Construction Outlook February 2017

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

FEBRUARY, 2017

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• UCANE Files Legislation to Fund Water Infrastructure • MassDEP Releases FINAL CY17 Clean Water & Drinking Water SRF Lists • EPA Launches New Program With $1 Billion in Loans Available for Water Infrastructure Projects

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

Years of Excellence 1954-2017

FEBRUARY, 2017

IN THIS ISSUE

OFFICERS President PAUL SCENNA

Albanese D&S, Inc.

President-Elect RICHARD PACELLA, JR.

3 President’s Message:

2017 Infrastructure Spending Advocacy Efforts Well Underway

5 Legislative Update:

• 2017-2018 Legislative Session Begins; UCANE Files Legislation to Fund Water Infrastructure • Baker-Polito Administration Files FY18 Budget Proposal; Health Care Changes Proposed • Governor Files Article 87 Petition to Move Department of Public Safety Boards • Second Round of Complete Streets Funding Released by MassDOT • Citing Recent Report, Another Editorial Board Urges Action on Water and Sewer Infrastructure

R. M. Pacella, Inc.

Treasurer MARCELLA ALBANESE

Albanese Brothers, Inc.

Secretary RYAN McCOURT

McCourt Construction Company

BOARD OF DIRECTORS VINCENT BARLETTA

Barletta Heavy Division

JOHN BERKSZA

Eastern Insurance Group, LLC

NICK BIELLO

J. D’Amico, Inc.

TONY BORRELLI

Celco Construction Corp.

GERRY CARNEY, JR.

C. N. Wood Company, Inc.

KEVIN COLE

J. F. White Contracting Co.

BRIAN COONEY

C. C. Construction, Inc.

GREG FEENEY

Feeney Bros. Excavation, LLC

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

MARCO GIOIOSO

P. Gioioso & Sons, Inc.

A. J. LORUSSO

Lorusso Heavy Equipment, LLC

AL MORTEO

FED. CORP.

JOHN OUR

Robert B. Our Co., Inc.

JOSEPH PACELLA

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

CHRIS VALENTI

GVC Construction, Inc.

KEN VOGEL

WES Construction Corp.

PETER WILLIAMSON

LM Heavy Civil Const., LLC

DAVID ZOPPO

R. Zoppo Corp.

ANNE KLAYMAN

Executive Director

15 MassDEP Releases FINAL CY2017 Clean Water & Drinking Water SRF Lists Totaling Over $580 Million 27 EPA Launches New Program With $1 Billion in Loans Available for Water Infrastructure Projects 29 Auditor Bump Calls for Holistic Approach to Meeting Municipal Water Infrastructure Needs 30 Associate Member of the Month:

ConConn: The Online Destination for the Horizontal Construction Industry

37 UCANE’s 6th Annual Appreciation Night Trade Show 39 Spotlight on Cape Cod: Cape Water Agency’s Future Murky

42 UCANE’s January Dinner Meeting 47 UCANE’s Safety Corner:

Cell Phones at the Workplace: Managing the Hazards

53 55 57 61 63

2017 Jobsite Safety Awareness Refresher Seminar UCANE’s 2017 Scholarship Applications Now Available CWCC February 2017 Insights UCANE’s Safety Manuals Now Available Financial Management: • After-Tax Dollars in Traditional IRAs • “Combo” Products for Long-Term Care Coverage • Defined Benefit Plans for (Very) Small Companies

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Magazine Designer: Sherri Klayman Construction Outlook Chairman: Paul Scenna Editorial Board: Paul Scenna, Richard Pacella, Jr., Marcella Albanese, and Ryan McCourt CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; Email: aklayman@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff. Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Brockton, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

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2017 Infrastructure Spending Advocacy Efforts Well Underway Talk of infrastructure, and water in particular, has been anything but quiet since the new administration took office. At every level of government, there is a realization that something has to be done to repair or replace our aging infrastructure, and the growing funding gap needed to get the job done.

A

t the Federal level, President Trump made infrastructure a central issue of his campaign, and his plan has called for a significant increase in funding for the State Revolving Loan Fund Program (SRF), which is the main source of water infrastructure funding for Massachusetts. It was even mentioned in his inaugural address.

Both the Democrats and Republicans in Congress now support an aggressive infrastructure bill.

The problem remains, how large the bill should be and how it will be funded. Another ongoing issue is how the definition of “infrastructure” is being blurred.

Traditionally infrastructure has been defined as roads, bridges, water/sewer/drainage systems, dams, tunnels, etc. But now other special interest groups have been trying to get just about any facility or structure built to fall into the “infrastructure” category, in order to slice into the funding that is being made available for projects.

UCANE continues to work closely with our national group, the Clean Water Construction Coalition (CWCC) to assure that our voice is heard in D.C. and to advocate for a “true infrastructure” bill. Sante Esposito, our CWCC Federal Lobbyist, sent an update of the situation on Capitol Hill, which is included in this month’s magazine (see page 57).

Here in Massachusetts, MassDEP announced its Final 2017 Intended Use Plan (IUP) for the clean water and drinking water SRF programs (see lists on page 15). Over $580 million is being offered in loans this year, an increase of almost $42 million over last year’s total. This should result in an increased number of jobs coming out to bid this year. The MWRA

FEBRUARY, 2017

is moving forward with a $1.7 billion tunnel redundancy project in addition to implementing its capital program, which will be approximately $160 million this year.

State Auditor Suzanne Bump recently released the results of a study her office did assessing the water infrastructure needs of municipalities in Massachusetts (see article on page 29). The results were based on responses from a survey sent to Public Works officials in Massachusetts. Over 140 municipalities responded, and the conclusion was what UCANE has been saying for a long time: there is not enough funding for cities and towns to meet their water infrastructure needs! The report concluded that the funding gap is $17.8 billion over the next 20 years.

The report also calls for an additional $50 million in grants over the next ten years as a way to begin to address the funding gap. While this amount doesn’t fully close the gap, it would provide much needed additional resources for cities and towns and is a proposal that UCANE certainly supports. We look forward to working with the Auditor’s office to help her recommendations become a reality.

So while it is very encouraging that 2017 begins with everyone talking about infrastructure, there is still plenty of work for our Association to do. One thing you can be sure of is that UCANE will be front and center with federal, state, and local officials advocating on behalf of the citizens of Massachusetts and our membership. n

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2017-2018 Legislative Session Begins; UCANE Files Legislation to Fund Water Infrastructure

T

he Massachusetts Legislature began its 190th meeting of the General Court in early January. The legislative session, which lasts from 2017 through 2018, started with the annual filing of matters for consideration by the deadline of January 20. Approximately 5,600 matters were filed for consideration by the Legislature before the deadline for timely filed proposals. UCANE will now review these bills to determine whether the association will support, oppose, or monitor them throughout the legislative session.

UCANE, through its legislative supporters, also filed four bills. In addition to UCANE’s efforts to clarify and improve the “Dig-Safe” law, the association vot-

ed to file legislation addressing the timely payment of police details. As well, UCANE continued its focus on the need to fund water infrastructure throughout the Commonwealth. Proposals to fund water infrastructure projects through a real estate transfer surcharge and a portion of the proposed excise tax on short term rentals as facilitated by groups such as Airbnb and VRBO will be sent to committee for their consideration shortly.

Committee leadership and the assignment of legislative matters to the appropriate committees are expected to occur in early-to-mid February. Committees will then begin the public hearing process required for each of the 5,600 matters filed.

Baker-Polito Administration Files FY18 Budget Proposal; Health Care Changes Proposed

A

t the end of January, the Baker-Polito Administration filed its Fiscal Year 2018 (FY18) budget proposal, a $40.508 billion spending plan, which would fund key Administration priorities including local aid, education, workforce development, housing and homelessness services, and substance misuse prevention programs. According to a press release by the Governor’s Office, the FY18 budget proposal increases spending by 4.3% over Fiscal Year 2017 (FY17) estimated spending, and relies on a consensus tax revenue estimate of $27.072 billion, which is 3.9% growth over the revised FY17 tax revenue projection.

In releasing the FY18 budget proposal, the Baker–Polito Administration highlighted their approach to the use of the Commonwealth’s Stabilization Fund. The proposal would transfer $98 million into

FEBRUARY, 2017

the fund during the next fiscal year. If enacted, the new law would provide for two phases of rainy day fund deposits: first, a budgeted transfer of 50% of the consensus revenue estimate’s projected excess capital gains, and second, a requirement that 50% of above-budget tax revenue at the end of a fiscal year be directed to the Stabilization Fund, prior to year-end closeout and the finalization of consolidated net surplus.

Of particular interest to the business community, the Governor’s proposal creates a $2,000 per employee assessment on employers of 11 or more (full-time equivalent) employees who fail to provide health insurance for their employees.

Massachusetts' health reform law had included a similar assessment (at a lower amount) previously. continued on page 7

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Legislative Update continued from page 5 That assessment was repealed and, subsequently, certain folks make a point that the Commonwealth has seen an increase in the costs incurred

by MassHealth to pay for health care for employees not receiving health care coverage from their employer. The proposed assessment is thought to encourage employers to provide coverage and revenue to offset state costs when employers don't provide coverage.

The Baker Administration estimates that there will be $1.016 billion in expected tax revenue growth, as well as an additional $187 million in taxes via a series of tax modernization proposals. (i.e., collecting sales tax from online retailers who do not have a physical location in Massachusetts but do more than $500,000 in sales in the Bay State annually; forcing large credit card processors to remit funds quicker, etc.), also includes a plan to tax short-term rentals offered through online portals (i.e., Airbnb and VRBO) at the same rate as rooms rented by traditional hotels and motels. Hosts who rent rooms 150 days or more per year would have to begin collecting the room occupancy tax the following year. The new application of the occupancy tax is expected to generate $12 million in fiscal 2018.

With respect to certain line-items of interest to UCANE, the budget proposes the following: • Commonwealth Sewer Rate Relief would be funded at $500,000; a decrease of $500,000 from the previous budget, but greater than the after-effects of the account being emptied through 9C cuts.

• Clean Water Trust Contract Assistance would see a small increase of approximately $600,000 to $57,952,305; however, this remains below the amount of approximately $63 million from previous years.

• The Department of Environmental Protection would see a reduction of about $180,000 under the new proposal, bringing its funding to $24,408,940.

The House and Senate Committees on Ways and Means will conduct joint budget hearings on the Governor’s proposal during the months of February and March. The House will then unveil its budget proposal in April while the Senate releases their own version in May. The two bodies will then assign a conference committee to negotiate differences in the hopes of getting a budget proposal to the Governor for his approval before the start of the new fiscal year in July. continued on page 9

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Governor Files Article 87 Petition to Move Department of Public Safety Boards

t the same time the Baker-Polito Administration released their FY18 budget proposal, they also released an Article 87 filing, An Act Relative to Reorganize the Department of Public Safety. This Article 87 plan will transfer the functions currently within the Massachusetts Department of Public Safety to the Massachusetts Division of Professional Licensure (DPL) and to the Massachusetts Department of Fire Services (DFS). According to the Governor’s Office, this will enable the Commonwealth to consolidate licensing functions currently split across several secretariats, thereby increasing efficiencies, eliminating redundancies, and improving customer service by creating one-stop shopping for the vast majority of license approvals, saving the Commonwealth approximately $800,000 in FY18.

Specifically, this bill establishes a new Office of Public Safety and Inspections to be housed within the DPL, within the Massachusetts Executive Office of Housing and Economic Development. In short, all non-fire-related functions of the Department of Public

Safety will move to the newly created Office of Public Safety and Inspections and the fire-related functions will simply move to the DFS. The legislation also changes the distribution of agencies under the undersecretaries within the Executive Office of Public Safety and Security to more closely align with their areas of expertise.

Under Article 87 of the Massachusetts Constitution, the Governor may file one or more reorganizational plans for the purpose of "transferring, abolishing, consolidating or coordinating the whole or any part of any agency, or the functions, within the executive department." After the Governor files a reorganization plan, the following activities occur: • The plan is referred to the appropriate committee by the Clerks office of the House and Senate with the approval of the President and Speaker.

• The assigned committee must hold a public hearing on the reorganization plan no later than 30 days after the filing. continued on page 11

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Legislative Update continued from page 9 • The committee must report that it approves or disapproves of the plan within 10 days of the hearing.

• The plan has the force of law upon expiration of 60 calendar days following the date it was filed by the Governor, unless it is disapproved by a

majority of the members (present and voting) of either of the two branches of the legislature.

Of note to UCANE, licensing related to hoisting, sprinkler-fitters licensing, the Jackie's Law enforcement (trench laws/regulations) and the state building code will now be transferred into the Office of Public Safety and Inspections under DPL. The legislation has been referred to the Joint Committee on State Administration.

Second Round of Complete Streets Funding Released by MassDOT

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he Massachusetts Department of Transportation recently announced that it had awarded a total of $5.5 million to 15 communities in second round funding for the Complete Streets Funding Program. A “complete street” is one that provides safe and accessible options for all travel modes and for all people, taking into account the ages and abilities of individuals. In September 2016, the Baker-Polito Administration announced the first round of awards from the Complete Streets Program to 11 communities which totaled over $4.4 million.

