Construction Outlook April 2019 by Ucane

APRIL | 2019 UCANE Interview:

Senator Diana DiZoglio

MassDEP, MWRA, & BWSC Leaders Discuss Upcoming Capital Projects

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APRIL, 2019

Years of Excellence 1954-2019

APRIL, 2019

IN THIS ISSUE

OFFICERS President RICHARD PACELLA, JR.

5 President’s Message:

President-Elect MARCELLA ALBANESE

7 Legislative Update:

R. M. Pacella, Inc.

Albanese Brothers, Inc.

Treasurer RYAN McCOURT

McCourt Construction Company

Secretary BRIAN COONEY

C. C.Construction Inc.

BOARD OF DIRECTORS GREG ANTONELLI GTA Co., Inc.

VINCENT BARLETTA

Barletta Heavy Division

NICK BIELLO

J. D’Amico, Inc.

TONY BORRELLI

Celco Construction Corp.

BEN CAVALLO

C&S Insurance Agency

ANDREW DANIELS J. Derenzo Co.

GEORGE DeFELICE

DeFelice Corporation

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

NICK GAMACHE

Rain for Rent - New England

MARCO GIOIOSO

P. Gioioso & Sons, Inc.

MIKE GORMAN

E. J. Prescott, Inc.

DAN HORGAN

R. H. White Const. Co., Inc.

BILL LEONARD

Aqua Line Utility, Inc.

JOHN OUR

Robert B. Our Co., Inc.

QUERINO PACELLA

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

PAUL SCENNA

Albanese D&S, Inc.

DAVID WALSH

Pawtucket Hot Mix Asphalt

ANNE KLAYMAN

Executive Director

MAHONEY JEFF

Assistant Executive Director

2019 Advocacy Well Underway • Department of Family and Medical Leave Releases Updated Proposed Regulations • Baker-Polito Administration Funds $2 Million to Protect Water Quality in Merrimack River • Grants for Local Watershed Monitoring Announced • Legislature to Look at Transportation Financing in 2019-2020 Session • News in Brief

17 UCANE Interview:

Senator Diana DiZoglio (D-Methuen)

22 UCANE’s March Forecast Dinner Meeting:

MassDEP, MWRA, and BWSC Leaders Discuss Upcoming Capital Projects

27 MassDEP Releases CY2019 Clean Water & Drinking Water SRF Lists Totaling $647 Million 39 MWRA FY19-FY21 Upcoming and Ongoing Construction Awards 51 BWSC Capital Improvement Program 2019-2021 Executive Summary and Upcoming Projects 58 UCANE’s 40th Annual Golf Classic 59 Safety Corner: If You See Something...Say Something

61 Spotlight on Cape Cod:

• Cape and Islands Legislators Seek to Tweak Water Protection Fund • Costs Estimates Surge for Harwich Wastewater Management Plan

66 UCANE’s 8th Annual Trade Show 71 The McCourt Foundation Gala 73 Financial Management:

• The Standard Deduction’s Double Standard • Homeowner’s Insurance Protects a Prime Asset • Roth Solo 401(k)s for (Very) Small Businesses

Editor: Anne Klayman, Associate Editor: Suzanne Hatch, Magazine Designer/Assistant Editor: Sherri Klayman Construction Outlook Chairman: Richard Pacella, Jr. Editorial Board: Richard Pacella, Jr., Marcella Albanese, Ryan McCourt, and Brian Cooney 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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2019 Advocacy Well Underway With another winter (hopefully) in the rearview mirror, I know that UCANE members are looking forward to a busy, safe, and productive construction season. While we are gearing up, UCANE has already been extremely active protecting and advocating for member companies and our industry.

ne of UCANE’s main priorities continues to be to advocate for additional funds for water infrastructure and underground utility projects. At the state level, the MassDEP recently released their Intended Use Plans (IUP) for 2019. These are the water infrastructure projects approved through the State Revolving Loan Fund (SRF) program, which is the main source of funding for our projects. The news was good, as $647 million was approved, which is an increase of $37 million over 2018, and 66 new projects were approved in addition to funding for ongoing projects. In this month’s magazine you will find the full list of these projects, as well as the 2019 capital programs for both the MWRA and Boston Water & Sewer Commission beginning on page 27. We were fortunate enough to have MassDEP Deputy Commissioner Stephanie Cooper join MWRA Executive Director Fred Laskey and BWSC Chief Engineer John Sullivan at our 8th Annual Trade Show and Forecast Dinner to present these lists and programs. This is also the time of year when the Massachusetts Legislature will be considering the state budget for the upcoming fiscal year, and UCANE has been busy meeting with legislators from across the state to discuss our priorities and concerns. At the Federal level, I recently traveled to Washington, D.C. with UCANE staff members Jeff Mahoney and Mike Lenihan to meet with our Congressional delegation and to lobby for additional funds for water infrastructure projects. It was encouraging that all of our Massachusetts Congressmen are in favor of increased spending for water infrastructure and are hopeful that it will be included as part of a larger infrastructure bill that is expected to be considered this year.

APRIL, 2019

While critically important, UCANE’s work is much more than just lobbying for funds for public infrastructure projects. There were over 6,000 bills filed in the State Legislature that will be considered in the 20192020 session. Together with our contract lobbyist, Lynch Associates, we have been combing through all of these proposals to find the ones that could have an impact on our companies and our industry. We identify and track these bills, and give written and oral testimony either supporting or opposing these measures. We also have filed our own legislation, with bills to provide a dedicated revenue stream for water infrastructure, to update the Dig Safe law, increase the lookback time for DCAMM pre-qualification, and to provide consistency among all awarding authorities for how police details are handled as a bid item. We are strongly supporting the passage of all these measures.

So as you can see, we have a lot on our plate in the coming months, and I am asking for your help. If you receive an “Action Alert” email from UCANE regarding a piece of legislation, I hope that you will take the time to contact your legislators and speak to them about the matter. If you have any suggestions for additional legislation, or want to stay up to date on what we are working on, please feel free to contact the UCANE office and attend one of our monthly Government Relations Meetings typically held on the first Wednesday evening of each month. Our Association is strong because our members are engaged, informed, and involved. So let’s keep it going in 2019. Your voice truly makes a difference! n

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Mark Molloy, Esq., Lynch Associates, Inc.

Department of Family and Medical Leave Releases Updated Proposed Regulations

he Massachusetts Department of Family and Medical Leave (“the Department”) released a set of proposed regulations implementing the new family and medical leave program in late March. The regulations, which are built from recommendations received after the Department released an initial draft of proposed regulations, govern different facets of the new government benefit program. Public hearings on the regulations will occur in May. In weighing in on the proposed regulations with the Massachusetts Executive Office of Labor and Workforce Development, UCANE highlighted five areas of concern related to the provision of benefits, identifying fraud, defining employment opportunities, and the program’s overall consistency with federal law. Overall, UCANE’s testimony stated that: “Massachusetts’ Family and Medical Leave Law and the regulations implementing this groundbreaking law will impact almost every employment relationship. UCANE appreciates the work that your agency has put into these proposed regulations to ensure that the roll-out of this program occurs as smoothly

as possible.” With that in mind, the new Family and Medical Leave Law presents a myriad of challenges to contractors – not the least of which are many unknown variables. In the extremely competitive construction industry in Massachusetts, these unknown or ambiguous variables may mean the difference between a company being profitable or not. For employers, the new law may require a variety of remitting contributions for both W2 employees (fulltime, part-time, seasonal) and 1099-MISC contractors. Beginning in July 2019, employers must report wages paid, payment for contract services rendered, and other information about their workforce. Employers must also determine contribution amounts for their workforce and for any contribution due from the employer, where applicable. While employers’ private benefit plans may exempt them from the state program, any private program must provide the same or better benefits. The timeline for the implementation of the new law is as follows:

To review the proposed regulations and access more information about the Family and Medical Leave Program, please visit: https://www.mass.gov/info-details/draft-regulations-for-the-department-of-family-and-medical-leave continued on page 9

APRIL, 2019

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Legislative Update continued from page 7

Baker-Polito Administration Funds $2 Million to Protect Water Quality in Merrimack River

n a press release issued by the Governor’s Office at the end of March, the Baker-Polito Administration announced it has provided $2 million in capital funding to the Greater Lawrence Sanitary District (“GLSD”) to provide backup power for their Riverside Pump Station. This investment will allow GLSD to purchase and install backup power generators to prevent spills into the Merrimack River during cases of long-term power outages. Established by law in 1968, the Greater Lawrence Sanitary District is responsible for sewage collection, treatment, and disposal for the City of Lawrence, and the Towns of Methuen, Andover, and North Andover. GLSD’s Riverside Pump Station accepts contaminated water flows from 99 percent of the service area and diverts them to the facility’s wastewater treatment plant where the water is properly treated and discharged into the Merrimack River. In 2017, GLSD experienced power failures affecting both the main plant and the Riverside Pump Station and as a result were unable to accept,

APRIL, 2019

treat, and discharge water. Due to the large volume of water caused by a storm, wastewater levels exceeded the capacity of the combined sewer overflow system and spilled, untreated sewage into the Merrimack River. In response to these events, MassDEP has entered into an administrative consent order with GLSD requiring them to submit a schedule to provide alternative on-site power facilities to provide for sustained operation of the facility at full capacity. The district will use this $2 million to invest in backup power generators to prevent these types of events from happening. This funding announcement builds on the BakerPolito Administration’s focus on the Commonwealth’s water bodies, including awarding almost $100 million in loans through the State Revolving Loan Fund (SRF) for sewage overflow mitigation projects, and awarding $4.5 million in capital funding to the Pioneer Valley Planning Commission to prevent sewage overflows along the Connecticut River. continued on page 11

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Legislative Update continued from page 9

Grants for Local Watershed Monitoring Announced

$250,000 will be used to build monitoring capacity. ccording to a press release from the MasThis will include improving the process that external sachusetts Department of Environmental data collectors use to develop state-required quality Protection (“MassDEP”), $175,000 in fundassurance monitoring project plans, as well as proing was awarded to 17 watershed monitoring groups vide technical assistance and training to watershed across the Commonwealth to help them test lakes groups on data management. and ponds, rivers, and coastal resources for bacteria and other contaminants. The new Watershed Group For more information about the grant awardees, Monitoring Grant Program will support watershed please visit: https://www.mass.gov/news/baker-poligroups with baseline monitoring program activities to-administration-awards-grants-to-help-local-waterBoston Area and help those groups to build sampling capabilities. shed-groups-monitor-water-quality. Locations This grant program is part of a $450,000 increase continued on page 13 in state funding that will be dedi2 Dexter Street cated to increasing capacity in waEverett, MA 02149 Boston Area ter quality monitoring and assessBoston Area Locations ment. Locations 431 Second Street Each grant will fund up to Everett, MA 02149 2 Dexter Street 2 Dexter Street $15,000 in monitoring project sup Everett, MA 02149 Everett, MA 02149 port, and the resulting enhanced water quality data will help Mass431 Second Street 431 Second Street DEP implement program requireEverett, MA 02149 Everett, MA 02149 ments for the federal Clean Water BOSTON AREA LOCATIONS Act. This funding will help eligible 100 Fremont Street 2 Dexter Street 431 Second Street non-profit organizations, includWorcester, 01603 Everett, MAMA 02149 Everett, MA 02149 ing watershed groups, academic institutions and others, with their surface water quality monitoring capacity. Watersheds across the Commonwealth must be assessed every two years. However, many water bodies are not assessed for one or more uses – such as primary or secondary recreation or aquatic Minichiello Bros./Scrap-It, Inc., life – in any given assessment cyMinichiello Bros./Scrap-It, Inc. cle, and many small or unnamed Serves over 2500 customers a week and is one of New England’s largest customers a week and is one New England's largest buyers, streams and ponds have Serves never over 2500 buyers, sellers, and processors of scrap metal. Forour overgoal 60 years goal sellers and processors of scrap metal. For over 60 years has our remained been monitored or assessed.the Also, remained the same - to in provide the best along prices in thetop industry along with same - tohas provide the best prices the industry with notch many water bodies that havecustomer been service! top notch service! Fred Rogers at 617-595-5505 Callcustomer Fred Rogers at Call 617-595-5505 assessed in the past are Minichiello in need of Bros./Scrap-It, Inc., Minichiello Bros./Scrap-It, Inc., updated information to determine Serves over 2500 customers a week and is one New England's largest buyers, their current condition. It is anticisellers and processors of scrap metal. For overa60week years ourisgoal Serves over 2500 customers and onehas Newremained England's largest buyers pated that this grant program will the same to provide the best prices in the industry along with top notch sellers and processors of scrap metal. For over 60 years our goal has remain increase the availability of bacteria customer service! the Callsame Fred -Rogers at 617-595-5505 to provide the best prices in the industry along with top notch data that is used to determine the customer service! Call Fred Rogers at 617-595-5505 condition of surface waters within the state. To recognize the value of Turn your metal into money today! state partnerships with watershed Turn your metal into money today! groups and other external data Minichiello Bros. Inc./Scrap-It Inc. Minichiello Bros. Inc.,/Scrap-It Inc. collectors, the funding balance of

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Legislative Update continued from page 11

