Construction Outlook January 2018

JAN | 2018 A PUBLICATION OF THE UTILITY CONTRACTORS’ ASSOCIATION OF NEW ENGLAND, INC.

OSHA’s Top 10 Most Cited Violations for FY2017

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

Years of Excellence 1954-2018

JANUARY, 2018

IN THIS ISSUE

OFFICERS President RICHARD PACELLA, JR. R. M. Pacella, Inc.

President-Elect MARCELLA ALBANESE

3 President’s Message:

Continued Progress on the Horizon in 2018

5 Legislative Update:

• Groups Weigh in with Support for Legislation Creating Cape Cod Water Protection Trust • Long Discussed Health Care Assessment to Impact Employers in 2018 • MassDOT Continues to Work to Upgrade Online Dashboard for Road Conditions • Governor Files Road Safety Bill; Initial Committee Takes Swift Action • News in Brief

Albanese Brothers, Inc.

Treasurer RYAN McCOURT

McCourt Construction Company

Secretary BRIAN COONEY

C. C.Construction Inc.

BOARD OF DIRECTORS GREG ANTONELLI GTA Co., Inc.

VINCENT BARLETTA

Barletta Heavy Division

TONY BORRELLI

Celco Construction Corp.

BEN CAVALLO

C&S Insurance Agency

ANDREW DANIELS J. Derenzo Co.

GREG FEENEY

Feeney Bros. Utility Services

JERRY GAGLIARDUCCI

15 MassDEP Releases DRAFT CY2018 Clean Water & Drinking Water SRF Lists Totaling Over $610.5 Million 29 Under the Hard Hat with UCANE’s Officers & Board Members: Q&A with UCANE Board Member Marco Gioioso (P. Gioioso & Sons, Inc.)

30 Thomas Descoteaux, Senior Vice President at the R. H. White Companies Received the 2017 Kenneth O. Hodgston Distinguished Service Award 33 UCANE’s 2018 Scholarship Applications Now Available 34 Exploring a Water System from Mountain Reservoir to Bathroom Tap 41 Legal Corner: Minimum Experience Requirements

MIKE GORMAN

43 44 49 53

BILL LEONARD

57 UCANE’s Safety Corner:

Gagliarducci Construction, Inc.

NICK GAMACHE

Rain for Rent - New England

MARCO GIOIOSO

P. Gioioso & Sons, Inc. E. J. Prescott, Inc. Aqua Line Utility, Inc.

AL MORTEO

FED. CORP.

JOHN OUR

Robert B. Our Co., Inc.

JOSEPH PACELLA

RJV Construction Corp.

PAUL SCENNA

Albanese D&S, Inc.

CHRIS VALENTI

GVC Construction, Inc.

KEN VOGEL

WES Construction Corp.

DAVID WALSH

Pawtucket Hot Mix Asphalt

ANNE KLAYMAN

Executive Director

UCANE’s 7th Annual Appreciation Night Trade Show OSHA’s Top 10 Most Cited Violations for FY2017 OSHA Fact Sheet: Control of Silica Dust in Construction Spotlight on Cape Cod:

Capital Plan Details Projects Totaling $37M 5 Steps to Confined Space Safety

61 Massachusetts Municipal Association News: Experts Forecast Solid Tax Growth for Fiscal 2019

63 Financial Management:

• Investing in 2018: Dividend Stocks • Investing in 2018: Defensive Funds • Small Companies Need Plans for Natural Disasters

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

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Continued Progress on the Horizon in 2018 As 2018 begins, I am honored to take over as UCANE President and would like to thank our membership for their vote of confidence. It has been a privilege for me to serve on the Board of Directors, and then move up the ladder these past few years. I look forward to the opportunity to continue the progress made by our past Presidents.

I take great pride in working in our industry and helping to provide safe and clean water for the residents of Massachusetts.

T

he New Year began with the worst cold-snap in 100 years. While few people enjoy these conditions, the record cold produced a constant stream of water main breaks across the state.

These breaks are extremely disruptive and cost businesses and municipalities millions of dollars. Many of these breaks would not have happened if cities and towns had the resources to repair or replace these old pipes. These breaks serve as a reminder of how crucial water infrastructure is to our safety and economic well-being.