The Complete Streets funding awards will be used to fund local, multi-modal infrastructure improvement projects, as identified in each municipality’s submitted Complete Streets Prioritization Plan. Examples of projects that can be addressed through the program include improved street lighting, radar speed signage, intersection signalization, new shared bike paths, designated bicycle lanes, ADA/AAB compliant curb ramps, transit signal prioritization, and transit pedestrian connection improvements such as ramps, signage, and new signals at crosswalks.

Complete Streets Program requirements include the attendance by municipalities at an initial program workshop, passage of a Complete Streets Policy that scores 80 or above out of a possible 100 points (Tier 1), and the development of a Complete Streets Prioritization Plan (Tier 2). Upon completion of these re-

quirements, a municipality is eligible for construction funds (Tier 3). Through the program, a municipality is eligible to request up to $50,000 for technical assistance, and up to $400,000 for construction funding with additional consideration in the qualification process for Community Compact communities.

The Complete Streets Funding Program was launched on February 1, 2016. To date, 108 municipalities have approved policies and 27 have approved Prioritization Plans. MassDOT has developed a full Complete Streets Funding Program Guidance document that explains the program requirements, model policy guidance and scoring system, and eligible infrastructure. A two-way interactive online portal has been developed to guide and assist municipalities through the Policy Development, Prioritization Plan, and Project Approval Tiers of the program.

Communities receiving funding this round included Dalton ($400,000); Egremont ($58,933); Everett ($399,950); Hinsdale ($400,000); Lexington ($292,198); Littleton ($394,970); Lynn ($399,000); Natick ($385,584); Newton ($400,000); Northampton ($400,000); Salisbury ($400,000); Somerville ($347,765); Taunton ($400,000); Westford ($399,860); and Weymouth ($386,645).

The available funding for Complete Streets is $12.5 million to be used through Fiscal Years 2016 and 2017. continued on page 13

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Legislative Update continued from page 11

Citing Recent Report, Another Editorial Board Urges Action on Water and Sewer Infrastructure

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he Gloucester Times recently joined the chorus of editorial boards calling for action on funding the Commonwealth’s water infrastructure. Citing two major water line breaks in the City of Salem at the beginning and end of the year, the newspaper highlighted the concern raised by Auditor Suzanne Bump’s recent report on municipalities’ struggles to remain ahead of their aging water infrastructure.

The water main that broke in Salem at the end of the year was more than a century old, carrying water from Wenham Lake into the city since the late 1800s. As noted by the Gloucester Times in its January 24 editorial: “Salem is not alone in confronting major issues with aging water and sewer systems. A report released by state Auditor Suzanne Bump last week estimated that $16 billion will be needed to upgrade water and sewer systems in Massachusetts over the next two decades. That translates into huge costs for cities and towns — costs that simply cannot be absorbed by ratepayers or local taxpayers alone. Haverhill, for example, estimates it needs to spend $145 million on its water and sewer systems in the coming years. Beverly’s estimate: $50 million for water system upgrades and another $80 million for the sewer system.

Methuen will need $13 million, and Topsfield $60 million.”

The editorial continued to note that while the Clean Water Trust provides loans through its administration of the federal Drinking and Clean Water Statewide Revolving Fund programs, it will not be enough given certain mandates that are attached to the SRF program. In addition to the other costs, the Auditor’s report noted that cities and towns in Massachusetts will need to spend $1.5 billion to meet new stormwater regulations established by the federal government.

The Auditor’s recent report was based on the responses to a survey conducted by Bump’s office of cities and towns in Massachusetts on their local water system investments and funding sources. A total of 146 cities and towns responded to the survey, representing 42 percent of the state’s municipalities. Respondents include 88 percent

of all cities and towns with populations greater than 50,000.

To bolster state-municipal collaboration, the study recommends convening a statewide summit to educate localities about the infrastructure challenges presented by climate change, and steps needed to protect their water systems. The report also recommends establishing a program to provide an annual $50 million in additional state water infrastructure grants for the next decade. n

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MassDEP Releases FINAL CY2017 Clean Water & Drinking Water SRF Lists Totaling Over $580 Million Charles D. Baker Governor Karyn E. Polito Lieutenant Governor

T

Over $454.9 Million Offered for Clean Water SRF in 2017

Matthew A. Beaton Secretary Martin Suuberg Commissioner

he Massachusetts Department of Environmen-

proximately $450 million to finance clean water projects across the Commonwealth. Approximately $360 ent the 2017 Intended Use Plan (IUP), which million will fund 26 new construction projects, and an details the projects, borrowers and amounts that will additional $64 million will be allocated towards funding To All Interested Parties: be financed through the Clean Water State Revolv6 previously approved multi-year projects. $2 million ing Fund (CWSRF) loan program. The CWSRF is a has been allocated to the emergency set-aside acThe Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the joint federal-state financing loan program that provides count, and $5 million will be directed to the Community Final 2016 Intended Use Plan (IUP), which details the projects, borrowers and amounts that will be state-subsidized interest rate loans to improve or proSeptic Management Program to remediate failed sepfinanced through the Clean Water State Revolving Fund (CWSRF) loan program. The CWSRF is a tect water quality in the Commonwealth. tic systems in participating communities. An additional joint federal-state financing loan program that provides subsidized interest rate loans to improve or $23 million will fund 18 planning projects.

As noted in Table 1, Massachusetts is offering aptal Protection January 26, 2016 (MassDEP) is pleased to pres-

protect water quality in the Commonwealth.

Table As noted in Table 1, Massachusetts is offeringTABLE approximately 1 1 $414 million to finance clean water projects across the Commonwealth.

Approximately $380 will fund 35 new construction CLEAN WATER STATE REVOLVING FUND Clean Water State Revolving Fundmillion CY2017 Intended Use Plan Calendar CWSRF towards Intendedfunding Use Plan9 previously approved projects and an additional $15 millionYear will2017 be allocated multi-year projects. $2 million has been allocated the emergency set-aside account, and $3 NEWtoPROJECTS NEW PROJECTS million will be directed to the Community Septic Management Program to remediate failed septic

2017 Rating systems Applicantin participating communities.

SRF ID Project Cost Cost An additional $13.8 million will fund 15 Project planning projects.2017 Rating Applicant SRF ID Project Project Cost IUPIUP Cost 128 The TAUNTON Water(PF) Resources

2018 Sewer and Drain Improvements $4,000,000 Reform4147 and Development Act of 2014 (WRRDA) amended the Clean Water $4,000,000 resulting in important changes to the and CWSRF Program that will affect most borrowers.

127 Act MARION 4166 WWTP Collection System Improvements $35,000,000The $35,000,000 primary changes to the program are the requirements for borrowers to develop and maintain a Fiscal 119 WORCESTER (PF) 4165 Route 20 Sewer Extension Project $22,000,000 $22,000,000 Sustainability Plan, which is similar to an asset management plan and a certification that the cost and 118 effectiveness TAUNTON (PF) of the project has 4169 Main Lift Pump and Station Improvements $17,000,000 been evaluated that the project maximizes water efficiency and$17,000,000 energy conservation.

The body of the IUP discusses these new WRRDA requirements in greater $21,000,000 116 NEW BEDFORD (PF) 4143 Pumping Station Improvements $21,000,000 detail.

107 GRAFTON

4162 Pumping Station Improvements

$2,780,000

$2,780,000

United States 107 The REVERE (PF)#

Environmental Agency (EPA) has not yet determined $4,700,000 the exact 2016 $4,700,000 4149 Protection Phase VIII - I/I, IDDE, P.S., & Drainage SRF grant allocations to the states.

Based on the overall federal appropriation, MassDEP expects to$2,000,000 107 REVERE (PF) 4148 Illicit Connection & Sump Pump Removal Program $2,000,000 receive an estimated $44 million federal grant to subsidize the CWSRF program. Under the Fiscal 105 Year NANTUCKET 4145 Phase Surfside WWTF Improvements 2016 Omnibus Appropriations Bill,2 Congress is requiring that at least 10% of $2,000,000 the federal grant$2,000,000 be used to fund “green infrastructure”.

The 2016 Final IUP lists 16 new “green infrastructure” 104 HAVERHILL (PF) 4156 Haverhill WWTF Improvements $35,060,000 $35,060,000 construction projects. The exact monetary value of the green portion of these projects will be 100 LOWELL REGIONAL 4158 Pevey Storage Facility $5,350,000 $5,350,000 determined when project WASTEWATER UTILITY (PF) applications are submitted but are expected to be well in excess of 10% of the federal grant.

99 FRAMINGHAM (PF)

4151 Worcester Road Pumping Station Elimination Project

$21,930,000

$21,930,000

97 NANTUCKET

4161 Madaket, Warrens Landing, Somerset Sewer

$71,000,000

$48,684,000

95 NORWOOD (PF)

4164 Underdrain Area Sewer Paper Rehabilitation Printed on Recycled

$2,700,000

$2,700,000

91 NEW BEDFORD (PF)

4168 Wastewater Collection System Improvements

$41,300,000

$30,000,000

85 WAREHAM (PF)

4163 WPCF Improvements - New Primary Clarifiers

$13,000,000

$13,000,000

This information is available in alternate format. Call Michelle Waters-Ekanem, Diversity Director, at 617-292-5751. TTY# MassRelay Service 1-800-439-2370 Extension MassDEP Website: www.mass.gov/dep

81 EASTON

4155 Easton Five Corners Sewer

continued on$8,585,000 page 17 $8,585,000

72 BILLERICA (PF)

4159 WWTF andPump Station Upgrades

$6,900,000

$6,900,000

$10,774,700

$10,774,700

$9,738,000

$9,738,000

69 TYNGSBOROUGH

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100 LOWELL REGIONAL WASTEWATER UTILITY (PF)

4158 Pevey Storage Facility

$5,350,000

$5,350,000

99 FRAMINGHAM (PF)

4151 Worcester Road Pumping Station Elimination Project

$21,930,000

$21,930,000

97 NANTUCKET

4161 Madaket, Warrens Landing, Somerset Sewer Extension

$71,000,000

$48,684,000

95 NORWOOD (PF)

4164 Underdrain Area Sewer Rehabilitation

$2,700,000

$2,700,000

DEP/SRF continued from page 15

NEW PROJECTS (cont.)

91 NEW BEDFORD (PF) 4168 Wastewater Collection System Improvements $41,300,000

$30,000,000 2017

Rating Applicant SRF

85 WAREHAM (PF) 4163 ID Project WPCF Improvements - New Primary Clarifiers

IUP Cost $13,000,000

Project Cost $13,000,000

81 EASTON

4155 Easton Five Corners Sewer

$8,585,000

$8,585,000

72 BILLERICA (PF)

4159 WWTF andPump Station Upgrades

$6,900,000

$6,900,000

69 TYNGSBOROUGH

4160 Phase 2 Middlesex Road North

$10,774,700

$10,774,700

64 ACTON

4154 West Acton Center Sewer Extension Project

$9,738,000

$9,738,000

61 WEST SPRINGFIELD (PF)#

4167 Pump Station Improv. And I/I Reduction Project

$8,296,500

$8,296,500

59 BILLERICA (PF)

4157 Sewer Contract 36

$13,573,000

$13,573,000

56 QUINCY (PF)

4146 Phase IV Infrastructure Improvements

$3,000,000

$3,000,000

55 GLOUCESTER (PF)

4144 Rehab. of DPW & Goose Cove Sewer Pumping Stations

$4,550,000

$4,550,000

53 GARDNER (PF)

4152 Gardner - Sludge Dewatering Replacement Project

$7,838,100

$7,838,100

52 MWRA

4150 DITP Asset Protection Phase 3

$61,600,000

$20,000,000

$435,675,300

$360,459,300

TOTAL OF NEW PROJECTS

TOTAL OF NEW PROJECTS (Average Rating: 89.5) (Count: 26) (Average Rating: 89.5)

$435,675,300

$360,459,300

(Count: 26)

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

continued on page 19

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DEP/SRF continued from page 17 MULTI-YEAR MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSCARRYOVER

AND STATUTORY PROJECTS

MULTI-YEAR CARRYOVER AND STATUTORY Applicant SRFPROJECTS ID Project

Applicant Applicant MWRA MWRA MWRA

SRF ID

Project

SRF ID Project 4117 Facility Asset Protection

4117 Facility Asset Protection 3982 Clinton WWTP Phosphorous Removal

MWRA 3982 Clinton WWTP Phosphorous Removal MWRA 3981 Remote Headworks Upgrade MWRA 3981 Remote Headworks Upgrade MWRA 3921 Chelsea Screenhouse Upgrades MWRA 3921 Chelsea Screenhouse Upgrades MWRA 2885 Wastewater Treatment Plant and Sewer Improvements MWRA 2885 Wastewater Treatment Plant and Sewer Improvements NANTUCKET 4096 Shimmo & PLUS Parcels Sewer Extension NANTUCKET 4096 Shimmo & PLUS Parcels Sewer Extension TOTAL OFTOTAL MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: 6) (Count: 6) (Count: 6)

MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS Applicant Applicant Applicant COMMUNITY SEPTIC COMMUNITY SEPTIC MANAGEMENT PROGRAM MANAGEMENT PROGRAM EMERGENCY SRF EMERGENCY SRF SET-ASET-ASIDE SIDE

