zones to enhance the appearance of the installations. The infiltration systems are especially effective in treating stormwater because most soils have a high capability for capturing pollutants in addition to facilitating ground water recharge. The wet ponds work by attenuating stormwater, thereby allowing sediments and associated pollutants to settle before being conveyed and discharged. The project’s anticipated completion date is December 2016. For more information from MassDOT and their online blog, please visit: http://blog. mass.gov/transportation/. continued on page 19

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Legislative Update continued from page 17

Commonwealth Starting to Look More Closely at Primacy

he Boston Globe recently reported that the Commonwealth is beginning to assume many tasks currently performed by the United States Environmental Protection Agency (EPA). In a bid to join with a vast majority of other states, the Massachusetts Department of Environmental Protection (MassDEP), in an effort generally known as “primacy” will monitor water quality and enforce compliance. Massachusetts is one of just four states (New Hampshire, New Mexico, and Idaho are the others) that do not directly oversee how much pollution enters its rivers, estuaries, and other water bodies. The EPA has been responsible for the often controversial work, at its own expense, since Congress passed the landmark Clean Water Act in 1972. Under the new effort, the Baker-Polito Administration has argued that state control would potentially reduce costs for cities and towns, reduce bureaucracy, and make the permitting process more efficient, with regulators more attuned to the specific needs of municipalities.

According to a 2013 MassDEP report on the same issue, the estimated cost to assume these additional responsibilities would be between $7.5 million and $10 million a year and require between 50 and 100 new full-time MassDEP employees. The MassDEP has about 650 employees, down from 1,000 employees in 2000, as a result of budget cuts. The initiative, which has seen some detractors among environmental activists, has a significant proponent in the form of the Massachusetts Municipal Association (MMA). With potential stormwater regulations in the near future, the MMA believes that the MassDEP will be more attuned to local issues notwithstanding the ease of working with one regulatory agency instead of two. The approval process, as it is significant, takes several years, and mandates compliance with the requirements of the federal Clean Water Act. If the MassDEP fails to act in compliance with federal law, the EPA retains the right to ultimately enforce the law. n

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UCANE’s March Dinner Meeting

MassDEP, MWRA, and BWSC Agency Heads Discuss Upcoming Capital Projects

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Martin Suuberg

Fred Laskey

John Sullivan, P.E.

MassDEP Commissioner

MWRA Executive Director

BWSC Chief Engineer

there were no definition for the phrase “over the top,” UCANE’s recent annual forecast meeting and trade show would certainly provide all the elements to define it. The Sheraton Four Points Hotel in Norwood, MA was once again the location for UCANE’s 2016 Forecast Dinner Meeting and Trade Show. Over 325 members and guests attended, including key personnel from the MassDEP, the MWRA, the BWSC, and several municipal public works officials. Also attending were members from the Boston Society of Civil Engineers (BSCES), former longtime Medford Mayor Michael McGlynn, and many prospective members. The dinner was also an opportunity to introduce and welcome new members Ricciardi Construction, Inc., of Worcester, MA, Capital Strategic Solutions of Clinton, MA, and Energi Insurance Services of Peabody, MA, all of whom had representatives in attendance. The keynote speakers for the evening were MassDEP Commissioner Martin Suuberg, MWRA Executive Director Fred Laskey, and BWSC Chief Engineer John Sullivan. Each of these leaders provided the latest information on ongoing projects and, more importantly, which projects will be going out to bid in the upcoming fiscal year as well as additional projects in subsequent years. UCANE President John Our (Robert B. Our Co., Inc.) opened the meeting by welcoming the attendees and reminding them how important it is for members to get involved in UCANE and advocate on its behalf. UCANE Executive Director Anne Klayman then introduced the first keynote speaker of the evening, MassDEP Commissioner Martin Suuberg. The Commissioner spoke on several current issues that will have an effect on the water infrastructure industry. First and foremost, he spoke about the MassDEP Final 2016 Clean Water and Drinking Water Intended Use Plans (IUP), which had been released in late January at an event in Millbury, MA. The list shows an

APRIL, 2016

increase in authorized spending, with $414 million in projects authorized through the Clean Water State Revolving Fund (CWSRF) and $127 million in projects authorized through the Drinking Water State Revolving Fund (DWSRF). (MassDEP CY16 SRF project lists can be found in the February 2016 edition of Construction Outlook online at www.ucane.com.) Commissioner Suuberg also provided an update on the National Pollutant Discharge Elimination System (NPDES) permit program. Massachusetts is one of only three states that do not have “primacy” in implementing the NPDES program, which means that the U.S. EPA and not the MassDEP administers it. The Commissioner said that they are in the process of evaluating what will be necessary for MassDEP to take over the program, and he hopes to have a recommendation by the end of the year. Many municipalities will be required to do storm water projects in the coming years as a result of NPDES and the MS-4 permit program. The Commissioner closed by pledging to continue to partner with municipalities and UCANE to make sure that the Department is accessible and transparent. MWRA Executive Director Fred Laskey then updated members on the Capital Improvement Plan for the upcoming year. (See page 25 for the project list.) He noted that although the MWRA has now completed all of its court ordered projects, they still intend to have an aggressive capital plan focusing on asset management and creating redundancies. He outlined several pipeline plans for the coming year. Mr. Laskey also announced a $100 million lead pipeline replacement program. This program comes as Flint Michigan still deals with its ongoing lead issue. The program will award zero interest loans in order to replace the estimated 28,000 lead pipe connections in the 47 communities that the MWRA serves. BWSC Chief Engineer John Sullivan then gave an overview of the BWSC Capital Improvement Plan not continued on page 23

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Dinner Meeting continued from page 21 only for 2016 but also for 2017 and part of 2018. (See page 43 for the project list.) He also mentioned that they are compiling exhaustive video inventory of all of the city’s pipes in order to check their condition. He said they would continue to replace several miles of pipeline every year. He also recounted his recent experiences in Flint as a special advisor. All of the speakers were very complimentary of UCANE and its membership for their expertise installing complex systems in difficult and sometimes dangerous situations; and for their continued work and advocacy on behalf of the water infrastructure industry. In summary, the underground water and sewer project forecast for this year was very encouraging, however, the need for additional funding is still very real as this year’s Massachusetts state budget did not address the $21 billion drinking water and clean water funding gap identified by the Water Infrastructure Alliance. UCANE will continue to advocate for adequate SRF annual funding for near-term water and sewer projects and additional funding to close the $21 billion shortfall.

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UCANE would like to thank Commissioner Suuberg, Fred Laskey, and John Sullivan for taking the time out their hectic schedules to address our membership. We would also like to thank the 38 Construction Outlook advertisers who participated in our Fifth Annual Trade Show held before the Dinner Meeting. Participation for them was complimentary and again it was UCANE’s way of providing a venue by which our associate members meet directly with contractors and their key personnel who use their products and services. We had a record number of booths at this year’s show, and based upon the feedback from our members, the evening was a tremendous success! (Article on page 62.) n

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Massachusetts Water Resources Authority FY16–FY18 Upcoming Construction Awards Upcoming Construction Awards Estimated Estimated Bid Contract Project Phase Anticipated Contract Advertise Amount Advertisement Amount ment Date ($000s) Project Phase ($000) FY16 Anticipated Awards Facility Asset Protection SEH Redundancy & Storage Waterworks Facility Asset Protection NIH Redundancy & Storage Facility Asset Protection MetroWest Tunnel Clinton Wastewater Treatment Plant

Chelsea Creek Upgrade Construction Redundancy Pipeline Section III Contruction 1 Beacon Street Line Repair Section 89/29 Redundancy Construction Phase 1C Prison Point Piping Rehabilitation Shaft 5A/5 Surface Piping Cathodic Protection Clinton Roofing Rehabilitation

Jan-16 Mar-16 Apr-16 Apr-16 Apr-16 Apr-16 Apr-16

$62,021 $12,100 $1,452 $17,000 $406 $240 $540

FY17 Anticipated Awards Chestnut Hill Connecting Mains NIH Redundancy & Storage SEH Redundancy & Storage SEH Redundancy & Storage DI Treatment Plant Asset Protection Residuals Asset Protection

Chestnut Hill Gatehouse Repairs Section 89 & 29 Redundancy Construction Phase 2 Redundant Pipeline Section III Construction 3 Redundancy Pipeline Section III Construction 2 HVAC Equipment Replacement - Construction Residuals Facility Upgrade - Construction

May-16 May-16 Jun-16 Jun-16 Jun-16 Jul-16

$725 $18,230 $7,350 $10,786 $25,000 $6,100

Carroll Water Treatment Plant

Existing Facilities Modifications Interim Corrosion Control Facility Rehabilitation - CP7

Aug-16

$2,616

Carroll Water Treatment Plant DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection Facility Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection

Existing Facilities Modifications Cosgrove Boat Storage - CP7 Gravity Thickener Rehabilitation Barge Berth and Facility Replacement Interceptor Renewal-Construction 1 Reading Extension Sewer Expansion Joint Repair - Construction 3 Future Misc. VFD Replacements-Construction

