Construction Outlook April 2017

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

APRIL, 2017

• MWRA FY17-FY19 Upcoming and Ongoing Construction Awards • BWSC Capital Improvement Program 2017-2019 Executive Summary and Upcoming Projects

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W H AT E V E R Y O U N E E D , W H E N E V E R Y O U N E E D I T, N O M AT T E R W H AT.

Years of Excellence 1954-2017

OFFICERS President PAUL SCENNA

Albanese D&S, Inc.

President-Elect RICHARD PACELLA, JR. R. M. Pacella, Inc.

Treasurer MARCELLA ALBANESE

Albanese Brothers, Inc.

Secretary RYAN McCOURT

McCourt Construction Company

BOARD OF DIRECTORS VINCENT BARLETTA

APRIL, 2017

IN THIS ISSUE

3 President’s Message:

Closing Water Funding Gap Needs Everyone’s Support

7 Legislative Update:

• UCANE and ACEC/MA Submit Testimony on the Regulation and Taxation of Short Term Accommodations Legislation Citing Water Infrastructure Needs • Controlling Environmental Permits; Battle Brewing over Primacy • Massachusetts Rated Low for Lead Pipe Disclosure • Department of Public Safety Moves to Division of Professional Licensure Under Article 87 • Addressing their Water Infrastructure Needs: Quincy, Worcester, and Melrose • State Senator Ken Donnelly Passes Away After Battle with Brain Cancer

16 UCANE’s March Forecast Dinner Meeting:

Barletta Heavy Division

MassDEP, MWRA, and BWSC Leaders Discuss Upcoming Capital Projects

JOHN BERKSZA

20 MWRA FY17-FY19 Upcoming and Ongoing Construction Awards 29 BWSC Capital Improvement Program 2017-2019 Executive Summary and Upcoming Projects

Eastern Insurance Group, LLC

NICK BIELLO

J. D’Amico, Inc.

TONY BORRELLI

Celco Construction Corp.

GERRY CARNEY, JR.

C. N. Wood Company, Inc.

KEVIN COLE

J. F. White Contracting Co.

BRIAN COONEY

C. C. Construction, Inc.

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.

JOHN OUR

Robert B. Our Co., Inc.

JOSEPH PACELLA

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

CHRIS VALENTI

GVC Construction, Inc.

KEN VOGEL

WES Construction Corp.

DAVID ZOPPO

R. Zoppo Corp.

ANNE KLAYMAN

Executive Director

43 UCANE Welcomes New Members 44 Save the Date: UCANEs 38th Annual Golf Classic 45 Labor Issues:

Massachusetts Decriminalization of Marijuana: No Forseeable Impact on Employer Anti-Drug Rules and Policies

48 Contractor Member of the Month:

Celco Construction Corp. Celebrating 60 Years in Business

53 2017 NBM Equipment Show 55 Trump Proposal to Fix U. S. Water Infrastructure Invites Large Role for Private Investors 62 The McCourt Foundation Gala 66 Step Right Up...UCANE’s Sixth Annual Trade Show was a Hit! 71 Financial Management: • Dealing With an IRS Audit • Deciding About a Vacation Home • ESOP’s as Retirement Plans

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Magazine Designer: Sherri Klayman Construction Outlook Chairman: Paul Scenna Editorial Board: Paul Scenna, Richard Pacella, Jr., Marcella Albanese, and Ryan McCourt 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 Brockton, 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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APRIL, 2017

Closing Water Funding Gap Needs Everyone’s Support History should be our best teacher, because unless we learn from our mistakes, we are certainly bound to repeat them. There is an undeniable truth that our country’s leaders tend to operate on a reactive basis. In other words, they are forced to react after a crisis has occurred rather than being proactive in an attempt to prevent a crisis.

After a crisis occurs is not the ideal time for important policy decisions to be made.

Long term planning needs to be done before a crisis occurs in an attempt to prevent any potential damage and extraordinary expense.

I

t is much easier to garner public consensus when everyone is focused on a specific problem. Case-inpoint is the Flint Michigan water/lead problem. Now that this problem has garnered local, state, and federal attention, money is pouring in to resolve the problem even though it may be too late for some young children who may exhibit health problems into the future.

The time to have prevented that problem was years before it happened. And now water managers are at crossroads. We all know the problems that exist. Major cities have water and sewer pipe that have exceeded even the most optimistic life expectancy.

This vital infrastructure is out-of-sight and out-ofmind. Clean drinking water is taken for granted. But what do we do? The problem is getting worse year after year. Are we waiting for a major water crisis to occur before we act? It does seem that way…it’s just an easier decision to make. Don’t make any decisions until we have to! After all, we all turned on our faucets this morning and magically water flowed. How bad can things really be?

Whether you work at the White House, city hall or town hall, everyone knows that there is a major multibillion dollar water infrastructure-funding gap based on what is funded and what needs to be funded. The Value of Water Campaign recently released a report titled “The Economic Benefits of Investing in Water Infrastructure,” which studied these issues on a National scale, and its findings are noteworthy. According to

APRIL, 2017

the report, the decline in federal contribution to water infrastructure over the past 30+ years is significant: $77 per person in 1974 decreased to $11 per person in 2014. So while federal contributions to transportation infrastructure have stayed constant during that time frame, totaling approximately half of the capital spending by all public entities, federal investment in water infrastructure has declined from 63 percent to 9 percent since 1977. The report puts our national water infrastructure gap at $82 billion per year. It’s apparent that the health and well being of our citizens is being put in jeopardy and their standard-of-living will be stagnant or will even decrease.

On the flip side, the report also outlines the economic benefits of closing that funding gap. According to the report, if the estimated gap were closed over the next 10 years, it would result in over $220 billion in total annual economic activity to the country.

These investments would generate and sustain approximately 1.3 million jobs over that time. This information backs up the data in a 2014 report put out by the MWRA Advisory Board and the Collins Center at UMass, which concluded that for every $1 million invested in drinking water/wastewater infrastructure in Massachusetts, there can be projected $2 million – $14 million in new taxes and $2.6 million – $6.8 million generated in the private economy. These numbers are of no surprise to UCANE members, who continued on page 5

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APRIL, 2017

President’s Message continued from page 3 know that improving our water infrastructure equals jobs, economic growth, and stability.

Closing the funding gap in order to realize these health and economic benefits has to be a cooperative effort; and means we all need to establish a true partnership among federal, state, and local officials. No one entity should be, or is, responsible. The federal government needs to increase its investment that has been slowly diminishing over the years. The state needs to provide adequate funding and increase the incentives to cities and towns that are over burdened with capital needs. Municipalities also need to be an equal partner and make water infrastructure a high priority, and ensure that they have done the capital planning necessary to take advantage of monies and programs available to address their water infrastructure needs.

If everyone has some “skin in the game,” we will be able to properly take care of our drinking and wastewater systems for the well being of all of our citizens. n

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 5 56 “BUY FROM THE ADVERTISERS IN CONSTRUCTIO

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APRIL, 2017

Mark Molloy, Esq., Lynch Associates, Inc.

UCANE and ACEC/MA Submit Testimony on the Regulation and Taxation of Short Term Accommodations Legislation Citing Water Infrastructure Needs

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wo members of the Water Infrastructure Alliance, UCANE and the American Council for Engineering Companies, Massachusetts Chapter (ACEC/MA), submitted joint testimony on legislation governing the regulation and taxation of short term rental accommodations at a hearing held by the Joint Committee on Revenue. In the testimony, UCANE and ACEC/MA urged the committee to note that the value of short term rentals relates directly to a property’s access to water infrastructure. In particular, the joint testimony noted the following: “[I]n 2012, the Massachusetts Water Infrastructure Finance Commission, established by the legislature and comprised of a diverse group of individuals representing construction, engineering, environmental, municipal, and state entities, found that the Commonwealth faces a $21 billion funding gap in maintaining its drinking and wastewater infrastructure over the next 20 years. In that same time period, the Commonwealth has seen significant growth in the use of online lodging marketplaces, whether AirBNB, VRBO, or HomeAway. The fact remains, however, that since property value is intrinsically tied to the availability and condition of a water infrastructure system, the online lodging marketplace’s value is unsustainable without maintaining and improving our water infrastructure system.

To this end, the Massachusetts Department of Revenue (DOR) estimates that there is at least $294 million in annual sales for transient accommodations, which would mostly qualify for registration as a lodging marketplace, that is currently exempt from the room occupancy tax in Massachusetts. The DOR

APRIL, 2017

further estimates that including these rooms under an excise or occupancy tax would generate at least $13.4 million to $20.1 million in additional annual revenues. As the short term rental of properties, through online lodging marketplaces, is only possible if there is sufficient infrastructure to support their habitability, now is the time to direct resources towards water infrastructure.

Our Commonwealth’s water infrastructure needs must be addressed. Just because our water infrastructure is often unseen, does not mean a problem does not exist. The regulation of short term rental accommodations presents an ideal opportunity to support this vital effort. Accordingly, we respectfully request the Committee include provisions to fund water infrastructure in any bill regulating short term rental accommodations. By doing so, property owners and renters will be partnering with the local, state, and federal government to finance this needed maintenance.”

Leadership from both legislative branches as well as the Governor have expressed an interest in regulating and taxing short term rental accommodations. Online lodging marketplaces such as AirBNB and VRBO have made it substantially easier for property owners to rent rooms or homes for lodging. The rental of these properties, however, does not trigger an occupancy tax as it does for hotels, motels, or traditional bed and breakfasts. UCANE has filed legislation to ensure that a portion of any proposed occupancy tax go towards the Commonwealth’s water infrastructure needs. continued on page 9

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Legislative Update continued from page 7

Controlling Environmental Permits; Battle Brewing over Primacy

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he month of March saw Governor Charlie Baker refile legislation to bring Massachusetts in line with 46 other states by allowing the Massachusetts Department of Environmental Protection (MassDEP) to administer the United States Environmental Protection Agency's National Pollutant Discharge Elimination System (NPDES). The issue, also known as “primacy,” has led to an increasing amount of debate over the Commonwealth’s ability to police itself environmentally.

The NPDES is a permit program created by the 1972 Clean Water Act to address water pollution by regulating the sources, such as pipes or ditches, of pollutants into the nation's waters. States have the option to apply to administer the NPDES program, which regulates public and private discharges, under federal oversight at the state level, and Massachusetts is one of four states that has not yet requested "delegation."

According to a release from the Governor’s Office, passage of the legislation is one part of a submission MassDEP makes to the EPA in seeking permission to administer the program. The state will be required to demonstrate an effective plan for managing the program, sufficient legal authority to meet federal requirements, and a plan for funding.

Mass. Rated Low for Lead Pipe Disclosure

A

ccording to a recently released report by the Environmental Defense Fund (EDF), Massachusetts received a failing grade in a new national report assessing lead pipe disclosure policies in the states.

The report found that the existing limited disclosure policy in Massachusetts "does not require the seller to disclose knowledge of defects on the property or environmental hazards generally to potential buyers." Disclosure represents "a critical step for communities in the state to build inventories and initiate programs for full lead service line replacement," the report said. The report assessed whether disclosure policies enable buyers to make informed decisions about lead service lines – the underground lines that connect water mains to homes and buildings – before they sign sales contracts.

Three states received grades of an A- (Connecticut, Delaware, and New York) while 12 received failing grades, eight received a D, and 27 states and the District of Columbia fell somewhere in between. The EDF estimates lead service lines are in place at between 6 and 10 million homes in the U.S. Several states that received failing grades enforce “buyer beware” clauses that put the responsibility on the buyer to investigate potential defects on a property, the report said.

continued on page 11

While the Governor filed a similar bill last session; it was a “late file” that immediately drew supporters and detractors alike. The Massachusetts Rivers Alliance has opposed the legislation stating that “NPDES would cost the state $5 million to $10 million a year for a service already provided by the federal government.”

The Massachusetts Rivers Alliance has 65 member organizations, including statewide environmental groups such as Mass Audubon, the Environmental League of Massachusetts, and the Conservation Law Foundation.