Legislature to Look at Transportation Financing in 2019-2020 Session

ouse Speaker Robert DeLeo and Senate Financial Board recently lamented that the MBTA canPresident Karen Spilka have announced, not sustain repeated rate increases and that, ideally, on separate occasions, that their respective the legislature should create an additional funding legislative bodies will be considering mechanisms to mechanism for the MBTA. Advocates for roads and fund transportation infrastructure. bridges, however, counter that the idea of prioritizing transit over roads and bridges ignores the key fact As reported by the State House News Service, that transit has limited reach. Further complicating the Speaker DeLeo told attendees at a Greater Boston issue is that a variety of regional transit authorities, Chamber of Commerce breakfast in late March that which operate regional bus services, are clamoring for congestion on the roads and unreliable service on operational funding as well as infrastructure improvepublic transportation is a problem that "impacts every ments to the Commonwealth’s roads and bridges. employee and every business" in Massachusetts. As reported, he not only wants the business community With the implementation of congestion pricing to weigh in on the issue, but that they should do so mechanisms in different US cities, the ever increasbecause every revenue mechanism will also be on ing call for North-South tolls (i.e. I93), and the conthe table. tinued hue and cry for greater taxes on ride share services, the transportation financing discussion will The discussion relative to transportation financcover a wide-range of potential funding options. Two ing hearkens back to 2013 when the Massachusetts interesting pivot points to watch will be the FY2020 legislature passed a gas tax and a short-lived indexbudget and the long-anticipated Transportation Bond ing proposal that would have created a predictable Bill filing from the Governor. and sustainable funding path. The law to index the continued on page 15 gas tax was overturned by a ballot campaign led by anti-tax advocates, who continued to push the mantra “reform before revenue”. The ballot question, which passed 53% to 47%, Water Works Specialist John Hoadl removed the gas tax’s tie to the Water Works Specialist Tel:781-878-8098 Fax:781-878-5298 Water Works Spe consumer price index. 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Legislative Update continued from page 13

News in Brief •

•

Farley-Bouvier and Lewis to Lead House Progressives. Representative Tricia Farley-Bouvier (D-Pittsfield) and Representative Jack Lewis (Framingham) will lead the 60-member House Progressive Caucus. The House Progressive Caucus said its members are "committed to the goal of promoting social, economic, and environmental justice for all people of the Commonwealth." The Senate Progressive Caucus, which counts 18 of the 34 Democratic senators as members, is chaired by Senator Jamie Eldridge. MassINC Announces New Chief Operating Officer. Former Representative Juana Matias, who ran for Congress last Fall, has been named the organization’s Chief Operating Officer. Matias, who represented Lawrence in the House for the 2017-2018 session, will lead the organization in its multipronged approach to create economic devel-

opment opportunities in gateway cities and other areas of the Commonwealth. According to its website, MassINC is a registered non-profit 501 organization that functions as a nonpartisan, evidence-based think tank to develop a public agenda for Massachusetts that promotes the growth and vitality of the middle class. •

Orral to Massachusetts Office of Travel & Tourism. Another former legislator has also found new employment opportunities as Representative Keiko Orral, who ran for Treasurer of the Commonwealth, was recently named the new Executive Director of the Massachusetts Office of Travel and Tourism. Orral, who was replaced by her husband Norman Orral when she gave up the seat, will be charged with promoting the Commonwealth’s agenda as a vacation destination location. n

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Senator Diana DiZoglio (D- Methuen)

Growing up in Methuen, Senator DiZoglio was educated in public schools and after graduating from Middlesex Community College with an Associate’s Degree in Psychology, she attended Wellesley College, graduating with a Bachelor’s Degree in Psychology and Spanish. Prior to being elected to the House of Representatives in 2012, the Senator spent time as both chief of staff to the president of the Professional Firefighters of Massachusetts and then as a legislative aide on Beacon Hill, an experience which greatly informed the policies she would eventually pursue in elected office. Growing up in a blue collar region of Massachusetts, surrounded by construction workers, laborers, police officers, teachers, and firefighters, the value of a hard day’s work was impressed upon her at an early age. So she has dedicated her career in public service to advancing the interests of working people and looking for ways to find common ground between labor and business to build a better, stronger Commonwealth.

Please give your thoughts on how Massachusetts can best continue to provide local aid to cities and towns to help support basic municipal services, specifically water infrastructure.

Right now, we’re seeing a lot of communities struggle to provide better municipal services without being forced to significantly raise local taxes, which can be devastating for property owners and residents on fixed incomes. The Commonwealth has over 125,000 miles of sewer pipes and over 100 municipal wastewater treatment plants. Maintaining and improving these essential water services is a particularly expensive endeavor, but the state has succeeded in passing legislation in recent years to help alleviate this cost. For instance, a law passed in 2014 increased the amount that the state can appropriate to the State Revolving Loan Fund Program, which specifically allows cities and towns to borrow money for improving drinking water, wastewater and stormwater facilities. This law creates new opportunities for communities to receive loans through the revolving fund for little or no interest, and allows the state to provide a dollar-for-dollar match for connection costs for regional drinking water or wastewater systems like the Massachusetts Water Resources Authority. With the signing of this law, legislators acknowledged there is more work to be done and subsequently created a Water InfraAPRIL, 2019

structure Advisory Board to advise the legislature of future water infrastructure concerns in the Commonwealth. These are good first steps, but we need to continue to be vigilant in the coming years to make concerted efforts to better manage our drinking water and wastewater systems while also looking to incentivize communities to make investments in these systems as well.

The Massachusetts Water Infrastructure Finance Commission found that there is a $20 billion gap in water and sewer infrastructure funding over the next 20 years in the Commonwealth. Can you discuss some of the water and sewer infrastructure concerns your district has been addressing?

Closing that gap as a state will require buy-in from communities across Massachusetts, and possibly even federal assistance to work towards permanent solutions.

In the Merrimack Valley, a post-industrial region with gateway cities on its western end and communities heavily reliant on summer tourism on its eastern end, the issues surrounding our aging water infrastructure are of critical importance. The communities I represent are very aware of this funding gap and have demonstrated a particular concern about issues like Combined Sewer Overflows (CSOs) and other pollutants in the river. continued on page 19

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Interview continued from page 17

To address these issues and improve our water and sewer infrastructure, in this session I have filed legislation to assemble a commission to assess the health of the Merrimack River. The Army Corps of Engineers recently completed a comprehensive study on the Merrimack River, so there is substantial data to unify the various stakeholders that will be involved in this commission. After agreeing on the basic set of facts and analyzing the relevant data, this commission will hire consultants to advise on next steps and move forward to develop a meaningful plan to clean and maintain the river for years to come.

agencies on ways to help fund improvements to the aging sewer infrastructure in cities like Haverhill and Methuen. Completing large-scale replacements of our sewer and water systems will cost extraordinary amounts of money and will require federal assistance.

The construction industry continues to deal with workforce development issues as it searches for the next generation of workers. Can you discuss your thoughts relative to the importance of making sure that the construction industry and trades are able to fill these much needed jobs in the coming years?

The commission will include representatives from sewage management, environmentalists, state officials, and members appointed by local elected officials to share information, hire consultants, review the health of the river, and make recommendations to the legislature on best steps to take to keep the river healthy.

In an area of the country where there is so much development underway — and an area where there is growing income inequality — we have to emphasize the ways in which a job in the building trades can offer an avenue to financial stability.

This bill addresses the issue comprehensively and effectively in order to discover the best long-term solutions. In terms of immediate, temporary improvements, I have also filed a bill around updating and modernizing pre-notification methods for potential water pollution in the Merrimack River.

Trade schools and vocational programs are the keys to growing our workforce here in Massachusetts and we have seen increased investment in them statewide. The Merrimack Valley, for instance, is already home to several thriving vocational schools like the Whittier Regional Vocational Technical High School.

Lastly, an essential step in the process of improving our water infrastructure requires meeting with the relevant federal

But there remains a shortage of workers in many of the continued on page 21

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fields whose work we benefit from every day and often take for granted. By opening the doors of our trade schools and community colleges for adult night programs, we can get even more people who may be looking for secure, betterpaying jobs with the training they need to become certified in these fields. State-funded labor and workforce development programs like the Workforce Solutions Group are seeing increased enrollment around Massachusetts.

Some of the big issues I’m looking to address during this session have to do with improving government transparency and increasing accountability for public utilities to prevent and combat the fallout of disasters like the gas explosions in the Merrimack Valley last fall. Among these bills is a piece of legislation that would increase the reporting requirements to local fire and police for gas companies when they first learn of gas leaks.

The bottom line is that we do a great disservice to so many young people in this country if we denigrate the value of manual labor. We must continue our efforts to promote policies that not only assist in providing opportunities in this area but also help to educate our communities on the immense value of this work. This is critical to the future of construction.

Another bill would create a disaster relief fund to mitigate any significant rate increases following a declared emergency, accident, insolvency, bankruptcy, or other event involving a utility company, while a third bill would require the disclosure of total compensation packages for the CEOs of any public utility company operating in Massachusetts. If the overall compensation of a utility company’s CEO is 100 times higher than the median workers salary, that company would be charged with a surtax from which funds would go toward the relief fund. The utility company would also be prohibited from increasing rates until the pay equity ratio changes and comes under 100 to 1.

What are some of your other priorities for the upcoming session?

These are important bills that, if passed, will reduce the burden placed on utility workers and ratepayers alike. n

In the private sector, non-profit organizations like SkillsUSA are also doing great work in connecting young people with potential employers looking to fill positions in technical fields, such as the construction industry.

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UCANE’s March Forecast Dinner Meeting

MassDEP, MWRA, and BWSC Leaders Discuss Upcoming Capital Projects

Stephanie Cooper MassDEP Deputy Commissioner

Fred Laskey

MWRA Executive Director

BWSC Chief Engineer

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ver the years, UCANE’s Forecast Dinner Meeting and Trade Show has proven to be one of the most well attended meetings of the year, in large part because of our partnership and working relationship with government agency leaders and public works officials. So it was no surprise that close to 400 members and guests filled The Sheraton Four Points Hotel in Norwood for this year’s event. The keynote presenters for the evening were MassDEP Deputy Commissioner Stephanie Cooper, Massachusetts Water Resources Authority (MWRA) Executive Director Fred Laskey, and Boston Water & Sewer Commission (BWSC) Chief Engineer John Sullivan. Each of these leaders provided an overview of the projects that will be coming out to bid this year, as well as additional projects in future years. UCANE President Richard Pacella, Jr. opened the meeting by welcoming our attendees and reminding them of the importance of this meeting and our continued relationship with the officials in the room. Executive Director Anne Klayman then introduced the UCANE Board of Directors and also introduced and welcomed several new members including “@-Leisure” Contractor Licensing, LLC of Plymouth, Cape Cod Winwater of Hyannis, Centinel Financial Group, LLC of Needham, inTerra Innovation, Inc, of North Reading, Hydrograss Technology, an RB Arello Company of 22

John Sullivan, P.E.

North Oxford, MJ-Hammer of Boston, NSI Contracting LLC of West Bridgewater, Mabbett & Associates, Inc. of Bedford, and Skanska USA Civil of Waltham. The prospective members in attendance were also introduced and welcomed. UCANE Assistant Executive Director Jeff Mahoney then introduced the first keynote speaker of the evening, MassDEP Deputy Commissioner Stephanie Cooper, who spoke on several initiatives that will have an effect on the water infrastructure industry. She spoke about climate adaptation and the need to fund resiliency projects, which was a theme that was echoed by all of our speakers. She also spoke about the MassDEP Final 2019 Clean Water and Drinking Water Intended Use Plans (IUP), which had recently been released. The list shows an increase in spending for 2019 with 64 projects totaling over $499 million in projects authorized through the Clean Water State Revolving Fund (CWSRF), and 27 projects totaling $147 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, and Stephanie highlighted several jobs that will be coming out to bid on Cape Cod and in Western Mass. The entire 2019 IUP list can be found starting on page 27 and at www.ucane.com. MWRA Executive Director Fred Laskey then began his remarks by highlighting several recent projects that

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL 2019

were completed by UCANE members. He then updated attendees about the Authority’s Capital Program and how the MWRA has provided its member communities nearly $800 million in grants and interest-free loans for local infrastructure repair and rehabilitation projects. Fred also provided an update on the Metropolitan Tunnel Redundancy Program and outlined several projects that have recently gone out to bid, or will be going out to bid, as a result of this program. Highlights from Mr. Laskey’s presentation can be found starting on page 39. Chief Engineer John Sullivan then gave an overview of the ongoing BWSC projects including water main replacement, sewer, and stormwater. The water main program alone will be $45.5 million in 2019. He also touched upon the massive amount of development happening in the City of Boston, and the near and future challenges faced by BWSC. BWSC’s Capital Improvement Plan Executive Summary and Upcoming Projects for the years 2019-2021 can be found starting on page 51. All of the speakers thanked UCANE and our membership for their continued work and advocacy on behalf of the water infrastructure industry. More work will be put out to bid in the coming years, but additional monies need to be appropriated to address the backlog of projects and the $18–$21 billion water infrastructure funding deficit Massachusetts faces over the next 15 years. continued on page 25

APRIL, 2019

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Dinner Meeting continued from page 23

Each year our Forecast Meeting serves as the “unofficial kickoff” to the construction season. UCANE would like to thank Stephanie Cooper, Fred Laskey, and John Sullivan for their continued support of our Association and for once again taking the time out their busy schedules to attend.