Aug-16 Aug-16 Aug-16 Dec-16 Feb-17 Feb-17

$523 $14,100 $2,265 $4,267 $1,941 $5,334

Apr-17 Apr-17 Apr-17 Apr-17 Jun-17 Sep-17 Oct-17 Nov-17

$35,000 $1,030 $400 $443 $300 $9,093 $2,500 $16,000

Jan-18

$10,610

FY18 Anticipated Awards DI Treatment Plant Asset Protection Facility Asset Protection Waterworks Facility Asset Protection Sudbury/Weston Aqued. Repairs Waterworks Facility Asset Protection Winsor Station Pipeline Alternative Energy Initiatives DI Treatment Plant Asset Protection

Clarifier Rehabilitation 2 Construction DeLauri Pump Station Screens, Gates, Valves and Security Electrical Distribution Upgrade Southboro Sudbury Short-Term Repairs Cosgrove Flat Roof Replacement Shaft 2 & 12 Construction DI Wind Phase II Construction Fire Alarm System Replacement - Construction North Main Pump Station Motor Control Center Phase 2 DI Treatment Plant Asset Protection Construction DI Treatment Plant Asset Protection North Main Pump Station Harmonic Filter Replacement Wastewater Meter System-Equipment Construction DI Treatment Plant Asset Protection Combined Heat & Power Construction DI Treatment Plant Asset Protection South System Pump Station Lube System Replacement DI Treatment Plant Asset Protection Sodium Bisulfite & Hypochlorite Tanks Rehabilitation

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Feb-18 $3,000 Mar-18 $2,000 Mar-18 $83,000 Mar-18 $2,900 Mar-18 $10,593 continued on page 26

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25 3/31/16

MWRA continued from page 25

MWRA Upcoming Contract Awards Southern Extra High Redundant Pipeline

Northern Intermediate High Redundant Pipeline

• Contract 1 Bid Date: May 2016 Est. Contract Value: $12 million

• Phase 1C Bid Date: June 2016 Est. Contract Value: $17 million

• Contract 2 Bid Date: Sept. 2016 Est. Contract Value: $10 million

• Phase 2 Bid Date: July 2016 Est. Contract Value: $18 million

• Contract 3 Bid Date: Dec. 2016 Est. Contract Value: $7 million

Chelsea Creek Headworks Rehabilitation

Upcoming Deer Island Construction Awards • Total Budget: $763.9 million • FY14-18 Spending: $150.4 million

Chelsea Creek Headworks

Project

Adver,sement Value ($000s)

HVAC Equipment Replacement -‐ Construc7on

Jun-‐16

$25,000

Gravity Thickener Rehabilita7on

Aug-‐16

$14,100

Barge Berth and Facility Replacement

Aug-‐16

$2,265

Clariﬁer Rehabilita7on 2 Construc7on

Apr-‐17

$35,000

Fire Alarm System Replacement -‐ Construc7on

Nov-‐18

$16,000

North Main Pump Sta7on Motor Control Center Phase 2 Construc7on

Jun-‐18

$10,610

North Main Pump Sta7on Harmonic Filter Replacement

Feb-‐18

$3,000

Combined Heat & Power Construc7on

Mar-‐18

$83,000

South System Pump Sta7on Lube System Replacement

Mar-‐18

$2,900

Sodium Bisulﬁte & Hypochlorite Tanks Rehabilita7on

Mar-‐18

$10,593

• Bid Date: June 2016 • Est. Contract Value: $62 million Rehabilitation • Rehab of other two headworks to be bid together near the completion for the Chelsea contract

Bid Date: September 2015 Expansion Joint Repair -‐ Construc7on 3 Feb-‐17 $1,941 Estimated Contract Value: $55 million Future M isc. VFD Replacements-‐ Construc7on Feb-‐17 $5,334

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MWRA Upcoming Contract Awards New Zero-Interest Loan Program • • • •

$100 million added to the existing water loan program For full lead service line replacements Guidelines being drafted with Advisory Board Available as soon as possible

Estimated Lead Service Lines • There are an estimated 28,000 lead service lines within our member communities Peabody

5,687

Malden

5,205

Boston

3,567

Somerville

2,298

Medford

2,231

Winthrop

1,400

Quincy

1,310

Marlborough

1,238

Newton

1,161

Melrose

772

continued on page 29

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MWRA continued from page 27

MWRA Ongoing Projects Clinton Wastewater Treatment Plant Rehab: R. H. White Construction Co., Inc. • Rehab of anaerobic digesters and primary clarifiers and installation of new influent gates • 95% complete

Alewife Pump Station Rehabilitation: Barletta Engineering Corp. • Contract awarded September 2015

Northern Intermediate High, Section 110: Albanese D&S, Inc. • Phase 1 contract awarded November 2015

Upgrades to Chelsea Screenhouse: WES Construction Corp. • Contract awarded June 2015 • About 30% complete

continued on page 31

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MWRA continued from page 29

MWRA Ongoing Projects

Section 36, W11C and Clinton Treatment Plant 9A11-Arlington: Phosphorous Removal: Next at Clinton Treatment Plant:Shaft Phosphorous Removal RJV Construction Corp. Daniel O’Connell’s Sons • Contract awarded February 2016

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Boston Water and Sewer Commission Capital Improvement Program 2016-2018 Executive Summary

he Boston Water and Sewer Commission (“the Com-

2016‐2018 SEWER SYSTEM mission” or “BWSC”) is a body politic and corporate and political subdivision of the Commonwealth createdCAPITAL PROGRAM by Chapter 436 of the Acts of 1977 (“The Enabling

Act”). The Enabling Act abolished the water and sewer divisions within City of Bostonobjectives Public Workswill Department and The the sewer system be carried transferred the ownership, operation and control of the water, out through the continuation of the following sewer and storm drain systems to the Commission. As a public program renewal and replacement instrumentality, theactivities: Commission performs an essential public functionof insewer providing water and sewer services to the residents pipes, rehabilitation of sewers and of the City of Boston. The Enabling Act authorizes the Comdrains; separation of combined sewers, mission to construct and make improvements to the water and improvements that will result in an increase in sewer systems, establish and collect rates and charges for its servicessystem and financecapacity, its operationsan and improvements through infiltration/inflow revenuereduction collections and program the sale of bonds and notes including payable the solely from the Commission’s revenues. disconnection of downspouts, and a number The Act further provides that any revenue surplus respecial projects innecessary to improve the alized of by the Commission any fiscal year shall be used to offset future rate increases. efficiency and effectiveness of the sewer system.

Discussion of Management Objectives and Accomplishments

The Commission was created to maintain and improve the long-term quality and reliability of water and sewer services for all users in the City and to assure adequate funding for operation and maintenance of the Systems. For the purposes of this document, “Systems” include the water distribution system (including potable water and fire suppression facilities) and sewer system (including separate sanitary sewers, separate storm water drains and combined sewers) and the related appurtenances and fixtures. The Commission is committed to four primary goals: • To maintain and improve the Water Distribution and Wastewater Collection Systems. The Commission is committed to a number of improvements to the Water Distribution and Sewer Systems, including following an aggressive renewal and replacement program, reducing unaccounted for water, encouraging conservation and improving the environment. • To establish and administer a billing and collections system that is fair and efficient. The Commission has worked to establish a rate structure that fully reflects

APRIL, 2016

its costs, fairly distributes the financial obligation concerning its customer base and encourages water conservation. The metering, billing and collection process is a central focus of the Commission’s full management team and the Commission is committed to maintaining its strong record in that area. • To maintain a strong financial structure. The ComHanover St. between Cross St. and Richmond St. mission consistently employs conservative financial projections and budgeting assumptions, maintains adequate reserves and strikes a balance between debt funding and rate funding of capital expenses. • Sustaining Effectiveness of Investments/Compliance of Regulations. The Commission is committed to complying with all its regulatory obligations under federal and state laws, including the Safe Drinking Water Act54 (“SDWA”), Clean Water Act (“CWA”) and its National Pollutant Discharge Elimination System (“NPDES”) permitting obligations for both its stormwater system and combined sewer system. Compliance obligations also extend to meeting and exceeding the goals and requirements of the Boston Harbor decree and the Consent Decree executed in 2012 with the Environmental Protection Agency (“EPA”) related to stormwater discharges. The Enabling Act and the Commission’s General Revenue Bond Resolution, adopted December 6, 1984 (“the Resolution”) requires the Commission, on an annual basis, to develop a three-year Capital Improvement Program continued on page 35

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The coordination of the Commission’s capital programs with other infrastructure minimizes temporary construction related impacts to Boston’s residential neighb commercial centers. Marion St. Boston Water and Sewer continued from page 33 (“CIP”). Information generated by the Commission’s ongoing monitoring programs for the Systems and from various engineering data files, together with information concerning the development needs of the City, is used to compile a list of pipes, conduits, transmission mains and other System components to be either renewed, replaced, relocated or added to the Systems each year. 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 2016 through 2018 totals approximately, $202.7 million. On August 23, 2012, the Commission entered in a Consent Decree with the Environmental Protection Agency. Under the terms of the Consent Decree the Commission implemented a Capacity, Maintenance, Operations and Management (“CMOM”) self-assessment study in 2012 that analyzed all aspects of the Commission’s sanitary sewer and storm drainage facility operations and maintenance. The Commission finalized a CMOM Corrective Action Plan in July 2013 and developed a CMOM Program Document in May 2014. The CMOM Program synchronizes infrastructure maintenance and operations goals with long-term CIP planning to achieve CWA compliance with the Commission’s NPDES permit and ultimately improve water quality. As part of the CMOM Corrective Action Plan filed with the EPA, the Commission must increase its inspection and assessment of its sewer and drainage systems. The program represents progressive increases in the amount of pipe cleaned and televised with an end goal of completing approximately 10% of the system annually.