On the other side of the issue, the Massachusetts Municipal Association has strongly supported the primacy effort arguing that municipalities have a closer, more direct relationship with the state DEP. For its part, UCANE has historically supported the primacy measure as long as funding is provided to the MassDEP so it can sustain its existing programs. While Governor Baker’s initial 2018 budget proposal included $1.4 million to phase the program in, it would eventually require approximately $4.7 million to administer the program. The legislation is currently before the Joint Committee on the Environment, Natural Resources and Agriculture.

APRIL, 2017

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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Legislative Update continued from page 9

Department of Public Safety Moves to Division of Professional Licensure Under Article 87

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egislation folding the Massachusetts Department of Public Safety (DPS) into the Massachusetts Division of Professional Licensure (DPL) went into effect without action by the legislature within the mandated 60 day period at the beginning of April. The proposal, filed by Governor Baker, eliminated the department and established a new Office of Public Safety and Inspections under the broader umbrella of the Executive Office of Housing and Economic Development. The DPS previously fell under the Executive Office of Public Safety.

The DPS was a regulatory, licensing, and inspection agency tasked with oversight of the state's elevator inspections, amusement ride inspections, construction-related permitting, the sanctioning of boxing and mixed martial arts events, and more.

The Article 87 filing meant that unless the legislature found some glaring reason for not passing the legislation, the measure would automatically become eligible for enactment. Under Article 87 of the Massachusetts Constitution, executive branch reorgani201 Jones Road, Suite 645 Waltham, MA 02451 Phone: (781) 398-9840 Cell: (508) 400-3679 exitstrategiesgroup.net

zations require a legislative hearing within 30 days of being filed, a committee vote within 10 days of the hearing, and must receive an up-or-down vote from the Legislature, without amendment, within 60 days or the action takes effect.

While the Joint Committee on State Administration and Regulatory Oversight held a public hearing on the measure in a timely fashion and some concerns were raised, no overall call of alarm existed about the move. As reported by the State House News Service, even Executive Office of Public Safety Secretary Daniel Bennett said that DPS had become a "catch-all" agency that had evolved away from its original law enforcement focus.

For all intents and purposes, license holders under professions regulated by the former DPS will see little, if any, actual change to the processing of their licenses. The DPL, which already oversees 29 boards, is known for its turn-key licensing focus – ranging from actual licensing and renewal to discipline proceedings. continued on page 13

Business Planning Tips & Tricks

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Business Owners Success When TheyThey CarveCarve Out Time Business OwnersFind Find Success When Out Operations on an Basis Basis Time to to Evaluate Evaluate Operations onAnnual an Annual

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Most business become so immersed in immersed the these obligations? Are the terms still favorable? ost owners business owners become so in ofproperty Business Financials daily operation and management of their business that of their • Review Leases – real and equipment the daily operation and management • Contracts with other third parties – purchase agreements they don’t set aside time to evaluate its operations. An anbusiness that they don’t set aside time to 6. Business Projected insurance Income Tax Liability nual gathering of a business owner and his or her close evaluate its operations. An annual gathering of a busi☐ Has new real property been acquired? Was this property advisors—including a trusted attorney, accountant, inValuation • Succession Planning ness owner and his or her close advisors—including Business added to the company’s insurance policy? surance professional, and other financial advisors—is ☐ Is all equipment covered? a trusted attorney, accountant, insurance professional, Contractual • Business Insurance an excellent opportunity to review the business as well as ☐ Are thereObligations any new exposures that should be mitigated and other financial advisors—is an excellent opportuniaccomplishments or setbacks that might shape the overall through insurance? to review the business as well as accomplishments Banking Considerations 7. Banking considerations • Business Legal Documents futuretyplan for the company.

or setbacks that might shape the overall future plan for

☐ A company’s success or failure may be contingent upon its

Although not exhaustive, the following is a list of poAgreements relationship Buy-Sell with a financial institution that provides funding for the company. tential agenda items to include in an annual review session. business operations.

Although not exhaustive, the following is aEmployee list of Non-Competition Agreements This meeting is an opportunity for the business advisors to ☐ Agreements Consider a review& of the following: potential agenda items to include in an annual review • Loans communicate with each other, encouraging open dialogue session. This meeting is an opportunity for the busiEmployee Incentives • Employee Considerations • Lines of credit and cooperation throughout the planning process.

ness advisors to communicate with each other, encouraging open dialogue and cooperation throughout the planning process.

• How does the bank view your business and your industry?

What might be the bank’s biggest concerns to future funding of the business? What financial ratios does the bank watch?

• Who are authorized signatories on behalf of the company?

Confirm that those persons should still have authority.

8. Business legal documents THE ADVERTISERS IN CONSTRUCTION OUTLOOK” ☐ Minutes – have annual minutes been completed? ☐ Proper documentation of all major changes in the business 9. Buy-sell agreements

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APRIL, 2017

Legislative Update continued from page 11

Addressing their Water Infrastructure Needs: Quincy, Worcester, and Melrose

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ith the arrival of Spring, many Massachusetts communities are again focused on their water infrastructure needs. In particular, Quincy (I/I management); Worcester (rate adjustment) and Melrose (asset management) are three communities, among many, who are instituting measures to address their water infrastructure needs.

• As reported by the Patriot Ledger, the City of Quincy is actively taking steps to reduce inflow and infiltration. In the City of Presidents, this represents mostly seawater that makes its way into the sewage pipes through cracks or loosely sealed manholes, particularly at high tide. The average age of Quincy’s pipes is 92 years old, with most put in during or before the New Deal era. Funds to address inflow and infiltration comes from developer fees and the Massachusetts Water Resources Authority.

Of the $3 million the city received from the authority this past year, three-quarters of that was a grant, with the other 25 percent being a zero-interest loan.

• The Worcester Telegram and Gazette reports that the City of Worcester is looking to increase water and sewer rates by 2.2 percent, on average, for the fiscal year that begins July 1. The rate hikes would increase the annual combined water/sewer bill for the average single-family home by $13.46, based on the City’s average usage of 68 hundred cubic feet of water use. The recommended rate hikes are significantly less than the average combined rate increases of 5.6 percent over the last 10 years. According to city officials, the reduced increase amount is a direct result of a consensus reached by the City, the Upper Blackstone Water Pollution Abatement District, the United States Environmental Protection Agency, and the MassDEP on integrated water resources management planning.

• Wicked Local-Melrose recently published an article highlighting the City of Melrose’s effort continued on page 15

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Legislative Update continued from page 13 to identify cracks, leaks, and illegal connections in the City’s sewer system. When investigations are completed, the City will assess the data collected to determine which areas should be priorities for repair this Summer and Fall. As Melrose identifies itself as having one of the highest inflow and infiltration rates of the 42 communities served by the Massachusetts Water Resource Authority, the investigations are an essential step in repairing a deteriorating infrastructure system.

The City will fund work on the five areas identified as having the highest inflow and infiltration by using a grant-loan program offered by the MWRA. These communities represent three among many communities who are using different strategies to identify, address, and solve their water infrastructure needs. As Spring also means the arrival of local town meetings, expect to see more communities discussing and/or addressing their water infrastructure needs.

State Senator Ken Donnelly Passes Away After Battle with Brain Cancer

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assachusetts state Senator Ken Donnelly, an Arlington Democrat and former Lexington firefighter, died Sunday at the age of 66.

Donnelly was hospitalized in July 2016, underwent brain surgery, and returned to work months later. He did not have an opponent in November 2016.

A Cambridge native, Donnelly served as a firefighter for 37 years in Lexington before he was elected to the Senate in 2008. He was also a former secretary treasurer for the Professional Firefighters of Massachusetts, the umbrella organization of firefighter unions throughout the Commonwealth. Known as a fierce advocate for working men and women, Senator Donnelly was credited with advancing legislation related to worker protections, collective bargaining, and employee rights. Senator Donnelly was also known as a constituent-oriented legislator with a strong focus on addressing the individual needs of the towns within his district. Donnelly's district includes Arlington, Burlington, Billerica, Woburn, and parts of Lexington.

He leaves his wife Judy; his children Ryan, Keith, and Brenna; and five grandchildren. n

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UCANE’s March Forecast Dinner Meeting

MassDEP, MWRA, and BWSC Leaders Discuss Upcoming Capital Projects

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Martin Suuberg

Fred Laskey

John Sullivan, P.E.

MassDEP Commissioner

MWRA Executive Director

BWSC Chief Engineer

ust a post-meeting thought: We should have videoed this meeting and sent copies to every local, city, state, and federal official to illustrate, and use as a an example of how public officials, responsible to their residents and private industry can get things done efficiently and at the lowest costs.

The unspoken theme for this evening was “mutual respect”: Respect for the men and women responsible for planning, developing, managing, and supervising our state’s underground water and sewer infrastructure by those who perform the work. And respect for the men and women who perform the work by those who manage and supervise them.

This event took place at UCANE’s 2017 Underground Construction Forecast Dinner Meeting and Trade Show, held at the Sheraton Four Points Hotel. Norwood, MA., with more than 325 members and guests attending to hear from MassDEP Commissioner Martin Suuberg; MWRA Executive Director Fred Laskey; and Boston Water & Sewer Commission Chief Engineer John Sullivan.

UCANE President Paul Scenna (Albanese D&S, Inc.) opened the meeting by welcoming our new members and asking them to get involved with UCANE and advocate for our industry. UCANE Executive Director Anne Klayman followed by thanking members, municipal DPW and Highway officials,qs and prospective members for attending, in spite of the heavy snowstorm that occurred,

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and having worked the night and day before, plowing or managing resources in their city or town.

She also took this opportunity to introduce and welcome new members Industrial Safety & Rescue of Canton, McGill Hose & Coupling, Inc. of East Longmeadow, and Tech Hydraulics of Randolph, MA who were in attendance.

Anne 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.

He spoke about the MassDEP Final 2017 Clean Water and Drinking Water Intended Use Plans (IUP), which had been released in late January. The list shows an increase in spending for 2017, with over $454 million in projects authorized through the Clean Water State Revolving Fund (CWSRF) and $95 million in projects authorized through the Drinking Water State Revolving Fund (DWSRF).

These projects will be put out to bid in all areas of the state, from Cape Cod to Western Mass. The entire 2017 IUP list can be found on our website at www.ucane.com or in February 2017 Construction Outlook.

Commissioner Suuberg also discussed the Administration’s effort to take over the National Pollutant Discharge Elimination System (NPDES) permit program from the U.S. EPA. Massachusetts is one of only three states that does not have “primacy” in implementing the NPDES program, and Governor Baker has once again filed a bill

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2017

to enable MassDEP to run the program. In the coming years, municipalities will be required to incorporate storm water projects as part of their water infrastructure plans as a result of NPDES and the MS-4 permit program, so the issue is of great importance to UCANE. Following Commissioner Suuberg, MWRA Executive Director Fred Laskey updated members on the Authority’s 2017 Capital Improvement Plan (See page 20 for the project list). He began his remarks speaking about the MWRA’s proposed $1.5 billion Metropolitan Redundancy Project, and his meeting with the UCANE Board of Directors and Government Relations Committee to discuss it. He reiterated that despite the proposed cost of the project, the MWRA will have an aggressive capital plan in the next few years, and that many projects will now have an accelerated timeline

APRIL, 2017

in order to prepare for the Tunnel Project. He then outlined several of those projects for the attendees.

BWSC Chief Engineer John Sullivan then gave an overview of the BWSC 2017-2019 Capital Improvement Plan (See page 29 for the project list). He said BWSC will continue to replace several miles of pipeline every year.

He also spoke specifically about upcoming projects that are coming out as a direct result of the aggressive development that continues to take place in the city of Boston.

All of the speakers were very complimentary towards UCANE and its membership for their continued work and advocacy on behalf of the water infrastructure industry.

While it was noted that more underground utility work will be put out to bid in the coming year, it is still a fact that continued on page 19

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17

Dinner Meeting continued from page 17 without additional funds to assist cities and towns, the $21 billion water and sewer infrastructure needs gap cited by the Water Infrastructure Finance Commission will only continue to grow.

Each year our Forecast Meeting and Trade Show serves as the “unofficial kickoff” to the construction season, and this year’s event was once again sold out. UCANE would like to thank Commissioner Suuberg, Fred Laskey, and John Sullivan for taking the time out their busy schedules to join us.