We would also like to thank our Construction Outlook advertisers who participated in our 8th Annual Trade Show prior to our Dinner Meeting. The feedback from the vendors has been tremendous, and we look forward to a record number of companies participating again next year! (See article on page 66.) n

APRIL, 2019

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APRIL, 2019

MassDEP Releases CY2019 Clean Water & Drinking Water SRF Lists Totaling $647 Million Charles D. Baker Governor Karyn E. Polito Lieutenant Governor

$500 Million Offered for Clean Water SRF in 2019

Matthew A. Beaton Secretary Martin Suuberg Commissioner

he Massachusetts Department of Environ-

approximately $500 million to finance clean water projects across the Commonwealth. Approximately $430 present the CY2019 Intended Use Plan (IUP), million will fund 46 new construction projects, and an which details the projects, borrowers, and amounts additional $50 million will be allocated towards fundTo All Interested Parties: that will be financed through the Clean Water State ing seven previously approved multi-year projects. $3 Revolving Fund (CWSRF) loan program. The CWSmillion(MassDEP) has been allocated to the emergency The Massachusetts Department of Environmental Protection is pleased to present the set-aside RF is a joint federal-state financing loan program that account, and $5 million will be directed to the CommuFinal 2016 Intended Use Plan which details projects, borrowers and amounts that will be provides subsidized interest rate (IUP), loans to improve or the nity Septic Management Program to remediate failed financed through the Clean Water State Revolving Fund (CWSRF) loan program. The CWSRF is a protect water quality in the Commonwealth. septic systems in participating communities. An addijoint federal-state financing loan program that provides subsidized interest rate loans to improve or tional $11.5 million will finance nine planning projects. As noted in Table 1, Massachusetts is offering mental (MassDEP) is pleased to January 26, Protection 2016

protect water quality in the Commonwealth.

Table 1 1 $414 million to finance clean water As noted in Table 1, Massachusetts is offeringTABLE approximately CLEAN WATER STATE REVOLVING FUND projects across the Commonwealth. Approximately $380 million will fund 35 new construction Clean Water State Revolving Fund CY2019 Intended Use Plan Calendar Year 2019 CWSRF Intended Use Plan9 previously approved projects and an additional $15 million will be allocated towards funding NEWtoPROJECTS multi-year projects. $2 million has been allocated the emergency set-aside account, and $3 NEW PROJECTS 2019 million will be directed to the Community Septic Management Program to remediate failed septic Rating Applicant SRF ID Project Project Cost 2019 IUP Cost Rating Applicant SRF ID Project Project Cost IUP Cost systems in participating communities. An additional $13.8 million will fund 15 planning projects. 123 LWSC

4488 West Lynn Sewer Separation

$103,453,400

$25,000,000

The Water Resources Reform and Development Act of 2014 (WRRDA) amended the Clean Water 123 Act NEWresulting BEDFORDin(PF) 4509 Pumping Station Improvements $26,600,000The $26,600,000 important changes to the CWSRF Program that will affect most borrowers. changes areIntegrated the requirements for borrowers 116 primary HAVERHILL (PF) to the program 4500 FLTCP Implementation Phase to 1 develop and maintain $9,000,000 a Fiscal$9,000,000 Sustainability Plan, which is similar to an asset management plan and a certification that the cost and 114 HOLYOKE (PF)# Jackson Street Area Sewer Separation Project effectiveness of the project has4468 been evaluated and that the project maximizes water$8,906,000 efficiency and $8,906,000 112 energy TAUNTON (H)(PF) MainIUP Lift Pump Stationthese Improvements $15,623,000 conservation. The body4518 of the discusses new WRRDA requirements in greater $15,623,000 detail. 110 NANTUCKET (H)# 4490 Phase 2 Surfside WTTF Improvements $7,800,000 $7,800,000 107 The REVERE (PF)# United States

4487 Protection Phase 10 Construction - I/I, IDDE, P.S. Environmental Agency (EPA) has not& Drainage yet determined $6,700,000 the exact 2016 $6,700,000 grant allocations to the states. BasedExtension on the overall federal appropriation, MassDEP expects to$26,700,000 106 SRF CHATHAM 4516 Sewer $26,700,000 receive an estimated $44 million federal grant to subsidize the CWSRF program. Under the Fiscal 105 LAWRENCE (H)(PF)# 4511 Sewer and Drainage System Improvements $4,970,000 $4,970,000 Year 2016 Omnibus Appropriations Bill, Congress is requiring that at least 10% of the federal grant 104 be NANTUCKET (H) “green infrastructure”. 4491 Surfside Road AreaFinal SewerIUP System Improvements $5,470,000 $5,470,000 used to fund The 2016 lists 16 new “green infrastructure” construction projects. The exact monetary value of the green portion of these projects will be 101 ORLEANS (H) 4486 Downtown Area Collection System and WWTF $42,420,000 $26,000,000 determined when project applications are submitted but are expected to be well in excess of 10% of 100 the HULL (PF) grant. 4478 SSES, Outfall and Piping Construction $6,800,000 $6,800,000 federal 94 NORWOOD (PF)

4482 Underdrain Area Sewer Rehabilitation

$2,700,000

NANTUCKET (H) in alternate format. Call 4512 SeaWaters-Ekanem, St. Pump Station ForceDirector, Main No. 3 $22,000,000 $22,000,000 This93 information is available Michelle Diversity at 617-292-5751. TTY# MassRelay Service 1-800-439-2370 MassDEP Website: www.mass.gov/dep 93 FALL RIVER (PF)#

4489 South End Sewer PumpPaper Station Replacement Printed on Recycled

92 ACUSHNET (PF)

4469 CWMP Needs Areas 1 and 2 Sewer Extensions

89 NEW BEDFORD (PF)

4510 Wastewater Collection System Improvements

86 HULL (PF) 86 HULL (PF) 81 ACTON (H)

APRIL, 2019

81 WINTHROP (PF)#

$3,830,000

$24,363,600

$5,600,000

4480 Year 2 FSP and CMOM Upgrades

continued on$2,436,000 page 29 $2,436,000

4477 Pump Stations Resiliency & Stations 3 & 4 Upgrades

$3,179,000

4502 Acton Middle Fort Pond Brook WWTF Upgrades

$5,927,000

4479 Town Center - Sewer and Drainage Improvements

$7,988,150

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101 ORLEANS (H)

4486 Downtown Area Collection System and WWTF

100 HULL (PF) 94 NORWOOD (PF)

$42,420,000

$26,000,000

4478 SSES, Outfall and Piping Construction

$6,800,000

4482 Underdrain Area Sewer Rehabilitation

$2,700,000

Sea St. Pump Station Force Main No. 3

$22,000,000

4489 South End SewerPROJECTS Pump Station (cont.) Replacement NEW

$3,830,000

DEP/SRF continued from page 27 93 NANTUCKET (H) 4512 93 FALL RIVER (PF)#

92 ACUSHNET (PF) 4469 CWMP Needs Areas 1 and 2 Sewer Extensions $24,363,600 Rating Applicant SRF ID Project Project Cost

2019 IUP Cost

$24,363,600

89 NEW BEDFORD (PF)

4510 Wastewater Collection System Improvements

$5,600,000

86 HULL (PF)

4480 Year 2 FSP and CMOM Upgrades

$2,436,000

86 HULL (PF)

4477 Pump Stations Resiliency & Stations 3 & 4 Upgrades

$3,179,000

81 ACTON (H)

4502 Acton Middle Fort Pond Brook WWTF Upgrades

$5,927,000

81 WINTHROP (PF)#

4479 Town Center - Sewer and Drainage Improvements

$7,988,150

80 KINGSTON (PF)

4497 Kingston Wastewater Treatment Plant Expansion

$20,000,000

80 SAUGUS (PF)#

4514 Comprehensive Sewer System Rehab. Subsystem 1C

$2,001,164

78 BROCKTON (H)(PF)

4507 2019 Sewer Rehabilitation Project

$4,900,000

77 NORTHAMPTON (H)(PF)

4501 Northampton WWTP Upgrades

$12,100,000

75 BROCKTON (H)(PF)

4505 Advanced Water Reclamation Facility BNR Improves

$7,900,000

68 MARTHA'S VINEYARD AIRPORT COMMISSION

4465 Martha's Vineyard Airport WWTF Upgrades

$3,500,000

67 BILLERICA (H)(PF)

4474 WWTF and Pump Station Upgrades

$7,239,000

66 LITTLETON (H)(RE)#

4520 Littleton Common Smart Sewer Project

$22,950,000

66 BILLERICA (H)(PF)

4484 Sewer Contracts 37 & 38

$25,661,428

65 CHICOPEE (PF)

4485 Blue Bird Acres Sewer Pump Station & Force Main

$2,242,000

64 ACTON (H)

4493 West Acton Center Sewer Extension Project

$12,559,063

64 QUINCY (H)(PF)

4515 FY2020 Sewer Improvements

$5,600,000

64 ORANGE (PF)

4504 WWTP Upgrades Project

$13,542,000

64 ACTON (H)

4493 West Acton Center Sewer Extension Project

64 QUINCY (H)(PF)

4515 FY2020 Sewer Improvements

$12,559,063

62 WEST SPRINGFIELD (PF)

4513 Birnie Avenue and Piper Road Area Sewer Project

$6,811,000

60 QUINCY (H)(PF)

4508 The Strand Pump 64 ORANGE (PF)Station Upgrade Project 4504 WWTP Upgrades Project

$2,500,000

$2,500,000 $13,542,000

64 ACTON (H)

4493 West Acton Center Sewer Extension Project

$12,559,063

$5,600,000

$12,559,063

60 LEOMINSTER (PF)# 64 QUINCY (H)(PF)

62 WEST SPRINGFIELD (PF) 4513Upgrade Birnie Avenue and Piper Road Area Sewer Project Basin and Secondary Clarifer $11,294,000 45154517 FY2020Aeration Sewer Improvements $5,600,000 $5,600,000

64 ORANGE (PF) 55 GREAT BARRINGTON (PF)

60 QUINCY (H)(PF) 45044499 WWTPPump Upgrades Project Upgrades Station

Project

62 WEST SPRINGFIELD (PF)

60 LEOMINSTER (PF)# 4513 Birnie Avenue and Piper Road Area Sewer Project

60 QUINCY (H)(PF)

4508 The Strand Pump Station Upgrade Project

52 SAUGUS (PF)

4508 The Strand Pump Station Upgrade Project $13,542,000 $13,542,000 $3,260,000

4492 Lincoln Pump Station(PF) Improvements, Phase 2 Upgrades Project $1,170,000 55 Ave GREAT BARRINGTON 4499 Pump Station $2,500,000

52 BARNSTABLE 60 LEOMINSTER(H)(PF) (PF)#

52 SAUGUS (PF) Expansion Attucks Lane Sewer 45174481 Aeration Basin and Secondary Clarifer Upgrade

4492 Project

55 GREAT BARRINGTON 51 GLOUCESTER (PF) (PF)

52 BARNSTABLE (H)(PF) 44994503 Pump Station Project WaterUpgrades Pollution Control Facility

4481 Attucks Lane Sewer Expansion Project $3,260,000 $3,260,000 Improvements $1,300,000

52 SAUGUS (PF)

51 GLOUCESTER (PF) 4492 Lincoln Ave Pump Station Improvements, Phase 2

52 BARNSTABLE (H)(PF)

4481 Attucks Lane Sewer Expansion Project

46 BOURNE (PF)

4519 Buzzards Bay Wastewater Treatment Facility $7,287,000 46 BOURNE (PF) 4519 Buzzards Bay Wastewater Treatment Facility $2,320,000

42 BARNSTABLE (H)(PF) 51 GLOUCESTER (PF)

42 BARNSTABLE (H)(PF) Station Rendezvous Lane Improvements Pump 45034494 Water Pollution Control Facility

46 BOURNE (PF)(H)(PF) 41 BARNSTABLE

41 BARNSTABLE (H)(PF) 45194496 Buzzards Bay Wastewater Facility Pleasant StreetTreatment Sewer Upgrade

42 BARNSTABLE (H)(PF)

40 BARNSTABLE (H)(PF) 41 BARNSTABLE (H)(PF)

34 GLOUCESTER 40 BARNSTABLE(PF) (H)(PF) 34 GLOUCESTER (PF) TOTAL OF NEW PROJECTS

40 BARNSTABLE (H)(PF) 4494 Rendezvous Lane Pump Station Replacement

4495 South34Street Sewer (PF) Upgrade GLOUCESTER 4496 Pleasant Street Sewer Upgrade Project TOTAL OF NEW PROJECTS Sewer PS Rehabilitations 44954506 South Street Sewer Upgrade Project

(PF) - Affordability Criteria

$2,320,000

4494 Rendezvous Lane Pump Station Replacement Replacement $1,083,000 $1,300,000 $1,300,000 4495 South Street Sewer Upgrade Project $1,083,000 $1,083,000

Project4506

$2,828,000 Sewer PS Rehabilitations & FOG Mitigation $701,000 $701,000

& FOG Mitigation $2,828,000

(Count: 46) 4506 Sewer PS Rehabilitations & FOG Mitigation

$11,294,000

$11,294,00

$1,375,000 $2,828,000

(Average Rating: 78.8) $1,375,000 $1,375,000 $524,589,805 $524,589,805

$524,589,805

$429,716,405

$1,170,00

$2,320,000

$2,320,00

$1,300,000

$1,300,00

$1,300,000

$7,287,000 $7,287,000 $1,083,000 $1,083,000

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

$1,083,00

$701,00

$2,828,000

$2,828,00

$701,000

$2,828,000 $1,375,000

$524,589,805 $1,375,000

$429,716,405

continued on page 31

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

$7,287,00

$701,000

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

(RE) - Potential Renewable Energy Projects

$3,260,00

$1,170,000 $2,320,000

(RE) - Potential Renewable Energy Projects

(RE) - Potential Renewable Energy Projects # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of a Green Project