The overall objectives of the Commission 20162018 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 $86.5 million, or 42.7% of the 2016-2018 CIP. Sewer System projects comprise $90.3 million, or 44.5% and Support projects total $25.9 million, or 12.8% of the expenditures outlined in the program. Total capital expenditures of $92.2 million are outlined for 2016. Water Distribution projects comprise $40.3 million, or 43.7%. Sewer System projects account for $37.5 million, or 40.7% and Support projects totaling $14.4 million consisting of the remaining 15.6% of the 2016 amount. Tables 1 and 2 on the following page present the cash flow expenditures and funding sources for the Commission’s 2016-2018 CIP. continued on page 37

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Boston Water and Sewer continued from page 35

2016-2018 CIP Cash Flows Table 1 PROGRAM Water

2016

2017

2018

TOTAL

$ 40,310,000 $ 34,144,000 $ 11,996,000

$ 86,450,000

Sewer $ 37,446,000 $ 35,771,000 $ 17,094,000

$ 90,311,000

Support

$ 14,440,000 $

6,180,000 $ 5,330,000

$ 25,950,000

TOTAL

$ 92,196,000 $ 76,095,000 $ 34,420,000

$ 202,711,000

NOTE: Although expenditures decrease from periods 2017 to 2018, it is anticipated that funding for 2018 will be equal or greater than funding presented in 2017. The decrease in 2018 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.

2016-2018 CIP Funding Sources Table 2 FUNDING SOURCE

2016

2017

BWSC Bonds

$ 68,133,000

Rate Revenue

$ 15,003,000 $ 17,214,000 $ 11,328,000 $ 43,545,000

MWRA Water Assistance

$ 6,413,000 $

MWRA I/I Assistance

$ 47,168,000 $ 15,462,000

147,000 $

5,917,000 $ 2,099,000 796,000 $

TOTAL $130,763,000 $ 14,429,000

531,000

$ 1,474,000

5,000,000 $ 5,000,000

$ 12,500,000

$ 92,196,000 $ 76,095,000 $ 34,420,000

$202,711,000

MCWT $ 2,500,000 $ TOTAL

2018

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Boston Water and Sewer continued from page 37

Project Highlights

he Commission’s 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 2016-2018 Capital Improvement Program. Some of the major projects are listed below: • Update of Water Pipe Ranking Software • Water Main Replacement Program • Sewer and Drain Replacement Program • Sewer & Drain Rehabilitation & Replacement in the North End • Lining of the West Side Interceptor • Inspection and Rehabilitation of Steel Water Mains • Sewer Separation in Roxbury • City-wide Illegal Connections Investigations

• Upgrades to Union Park Pumping Station & Satellite Stations • Upgrade of Automatic Metering Infrastructure (AMI) • Projects affiliated with the Consent Decree; includes cleaning and televising ninety miles of sewer and drains

Projects Associated with the Consent Decree

here are several projects that the Commission is performing and planning to undertake to fulfill and exceed recommendations of the Environmental Protection Agency (“EPA”) under the Consent Decree. The following projects will support the Commission’s goal of compliance with the Consent Decree and improved water quality discharges and the environment:

Consent Decree • Model Improvements • Interactive Training Tool • CCTV of Sewers and Storm Drains (Contamination Investigation) continued on page 39

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2018 expenditures are $7,045,000. Monies allocated for 2016 total $5,425,000.

Water, Sewer & Drain Replacement on Hanover St. between Commercial St. and Charter St.

Boston Water and Sewer continued from page 38 • Cleaning and Inspections of Sewers and Storm Drains (CMOM-Capacity Management Operations and Maintenance) • Construct Best Management Practices & Green Infrastructure Central Square in East Boston • Construct BMPs & Green Infrastructure at City Hall Plaza • Construct BMPs & Green Infrastructure at Beacon St. & Park Dr. • Industrial Facility Stormwater Prevention Program • Citywide Illegal Connection Investigation Program Phase III (Contract 11-206-009)

Water Quality Improvements • • • • • •

Fort Point Channel Water Quality Assessment Fort Point Channel Implementation of Recommendations Augment Drain Model to Characterize Water Quality Wastewater/Drainage Facilities Plan Owner Correction of Illegal Connections Separation of Sewer House Laterals (Contract 14-309007)

• Design of Constructed Wetland in Stormwater Tributary Area • Urban Runoff Water Quality Evaluation • Constructed Wetland in Stormwater Tributary Area • Green Infrastructure Low Impact Development Area A • Green Infrastructure Low Impact Development Area B • Green Infrastructure Low Impact Development Area C • Stormwater Fee Evaluation • Constructed Rain Gardens • Design of Constructed Rain Gardens Note: Full description and forecasted budgets of individual projects is available in the Sewer section. continued on page 41

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Boston Water and Sewer continued from page 39

he Commission completed its Wastewater and Storm Drainage System Facilities Plan in 2015. A major objective of the Wastewater and Storm Drainage System Facilities Plan was to develop facility plans for the operation of the Commission’s sewer and storm drains that are aligned with the Commission’s primary service goals and supported by effective operations, maintenance, and engineering practices. Critical elements of this Plan include: • Assessment of the Commission’s Service Goals and other factors affecting long-term planning including changing regulatory requirements, climate change and financial conditions • Systematic use of risk-based tools to govern prioritization of investments in condition assessments, repairs and replacements • Integration of Business Processes needed to sustain effective Capacity, Management, Operation and Maintenance (CMOM) Programs for sanitary sewer collections systems and engineering programs • Training and Education to embrace the use of new tools and business processes and to sustain knowledge of the system and its operations In addition to establishing a sustainable framework for planning and management, the Wastewater and Storm Drainage Facilities Plan project includes a broad spectrum of data collection, engineering evaluation and tool development activities. Projects associated with the Plan in the Sewer System CIP include the rehabilitation or replacement of approximately 4.7 miles of deteriorated or collapsed sanitary sewers and storm drains and the television inspection of approximately 90 miles of sewer

pipe. Also included are drainage improvements and the replacement of faulty tide-gates. 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 reduces 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’s sewer assessments. Note: The full description and forecasted budgets of individual projects is available in the Sewer section of the complete 2016-2018 CIP at www.bwsc.org. continued on page 43

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Boston Water and Sewer continued from page 41

BWSC 2016-2017 CIP Upcoming Projects WATER MAIN REPLACEMENT

WATER MAIN REPLACEMENT

East Boston

9,770 Ft

$4.8M

April 2016

Hyde Park/Roslindale

7,900 Ft

$2.0M

Sept 2016

Roxbury/Mattapan

4,500 Ft

$2.0M

May 2016

South End

9,800 Ft

$3.0M

Oct

2016

Fenway/Jamaica Plain

5,300 Ft

$4.3M

June 2016

East Boston

6,225 Ft

$2.5M

Jan

2017

South End/Dorchester

5,520 Ft

$2.1M

Nov 2016

Fenway/Kenmore

3,775 Ft

$3.0M

July 2016

Mattapan

6,190 Ft

$3.3M

June 2016

Dorchester Brighton/Dorchester Brighton/Charlestown

8,800 Ft $2.5M 7,000 Ft $1.7M 11,160 Ft $3.5M

Aug 2016 Aug 2016 Sept 2016

SEWER AND DRAIN PROJECTS Upper Roxbury 8,710 Ft Separation

$5.0M

April 2016

North End Phase 2

3,000 Ft

$6.6M

May

Sewer and Drain R&R

13,000 Ft

$7.4M

Aug

2016

Sewer and Drain R&R

8,625 Ft

$2.5M

July

2016

WATER MAIN STRUCTURAL LINING City Proper

1,520 Ft

$1.7M

Dec 2016

Roxbury

7,720 Ft

$1.8M

Dec

2016

Hyde Park/Mattapan

7,130 Ft

$2.0M

March 2017

Fenway/Kenmore

7,535 Ft

$2.7M

March 2017

Back Bay/City Proper

4,625 Ft

$2.0M

April 2017

SEWER AND DRAIN PROJECTS Sewer and Drain Lining

11,435 Ft

$1.9M

Oct 2016

Sewer and Drain R&R

11,810 Ft

$3.5M

Nov 2016

$.2M

Dec 2016

Installation of Tidegates 5 Tidegates

FUTURE PROJECTS }  Water Main Replacement continues }  Sewer and Drain Replacement and Rehab }  Major Cleaning and television inspection }  BMP/LID Projects Citywide

◦  Other city agencies – BRA, Parks, DOT, Schools

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I n M emoriam

Patrick J. Walsh, Jr. Walsh Corporation

ith great sorrow, we mourn the loss of UCANE member and friend Patrick J. Walsh, Jr., of Canton, who passed away unexpectedly on March 22, 2016 at the age of 48 at the Beth Israel Deaconess Medical Center in Boston. Pat was the beloved husband of Lisa M. (Koslowsky), loving and adored father of Patrick J. III, and Michaela Walsh; cherished son of Patrick and Nora Walsh of Canton; brother of Timothy Walsh and his wife Paula of Canton, Robin M. Walsh of Walpole, and Joanne B. Walsh DeRossette of Canton; and son-in-law of Joseph and Margaret Koslowsky of Belmont. He is survived by many nieces, nephews, cousins, family members, and loving

friends all of whom benefited from his devotion and loyalty. Pat was born in Boston, raised in Canton, and graduated from Blue Hills Regional High School. He was the founder and owner of Walsh Corporation of Boston. Pat and his company specialized in water and sewer installations and site work, which they performed for some of the largest developers in the City. Pat was known as a hard worker and a generous person to his many friends in the Boston Construction community. The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathies and condolences to the Walsh family. n

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Plymouth Force Main Problems Intensify

UCANE Members Called on Again for 24/7 Emergency Services

This article is a follow up to the cover story appearing in the February 2016 issue of Construction Outlook magazine. In the week before Christmas, a catastrophic sewer break occurred in a 30-inch force main in the town of Plymouth, Massachusetts. Our story lauded the combined efforts, ingenuity, and quick action of the Plymouth DPW, Veolia North America, and a host of UCANE members as they teamed up to avert a potential environmental disaster and return the sewer system to (temporary) service in record time. Little did anyone know that those early efforts were only the tip of the iceberg.