We would also like to thank our Construction Outlook advertisers who participated in our 6th Annual Trade Show held prior to our Dinner Meeting.

We had a record number of exhibitors at this year’s show, and the evening was a tremendous success!

(See article on page 66.) n

APRIL, 2017

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19

Massachusetts Water Resources Authority MWRA FY17–FY19 Upcoming Upcoming Construction Awards Construction Awards Project

Phase

Anticipated Est.Contract Advertisement Amount ($000)

FY17 Anticipated Awards NIH Redundancy & Storage DI Treatment Plant Asset Protection Residuals Asset Protection Residuals Asset Protection

Section 89 & 29 Redundancy - Stoneham HVAC Equipment Replacement - Construction Sludge Tank & Silo Coating Electrical Improvements

Mar-17 Mar-17 Apr-17 Apr-17

FY18 Anticipated Awards SEH Redundancy & Storage Clinton Wastewater Treat Plant NHS - Revere & Malden Pipeline Improvements Clinton Wastewater Treatment Plant Chestnut Hill Connecting Mains Residuals Asset Protection SEH Redundancy & Storage Waterworks Facility Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection NHS - Revere & Malden Pipeline Improvements Facility Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection Residuals Asset Protection Carroll Water Treatment Plant DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection Waterworks Facility Asset Protection DI Treatment Plant Asset Protection DI Treatment Plant Asset Protection

Redundancy Pipeline Section 111 - Construction 2 Clinton Roofing Rehabilitation Section 14 Malden Pipeline Valves & Screw Pumps Replacement Chestnut Hill Gatehouse # 1 Repair Construction Mechanical Improvements Redundancy Pipeline Section 111 - Construction 3 Cosgrove/Gillis PS/CF CSO Flat Roof Replacement Expansion Joint Repair - Construction 3 Switchgear Replacement - Construction Section 56 Pipe Demolition Construction DeLauri Pump Station Screens Gates Valves & Security Gas Protect System Replacement Sodium Hypochlorite & Bisulfite Tanks Rehabilitation Pellet Piping - Relocate Cosgrove Boat Storage Clarifier Rehabilitation Phase 2 - Construction Gravity Thickener Rehabilitation Electrical Distribution Upgrades at Southborough North Main PS Harmonic Filter Replacement South System Pump Station Lube System Replacement

Apr-17 Apr-17 Apr-17 Jun-17 Jun-17 Jun-17 Jul-17 Jul-17 Jul-17 Jul-17 Aug-17 Aug-17 Aug-17 Aug-17 Sep-17 Nov-17 Jan-18 Jan-18 Jan-18 Feb-18 Mar-18

Sudbury Short-Term Repairs Prison Point Rehabilitation - Construction Fuel Oil Tank Replacement Construction Phase 1 Fire Alarm System Replacement - Construction CP3-Sect 23,24,47 Rehabilitation Shaft 12 Isolation Gates Construction Oakdale High Line Replacement Construction Clinton Facilities Rehabilitation Nut Island Odor Ctrl HVAC Improv. Construction Ph 2 Commonwealth Ave PS Improvements -Construction Outfall 023 - Structural Improvements Interceptor Renewal 3, Dorchester Inter. Sewer Con. Fuel Oil Tank Replacement Construction Phase 2 Eastern Seawall Construction - 1 Cathodic Prot. Shafts E & L & Sect. W 16 - Construction Shaft 5 Electrical Upgrade Tops of Shaft Interim Improvements Costruction Cathodic Protection - Construction Peabody Pipeline Construction Mill Cove Sluice Gates - Construction NI Mechanical & Electrical Upgr. Construction Framingham Extension Sewer/Framingham Extension Relief Sewer Biofilters - Construction Wiggins Term Pump Station Construction North Main Pump Station Motor Control Center Ph 2 Cons.

Section 57 Water & 21/20/19 Sewer Rehab. Construction

Apr-18 Apr-18 Apr-18 Apr-18 Apr-18 Apr-18 May-18 Jun-18 Oct-18 Oct-18 Oct-18 Oct-18 Oct-18 Oct-18 Nov-18 Nov-18 Nov-18 Nov-18 Nov-18 Dec-18 Dec-18

FY19 Anticipated Awards Sudbury/Weston Aqued. Repairs Facility Asset Protection Facility Asset Protection DI Treatment Plant Asset Protection New Connect Mains-Shaft 7 to WASM 3 Winsor Station Pipeline Improvements Quabbin Transmission System Clinton Wastewater Treatment Plant Corrosion & Odor Control Metropolitan Redundancy Interim Improvements South System Relief Project Facility Asset Protection Facility Asset Protection DI Treatment Plant Asset Protection Cathodic Protection Of Distribution Mains MetroWest Tunnel Metropolitan Redundancy Interim Improvements DI Treatment Plant Asset Protection Peabody Pipeline Braintree-Weymouth Relief Facilities Corrosion & Odor Control Corrosion & Odor Control Facility Asset Protection DI Treatment Plant Asset Protection Northern Low Service Rehab Section 8

$21,000 $29,500 $730 $1,930 $13,700 $1,214 $1,000 $1,500 $1,000 $1,750 $10,000 $900 $2,014 $8,000 $600 $1,079 $2,000 $5,000 $3,000 $543 $80,000 $14,500 $400 $3,000 $2,900 $460 $5,823 $3,567 $20,000 $8,084 $2,245 $500 $4,477 $10,000 $7,563 $1,500 $4,146 $2,548 $3,916 $531 $1,000 $6,114 $6,471 $9,400 $2,000 $6,054

Jan-19

$1,837

Jan-19 Jan-19 Feb-19

$2,035 $10,586 $22,272

continued on page 21

3/15/17

20

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APRIL, 2017

MWRA continued from page 20

MWRA Upcoming Contract Awards Nut Island Headworks Odor Control and HVAC Improvements

Upcoming Deer Island Construction Awards • Clarifier Rehab II: Jan. 2018 Est. Contract Value: $80 million

• Bid Date: October 2018 Est. Contract Value: $10 million

• Gravity Thickener Rehab: Jan. 2018 Est. Contract Value: $4.5 million Clarifier Rehab II

January 2018

• Switchgear Replacement: Aug. 2017 Gravity Thickener Rehab January 2018 Est. Contract Value: $8 million Switchgear Replacement

August 2017

Southern Extra High Redundant Pipeline • Contract 2: April 2017 2018 Est. Contract Value: $13 million • Contract 3: July 2017 Est. Contract Value: $10 million

$80 million $4.5 million $8 million

Section 57 Water Pipeline and Sections 21/20/19 Sewer Rehabilitation • Bid Date: February 2019 • Est. Contract Value: $22.3 million

continued on page 23

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MWRA Ongoing Projects

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MWRA Ongoing Projects

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system improvements. These improvements have resulted in the replacement of 104.2 miles of water mains, and cement lining of 34.9 miles of water mains.

2017-2019 WATER DISTRIBUTION SYSTEM CAPITAL PROGRAM

Boston Water and Sewer Commission Capital Improvement Program 2017-2019 Executive Summary

The Commission's 2017-2019 CIP for the Water Distribution System continues the investments necessary to maintain and improve the water distribution infrastructure. Projects are planned in the following areas: the rehabilitation or replacement of water mains, including the replacement of water pipes and the upgrade of valves and hydrants. Also included are water mains that are replaced as part of the Commission’s sewer separation work. Together, these planned program activities will result in significant improvements to the water distribution system.

T

Table 8 he and Graph 5 present the 2017-2019 capital Boston Water and Sewer Commission (“the Commission” or “BWSC”) is a body politic and corpoexpenditures for the Water Distribution System. rate and political subdivision of the Commonwealth Graph 6 depicts the funding source application of created by Chapter 436 of the Acts of 1977 (“The Enabling the 2017-2019 capital expenditures.

7 Act”).

The Enabling Act abolished the water andGraph sewer divisions withinthe the City of Boston Works Department and illustrates spending byPublic the program for 2017. transferred the ownership, operation and control of the water, Three-year expenditures are projected to be $84.6 sewer and storm drain systems to the Commission. As a public million, of which $42.1 million is anticipated to instrumentality, the Commission performs an essential public function in providing water and sewer services to the residents occur in 2017. The three-year amounts are of the City of Boston. The Enabling Act authorizes the Comdistributed in the Water Program as follows: mission to construct and make improvements to the water and Replacement or 76.8%, sewer systems, $64.9 establishmillion and collect rates andReline charges $0.2 for its servicesorand finance operations and million improvements through million 0.2%, anditsSpecial $19.5 or 23.0%.

revenue collections and the sale of bonds and notes payable solely from the Commission’s revenues.

The Enabling Act further provides that any revenue surplus realized by the Commission in any fiscal year shall be used to offset future rate increases.

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, 2017

its costs, fairly distributes the financial obligation concerning its customer and encourages water conserWater Mainbase Replacement in Roxbury vation. The metering, billing and collection process is 24 a central focus of the Commission’s full management team and the Commission is committed to maintaining its strong record in this area.

• To maintain a strong financial structure. The Commission 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 Act (“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”) require the Commission, on an annual basis, to develop a three-year Capital Improvement Program (“CIP”). continued on page31

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Boston Water and Sewer continued from page 29 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.

In planning its CIP, the Commission balances the recognized need for ongoing renewal and replacement and preservation of its Systems with the desirability of specific improvements to accommodate development or redevelopment plans for the City. Wherever feasible, capital improvements are scheduled in cooperation with the street rebuilding and reconstruction activities of the City’s Department of Public Works, the Boston Planning and Development Agency and the Commonwealth of Massachusetts Highway Department.

Complying with the requirements of the Enabling Act

APRIL, 2017

and the Resolution, project costs of the Commission’s Capital Improvement Program from Fiscal Years 2017 through 2019 total approximately $206.4 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 pipes cleaned and televised with continued on page 33

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Boston Water and Sewer continued from page 31 an end goal of completing approximately 10% of the system annually.

The overall objectives of the Commission 20172019 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.

The Commission introduced a new category for Stormwater management in the 2017-2019 Capital Improvement Program. The primary purpose of the Stormwater Program is to encourage participation in the Boston Harbor pollution abatement projects and implement green infrastructure to improve the water quality of discharges to the local receiving waters.

The goal is also to study existing conditions and make recommendations for placement of new best management practices designed to promote improved water quality, ensure compliance with state and federal reg-

ulations, minimize flooding and strategically manage stormwater throughout the City of Boston.

CIP expenditures are divided into four categories: Water Distribution System projects, Sewer System projects, Support projects and Stormwater projects. Water Distribution System projects account for $84.6 million, or 41.0% of the 2017-2019 CIP. Sewer System projects comprise $93.2 million, or 45.2%, Support projects total $18.5 million, or 9.0% of the expenditures outlined in the program, and Stormwater projects account for $10.1 million, or 4.8% of the 2017-2019 CIP. Total capital expenditures of $89.5 million are outlined for 2017. Water Distribution projects comprise $42.1 million, or 47.1%. Sewer System projects account for $34.8 million, or 38.8%, Support projects account for $7.7 million, or 8.6% of the 2017 amount.

Stormwater projects totaling $4.9 million consist of the remaining 5.5% of the 2017 amount.

Tables 1 and 2 on the following page present the cash flow expenditures and funding sources for the Commission’s 2017-2019 CIP. continued on page 35

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Boston Water and Sewer continued from page 33

2017-2019 CIP Cash Flows Table 1 PROGRAM

2017

2018

2019

TOTAL

Water

$ 42,112,000 $ 30,116,000 $ 12,354,000

$ 84,582,000

Sewer

$ 34,758,000 $ 38,549,000 $ 19,941,000

$ 93,248,000

Support

$ 7,700,000 $

5,280,000 $ 5,550,000

$ 18,530,000

Stormwater

$ 4,938,000 $

3,241,000 $ 1,870,000

$ 10,049,000

TOTAL

$ 89,508,000 $ 77,186,000 $ 39,715,000

$ 206,409,000

NOTE: Although expenditures decrease from periods 2018 to 2019, it is anticipated that funding for 2019 will be equal or greater than funding presented in 2018. The decrease in 2019 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.