APRIL, 2019

$2,500,00

4496 Pleasant Street Sewer Upgrade Project $7,287,000 Project $7,287,000 $701,000

TOTAL OF NEW PROJECTS (H) - Housing Choice Communities TOTAL OF NEW PROJECTS (Count:(Count: 46) (AverageCriteria Rating: 78.8) (PF) - Affordability 46) (Average Rating: 78.8) (Count: 46) (Average Rating: 78.8)

(H) - Housing Choice Communities (H) - Housing Choice Communities

Lincoln Ave Pump Station Improvements, Phase 2 $2,320,000 $11,294,000 $11,294,000

4503 Water Pollution Control Facility Improvements $1,170,000 $1,170,000

$6,811,00

$2,500,000

$1,170,000 $3,260,000

$2,500,000

$5,600,00

$13,542,00

$6,811,000 $11,294,000

$3,260,000

4517 Aeration Basin and Secondary Clarifer Upgrade $6,811,000 $6,811,000

$12,559,06

$1,375,00

$429,716,40

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APRIL, 2019

DEP/SRF continued from page 29 MULTI-YEAR STATUTORY PROJECTS MULTI-YEAR CARRYOVER MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY PROJECTS Applicant

AND STATUTORY PROJECTS

SRF ID Project Project SRF SRFIDID Project

Applicant Applicant

IUPCost Cost 2019IUP 2019

2019 IUP Cost

MWRA MWRA

4441 Dorchester Dorchester Interceptor Interceptor Sewer Sewer Renewal Renewal Contract Contract 7279 7279 4441

$7,674,000 $7,674,000

$1,674,000 $1,674,000

MWRA MWRA

4428 North Low Service Service Sewer Sewer Sections Sections 19, 19, 20 20 & & 21 21 Rehab Rehab

$14,650,000 $14,650,000

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

MWRA MWRA

4150 DITP Asset Protection Phase 3

$66,500,000 $66,500,000

$9,562,765 $9,562,765

MWRA MWRA

4117 4117 Facility Facility Asset Asset Protection Protection

$15,493,945 $15,493,945

$7,023,212 $7,023,212

MWRA MWRA

3981 3981 Remote Remote Headworks Headworks Upgrade Upgrade

$80,095,632 $80,095,632

$20,701,554 $20,701,554

MWRA MWRA

2885 2885 Wastewater Wastewater Treatment Treatment Plant Plant and and Sewer Sewer Improvements Improvements

$52,822,276 $52,822,276

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

MWRA # MWRA #

4446 Nut Island HW Odor Control & HVAC - Contract 7548 4446 Nut Island HW Odor Control & HVAC - Contract 7548

$41,088,569 $41,088,569

$9,038,469 $9,038,469

$278,324,422 $278,324,422 $278,324,422

$50,000,000 $50,000,000 $50,000,000

Project Cost Project Cost Project Cost $3,000,000

IUPCost Cost 2019IUP 2019

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

$4,000,000

$3,000,000

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

ProjectCost Cost Project Project Cost

(Count: 7)

MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS Applicant SRF ID ID Project Applicant SRF Applicant SRF ID Project EMERGENCY SRF SET-A2977 SIDE COMMUNITY SEPTIC 3850 Community Septic Management Program COMMUNITY SEPTIC 3850 Community Septic Management Program MANAGEMENT MANAGEMENT EMERGENCY SRF SET-A-SIDE 2977 TOTAL OFTOTAL MassDEP PRIORITY PRIORITY PROJECTSPROJECTS OF MassDEP TOTAL OF(Count: MassDEP 2) PRIORITY PROJECTS (Count: 2)

2019 IUP Cost $3,000,000

$8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $9,000,000 continued on page 33

(Count: 2) PLANNING PROJECTS

PLANNINGApplicant PROJECTS Applicant BARNSTABLE (H)

s Put ou m e t arts Extensive Inventory t f s of K syes and P en

Project Cost $380,000

2019 IUP Cost

IUP Cost 2019 $380,000

$380,000 $1,200,000

4543 CMOM CSO Control Plan for the Locke Street 4521 Program Plan & Discrete SewerCSO Sys. Area Invest.

$1,200,000 $1,200,000

4521 SSES CMOMPhases Program & Discrete Sewer Sys. Invest. 4526 VI Plan through VIII

$1,200,000 $3,000,000

4483 I/I, MS4 4526 CMOM, SSES Phases VICompliance through VIII

$250,000 $3,000,000

REVERE NORWOOD

4532 4483 Phase CMOM,11I/I,Investigations MS4 Compliance

$1,500,000 $250,000

SUDBURY (H) REVERE

4470 Update 4532 CWMP Phase 11 Investigations

$500,000 $1,500,000

TYNGSBOROUGH (H) SUDBURY (H)

4472 Infiltration and Inflow Study 4470 Phase CWMP2Update

$500,000 $500,000

WAREHAM TYNGSBOROUGH (H)

4533 Collection System 4472 SSES Phase and 2 Infiltration and InflowMapping Study Improvements

$3,000,000 $500,000

$11,530,000 $3,000,000

$11,530,000

NORWOOD (H) LAWRENCE

get

For d W ate

TOTAL OF INTENDED USE PLAN

TOTAL OF DRAFT INTENDED USE PLAN

•

Golf Course Dr a i n a ge &

mainta i n g APRIL, 2019

•

4533 SSES and Collection System Mapping Improvements

the l e a

(Count: 9) TOTAL OF PLANNING PROJECTS

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TOTAL OF PLANNING PROJECTS WAREHAM

• FIx wa s 24 Hour ter n l o r Rep t air Pip rEErosion Con

HAVERHILL LAWRENCE (H)

s ireedy Hydrants

4476 CSO Barnstable Sewer System Evaluation (SSES) 4543 Control Plan for the Locke StreetSurvey CSO Area

HAVERHILL HAVERHILL

(Count: 9)

Project Cost

•

ut d orworks Brass

BARNSTABLE HAVERHILL (H)

SRF ID Project

SRF ID Barnstable Project 4476 Sewer System Evaluation Survey (SSES)

$822,444,227

$499,246,405

$823,444,227

$499,246,405

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152 Route 130 Forestdale, MA 02644 800.834.4333 508.477.8818 F: 508.477.9692

228 Cherry St. Plymouth, MA 02360 508.747.1800 F: 508.747.6017

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APRIL, 2019

COMMUNITY SEPTIC MANAGEMENT

3850 Community Septic Management Program

$5,000,000

EMERGENCY SRF SET-A-SIDE

2977

$4,000,000

$3,000,000

$9,000,000

$8,000,000

Project Cost

2019 IUP Cost

TOTAL OFDEP/SRF MassDEP PRIORITY PROJECTS continued from page

(Count: 2)

PLANNING PROJECTS

PLANNINGApplicant PROJECTS

SRF ID

Applicant

Project

SRF ID Project

Project Cost

BARNSTABLE (H)

4476 Barnstable Sewer System Evaluation Survey (SSES)

HAVERHILL

$380,000

4543 CSO Control Plan for the Locke Street CSO Area

$1,200,000

HAVERHILL

4521 CMOM Program Plan & Discrete Sewer Sys. Invest.

$1,200,000

LAWRENCE (H)

4526 SSES Phases VI through VIII

$3,000,000

NORWOOD

4483 CMOM, I/I, MS4 Compliance

$250,000

REVERE

4532 Phase 11 Investigations

$1,500,000

SUDBURY (H)

4470 CWMP Update

$500,000

TYNGSBOROUGH (H)

4472 Phase 2 Infiltration and Inflow Study

$500,000

WAREHAM

4533 SSES and Collection System Mapping Improvements

$3,000,000

TOTAL OF PLANNING PROJECTS (Count: 9)

2019 IUP Cost

TOTAL OF PLANNING PROJECTS

(Count: 9)

TOTAL OF DRAFT INTENDED USE PLAN

$11,530,000

$822,444,227

$499,246,405

continued$499,246,405 on page 35

TOTAL OF DRAFT INTENDED USE PLAN

$823,444,227

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OCTOBER, 2017

DEP/SRF continued from page 33

$147 Million Offered for Drinking Water SRF in 2019

he Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the CY2019 Intended Use Plan (IUP), which lists the proposed projects, borrowers, and amounts that will be financed through the Drinking Water State Revolving Fund (DWSRF) loan program. The DWSRF is a joint federal-state financing program that provides subsidized interest rate loans to protect public health by improving water supply, infrastructure systems, and protecting drinking water in the Commonwealth.

As noted in Table 1, Massachusetts proposes to offer $147 million to finance drinking water projects across the Commonwealth. Approximately $138 million will fund 20 new construction projects. An additional $6 million will be allocated towards funding five previously approved multi-year projects and $55,000 is allocated towards the Planning Project submitted. An additional $3 million will fund an emergency setaside account.

Table 1 Drinking Water State Revolving Fund TABLE 1 CY2019 Intended Use Plan DRINKING WATER STATE REVOLVING FUND Calendar Year 2019 DWSRF Intended Use Plan

NEW PROJECTS

Rating Applicant Rating Applicant

SRF SRF ID ID Project

Project

Project Project CostCost

2019

IUP Cost IUP Cost 2019

540.0

FRANKLIN

4583 Treatment Plant at Well Stations No. 3 and 6.

$11,800,000

525.0

PEABODY (PF)

4593 Winoma & Coolidge WTP Improvements

$28,612,500

$10,000,000

520.0

LOWELL (H)(PF)

4581 Lead Service Replacement Project

$3,930,930

518.0 * EASTHAM (PF)

4467 Phase 2B of Town-Wide Water System

$18,687,988

$15,000,000

510.0 * AYER (PF)

4569 Grove Pond Wellfield PFAS Treatment

$3,670,000

510.0 * PEPPERELL (PF)

4561 Bemis Water Treatment Plant

$7,000,000

510.0

4575 Manganese Removal Water Treatment Plant

$9,242,000

435.0 * DUNSTABLE

4567 Dunstable Water Infrastructure Project

$2,498,000

430.0

LAWRENCE (H)(PF)

4589 Marston Street Pump Station Replacement

$2,215,080

430.0

LAWRENCE (H)(PF)

4594 Distribution System Improvements

$7,609,007

425.0

MWRA

4564 Weston Aqueduct Supply Main Rehabilitation

$19,021,535

$9,000,000

420.0

FALL RIVER (PF)

4566 Phase 19 - Water System Improvements

$3,578,000

415.0

AUBURN WATER DISTRICT

4565 Prospect Street Tank Replacement

$1,870,000

415.0

BILLERICA (H)(PF)

4464 Water Treatment Plant Upgrades

$9,086,750

415.0

HAVERHILL (PF)

4574 Phase 3 - Transmission Main Improvements

$9,070,250

415.0

SCITUATE

4588 Scituate Well 17A Water Treatment Plant

$8,000,000

415.0

PEABODY (PF)

4592 Peabody Water Transmission Main and Pump Station

$9,519,770

$5,000,000

415.0

TRI-TOWN WATER BOARD

4573 New Tri-Town Regional Water Treatment Plant

$50,000,000

$15,000,000

ACTON (H)

405.0 * CLARK SHORES WATER CORPORATION

4568 Water Main Replacement and Connection to New PWS

$1,319,551 continued

325.0 * WEST BOYLSTON (PF)

4587 North Main St. & Laurel St. Water Main Replacement

$2,981,000

$209,712,361

$137,870,568

TOTAL OF NEW PROJECTS

APRIL, 2019

(Count: 20)

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” (Average Rating: 449.65)

on$1,319,551 page 36

420.0

FALL RIVER (PF)

4566 Phase 19 - Water System Improvements

415.0

AUBURN WATER DISTRICT

4565 Prospect Street Tank Replacement

415.0

BILLERICA (H)(PF)

4464 Water Treatment Plant Upgrades

415.0

HAVERHILL (PF)

4574 Phase 3 - Transmission Main Improvements

415.0

SCITUATE

4588 Scituate Well 17A Water Treatment Plant NEW PROJECTS (cont.)

DEP/SRF continued from page 35

435.0 * DUNSTABLE

$3,578,000

$1,870,000

425.0 MWRA $9,086,750

$9,086,750

LAWRENCE (H)(PF)

4589 Marston Stree

430.0

LAWRENCE (H)(PF)

4594 Distribution Sy

420.0

FALL RIVER (PF)

415.0

AUBURN WATER DISTRICT

$9,070,250

TRI-TOWN WATER BOARD

4566 Phase 19 - W

4565 Prospect Stree

4588 Scituate Well

$50,000,000

405.0 * CLARK SHORES WATER CORPORATION

4568 Water Main Replacement and Connection to New PWS

4573 New Tri-Town 415.0 TRI-TOWN WATER$1,319,551 BOARD $1,319,551

325.0 * WEST BOYLSTON (PF)

4587 North Main St. & Laurel St. Water Main Replacement

415.0

$15,000,000

4574 Phase 3 - Tran

4573 New Tri-Town Regional Water Treatment Plant

TOTAL OF NEW PROJECTS

PEABODY (PF)