C. Brito crews face harsh winter conditions when they returned to extend the bypass

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APRIL, 2016

Crews worked 24/7 on the bypass line

Plymouth Force Main Failure Expands

y mid January 2016, the 24-hour emergency workdays created by the original December sewer break were over. The blowout in the 30-inch force main had been repaired with an impressive display of equipment and manpower provided by UCANE members C. Brito and Godwin Pumps. An array of line stops, tapping sleeves and valves, and bypass piping had been installed under adverse winter conditions; and the Water Street Pump Station was back in operation. About a mile of the old force main was still being bypassed because there was evidence during the repair that this section of the pipe might have substantial corrosion issues. The bypass would give the town and the consultant, Environmental Partners Group, Inc., extra time to further investigate the condition of the force main. As multiple test pits were being excavated along the entire line, UCANE member, National Water Main Cleaning Co., was brought on-board to begin the not so pleasant job of cleaning sludge and debris along the last mile of the force main. “Early observances and reports along the line were not good,” said Plymouth DPW Director Jon Beder. “The more we saw, the more it seemed like we were on borrowed time with this 30-inch pipe.” Beder’s words turned prophetic when on January 27, less than two weeks after initial repairs were completed, a second blowout occurred and more sewage was flowing above ground. It was déjà vu. State and Federal

APRIL, 2016

Agencies were notified and another 10,000 feet of bypass piping, line stop and tapping sleeves, and valves were immediately ordered. Veolia resumed the septic truck brigade with 12 septic pumpers hauling 24 hours a day between the pump station and the treatment plant. Meanwhile, crews from C. Brito and Godwin Pumps resumed their emergency 24-hour shifts. This second bypass was more complicated than the first, as it involved more residential properties, driveway crossings, and multiple road crossings. UCANE member, United Rentals Trench Safety, was called in to supplement the shoring boxes and the steel plates that were still in-place from the first repair. “We were able to deploy multiple trucks loaded with boxes and plates within the hour after receiving a call,” said Jim Couturier, United Rentals District Manager. “Because we have one of the largest in-house inventories in New England, we can respond 24/7.” As the work site grew, it was becoming evident to the town’s consultant, Environmental Partners, that the permanent fix for the force main problem was going to be extensive. “As fast as we got field information in, we analyzed it. We had a team of engineers in our office working on multiple design options,” said Project Manager, Ziad Kary. “The project was growing in front of our eyes.” continued on page 48

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Plymouth continued from page 47

Bypass the Entire 4.5-Mile Force Main and Take the Pump Station Off Line

o sooner had the second break been repaired when a third break occurred less than 24 hours later, this time about a mile outside of the Water Street Pump Station. A decision was made at that point by the town of Plymouth to bypass the entire length of the 30-inch force main. This meant a total of 4.5 miles of twin 18-inch HDPE (50,000 feet) would be needed. It became apparent that the temporary repairs and bypass efforts were quickly becoming one of the most extensive sewer repairs in recent memory. The entire month of February saw as many as five to eight crews working at the same time along the bypass route. Brito’s crews buried pipe below driveways, across busy intersections, cleared trees, and created access roads along the route while Godwin Pumps crews fused the 18-inch HDPE pipe and fittings as fast as trucks delivered it. UCANE member, Scituate Concrete Products Corp., was called on to supply hundreds of precast jersey barriers that were needed to protect the bypass piping. All the while as many as five National Water Main crews were cleaning and videotaping the interior of the old pipeline under the direction of Environmental Partners. “Brito crews opened up multiple access points along the force main, and we brought in our maximum duty cleaning rigs to deal with the heavy sludge,” said National Water Main President Dennis Sullivan. “This is one of the toughest cleaning jobs we’ve seen in a while. I’ve got our best people working

six days a week to meet the engineer’s schedule.” In late February the most intense piece of work was occurring at the Water Street Pump Station. The station was being taken off line so that the entire 30-inch force main could be examined and possibly replaced. An electrical subcontractor was brought in to establish temporary three-phase power along with large control cabinets outside the station. “This is when I think we really impressed the town and the engineer with our capabilities,” said Tom Malone, Godwin Pumps General Manager. “We brought in three 150HP high pressure inline electric pumps complete with VFD units from our inventory. We also furnished all the fittings, a dozen 18inch knife valves, manifolds, as well as a 200HP diesel driven standby pump. Between Joe Brito’s guys and my guys we had everything set up in three weeks.” Within this time, the pump station had been basically moved from the inside of the building to the outside. By March 7, the last of the 50,000 feet of 18-inch temporary bypass was in place and the Water Street Pump Station was operating via a new power service and the Godwin Pumps temporary triplex pump setup. Both the “outdoor pumping station” and the 4.5-mile bypass piping alignment needed 24-hour operational and monitoring personnel. The expense up to this point (since the initial break on December 19) was approaching $7 million.

Godwin brought in three 150HP high pressure in-line electric pumps complete with VFDs

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APRIL, 2016

Multiple crews worked to install the 50,000 feet of temporary bypass

National Water Main brought in maximum duty cleaning rigs to deal with the heavy sludge

Permanent Repair Options Presented to the Town

hile as many as 50 workers a day concentrated on the pipeline and pump station work, the town and Environmental Partners were busy trying to determine a cost effective and long term solution to permanently restore the sewer system. On March 8 they presented five different design options along with cost estimates to the Board of Selectman and townspeople on local cable TV. Options ranged from a series of 30-inch pipe repairs and salvaging of parts from the old line, to removal and replacement of the entire force main. After a lengthy session, the Selectmen voted to support Option 5, which was not the most expensive, nor the least expensive. This option also received the overall endorsement of the design engineer and the DPW. “Our design objective was to provide the most secure long term solution at a reasonable cost,” said Plymouth DPW Director Beder. “We felt that redundancy was the best way to eliminate any potential for a similar catastrophe in the future.” The main components of Option 5 include: 1. Use much of the existing 30-inch force main as a sleeve, and insert a 24-inch HDPE pipe inside by

APRIL, 2016

the slipline method. Abandon some portions of the failed 30-inch force main and install new 24-inch HDPE by the open cut excavation method. 2. A second (redundant) 24-inch HDPE will be installed by open cut method parallel to the other 24-inch pipe. Total 24-inch HDPE required is 50,000 feet. 3. Upgrade and rehabilitate the Water Street Pump Station while it is offline. 4. Remove the 50,000 feet of temporary bypass piping and the “outdoor pump station”. 5. Restore the 4.5-mile route of the pipelines to original condition. Final plans and specifications for the massive project prepared by Environmental Partners were issued to bidders in mid-April. Bids are expected by early May. Construction will start by mid-May and the Town has requested an aggressive 4-month schedule for completion of the pipeline work. The Pump Station is currently under design and will bid separately in Summer 2016. continued on page 51

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Plymouth continued from page 49

Cost Impacts and Project Funding

lymouth Selectmen prepared two Funding Articles that were presented at the April 2 Town Meeting: 1. $48 million to pay for the costs of the emergency repairs, temporary bypass systems, engineering, two new force mains, and other costs associated with what may very well be the most expensive sewer failure in the history of the Commonwealth. 2. $6 million to pay for a complete upgrade of the Water Street Pump Station. After lengthy debate, both articles were passed by the Plymouth voters. The Town reached out to the MassDEP for a majority of the financing through the Clean Water Trust, which in 2016 expects to provide nearly $400 million in clean water loans through the State Revolving Loan Fund (SRF). The balance of the project cost will be funded through local taxes and sewer fees.

Bypass protected along Alden Street

Bypass winding through an easement off Water Street

Bypass crossing Route 3A

Conclusion

he Plymouth sewer disaster may be unprecedented in its size and scope. Credit is still very much due to the teamwork exhibited by state and local officials, the town of Plymouth DPW, and the list of experienced UCANE members that the town relied upon to provide materials, labor, and equipment on an emergency basis to contain the problem. They provided expert advice and ideas throughout the constantly changing project, and they provided engineering resources for a long-term solution. Congratulations to UCANE members C. Brito Construction Co., Inc.; Godwin Pumps of America, a Xylem Brand,; Environmental Partners Group, Inc.; National Water Main Cleaning Co.; United Rentals Trench Safety; Scituate Concrete Products Corp.; and Rain for Rent - New England for a job well done. Although this project is a one of a kind, it should serve as notice to all cities and towns that all municipal underground infrastructure needs to be tested and maintained on a regular basis because water and sewer pipe can easily succumb to the idea of “out of sight-out of mind”. This mindset can become dangerous and lead to horrific, costly, and life threatening problems. The residents of Plymouth will not soon forget the interruption to their way of life that this sewer break caused. It is certainly a lesson from which all cities and towns can learn. n

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I n M emoriam

Scott B. Lindquist

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e are deeply saddened to announce that on February 24, 2016 our longtime member Scott Lindquist passed away in his sleep at the age of 58. Scott is survived by his four sons; Eric, Bryan, Andrew, and Alex; his girlfriend Frances Flaherty; and seven brothers and sisters. Scott was the son of the late Merton and Phoebe Lindquist of Lynnfield, MA. Scott will be remembered as a loving caretaker of his parents, and a terrific father to his sons, who will miss him dearly.