MassDEP recently released its draft Intended Use Plan (IUP), which is a preliminary list of approved water infrastructure projects using funds financed through the Clean Water Trust. The draft list is encouraging, with several new projects potentially going out to bid in 2018 (See draft list on page 15).

Many of them still have to be approved at the local level, and one of my priorities is to continue to build relationships and partner with municipal officials to make these projects come to fruition.

At the state level, we will continue to meet and work with legislators, Governor Baker, Lt. Governor Polito, and members of their Administration to strongly advocate for additional monies for water infrastructure funding to address our state’s $18 to $21 billion funding gap. We will also continue to work to defeat and mitigate the impact of legislation that creates overly burdensome regulations and additional costs, that will ultimately be felt by taxpayers.

JANUARY, 2018

In Washington, while there continues to be delay, there is still hope of a large infrastructure bill being considered in 2018. As a founding member of the national Clean Water Construction Coalition (CWCC), we will maintain a strong presence on Capitol Hill and will work with our congressional delegation to ensure that additional appropriations for the State Revolving Fund (SRF) is part of the bill and advocate for its passage.

As a member of UCANE, I have enjoyed its benefits and the opportunity to give back to our industry.

While we have thriving membership, I believe there are many more prospective members out there performing our work who should be joining our ranks. I would encourage our members to identify other businesses that you work with every day, either contractors or possible associate members, and encourage them to become a fellow proud member of UCANE. I would like to take a moment to thank our immediate Past President Paul Scenna, as well as our outgoing Board Members for their service, dedication, and commitment to UCANE. I also look forward to working with my fellow Officers and Board Members as UCANE continues to get our message out, to our elected officials and others, that infrastructure starts below the ground.

And lastly, I would like to wish you and your families a healthy and happy New Year. I am excited to work with our Officers, Board of Directors, the UCANE staff, and the entire membership to make 2018 a productive and successful year. n

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Mark Molloy, Esq., Lynch Associates, Inc.

Groups Weigh in with Support for Legislation Creating Cape Cod Water Protection Trust

A

s previously reported in Construction Outlook magazine, when the Massachusetts Water Infrastructure Finance Commission found that the Commonwealth faces a $21 billion funding gap and the Massachusetts Auditor’s Division of Local Mandates determined the funding gap to be approximately $18 billion, both reported that Cape Cod and the Islands have an estimated shortfall of $4 billion to $6 billion. As such, one third of the Commonwealth’s $18 billion to $21 billion water infrastructure needs are within Cape Cod and the Islands. For a region so dependent on water – whether to fuel its tourism, economic development, or simply meet its every day residential needs – it is largely thought to be an unsustainable burden.

Accordingly, Senator Julian Cyr, along with his Cape and Island colleagues in the House and Senate, filed Senate Bill 2163 to establish the framework for moving forward to steer the region’s water infrastructure response. In filing the legislation, Senator Cyr emphasized that Cape Cod and the Islands, because of Cape Cod’s sole source aquifer, geographic configuration, and extensive inter-municipal nitrogen pollution, needs a regional entity to oversee the region’s water infrastructure financing needs. The proposed legislation does not create a new Massachusetts Water Resources Authority nor replace the vital work of the Massachusetts Clean Water Trust. Instead, the legislation simply ensures that municipalities on Cape Cod and the Islands work in partnership – through shared decision-making and resource allocation – that focuses exclusively on water infrastructure. In particular, it is hoped that the to-be-created “Cape Cod Water Protection Trust” will act as the conduit for focusing the region’s water infrastructure efforts as it follows through on the recently updated Section 208 Plan.

Senator Cyr’s legislation, which is currently before the Joint Committee on the Environment, Natural Resources and Agriculture, was heard by the Committee

JANUARY, 2018

in late November. UCANE, along with six other members of the Water Infrastructure Alliance, submitted written testimony in support of the legislation. The testimony stated, in part, that: “We encourage further discussion with stakeholders, including the Clean Water Trust, to ensure the proposed bill works in concert with current funding mechanisms. We also recognize that the creation of this fund is not a panacea for solving Cape Cod and the Islands’ water infrastructure needs. However, if implemented as intended, the Cape Cod Water Protection Trust will act as the conduit for focusing the region’s water infrastructure efforts, as it complies with the recently updated Section 208 Plan.”