Project Cost $25,526,969

IUP Cost 2017 2017 IUP Cost 2017 IUP Cost $3,000,000

$25,526,969 $7,091,932

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

$7,091,932 $160,760,000 $160,760,000 $4,885,180 $4,885,180 $56,224,235 $56,224,235 $26,316,000 $26,316,000 $280,804,316 $280,804,316 $280,804,316

$3,000,000 $36,000,000 $36,000,000 $2,000,000 $2,000,000 $6,000,000 $6,000,000 $14,316,000 $14,316,000 $64,316,000 $64,316,000 $64,316,000

Project Cost Project Cost Project Cost

IUP Cost 2017 2017 IUP Cost IUP Cost 2017

MassDEP PRIORITY PROJECTS ID Project SRF SRF ID ID Project

3850 Community Septic Management Program 3850 Community Septic Management Program

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

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

2977 2977

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

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

TOTAL MassDEP PRIORITY PROJECTS TOTAL OF OFTOTAL MassDEP PRIORITY PRIORITY PROJECTSPROJECTS OF MassDEP (Count: 2)

Project Cost Project Cost

(Count: 2)

$7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 continued on page 21

PLANNING PROJECTS Applicant

SRF ID Project

ACUSHNET ACUSHNET

4178 4178 Comprehensive Comprehensive Wastewater Wastewater Management Management Plan Plan

BROCKTON BROCKTON

Project Cost

2017 IUP Cost

$375,000 $375,000

$375,000 $375,000

4187 4187 2017 2017 Sewer Sewer System System Evaluation Evaluation Survey Survey Program Program

$4,000,000 $4,000,000

$4,000,000 $4,000,000

FALL FALL RIVER RIVER

4171 4171 CSO CSO Facilities Facilities Plan Plan

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

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

FALL RIVER FALL RIVER

4217 Wastewater Treatment Facilities Plan 4217 Wastewater Treatment Facilities Plan

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

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

GLOUCESTER GLOUCESTER

4181 Utility Master Plan 4181 Utility Master Plan

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

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

HADLEY HADLEY HOPKINTON HOPKINTON MARION MARION NANTUCKET NANTUCKET NEW BEDFORD NEW BEDFORD NEW BEDFORD NEW BEDFORD NEW BEDFORD NEW BEDFORD PLAINVILLE

4180 4180 4175 4175 4172 4172 4179 4179 4170 4170 4182 4182 4173 4173 4177

$390,000 $390,000 $250,000 $250,000 $400,000 $400,000 $500,000 $500,000 $6,000,000 $6,000,000 $2,500,000 $2,500,000 $500,000 $500,000 $190,000

$390,000 $390,000 $250,000 $250,000 $400,000 $400,000 $500,000 $500,000 $6,000,000 $6,000,000 $2,500,000 $2,500,000 $500,000 $500,000 $190,000

PLAINVILLE REVERE

4177 Sewer System Infiltration/Inflow Program 4176 Illicit Connection and Sump Pump Investigations

$190,000 $600,000

$190,000 $600,000

REVERE

4176 Illicit Connection and Sump Pump Investigations

$600,000

$600,000

FEBRUARY, 2017

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MANAGEMENT PROGRAM EMERGENCY SRF SET-ASIDE

2977

$2,000,000 $7,000,000

TOTAL OF MassDEP PRIORITY PROJECTS

DEP/SRF continued from page 19

$2,000,000 $7,000,000

(Count: 2)

PLANNING PROJECTS

PLANNING PROJECTS

Applicant Applicant

SRF ID

Project

SRF ID Project

ACUSHNET

4178 Comprehensive Wastewater Management Plan

BROCKTON

Project Cost

Project Cost

2017 IUP Cost 2017 IUP Cost

$375,000

$375,000

4187 2017 Sewer System Evaluation Survey Program

$4,000,000

$4,000,000

FALL RIVER

4171 CSO Facilities Plan

$1,000,000

$1,000,000

FALL RIVER

4217 Wastewater Treatment Facilities Plan

$2,000,000

$2,000,000

GLOUCESTER

4181 Utility Master Plan

$1,200,000

$1,200,000

HADLEY

4180 Hadley NPDES Phase II MS4 Planning SRF

$390,000

$390,000

HOPKINTON

4175 Town of Hopkinton - Update to CWMP

$250,000

$250,000

MARION

4172 MS4 Permit Compliance and Reporting

$400,000

$400,000

NANTUCKET

4179 I/I amd Flow Metering Study

$500,000

$500,000

NEW BEDFORD

4170 WW Collection System Investigations Program

$6,000,000

$6,000,000

NEW BEDFORD

4182 Wastewater Treatment Plant Facilities Plan

$2,500,000

$2,500,000

NEW BEDFORD

4173 MS4 Permit Compliance and Reporting

$500,000

$500,000

PLAINVILLE

4177 Sewer System Infiltration/Inflow Program

$190,000

$190,000

REVERE

4176 Illicit Connection and Sump Pump Investigations

$600,000

$600,000

REVERE

4183 Phase IX Field Investigations - I/I and IDDE

$1,200,000

$1,200,000

SPENCER

4220 I/I and Sewer System Evaluation Study

$246,000

$246,000

SPENCER

4219 Comprehensive Wastemanagement Plan

$179,000

$179,000

TAUNTON

4174 Comprehensive Water Resources Planning

$1,600,000

$1,600,000

$23,130,000

$23,130,000

$23,130,000

$23,130,000

TOTAL OF PLANNING PROJECTS (Count: 18) TOTAL

OF PLANNING PROJECTS

(Count: 18)

TOTAL OF DRAFT INTENDED USE PLAN TOTAL OF INTENDED USE PLAN

$746,609,616

$746,609,616

$454,905,300 $454,905,300

continued on page 23

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DEP/SRF continued from page 21

Over $95 Million Offered for Drinking Water SRF in 2017

T

he Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the Final 2017 Intended Use Plan (IUP), which lists the 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 state-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 $125 million to finance drinking water projects across the Commonwealth. Approximately $95 million will fund 16 new construction projects and an additional $27 million will be allocated towards funding 3 previously approved multi-year projects. $500,000 is allocated toward one Planning Project. An additional $2 million will fund an emergency set-aside account.

Table 1 Drinking Water TABLE State1 Revolving Fund CY2017 Intended Use Plan DRINKING WATER STATE REVOLVING FUND Calendar Year 2017 DWSRF Intended Use Plan

NEW PROJECTS

NEW PROJECTS

Rating Applicant SRF ID Project Project Cost Rating Applicant SRF ID Project

Project Cost 530.0

NEW BEDFORD (PF)

530.0

WEBSTER (PF)

TABLE 1 Line Replacement Program - Phase I 4213 Lead Service DRINKING WATER STATE REVOLVING FUND Calendar4212 Year 2017 DWSRF Intended Plan Memorial Beach Wells Use Water Treatment Plant

NEW PROJECTS 524.0 WAREHAM (PF)(RE)

4215 Maple Springs Water Purification Plant

Rating Applicant

520.0

SRF ID Project

REVERE WATER DEPT (PF)

Project Cost

4202 Lead Service Replacement

2017 IUP Cost

2017 IUP Cost

$10,200,000

$5,100,000

$10,000,000

$10,000,000

$18,909,204

$14,000,000

2017 IUP Cost

$4,250,000

$4,250,000

530.0

NEW BEDFORD (PF)

4213 Lead Service Line Replacement Program - Phase I

$10,200,000

$5,100,000

530.0

WEBSTER (PF)

4212 Memorial Beach Wells Water Treatment Plant

$10,000,000

$10,000,000

$17,285,000

$5,000,000

$18,909,204

$1,158,000 $14,000,000

$1,158,000

518.0 * EASTHAM (PF)

4209 Phase 2 of Town-Wide Water System

510.0 WATER COMPANY4215 524.0 MILFORD WAREHAM (PF)(RE) (PF) 520.0

440.0

REVERE WATER DEPT (PF)

4214 High Hill Reservoir Rehabilitation

4209 Phase 2 of Town-Wide Water System

440.0 BROCKTON (PF) 510.0 MILFORD WATER COMPANY 440.0

Project

4202 Lead Service Replacement

NEW BEDFORD (PF)

518.0 * EASTHAM (PF)

415.0

4201Springs LeadWater Services Replacement Maple Purification Plant

$4,250,000

$4,250,000

$17,285,000

$5,000,000

4216 Transmission Main and Valve Replacement Project $1,158,000

4201 Lead Services Replacement Project

(PF)

BILLERICA (PF)

4196 Water Treatment Plant Upgrades

NEW BEDFORD (PF)

4214 High Hill Reservoir Rehabilitation

315.0 440.0 BRIDGEWATER BROCKTON (PF) (PF)

4200 NewMain High Water Treatment 4216 Transmission andStreet Valve Replacement Project

415.0 LAWRENCE BILLERICA (PF)(PF)# 239.0

4196 Water Upgrades 4204Treatment Water Plant Infrastructure

$22,350,000

Facility$1,500,000

$22,350,000

$5,000,000

$1,500,000

$1,500,000

$9,086,750

$9,086,750

$6,250,000 $1,500,000

$6,250,000 $5,198,000

$1,158,000

$5,000,000

$9,086,750

$9,086,750 $5,198,000

BRIDGEWATER (PF)

4200 New High Street Water Treatment Facility

$6,250,000

$6,250,000

LAWRENCE (PF)#

4204 Water Infrastructure Improvements

$5,198,000

$5,198,000

NEW BEDFORD (PF)

4191 Large Meter & AMI Upgrade Program

$6,400,000

$2,600,000

234.0 RIVER (PF)# 235.0 FALL FALL RIVER (PF)

4211Main AMR and Meter Replacement 4203 Water Rehabilitation - Phase 17

234.0 WEST FALL RIVER (PF)# 230.0 SPRINGFIELD (PF)

4211 AMR and Drinking Meter Replacement 4206 Water System

315.0

239.0

NEW BEDFORD (PF)

235.0

FALL RIVER (PF)

239.0 239.0

230.0

230.0

230.0

Improvements

4191 Large Meter & AMI Upgrade Program

$6,400,000

$2,600,000

$4,240,000

$4,240,000

$4,240,000

$3,500,000 $4,240,000

$3,500,000

$3,500,000 Improvements Project

$3,500,000 $7,513,000

$7,513,000

4203 Water Main Rehabilitation - Phase 17

WEST SPRINGFIELD (PF)

4206 Drinking Water System Improvements Project

LAWRENCE (PF)

4205 Distribution System Improvements

LAWRENCE (PF)

4205 Distribution System Improvements

TOTAL OF NEW PROJECTS

TOTAL OFNEW NEW PROJECTS TOTAL OF PROJECTS (Count: 16) (Average Rating: 384.31) (Count: 16) 16) (Average Rating: 384.31) (Count: (Average Rating: 384.31)

$7,513,000

$7,513,000

$26,676,000

$10,802,000

$154,515,954

$95,197,750

$26,676,000

$154,515,954 $154,515,954

$10,802,000 $95,197,750 $95,197,750

* - SmallSystem System * - Small

(PF) - Affordability Criteria

(PF) - Affordability Criteria

(RE) - Potential Renewable Energy Projects

continued on page 25

(RE) - Potential Renewable Energy Projects

FEBRUARY, 2017

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DEP/SRF continued from page 23 MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS MassDEP PRIORITY PROJECTS Applicant SRF ID Project Project Cost MassDEP PRIORITY PROJECTS Applicant SRF Project Cost Applicant SRFIDID ProjectProject

Project Cost EMERGENCY SRF SET-A2978 $2,000,000 Applicant SRF ID Project Project Cost SIDE EMERGENCY SRF SET-A2978 $2,000,000 EMERGENCY SRF SET-A2978 $2,000,000 SIDE TOTAL OFSIDE MassDEP PRIORITY PROJECTS $2,000,000 OF MassDEP $2,000,000 TOTAL OFTOTAL MassDEP PRIORITY PRIORITY PROJECTSPROJECTS $2,000,000 TOTAL OF MassDEP PRIORITY PROJECTS $2,000,000 (Count: 1) (Count: 1) (Count: 1) (Count: 1) MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY STATUTORY PROJECTS MULTI-YEAR Applicant SRFPROJECTS ID Project Project Cost Applicant SRFIDID ProjectProject

Project Cost Applicant SRF Project Cost EASTHAM 4121 Phase 2 Town-Wide Water System $17,114,000 EASTHAM 4121 $17,114,000 EASTHAM 4121 Phase Phase 2 2 Town-Wide Town-Wide Water Water System System $17,114,000 MWRA (RE)# 3972 Wachusett Aqueduct PS $47,011,000 MWRA (RE)# 3972 Wachusett Aqueduct PS $47,011,000 MWRA (RE)# 3972 Wachusett Aqueduct PS $47,011,000 NEW BEDFORD BEDFORD (PF) (PF) 4064 Quittacas Quittacas WTP WTP Rehabilitation Rehabilitation $19,295,000 NEW 4064 $19,295,000 NEW BEDFORD (PF) 4064 Quittacas WTP Rehabilitation $19,295,000 TOTAL OF OFTOTAL MULTI-YEAR CARRYOVER AND STATUTORY STATUTORY PROJECTS $83,420,000 TOTAL MULTI-YEAR CARRYOVER AND PROJECTS $83,420,000 OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $83,420,000 TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $83,420,000 (Count: 3) (Count: 3) (Count: 3) PLANNING PLANNING PROJECTS PLANNING PROJECTS PROJECTS PLANNINGApplicant PROJECTS SRF ID Project Project Cost Applicant SRF Project Cost Applicant SRFIDID ProjectProject

Project Cost Applicant SRF ID Project Project$500,000 Cost BROCKTON 4186 2017 Transmission Main Assessment BROCKTON 4186 2017 Transmission Main Assessment $500,000 TOTAL OFBROCKTON PLANNING PROJECTS 4186 2017 Transmission Main Assessment $500,000 OF PLANNING PROJECTS

$500,000 TOTAL OFTOTAL PLANNING PROJECTS $500,000 (Count: 1) TOTAL OF(Count: PLANNING PROJECTS $500,000 1) (Count: 1) (Count: 1) TOTAL OF DRAFT INTENDED USE PLAN $240,435,954 TOTAL OF INTENDED USE PLAN

$240,435,954

TOTAL OF INTENDED USE PLAN TOTAL OF INTENDED USE PLAN

$240,435,954 $240,435,954

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2017 IUP Cost

IUP Cost 2017 2017 IUP Cost $2,000,000 IUP Cost 2017 $2,000,000

$2,000,000

$2,000,000

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

$2,000,000

2017 IUP Cost

2017 IUP Cost IUP Cost 2017 $13,114,000

$13,114,000 $13,114,000

$11,000,000 $11,000,000 $3,295,000 $3,295,000 $3,295,000 $27,409,000 $27,409,000 $27,409,000 $27,409,000 $11,000,000

2017 IUP Cost IUP Cost 2017 IUP Cost 2017

IUP Cost 2017 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000

$125,106,750 $125,106,750

$125,106,750 $125,106,750

United Concrete Products, Inc.