4592 Peabody Wate

405.0 * CLARK SHORES WATER CORPORATION

4568 Water Main R PWS

325.0 * WEST BOYLSTON (PF)

4587 North Main St

$2,981,000

$209,712,361 $137,870,568 TOTAL OF NEW PROJECTS (Count: 22) $209,712,361

(Count: 20)OF TOTAL

(Average Rating: 449.65) NEW PROJECTS 20) (Average Rating: 449.65) * -(Count: Small System

$137,870,568

* - Small System

(H) - Housing Choice Communities

(PF) - Affordability Criteria

(RE) - Potential Renewable Energy Projects

+ Applicant withdrew application

MassDEP PRIORITY PROJECTS

Applicant Applicant

SRFIDID SRF ProjectProject

EMERGENCY SRF SET-A-SIDE

2978

Project Cost Project Cost $3,000,000

TOTAL OF MassDEP PRIORITY PROJECTS (Count: 1)

4564 Weston Aqued

$8,000,000 415.0 BILLERICA (H)(PF) $8,000,000 4464 Water Treatm

415.0 HAVERHILL (PF) 2019 415.0 PEABODY (PF) 4592 Peabody Water Transmission Main and Pump Station $9,519,770 $5,000,000 415.0 SCITUATE Rating Applicant SRF ID Project Project Cost IUP Cost

415.0

4567 Dunstable Wa

430.0

TOTAL OF MassDEP PRIORITY PROJECTS (Count: 1)

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

2019 IUP Cost 2019 IUP Cost $3,000,000 $3,000,000 $3,000,000

continued on page 37

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS Applicant

SRF ID Project

Project Cost

2019 IUP Cost

MWRA

4411 North Low Service Water Sections 50 & 57 Rehab

$21,700,000

$1,200,000

MWRA

4408 Connect Mains Rehab. of Sections 23, 24, and 47

$16,170,000

$1,200,000

MWRA

4406 Commonwealth Ave Pump Station Redundancy

$10,540,000

$1,200,000

MWRA

4119 SEH Redundancy and Storage

$49,297,289

$1,200,000

MWRA (RE)#

3972 Wachusett Aqueduct PS

$50,418,587

$1,200,000

$148,125,876

$6,000,000

More ways to help your business

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 5)

PLANNING PROJECTS Applicant

SRF ID Project

Project Cost

4556 Adams Fire DistrictOnline - Water Master Plan Unreserved Onsite Auctions | Weekly TOTAL OF PLANNING PROJECTS Events | Daily Marketplace ADAMS FIRE DISTRICT

2019 IUP Cost

$55,000

(Count: 1)

TOTAL OF DRAFT INTENDED USE PLAN

For more information contact: Jason Kirkconnell 508.294.6579 | jkirkconnell@ritchiebros.com

$366,803,237

$146,925,568

Learn more at RitchieBros.com

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APRIL, 2019

(Averag

Applicant SRF ID Project EMERGENCY SRF SET-A-SIDE 2978

Project Cost $3,000,000

2019 IUP Cost $3,000,000

SRF SET-A-SIDE TOTAL OFEMERGENCY MassDEP PRIORITY PROJECTS 2978

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

$3,000,000

TOTAL OFDEP/SRF MassDEP PRIORITY PROJECTS continued from page (Count: 1)

(Count: 1) MULTI-YEAR MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSCARRYOVER

AND STATUTORY PROJECTS

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

Project Cost Project Cost

IUP Cost 2019 2019 IUP Cost

SRF ID Project 4411 North Low Service Water Sections 50 & 57 Rehab

Project Cost $21,700,000

2019 IUP Cost $1,200,000

MWRA MWRA

4411 LowMains Service Water 57 and Rehab 4408 North Connect Rehab. of Sections Sections 50 23,&24, 47

$21,700,000 $16,170,000

$1,200,000 $1,200,000

MWRA MWRA

4408 Mains Rehab. of Sections 23, 24, and 47 4406 Connect Commonwealth Ave Pump Station Redundancy

$16,170,000 $10,540,000

$1,200,000 $1,200,000

MWRA MWRA

4406 Ave Pump Station Redundancy 4119 Commonwealth SEH Redundancy and Storage

$10,540,000 $49,297,289

$1,200,000 $1,200,000

MWRA MWRA (RE)#

4119 Redundancy andPS Storage 3972 SEH Wachusett Aqueduct

$49,297,289 $50,418,587

$1,200,000 $1,200,000

$50,418,587 $148,125,876

$1,200,000 $6,000,000

Applicant MWRA

(RE)# CARRYOVER AND STATUTORY 3972 Wachusett Aqueduct PS TOTAL OFMWRA MULTI-YEAR PROJECTS

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 5)

$148,125,876 $148,125,876

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 5) (Count: 5) PLANNING PROJECTS PLANNINGApplicant PROJECTS

Applicant Applicant

ADAMS FIRE DISTRICT

FIREPROJECTS DISTRICT TOTAL OFADAMS PLANNING

SRF ID Project

PLANNING PROJECTS

SRF SRF ID ID Project Project

4556 Adams Fire District - Water Master Plan

Project Cost Project Cost

4556 Adams Fire District - Water Master Plan

$55,000 $55,000

TOTAL OF PLANNING PROJECTS (Count: 1) (Count: 1)

Project Cost

TOTAL OF PLANNING PROJECTS (Count: 1)

$55,000

TOTAL OF DRAFT INTENDED USE PLAN TOTAL OF DRAFT INTENDED USE PLAN TOTAL OF DRAFT INTENDED USE PLAN

$55,000

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

2019 IUP Cost

2019 IUP Cost IUP Cost 2019 $55,000

$55,000 $55,000 $55,000

$55,000

$366,803,237 $146,925,568 $360,893,237 $146,925,568 $366,803,237

$146,925,568

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APRIL, 2019

MWRA Massachusetts FY19–FY21 Upcoming Water Resources Authority Upcoming Construction Awards Construction Awards Project Project

Phase

Bid

Estimated

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

FY19 Anticipated Awards Residuals Asset Protection

Residuals Electrical/Mechanical/Drum Replacement

Jan-19

$8,563

Deer Island Treatment Plant Asset Protection

Chemical Tank & Digester Pipe Replacement

Mar-19

$8,000

Residuals Asset Protection

Pellet Piping - Relocate

Apr-19

$3,000

New Connect Mains-Shaft 7 to WASM 3

CP3-Sections 23,24,47, Rehabilitation

Apr-19

$14,322

Deer Island Treatment Plant Asset Protection

Gas Protection System Replacement Phase 1

Apr-19

$1,000

Deer Island Treatment Plant Asset Protection

Clarifier Rehabilitation Phase 2 - Construction

May-19

$135,000

Deer Island Treatment Plant Asset Protection

Motor Control Center and Switchgear Replacement Construction

May-19

$10,586

Clinton Wastewater Treatment Plant

Valves & Screw Pumps Replacement

May-19

$2,500

Facility Asset Protection

Interceptor Renewal 3, Dorchester Interceptor Sewer - Construction

May-19

$5,580

Carroll Water Treatment Plant Asset Protection

Cosgrove Boat Storage Facility

May-19

$1,000

Facility Asset Protection

Sects 191 & 192 Rehabilitation

May-19

$500

Deer Island Treatment Plant Asset Protection

Expansion Joint Repair - Construction 3

Jun-19

$1,951

Clinton Wastewater Treatment Plant

Equipment Storage Building

Jun-19

$292

Deer Island Treatment Plant Asset Protection

DI Dystor Membrane Replacements

Jul-19

$4,000

Deer Island Treatment Plant Asset Protection

Fire Alarm System Replacement - Construction

Jul-19

$22,000

Wastewater Meter System-Equipment Replacement

WW Metering Asset Protect/Equipment Purchase

Aug-19

$4,000

Deer Island Treatment Plant Asset Protection

Radio Repeater System Upgrade 2

Aug-19

$2,500

Corrosion & Odor Control

NI Odor Control HVAC Improvements Construction

Aug-19

$39,885

Metropolitan Redundancy Interim Improvements

CP1 Shafts 6, 8, 9A

Sep-19

$1,630

Facility Asset Protection

Prison Point Rehabilitation - Construction

Oct-19

$36,272

Waterworks Facility Asset Protection

Electrical Distribution Upgrades at Southborough

Oct-19

$1,200

Facility Asset Protection

Fuel Oil Tank Replacement Construction Phase 1

Oct-19

$1,361

Sudbury/Weston Aqueduct Repairs

Weston Aqueduct Sluice Gates - Construction

Nov-19

$2,940

Deer Island Treatment Plant Asset Protection

HVAC Equipment Replacement - Construction

Dec-19

$40,205

Quabbin Transmission System

Wachusett Gatehouse Pipe Replacement

Dec-19

$2,500

Quabbin Transmission System

Oakdale High Line Replacement Construction

Dec-19

$465

Facility Asset Protection

Wiggins Terminal Pumping Station Construction

Jan-20

$2,119

NIH Redundancy & Storage

Section 89 & 29 Replacement - Construction

Feb-20

$16,000

Clinton Wastewater Treatment Plant

Digester Cover Replacement

Apr-20

$600

Carroll Water Treatment Plant Asset Protection

HVAC Equipment Replacement - Construction

Mar-20

$1,750

FY20 Anticipated Awards

FY21 Anticipated Awards

1 of 2

APRIL, 2019

continued on page 41

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APRIL, 2019

MWRA continued from page 39

MWRA FY19–FY21 Upcoming Massachusetts Water Resources Authority Construction Awards (continued) Upcoming Construction Awards Project

Phase

Project

Phase

Bid Estimated Anticipated Est.Contract Advertisement Contract Amount Advertisement Amount ($000) Date

($000s)

Carroll WaterTreatment Plant Asset Protection

Carroll Treatment Plant Control Room Fire Suppression System

Mar-20

$325

Carroll Water Treatment Plant Asset Protection

Chemical System Pipe Pumps Replacement

Mar-20

$4,000

Quabbin Transmission System

Rehabilitation Wachusett Gate House/Bastion Lower Gate House Construction

Apr-20

$2,100

Metropolitan Redundancy Interim Improvements

WASM 3 CP-1

Apr-20

$20,367

Carroll Water Treatment Plant Asset Protection

Post Treatment Building Soda Ash Equipment Replacement

Mar-20

$465

Dam Projects

Sudbury/Foss Dam Construction

Apr-20

$1,600

Metropolitan Redundancy Interim Improvements

Shafts 5&9 Building Improvements Construction

Apr-20

$3,000

MWRA Facilities Management

Facilities Construction (DI Old Admin Building Demolition)

Jun-20

$2,371

Metropolitan Redundancy Interim Improvements

Weston Aqueduct Supply Mains/Spot Pond Supply Mains West Pressure Reducing Valves Construction

Jun-20

$6,300

Waterworks Facility Asset Protection

Water Meter Upgrade Replacement

Jun-20

$1,000

Waterworks Facility Asset Protection

Meter Vault Manhole Retrofits - Construction

Jun-20

$1,443

Deer Island Treatment Plant Asset Protection

Eastern Seawall Construction - 1

Jul-20

$4,500

Metropolitan Redundancy Interim Improvements

CP2 Shafts 7, 7B, 7C, 7D

Sep-20

$2,500

Deer Island Treatment Plant Asset Protection

Gas Protection System Replace Phase 2

Sep-20

$1,000

Watershed Division Capital Improvements

Maintenance Gararage/Wash Bay/Storage Building Construction

Oct-20

$3,900

Facility Asset Protection

Fuel Oil Tank Replacement Construction Ph 2

Oct-20

$2,302

Metropolitan Redundancy Interim Improvements

CP3 Shafts 5, 9

Jan-21

$2,500

Deer Island Treatment Plant Asset Protection

Switchgear Relay Replacement Construction

Jan-21

$7,440

Facility Asset Protection

Hayes Pumping Station Rehabilitation Construction

Feb-21

$10,000

Deer Island Treatment Plant Asset Protection

South System Pumping Station VFD Replacement Construction

Feb-21

$20,553

Siphon Structure Rehabilitation

Construction

Mar-21

$3,960

Clinton Wastewater Treatment Plant

Screw Pump Replacement Phase 2 Construction

Apr-21

$2,300

Carroll Water Treatment Plant Asset Protection

LOX Yard Redundancy

Mar-21

$670

Deer Island Treatment Plant Asset Protection

Cathodic Protection - Construction

Apr-21

$6,403

Carroll Water Treatment Plant Asset Protection

OZONE Generator Re-Build

Mar-21

$930

Dam Projects

Quinapoxet Dam Removal - Construction

Apr-21

$600

Metropolitan Redundancy Interim Improvements

Section 101/Waltham Section - Const

Apr-21

$19,483

continued on page 43

APRIL, 2019

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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MWRA continued from page 41

MWRA Upcoming Contract Awards

Weston Aqueduct Supply Main 3 Rehabilitation • Bid Date: April 2020 • Est. Contract Value: $20.4 million

New Connecting Mains Sections 23, 24, & 47 Rehabilitation • Bid Date: April 2019 • Est. Contract Value: $14.3 million

Top of Shaft Improvements • Bid Date: September 2020 • Est. Contract Value: $2.5 million

Dorchester Interceptor • Bid Date: May 2019 • Est. Contract Value: $5.6 million

continued on page 45

APRIL, 2019

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

Lorusso Heavy Equipment LLC

160 Elm Street • Walpole, MA 02081 Phone: 508-660-7600 • Fax: 508-660-7614 www.lhequip.com 44

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APRIL, 2019

MWRA continued from page 43

MWRA Upcoming Contract Awards

Clinton Treatment Plant - Valve & Screw Pumps Replacement • Bid Date: May 2019 • Est. Contract Value: $2.5 million

Deer Island Clarifier Rehabilitation - Phase 2 • Bid Date: May 2019 • Est. Contract Value: $135 million

Nut Island Headworks Odor Control and HVAC Improvements • Bid Date: August 2019 • Est. Contract Value: $39.8 million

Northern Intermediate High Pipeline - Sections 89 & 29 Replacement • Bid Date: February 2020 • Est. Contract Value: $16 million

continued on page 47 APRIL, 2019

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APRIL, 2019

MWRA continued from page 45

MWRA Ongoing Projects

DeLauri Pump Station Upgrades: Daniel O’Connell’s Sons • Substantially Complete February 2019

Alewife Brook Pump Station Rehabilitation: Barletta Engineering Corp. • 95% Complete

Northern Intermediate High Pipeline, Stoneham: Albanese D&S, Inc. • 64% Complete

Southern Extra High Pipeline, Dedham: P. Gioioso & Sons, Inc. • 60% Complete

continued on page 49

APRIL, 2019

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APRIL, 2019

MWRA continued from page 47

MWRA Ongoing Projects

Southern Extra High Pipeline, Dedham South: RJV Construction Corp.