Solving the water infrastructure funding gap on Cape Cod and the Islands will not happen overnight.

However, without legislation such as SB1263, Cape Cod and the Islands will continue to struggle with their water infrastructure needs. Costs will continue to grow and the potential for legal action will increase. Given that the investment in water infrastructure has been shown to improve public health, the environment, as well as support long- and short-term economic development, now is the time to implement a flexible, regional approach for addressing this vitally important region’s water infrastructure needs.

The Joint Committee on the Environment, Natural Resources and Agriculture has until February 7, Joint Rule 10 Day, to act on the legislation. Other signers to the letter included the Massachusetts Water Works Association, the New England Water Works Association, the Cape Cod Chamber of Commerce, the Sandwich Economic Initiative Corporation, the American Council of Engineering Companies of Massachusetts and the New England Water Environment Association.

To review this legislation, please visit: https:// malegislature.gov/Bills/190/S2163. continued on page 7

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Legislative Update continued from page 5

A

Long Discussed Health Care Assessment to Impact Employers in 2018

s many may recall, the Massachusetts House of Representatives, Massachusetts Senate, and Governor Charlie Baker had a vocal and continuing debate about how to address the growing costs of the state’s MassHealth program during the debate over the FY18 budget. Since approximately $16.4 billion of the Commonwealth’s $40 billion budget is comprised of MassHealth costs, the FY18 budget proposal became a battleground for figuring out how to begin to pay for MassHealth’s growth.

In answer, the FY18 budget included an increase in the Employer Medical Assistance Contribution (EMAC) assessment for employers while, at the same time, it froze the unemployment insurance rates for next year.

The view was that this essentially shifts $200 million from the UI program to the EMAC program without reducing the UI fund. While the Governor objected and sent back a variety of MassHealth reforms that the legislature committed to further review, for the time being, he eventually signed this assessment. This new program increases the EMAC contribution rate for all employees, statewide (i.e., $51 to $77 per employee). An additional annual twotiered assessment on any employees receiving health in-

surance through public programs will also be assessed (>$750 per employee). The Governor and legislature recently agreed to legislation relative to an employer survey for purposes of determining whether an employer must pay the additional assessment.

The mandated changes, which became effective January 1, are based on wages paid at the end of the first week in January. According to the Massachusetts Department of Revenue, however, employers will not receive their first bill until April. The new health care payments, which are scheduled to end after 2019, will help to offset the costs for employees on subsidized coverage while longer-term reforms are established and implemented. According to the Baker Administration, the rate of commercial coverage in Massachusetts has declined by more than 450,000 people since 2011, while MassHealth enrollment grew by over 500,000 individuals during the same time period.

Expect to hear more about this issue, as well as many other health insurance and health care related matters, during the remainder of the 2017-2018 legislative session as the House and Senate reconcile competing legislation designed to reduce health care costs.

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Legislative Update continued from page 7

MassDOT Continues to Work to Upgrade Online Dashboard for Road Conditions

T

he Massachusetts Department of Transportation (MassDOT) recently touted its continued upgrade to the online pothole dashboard that provides information to the public regarding pothole locations and size, the number of potholes filled, the type of material used, and the total approximate cost.

According to a press release from the agency, MassDOT upgraded the pothole dashboard in 2017 to indicate if the repair was made as a result of public feedback (indicated by a check-mark). Although the agency declares it is not possible to track all repairs and activity, data collected shows that MassDOT has made at least 8,500 pothole repairs in 2017 using approximately 412 tons of material.

The pothole repair dashboard provides transparency to the public on the use of state resources, creates efficiency by introducing technology to front line workers, and adds to the data available for maintenance and capital planning.

MassDOT is attempting to use this new data group when making capital investment decisions to focus resources on roads and areas that require consistent pothole repair and manage our assets in a cost-effective manner that prevents emergency pothole repairs.

During calendar year 2017, MassDOT expanded the

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program so that it includes information regarding potholes in all six highway districts after it was previously piloted in areas of Central and Western Massachusetts.