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Offering a full range of products: Manholes, Catch Basins, Septic Tanks, Leaching Chambers, Dry Wells, Distribution Boxes, Pump Chambers, Grease Traps, PreTreatment Tanks, Utility Vaults, Meter Pits, Yard Drains, Box Culverts, End-Walls, Wing Walls, Curbs, Water Quality Structures, Prefab. Pump Stations, Storage Buildings, Dugouts, Concrete Barriers, Cable Concrete, Retaining Walls, Restroom Buildings, Telecommunication Shelters, Prestress Bridges, National Grid, Traffic Control Structures and many more.

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26

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

FEBRUARY, 2017

EPA Launches New Program With $1 Billion in Loans Available for Water Infrastructure Projects

T

he U.S. Environmental Protection Agency (EPA) • desalination, aquifer recharge, alternative waannounced the availability of approximately $1 ter supply, and water recycling projects billion in credit assistance for water infrastructure • drought prevention, reduction, or mitigation projects under the new Water Infrastructure Finance projects and Innovation Act (WIFIA) program.

EPA will evaluate projects using criteria such EPA’s WIFIA program will provide long-term, lowas the extent to which the project is nationally or recost credit assistance in the form of direct loans and gionally significant, helps maintain or protect public loan guarantees to creditworthy water projects. WIFIA health or the environment, protects against extreme provides another option for financing large infrastrucweather, and serves regions with significant water ture projects – generally at least $20 million – in addition resource challenges. EPA will make selections on a to the State Revolving Funds and bond market. WIFIA competitive basis. is available to state, local, and tribal governments; priEPA estimates that the U.S. needs about $660 vate entities; partnerships; and State Revolving Fund billion in investments for drinking water, wastewater, programs. EPA estimates that funds appropriated to and stormwater infrastructure over the next 20 years. the WIFIA program can be leveraged at a ratio greater For more information, visit www.epa.gov/wifia n than 50 to one, which means the $17 million program budget could allow EPA to make approximately $1 billion in loans and stimulate about $2 billion in total infrastructure investment.

Water Works Specialist “The launch of the Water InfraJohn Hoadl Water Works Specialist Tel:781-878-8098 Fax:781-878-5298 structure Finance and Innovation Water Works Spe Act program marks a huge step forTel:781-878-8098 Tel: 781-878-8098 Fax: 781-878-5298 ward for modernizing our nation’s “Our the Most Trusted NamesNames in theinIndustry” “OurIndustry” Products Are the Most Trusted N aging water infrastructure,” saidProducts “OurAre Products Are the Most Trusted the � U.S. Pipe ● Cultec EPA Administrator Gina McCarthy. � U.S. Pipe ● Cultec Chambers � Mueller Fire Hydrants ● Nation • U.S. Pipe • Cultec Chambers “WIFIA gives us a new opportuMueller Tapping Sleeves & Valves ● ADS P � Mueller Fire Pipe & Plastics • Hydrants Mueller Fire Hydrants ● National • National Pipe�� &Smith Plastics Blair Clamps & Couplings ● Genera nity to provide billions of dollars in � Mueller Tapping Sleeves & Valves ● Valves ADS Pipe Chambers • Mueller Tapping Sleeves & • &ADS Pipe & Chambers Mechanical Services low-interest loans to communities � Tapping Sleeves & Gates Installed • Clamps Smith & Blair Clamps & Couplings • General Foundry Castings � Smith Blair Couplings ● General Foundry Castings to build large infrastructure proj� Line Stop / EZ Valves Mechanical Services � Cutting of Chilled Water Lines & ects, significantly accelerating inMechanical Services � Pressure Testing & Disinfection o � Tapping Sleeves & Gates Installed / Cut vestments that benefit our nation’s � Installation & Testing of Backflow • Tapping Sleeves & Gates Installed / Cut public health and water security for � Large Diameter Hydraulic Pipe C � Line Stop / EZ Valves • Line Stop / EZ Valves � Hydrant Installation & Repair generations to come.” � Cutting ChilledWater WaterLines Lines&&Steam SteamLines Lines � Electronic Leak Detection • Cutting of of Chilled Some of the projects that WI“Water-Sewer-Drain Supplies at a Com • Pressure Testing &&Disinfection � Pressure Testing DisinfectionofofNew NewMains Mains www.hoadleyandsons.com FIA enables EPA to provide assis• Installation && Testing ofof Backflow � Installation Testing BackflowPreventers Preventers 24 24Hours Hours672 Union Street Rockland, MA tance for include: • Large Diameter Hydraulic Pipe Cutting Sales& Service Sales & Service � Large Diameter Hydraulic Pipe Cutting • drinking water treatment • Hydrant Installation & Repair Serving ofof Servingallall � Hydrant Leak Installation & Repair New and distribution projects • Electronic Detection NewEngland England � Electronic Leak Detection • wastewater conveyance and Supplies at Supplies a Competitive Price” Price” “Water-Sewer-Drain at a Competitive treatment projects “Water-Sewer-Drain www.hoadleyandsons.com • enhanced energy efficiency www.hoadleyandsons.com projects at drinking water 672 Union Street MA Rockland, 672 Union Street Rockland, 02370MA 02370 and wastewater facilities

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OFFICE OF THE

STATE AUDITOR Suzanne M. Bump FOR IMMEDIATE RELEASE: January 17, 2017

CONTACT: Mike Wessler 617-727-2075

Auditor Bump Holistic Approach to Auditor Bump Calls forCalls Holisticfor Approach to Meeting Municipal Water Infrastructure Needs Meeting Municipal Water Infrastructure Needs Report shows Municipalities Face $17.8B in Water System Spending Needs

Report shows Municipalities Face $17.8B in Water System Spending Needs BOSTON, MA — Auditor Suzanne M. Bump today called on state and local leaders to OSTON, MA — Auditor Suzanne M. Bump change, and steps needed to protect their water collaborate on a holistic approach to meeting the Commonwealth’s water infrastructure today called on state and local leaders to colsystems. The report reveals that only six percent needs.

Bump made the announcement as her office’s Division ofreport Local having Mandates (DLM) laborate on a holistic approach to meeting the of municipalities water infrastrucreleased a study oninfrastructure the status ofneeds. municipal systems the Commonwealth, which Commonwealth’s water Bumpwater ture climateinchange plans or policies in place. made the announcement as her office’s Division of It also highlights the need for greater found that communities report total unmet water system spending needs of at least regional Local Mandates (DLM) released a study on the collaboration among municipalities sharing a $17.8 billion over the next twenty years.

B

status of municipal water systems in the Commoncommon watershed; only 36 percent of survey wealth, which found that communities report total respondents report being members of a regional “Thiswater studysystem showsspending that localneeds governments are struggling to meet their critical water planning unmet of at least collaborative on water infrastructure $17.8 billion over the next twenty years.

The study also calls for an aninfrastructure needs.

It’s a challenge that’s likelyand to management. increase as the impacts of climate nual $50 million in additional state water infra“This study shows that local place governments change, and economic growth additional strains on existing infrastructure,” Bump structure grants for the next decade.

In addition, aresaid. struggling theirthat critical water “This istoa meet problem will not beinfrasolved with state dollarsfor alone.

To successfully Bump is calling the Department of Environstructure needs. It’s a challenge that’s likely to address this challenge, we need action from state and federal leaders to promote a mental Protection (DEP) to assume responsibilincrease as the impacts of climate change, and holisticgrowth approach toadditional municipalstrains wateroninfrastructure needs, bothfor the issuance ity from the which federalincludes government economic place existof MS4 storm water permits in order to better and Bump funding changes.” ingregulatory infrastructure,” said.

“This is a problem align expectations and oversight for municipalithat will not be solved with state dollars alone. To ties as DEP already issues permits for drinkingsuccessfully this on challenge, we needtoacThe studyaddress was based the responses a survey conducted bysystems.

Bump’sMassachusetts office of cities is only and wastewater tion from state and federal leaders to promote a and towns in Massachusetts oninfrastructure their local waterone system investments and of four states where thefunding federal government holistic approach to municipal water issues these permits directly. sources.

A total of 146 cities and towns responded to the survey, representing 42 needs, which includes both regulatory and fundingpercent changes.” of the state’s municipalities. Respondents include 88 percent all opportunity cities and to lead “Massachusetts hasofan the nation in tackling this problem head on,” The study was based on the responses to a towns with populations greater than 50,000.

Bump said. “It is my hope that this report will survey conducted by Bump’s office of cities and spur increased collaboration at all levels of govtowns in Massachusetts on their local water sysTo bolster state-municipal collaboration, the study recommends Governor Baker ernments to develop innovative solutions to this tem investments and funding sources. A total of convene a statewide summit to educate localities about the infrastructure challenges challenge.”

146 cities and towns responded to the survey, reppresented by climate change, steps needed to The protect their systems. resenting 42 percent of the state’s and municipalities. report waswater produced by theThe Division of LoRespondents include 88 percent of all cities and cal Mandates (DLM) water in Bump’s office. In addition report reveals that only six percent of municipalities report having infrastructure towns with populations greater than 50,000. responding requests from local governments climate change plans or policies in place. It also to highlights thetoneed for greater regional about potential unfunded mandates, DLM also proTo bolster state-municipal collaboration, the collaboration among municipalities sharing a common watershed; only 36 percent of duces Municipal Impact Studies, such as this one, study recommends Governor Baker convene a survey respondents report being members of a that regional collaborative on water examine aspects of state law that have signifistatewide summit to educate localities about the infrastructure planning and management.

The study also calls for an annual $50 million cant fiscal impacts on municipalities. n infrastructure challenges presented by climate

in additional state water infrastructure grants for the next decade. In addition, Bump is calling for the Department of Environmental Protection (DEP) to assume responsibility from the federal government for the issuance of MS4 storm water permits in order to FEBRUARY, 2017 expectations “BUYand FROM THE ADVERTISERS IN CONSTRUCTION better align oversight for municipalities as DEP alreadyOUTLOOK” issues permits for drinking- and wastewater systems. Massachusetts is only one of four states where

29

The Online Destination for the Horizontal Construction Industry

ConConn Connects the Horizontal Construction Industry.

One Marketplace, Four Services 1. Trucking Services: List, search, and book dump and specialty trucks.

2. Online Stores: Find suppliers near your job, submit RFQs, receive quotes, and purchase, online.

3. Haves & Wants: Create a listing or search 100s of industry listings.

4. Doing95™: Search for backhauls or list what you need hauled.

30

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

FEBRUARY, 2017

Tech Meets The Dirt Biz...Finally Founders Paul Bergantino, Jennifer Bergantino, and Tom Medrek are from the world of high-tech.

Chuck Mabardy, President and Founder of C.J. Mabardy in Cambridge, MA, is from the world of dump trucks, dirt, demolition, and big yellow iron, and like all successful entrepreneurs is continuously envisioning innovative solutions to big industry problems.

Combine these two worlds and you get ConConn, an online marketplace that is a single destination for everything related to horizontal construction.

It’s All About Moving Earth!