APRIL, 2016

He was the owner of Public Works Supply of Danvers, MA, and worked in the clean water, drinking water, and drainage industry before starting his business, Waterline Supply LLC in North Andover with his son Andrew. He worked extremely hard and fought relentlessly to keep his business for his family and dedicated employees. The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathies and condolences to the Lindquist family. n

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Controlling Your Workers Compensation Costs Simply mentioning the term "workers' compensation insurance" can cause anxiety for many UCANE members. The anxiety is an understandable reaction because workers' comp insurance is one of your largest expenses; and it is an expense that is seemingly out of the business owner's control. The cost is determined by state mandated rates, complicated formulas, and freak claims. Three factors go into setting workers' comp premiums: the size of your payroll; job classifications; and your claims experience. Understanding how these factors work is the key to taking back control of your insurance program and minimizing your costs.

orkers compensation insurance is unlike any other form of insurance. The program is more a financing mechanism than a standard insurance policy. So how does this financing mechanism work? Each company has an experience modification factor (MOD), which is determined, in large part, by comparing your claims history to your peers. The more frequent and substantial your claims, the higher your MOD and the higher your resulting premium. If your experience is better than your peers, your MOD will fall lower and your premium will be reduced. The details are where it gets a bit tricky. Each claim affects your MOD for a period of three years, so a claim today means you will be paying the insurance carrier higher premiums for years to come. The smaller the claim, the more likely you will pay the carrier more than the actual claim! A $1,000 claim will result in more than a $1,000 increase in your future premiums. So far, this does not seem like a great deal, so what can you do? There are two key steps you can take. Step one, pay attention to your claim. This includes following up on open claims, making sure that the claim is progressing through the claims cycle. Having a return to work program, including light duty work available, is key to getting employees back to work quickly,

APRIL, 2016

and closing out a claim. The second step is to institute loss control programs to prevent future claims. This can include mandatory protective equipment, like steel toed boots, hearing protection, and routine safety meetings. In addition to your experience, MOD workers compensation class codes have a direct impact on your workers compensation pricing. There are over 700 different workers compensation class codes in use by the Massachusetts Workers Compensation Rating & Inspection Bureau and the National Council on Compensation Insurance (NCCI.) Each of these continued on page 60

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Insurance Perspectives continued from page 59 class codes are assigned a rate used in the premium calculation of the policy. These assigned rates are per $100 of payroll. (See Table below.) The rates charged for the various class codes can differ significantly. This makes it vitally important to confirm that the appropriate class codes are being applied. Even in cases where there is a small difference in rate, if the payrolls are large, the premium impacts

can be substantial. In fact, contractors should make it a point to review class codes with their agents—especially in the case of salaried, office, or garage employees—to make sure the codes being used are not only accurate but also efficient. Sometimes a position might fall into more than one class code. By reviewing the work operation with your agent, an amended class code could be approved by the insurer that could result in a substantial premium reduction. continued on page 61

andand Massachusetts 2014 Approved Typical UCANE Typical Class UCANE Codes Class Codes Massachusetts 2014 State State Approved Rates Class Code Description Rate 4000 Sand or Gravel Digging & Drivers 4.41 5183 Plumbing NOC & Drivers 3.25 5213 Concrete Construction NOC 17.50 5521 Concrete or Cement Work – Floors, Driveways, Sidewalks & Drivers 6.40 5701 Wrecking: Building or Structures – Not Marine 22.11 6217 Excavation & Drivers 4.46 6306 Sewer Construction – All Operations & Drivers 7.81 6319 Gas Main or Connection Construction & Drivers 4.66 6325 Conduit Construction – for Cables or Wires & Drivers 4.49 8227 Contractors Permanent Yard 4.03 9402 Street Cleaning & Drivers 5.40

Rates

The rates charged for the various class codes can differ significantly. This makes it vitally important to confirm that the appropriate class codes are being applied. Even in cases where there is a small difference in rate, if the payrolls are large, the premium impacts can be substantial. In fact, contractors should make it a point to review class codes with their agents–especially in the case of salaried, office, or garage employees -‐ to make sure the codes being used are not only accurate but also efficient. Sometimes a position might fall into more than one class code. By reviewing the work operation with your agent, an amended class code could be approved by the insurer that could result in a substantial premium reduction.

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While this illustrates the impact the rates can have on premiums, these classifications can also affect the

________________________________________________________________ MOD. A higher risk occupation (where historical statistics show that those workers are more likely to be injured) is Quality classified aProducts t a higher rate. These higher rates aService nticipate that will 50 occur. If employees and Dependable forlosses Over Years are misclassified to a lower hazard class, not only is this illegal, but there is a strong likelihood that the Tankwagon & Trailer Emergencies Lubricants losses incurred will exceed the expected losses for that class code. This will result in an increased MOD • Direct delivery to bulk tanks • 24/7/365 emergency fueling • Full line of diesel, automotive and including factor, and in fueling turn increasing the •overall premium. Costs associated with an eindustrial xperience lubricants, modification • Fleet and generator Emergency generator programs synthetics and biodegradables • 100 to factor 10,000 ogallon deliveries • On-site fueling ver 1.00 (your average competitor’s rate), will increase your labor rate and bid opportunities can • Bulk and packaged lubricant deliveries Transportation Diesel Exhaust Fluid be lost. throughout New England

• Company-owned fleet • DEF available in single-use containers, • Oil testing and bulk tank programs with professional drivers drums, totes and bulk The importance of having a solid company safety program cannot be understated when it comes to Tank Monitoring • 24/7/365 fuel transport service • We can provide the equipment you Workers C ompensation r ates, a s w ell a s y our o wn p eace o f m ind. T he g oal be monitoring zero accidents and •should Remote ensures your tank need to fit your fleet requirements Supply ample fuel for uninterrupted service try to dsupply rive that Mod factor below 1.0 so that your company can increase its bhas ottom line and it’s • Fuel futures, procurement, Fleet Cards and risk management competitiveness in the marketplace. Most insurance companies have outstanding Safety resources • Fleet fueling card offers advanced • Industry and market intelligence available f or c ontractors a nd a re w illing t o a ssist y our c ompany w hen c alled u pon. fuel controls at over 40,000 sites • Contracted supply positions along the • 24/7 access to product and online account east coast for uninterrupted service of regional your company’s payroll applied o your during Some local or outages bid opportunities may be for Prevailing Wage Contracts. • Tailor Tahe fueling program to tmeet fleet’s requirements Ty Hour E EoMverall ISSIO N S E X P EaRnd T Sprevailing wage Safety & your Compliance employees has a huge effect on premium, contracts can really 284 EASTERN AVE. • CHELSEA, MA 02150 • Full-time safety director Some Prevailing Renewables make a difference. Wage Contracts, such as the Davis Bacon Act, McNamara-‐O’Hara 1-800-289-2875 • Hazmat trained and certified drivers • Biodiesel, bioheat and E85 ethanol Service C ontract A ct, o r S tate P revailing W age A cts c an b e m anaged t o l imit t he payroll sed biofuels in your at the pump WWW.BURKEOIL. COM • Professional site and fill inspections • First in MA u with

workers compensation premium calculation.

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APRIL, 2016

Insurance Perspectives continued from page 60

In the Commonwealth of Massachusetts, employers can also participate in the Massachusetts Construction Classification Premium Adjustment Program. This program may reduce an eligible employer’s premium if the employer meets the applicable average hourly wage under the program. The credit is calculated on a class-by-class basis, but the credit would be applied to the entire Massachusetts modified premium. Most contractors doing exclusively prevailing wage jobs will be entitled to refunds through the MCCPA.

While this illustrates the impact the rates can have on premiums, these classifications can also affect the MOD. A higher risk occupation (where historical statistics show that those workers are more likely to be injured) is classified at a higher rate. These higher rates anticipate that losses will occur. If employees are misclassified to a lower hazard class, not only is this illegal, but there is a strong likelihood that the losses incurred will exceed the expected losses for that class code. This Workers Compensation insurance is a will result in an increased MOD factor, and in turn incoverage unlike any other. With some stratcreasing the overall premium. Costs associated with an egy and planning, you can play an active role experience modification factor over 1.00 (your average in reducing its impact on your bottom line. n competitor’s rate), will increase your labor rate and bid opportunities can be lost. The importance of having a solid company safety program cannot be Aon Risk Solutions understated when it comes to WorkConstruction Services Group ers Compensation rates, as well as your own peace of mind. The goal should be zero accidents and try to drive that MOD factor below 1.0 so that your company can increase its bottom line and it’s competitiveness in the marketplace. Most insurance companies have outstanding safety As the leading provider of risk solutions to the construction industry, Aon resources available for contractors Construction Services Group partners with clients to provide insighful and are willing to assist your comanalysis, strategic direction and creative solutions backed by our dedicated pany when called upon. team of construction experts and the strength of Aon’s global network. Some of your company’s bid

Managing Risk Takes More Than Machinery

opportunities may be for Prevailing Wage Contracts. The payroll applied to your employees has a huge effect on your overall premium, and prevailing wage contracts can really make a difference. Some Prevailing Wage Contracts, such as the Davis Bacon Act, McNamara-O’Hara Service Contract Act, or State Prevailing Wage Acts can be managed to limit the payroll used in your workers compensation premium calculation. There are two options for how the fringe benefits under a Prevailing Wage Contract can be paid. The fringe benefits can be paid in wages to the employee that would be used in the workers compensation calculation, or bona fide employee benefits can be purchased with the money, which would be excluded from the workers compensation calculation. Check with your insurance agent or a fringe benefit specialist to assist in assigning benefits in lieu of wages.