2017-2019 CIP Funding Sources Table 2 FUNDING SOURCE

2017

2018

2019

TOTAL

BWSC Bonds

$ 69,594,000

Rate Revenue

$ 15,877,000 $ 19,366,000 $ 15,051,000 $

MWRA Water Assistance

$ 3,162,000 $

MWRA I/I Assistance

$

TOTAL

$ 89,508,000 $ 77,186,000 $ 39,715,000 $ 206,409,000

$ 55,681,000 $ 22,037,000 $ 147,312,000

875,000 $

1,556,000 $ 583,000 $

2,627,000 $

-

$

50,294,000 7,345,000 1,458,000

NOTE: Although expenditures decrease from periods 2018 to 2019, it is anticipated that funding for 2019 will be equal or greater than funding presented in 2018. The decrease in 2019 is primarily due to the CIP being a one-year cash flow, over a three-year budget period. continued on page 37

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Boston Water and Sewer continued from page 35

Project Highlights

T

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 2017-2019 Capital Improvement Program. Some of the major projects are listed below: • Water Main Replacement Program • Inspection and Rehabilitation of Steel Water Mains • Sewer and Drain Replacement Program • Sewer & Drain Rehabilitation & Replacement in the North End • Sewer Separation and System Improvements in South Boston • 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 90 miles of sewer and drains • Improvements to Information Technology

Projects Associated with the Consent Decree & Water Quality Improvements There 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 • CCTV of Sewers and Storm Drains (Contamination Investigation) continued on page 39

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Boston Water and Sewer continued from page 37 • 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 Audubon Circle • Industrial Facility Stormwater Prevention Program • Citywide Illegal Connection Investigation Program Phase IIV (Contract 16-206-001) • Augment Drain Model to Characterize Water Quality

Water Quality Improvements • Fort Point Channel Water Quality Assessment • Fort Point Channel Implementation of Recommendations • Separation of Sewer House Laterals (Contract 14309-007 & 17-309-013)

• Urban Runoff Water Quality Evaluation • Constructed Wetland in Stormwater Tributary Area • Green Infrastructure Low Impact Development Area I (North Beacon St.) • Green Infrastructure Low Impact Development Area II (Stony Brook) • Green Infrastructure Low Impact Development Area III (Canterbury Brook) • Stormwater Utility Evaluation • Model Improvements • Interactive Training Tool • Wastewater/Drainage Facilities Plan • Owner Correction of Illegal Connections • Design of Constructed Wetland in Stormwater Tributary Area (Daisy Field) • Design of Constructed Rain Gardens • Constructed Rain Gardens NOTE: Full description and forecasted budgets of individual projects are available in the Sewer section. continued on page 40

Asphalt Paving • Culverts / Bridges Bike Paths / Sidewalks • Excavating / Site Development Sand / Gravel / Stone Products • Hot Mix Asphalt / Cold Patch Lawrence-Lynch Corp.

White Bros. – Lynch Corp.

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396 Gifford Street • Falmouth, MA 02540

20 Vineyard Ave. • Oak Bluffs, MA 02557

PH 508-548-1800

FX 508-457-1825

PH 508-693-0845 FX 509-693-0312

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Boston Water and Sewer continued from page 39

T

he Commission completed its Wastewater and Storm Drainage System Facilities Plan in 2015. A major objective of the 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 plan 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 9.0 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 2017-2019 CIP at www.bwsc.org.

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Boston Water and Sewer continued from page 40

BWSC 2017-2018 CIP Upcoming Projects WATER MAIN REPLACEMENT Fenway/Kenmore

3,775 Ft

$3.8M

March 2017

Dorchester/Hyde Park

8,800 Ft

$2.5M

April 2017

Roslindale/Hyde Park

7,850 Ft

$4.7M

South End/Dorchester

5,520 Ft

East Boston

6,225 Ft

West Roxbury

14,300 Ft $5.6M

Aug

2017

Brighton/Dorchester

7,000 Ft

$2.2M

Aug

2017

April 2017

Back Bay/Beacon Hill

4,625 Ft

$2.5M

Nov

2017

$3.0M

May

Roxbury

7,700 Ft

$2.3M

Dec

2017

$2.3M

June 2017

Mattapan/Roslindale

7,130 Ft

$2.0M

Dec

2017

South End

7,800 Ft

$4.0M

Dec

2017

City Proper

5,145 Ft

$3.4M

Jan

2018

Dorchester/Roxbury

7,800 Ft

$2.5M

Feb

2018

East Boston

14,250 Ft $4.1M

March 2018

Jamaica Plain/Mattapan

7,265 Ft

March 2018

2017

Water Main Structural Lining City Proper/Boston Common, Steel Main

1,520 Ft

WATER MAIN REPLACEMENT

$1.7M

April 2017

Sewer and Drain Projects

$2.2M

Sewer and Drain Projects Upper Roxbury 4,100 Ft Separation 2

$5.0M

April 2017

Sewer and Drain R&R

11,800 Ft

$4.1M

June 2017

Installation of Tidegates

6 Locations

$1.2M

June 2017

Cleaning and Inspection of Siphons

4 Locations

$.65M

June 2017

Sewer and Drain Projects

East Boston Separation

3,360 Ft

$1.9M

Aug 2017

East Boston Separation 2 3,200 Ft

$1.2M

Mar 2018

North End Phase 3

1,910 Ft

$1.2M

Oct 2017

Sewer & Drain R&R

5,150 Ft

$3.1M

Mar 2018

Upper Roxbury Separation 3

14,250 Ft

$5.3M

April 2018

Rehabilitation of Large Sewers

1,780 Ft

$2.4M

Dec 2017

Sewer and Drain R&R

22,180 Ft

$7.7M

Feb 2018

$2M

Jan 2018

CMOM Sewer Inspection 60 Miles – 2 Contracts Contracts

APRIL, 2017

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Years of Excellence 1954-2017

A-1 Drilling & Blasting Co. 725 Quaker Hwy. Uxbridge, MA 01569 Rep: Timothy Keefe Tel: (508) 779-7737 Fax: (508) 779-7738 Email: tkeefe77@gmail.com ASSOCIATE

Badger Daylighting

Boston Turnpike Road Shrewsbury, MA 01545 Rep: Chris McGinley Tel: (508) 365-8682 Email: cmcginley@badgerinc.com Website: www.badgerinc.com CONTRACTOR

Howard Stein Hudson

11 Beacon Street Fl. 10 Boston, MA 02108 Rep: Robbie Burgess Tel: (617) 482-7080 Email: rburgess@hshassoc.com Website: www.hshassoc.com ASSOCIATE

Industrial Safety & Rescue

348 Turnpike Street Canton, MA 02021 Rep: Blake Underhill Tel: (781) 828-2049 Email: bunderhill@industrialsafetyrescue.com Website: www.industrialsafetyrescue.com ASSOCIATE

City of Quincy Public Works 55 Sea Street Quincy, MA 02169 Rep: Daniel Raymondi Tel: (617) 376-1959 Fax: (617) 376-1969 Email: draymondi@quincyma.gov Website: www.quincyma.gov AFFILIATE

Tech Hydraulics

226 High Street Randolph, MA 02368 Rep: Robert Tedesco Tel: (781) 986-3905 Fax: (781) 986-3906 Email: rtedesco@gorillahammers.com Website: www.gorillahammers.com ASSOCIATE

Twelve Points Retirement Advisors 9 Pond Lane Ste. 3A Concord, MA 01742 Rep: Francesca Federico Tel: (978) 318-9500 Fax: (978) 318-9505 Email: francesca@twelvepoints.com Website: www.twelvepoints.com ASSOCIATE

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

Serving The Construction Industry Since 1938 75 Federal Street, Boston, Massachusetts 02110-1997 OFFICE 617.426.7300 • FAX 617.426.2245 WWW.DARMODYMERLINO.COM

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SAVE THE

DATE For sponsorships or to reserve your spot call the UCANE office at 617.471.9955 or go to www.ucane.com

UCANE’s 38th Annual

Golf Classic Monday, July 10, 2017 Brookmeadow Country Club Canton, MA

Taylor Oil Company - Corporate Sponsor E. J. Prescott, Inc. - Lobster Clambake Sponsor

McCourt Construction Co. - $25,000 Hole-In-One Dagle Electrical Const. Corp. - $10,000 Putting Contest Rodman Ford Sales, Inc. - Ford F-150 (3-Year Lease) Hole-In-One ATS Equipment, Inc. - Kobelco Excavator SK-30 Hole-In-One & Continental Breakfast HD Supply Waterworks - “Closest to the Pin” Against a Sports Celebrity HD Supply Const. & Industrial White Cap - Helicopter Golf Ball Drop Ritchie Brothers Auctioneers - Photo’s with Sports Celebrity P. Gioioso & Sons, Inc. - Goody Bags

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Richard Wayne, Esq., Hinckley Allen, LLP

Massachusetts Decriminalization of Marijuana: No Forseeable Impact on Employer Anti-Drug Rules and Policies On November 8, 2016, Massachusetts voters approved a ballot question decriminalizing marijuana. Decriminalization took effect December 15, 2016. While numerous legal questions remain unanswered, this new law should have little or no impact upon an employer’s right to promulgate or enforce, rules or policies prohibiting the sale, distribution, or use of marijuana in the workplace or prohibiting employees from coming to work under the influence of marijuana. Likewise, the law does not restrict an employer’s right to drug test employees (subject to pre-existing federal or state law restrictions on drug testing).

​W

ith certain exceptions, prior to December 15, 2016, the possession, distribution or sale of marijuana was a crime under Massachusetts law. In 2012, the Legislature passed a law permitting, with numerous restrictions, the distribution and use of marijuana for medical purposes. In 2016, Massachusetts voters overwhelmingly approved the decriminalization of marijuana. The right to buy marijuana from a licensed distributor and use marijuana for recreational purposes did not and does not limit or restrain the right of employers to bar marijuana possession, use, or sale of marijuana in the workplace, prohibit persons from working under the influence of marijuana, or limit the right of Massachusetts employers to perform a drug test for marijuana.

Federal contractors remain subject to the re​ quirements of the Drug Free Workplace Act. Marijuana remains classified as an illegal drug and controlled substance under federal law, The Controlled Substance Act, 21 USC §821. Numerous federal laws and regulations prohibit the use of controlled substances in the workplace and mandate workplace drug testing for other controlled substances and for marijuana. DOT, 49 CFR Part 40, §40.1151 man-

APRIL, 2017

dates both pre-hire, for cause, and random alcohol drug tests. Federal laws supercede state laws. It is highly unlikely President Trump or Attorney General Sessions or the Republican Congress will advocate for decriminalization of marijuana. ​Unlike Rhode Island, Massachusetts has no statute explicitly permitting or prohibiting employer drug testing. The Massachusetts Supreme Court has issued a series of decisions over the past 30 years which have permitted employer workplace drug testing, provided: (1) the selection of an employee for a test is made in a non-discriminatory manner – for example, no racial profiling; (2) the employee’s privacy is protected; (3) employees can be drug tested post offer, pre-employment; (4) once hired, Massachusetts employees in safety sensitive positions can be tested on a random basis or for cause; and (5) employers can drug test all employees for cause. (Even without an anti-drug and alcohol testing program, employers can terminate employees for a wide variety of poor performance issues. Massachusetts employees are employed at-will. Absent a union contract or discrimination, employees can be terminated with or without continued on page 47

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Contact your local dealer:

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Labor Issues continued from page 45 cause, for good reason, bad reason, or no reason.) If an employer institutes a drug testing program, it is best to have a written program, provide employees with advance notice of the drug testing program, and protocol and train supervisors to detect drug use in the workplace. Employers should utilize a federal DHHS approved testing laboratory. Do not contract with a drug and alcohol testing provider unless its protocols are consistent with federal and state laws. ​Many owners require drug and alcohol testing as a condition of contract award. Wrongfully tested, disciplined or terminated employees could bring a wrongful termination suit. If a contractor adopts and implements the owner’s drug testing program, and it is unlawful or violates a union contract, the contractor would not be insulated from liability brought by an improperly tested employee or his union. Reliance on the owner’s contract and its improper policy is not a defense. ​A union employer, unless barred by its collective bargaining agreement, generally retains the right to drug test new hires. For existing employees, drug testing and drug testing programs, protocols, and potential discipline are subject to bargaining with the union and cannot be unilaterally implemented. A union employee terminated in violation of the National Labor Relations Act or its case law, or a collective

bargaining agreement, can file a grievance or unfair labor practice claim. ​Because marijuana remains unlawful under federal law, the Americans with Disabilities Act does not protect medical marijuana users or entitle them to ADA protection for marijuana use. Likewise, decisions of the Massachusetts Commission Against Discrimination make clear, recreational users of drugs and alcohol are not disabled persons entitled to protection under Massachusetts Fair Employment Practices law. Rehabilitated drug addicts or alcoholics have protection from discipline or discharge if the discipline is based upon their status. ​In sum, marijuana remains a controlled substance. Until further notice, like alcohol, employers retain the right to ban its possession, sale and use in the workplace and to perform drug and alcohol testing consistent with state and federal law. Workplace drug and alcohol rules and drug and alcohol testing policies should be reviewed by company counsel prior to implementation. Terminations for a positive drug or alcohol test result should be consistent with company policy and again, in consultation with company counsel. Lastly, even absent drug and alcohol rules or testing, an employee can be disciplined or discharged provided the discipline does not violate law, a contract, or CBA. n

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

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47

Joe Sr. and crew working on a the Whitman Sewer project in 1991.