Horizontal construction is any construction that touches the earth. It includes excavation, roads, bridges, utilities, site preparation, landscaping, snow removal and much more. Annually, it’s a $215 billion market that wastes 30% per year due to inefficiencies. Astoundingly, this is almost $180 million per day! With Chuck’s guidance and expertise, the ConConn team sought to eliminate these inefficiencies by applying technology that has already revolutionized industries such as airline travel, vacation rentals, hotels, and taxis. These industry disruptions are the result of electronically connecting buyers and sellers, creating more efficient and costeffective transactions, and allowing the discovery of the best available deals. The entrepreneurs asked themselves – why not horizontal construction? continued on page 32

FEBRUARY, 2017

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

31

ConConn continued from page 31

A Single Online Destination

Trucks on Demand At the heart of every horizontal construction project are dump truck services. Because of the nature of the work - that being “mother nature,” trucks are often scheduled on a day-to-day basis. A Project Manager or a Supervisor can use ConConn to search and book new trucks, request the same trucks to return the next day, and communicate to some or all trucks on the job that work is suspended for the time being or tell everyone that the job is complete. Contractors can communicate changes to the route and/or payload quickly and efficiently to everyone on the job. Any changes and all transactions are tracked so that trucker’s invoicing and contractors’ accounts payable are working off the same job log.

For the trucker - an owner operator, trucking company, or a broker - ConConn is a marketing platform, a place to communicate capability and

ConConn is not a single application, but a combination of “apps” that form a single marketplace where everything related to horizontal construction can be found. From the seller’s point of view, ConConn is a sales and marketing tool, complete with the ability to create a website and interactive product and service “listings.” From the purchaser’s point of view, ConConn is where a buyer can find suppliers that are close to their job sites, and with the press of a button, can get multiple quotes from several suppliers. A buyer can also purchase materials and services, rent equipment, book trucking services and much, much more. On ConConn, a contractor can book 10 dump trucks for a job in Quincy starting tomorrow, check pricing and availability for an excavator rental near Weymouth for next month, and get three quotes for 20,000 tons of gravel delivered to Littleton next Tuesday. He can also find a fellow contractor who needs his ex“ConConn has been a great way for my company tra excavated fill today. to gain exposure and work with new contractors.

The ConConn platform consists of four connected but distinct Technology in this market is long overdue.” components: Trucking Services, Haves & Wants, Online Stores,

~ Ryan Roach, Owner, Roach Trucking and Doing95™.

Contractors connect with selected truckers 24/7.

ConConn is your marketing department, providing templates for an easy to build website and interactive online presence, advertising opportunities and custom email campaigns.

32

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

FEBRUARY, 2017

“With the click of a button, I can line up my trucks for the day. Another click and I receive quotes for materials from multiple suppliers. The process could not be simpler.” ~ Dan Pasquarosa, Sales/Operations Manager, C.J. Mabardy availability. For the contractor, materials supplier or government agency it’s an interactive, up-to-date listing of truck resources. From a single console, one person can track trucks for 20+ Foremen across multiple jobs and review truck consumption at a glance. ConConn Trucking Services started with dump trucks, but other trucks - water trucks, sweepers, flatbeds, and more can also be listed, found, and booked.

With ConConn Online Stores, contractors and other buyers can submit online RFQs and receive quotes within minutes.

What’s Your Best Price for 20,000 Tons of Dense Grade Gravel Delivered?

It’s hard to imagine using a “shopping cart” for 20,000 tons of dense grade gravel or to reserve an excavator for a month, but to date that is what website technology has to offer. Horizontal construction is far more complex than retail because anything measured in tons has different considerations - quoting, delivery, timing - all go into the price. With ConConn Online Stores, suppliers of earthen materials, equipment rental and sales, site services and more, can post their line card, complete with pictures, descriptions, and reports or material analysis.

ConConn provides easy-to-edit templates, so creating an Online Store takes minutes. Buyers search stores, request quotes, review multiple quotes, and can place orders.

Search for and book trucks with the click of a button. Book your “favored” truckers or create new relationships.

continued on page 35

“Our motto is never haul empty. We are always looking for recyclables, ledge, and gravel for our backhauls.”

FEBRUARY, 2017

~ Mike Yaseen, Aggregates/Recycling Sales, G. Lopes Construction

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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ConConn continued from page 33

Wanted: 10,000 CY Clean Fill ConConn Haves & Wants is a classified listing service specifically designed for horizontal construction. If you are building a housing development and are looking for the nearest highway overpass project that might need your extra excavated fill, Haves & Wants is a great place to look. If you are a home builder that has just dug a foundation you can create a listing and perhaps find a materials supplier that can take your extra fill for free, saving you time and money.

Members and visitors browse 100’s of current horizontal construction specific listings in their local area.

“Part of our business is recycling materials. Through ConConn, contractors have found our dump site and I’ve created new relationships. All it took was a single Haves & Wants listing.”

~ Matt Turner, Manager, North Shore Compost

Double Your Profits

Drive at 95% capacity. Fill backhauls.

ConConn Doing95™ is a natural extension to a central marketplace for all of the goods and services used in horizontal construction. Doing95™ is for filling empty backhauls. By mapping and visualizing routes, truckers, contractors, and material suppliers can find piles of recyclables, various desirable materials and heavy equipment that need to be moved. Hauling 95% of the time versus 50% more than doubles your profit!

UCANE is proud to count ConConn as a member of our Association. Our officers, board, and staff wish them continued growth and success in the future. n FEBRUARY, 2017

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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We know you face many risks above and below ground.

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

Nationwide “Best of the Best” Award MarshBerry Largest Insurance Brokers in Massachusetts Boston Business Journal Top 100 Independent Property & Casualty Agencies in the Nation Insurance Journal Magazine

Robert Bizak Executive Vice President UCANE Member & Construction Insurance Specialist Direct: 508.747.4385 rbizak@rogersgray.com

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FEBRUARY, 2017

Trade Show booths offered at NO COST to Construction Outlook Magazine Advertisers.

UCANE’s 6th Annual Appreciation Night Trade Show

March 15, 2017 Will be held prior to our March Forecast Dinner Meeting

If you are not currently advertising in Construction Outlook magazine, we hope you will consider placing an ad. Our monthly magazine showcases your products and services to the contractors who use them. In addition to your ad being featured in the print version of Construction Outlook it can also be viewed electronically on our website. Your ad will also be listed under advertisers on our website and will be featured in our e-newsletter on a rotating basis, all at no additional cost to you. Our Trade Show is a great opportunity to meet with UCANE members and guests face-to-face.

For more information and advertising rates call Suzanne at the UCANE office.

Cape Water Agency's Future Murky The Cape Cod Water Protection Collaborative may not be a stand-alone county agency for much longer, but where it ends up and what remains of it is anyone's guess.

During a fiscal year 2018 budget briefing meeting on Wednesday, January 18, Leo Cakounes, chairman of the Barnstable County Commissioners, implied the Cape's regional government may not fund the collaborative in its current form.

T

he collaborative was founded in 2005 through a county ordinance to offer a coordinated approach to enhance water and wastewater management efforts in the Cape's 15 towns, to seek funding support for the towns and to provide access to cost-effective and environmentally-sound wastewater infrastructure.

Cakounes said he is considering moving elements of a significantly scaled back collaborative to the Barnstable County Department of Health and Environment and the Cape Cod Commission.

Sims McGrath, Jr., chairman of the governing board of the collaborative and chairman of the Orleans Board of Selectmen, presented a level-funded budget of $502,000 to the commissioners Wednesday.

The budget included $102,000 for the salary and expenses of an executive director, a post that is currently vacant. Andrew Gottlieb, chairman of the Mashpee Board of Selectmen, who served as executive director of the collaborative for the past decade, resigned from the position earlier this month. But not everyone is happy with Cakounes' plans for the collaborative.

Commissioners were presented with letters from the boards of selectmen in Bourne and Eastham praising the work of the collaborative and requesting that Gottlieb be rehired.

FEBRUARY, 2017 SEPTEMBER, 2016

"I think the collaborative needs an executive director," said McGrath. "It brings to the municipalities someone pushing for regulatory reform and seeking financial assistance on Beacon Hill and on the federal level. If he (Gottlieb) were to re-apply for the position, I hope he would be hired without prejudice.

I have yet to meet a person who is as uniquely qualified for this position."

Gottlieb declined to comment on the letters when reached by telephone on Wednesday.

McGrath said the budget request also includes a $250,000 match to a state grant for ocean water quality monitoring, funding for two subcontractors to help municipalities with engineering and financial planning, and funds to assist Cape towns evaluate and implement alternatives such as shellfish propagation.

"The county is not in a financial position to put up $400,000 for you (the collaborative) to give out grants," Cakounes said.

Earlier this month, Cakounes said he is aiming to slash $1 million from last year's $27.7 million county operating budget. "I don't want to fund any of it, personally," Cakounes said about the collaborative after Wednesday's meeting.

Cakounes said he does not want to see any critical ongoing projects, such as ocean water quality continued on page 41

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Spotlight on Cape Cod continued from page 39 monitoring by subcontractors stop, but he only wants to move forward with a bare bones program without an executive director. "I don't see why the county should be on the hook to fund an executive director position to supervise a group that meets four times per year and hands out grants," he said.

Cakounes also expressed frustration that much of the data compiled by the collaborative during its existence is not easily accessible online for the county's 15 towns.

Cakounes said he plans to meet this month with Paul Niedzwiecki, executive director of the Cape Cod Commission and George Heufelder, director of the county's Department of Health and Environment, to discuss a reorganization strategy for the collaborative.

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Any unspent money from the collaborative's fiscal year 2017 budget - which could be more than $300,000 - will be returned to the county's general fund, he said.

Cakounes said a reorganization of the collaborative, along with a final budget for its surviving programs, was be completed by February 8.

Written by Geoff Spillane. Reprinted with permission from the Cape Cod Times. n

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Massachusetts Secretary of Housing and Economic Development Addressed UCANE Members at January Dinner Meeting Guest Speaker

Jay Ash

Mass. Secretary of Housing and Economic Development

Knowing that the Baker Administration and the legislators on Beacon Hill had recently agreed to fund legislation that assists municipalities with a myriad of local issues, a capacity crowd of UCANE members, municipal officials and guests attended UCANE’s first dinner meeting of 2017. Our guest speaker Massachusetts Secretary of Housing and Urban Development Jay Ash shared details about the program. The meeting also served as an opportunity to welcome new companies to the UCANE family, pay tribute to exiting Board members and outgoing President John Our for their service, and induct the 2017 Board of Directors and Officers, including newly elected UCANE President Paul Scenna, of Albanese D&S, Inc.

Installation of UCANE’s 2017 Officers & Board

Officers & Board in attendance: (L-R) Chris Valenti, GVC Const., Inc.; John Our, Robert B. Our Co., Inc.; Peter Williamson, LM Heavy Civil Const., LLC; Al Morteo, FED. CORP.; Ken Vogel, WES Construction Corp.; Brian Cooney, C.C. Const., Inc.; Paul Scenna, Albanese D&S, Inc.; Kevin Cole, J. F. White Contracting Co.; Richard Pacella, Jr., R. M. Pacella, Inc.; Gerry Carney, Jr., C. N. Wood Co., Inc.; Marcella Albanese, Albanese Bros., Inc.; Tony Borrelli, Celco Const. Corp.; Ryan McCourt, McCourt Const. Company; Nick Biello, J. D’Amico, Inc.; Brian Rawston, Jay Cashman, Inc.; John Berksza, Eastern Insurance Group, LLC; and Vincent Barletta, Barletta Heavy Division.

Officers & Board not in attendance: Greg Feeney, Feeney Bros. Excavation, LLC; Jerry Gagliarducci, Gagliarducci Const., Inc.;Marco Gioioso, P. Gioioso & Sons, Inc.; A. J. Lorusso, Lorusso Heavy Equipment, LLC; Joseph Pacella, RJV Construction Corp.; and David Zoppo, R. Zoppo, Corp.

42

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UCANE’s Executive Director Anne Klayman, opened the meeting by welcoming the attendees and introducing Assistant Executive Director Jeff Mahoney, who provided the formal introduction of the evening’s keynote speaker. Jeff provided the attendees with background to the speaker’s extensive civil experience, giving details of his many accomplishments as the City Manager of Chelsea, MA. Jeff noted that the Secretary was responsible for directing and executing Governor Baker’s agenda on housing and community development, job creation, business development, consumer affairs, and business regulation. In addition, he pointed out that Secretary Ash also oversees the MassWorks program, which offers municipalities and other eligible public entities grants for infrastructure projects, including water infrastructure, to support economic development and job creation. This past year, the Baker administration, led by Secretary Ash, filed and passed legislation authorizing $500 million for the program over the next five years.

Secretary Ash opened his remarks by updating the audience on the economic stability of the state, noting General Electric’s move to Boston last year as a sign of the current strength of our economy. He also brought up the challenges that the Massachusetts economy faces, saying that the number one issue in the coming years is employers’ concerns about having a pool of qualified workers. He also recognized that the workforce issue is of particular concern to the construction industry. He talked about the positive bipartisan efforts the Baker Administration and the Legislature are taking to try to ensure that employers will be able to fill job vacancies.

He then spoke about his prior experiences as Chelsea City Manager, and how he recognized that utility contractors operate as “unsung heroes,” responding to emergencies and providing safe and clean water. He also said it was a pleasure to finally put faces with the names of the companies he has dealt with over the years. He closed his remarks by thanking UCANE and its members for their work, and for the opportunity to come and address the membership. He also stated that he is looking forward to working together to strengthen our state’s economy going forward. continued on page 45

FEBRUARY, 2017

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Dinner Meeting continued from page 43

Following the Secretary’s well-received remarks, Anne welcomed new UCANE members in attendance, including Michael Arnheiter from Exit Strategies Group of Waltham; and Tom Kiley from BlumShapiro of Quincy.