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Let Aon Construction Services Group empower your growth, profit and continuity. aon.com/construction Kevin White, CEO 617.457.7717 Kevin.White@aon.com

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Paul Healy, National Contract Surety 617.457.7719 paul.healy@aon.com

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UCANE’s Fifth Annual Trade Show

CANE held its Fifth Annual Trade Show prior to the March Forecast Dinner Meeting, which was held at the Four Points by Sheraton Hotel in Norwood, MA. UCANE’s Trade Show has become a highly anticipated and heavily attended event. The primary goal of the show is to support our Associate Members who advertise in Construction Outlook magazine. With such active and enthusiastic participation, UCANE may need to find a larger venue next year. The draw for this years’ 38 companies who participated is the attendance of underground utility company owners and their key employees. The contractors’ attend to hear the speakers from the MassDEP, MWRA, and BWSC present their forecasts for water and sewer projects for the upcoming construction season. To exhibitors, this is an opportunity to meet with key decision makers in the underground construction industry, and to showcase their products and services

prior to the evening’s presentations. This format has proven to be very advantageous for the exhibitors, who are provided with a complimentary booth as UCANE’s way of saying thank you for supporting our magazine and our Association. The feedback from the participants was overwhelmingly positive. One exhibitor stated, “I got to meet more contractors face to face tonight than I have in the past year.” Everyone who participated in our Trade Show walked away with something. All visitors received promotional gifts from our vendors, and some, if they were very lucky, received one of the great prizes donated by some of our trade show exhibitors. The prizes included two Red Sox tickets courtesy of Taylor Oil Company; three $100 American Express Gift Cards from HD Supply Waterworks; a hand held blower thanks to Norfolk Power Equipment, Inc.; a Ping Driver donated by Rain for Rent - New England; a Battery Pack Charger from

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APRIL, 2016

American Shoring Inc.; a $25 American Express Gift Card from A. H. Harris Construction Supplies; two $100 Capital Grille Gift Cards and two pair of Red Sox Tickets from Shea Concrete Products; an iPad Mini from Scituate Concrete Products Corp.; four pair of Celtics Tickets from Concrete Systems, Inc.; and an ATV Vise, a DeWalt 12V Man Infrared Thermometer Kit, and a DeWalt 20V Max Grease Gun Kit from HD Supply Construction & Industrial White Cap; and a pair of Red Sox Tickets from Eastern States Insurance Agency, Inc. UCANE’s Trade Show is our way of thanking our advertisers for their support. They make it possible for us to continue to publish our nationally recognized magazine, and to get our industry’s message about the need for clean drinking water and pollution control projects out to cities and towns, DPW directors, state

APRIL, 2016

agency heads, legislators, and many companies and groups in the water protection, management, and environmental communities. Construction Outlook magazine is a vehicle by which companies create name recognition and have their latest products and services seen by many company and municipal decision makers. It’s obvious by their continued support that the most successful companies in our industry believe that our magazine helps to grow and expand their businesses. If your company would like to participate in UCANE’s Sixth Annual Trade Show next year, please contact Suzanne at the UCANE office for Construction Outlook magazine advertising opportunities. continued on page 64

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

Thank You to All of Our Trade Show Participants ATS Equipment, Inc. Acme Shorey Precast Co., Inc. A merican Shoring Inc. C & S Insurance Agency Concrete Systems, Inc. Dedham R ecycled Gravel Diesel Direct, Inc. Eastern States Insurance Agency, Inc. Ferguson Waterworks HD Supply Waterworks HD Supply Const. & Industrial White Cap A. H. H arris Construction Supplies JESCO Lorusso Heavy Equipment, LLC MBO Precast, Inc. M abey, Inc. Minuteman Trucks, Inc. Norfolk Power Equipment, Inc. North East Shoring Equipment, LLC

NorthStar Insurance Services, Inc. Ocean State Oil E. J. Prescott, Inc. R ain For R ent – New England R itchie Brothers Auctioneers Rodman Ford Sales, Inc. Rogers & Gray Insurance Schmidt Equipment, Inc. Scituate Concrete Products Corp.* Scrap-It, Inc. Shea Concrete Products, Inc. Starkweather & Shepley Ins. Brokerage, Inc. Systems Support Corporation Taylor Oil Company Tonry Insurance Group, Inc. TruckTap United Concrete Products, Inc. United R entals Trench Safety Woodco M achinery, Inc. * Company Photo Unavailable

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SAVE THE

UCANE’s 37th Annual

Golf Classic

DATE

Taylor Oil Company - Corporate Sponsor E. J. Prescott, Inc. - Lobster Clambake Sponsor McCourt Construction Co. - $25,000 Hole-In-One Rodman Ford Sales, Inc. - Ford F-150 (3-Year Lease) Hole-In-One Dagle Electrical Const. Corp. - $10,000 Putting Contest HD Supply Const. & Industrial White Cap - Helicopter Golf Ball Drop HD Supply Waterworks - “Closest to the Pin” Against a Sports Celebrity ATS Equipment, Inc. - Continental Breakfast The Vellano Companies, Inc. - Cold Drink Cart For sponsorships or to reserve your spot call the UCANE office at 617.471.9955 or go to www.ucane.com

Monday, July 11, 2016 LeBaron Hills Country Club Lakeville, MA

Whether you’re gearing up for a new project or selling machines from your fleet, count on Ritchie Bros. We’re the world’s largest industrial auctioneer for one reason—we do auctions right. ▸ Every item sells to the highest bidder on auction day ▸ Secure yards for buyer inspections ▸ Hassle-free, all-inclusive service for sellers ▸ Both on-site and online bidding ▸ Financing, shipping, refurb and other services Talk to me about selling at our next Manchester auctions: April 21 & July 26

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APRIL, 2016 43

Smart Tax, Business & Planning Ide IN THIS ISSUE • • • • •

John E. Merchant, CPA

Cullen, Murphy & Co., P.C.

Special Report on the Pro Americans from Tax Hikes

Deducting Sales Taxes IRA Charitable Donations Higher Education Tax Breaks Tax-Free Investment Gains Business Tax Benefits

Special Report on the Protecting Americans from Tax Hikes Act of 2015 Last December, President Obama signed the Protecting Americans from Tax Hikes (PATH) Act of 2015 into law. The new law contains several tax benefits for individuals and companies. What’s more, PATH was not a simple “extenders” act, continuing certain tax breaks for a year or two. On the contrary, PATH converted many tax code provisions from temporary to permanent, retroactive to the beginning of 2015. Therefore, you can have much more confidence in future tax plans regarding these provisions. (Other tax code provisions that had expired, or were scheduled to expire, were extended for two or five years, retroactive to 2015.) This issue covers some of the main tax rules that have been affected.

APRIL, 2016

What’s m simple “exten tax breaks fo contrary, PA code provisio permanent, r of 2015. The more confide regarding th code provisio scheduled to two or five y This issue Last December, President Obama signed covers some axpayers who itemize deductions on Schedule A of Protecting Americans fromstate Tax and localhave IRSthe Form 1040 can deduct some tax been aff Hikes (PATH) Actincome. of 2015 Among into law.the Theformerly about these payments from their new lawtax contains severalthat tax benefits were set to e impermanent deductions are nowfor permanent is the option to deduct sales instead of income taxes. individuals and companies. contact our o

Deducting Sales Taxes

Example: Marge and Nick Palmer always itemize deductions on their joint tax return. Generally, the Palmers deduct the state income tax they pay. In 2015, though, their income fell, and so did the state income tax they paid. The Palmers also have made some large purchases, paying steep amounts of sales tax. For 2015 and future years, the Palmers can deduct the sales tax they Taxpayers whoincome itemizetax deductions theofstate inco paid instead of the state they paid, on if the amount sales taxSchedule exceeded A their income tax. of IRS Form 1040 can though, thei This deduct tax provision who live in a state state income someobviously state andhelps localpeople tax payments with no income tax; other taxpayers also may benefit. A taxpayer from their income. Among the formerly may deduct the actual amount of sales taxes paid during thealso yearhave ma impermanent deductions that paying steep or, alternatively, may usetax tables created by the are IRS to determine the allowable deduction. If a taxpayer uses the tables to determine now permanent is the option to deduct 2015 and fu the deduction, he or she can add the tax paid on certain items instead of income deduct the s (cars andsales boats, for example) to the taxes. amount from the IRS tables. Example: Marge and Nick Palmer of the continued on page 71 state i

Deducting Sales Taxes

always itemize deductions on their joint tax return. Generally, the Palmers deduct

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Financial Management continued from page 69

IRA Charitable Donations

or most people, using IRA dollars for charity is a two-step process. You take money from your IRA, reporting taxable income. Then, you donate it to the charity or charities of your choice, perhaps claiming a tax deduction for the contribution.