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Celco President Joe DiPietro Sr. working on a jobsite in the 1970s.

Bobby Jr. and Joe III are the thrid generation working in the family business.

When Joe DiPietro Sr. and his father-in-law Pasquale DiMascio started Celco Construction Corp. in 1957, they had very little capital, personnel, or machinery. What they did have was a strong belief that with hard work, persistence, and attention to detail, they would eventually succeed. In 1966, Joe’s brother Mario and Joe Letteri joined the company and now, 60 years later, those traits continue to make Celco Construction Corp. of Pembroke, MA, a company DPW directors respect and trust when undertaking water and sewer infrastructure projects. Now entering its third generation, this family owned and operated company shows no signs of slowing down. continued on page 50

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Celco Construction Corp. continued from page 49

A

few years after starting the company, Joe joined UCANE. Celco’s area of expertise was, and still is, in municipal utility construction, including sewer, water, drain, pumping stations, and corrosion control facilities. So it made sense that Joe wanted to be part of a newer (at that time) association where he and other like-minded area underground contractors united to have a voice and to advocate on behalf of the industry, and deal with the day to day issues that arise in running a utility contracting business. Joe’s involvement in UCANE has been passed down through his family over the years, culminating in Tony Borrelli (Joe’s son-in-law) serving as UCANE President in 2015.

Family is synonymous with Celco, or as Tony halfjokingly says, “Sunday dinner is our “Board of Directors’ Meeting.” The company’s Executive Board is made up Joe’s sons, Joe Jr. who came to Celco after graduating from Northeastern in 1985; Bobby, who’s shared love of equipment with his father resulted in him going on the job with his father since he was four, both are also equipment operators; Joe’s nephew, Lou Dipietro (Mario’s son), who is Celco’s Superintendent; and Tony, who is the company’s chief engineer. After 60 years, Joe Sr. is still President of the company, and on many occasions he can be found pulling up to a jobsite, checking on the progress, and where he often opens up his hatchback, breaks open his cutting board and feeds the crew.

Over the years, this closeness and trust has paid dividends when inevitable difficulties arise when trying to complete a job. Working on a watermain contract in the town of Avon back in 2010, a massive ledge overrun required 2500 cubic yards to be excavated when the contract only called for 1100 cubic yards. It took some long nights and determination, but the job was completed on time. Celco also has expertise in special dewatering techniques to overcome ground water and subsoil issues when they arise, most notably when they were working on the Weweantic Sewers in Wareham in 2004.

Their experience and attention to detail has not gone unnoticed. After Celco installed 3.5 miles of water main for Al Renzi and the Sudbury Water District, Sudbury DPW Director Bill Place said that the company’s work “exceeds industry standards for installation and construction. I would highly recommend the firm for water, sewer, or drainage construction projects.” Celco’s largest challenge, however, also happened to coincide with the largest contract the company had ever been awarded. While

Landham Road culvert project in Sudbury.

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Philip Road Easement Sewer project in Lexington. undertaking a job working on interceptor sewers in Raynham, MA, in 1997, the DiPietro family, which also meant most of the company, received the news that Joe Sr. had been diagnosed with cancer. However, following Joe Sr.’s example, the rest of the family pulled together to finish the job and, to no one’s surprise, Joe Sr. made a full recovery.

Since its humble beginnings, Celco has maintained and grown its business by offering water and sewer testing, as well as concrete cutting and coring to go with its municipal utility construction. Their fleet consists of nine excavators (8-50 tons), eight loaders (1CY-4CY), and nine ten-wheel dumps to go along with numerous small vehicles and support equipment. In 2008, the family started a second company, Belco Fuel Company, Inc., which serves the South Shore area and specializes in home heating oil, premium on-road as well as off-road diesel on-site fueling.

While the family dynamic has been the cornerstone of Celco in its 60 year history, it hasn’t been without its (humorous) challenges. As one can imagine, these are usually caused by the generational issues that happen when family works closely together. In the late 1980s,

Bobby took the initiative to install radio’s in all company trucks. This was met with some “resistance” from Joe, who proceeded to threaten to rip each radio out and smash them with a sledgehammer. While Bobby eventually won out, it was not before some very flat transistors were discovered.

Back in 1990, Tony, as the son-in-law recently joining the company, was eager to make a good impression, so he and Bobby presented an aggressive bid to Joe. His response? “You guys gonna go that fast?” Joe asked.

He turned to Bobby and said, “You’re going to dig,” then turned to Tony and said, “and you’re gonna hold the flashlight.” The lesson was quickly learned.

The third generation, Joe III and Bobby Jr., are now being brought into the family business. Joe Sr. told his grandsons that one of the most important things to do in running a construction business is to find good people to work with you. The youngsters then asked their grandfather, “Papa, where do you find good people?” Joe Sr. replied, “Ah, boys, all the good workers are in the cemetery.” It was a very appropriate welcome to the family business for young Joe and Bobby.

UCANE is proud to count Celco Construction Corp. as a long time member of our Association.

Our officers, board, and staff would like to wish them a very Happy 60th Anniversary and continued success for many years to come. n APRIL, 2017

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Protect your crew and a whole lot more.

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APRIL, 2017

_______________________________

_______________________________

2017 N-B-M EQUIPMENT SHOW

__________E-Mail____________________________

WEDNESDAY, MAY 3, 2017 Booth size is 15’ x 20 ‘ (Rain Date: May 10, 2017) No. of Booths Requested ________ Member Price: 1st Booth $400 WELLESLEY ________PUBLIC WORKS ional Member Booths $350 9 - WELLESLEY ________ ROUTE HILLS, MA 02481 ember Booth Cost $525 ________ There will_______# be some new products for you to look at as well as other innovative Tickets @ $30.00 Tickets $________ Public Works Equipment for the spring, summer and fall.

DUE:

$_______________ Name: ______________________________________________________ Chairs and display tables are the responsibility Company: ___________________________________________________ of the exhibitor.

Address: ____________________________________________________ onate a raffle prize, please list the Phone: ______________ Email: _________________________________ ________________________ be a food sponsor, please enter the amount Booth Size is 15’ x 20’ sh to donate $________ of Booths Requested: ______ e included in our event sponsor No. banner _____$200.00 nations will be recognized NBM at theMember show. Price 1st Booth: $400 ______ Additional Member Booths: $350 ______ e make check payable and remit with application

Non-Member Booth Cost: $525 ______

to: NBM Highway Association Luncheon Tickets @ $30.00: No. of Tickets:______ $_______

PO Box 547

Norwood, MA 02062 AMOUNT DUE: $___________ e questions,(Please pleasenote: call NBM Chairs508-528-NBM0(6260) and display tables are the responsibility of the exhibitor.) or If you wish to donate a raffle prize, please list the item: Marc Valenti 781-274-8350 rvations will___________________________________________________________ be honored upon payment.

If you wish to be a food sponsor, please enter the donation amount: $______ LEASE CALL 508-528-6260 IN CASE OF INCLEMENT you wish to included inWILL our event R.YOU WILL BEIfADVISED IFbe THE SHOW BE sponsor banner: $200 ______ Your donations will be recognized at the show.

HELD ON THE RAIN DATE. Please make check payable and remit with application to: NBM Highway Association • P.O. Box 547 • Norwood, MA 02062 If you have questions, please call NBM 508-528-NBM0(6260) or Marc Valenti 781-274-8350 Reservations will be honored upon payment.

(NOTE: PLEASE CALL 508-528-6260 IN CASE OF INCLEMENT WEATHER. YOU WILL BE ADVISED IF THE SHOW WILL BE HELD ON THE RAIN DATE.)

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53

We know you face many risks above and below ground.

Rogers & Gray Insurance, a proud UCANE member, can help keep your business and employees safe.

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Trump Proposal to Fix U.S. Water Infrastructure Invites Large Role for Private Investors Private-public partnerships, a potential funding source, are complicated and controversial.

The role of investor-owned companies and private equity firms in financing, operating, and maintaining U.S. water infrastructure is a source of renewed debate. Photo © J. Carl Ganter / Circle of Blue

By Brett Walton, Circle of Blue

P

resident Donald Trump, fashioning himself the builder-in-chief, promised to invest $US 1 trillion to make America’s potholed highways, unstable bridges, leaky water systems, strained ports, and brittle levees whole again. The pledge is more a slogan at this point. Still, Trump and his advisers are adamant that such a big bet on the nation’s arteries of commerce, health, and safety come with a large role for investor-owned companies and equity firms to form public-private partnerships, or P3s.

More common in the transportation sector, P3s have garnered support in Congress from both political parties as a source of funding to fix America’s water infrastructure. Advocates tout better services and lower operating costs. Private partners are more readily able to take on the financial risk of construction delays or faulty equipment. Backers also point to a pile of private money that could address the $US

APRIL, 2017

633 billion in spending that the U.S. Environmental Protection Agency estimates that water utilities will need in the next decade to maintain service.

There is little debate about the urgency of modernizing America’s transport, transmission, and water supply networks. Many have surpassed retirement age.

Others, in an era of powerful storms, renewable energy, urban growth, and extreme temperatures, do not match changing environmental and economic conditions.

But the repair bill, especially for water, arrives in the offices of municipal and county leaders who are sometimes reluctant to raise rates or taxes to pay for the remodeling. Local officials, facing state and federal water pollution mandates, limited budgets, maxed out debt loads, and the potential for citizen wrath at rate increases, feel the money pinch. They understand the need to invest in water but are recontinued on page 57

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Trump Proposal continued from page 55 stricted in their response.

These formidable trends, moving on a collision course, are the reason that municipalities implore the federal government to do what it did until the mid1980s during the post-Clean Water Act expansion of the nation’s wastewater treatment facilities, which is to pick up much of the tab.

But those days are long gone and Republican lawmakers, trained and fed on a political formula that heaps scorn on any mention of increasing tax revenues for public purposes, have indicated no particular interest in ponying up for infrastructure spending.

Thus the emergence of public-private partnerships in American municipal water supply systems.

Depending on how they are counted and defined, there are anywhere from five dozen to nearly 2,000 public-private partnerships in the U.S. water sector.

They aren’t especially popular, though, and generate storms of opposition.

Opponents argue that P3 contracts, though they often provide much needed upfront payments to municipal governments, are a quick-fix for communities in financial distress. Higher water rates are a burden to residents, and multi-decade contracts are difficult to renegotiate. Critics also cite lawsuits against con-

tractors such as Veolia for alleged management failures in two states.

Michigan filed a civil suit in June 2016 against Veolia and Lockwood, Andrews, and Newman, an engineering services firm, for negligence and fraud related to the Flint lead scandal. The suit claims that the defendants ignored the warning signs of corrosion in the city’s water system. The Flint lawsuit followed the Massachusetts attorney general’s lawsuit against Veolia in April 2016 for failure to maintain the wastewater system in the town of Plymouth.