Anne then honored the outgoing 2016 Board Members, Jon D’Allessandro of D’Allessandro Corp., and Paul Umbro of Umbro & Sons Const. Corp., and thanked them for their support to help make UCANE a stronger and more professional Association. Anne also acknowledged several guests who were in attendance from the Mass. Highway Association and the Norfolk, Bristol, and Middlesex (NBM) Highway Association. She then recognized outgoing President John Our for his contributions over the past year. John responded by saying that serving as President was a tremendously positive experience and encouraged other UCANE members to get more involved.

The 2017 Officers and Board Members in attendance were then introduced and administered the Oath of Office

by Anne. Paul Scenna, UCANE’s new President, thanked the membership for their support and pledged to continue the good work of those who served before him, noting that over the years, each of them did an outstanding job during their term as President. He especially thanked John Our for his service as President in 2016. Paul then noted how over the past 63 years, our members have given unselfishly of their time, most times their personal time, to make our association a potent force and a vocal advocate for clean water and drinking water issues. He said that he will continue our policy of inviting contractor members to

FEBRUARY, 2017

attend board meetings so they can see and hear the decisions we make, the work we do, and the influence and impact these decisions have on all of our companies and the success of their businesses.

Paul said the critical issues coming up this year are securing increased SRF funding to assure that a maximum number of projects are put out to bid; assisting cities and towns to obtain necessary funding for much needed water and sewer projects; and to press for passage of our Dig Safe bill. He also stated the importance of continuing to strengthen our Association by increasing membership, and he asked for our membership’s support in order to reach this goal.

Paul concluded his remarks by again thanking the membership for their support and asking contractor members to do business with our associate members whenever possible. He said it is important that we support our associate members who so generously support UCANE. Paul also introduced his family members who were in attendance, and thanked them for their love and support.

In addition, he thanked John and Gilda Albanese and the Ciano family for giving him the opportunity to work for such a well-respected company.

Anne closed the evening’s program by providing details about several upcoming seminars and encouraging all to attend. She then offered a heartfelt thank you to attendees for their support and for making the evening a success. n

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By Mark A. Lies, II and Adam R. Young

Cell Phones at the Workplace Managing the Hazards

B

usiness today is regularly conducted through cell phones, as a necessary tool for employees to communicate and access digital information.

Bring Your Own Device programs and employee cell phone use present a range of employment and labor liabilities for employers: smartphones can be a forum for employees to engage in protected concerted activity, an opportunity for unauthorized overtime work, and a tool to access inappropriate images and harass coworkers.

Yet the biggest challenges posed by cell phones are their safety hazards. Distracted driving is the number one cause of workplace fatalities and cell phones are the biggest cause of distraction in the forms of text messaging, talking and game-playing.

Cell phone distractions can impugn employees’ spatial awareness, recognition of hazards and operation of dangerous equipment. Finally, studies show that defects in certain cell phone batteries have resulted in fires and explosions. Accordingly, employers with Bring Your Own Device programs or who provide cell phones for use at the workplace must understand and manage the safety risks these devices pose.

Distracted Driving Employers whose businesses require the use of cars, vans, or trucks must understand that their policies and training regarding the safe operation of those vehicles—and the inclusion of a clear prohibition against texting on a hand held cell phone while driving—are of strong interest to OSHA, the law enforcement community, insurance carriers, and potential civil litigants. Failure to address this hazard can result in significant employer liability.

FEBRUARY, 2017

Federal OSHA maintains a Distracted Driving Initiative, in which it targets texting as a major cause of workplace injuries. In a 2010 open letter to employers, Assistant Secretary of Labor for the Occupational Safety and Health Administration (OSHA) David Michaels said, “It is your responsibility and legal obligation to have a clear, unequivocal and enforced policy against texting while driving….Companies are in violation of the Occupational Safety and Health Act if, by policy or practice, they require texting while driving, or create incentives that encourage or condone it, or they structure work so that texting is a practical necessity for workers to carry out their jobs. OSHA will investigate worker complaints, and employers who violate the law will be subject to citations and penalties.” OSHA has used its General Duty Clause, Section 5(a)(1) of the Occupational Safety and Health Act, to issue citations and proposed penalties in these continued on page 49

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Safety Corner continued from page 47

organizes work so that texting is a practical necessity, [OSHA] will investigate and where necessary issue citations and penalties to end this practice.” Accordingly, employers need to be wary of workplace texting, and make clear that texting while driving is prohibited.

circumstances. OSHA considers “distracted driving” which can include texting (and potentially the use of cell phones for telephone calls) to be a “recognized hazard” under the General Duty Clause to employee safety. Penalties for willful violations of the Act under Distracted Operation of Industrial the General Duty Clause can be as high as $124,709.

Machinery Even with a no-texting policy, OSHA may cite employers when employees are texting while driving, Cell phone distractions present safety hazards where texting is a common workplace practice. OSHA far beyond the driving of personal vehicles. At the indicates that “when it receives a credible complaint most obvious, operators of powered industrial trucks Burke Wicked HD 4.625 x 7.5 9-16:Dennis K. Burke 10/24/16 2:18 PM Page 1 that an employer requires texting while driving or who or other industrial machinery, including concrete cutting equipment, can be distracted by cell phone use. OSHA regulations squarely forbid the use of cell phones in construction regulations pertaining to cranes and derricks (29 C.F.R. § 1926.1417(d)), but the hazard exists across any dangerous equipment. Accordingly, active operation during the use of industrial equipment should be strictly prohibited.

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As any employer with industrial machinery knows, preventing accidents starts with making sure employees are aware of their surroundings. Distractions from cell phones impair employees’ ability to recognize and react to hazards, such as passing forklifts, which can hit pedestrian employees.

Of recent concern is the use of “augmented reality” games, such as Pokémon Go, in which players view the world through cell phone screens, walk around while distracted and search real world sites for game-related information. These games encourage cell phone use and distraction while walking around and should be prohibited from the worksite.

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Safety Corner continued from page 49

cent news reports, defective cell phones have produced smoke and grounded a flight, ignited a car and smoldered on a child’s pillow. A cell phone manufacturer has reported 35 cases of its devices’ batteries burning or exploding while charging and has issued a recall for millions of devices. The Federal Aviation Administration has issued a warning about a particular model of personal device, telling passengers, “not to turn on or charge these devices on board aircraft and not to stow them in any checked baggage.”

it comes to cell phone distractions. For example, 13 states have banned the use of handheld phones while driving for talking. 46 states and the District of Columbia ban text messaging for all drivers, and in many of the remaining states similar bans are in place at the county or city level. These laws make texting while driving illegal and also open employers to liability for accidents that result from their employees’ distracted driving and improper use of cell phones.

Consequently, cell phones can represent a recEmployees face both individual civil and crimiognized fire hazard at the workplace. As the Agency’s nal liability for damages that result from accidents understanding of the hazards develops, we anticipate caused by texting while driving or engaging in other that OSHA could address this issue under the Genwork. Likewise, employers face vicarious liability for eral Duty Clause, citing employers who fail to protect the acts of their employees under agency law for employees from the recognized hazard of cell phone personal injury or property damage their employees battery fires. Employees who work around flammable cause during the course of employment. When an vapors or dust face enhanced risks from fires and exaccident happens as a consequence of distracted plosions. It is a common practice at gasoline stations driving or operating machinery while the employee is to have warnings that cell phones should not be used on company time, the employer is potentially liable. while fueling because of the potential for ignition of Where the employer has not affirmatively prohibited flammable gasoline vapors. Employers must manage texting while driving and enforced that policy, the emand limit the fire hazards posed by recalled, dangerployer faces potential liability as a result of the acous cell phones in the workplace. cident.

Vicarious liability, as it is called, is not a new leWhat Should Employers Do? gal concept. Employers have faced liability in similar Employers need to put in to effect clear policies situations for decades for the acts of their employees that unequivocally prohibit texting and talking on a that occur during the course of the employment recell phone while operating any kind of motorized velationship. Consider the claims made against pizza hicle while performing work activities. This includes delivery companies whose drivers were instructed to cars, buses, trucks, forklifts, construction, and agrideliver a pizza in 30 minutes or less. In the context of cultural vehicles. The “workplace” includes any locadistracted driving, the price of vicarious liability can tion that the employee is operating a vehicle in their be significant. In Florida, a lumber wholesaler settled role as an employee. For example, many employers for over $16 million after one of its salesman hit and continued on page 51 severely disabled an elderly woman while talking on a cell phone.

Beyond potential OSHA administrative penalties and civil and MBO Precast Inc. criminal liability, employers should 4 Marion Drive • Carver, MA 02330 also consider how their policies T: 508-866-6900 • F: 508-866-5252 and practices can affect their insurwww.MBOPrecast.com ance rates. There is no question that with an increase in accidents caused by distracted employees, Stone Strong Retaining Wall Systems the cost of worker’s compensation Manholes / Catch Basins / Custom Structures and other insurance coverage will Septic Tanks / Leaching Products rise.

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Safety Corner continued from page 50 require employees who operate motor vehicles to take the vehicle out of moving traffic lanes, stop the vehicle completely and then utilize the cell phone or electronic device to communicate.

Employers should consider a prohibition on workplace cell phone in areas of the workplace that distractions would presents a hazard to employees.

Employers could consider banning cell phone gaming or viewing obscene materials at the workplace entirely.

Employers should also carefully evaluate existing policies and the nature of their workplaces to ensure that there are no incentives or unwritten policies and Boston practices that encourage the Area use of hand-held communication devices for Locations texting or data entry while in a 2 Dexter Street Everett, MA 02149 Boston Area Boston Area Locations Locations 431 Second Street Everett, MA 02149 2 Dexter Street 2 Dexter Street

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hazardous area, or while operating a vehicle.

Consider the use of certain applications in company-issued devices that can block the use of cell phones, including texting and internet access, while a vehicle is moving.

Enforce bans on texting while operating a vehicle or in a hazardous area of a workplace. Enforcement of these policies must be consistent and cover both management and non-management employees alike.

If texting or data entry is a necessary part of an employee’s job, consider devising a schedule that allows for routine breaks during which vehicles and dangerous activities are stopped to allow for the communication or data entry to be completed.

Inform employees of the fire hazard posed by recalled, dangerous cell phones, particularly with regard to the ignition of flammable vapors. Prohibit recalled or dangerous cell phones from being used in the workplace.

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Conclusion As OSHA’s enforcement relating to employee cell phone use gains more notoriety, it can be expected that it will have a significant collateral impact on law enforcement at all levels to address this hazard. If the foregoing recommendations are considered and adopted by employers, they will reduce potential individual civil and criminal liability of employees as well as the vicarious liability of the employer. Reprinted with permission. n

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2017 Jobsite Safety Awareness Refresher Seminar

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n January 25, 2016 UCANE hosted its first Jobsite Safety Awareness Refresher Class at the Irish Cultural Centre in Canton, MA. The idea was first brought to us by HD Supply Construction & Industrial White Cap. In a joint effort between Mike Lenihan (UCANE) and Dan Scimone (Safety Program Manager at HD Whitecap), an interesting and compact 4-hour safety program was developed along with an informative and useful booklet for attendees.

The program covered multiple areas of safety concern that Utility Contractors encounter on an almost daily basis.

A special session was included covering the new OSHA Rule on silica exposure and its impact on the utility construction and highway industry. OSHA changed the standards for silica exposure, training, and record keeping in 2016, and enforcement by OSHA begins June 2017. The new standards require a job specific Silica Plan and may affect a contractor’s normal work procedures and tool selection when it comes to drilling, demolition, saw cutting, and other site activities that create dust (especially cement dust).

The instructors reviewed safe work practices and OSHA requirements for several areas including power tool use, chain and sling inspection and tagging, ladder selection and OSHA pitfalls, lockouttagout requirements, and confined space recognition with corresponding OSHA requirements for air testing, ventilation, oversight, and trained rescue team availability. Each topic was presented by a manufac-

FEBRUARY, 2017

turer’s representative with extensive experience and OSHA knowledge in that specific area. The hands on presentations, demonstrations, and videos provoked questions and interaction from the audience.

UCANE is proud to have HD Supply Construction & Industrial White Cap as a member of our Association, and we thank Dennis Ford, Dan Scimone, and their staff for working with us to present this Safety Refresher Class.

Special thanks to all of the presenters who helped make this program a success including: Scott Williams (Makita Tools), Fred Ludvigsen (Lift-All Slings and Rigging), Liam Russell (3M Products), Tom Allen (Werner Ladder Co.), Ted Bertram (DBI Sala-3M Fall Protection), and George Simmons (Industrial Safety and Rescue Co.) n

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2017 Scholarship Applications Now Available UCANE to Award Twelve $2,000 Scholarships WHO MAY APPLY? Any high school student who is the son or daughter of a UCANE member or an employee of a member who will be enrolling full time in an accredited four year academic institution for the year beginning in September 2017.

IMPORTANT: In the event the applicant receives a full first year scholarship from the college of his/her choice, or from any orginization, civic group, etc., the UCANE scholarship will be awarded to another applicant.