• 89% Complete

• 2% Complete

Deer Island Winthrop Terminal Facility VFD/Motor Replacements: J. F. White Contracting Co. • 39% Complete

APRIL, 2019

General Edwards Bridge Pipe Demolition: R. Zoppo Corp.

Deer Island Gravity Thickener Rehabilitation: Walsh Construction Company • 18% Complete

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Table 4 presents a summary of the 2019‐2021 capital expenditures for the Sewer System. Table 4 ‐ Sewer System Expenditures by Program Category Program

2019

2020

2021

$23,826,000 $1,272,000 $11,525,000 $200,000 $2,685,000 $39,508,000

$9,900,000 $568,000 $6,101,000 $800,000 $2,685,000 $20,054,000

2019‐2021

Boston Water & Sewer Commission Capital Improvement Program 2019-2021 Executive Summary Sewer R & R Increased Capacity Separation Infiltration/Inflow Sewer Special Total

$23,610,000 $950,000 $6,582,000 $100,000 $2,871,000 $34,113,000

$57,336,000 $2,790,000 $24,208,000 $1,100,000 $8,241,000 $93,675,000

NOTE: Although expenditures decrease for 2020 to 2021, it is anticipated that funding for 2021 will be equal to or greater than funding presented in 2020. The decrease in 2021 is primarily due to the CIP being a one‐year cash flow, over a three‐ year budget period.

he Boston Water and Sewer Commission (“the Commission” or “BWSC”) is a body politic and corporate and political subdivision of the Commonwealth created by Chapter 436 of the Acts of 1977 (“Enabling Act”). The Enabling Act abolished the water and sewer divisions within the City of Boston Public Works Department and transferred the ownership, operation and control of the water, sewer and storm drain systems to the Commission. As a public instrumentality, the Commission performs an essential public function in providing water and sewer services to the residents of the City of Boston. The Act authorizes the Commission to construct and make improvements to the water and sewer systems, establish and collect rates and charges for its services and finance its operations and improvements through revenue collections and the sale of bonds and notes payable solely from the Commission’s revenues. The Act further provides that any revenue surpluses earned by the Commission in any Fiscal Year shall be credited to the next year’s rates or returned to the City of Boston. Since its inception, the Commission has generated a surplus in each year of its operations and has credited the surplus to the reduction of the next year’s rates. 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”). 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. The Commission in compliance with the requirements of the Enabling Act and the Resolution, project costs of the Commission’s Capital Improvement Program from Fiscal Years 2019 through 2021 total approximately, $220.3 million. Since the Commission’s inception in 1977, the Commission has set forth its Capital Improvement Plan to provide for long-term capital improvements to its water dis-

APRIL, 2019

tribution and sewer collection systems, governed by a core commitment to prudent fiscal management. Comprehensive and well planned water distribution system maintenance and planning has sustained superior water service for our customers and resulted in a low incidence of system failures. The Commission has also led the industry in implementing effective water conservation measures, including dedication to deploying the most efficient technologies and practices enabling the Commission to maximize cost savings. The Commission utilizes effective conservation measures through continued efforts to eliminate leaks across the system through advanced leak detection technology and proactive maintenance of the system’s water mains.

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 comcontinued on page 52

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BWSC continued from page 51

mitted to various 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. The Commission is also committed to meeting and exceeding the requirements of all federal and state water and wastewater laws, regulations and technical standards. • 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 and fairly reflects its costs, properly distributes the financial obligation concerning its customer base and encourages water conservation. The metering, billing and collection process is a central focus of the Commission’s full management team and the Commission is committed to maintaining its strong record in that area. • To maintain a strong financial structure. The Commission has consistently employed conservative financial projections and budgeting assumptions, maintains adequate reserves and struck a reasonable balance between debt funding and rate funding of capital expenses.

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• To sustain the 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”) and Clean Water Act (“CWA”) with its National Pollutant Discharge Elimination System (“NPDES”) permitting obligations for both its stormwater systems and combined sewer systems. 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. 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. continued on page 53

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BWSC continued from page 52

Objectives The overall objectives of the Commission 20192021 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 Stormwater category was created in 2017 that focuses on Stormwater management. The primary purpose of the Stormwater Category in the 2019-2021 Capital Improvement Program is to engage in 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 fed-

eral regulations, 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 $100.6 million, or 45.7% of the 2019-2021 CIP. Sewer System projects comprise $93.7 million, or 42.5%, Support projects total $19.0 million, or 8.6% of the expenditures outlined in the program, and Stormwater projects account for $7.0 million, or 3.2% of the 2019-2021 CIP. Total capital expenditures of $85.9 million are outlined for 2019. Water Distribution projects comprise $41.4 million or 48.2%, Sewer System projects account for $34.1 million or 39.7%, Support projects account for $7.5 million, or 8.7% of the 2019 amount. Stormwater projects totaling $2.9 million consist of the remaining 3.4% of the 2019 amount. Tables 1 and 2 on the following page represent the cash flow expenditures and funding sources for the Commission’s 2019-2021 CIP. continued on page 54

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BWSC continued from page 53

2019-2021 CIP Cash Flows Table 1

PROGRAM Water

2019

2020

2021

TOTAL

$ 41,412,000 $ 39,403000 $ 19,850,000 $ 100,665,000

Sewer $ 34,113,000 $ 39,508,000 $ 20,054,000 $ 93,675,000 Support

$ 7,500,000 $

8,565,000 $ 2,940,000

$ 19,005,000

Stormwater

$ 2,850,000 $

2,824,000 $ 1,305,000

$ 6,979,000

TOTAL

$ 85,875,000 $ 90,300,000 $ 44,149,000

$ 220,324,000

NOTE: Although expenditures decrease from periods 2020 to 2021, it is anticipated that funding for 2021 will be equal or greater than funding presented in 2020. The decrease in 2021 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.

2019-2021 CIP Funding Sources Table 2 FUNDING SOURCE

2019

2020

2021

TOTAL

BWSC Bonds

$ 52,583,000

Rate Revenue

$ 16,567,000 $ 20,445,000 $ 13,863,000 $

MWRA Water Assistance

$ 11,311,000

7,379,000 $

6,254,000 $ 24,944,000

MWRA I/I Assistance

$ 5,414,000

$ 13,445,000 $

6,071,000 $ 24,930,000

TOTAL

$85,875,000 $ 90,300,000 $ 44,149,000 $ 220,324,000

$ 49,031,000 $ 17,961,000 $ 119,575,000 50,875,000

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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. Table 12 and Graph 5 present the 2019‐2021 capital expenditures the Water BWSC continuedfor from page 54 Distribution System. Graph 6 depicts the funding source application of the Project Highlights 2019‐2021 capital expenditures. Graph 7 illustrates The Commission’s CIP includes projects to imthe spending by the program for 2019. Three‐year prove the overall efficiency and to enhance the Comexpenditures are projected to be $100.7 million, of mission's ability to provide services to its customers. which $41.4 million is anticipated to occur in 2019. The projects included in this CIP are intended to accomplish these objectives in the most efficient and The three‐year amounts are distributed in the Water cost-effective manner. The Commission intends to Program as follows: Replacement $85.7 million or enhance Boston’s water and sewer infrastructure with 85.1% and Special $15.0 million or 14.9%. several targeted projects included in the 2019-2021 Capital Improvement Program. Some of the major projects are listed below: • Water Main Replacement Program • Sewer and Drain Replacement Program • Sewer Separation and System Improvements in South Boston • Sewer Separation in Roxbury • Sewer Separation in East Boston • City-wide Illegal Connections Investigations • Upgrades to Union Park Pumping Station & Satellite Stations

•

Projects affiliated with the Consent Decree; includes cleaning and televising ninety miles Water Main Replacement in the South End of sewer and drains • Implement Stormwater/Green Infrastructure Program designed to improve water quality, the environment and manage stormwater resources26 • Improvements to Information Technology NOTE: The full description and forecasted budgets of individual projects are available in the Sewer R & R, Sewer Separation, Sewer Special & Stormwater sections of the complete 2019-2021 CIP at www.bwsc.org. n continued on page 57

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BWSC continued from page 55

BWSC 2019-2020 CIP Upcoming Projects WATER MAIN REPLACEMENT 2019 Neighborhood Fenway / Roxbury

Length

Cost

Award Date

$5.4

April, 2019

City Proper – Beacon Hill 3,600 ft.

$6.2M

May, 2019

Mattapan / Hyde Park

5,000 ft.

$3 M

May, 2019

East Boston

6,000 ft.

$4.5 M

June, 2019

Dorchester / Fenway

6,100 ft.

$3.8 M

June, 2019

City-wide

6,800 ft.

$3.6 M

South Dorchester

2,000 ft.

$2 M

City Proper - Central City Proper - Chinatown

10,000 ft. $8.0 M 3,000 ft $4 M

City Proper - Central

6,000 ft

$5 M

53,500 ft

$45.5 M

Totals

5,000 ft.

Length

Cost

South End

6,500 ft.

$5.1 M

April, 2020

Sept, 2019

Charlestown

8,800 ft.

$7.1 M

April, 2020

Sept, 2019

City-Wide

4,300 ft.

$3.4 M

June, 2020

City Proper – West End Totals

7,000 ft. $6.5 M 26,600 ft $22.1 M

Nov, 2019 Dec, 2019 Dec, 2019

Sewer and Drain Replacement 2019 Length

Cost

City-wide

26,000 ft.

$9.6 M

April, 2019

East Boston Separation II

5,300 ft.

$6.2 M

April, 2019

Allston

6,500 ft.

$2.2 M

May, 2019

City Proper – N.E.

2,000 ft.

$2.5 M

July, 2019

South Dorchester

5,100 ft.

$7 M

Aug, 2019

Dorchester

3,000 ft.

$4 M

Aug, 2019

Neighborhood

WATER MAIN REPLACEMENT 2020

Award Date

Neighborhood

City Proper

1,800 ft.

$1.2 M

Aug, 2019

Brighton (culvert) City-Wide

85 ft. Tide Gates

$0.3 M $1.2 M

Sept, 2019 Oct, 2019

Fenway Mattapan / Roslindale Mattapan / Roslindale

11,000 ft 18,000 ft 12,000 ft

$5.4 M $3.5 M $7 M

Nov, 2019 Dec, 2019 Dec, 2019

APRIL, 2019

Length 13,500 ft.