More recently opponents have criticized a new target: the WIFIA program, a low-interest loan program approved by Congress in 2014 and administered by the U.S. Environmental Protection Agency.

Targeting at large projects of regional significance, WIFIA is open to P3s, and the window for submitting letters of interest for the initial round of funding — estimated to finance up to $US 2 billion worth of projects — opened in January.

Opponents say that the government ought not to subsidize the private sector when there are existing federal water infrastructure programs that offer financial aid to the poorest communities. Rural utilities in particular favor expanding EPA’s state revolving funds and USDA’s water and wastewater grants continued on page 59

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Trump Proposal continued from page 57

A new study from the University of North Carolina’s Environmental Finance Center, one of the country’s foremost organizations for analyzing utility finances, adds nuance to this debate. It found “neither miracles nor devastation” for utility finances in nine P3 deals it studied in the United States and Canada, according to Jeff Hughes, the report author.

because they are the cheapest, and sometimes only, source of financing for communities too small to issue low-interest municipal bonds.

Investors are excited but wary of the new program. They told Public Works Financing, a newsletter that tracks private sector deals, that EPA’s endorseNearly every community in the study touted the ment on WIFIA could help jumpstart a slow-growth potential for cost savings. But the report did not find P3 market that has seen no sizable contracts in the much evidence that that was the case. In fact, the last two years. But some of the program’s restrictions contracts were complex documents that required on how quickly money can flow to private partners Burke Wicked HD 4.625 2:18 PM Page 1 oversight to execute. Utilities are a potential hang up.x 7.5 9-16:Dennis K. Burke 10/24/16 significant time and instead benefited from higherquality facilities, more responsive service, guaranteed performance targets, and money to pursue municipal goals not related to water service such as paying for pension benefits.

Hughes, the center’s director, notes that private dollars, while helpful in certain circumstances, are not a “magical solution” that will heal deep-rooted problems that caused some of the utilities in this group of nine to seek out a private partner: mismanagement, financial distress, or a public agency’s unwillingness or inability to raise enough revenue to maintain systems.

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Patrick Leahy and Bernie Sanders, a Democrat and an Independent from Vermont, and Senator Charles Schumer, a Democrat from New York, published their own blueprint for rebuilding U.S. infrastructure. The $US 1 trillion Premium Diesel Fuel, Motor Oil and Gasoline plan includes $US 110 billion in P.O. BOX 711 • TAUNTON, MA 02780 • 1-800-289-2875 • WWW.BURKEOIL.COM grants and low-interest loans for drinking water and sewers but also Quality Products and Dependable Service for Over 50 Years continued on page 61

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Trump Proposal continued from page 59 endorses an expansion of the WIFIA program.

The exact ratio of public to private funding in a federal infrastructure package will be worked out in the coming months. President Trump will send his budget proposal to Congress on March 16 and flesh out his infrastructure plan later this spring. Hughes cautions that when determining a role for the private sector, elected and utility leaders should not assume that setting loose herds of private capital will automatically result in success.

“The idea that water utilities need capital and the private sector has capital and we just need to connect the two is a dangerous oversimplification,” Hughes told Circle of Blue. P3 deals are sophisticated financial and technical arrangements that, if welldesigned, can result in public benefits, but they aren’t a silver bullet solution. In other words, Hughes said, the relationship between private capital and public infrastructure is not like putting a plant in water. “It’s not just pour here and watch it grow,” Hughes said.

What Does Grow?

The concept for the UNC Environmental Finance Center’s study — an autopsy of whether promised financial results were actually delivered — piqued Hughes’ interest. Many assessments of P3s, he thought, were inadequate. Proponents such as the National Council for Public-Private Partnerships produced cheerleading reports that highlighted mostly successes. On the other side, Food and Water Watch, which campaigns for public water, and similar groups view with suspicion the private sector’s advance into municipal assets.

The study, funded by the EPA, sheds light on how well partnerships have performed by examining an aspect of P3s that is often used as a selling point: that they are better for a utility’s bottom line.

Researchers drew lessons from eight case studies in the United States and one in Canada. They discovered exaggerated promises and unforeseen pitfalls as

well as projects that were successfully implemented.

“We found much more nuanced outcomes than we had been led to believe from a general review,” said Hughes, the center’s director.

The study examined a variety of partnerships designed to execute midsized water utility projects, those in the $US 75 million to $US 200 million range: • Concession agreements in which a private entity managed the entire water system or a particular facility • Design-build-operate arrangements in which a private group built and operated a new treatment plant but the public agency retained ownership • Service purchase agreements in which a private entity built a desalination plant or water recycling facility and sold water to a public utility • Partnerships between two local governments Hughes stressed that the cases studied were not privatization deals. None of the utilities sold existing assets. In all cases, ownership of the system remained in public hands.

A number of lessons emerged from this collection.

One, private capital is not cheap. Equity partners expect a return on investment of between 10 and 20 percent, a far higher interest rate than the roughly two percent that a public utility would pay through the state revolving fund, a federal loan program for water infrastructure, or the five percent from a tax-exempt municipal bond.

In none of the nine examples was private equity the exclusive financing source. Most used a mix of municipal bonds, bank loans, and government loans that brought the blended interest rate significantly lower than if private equity were the only source of capital.

Private entities expect a higher rate because they take on the risk associated with construction delays, permitting challenges, or simply trying something new — an alternate energy source perhaps or a facilcontinued on page 63

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Trump Proposal continued from page 61 ity design that might cost more to build but will reduce long-term operating costs.

Hughes said that policymakers and public officials should not confuse two related but separate concepts: capital and revenue. What might appear for U.S. water systems to be a capital problem — lack of upfront money — is actually an issue of revenue: an inability to pay back what was borrowed. “For many systems the problem is not a lack of capital but the ability to raise revenue sufficient to compensate capital providers,” Hughes explained.

Water rates are often controlled by elected officials who often are unwilling to approve higher expenditures, especially in a poor city where affordability is already a concern. Kevin DeGood, director of infrastructure policy at the Center for American Progress, made the same point about capital and revenue at a U.S. House committee hearing on March 9. “For many cities and water utilities, access to affordable credit is not the binding constraint. Instead, there is a shortage of local revenue to support new project debt,” he said.

No Free Lunch

schedule established in the contract. Allentown used the cash to pay down pension obligations.

In a separate case, Bayonne, New Jersey, entered into an agreement in 2012 with United Water, a water services company, and KKR, a private equity firm, to operate and maintain the city system for 40 years. Bayonne used more than 80 percent of its $US 150 million upfront lease payment to pay off water utility debt that had accumulated because of inadequate revenue. Bayonne also used $US 18.5 million from the deal to cover general operating expenses in the city budget and to slow the increase in local property taxes. In both examples, the study notes, P3s provided community benefits beyond the water system, largely by patching budget holes. These benefits flowed to certain community members — pensioners and property owners — but the cost was shifted to water customer bills.

The utilities in the study also used P3 contracts to lock in performance expectations and hold the private entity responsible for actions that public officials were unwilling to do. This was the case in Bayonne, which hadn’t raised rates in the six years before its P3 deal despite increasing water utility debt and declining water sales. The private partners agreed to spend $US 2.5 million per year, adjusted for inflation, over the 40-year contract on capital improvements and $US 500,000 per year on maintenance.

“What the partnership does is remove the need for political will for the maintenance of the system,” Tim Boyle, executive director of Bayonne Municipal Utilities Authority told Wharton Business School researchers.

“It’s hard to imagine politicians committing an equal amount of money to maintaining our water supply.” continued on page 65

The second conclusion from the UNC study is that you pay for what you get. Many P3 deals resulted in significant rate increases, but the increase was linked to better customer service, repairs to leaky pipes, and new facilities. The UNC researchers found no evidence that improved service and new investment in a P3 deal can happen while reducing rates at the same time.

Rialto, California, for instance, anticipated a 115 percent rate increase over four years after signing a 30-year concession agreement in 2012. But the city also was able to pay down debt, repair the wastewater system, and store money in MBO Precast Inc. reserve funds.

4 Marion Drive • Carver, MA 02330 Third, deals are frequently T: 508-866-6900 • F: 508-866-5252 about more than infrastructure. www.MBOPrecast.com Several of the cities in the study used a P3 deal to put out fiscal fires Stone Strong Retaining Wall Systems in other municipal departments.

Manholes / Catch Basins / Custom Structures Allentown, Pennsylvania, for one, executed the equivalent of a home Septic Tanks / Leaching Products mortgage in its concession agreement with the county government.

The city converted some of the equity value in its water system into a $US 211 million lump sum payment. In return, the Lehigh County Authority operated the water and sewer system and collected customer payments based on a rate

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Trump Proposal continued from page 63 Hughes said the contract was a way of guaranteeing investments that local officials might not make.

“It’s a way of protecting themselves against themselves,” he remarked. Like giving the car keys to a sober friend before going to the bar.

Fourth, P3s are buffeted by the same declines in water demand that are destabilizing water utility finances in general. None of the private partners in the nine case studies was willing to take on the risk of losing revenue because of reduced demand. If water use projections are off, and utilities frequently overestimate demand, then revenue will fall short. If that happens, rate increases beyond what was sold to the public become necessary.

This happened in Phoenix, where water demand in 2010 was 16 percent lower than had been forecasted a decade earlier. The 40 million gallons of water Phoenix had contracted to buy each day from the Lake Pleasant Water Treatment Plant was nearly superfluous. The plant, built using a P3 model, was approved when water demand expectations had been much higher. In the end, Phoenix water managers were able to renegotiate the contract to 25 million gallons per day, a savings to the city of $US 1.1 million per year.

Declining demand also plagued Bayonne, where a four percent rate increase in 2015 was followed by a 13 percent jump in 2016. The reasons, according to the study, were complex. New water meters mandated by the contract were more accurate and allowed for earlier detection of leaks, thus less water was lost.

The utility authority, meanwhile, did not put any of its concession money into a rate stabilization fund that would be tapped when revenue was short.

Above all, said Hughes, well-designed P3s offer a number of benefits for utilities and communities.

They can transfer the risk of construction delays and overruns to private entities and provide short-term financial flexibility. The deals can also result in facilities that employ new technologies that are costlier up front but deliver long-term savings from lower operating expenses. But P3s are not a cure all. Revenue expectations ought to be moderated by keeping an eye on the persistent decline in urban water demand.

Writing a fair contract that ensures the right investments are made is not easy and borrowing costs are higher if using private capital, Hughes emphasized.

“I think there is a role for private capital, particularly for larger projects, but it’s not going to be the missing source of capital for many systems,” he said.

Reprinted with permission. n

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Step Right Up...UCANE’s Sixth Annual Trade Show was a Hit!

W

ith such active and enthusiastic participation, UCANE just may need to find a larger venue next year for its 7th Annual Trade Show. As it has done for the last five years, UCANE held its trade show at the Sheraton Four Points Hotel in Norwood, MA, prior to the March Underground Construction Forecast Dinner Meeting, with the primary goal to support our Associate Members who advertise in Construction Outlook magazine.

The draw for the 43 companies exhibiting is the attendance of underground utility company owners, estimators, foremen, and their key employees. In turn, the contractors’ are drawn to the dinner meeting to hear the speakers from the MassDEP, MWRA, and BWSC present their forecasts for water and sewer projects for the upcoming construction season and beyond.

To exhibitors, this is a great 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. The feedback from the participants was overwhelmingly positive as many called the office or emailed that they intend to participate next year.

Everyone who attended our Trade Show received promotional gifts from our vendors, and some, if they were very lucky, received one of the great prizes donated by trade show exhibitors. The prizes included two Red Sox Opening Day tickets, courtesy of Taylor Oil Company; three $100 American Express Gift Cards from HD Supply Waterworks; a $500 Gift Certificate towards truck lettering or signage from Smith Print/Webster One Source; a $200 Gift Certifi-

cate from Milton CAT; a Bose Bluetooth speaker donated

by Rain for Rent - New England; two pair of Red Sox tickets 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.; two sets of four Bruins tickets from Concrete Systems, Inc.; two 1” Makita AVT Rotary Hammer Drills from HD Supply Construction & Industrial White Cap; a pair of Bruins tickets from Equipment4Rent; a pair of Red Sox Tickets from Eastern States Insurance Agency, Inc; and a pair of Red Sox tickets from EJ. UCANE’s Trade Show is our way of thanking our Construction Outlook 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,

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state agency heads, legislators, and many companies and groups in the water protection, management, and environmental communities. Construction Outlook magazine is a vehicle for companies to create name recognition and have their latest products and services seen by many company and municipal decision makers. In addition, our advertisers are featured on a rotating basis in our monthly enewsletter, and on our website at no additional cost to them. It’s obvious by their continued support that the most successful companies in our industry understand that our magazine helps to grow and expand their businesses.