Did You Know?

law passed in 2015 will essentially end the “file and suspend” strategy for claiming Social Security benefits. Under this strategy, seniors can begin Social Security at full retirement age (now 66) but then suspend payments until age 70, allowing the payment amount to increase. During the suspension period, a spouse or eligible child can receive benefits based on that senior’s work history. After April 30, 2016, the file and suspend option will no longer be available for the benefit of a spouse or child. However, taxpayers that have reached full retirement age before May 1, 2016, can still take advantage of the strategy if they submit a request to file and suspend by that date. Source: bankrate.com

The new PATH law establishes the permanence of qualified charitable distributions (QCDs), which go directly from IRAs to recipient organizations. They’re available only to IRA owners age 701⁄2 or older. Such individuals can use QCDs every year now, up to $100,000 per year. Once IRA owners reach age 701⁄2, they usually must take certain amounts of required minimum distributions (RMDs) each year or pay a 50% penalty on any shortfall. QCDs count toward RMDs. Example: Joyce Harris, age 72, has a 2016 RMD of $20,000. If Joyce, who gives $5,000 to charities each year, makes those donations directly from her IRA, that $5,000 counts toward her RMD for the year, so Water Works Specialist she’ll only have to withdraw anJohn Hoadle Water Works Specialist Tel:781-878-8098 Fax:781-878-5298 other $15,000 from her IRA in Water Works Spe Tel:781-878-8098 Tel: 781-878-8098 Fax: 781-878-5298 2016. She’ll report only $15,000 of taxable income, not $20,000, “Our Products the Most Trusted NamesNames in theinIndustry” “OurIndustry” Products Are the Most Trusted N “OurAre Products Are the Most Trusted the but she won’t get a tax deduc� U.S. Pipe ● Cultec � U.S. Pipe ● Cultec Chambers � Mueller Fire Hydrants ● Nation tion for the $5,000 flowing from • U.S. Pipe • Cultec Chambers Mueller Tapping Sleeves & Valves ● ADS P � Mueller Fire Pipe & Plastics • Hydrants Mueller Fire Hydrants ● National • National Pipe�� &Smith Plastics her IRA to charities. Blair Clamps & Couplings ● Genera Mueller Tapping Sleeves & Valves ● Valves ADS Pipe Chambers • Mueller Tapping Sleeves & • &ADS Pipe & Chambers Mechanical Services Why would Joyce do� this? � Tapping Sleeves & Gates Installed • Smith Blair Clamps & Couplings • General Foundry Castings � Smith Blair Clamps & Couplings ● General Foundry Castings There are several situations in

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Mechanical Services � Cutting of Chilled Water Lines & which using a QCD could pay Mechanical Services � Pressure Testing & Disinfection of � Tapping Sleeves & Gates Installed / Cut off. Perhaps most important, � Installation & Testing of Backflow • Tapping Sleeves & Gates Installed / Cut � Large Diameter Hydraulic Pipe C Joyce will be able to satisfy her � Line Stop / EZ Valves • Line Stop / EZ Valves � Hydrant Installation & Repair $20,000 RMD obligation yet only � Cutting ChilledWater WaterLines Lines&&Steam SteamLines Lines � Electronic Leak Detection • Cutting of of Chilled report $15,000 of income, thus, “Water-Sewer-Drain Supplies at a Com • Pressure Testing &&Disinfection � Pressure Testing DisinfectionofofNew NewMains Mains www.hoadleyandsons.com reducing what otherwise would • Installation && Testing ofof Backflow � Installation Testing BackflowPreventers Preventers 24 24Hours Hours672 Union Street Rockland, MA be her adjusted gross income • Large Diameter Hydraulic Pipe Cutting Sales& Service Sales & Service � Large Diameter Hydraulic Pipe Cutting (AGI) by $5,000. For some tax• Hydrant Installation & Repair Serving ofof Servingallall � Hydrant Leak Installation & Repair New • Electronic Detection NewEngland England payers, QCDs can eliminate any � Electronic Leak Detection addition to AGI from their re“Water-Sewer-Drain Supplies at Supplies a Competitive Price” Price” “Water-Sewer-Drain at a Competitive quired IRA distributions. A lower AGI, in turn, can offer many benwww.hoadleyandsons.com www.hoadleyandsons.com efits throughout your tax return. 672 Union Street MA Rockland, 672 Union Street Rockland, 02370MA 02370 continued on page 72 APRIL, 2016

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Financial Management continued from page 71

Higher Education Tax Breaks

n 2009, Congress replaced Hope qualified expenses, eventhe if they are not Scholarship Tax Credit with the Ameriered by most states, specifically required. Thus, if you buy can Opportunity Credititems (AOTC). ions to grow, taxa computerTax or related for college, Compared with the Hope credit, the AOTC als also are untaxed you can take money from the student’s offers more annual tax savings and is qualified higher 529 plan to cover the costs without available to people with higher incomes. nses. owing any tax or penalty. Moreover, the AOTC can be claimed durmputers anding related a student’s first four years of higher ABLE accounts considered “qualified,” education, whereas the Hope credit was Another PATH provision affects lege, you can take money from the student’s 529 plan only if theylimited were to the first two years. to cover the costs without owing any tax or penalty.

ABLE accounts, sometimes known chool for courseThe AOTC was scheduled to expire after 2017, but as without sacrificing government Accounts the PATH permanent. Under the AOTC, 529Aitplans. ABLE accounts are for assistance ABLE benefits. Formerly, ABLE rollment. Under the Act makes the maximum tax saving is $2,500 per student per Another PATH provision affects individuals with special needs; taxbeneficiaries were limited to ABLE their accounts, ays for computers, year; that amount requires you to spend at least $4,000 sometimes known as 529A plans. ABLE accounts are distributions allow 40% beneficiaries home state’s plan, but now any state’s ment, Internet access in afree per student calendar year. In addition, of the for individuals with special needs; tax-free distribuAOTC (up refundable, which means you to payisfor disability-related expenses plan will betoacceptable. ftware are classed as to $1,000) g tionsABLE allow beneficiaries pay for disability-related

can receive a check from the IRS if you owe no tax. expenses without sacrificing government assistance benefits. Formerly, ABLE beneficiaries were limited Money you pay for tuition and related fees counts to their home state’s plan, but now any state’s ABLE for calculating the tax credit. Such qualified expenses plan will be acceptable. also include expenditures for course materials, which continued on page 73 means books, supplies and equipment needed for a course of study. An expenditure for a computer also 20 years, Section 1202 would qualify for the credit if the computer is needed has offered benefits to of enrollment or attendance at the eduas a condition CONSULTING cational institution. ain small companies. Qualified Small Business Stock To get the full AOTC, your modified adjusted corporate investors Engineering • Transportation • Surveying gross income (MAGI) must be $80,000apply or less, or 100% tax Several requirements to the exclusion gains from selling small Professional on Land Surveyors & Engineers break if they buy $160,000 or less if you file a joint return. The credConstruction the following:Professional LandSurveying SurveyorsSpecialists & Engineers nies that metit specified phases out forbusiness taxpayersstock. with They MAGIinclude over those Engineering/CADD Services Construction Surveying Specialists amounts, if your MAGI holding period of at with no •credit Youallowed must acquire stock inis aover C corporation, originallyServices issued afterto Sept 27, 2010. Expands Include GPS Consultants Engineering/CADD Services $90,000 or $180,000 if you file a joint return. y gain on a sale will be

e Investment Gains

Trusted Advice

GEOD CONSULTING GEOD CONSULTING

• The corporation must have total gross assets of $50 million or less at all GPS Consultants Subsurface Utility Mapping 529 Plans times after August 9, 1993, and before it issued the stock. Providing Surveying, Engineering & CADD Services to e tax exclusion applied These plans, offered by most states, allow conconstruction companies in the New & England area. • The company’s gross assets immediately after it issued the stock must have Providing Surveying, Engineering CADD Services to to grow, tax-free. Withdrawals also are in. In 2010,tributions the construction companies in the New England area. been no more than $50 million. Experienced in construction layout of highways, utilities, untaxed to mporarily increased tothe extent of qualified higher education and development. expenses. qualified expenses, even if they are not Experienced in construction layout ofmeets highways, utilities, • During substantially all the time you schools, hold thebridges stock, thesitecorporation ases after September specifically required. Thus, if you buy a computer or schools, bridges and site development. the active business requirements (that is, the corporation is an eligible he 100% exclusion related items for college, you can take money from uses at least the 2014. student’s 529 plancorporation to cover thethat costs without ow-80% [by value] of its assets in the active t expired after ing any tax or penalty.conduct of one or more qualified trades or businesses). exclusion on the sale Previously, computers and specified related equipment • With some exceptions, you must have acquired the stock at its l business stock were considered “qualified,” for this purpose, only if original issue,for directly or attenthrough an underwriter. anent. Another they were required by the school course dance ure—exclusion of or enrollment. Under the PATH Act, outlays 24 Ray Avenue for computers, peripheral equipment, Internet acAvenue • Burlington, MA 01803 theRay 3.8% Medicare surtax, m the alternative With the recent increase in capital of 24 Burlington, MA 01803 tax-free cess and computer software are classed as qualified 24 Ray• Avenue Tel: 781.273.3434 Fax: 781.273.3430 781-273-3434 gains fromBurlington, aPhone profitable tax for high-income also is permanent MA investment 01803 expenses, evengains if they arerates not specifically required. www.geodcorp.com Fax: 781-273-3430 Phone 781-273-3434 Thus, if you buy a computer or related items for coltaxpayers and the possible imposition may be appealing. g H Act. Fax: 781-273-3430

ss Tax Benefits 72

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APRIL, 2016

Financial Management continued from page 72

Trusted Advice Qualified Small Business Stock Several requirements apply to the 100% tax exclusion on gains from selling small business stock. They include the following: • You must acquire stock in a C corporation, originally issued after Sept 27, 2010. • The corporation must have total gross assets of $50 million or less at all times after August 9, 1993, and before it issued the stock. • The company’s gross assets immediately after it issued the stock must have been no more than $50 million. • During substantially all the time you hold the stock, the corporation meets the active business requirements (that is, the corporation is an eligible corporation that uses at least 80% [by value] of its assets in the active conduct of one or more qualified trades or businesses). • With some specified exceptions, you must have acquired the stock at its original issue, directly or through an underwriter.