A new online viewer is currently under development and will combine pothole repair locations, pavement condition data, and planned or paving projects underway to provide a more complete picture of MassDOT pavement management practices.

The pothole repair program also includes a field application through which MassDOT road crews can input data outlining the date, time, cost, and materials used to repair potholes. The data collection structure uses MassDOT’s GIS systems to establish an interactive webpage.

Once entered, that information then becomes viewable in real-time to the public via the online dashboard.

Potholes can also be reported to MassDOT by calling 857-DOT-INFO (857-368-4636) or 877-MADOT-GOV (877-623-6846) or by contacting MassDOT online. Potholes can also be reported to the State or local police who will contact MassDOT with the report.

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Legislative Update continued from page 9

G

Governor Files Road Safety Bill; Initial Committee Takes Swift Action

overnor Charlie Baker filed legislation at the end of November 2017 to lower speed limits in construction zones. Under current law, the Massachusetts Department of Transportation can suggest a speed reduction in work zones, but that does not carry the weight of a regulatory limit. The Governor's bill would introduce a variable speed limit, allowing MassDOT to reduce speed limits when workers are present and return to normal speeds when there is no construction work ongoing. According to MassDOT officials, there were 96,626 work zone crashes nationwide with 27 percent of those resulting in injury or death in 2015.

For its part, the Joint Committee on Transportation scheduled the legislation (Senate Bill 2217) for a public hearing shortly after its submission. UCANE submitted written testimony in support of the Governor’s legislation. In particular, UCANE noted that: “As you may know, speeding is the primary cause of work zone crashes. MassDOT has historically suggested reducing speed limits in these areas, yet they do not have the authority to enforce these suggestions.

Granting authority to the MassDOT to set speed lim-

its and further, the authority, to enforce them through increased fines will not only improve safety of the workers in these zones, but drivers’ safety as well. As demonstrated by a variety of state and national studies, reducing the speed limit in and around work zones can have a significant impact in safeguarding work zone contractors. (See “Improving Work Zone Safety Through Speed Management”, Sommer, N. (June 2013); see also “Guidelines on Managing Speeds in Work Zones”, National Work Zone Safety Campaign 2017 by the American Road and Transportation Builders Association (ARTBA)). This is a common-sense piece of legislation that will save lives.”

The Joint Committee on Transportation released the legislation with a favorable report on December 26, 2017. The legislation, which was referred to the Senate Committee on Ways and Means, was not amended despite the Committee’s interest that certain identifiable standards be attached to any proposed speed limit adjustments. To review the language of the legislation, please visit: https://malegislature.gov/Bills/190/S2217.

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News in Brief • Smizik to Retire. Longtime State Representative Frank Smizik of Brookline recently announced his intention to retire at the end of his current term. One of the most accessible legislators within the State House, Representative Smizik is currently the House Chairman of the Committee on Global Warming. The former House Chairman of the Joint Committee on the Environment, Natural Resources and Agriculture, Chairman Smizik was a progressive champion for environmental and labor issues as well as an ardent advocate for all things Brookline.

It is anticipated that there will be a contested election to replace Smizik, who served in the Massachusetts legislature since 2001.

Staff since 2015, Cooper also served as Assistant Secretary for land protection and park development at the Executive Office of Energy and Environmental Affairs and as the Chief of Staff and Director for Operational Analysis at the Department of Conservation and Recreation. Deputy Commissioner Cooper holds a B.A. in political science from Middlebury College in Vermont and a Master’s of Public Administration from Syracuse University’s Maxwell School.

• House Speaker Staffing Changes. The Office of the Speaker of the House announced key staff changes in December. Seth Gitell, the Speaker’s Director of Communications, will become the new Chief of Staff as Jim Eisenberg leaves the office for the private sector. In addition, Richard Gould, formerly the Legislative Director to the House Minority Leader Brad Jones, will assume the same position within the Speaker’s Office as Toby Morelli turns to the private sector as well. Chris Eicher, currently a policy analyst for the Speaker, will become his Chief Policy Advisor and General Counsel while the position of Deputy Chief of Staff will be assumed by Whitney Ferguson. n

• Crighton Likely to be Elected to Senate.