If your company would like to participate in UCANE’s 7th Annual Trade Show next year, please contact Suzanne at the UCANE office for Construction Outlook magazine advertising opportunities. n

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Thank You to All of Our Trade Show Participants ATS Equipment, Inc. Acme Shorey Precast Co. Inc. Dennis K. Burke, Inc. C & S Insurance Agency ConConn Concrete Systems, Inc. Dedham Recycled Gravel EJ Eastern States Insurance Agency, Inc. Equipment4Rent Exit Strategies Group LLC Ferguson Waterworks HD Supply Const. & Industrial White Cap HD Supply Waterworks A. H. Harris Construction Supplies Kenworth Northeast Lorusso Heavy Equipment, LLC MBO Precast, Inc. Mabey, Inc. McGill Hose & Coupling, Inc.* MiltonCAT North East Shoring Equipment, LLC Ocean State Oil E. J. Prescott, Inc. Rain For Rent – New England Ritchie Brothers Auctioneers Scituate Concrete Products Corp.

Scrap-It, Inc. Shea Concrete Products, Inc. Starkweather & Shepley Ins. Brokerage, Inc. Systems Support Corporation Taylor Oil Company Tech Hydraulics Tonry Insurance Group, Inc. Travelers* Triumph Modular TruckTap United Concrete Products, Inc. United Rentals Trench Safety Webster One Source /Smith Print C. N. Wood Company, Inc. Woodco Machinery, Inc. Xylem Dewatering Soultions, Inc. * Company Photo Unavailable (See article on page 16 for additional Trade Show photos.)

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John E. Merchant, CPA IN THIS ISSUE

Cullen, Murphy & Co., P.C.

• Dealing With an IRS Audit • Deciding About a Vacation Home • ESOPs as Retirement Plans

I

Dealing With an IRS Audit Dealing With an IRS Audit

RS data indicate that fewer than 1% of all individual income tax returns are audited each year. That’s true, but some taxpayers are more vulnerable than others. For starters, the IRS is more likely to audit taxpayers who report high incomes because that’s where larger amounts of underpaid taxes might be found.

The latest numbers from the IRS reveal that about 1.5% of all taxpayers with income in the $200,000-$500,000 range are audited. With income from $500,000 to $1 million, the percentage increases to around 3.8%, while more than 8.4% of taxpayers with seven-figure incomes may face IRS questions.

In addition, certain taxpayers face more scrutiny because of how they earn their living. Self-employed individuals— generally, those who file Schedule C, Profit or Loss From a Business—may be audited more than other taxpayers. The same is true for professionals and business owners, who could see their business as well as their individual tax returns examined. The bottom line is that taxpayers with relatively high incomes as well as those who have control over their workplace bookkeeping can expect to face IRS queries at some point.

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Smart Tax, Business & Planning Ideas fr

or Loss From audited more The same is tr and business see their busin individual tax The bottom li with relatively as those who workplace bo to face IRS qu

Triple threa

IRS data indicateTriple that fewer than 1% If you’re wondering Threats of all individual income tax returns are respond when you’re If you’re wondering how you should respond audited each year. That’s true, but some is straightforward: C when you’re audited, the answer is straightforward: taxpayers are more vulnerable than others. let you Call your CPA’s office. They will let you know how to know how to For starters, IRS is more likely to audit help assistance proceed, and the offer assistance if professional is if professi taxpayers who report high incomes because Nevertheless, receivi warranted. Nevertheless, receiving correspondence that’ s where larger amounts of underpaid from the IRS (or fro from the IRS (or from your state’s tax authority) can taxes might be found. authority) can be as be a stressful experience. The following summary of latest numbers from the IRSareveal The following summ auditThe types may ease the pressure bit, by spelling about of all taxpayers with ease the pressure a b outthat what will 1.5% be required: income in the $200,000-$500,000 range willthe be required: Correspondence audit. These audits are ■ ■ Correspondence a are audited.

With income from $500,000 most common. Generally, they relate to a relatively the most common to $1discrepancy, million, the percentage to minor such as increases faulty paperwork.

You often can3.8%, respond mailthan to verify an item on your to a relatively min around whilebymore 8.4% of taxtaxpayers return and have toincomes meet anyone from faulty the paperwork withnever seven-figure may IRS. by mail to verify a face IRS questions. return and never In addition, face involve a visit Office audit.certain Thesetaxpayers examinations to more an IRS office, where meet from the IRS. scrutiny because of you’ll how they earnwith someone from the agency.

In a typical situation, you’ll ■be in- audit. Thes ■ Office their living.

Self-employed individuals— generally, those who file Schedulecontinued C, Profit on pagea visit 73 to an IRS o

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Financial Management continued from page 71 formed of the issue involved and instructed to bring documents to support what you reported on your tax return.

If you’ve deducted substantial charitable contributions, for example, you could be asked to bring canceled checks, acknowledgment letters from the recipients, and other required materials.

Field audit. Here, the IRS will visit your home or office for the audit. These audits might be more far-reaching, or the examiner might want to check on something specific, such as home office deductions you’ve claimed.

Know Your Rights For any type of audit, professional assistance can be valuable. Indeed, you’re entitled to have a CPA, an attorney, or an enrolled agent represent you at an office or a field audit. In such a situation, it may be possible for the audit to take place at your CPA’s office.

You also can receive help in requesting a postponement, if you need time to gather your records.

If you must be present during the audit, you should answer all questions accurately, but there’s no need to volunteer any information that the IRS does not request. If an appeal of IRS findings seems warranted, your CPA can handle that as well.

Practice Prudence

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• If the IRS proposes to assess tax against you, it must provide a letter with an explanation of the entire process from examination (audit) through collection, and explain that the Taxpayer Advocate Service may be able to assist you.

• This IRS letter must tell you about a possible review by an independent Office of Appeals.

• Help with Understanding Your IRS Notice or Letter is available online at IRS.gov.

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Financial Management continued from page 73

W

Deciding About a Vacation Home

about how often youhether can expect “same you live in the thawing North time, next year” family or gatherings. in the always mild South, the on-

set of spring leads to thoughts of Cost considerations summer vacations. After all, next month As is the case realwhich estate includes Memorial Day, willwith be any May, purchase, you’ll want to buy a desirable often considered the unofficial beginning vacation home at a reasonable price, of weekend and weeklong getaways. one that’s not higher than comparable At Be this time, you places in the area. aware that the costmight be weighing the purchase of a second home specifiof a vacation home goes well beyond for vacations. aretosome thehome prices have the initial cally outlay. You’ll probably needHereeasy With that in mind, you should predict:of some In today’s world, though, youngsters often think about, you can make to furnishissues the home,to from bedding to sosoared know the current tax treatment of have in recent years,awhereas others other obligations and opportunities, from soccer bookcases.well-reasoned If you buy a place that’ s fully second homes. Taxpayers who itemize have not recovered from the trauma of decision. practice to wilderness tours. Again, be realistic about

or partially furnished, that likely will typically include the 2008-2009 housing crisis. howProfits often you deductions can expect “samecan time, nexttheir year” Extent of Use add to the purchase price—and you’ll be costs for property tax and any mortgage from a vacation home purchase may family gatherings.

If you else’ buys taste. a vacation home, howbut often living with someone interest. The tax exclusion for capital result, youwill can’tyou count on them.

Cost use your it? A primary beach house or a lakefront cabin that’s, say, If you own residence, gainsConsiderations on a home sale (up to $250,000, 50 miles from your primary residence may offer an Tax treatment you’ll realize the other costs involved in or $500,000 on aestate joint return) doesyou’ll As is the case with any real purchase, opportunity regular the other To modify thehand, familiarif saying, you owning a second home.for They includevisits. On not apply to second homes. want to buy a desirable vacation home at a However, reasonable you live in Pennsylvania and buy a place in Maine, one that’syou not can higher comparable places shouldn’t let the tax tail wagprice, the vacation property tax, homeowners insurance, sell than your primary residence andin travel constraints may limit the amount of time you’ll thetoarea.

Be aware that the cost of a vacation home home dog.

Buy (or decide not buy) a utilities, maintenance, and possibly move into your vacation home for at spend at your vacation home. continued on page 77 second home because of how you’ll use dues to a community association. least two years before selling the vacation In the same vein, buying a second home requires it and your cost-benefit outlook.

Any tax You can compare those costs with the home, but current tax law will limit you a certain investment, emotional as well as financial. savings you’llvacations enjoy from a purchase will to counting only a portion of the home expense you’ d incur by renting a house Are you sure you’ll want to spend frequent be a pleasant byproduct. for annualinvacations or going to hotels, sale gain on the former vacation trucks , ihome nc. the same place, year after year? You may be com- Downplaying MinuteMan thehome, tax aspects especially important Routewhen when and fortable where you decide to travel. calculating the20, exclusion.

1, Walpole, MA  Route Shrewsbury, MA going away to your own whereis you’ll 800.225.4808  Shrewsbury: 800.668.3114 now, with such uncertainty about futureWalpole: Of course, buying your own vacation Different tax treatment may apply be assured of sleeping on your sheets and eating the www.MinutemanTrucks.com  Certified MBE food you’vetostored your refrigerator.

Some President people Trump and tax legislation. home offers a chance benefitinfrom depending on if you rent your second will value the familiarity; however, may prefer the others Republicans in Congress have said property appreciation.

Long term, many home for less than or more than 15 days the excitement and adventure of seeing new places, they want major changes, but as of this people have enjoyed gains from real during the year. Again, the numbers take time off from their year-round routine. estate, andwhen that’sthey certainly the case if you writing, we don’t know precisely what may be changing, depending on what play role in tax de-law, or what the will be in aany new buy in the rightFamily area, atcircumstances the right price.also can happens this year in Washington. g about a vacation might envision effective dates will be.a However, ciding real estate markets are nothome. You place where children and grandchildren come during summer vacations and school holidays. Such visits can be memorable.

ESOPs as Retirement Plans

Among the retirement plans that small the company funds the plan by the company’s shares are not publicly businesses can offer to their workers contributing shares of its stock, or cash traded, annual independent appraisals Crushed Stone & State Specified Dense Graded Base are employee stock ownership plans to buy those shares. track the value of the company’s shares, Manufacturer & Installer of Bituminous Concrete Products: • 2 LOCATIONS: Walpole & All Makes Truck Parts (ESOPs). As the title indicates, an Uniquely among retirement plans, which in turn• determine the value of Shrewsbury, MA Wholesaler M.B.S. Construction Services/Paving ESOP is a process for transferring ESOPs can be leveraged. In one each participant’ s ESOP holdings.

• Ford & International • Over $2.4 Million Parts in • Class 4-8 Truck Sales New Stock ownership of the company to scenario, the ESOP borrows money Current law calls for gradual vesting & Used • 24/7 Mobile Maintenance Holden Trap Rock Co. Berlin Stone Co. • Gas, Diesel, &of Hybrid • Factory Trained and N.that Main work Street as a 332 Sawyer Hill Rd. employees. How2077 does from a financial institution or from all employer contributions over six Options Certified Technicians 122 A) (off Rt. 62 & 495) retirement plan?(Route another party, then uses the borrowed years, vestingBody at three • Complete Medium & or complete • Full-Service Shop years. & Holden, MA 01520 Berlin, MA 01503 Support Paint Booth In some ways, an508-829-5353 ESOP is similar funds to purchase shares of the Heavy-Duty Truck When employees leave the company, at Tel: Tel: 978-838-9999 Fax:plan 508-829-9346 Fax: 978-838-9916 SALES  PARTS  LEASING & RENTAL to a profit-sharing (see the CPA employer’ s stock. Once the shares arein SERVICE retirement or sooner, they receive their Client Bulletin, January 2017), in which the plan, they are allocated to accounts vested shares. The employer is required the company makes cash contributions. of participating employees, generally all to buy back the shares, at the currently With a “vanilla” or unleveraged ESOP, full-time workers over age 21. Assuming appraised price. Therefore, a long-time APRIL, 2017

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Financial Management continued from page 75

home sale (up to $250,000, or $500,000 on a joint return) does not apply to second homes. However, you can sell your primary residence and move into your vacation home for at least two years before selling the vacation home, but current tax law will limit you to counting only a portion of the home sale gain on the former vacation home when calculating the exclusion.

goes well beyond the initial outlay. You’ll probably need to furnish the home, from bedding to bookcases.