Tax-Free Investment Gains

or more than 20 years, Section 1202 of the tax code has offered benefits to investors in certain small companies. Generally, non-corporate investors can use this tax break if they buy stock in companies that met specified criteria. After a holding period of at least 5 years, any gain on a sale will be taxed favorably. Originally, the tax exclusion applied to 50% of the gain. In 2010, the exclusion was temporarily increased to 100%, for purchases after September 27 of that year; the 100% exclusion was extended but expired after 2014. Now the 100% exclusion on the sale of qualified small business stock (QSBS) is permanent. Another temporary measure—exclusion of QSBS gain from the alternative minimum tax—also is permanent under the PATH Act. With the recent increase in capital gains tax rates for high-income taxpayers and the possible imposition of the 3.8% Medicare surtax, tax-free gains from a profitable investment may be appealing. continued on page 74

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

2/23/16 2:11 PM

Financial Management continued from page 73

Business Tax Benefits

he tax code includes Section 179, which permits first-year deduction (expensing) of amounts spent for business equipment. This provision formerly allowed annual deductions up to $25,000. After $200,000 of equipment outlays, the allowance phased out, dollar-for-dollar. Congress had raised these amounts sharply in recent years, but the increases expired periodically, going back to the original amounts. The latest expiration occurred at the end of 2014, so the smaller limit was officially in effect until passage of the PATH Act in late 2015. Now, the higher Section 179 limits are permanent. For 2015, expensing up to $500,000 of equipment is allowed, and the phaseout doesn’t begin until $2 mil-

lion of purchases. Both the $500,000 and $2 million amounts will be indexed for inflation, starting in 2016. Example 1: ABC Corp. spent $600,000 on equipment in 2015. The company can deduct $500,000, the permanent Section 179 cap, while the other $100,000 can be depreciated under other rules. Example 2: XYZ Corp. spent $2,100,000 on equipment in 2015. That’s $100,000 over the $2 million limit, so Section 179 expensing is reduced by that $100,000, from $500,000 to $400,000. If the company expenses $400,000, it can depreciate the remaining $1,700,000 under other rules. The PATH Act includes off-the-shelf computer software as Section 179 property, which was not always the case. Beyond expensing under Section 179, “bonus” depreciation has allowed additional first-year depreciation deductions for amounts spent on certain business equipment. That provision, which expired continued on page 75

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2016

Financial Management continued from page 74 after 2014, has not been made permanent; instead, it was extended through 2019. For 2015 through 2017, 50% of the relevant cost may be deducted. That number will fall to 40% in 2018 and 30% in 2019.

R&D Tax Credit The PATH Act also gave permanent status to the research & development tax credit (R&D credit), retroactive to 2015. This credit can be used by companies that increase their qualified research expenses. Qualified research expenses includes the costs of in-house qualified research and amounts paid to outside contractors for qualified research. If the credit can’t be used currently, it can be carried forward or transferred in an acquisition. Technology-based companies may be the main users of this tax credit, but firms in all fields may get some benefit. Tracking R&D costs to qualify for the credit can be complex, however.

Cadillac Health Plans As part of the Affordable Care Act, employerprovided health insurance deemed to provide ex-

cessive benefits will be subject to a special tax. This tax was supposed to take effect for tax years beginning after 2017, but the PATH Act postpones the start date for two years. This gives employers more time to evaluate their health plans and phase in any changes. In addition, the new tax law provides that a company paying the so-called “Cadillac” plan tax will be able to deduct the amount paid from its income tax. Thus, the actual cost of the Cadillac plan tax may be reduced. Reprinted from CPA Client Bulletin. n

Crushed Stone & State Specified Dense Graded Base Manufacturer & Installer of Bituminous Concrete Products:

M.B.S. Construction Services/Paving Holden Trap Rock Co. 2077 N. Main Street (Route 122 A) Holden, MA 01520 Tel: 508-829-5353 Fax: 508-829-9346

Berlin Stone Co. 332 Sawyer Hill Rd. (off Rt. 62 & 495) Berlin, MA 01503 Tel: 978-838-9999 Fax: 978-838-9916

Serving the Bonding and Insurance needs of the N.E. construction industry for over 40 years.

Adam DeSanctis Gregory Juwa James Axon Michael Carney Wilder Parks Michael Gilbert Bryan Juwa David Boutiette Paul Patalano Dick Caruso Jonathan Duggan

APRIL, 2016

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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

Equal Opportunity/Affirmative Action Employer

Advertisers’ Index ATS Equipment, Inc. .................................................... 28 Acme Shorey Precast Co., Inc...................................... 36 Adler Tank Rentals........................................................ 70 Aggregate Industries - N.E. Region.............................. 66 American Shoring, Inc.................................Ins. Back Cvr. Aon Construction Services Group................................ 61 Boro Sand & Stone Corp.............................................. 70 Dennis K. Burke, Inc..................................................... 60 C&S Insurance Agency................................................. 42 Concrete Systems, Inc.................................................. 18 Dagle Electrical Construction Corp................................. 4 Darmody, Merlino & Co., LLP........................................ 37 Dedham Recycled Gravel............................................. 57 DeSanctis Insurance Agency, Inc. ............................... 75 Diesel Direct, Inc........................................................... 73 Dig Safe System, Inc..................................................... 68 The Driscoll Agency ..................................................... 53 EJ.................................................................................. 14 Eastern Insurance Group, LLC..................................... 32 Eastern States Insurance Agency, Inc...........................11 Eastpoint Lasers, LLC................................................... 54 T. L. Edwards, Inc.......................................................... 35 Ferguson Waterworks................................................... 17 Foley Carrier Services, LLC.......................................... 68 GEOD Consulting, Inc................................................... 72 Godwin Pumps, a Xylem Brand...................................... 9 L. Guerini Group, Inc..................................................... 58 HD Supply Const. & Industrial White Cap.................... 10 HD Supply Waterworks................................................... 2 A. H. Harris Construction Supplies............................... 58 Hinckley Allen LLP........................................................ 24 John Hoadley & Sons, Inc............................................. 71 JESCO.......................................................................... 31 P. A. Landers, Inc.......................................................... 41 Lawrence-Lynch Corp................................................... 38 Lorusso Corp................................................................... 5 Lorusso Heavy Equipment, LLC................................... 16 MBO Precast, Inc............................................................ 7 Mabey, Inc..................................................................... 39 Mass Broken Stone Company...................................... 75 Milton CAT..................................................................... 40 Minuteman Trucks, Inc.................................................. 15 Norfolk Power Equipment, Inc........................................ 5 North American Crane & Rigging LLC............................ 8 North East Shoring Equipment, LLC............................. 19 NorthStar Insurance Services, Inc................................ 22 Ocean State Oil............................................................. 66 Palmer Paving Corp...................................................... 54 E. H. Perkins Construction Co., Inc.............................. 76 Podgurski Corp............................................................. 15 E. J. Prescott, Inc....................................... Ins. Front Cvr. Rain For Rent-New England......................................... 30 Read Custom Soils ...................................................... 70 Ritchie Bros. Auctioneers............................................. 67 Rogers & Gray Insurance............................................. 56 Schmidt Equipment, Inc.....................................Back Cvr. Scituate Concrete Products Corp................................. 50 Scrap-It, Inc................................................................... 13 Shea Concrete Products, Inc. ...................................... 12 Smith Print..................................................................... 68 Southern Redi-Mix Corporation.................................... 27 Starkweather & Shepley Ins. Brokerage, Inc................ 74 Ti-SALES, Inc. .............................................................. 54 Albert J. Tonry & Co., Inc.............................................. 66 TruckTap........................................................................ 34 United Concrete Products............................................. 45 United Rentals Trench Safety....................................... 52 The Vellano Companies, Inc......................................... 58 C. N. Wood Co., Inc. ...................................................... 6 Woodco Machinery, Inc................................................ 44

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2016

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. Our staff is waiting for your call with professional advice to recommend the best specific product for your project. Field service support and supervision available with on site assembly and take down. Inquire about our Competent Person, Confined Space & OSHA 10 training classes. All systems are manufactured in the USA.

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American Shoring of Massachusetts, Inc.

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