90,800 ft

$50.1 M

Separation Projects - CSO

Sewer Separation 2020 Neighborhood

June, 2020

Sewer and Drain Replacement 2019 (Continued)

GRAND Total

East Boston Separation Phase III

Award Date

Cost $9 M

Award Date April 2020

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Patrick W. Saltmarsh Corporate Safety Director J. Derenzo Companies

If You See Something …Say Something “Good communication is the bridge between confusion and clarity” ~ Nat Turner Email and texting has revolutionized and forever changed the way we communicate with each other. It is undeniably quick and efficient, and there is no question that many employees prefer to text or email one another rather than pick up the phone. Emailing colleagues and associates in other companies has become a modern day tool for communicating efficiently, however the message can often times be misunderstood. This has recently become a chief complaint of mine when working with and communicating with other Safety Managers.

ow you can call me old fashioned, but when it comes to communicating safety issues and concerns, nothing can ever replace a good old fashioned, face to face conversation or telephone call. Safety managers hiding behind their computer or phone screen, not only lacks courage and professionalism, but it can also cause dissension among colleagues and company personnel. The lack of consideration combined with possible misinterpretation can risk permanent damage to relationships and unravel any progress made by a poorly worded message or an all-inclusive “cc” distribution list on your email. Many of us have heard the phrase, “if you see something, say something.” This motto holds true in construction and should be the primary function of any safety manager that steps foot onto a construction site. I feel that too much of a good thing is a bad thing, and the overuse of email or text messaging is getting in the way of addressing the problems when you see them and discussing those concerns with the involved employees. No lessons APRIL, 2019

can be learned if you simply return to your office or car and type up a site inspection, or list your concerns in the body of an email and send it to a long list of recipients. There isn’t a foremen, superintendent, or fellow safety manager that will appreciate receiving an email pointing out issues that could have simply and easily been addressed. Especially if a conversation with the employee would have cured the problem. As painful as the interaction may be for some, you must find your voice and push through the discomfort of having that awkward conversation. The tendency to avoid confrontation is based in fear that once you have presented an issue to the employee, he or she will simply deny wrong doing, argue with you, or make excuses. If you haven’t developed the communication skills to properly engage in a conversation like this, both parties will end up walking away frustrated and you will have lost a golden opportunity to explain the safety concern and modify the work practice of your fellow employee. continued on page 60

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Safety Corner continued from page 59

J. Derenzo Co. Foremen Tyson Pacheco operating a tagline and providing direction while relocating a catch basin.

Wouldn’t it be nice if each day everything went smoothly, with everyone working in perfect unison. But we know that is never the case. Work can get messy. Being a great company, or team, takes effort. And often, it requires a willingness to push through awkward moments and take on uncomfortable situations. In order to work safer today, than we did yesterday, don’t distance yourself from the job site, show up and be present. Most importantly, “if you see something, SAY SOMETHING.” n

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Cape and Islands Legislators Seek to Tweak Water Protection Fund HYANNIS — The new tax that is the source of funding for the Cape Cod and Islands Water Protection Fund won’t be levied until summer, but the Cape and Islands legislative delegation has already requested technical corrections and clarifications to the law establishing it.

letter, signed by all eight members of the delegation, was sent Tuesday (March 19) to state Sen. Michael Rodrigues, D-Westport, and Rep. Aaron Michlewitz, D-Boston, chairmen of their respective committees on ways and means. In the letter, the lawmakers request that the corrective language related to the fund be included in the state’s final Fiscal Year 2019 Supplemental Budget bill. The language had already been included in the Senate version of the bill. “Since the law was enacted in July of 2018, towns in Barnstable, Dukes, and Nantucket Counties have asked for changes to ensure that there are unambiguous procedures for implementation of the law,” according to the letter. “In addition, the Clean Water Trust and the Management Board for the fund have requested clarification with regard to duties and authority of the Management Board. Perhaps most importantly, nearly all stakeholders have emphasized that there must be data collection and unbiased oversight to ensure that funds are distributed equitably to member towns.” The fund is financed by a 2.75 percent tax, established as part of state’s new short-term rental tax, which will be collected in Cape towns to help offset the multibillion dollar costs of the region’s wastewater cleanup efforts. The fund’s management board is composed of one appointed member per town, who

APRIL, 2019 2016 SEPTEMBER,

must be a selectman, town councilor, town manager or administrator or other municipally employed professional staff. One change proposed by the delegation would require the state Department of Revenue to provide the management board with a report detailing the amount of tax collected from each town, and mandate it to maintain financial records and produce an annual report detailing revenue, expenses and projects to be funded. An annual independent audit of financial records, along with a report to certain members of the Legislature, would also be required. Other recommended changes apply only to Nantucket and the six towns on Martha’s Vineyard if they choose to opt in to the fund. It would allow participation in the fund through a board of selectmen vote, and enable island towns to submit a “suitable equivalent” wastewater management plan to the Massachusetts Department of Environmental Protection for approval. Nantucket and the Vineyard, unlike the 15 towns on Cape Cod, are not subject to a federally mandated Section 208 water quality management plan. Leaders of the Cape’s largest town have already expressed concerns it may not get equitable distribution — “a dollar in for a dollar out” — from the new Cape Cod and Islands Water Protection Fund. continued on page 63

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APRIL, 2019

Cape Cod continued from page 61

“We won’t have good data on what’s coming in until after 2020,” he said. “We do not yet know from which towns money will be generated.” Cyr contends that some smaller towns, where vacation rentals command higher rates, may actually contribute more to the fund than some may think. He also maintains the current fund structure is wellsuited for regional, watershed-based challenges and will benefit those towns that are ready to implement solutions sooner than other towns. “A lot of thought has gone into the structure of this fund, including equitable distribution,” said Cyr. “The intention of this fund is to be a win-win for every town that is a member. If we have a water quality problem anywhere in the region, it will have an effect everywhere in the region. Tourists don’t distinguish between town boundaries, they think of ‘the Cape.’” Written by Geoff Spillane. Reprinted from Cape Cod Times. continued on page 65

“Barnstable wants Barnstable’s money,” said Town Council President James Crocker. “Until we have enough we don’t have enough. We are committed to put our money to work here.” In a unanimous voice vote earlier this month, the council supported working toward modifications to ensure the town receives a fair and equitable share of the fund. Potential changes suggested include instituting a weighted vote per town on the management board, regrouping as a smaller coalition of towns with shared watersheds or requiring a supermajority vote if amounts awarded exceed the amount contributed by a community. The council formally appointed Town Manager Mark Ells as its representative to the fund’s management board at its meeting Thursday (March 21) night. In January, the chairwoman of Provincetown’s Select Board had also voiced concerns that her town would not get its fair share of the water protection fund and raised the possibility of opting out; other Provincetown officials appeared to have little apMBO Precast Inc. petite for the move. 4 Marion Drive • Carver, MA 02330 “I think the reporting requireT: 508-866-6900 • F: 508-866-5252 ments we are adding into the law www.MBOPrecast.com based on feedback from towns, including Barnstable, will strengthen accountability and transparency to Stone Strong Retaining Wall Systems ensure equitable distribution of reManholes / Catch Basins / Custom Structures sources from this fund,” said state Septic Tanks / Leaching Products Sen. Julian Cyr, D-Truro. Cyr, who along with state Rep. Sarah Peake, D-Provincetown, led the charge on Beacon Hill to establish the fund as part of the short-term rental tax bill, thinks it’s early in the game to consider major modifications such as those floated in Barnstable.

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APRIL, 2019

Cape Cod continued from page 63

Cost Estimates Surge for Harwich Wastewater Management Plan HARWICH – Cost estimates are in for Harwich’s comprehensive wastewater management plan, and figures have shifted sharply upward.

onsultants with CDM Smith informed selectmen last month that the town can expect to pay $300 million if they opt for their own system. Also on the table, is a proposal for a joint system with Dennis and Yarmouth which experts say would run roughly $260 million. Either plan is well in excess of the $240 million that town officials had been expecting. “These are 2022 cost numbers,” consultant David Young told the board, “The $240 million was based on 2016. We’re using three percent inflation, that’s how your $240 million went to $300 million.” Young went on to say that Harwich could see substantial savings through sharing infrastructure components with Dennis and Yarmouth and illuminating the need for their own water treatment facility. According to CDM Smith, they are still looking at additional cost savings measures including working

with the commonwealth’s Department Of Transportation to coordinate roadway projects. Any final decision on a wastewater plan would need approval from town meeting voters. Reprinted from capecod.com n

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UCANE’s 8th Annual Trade Show

CANE’s 8th Annual Trade Show met all expectations with almost 400 members and guests in attendance, and close to 40 participants in this year’s Trade Show. And with 135 contractors in attendance, it was obviously a great networking opportunity for our members. Once again, this event was held at the Sheraton Four Points Hotel in Norwood, MA, prior to our March Forecast Dinner Meeting, with the primary goal of supporting our members who advertise in Construction Outlook magazine. To our 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 successful for the exhibitors, who are provided with a complimentary booth, as our way of thanking them for supporting UCANE by advertising in our magazine. The feedback from the participants was overwhelmingly positive. Contractors are drawn to this Dinner Meeting to hear agency heads from the MassDEP, MWRA, and BWSC present their forecasts for water and sewer projects for the upcoming construction season and beyond; and to support our Associate Members, who generously support UCANE in so many ways, in addition to advertising in our magazine.

Those who attended our Trade Show received promotional items from our vendors, and some, if they were lucky, received one of the great prizes donated by our members. The prizes included an iPad Mini from Scituate Concrete Products Corp.; 4 Red Sox Tickets from U.S. Pipe; 3-$100 American Express Gift Cards from Core & Main; 4 Bruins Tickets from Concrete Systems, Inc.; 2-$100 Capital Grille Gift Cards and 2 Pair of Red Sox tickets from Shea Concrete Products, Inc.; 2 Red Sox Tickets from Eastern States Insurance Agency, Inc.; 2 Celtics Tickets in the Board Room from W. L. French Excavating Corp.; 2 Red Sox Tickets from Taylor Oil Company; as well as a Basket of 10 fine wines, Dinner for 2 at Ocean Prime Restaurant, a Pair of Bose Audio Sunglasses, a YETI Tundra 35 Cooler, and a Toshiba 50-inch Class LED-2160p Smart TV all donated by Volvo Construction Equipment and Woodco Machinery, Inc. UCANE’s Trade Show is just another way we thank our Construction Outlook advertisers for their support throughout the year. They make it possible for us to continue to publish our nationally recognized magazine, and to get our industry’s message about the need for clean drinking water and pollution control projects out to cities and towns, DPW directors, state agency heads, legislators, and many companies and groups in the water protection, management, and environmental communities. Construction Outlook magazine is a vehicle for com-

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

APRIL 2019

panies 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 e-newsletter, 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 9th Annual Trade Show next year, please contact Suzanne at the UCANE office for Construction Outlook magazine advertising opportunities.

APRIL, 2019

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APRIL 2019

Thank You to All of Our Trade Show Participants ATS Equipment, Inc. American Shoring Inc. B2W Software, Inc. C & S Insurance Agency Centinel Financial Group, LLC Concrete Systems, Inc. Core & Main DeSanctis Insurance Agency, Inc. EJ Eastern States Insurance Agency, Inc. Ferguson Waterworks Hydrograss Technologies, an RB Arello Co. Industrial Safety & Rescue Lorusso Heavy Equipment, LLC MBO Precast, Inc. MJ-Hammer Milton CAT Minuteman Trucks, Inc. National Trench Safety North East Shoring Equipment, LLC Northland JCB Ocean State Oil E. J. Prescott, Inc. Putnam Pipe Corp. Rain For Rent – New England Ritchie Brothers Auctioneers Schmidt Equipment, Inc. Scituate Concrete Products Corp. Scrap-It, Inc./Minichiello Bros., Inc. Shea Concrete Products, Inc. Starkweather & Shepley Ins. Brokerage, Inc. Systems Support Corporation Taylor Oil Company Tonry Insurance Group, Inc. United Concrete Products, Inc. United Rentals Trench Safety Volvo Construction Equipment C. N. Wood Company, Inc. Woodco Machinery, Inc.

APRIL, 2019

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APRIL, 2019

John E. Merchant, CPA

Client Bulletin

Cullen, Murphy & Co., P.C.

IN THIS ISSUE

• The Standard Deduction’s Double Standard • Homeowner’s Insurance Protects a Prime Asset • Roth Solo 401(k)s for (Very) Small Businesses

Smart tax, business and planning ideas from your Tr

The Standard Deduction’s The standard deduction’s double stand Double Standard

he 2019 “tax season,” during which most 2018 tax returns are prepared, will soon peak at the April 15 deadline. One key trend is that more people are taking the standard deduction, which has increased significantly, and fewer people are claiming itemized deductions, which have been restricted. These changes result from passage of the Tax Cuts and Jobs Act (TCJA) of 2017, which affects preparation of 2018 tax returns.

IRS considers t total is a $26,6 $24,000 + $1,3 basic standard increases to $2

The Millers pay state income a but their SALT $10,000. Assum deductions the mortgage inter contributions. A claim $20,000 ing their $26,600 standard deduction. Drilling down, this shift is greater for married they would be b The 2019 “tax season,” during mostto claim Many married couples will findwhich it difficult couples filing joint returns than for single taxpayers. standard dedu tax returns are prepared, soon amount. more2018 itemized deductions than theirwill standard That’s because state and local tax (SALT) deductions peak at the April 15 deadline. One key trend are capped at $10,000 on single and joint returns. Easier Singles Many married is that more people for are taking the standard Single taxpayers are finding it easier to find value in claim more item deduction, which has increased significantly, Conversely, many single taxpayers are finding itemizing compared with couples filing jointly. standard amou and fewer people are claiming itemized that it still pays to itemize. deductions, which have been restricted. Example 1: George and Heidi Miller are both Example 2: Laura Carson, age 67, is age 67. On their joint 2018 tax return, they can claim These changes result from passage of unmarried. the Easier for sing On her 2018 tax return, Laura can claim a $12,000 a $24,000 standard deduction, plus an extra $1,300 Tax Cuts and Jobs Act (TCJA) of 2017, which Conversely, ma standard deduction, plus an extra $1,600, because each, because the IRS considers them aged (over affects preparation of 2018 tax returns. finding that it s she is over 65. Laura’s total is a $13,600 standard de65). Their total is a $26,600 standard deduction: duction: $12,000 $1,600. 2019, for those numbers $24,000 + $1,300 + $1,300. (In 2019, the basic stanDrilling down,+this shift is(Ingreater married Example 2: Lau increase to $12,200 and $1,650, respectively.) dard deduction on joint returns increases to $24,400.) couples filing joint returns than for single unmarried. On As is the case with the Millers example taxpayers. That’s because stateinand local 1, ascan claim a $12 The Millers pay more than $30,000 in state insumetax Laura can take a $10,000 SALT come and local property tax, but their SALT deduc(SALT) deductions are capped at deduction; plus an extra $ $6,000 of mortgage $4,000 for charition is capped at $10,000. Assume the only other $10,000 on singleinterest, and jointand returns. Single 65. Laura’s tota tabletaxpayers donations. totalitofeasier $20,000 is value greater than itemized deductions they can claim are $6,000 for areHer finding to find deduction: $12 her $13,600 standard deductions, so it makes mortgage interest and $4,000 for charitable contribuin itemizing compared with couples filing sense numbers increa for Laura to itemize. tions. Altogether, the Millers could claim $20,000 of jointly. respectively.) itemized deductions, but they would be better off takcontinued on page 75 Example 1: George and Heidi Miller are both As is the case w age 67. On their joint 2018 tax return, they 1, assume Laur “BUY FROM THE ADVERTISERS can IN CONSTRUCTION OUTLOOK” APRIL, 2019 claim a $24,000 standard deduction, 73 deduction; $6,0 plus an extra $1,300 each, because the $4,000 for cha

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Financial Management continued from page 73 The previous examples use taxpayers over age 65. Younger single people also may be likely to itemize because they have only a $12,000 hurdle to clear ($12,200 in 2019), which would mean $2,000 ($2,200 in 2019) in other deductions if they face the $10,000 cap on their SALT deductions.