If you buy a place that’s fully or partially furnished, that likely will add to the purchase price—and you’ll be living with someone else’s taste.

If you own your primary residence, you’ll realize Different tax treatment may apply depending on if the other costs involved in owning a second home. you rent your second home for less than or more than They include property tax, homeowners insurance, 15 days during the year. Again, the numbers may be utilities, maintenance, and possibly dues to a comchanging, depending on what happens this year in munity association. You can compare those costs with the expense you would incur by renting a house Washington. for annual vacations or going to hotels, when and continued on page 78 where you decide to travel.

Of course, buying your own vacation home offers a chance to benefit from property appreciation.

Aon Risk Solutions Construction Services Group Long term, many people have enjoyed gains from real estate, and that’s certainly the case if you buy in the right area, at the right price.

However, real estate markets are not easy to predict: some home prices have soared in recent years, whereas others have not recovered As the leading provider of risk solutions to the construction industry, Aon from the trauma of the 2008-2009 Construction Services Group partners with clients to provide insighful housing crisis. Profits from a vacaanalysis, strategic direction and creative solutions backed by our dedicated tion home purchase may result, but team of construction experts and the strength of Aon’s global network. you can’t count on them.

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Tax Treatment

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To modify the familiar saying, you shouldn’t let the tax tail wag the vacation home dog. Buy (or decide not to buy) a second home because of how you’ll use it and your costbenefit outlook. Any tax savings you’ll enjoy from a purchase will be a pleasant byproduct. Downplaying the tax aspects is especially important now, with such uncertainty about future tax legislation. President Trump and the Republicans in Congress have said they want major changes, but as of this writing, we don’t know precisely what will be in any new tax law, or what the effective dates will be.

With that in mind, you should know the current tax treatment of second homes. Taxpayers who itemize deductions typically can include their costs for property tax and any mortgage interest. The tax exclusion for capital gains on a

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Financial Management continued from page 77

A

ESOPs as Retirement Plans

mong the retirement plans that small businesses can offer to their workers are employee stock ownership plans (ESOPs). As the title indicates, an ESOP is a process for transferring ownership of the company to employees. How does that work as a retirement plan?

In some ways, an ESOP is similar to a profit-sharing plan (see Financial Management, January 2017), in which the company makes cash contributions. With a “vanilla” or unleveraged ESOP, the company funds the plan by contributing shares of its stock, or cash to buy those shares.

Uniquely among retirement plans, ESOPs can be leveraged. In one scenario, the ESOP borrows money from a financial institution or from another party, then uses the borrowed funds to purchase shares of the employer’s

stock. Once the shares are in the plan, they are allocated to accounts of participating employees, generally all full-time workers over age 21. Assuming the company’s shares are not publicly traded, annual independent appraisals track the value of the company’s shares, which in turn determine the value of each participant’s ESOP holdings.

Current law calls for gradual vesting of all employer contributions over six years, or complete vesting at three years.

When employees leave the company, at retirement or sooner, they receive their vested shares. The employer is required to buy back the shares, at the currently appraised price. Therefore, a long-time ESOP participant could retire with a substantial amount from the plan.

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Financial Management continued from page 78 Advantages to Owners Why should business owners consider an ESOP? Some studies indicate that employees become motivated to excel when they become employee-owners.

They know that good corporate results will boost the annually appraised value of their shares, and ultimately provide a bigger payout. Strong results will benefit major shareholders as well.

What’s more, ESOPs offer some exceptional tax benefits to the sponsoring company and its principals.

Example 1: A local bank lends money to an Area to buy common Bostondollars ESOP, which uses those stock from ABC Corp, Locations the ESOP sponsor. Going for-

ward, ABC makes tax-deductible contributions to the ESOP, which uses that money to repay the bank loan.

With such an arrangement, ABC effectively borrows money through the ESOP, then deducts the principal and interest payments made on the ESOP loan, rather than just the interest payments.

In addition to such tax advantages, an ESOP provides a way for business owners to sell their shares at appraised value, if there are no other obvious buyers. In some situations, the owners may be able to defer taxes on a profitable sale of shares to an ESOP, perhaps indefinitely.

Example 2: Alice Baker sells 50% of her Alice Baker Co. stock to her company’s ESOP for $2 million. Her basis in those shares is $200,000, giving her a taxable gain of $1.8 million. Alice reinvests the sale proceeds in qualified replacement 2 Dexter Street property, which includes stock in Everett, MA 02149 other U.S. corporations. Alice can Boston Area Boston Area defer tax on that $1.8 million gain Locations Locations 431 Second Street until she sells her qualified reEverett, MA 02149 placement property.

2 Dexter Street 2 Dexter Street

Everett, MA 02149 Everett, MA 02149 If her company is an S corporation, however, Alice won’t 431 Second Street 431 Second Street qualify for the tax deferral on the Everett, MA 02149 Everett, MA 02149 gain from the sale of her stock to BOSTON AREA LOCATIONS

the ESOP. However, ESOPs may 2 Dexter Street 431 Second Street offer other tax benefits to S corEverett, MA 02149 Everett, MA 02149 porations, such as tax exemption for any profits attributable to ESOP ownership.

ESOPs Can Be Expensive

Business owners sponsoring ESOPs may realize advantages, but there are drawbacks as well.

Payouts to departing employMinichiello Bros./Scrap-It, Inc., ees, for share buybacks, can be Minichiello Bros./Scrap-It, Inc. a cash drain. The same is true Serves over 2500 customers a week and is one of New England’s largest Serves over 2500 customers a week and is one New England's largest buyers, for regulatory requirements, inbuyers, sellers, and processors of scrap metal.

Forour overgoal 60 years goal sellers and processors of scrap metal. For over 60 years has our remained cluding annual appraisals. In adhas remained the same to provide the best prices in the industry along with the same - to provide the best prices in the industry along with top notch top notch customer service!

Call Fred Rogers at 617-595-5505 dition, ESOP participants lack customer service! Call Fred Rogers at 617-595-5505 diversification in their retirement Minichiello Bros./Scrap-It, Inc.,

Minichiello Bros./Scrap-It, Inc., plans because the primary holdServes over 2500 customers a week and is one New England's largest buyers, ing is the sponsoring company’s sellers and processors of scrap metal.

For overa60week years ourisgoal Serves over 2500 customers and onehas Newremained England's largest buyers, stock.

Therefore, companies that he same - to provide the best in theof industry along with notch sellers and prices processors scrap metal.

Fortop over 60 years our goal has remained sponsor ESOPs also may offer a customer service! the Callsame Fred -Rogers at 617-595-5505 to provide the best prices in the industry along with top notch retirement plan such as a 401(k), customer service! Call Fred Rogers at 617-595-5505 where employees can defer some

of their salary (and the tax on that income) in order to acquire other Turn your metal into money today! investments.

Turn your metal into money today!

Reprinted from CPA Client Minichiello Bros. Inc./Scrap-It Inc. Minichiello Bros. Inc.,/Scrap-It Inc. Bulletin. n

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Advertisers’ Index APJ Equipment Corp........................................................70 ATS Equipment, Inc. ....................................................... 18 Acme Shorey Precast Co., Inc......................................... 12 Aggregate Industries - N.E. Region.................................58 American Shoring, Inc.................................. Ins. Back Cvr. Aon Construction Services Group...................................77 Boro Sand & Stone Corp................................................. 74 Brennan Consulting......................................................... 74 Dennis K. Burke, Inc........................................................59 C&S Insurance Agency....................................................22 ConConn.......................................................................... 24 Concrete Systems, Inc..................................................... 14 Dagle Electrical Construction Corp...................................8 Darmody, Merlino & Co., LLP..........................................43 Dedham Recycled Gravel................................................64 DeSanctis Insurance Agency, Inc. ..................................58 Dig Safe System, Inc........................................................ 74 The Driscoll Agency ........................................................ 31 EJ.....................................................................................33 Eastern Insurance Group, LLC........................................34 Eastern States Insurance Agency, Inc.............................25 Eastpoint Lasers, LLC......................................................64 T. L. Edwards, Inc............................................................ 61 Equipment4Rent..............................................................72 Exit Strategies Group LLC............................................... 11 Ferguson Waterworks......................................................62 L. Guerini Group, Inc........................................................ 15 HD Supply Const. & Industrial White Cap.......................32 HD Supply Waterworks......................................................2 A. H. Harris Construction Supplies..................................65 Hinckley Allen LLP...........................................................38 John Hoadley & Sons, Inc................................................73 JESCO.............................................................................27 Kenworth Northeast.........................................................35 P. A. Landers, Inc.............................................................40 Lawrence-Lynch Corp......................................................39 Lorusso Corp....................................................................44 Lorusso Heavy Equipment, LLC......................................36 MBO Precast, Inc.............................................................63 Mabey, Inc........................................................................78 Mass Broken Stone Company.........................................75 McGill Hose & Coupling, Inc............................................70 Milton CAT........................................................................30 Minuteman Trucks, Inc.....................................................75 Norfolk Power Equipment, Inc.........................................60 North American Crane & Rigging LLC.............................26 North East Shoring Equipment, LLC............................... 47 Ocean State Oil................................................................76 Palmer Paving Corp......................................................... 13 E. H. Perkins Construction Co., Inc.................................80 Podgurski Corp................................................................64 E. J. Prescott, Inc.......................................... Ins. Front Cvr. Rain For Rent-New England............................................ 10 Read Custom Soils ...........................................................5 Ritchie Bros. Auctioneers..................................................5 Rogers & Gray Insurance................................................54 Schmidt Equipment, Inc....................................... Back Cvr. Scituate Concrete Products Corp....................................28 Scrap-It, Inc......................................................................79 Shea Concrete Products, Inc. .........................................42 Smith Print........................................................................76 Southern Redi-Mix Corporation....................................... 76 Starkweather & Shepley Ins. Brokerage, Inc...................37 Systems Support Corporation.........................................60 Tech Hydraulics................................................................72 Tonry Insurance Group, Inc............................................. 15 Travelers.............................................................................6 Triumph Modular..............................................................57 TruckTap.............................................................................9 United Concrete Products................................................72 United Rentals Trench Safety..........................................52 Webster One Source........................................................56 C. N. Wood Co., Inc. .........................................................4 Woodco Machinery, Inc...................................................46 Xylem Dewatering Solutions Inc. dba Godwin Pumps.........60

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL, 2017

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.

207 Lake Street, Newburgh, NY 12550

1.800.407.4674 www.americanshoring.com E-Mail us at

sales@americanshoring.com In New England

SALES • RENTALS • SERVICE REPAIRS • TRADE-INS RECERTIFICATION

American Shoring of Massachusetts, Inc.

226 Cherry Street Shrewsbury, Mass 01545

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

Powerful and Proven Get more in a K Series-II. Got a material-handling app that demands extra agility and ability? There’s a John Deere K Series-II Loader for that. Built on the highly reliable platform of their predecessors, these models are loaded with even more customer-inspired productivity- and uptime-increasing features. John Deere PowerTech™ EPA Final Tier 4 (FT4)/EU Stage IV diesels provide generous displacement, power, and lugging ability.

Daily checks and maintenance access are even easier. And all new K Series-II Loaders come with a standard five-speed transmission, a new adaptive clutch cutoff, and new axles with brake retractors that will improve productivity while providing up to 10-percent fuel savings compared to previous K-Series models.

www.SchmidtEquipment.com 5 Locations Serving MA & RI 508-987-8786