Representative Brendan Crighton will be the only candidate on the ballot when voters look to replace Senator Tom McGee in the Massachusetts Senate. Senator McGee, who was sworn in as the Mayor of the City of Lynn, resigned his seat on January 2. Crighton, who worked for Senator McGee and eventually rose to be his Chief of Staff, successfully ran for State Representative after that tenure. Representative Crighton, a young, hardworking Democrat from Lynn, has been known for his advocacy on MBO Precast Inc. a number of different is4 Marion Drive • Carver, MA 02330 sues ranging from labor T: 508-866-6900 • F: 508-866-5252 and transportation to health www.MBOPrecast.com care.

• Cooper Named DEP Deputy Commissioner. Massachusetts Department of Environmental Protection (DEP) Commissioner Martin Suuberg recently announced that Stephanie Cooper will serve as Deputy Commissioner for Policy and Planning at the agency.

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MassDEP Releases DRAFT CY2018 Clean Water & Drinking Water SRF Lists Totaling Over $610.5 Million Charles D. Baker Governor Karyn E. Polito Lieutenant Governor

T

Over $484 Million Offered for Clean Water SRF in 2018

Matthew A. Beaton Secretary Martin Suuberg Commissioner

he Massachusetts Department of Environmen-

proximately $484 million to finance clean water projects across the Commonwealth. Approximately $442 ent the Draft 2018 Intended Use Plan (IUP), million will fund 39 new construction projects, and an which details the projects, borrowers and amounts additional $21.3 million will be allocated towards fundTo All Interested Parties: that will be financed through the Clean Water State ing 5 previously approved multi-year projects. $3 milRevolving Fund (CWSRF) loan program. The CWSlion has been allocated to the emergency The Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the set-aside RF is a joint federal-state financing loan program that account, and $5 million will be directed to the CommuFinal 2016 Intended Use Plan which details projects, borrowers and amounts that will be provides subsidized interest rate (IUP), loans to improve or the nity Septic Management Program to remediate failed financed through the Clean Water State Revolving Fund (CWSRF) loan program. The CWSRF is a protect water quality in the Commonwealth. septic systems in participating communities. An addijoint federal-state financing loan program that provides subsidized interest rate loans to improve or As noted in Table 1, Massachusetts is offering aptional $12.1 million will fund 13 planning projects. tal Protection January 26, 2016 (MassDEP) is pleased to pres-

protect water quality in the Commonwealth.

1 $414 million to finance clean water As noted in Table 1, Massachusetts is offeringTable approximately TABLE 1 projectsWater across theState Commonwealth.

Approximately million will fund 35Intended new construction Clean Revolving Fund$380 CY2018 Draft Use Plan CLEAN WATER STATE REVOLVING FUND projects and an additionalCalendar $15 million will be allocated towards funding 9 previously approved Year 2018 CWSRF Draft Intended Use Plan NEWtoPROJECTS multi-year projects. $2 million has been allocated the emergency set-aside account, and $3

2018 NEW PROJECTS million will be directed to the Community Septic Management Program to remediate failed septic Rating Applicant SRF ID Project

Project Cost IUP Cost An additional $13.8 million will fund 15 Project planning Rating systems Applicantin participating communities.

SRF ID Project Costprojects. 2018 IUP Cost 119 HARWICH (PF)

4424 Harwich Sewer Collection System - Phase 2

108 NANTUCKET

4418 Surfside Road Area Sewer System Improvements

105 LAWRENCE (PF)#

4427 Sewer and Drainage Improvements

$20,280,000

$20,280,000

$5,100,000

$5,100,000

$14,267,267

$14,267,267

The Water Resources Reform and Development Act of 2014 (WRRDA) amended the Clean Water 119 Act TAUNTON (PF)#in important changes 4417 2019-2020 Sewer &Program Drain Improvements $6,000,000The $6,000,000 resulting to the CWSRF that will affect most borrowers. areWWTP the requirements for borrowers maintain a Fiscal 119 primary MARION #changes to the program 4435 & Collection System Improvementsto develop and$25,200,000 $25,200,000 Sustainability Plan, which is similar to an asset management plan and a certification that the cost and 113 HULL (PF)# 4445 Fiscal Sustainability Plan and CMOM Upgrades $8,257,000 $8,257,000 effectiveness of the project has been evaluated and that the project maximizes water efficiency and 109 energy FALL RIVER (PF) CSOIUP Abatement Program - City PierWRRDA requirements $25,200,000 conservation.