HOW WILL THE APPLICATION BE JUDGED? This year there will be twelve $2,000 scholarships awarded. Selections for the awards will be based upon: 1. scholastic achievement 2. interest and effort in preparing for your vocation 3. extra-curricular activities at and away from school, including community service 4. personal recommendations 5. throughness of the completed application, particularly the essay 6. financial need

HOW WILL THE CONFIDENTIALITY OF THE APPLICATION BE PROTECTED? Each applicant is assigned a number. When completed, page 1 of the application with the name of the applicant must be detached and sealed in the accompanying envelope. The applicant’s name must not appear on pages 2-4 of the application or attached transcripts and recommendations. After the winning applications have been selected, the envelopes with corresponding numbers will be opened to identify the award recipient.

WHAT MUST ACCOMPANY THE APPLICATION? 1. A transcript of high school grades through the latest period prior to April 15 must accompany application.

2. A letter of recommendation from the principal or faculty advisor. The letter should include the number of students in the class and the standing of the applicant or equivalent must accompany application.

3. Additional recommendations from people familiar with the applicant’s ability and character, and from responsible members of the community, (optional but recommended).

4. Please indicate the UCANE company by which you or your parent is employed.

NOTE: The name of the applicant must be deleted entirely from pages 2 through 4 and all accompanying correspondence, and your application number must be inserted in its place.

WHEN MUST I APPLY? All applications must be submitted no later than April 15, 2017. When requesting an application, please include: UCANE member company name; employee’s name (must be parent, legal guardian, or graduating student); home address, phone number, and email.

FOR AN APPLICATION, PLEASE SEND YOUR WRITTEN REQUEST TO: 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 FEBRUARY, 2017

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February 2017 Insights

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P

The Administration

resident Trump, by all accounts, is still committed to an omnibus mega infrastructure proposal. It was one of the cornerstones of his campaign…jobs, jobs, jobs. Per the campaign rhetoric, it would be a $1 trillion 10-year multi-faceted plan in scope and funded by private investments and federal bonds that could be purchased by investors and/or private citizens. That rhetoric has carried through post campaign. He recently announced the creation of an Infrastructure Council, headed by two New York businessmen (Steven Roth and Richard LeFrok) to include 10-15 major engineering and developer representatives. He addressed it in his inaugural speech - the only time that I could recollect in my days in D.C. that infrastructure received any attention in such a speech. The Republicans begin their annual issues retreat. Infrastructure is on the agenda and the President is expected to attend. In addition, infrastructure/jobs questions have been raised at the recent news conferences with responses by the Administration that are all positive and encouraging. Even off-the-record comments by non-press secretarial personnel on the issue all reaffirm the President’s commitment. His nominees for the Office of Management and Budget (OMB) Mick Mulvaney, and Department of Transportation (DOT) Elaine Chao testified at their confirmation hearings in support of the plan, the latter stating that one of her first orders of business once confirmed is to establish an infrastructure task force within the DOT. Having said that, it appears that this initiative will likely be a “Day 200” issue developed later this spring as health care, taxes, and regulatory overhaul are already dominating discussions during the first 100 days.

Also, notwithstanding the overall rhetoric and commitment, there are still more questions than answers from the Administration including:

FEBRUARY, 2017

How is infrastructure being defined? Will it primarily be transportation and water infrastructure or will it include pipelines, such as the Keystone pipeline, the electric power grid, cybersecurity, broadband, public buildings, etc.? The broader the definition, the less money potentially for a particular sector.

What form will the investment take? Will it be predominately private sector financing including P3s, tax credits, repatriation, or tolling; i.e. loans which need to be paid back and are only applicable to a select number of projects, or will it include long-term, sustainable federal funding for the Highway Trust Fund such as a gas tax or other revenue increases?

Will it be focused primarily on iconic or legacy projects as some have suggested? This approach would benefit certain critical mega projects such as NY/NJ's Gateway, Chicago's CREATE, Ohio's Brent Spence Bridge, etc., but could leave nothing for some states and for much needed maintenance and rehabilitation projects across the country.

Who will have the lead in developing the plan? Will it be US DOT or perhaps the Treasury Department given the focus on tax revenues or the White House given Trump's personal interest? Will it be driven by the House Ways & Means and Senate Finance Committee rather than the traditional transportation authorizing committees?

Will Congress cooperate with the Trump Administration? Many fiscal conservatives in Congress, including Mulvaney, the OMB nominee, are leery of funding proposals that would increase the deficit.

Lastly, there was a report circulating recently indicating that the Administration had already identified projects that would be funded via the President’s proposal.

To set the record straight, a former member of the Trump transition's landing team for DOT said a list of infrastructure projects supposedly tied to the new Administration is actually fake. "We saw it and confirmed it did not come from the transition team," Brigham McCown, the chairman of the Alliance for Innovation and Infrastructure, reported. He also said that some of the projects listed aren't requesting funding from the federal government continued on page 58

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CWCC continued from page 57 and that some of these projects have been completed, some are in development, some are good candidates, and others would not be the types of projects we would have recommended.

Congressional Republicans At this time, both House and Senate Republicans have taken a “wait and see” approach pending the confirmation of an OMB Director, Secretary of Transportation, the President’s FY18 Budget, and ongoing discussions. However, they also do believe that they and the new Administration can still make headway on an infrastructure measure over the coming months - just out of the spotlight. They still maintain that sticker shock will be the largest challenge to getting Republican lawmakers on board, which means that Members will have to be convinced that spending money on infrastructure is different than funding a program - this is an investment, and there's a return on that investment. In further support for infrastructure action, outgoing Senate Committee on Environmental and Public Works (EPW) Chairman Jim Inhofe will hold onto one of the committee's subcommittee gavels this Congress, taking charge of the Transportation and Infrastructure panel. That subcommittee will have primary jurisdiction over any infrastructure legislation

and Inhofe is a strong infrastructure advocate. Inhofe was also named to the Commerce Committee, giving him two platforms from which to advocate for what he thinks should be in any grand infrastructure package.

Congressional Democrats Senate Minority Leader Schumer and House Minority Leader Pelosi said that while Democrats are open to a conversation with the Administration about infrastructure, they need more details before they can commit their support to any legislative package. Both are advocating for direct spending on infrastructure, arguing that a program of tax credits isn't going to get the job done. Recently, Senate Democrats unveiled their own 10-year $1 trillion infrastructure plan - "A Blueprint to Rebuild America's Infrastructure" - which includes $110 billion specifically for water and sewer systems. It would be paid for with federal funds by closing tax loopholes.

Regarding water infrastructure, the plan states that “we will make major investments in the Clean Water and the Drinking Water state revolving funds, and USDA water programs, to address the growing backlog of water and sewer projects. We will also give States new flexibility to provide communities with more grants rather than loans. This will unlock thousands of new water and sewer infrastructure projects without burdening local ratepayers. In addicontinued on page 59

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CWCC continued from page 58 tion, we propose decreasing the local matching funds required of states and local governments who simply cannot afford to take on more debt. Finally, we will increase funding for the Water Infrastructure Finance and Innovation Act program that provides federal loans to support large-scale water infrastructure projects with national and regional significance.”

Also, in attempts to keep the pressure on, Reps.

John Delaney (D-MD), Ted Yoho (R-FL) and Rodney Davis (R-Il) will soon reintroduce two infrastructure bills that have failed to gain enough traction in the past but may be more viable now that Trump has vowed to upgrade the nation's infrastructure. One of the bills, "The Partnership to Build America Act," would establish a fund to finance infrastructure projects on the state and local level. The other bill, "The Infrastructure 2.0 Act," would tax repatriated profits at a lower rate and use the revenue to invest in infrastructure. We are also awaiting Congressman McNerney’s bill that could factor into the deliberations.

Clean Water Construction Coalition The Clean Water Construction Coalition continues to meet with all stakeholders to advocate for and support legislation that addresses water infrastructure funding. n

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John E. Merchant, CPA IN THIS ISSUE

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• After-Tax Dollars in Traditional IRAs • “Combo” Products for Long-Term Care Coverage • Defined Benefit Plans for (Very) Small Companies

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After-Tax Dollars in Traditi After-Tax Dollars in Traditional IRAs

W

they take dis careful, they dollars.

Example $100,000 in February 15 has made de contribution from nonde came from d $30,000 cam inside Marg Now Ma distribution IRS.Workers However,under Margeage would making a mistake, re-report $20,0 70½becan deduct sulting in a tax overpayment. contributions to a traditional IRA, as long from that di Dealing with Distributions as they areCream not covered by an employer’ s IRA custod in the Coffee retirement plan. The same is true for those distribution Problems can arise for people who hold nondeTo the IRS, a taxpayer’s IRA money must be ductible dollars in their IRAs when they take distribuworkers’ spouses. stirred together to include pre-tax and after-tax dol-would be m tions. Unless they’re careful, they may pay tax twice If these taxpayers are coveredto by lars. Any distribution is considered bean proportion-tax overpaym on the same dollars. ate. employer If Marge were to pay tax on a full $20,000 distriplan, they may or may not be able Example 1: Marge Barnes has $100,000 in her bution, she would effectively be paying tax twice onCream in t to deduct IRA contributions, depending traditional IRA on February 15, 2017. Over the years, the after-tax dollars included in this distribution.

To the IRS, on the taxpayer’s income. (See Trusted she has made deductible and nondeductible conExample 2: After hearing about this rule, Marge Advice, “Deducting IRA Contributions.”) tributions. Assume that $25,000 came from nondecalculates that her $25,000 of after-tax moneybe stirred to ductible contributions, $45,000 came from deductible all eligible workers and (herHowever, nondeductible contributions) wasspouses 25% of herand after-tax contributions, and $30,000 came from investment $100,000 IRA nondeductible on the date of contributions the distribution. can make to Thus,is considered earnings inside Marge’s IRA. 25%a of the $20,000 represented traditional IRA,($5,000) regardless of income.after-taxMarge were Now Marge wants to take a $20,000 distribution dollars, so Marge reports the $15,000 remainder of distribution Inside a traditional IRA, any investment from her IRA. She might report $20,000 of taxable the distribution as a taxable withdrawal of pre-tax doltax twice on earnings will be untaxed. income from that distribution; indeed, Marge’s IRA lars. Again, this would be incorrect. custodian may report a $20,000 distribution to the continued on page 65in this distri Dealing with distributions Example Problems can arise for people who hold rule, Marge “BUY FROM THE ADVERTISERSnondeductible IN CONSTRUCTION FEBRUARY, 2017 dollarsOUTLOOK” in their IRAs when 63of after-tax m

orkers under age 701⁄2 can deduct contributions to a traditional IRA, as long as they are not covered by an employer’s retirement plan. The same is true for those workers’ spouses.

If these taxpayers are covered by an employer plan, they may or may not be able to deduct IRA contributions, depending on the taxpayer’s income. (See Trusted Advice,“Deducting IRA Contributions.”) However, all eligible workers and spouses can make nondeductible contributions to a traditional IRA, regardless of income. Inside a traditional IRA, any investment earnings will be untaxed.

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Financial Management continued from page 63 Year-End Calculation Tax rules require an IRA’s after-tax contributions to be compared with the year-end IRA balance, plus distributions during the year, to calculate the ratio of pre-tax and after-tax dollars involved in a distribution.

Example 3: Assume that Marge’s IRA holds $90,000 on December 31, 2017. Her $100,000 IRA was reduced by the $20,000 distribution in February, but increased by subsequent contributions and investment earnings. Therefore, Marge’s IRA balance for this calculation is $110,000 (the $90,000 at yearend plus the $20,000 distribution). This assumes no other distributions in 2017.

Accordingly, Marge divides her $110,000 IRA balance into the $25,000 of after-tax money used in this example. The result—22.7%—is the portion of her distribution representing after-tax dollars. Of Marge’s $20,000 distribution, $4,540 (22.7%) is a tax-free return of after-tax dollars, and the balance ($15,460) is reported as taxable income. Marge reduces the aftertax dollars in her IRA by that $4,540, from $25,000 to $20,460, so the tax on future IRA distributions can be computed.

Form 8606 As you can see, paying the correct amount of tax on distributions from IRAs with after-tax dollars can be complicated. Without knowledge of the rules, an IRA owner may overpay tax by reporting alreadytaxed dollars as income. However, keeping track of after-tax and pre-tax dollars may not be simple, especially for taxpayers with multiple IRAs and multiple transactions during that year.

The best way to deal with this issue is to track pre-tax and after-tax IRA money by filing IRS Form 8606 with your federal income tax return each year that your IRA holds after-tax dollars. continued on page 67

Trusted Advice Deducting IRA Contributions • Single filers who are covered by a retirement plan at work cannot deduct traditional IRA contributions for 2016 with modified adjusted gross income (MAGI) of $71,000 or more in 2016 ($72,000 for 2017 IRAs).

• On joint tax returns, covered workers are shut out from deductible IRA contributions with MAGI of $118,000 or more for 2016 ($119,000 for 2017).

• A spouse who is not covered by a retirement plan at work and files jointly with a covered worker can deduct IRA contributions as long as joint MAGI is less than $194,000 for 2016 ($196,000 for 2017).

• Other income limits apply to contributions to Roth IRAs in which contributions are never deductible, but future distributions may be tax-free.

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Financial Management continued from page 65

“Combo” Products for Long-Term Care Coverage erred annuity). With a combo it” drawback. With standalone LTC

I

f you or a loved one ever need help with duct, the consumer can obtain a insurance, the money spent could r that will offer adaily payoutliving if the activities, you will discover wind up generating no return. With ered individual needs either life insurance or a deferred thatLTC. custodial care can be expensive.