Planning Points Under the TCJA, married couples may find it difficult to itemize deductions. As mentioned in the March 2019 Financial Management article, people older than 70½ might want to tap their IRAs for qualified charitable distributions because other contributions deliver no tax benefit for those who take the standard deduction. Younger people may want to front load years of charitable contributions into a donor advised fund, if that results in itemizing for the contribution year. Married couples with children or other loved ones who file a single tax return may want to make family gifts instead of charitable gifts; in 2019, each person can give up to $15,000 per recipient with no gift tax consequences. The recipient may be able to make the desired donation, itemize deductions, and keep a tax benefit in the family. As for single taxpayers, the key point is to keep itemized deductions in their tax planning. Even with the $10,000 SALT cap, the standard deduction might not be the best option. Maintain careful records of all medical or dental expenses, which might be deductible, and use savvy tactics for charitable giving, such as donating appreciated securities instead of cash. Itemized deductions are still an option, even if only largely for single filers. continued on page 76

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APRIL, 2019

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Financial Management continued from page 75

Homeowner’s Insurance Protects a Prime Asset

rom coast to coast, hurricanes and wildfires and other natural disasters have created headlines while destroying homes. Your principal residence is probably a valuable asset, so you should be confident your homeowner’s insurance can protect you against multiple perils. Chances are, your first experience with homeowner’s coverage probably coincided with your first home purchase, which you financed with a mortgage. Many lenders require such insurance, and proof of adequate coverage may be part of the closing process. Comprehensive Coverage

Regardless of whether you still have a sizable home loan, you should have a homeowner’s policy

that will cover you and your family as well as the lender. For instance, the policy should have limits that are adequate to replace or rebuild your home after a complete destruction, not just repay the outstanding mortgage loan. Damage or theft of personal possessions also should be covered. Liability insurance should protect your other assets if a visitor or worker is injured on your property. Other provisions you might look for include coverage of other buildings on your property (garage, storage shed), living expenses if damages force you to relocate, and theft of possessions. You also might need specialized coverage if you are concerned about damage from floods, sinkholes, or earthquakes.

Proving Loss of Personal Property To jog your memory of your possessions, which may be vague if your house and everything in it has been destroyed, it’s a good idea to take room-by-room photographs of your possessions and keep them in a continued on page 77

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Financial Management continued from page 76 remote safe deposit box. It’s also advisable to make a specific listing of particularly valuable items, with information about purchase date and price. Your homeowner’s insurance company may have suggested forms that you can use to list personal property items before a loss happens. Such information may make negotiating a claim with the insurer quicker and easier.

Finding Good Hands To get the coverage you want, at a reasonable price, you can shop around to compare offerings from multiple insurers. If you are satisfied with your auto insurance coverage (see the January 2019 Financial Management article), look into that company’s homeowner’s policies. You also can question relatives, friends, or business associates to see if they’ve had good experiences with an insurer’s homeowner’s policy.

State Your Claim Keep in mind that homeowner’s insurance coverage is not limited to natural disasters that destroy a home. Lesser damages also may be covered to help you pay for repairs or reconstruction. For example, if you experience a leak in the upstairs shower that results in damage downstairs, you can file a claim and

see how the insurer responds. Don’t be reluctant to file small claims. They may provide some needed cash while having little or no effect on future premiums. That said, you might not want to claim a minor occurrence, so why choose a $250 or $500 deductible? A $1,000 deductible may bring down ongoing premiums dramatically. If you have a claim that runs into five figures, be prepared for some pushback from your insurer. You probably will need an estimate of the amount of money involved. The insurance company may suggest contractors to provide the estimate, but you might prefer to get one from someone else if you have a reputable worker who has completed satisfactory projects for you in the past.

Dealing with Disputes A homeowner’s insurance company probably has its own formula for estimating the cost of satisfying your claim, and its number may be much lower than one from your contractor. Getting photos and filing your claim as soon as possible may help to lessen the disagreement; and a formal explanation of the likely expenses might lead to a better settlement offer. You may wind up with a compromise that reimburses you for most, if not all, of your costs. continued on page 78

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Financial Management continued from page 77

Roth Solo 401(k)s for (Very) Small Businesses

he Tax Cuts and Jobs Act (TCJA) of 2017 was not officially focused on retirement planning, but it has had a major impact on the choice of retirement plans. After-tax plans, known as Roth accounts, may be more practical now. That can be especially true regarding solo 401(k)s, which are 401(k) plans that cover business owners (including sole proprietors) without employees (other than the owners and their spouses).

Under the TCJA, the income caps for married couples filing joint tax returns is twice the upper limit for single filers in all tax brackets. In most brackets, that’s a much wider gap than had been the case in the past. Example 1: Tom and Stella Smith have around $300,000 a year in taxable income after deductions.

In 2017, before passage of the TCJA, their tax bracket was 33%. If they added an extra $1 of income, they would have owed 33 cents more to the IRS. On the other hand, if Tom put $1 into a pretax retirement plan, the couple would have deferred 33 cents in income tax. In 2017, the Smiths might have expected to be in the 28% tax bracket in retirement. (That year, the 28% bracket covered taxable income ranging from $153,100 to $233,350). Deferring tax at 33% and ultimately paying tax at 28% seemed like an attractive scenario.

New Rates In 2019, federal income tax rates have been lowered and the upper limits for tax brackets have risen. Example 2: Tom and Stella expect the same $300,000 in taxable income in 2019, which puts them in a 24% tax bracket. continued on page 79

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Financial Management continued from page 78 Moreover, current law calls for a return of 2017 tax rates after 2025. The thought of deferring tax at 24% in a pretax retirement plan, and eventually taking distributions in what could be a 28% tax bracket after 2025, reduces the appeal of pretax retirement plans. Not all business owners will be in situations such as those illustrated in examples 1 and 2. Nevertheless, the underlying principles apply broadly. Lower tax rates make tax-deferred retirement plans less appealing, especially given the prospect of higher tax rates prevailing in the future.

After-Tax Plans If pretax retirement plans are less attractive under the TCJA, then after-tax plans may be worth exploring. These plans are known as Roth options, because the Roth IRA was the first such plan. With Roth plans, contributions are made with aftertax dollars. In essence, you pay tax now using today’s relatively low rates. Money compounds tax-free inside the plan, and all distributions might be tax-free in the future. Typically, you must be at least age 59½ and meet a five year holding period test for all distributions to qualify for tax-free treatment.

Some popular small business retirement plans, such as SEP-IRAs, don’t offer Roth versions. Therefore, a 401(k) with a Roth option might be a good choice. As a business owner, you can choose to put contributions on the Roth side, and your employees can do the same. Self-employed individuals and business owners with no employees (other than themselves and their spouses) can have a solo 401(k) with a Roth option. Solo 401(k) plans and their Roth versions do not require nondiscrimination testing, which can be costly for business owners with regular 401(k) plans.

Copious Contributions In 2019, participants in solo 401(k) plans can contribute as much as $19,000 from their earnings, or $25,000 if they are 50 or older. In addition, employer contributions can be up to 25% of compensation, to a maximum of $56,000 in total contributions. Self-employed participants face somewhat different rules, possibly lower contribution limits, and a requirement that employer contributions go into the pretax 401(k). However, it may be possible to pay the tax on those pretax contributions at today’s tax rates and move the dollars over to the Roth version, if the paperwork allows such inplan Roth conversions. Reprinted from CPA Client Bulletin. n

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Advertisers’ Index ATS Equipment, Inc. .............................................................24 American Shoring, Inc........................................ Ins. Back Cvr. Aon Construction Services Group.........................................64 B2W Software, Inc................................................................. 74 BakerCorp..............................................................................65 Benevento Companies..........................................................16 Boro Sand & Stone Corp.......................................................70 Brennan Consulting............................................................... 74 Dennis K. Burke, Inc..............................................................62 C&S Insurance Agency..........................................................26 Centinel Financial Group, LLC.................................................9 Concrete Systems, Inc...........................................................14 Core & Main.............................................................................4 Dagle Electrical Construction Corp.......................................10 Darmody, Merlino & Co., LLP................................................63 Dedham Recycled Gravel......................................................76 DeSanctis Insurance Agency, Inc. ........................................15 Dig Safe System, Inc.............................................................79 The Driscoll Agency...............................................................58 Eastern Insurance Group, LLC..............................................12 Eastern States Insurance Agency, Inc..................................77 Eastpoint Lasers, LLC...........................................................72 T. L. Edwards, Inc..................................................................54 Ferguson Waterworks............................................................70 Gorilla Hydraulic Breakers.....................................................64 L. Guerini Group, Inc..............................................................72 HD Supply Const. & Industrial AH Harris/White Cap..............2 Hinckley Allen LLP.................................................................30 John Hoadley & Sons, Inc.....................................................13 Hydrograss Technologies Inc................................................52 Industrial Safety & Rescue....................................................53 JESCO...................................................................................78 P. A. Landers, Inc...................................................................32 Lawrence-Lynch Corp............................................................62 Lorusso Corp.........................................................................72 Lorusso Heavy Equipment, LLC............................................44 MBO Precast, Inc...................................................................63 MJ-Hammer...........................................................................20 Mass Broken Stone Company...............................................65 Milton CAT...............................................................Back Cover Minuteman Trucks, Inc...........................................................70 NSI Contracting .....................................................................37 Norfolk Power Equipment, Inc...............................................75 North American Crane & Rigging LLC..................................40 North East Shoring Equipment, LLC.....................................56 Northland JCB........................................................................60 Ocean State Oil......................................................................33 Palmer Paving Corp...............................................................60 Pawtucket Hot Mix Asphalt....................................................21 E. H. Perkins Construction Co., Inc.......................................80 Podgurski Corp...................................................................... 74 E. J. Prescott, Inc................................................Ins. Front Cvr. Putnam Pipe Corporation......................................................31 Rain For Rent-New England..................................................38 Read Custom Soils................................................................56 Ritchie Bros. Auctioneers......................................................36 Rogers & Gray Insurance......................................................48 Schmidt Equipment, Inc...........................................................1 Scituate Concrete Products Corp............................................6 Scrap-It, Inc............................................................................ 11 Shea Concrete Products, Inc. ...............................................28 SITECH New England............................................................34 Starkweather & Shepley Ins. Brokerage, Inc........................18 Systems Support Corporation...............................................56 Tonry Insurance Group, Inc...................................................75 Travelers.................................................................................42 United Concrete Products.....................................................19 United Rentals Trench Safety................................................46 Webster One Source.............................................................64 C. N. Wood Co., Inc. .............................................................50 Woodco Machinery, Inc...........................................................8 Xylem Dewatering Solutions Inc............................................55

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GET MORE EVEN ON THE NEW CAT® WHEEL LOADERS THAT SET THE STANDARD FOR RELIABILITY, PRODUCTIVITY, FUEL EFFICIENCY, VERSATILITY AND OPERATOR COMFORT. You’ve got budgets to meet and expectations to exceed. Milton CAT is here to help. Our industry-leading equipment is designed with the power, versatility, efficiency, ease of operation and reliability you need to cut costs, not corners. Because when there’s Cat ® yellow in your lot, there will be more money in your wallet.

0% FOR 48 MONTHS WITH ZERO DOWN ON ANY NEW WHEEL LOADER (938 AND SMALLER), SMALL DOZER (D5 AND SMALLER), BACKHOE LOADER OR TELEHANDLER. Milford 100 Quarry Drive (508) 634-3400

North Reading 84 Concord Street (978) 276-2400

miltoncat.com

Financing offer valid from February 1, 2019 to June 30, 2019 on select models of new machines manufactured by Caterpillar Inc. Building Construction Products Division. To be eligible, a sales contract must be signed during the offer period. Offer cannot be combined with any other offers. Prior purchases do not qualify. Offer subject to machine availability. To receive the financing offer, all balances must be financed through Cat Financial, subject to credit approval through Cat Financial. Financing rate is subject to approval and not all buyers will qualify. Higher rates apply for buyers with lower credit ratings. Payments are based on an installment sales contract with 48 monthly payments and $0 down. Payments may vary. Offer is subject to change without prior notice and additional terms and conditions may apply. ©2019 Caterpillar. All Rights Reserved.