Example 1: Ted Moore has an annuity, there will be a payout to That’s true whether the care is provided urance policy on life, payable someone at some point.or Theinextra at his home, in an assisted living facility, is son Paul. Ted’s policy has an LTC coverage is another benefit that a nursing home, and it’s especially true if C rider. So, if Ted needs LTC, that possibly will come in handy. care is needed for many years. urance policy will provide a benefit Acquiring LTC coverage in this Long-term care (LTC) insurance is of elp pay those bills. Regardless if Ted manner usually avoids the threat available, insurance companies have ds care and collects an LTCbut benefit, future premium increases.

As another life insurance learned policy will pay a death existing insurance that these attraction, costs can belifesteep. efit to Paul atPremium the time of Ted’ s policies or annuities mightare be increases for LTC insurance th. exchanged, tax-free, for a new in the news (for example, some press re- contract Example 2: Rita Smith decides to invest in a deGenerally, in this situation, Ted up to $410 as a medical thatproduct’s that includes an LTC rider. ferred annuity, attracted by thatexpense; particular ports tell of cases where premiums have uld receive an “accelerated death amount scales up as premium payers features, which include guaranteed withdrawals. Like tripled in the last three years), and some efit” to pay for care. When someone Added expense maxingexample, out at $5,110 for those 70 rider for Ted in theage, previous she has an LTC insurance companies have dropped out The attractions of LTC combo products, ives such a payout, the amount of and In older.

Those outlays are added this annuity. retirement, Rita can receivetocash flow ofis subtracted this business.

Consumers face the as well. from the deferred annuity, and theand LTC rider will provide however, come with negatives lifetime benefit from other medical expenses, the amount ofwill paying The thousands of dollars underlying problem here includes death benefit prospect that eventually that exceeds 10% of adjusted gross continued on page 69 a year, everya year, and never getting the potentially disastrousany costs of LTC, paid to beneficiaries.

Typically, income can be taken as an itemized and this can’t be escaped by mbo life insurance product deduction. benefit atwould all ifbeit turns outproblem that custodial me form of whole life is or universal life, switching from one type of insurance to care not needed.

Putting needs first another. There often is a cost to adding her than term life insurance.

Things LTC rider to an insurance policy or a Combo products vary widely, and Example 2: Rita Smith decides toSure an annuity.path Thesetocombo st in a deferred annuity, Some attracted people might deferred prefer another LTC products so do individuals’ concerns on this issue. However, generally, people who may require a substantial outlay, which such as a hybrid or “combo” product. hat particularcoverage, product’s features, These come in two varieties: combination a relatively only want LTC insurance might be must bea paid upfront orwith within ch include guaranteed withdrawals. life insurance policy deferred annuity. Here, best-served with standalone coverage, fewayears. e Ted in the previous example, she or with a consumer buys a product that will deliver a death working with an insurance professional In addition, tax advantages may be an LTC rider for this annuity. In benefit (life insurance) orlost future flow (deferred to hold down premiums. That said, if withcash combo products.

With most rement, Rita can receive cash flow With a combo product, the consumer can you are interested in life insurance such m the deferredannuity). annuity, and the LTC standalone LTC insurance policies, obtain a rider that will offer a payout if the covered as whole life or universal life, it may be certain amounts of your premium r will provide money to pay for individual needs LTC. worth exploring the idea of adding LTC count as a medical expense, which can , if needed. Depending on how Rita Example 1: Ted has anbe insurance coverage, perhaps for an added fee. The potentially deducted.policy That’s not dles the annuity, there also may be a Moore on his life, payable to his son Paul. Ted’s policy has same may be true if you are seriously out to beneficiaries she has named at the case with a rider to a life insurance an LTC rider. So, if Ted needs LTC, that insurance considering a deferred annuity. g policy or to a deferred annuity. time of her death. policy will provide a benefit to help pay those bills.

As ofand 2017, peoplean ageLTC 40 and The common aspect of those Regardless if two Ted needs care collects younger can include LTC premiums ics is the absence of a “use it or lose benefit, his life insurance policy will pay a death ben-

efit to Paul at the time of Ted’s death.

Generally, in this situation, Ted would receive an “accelerated death benefit” to pay for care. When someone receives such a payout, the amount of the lifetime benefit is subtracted from the death benefit that eventuallybenefit will beplans, paid to beneficiaries.

Typically, a plans combo life be a ditional defined Ironically, these might insurance product would be some form of whole life ctured to provide a lifelong pension, good fit for extremely small or companies. life, rather life insurance. e become rareuniversal in the private sector.than term A possible prospect could be a business

efined Benefit Plans for (Very) Small Companies

y’re still the norm for public sector ployers; some large companies 2017 tinue to offer FEBRUARY, plans.

who are younger and modestly compensated.

or professional practice with one or two Key difference Most private sector retirement plans principals who are perhaps 5–10 years “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” today are defined contribution plans. from retirement, with a few employees

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

FEBRUARY, 2017

Financial Management continued from page 67 money to pay for care, if needed. Depending on how Rita handles the annuity, there also may be a payout to beneficiaries she has named at the time of her death.

The common aspect of those two tactics is the absence of a “use it or lose it” drawback. With standalone LTC insurance, the money spent could wind up generating no return. With either life insurance or a deferred annuity, there will be a payout to someone at some point. The extra LTC coverage is another benefit that possibly will come in handy.

Acquiring LTC coverage in this manner usually avoids the threat of future premium increases. As another attraction, existing life insurance policies or annuities might be exchanged, tax-free, for a new contract that includes an LTC rider.

Added Expense The attractions of LTC combo products, however, come with negatives as well. The underlying problem here includes the potentially disastrous costs of LTC, and this problem can’t be escaped by switching from one type of insurance to another. There often is a cost to adding an LTC rider to an insurance policy or a deferred annuity. These combo products may require a substantial outlay, which must be paid upfront

FEBRUARY, 2017

or within relatively few years.

In addition, tax advantages may be lost with combo products. With most standalone LTC insurance policies, certain amounts of your premium count as a medical expense, which can potentially be deducted.

That’s not the case with a rider to a life insurance policy or to a deferred annuity.

As of 2017, people age 40 and younger can include LTC premiums up to $410 as a medical expense; that amount scales up as premium payers age, maxing out at $5,110 for those 70 and older.

Those outlays are added to other medical expenses, and the amount that exceeds 10% of adjusted gross income can be taken as an itemized deduction.

Putting Needs First Combo products vary widely, and so do individuals’ concerns on this issue. However, generally, people who only want LTC insurance might be bestserved with standalone coverage, working with an insurance professional to hold down premiums. That said, if you are interested in life insurance such as whole life or universal life, it may be worth exploring the idea of adding LTC coverage, perhaps for an added fee. The same may be true if you are seriously considering a deferred annuity. continued on page 70

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

69

Financial Management continued from page 69

Defined Benefit Plans for (Very) Small Companies

T

raditional defined benefit plans, structured to provide a lifelong pension, have become rare in the private sector. They’re still the norm for public sector employers; some large companies continue to offer plans.

Ironically, these plans might be a good fit for extremely small companies.

A possible prospect could be a business or professional practice with one or two principals who are perhaps 5–10 years from retirement, with a few employees who are younger and modestly compensated.

Key Difference Most private sector retirement plans today are defined contribution plans. That is, the amounts that

can be contributed to the plan are set by law, with a maximum of $60,000 (counting employee and employer inputs) in 2017, or $54,000 for those under age 50. The amount of the eventual retirement fund will depend on how much is contributed and how well the selected investments perform.

Defined benefit plans, as the name indicates, operate by setting a target benefit: the amount of a pension a given employee will receive in retirement.

That benefit is determined by an employee’s age, compensation, and years of service with the company. Such plans might permit annual contributions well over $120,000 to the principal’s account, in certain circumstances. With few years to retirement, it will be necessary to build an adequate fund quickly, with large annual cash flows into the plan.

Those contributions can be tax-deductible for the employer and not taxable to the employee until money is received in retirement. Much smaller amounts continued on page 71

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Financial Management continued from page 70 might have to be contributed to the accounts of younger employees, who have many years to build up a retirement fund. What’s more, the money in the principal’s account eventually may be rolled over into an IRA, tax-free, for ongoing control over investment decisions and distributions. Note: Even if your company already has a defined contribution plan such as a 401(k), it may be able to establish a defined benefit plan as well.

hire short-term workers. Hiring individuals who become long-term employees probably will be better for the firm, in terms of business results, but these workers eventually may be entitled to large payouts from the plan.

Overall, there is more to a small-company defined benefit plan than large tax-deductible contributions for business owners.

Reprinted from CPA Client Bulletin. n

Did You Know?

Proceed with Care Before jumping into a defined benefit plan, business owners should consider the drawbacks. These plans can be extremely expensive to administer.

You must hire an actuary or a third-party administrator to calculate how much to contribute annually.

What’s more, your company must continue to make the required payments to the plan, even in a down year, and underfunding might trigger IRS penalties.

Other rules and regulations apply to defined benefit plans.

In addition, some defined benefit plans may be structured so that employees who don’t work for a specified number of years forfeit their benefits. This can create incentives for the company’s principals to

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www.lorussocorp.com

FEBRUARY, 2017

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

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

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

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Equal Opportunity/Affirmative Action Employer

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Advertisers’ Index APJ Equipment Corp..................................................... 19 ATS Equipment, Inc. .................................................... 34 Acme Shorey Precast Co., Inc...................................... 14 Adler Tank Rentals.......................................................... 7 Aggregate Industries - N.E. Region.............................. 62 American Shoring, Inc.................................Ins. Back Cvr. Aon Construction Services Group................................ 41 Boro Sand & Stone Corp.............................................. 68 Brennan Consulting...................................................... 62 Dennis K. Burke, Inc..................................................... 49 C&S Insurance Agency................................................. 16 ConConn....................................................................... 12 Concrete Systems, Inc.................................................. 38 Dagle Electrical Construction Corp............................... 18 Darmody, Merlino & Co., LLP........................................ 65 Dedham Recycled Gravel............................................. 66 DeSanctis Insurance Agency, Inc. ............................... 56 Dig Safe System, Inc..................................................... 68 The Driscoll Agency ..................................................... 69 EJ.................................................................................. 46 Eastern Insurance Group, LLC....................................... 4 Eastern States Insurance Agency, Inc.......................... 59 Eastpoint Lasers, LLC................................................... 62 T. L. Edwards, Inc.......................................................... 21 Equipment4Rent........................................................... 13 Ferguson Waterworks................................................... 56 L. Guerini Group, Inc..................................................... 68 HD Supply Const. & Industrial White Cap...................... 6 HD Supply Waterworks................................................... 2 A. H. Harris Construction Supplies............................... 64 Hinckley Allen LLP........................................................ 10 John Hoadley & Sons, Inc............................................. 27 JESCO.......................................................................... 54 Kenworth Northeast.......................................................11 P. A. Landers, Inc.......................................................... 41 Lawrence-Lynch Corp..................................................... 9 Lorusso Corp................................................................. 71 Lorusso Heavy Equipment, LLC................................... 24 MBO Precast, Inc.......................................................... 50 Mass Broken Stone Company...................................... 65 Milton CAT....................................................................... 8 Norfolk Power Equipment, Inc...................................... 60 North American Crane & Rigging LLC.......................... 22 North East Shoring Equipment, LLC............................. 70 Ocean State Oil............................................................. 66 Palmer Paving Corp...................................................... 17 E. H. Perkins Construction Co., Inc.............................. 72 Podgurski Corp............................................................. 59 E. J. Prescott, Inc....................................... Ins. Front Cvr. Rain For Rent-New England......................................... 26 Read Custom Soils ...................................................... 64 Ritchie Bros. Auctioneers............................................. 58 Rogers & Gray Insurance............................................. 36 Schmidt Equipment, Inc.....................................Back Cvr. Scituate Concrete Products Corp................................. 28 Scrap-It, Inc................................................................... 51 Shea Concrete Products, Inc. ...................................... 48 Smith Print..................................................................... 66 Southern Redi-Mix Corporation.................................... 60 Starkweather & Shepley Ins. Brokerage, Inc................ 54 Systems Support Corporation...................................... 60 Ti-SALES, Inc. .............................................................. 67 Tonry Insurance Group, Inc.......................................... 64 Triumph Modular........................................................... 13 United Concrete Products............................................. 25 United Rentals Trench Safety....................................... 44 Webster One Source..................................................... 40 C. N. Wood Co., Inc. .................................................... 52 Woodco Machinery, Inc................................................ 20

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

FEBRUARY, 2017

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

Our staff is waiting for your call with professional advice to recommend the best specific product for your project.

Field service support and supervision available with on site assembly and take down.

Inquire about our Competent Person, Confined Space & OSHA 10 training classes.

All systems are manufactured in the USA.

207 Lake Street, Newburgh, NY 12550

1.800.407.4674 www.americanshoring.com E-Mail us at

sales@americanshoring.com In New England

SALES • RENTALS • SERVICE REPAIRS • TRADE-INS RECERTIFICATION

American Shoring of Massachusetts, Inc.

226 Cherry Street Shrewsbury, Mass 01545

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

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

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

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