The body4432 of the discusses these new in greater $18,200,000 109 detail.

CHATHAM 4430 Phase 1D - Chatham/Harwich Regionalization $7,100,000 $7,100,000 The United States Environmental Protection Agency (EPA) has not yet determined the exact 2016 107 REVERE (PF) 4439 Illicit Connection & Sump Pump Removal Program $2,000,000 SRF grant allocations to the states.

Based on the overall federal appropriation, MassDEP expects to $2,000,000 an estimated $44 million grant toProgram subsidize the CWSRF program. Under the Fiscal $9,200,000 107 receive FALL RIVER (PF) 4420federal CSO Abatement -- Middle Street $9,200,000 Year 2016 Omnibus Appropriations Bill, Congress is requiring that at least 10% of the federal grant$4,700,000 107 REVERE (PF)# 4440 Phase IX Construction - I/I, IDDE, P.S. & Drainage $4,700,000 be used to fund “green infrastructure”. The 2016 Final IUP lists 16 new “green infrastructure” 106 SAUGUS (PF)# 4448 Comprehensive Sewer System Rehab Sub-System $1,901,714 $1,901,714 construction projects. The exact monetary value of the green portion of these projects will be PS-4 determined when project applications are submitted but are expected to be well in excess of 10% of 105 SPRINGFIELD WATER AND 4455 York St. Pump Station & Connecticut River Crossing $81,013,400 $50,000,000 the federal grant. (PF) SEWER COMMISSION This information is available in alternate format. Call Michelle Waters-Ekanem, Diversity Director, at 617-292-5751. TTY# MassRelay Service 1-800-439-2370 105 NANTUCKET 4419 Phase 2 Surfside WWTF Improvements $7,600,000 $7,600,000 MassDEP Website: www.mass.gov/dep

101 FRAMINGHAM (PF)

4414 Worcester Road Pumping Station Elimination Project Printed on Recycled Paper

$23,500,000

$23,500,000

100 FALL RIVER (PF)#

4454 President Avenue Sewer Pump Station Replacement

$4,300,000

$4,300,000

4416 Underdrain Area Sewer Rehabilitation

$2,700,000

$2,700,000

94 NORWOOD (PF) 93 PITTSFIELD (PF)

4458 Wastewater Treatment Plant Nutrient Removal

92 FALL RIVER (PF)

4447 Cress Brook Drainage Improvements

89 NEW BEDFORD (PF)

JANUARY, 2018

87 FALL RIVER (PF) 82 FALL RIVER (PF)

4431 Wastewater Collection System Improvements

continued on page 17 $74,029,000 $50,000,000 $7,455,200

$7,455,200

$36,400,000

$36,400,000

$723,000

$723,000

$1,020,000

$1,020,000

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 4456 Hyacinth Street Drainage Improvements

4451 Hyacinth Street (South) Drainage Improvements

15

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105 SPRINGFIELD WATER AND SEWER COMMISSION (PF)

4455 York St. Pump Station & Connecticut River Crossing

$81,013,400

$50,000,000

105 LAWRENCE (PF)#

4427 Sewer and Drainage Improvements

$14,267,267

$14,267,267

$7,600,000

$7,600,000

$23,500,000

$23,500,000

105 NANTUCKET continued

DEP/SRF

4419 from page 15

101 FRAMINGHAM (PF)

Phase 2 Surfside WWTF Improvements

4414 Worcester Road Pumping Station Elimination Project

NEW PROJECTS (cont.)

100 FALL RIVER (PF)# 4454 President Avenue Sewer Pump Station Replacement $4,300,000

Rating Applicant SRF 94 NORWOOD (PF) 4416 ID Project Underdrain Area Sewer Rehabilitation

$4,300,000 2018

Project Cost $2,700,000

IUP Cost $2,700,000

$74,029,000

$50,000,000

$7,455,200

$7,455,200

$36,400,000

$36,400,000

$723,000

$723,000

93 PITTSFIELD (PF)

4458 Wastewater Treatment Plant Nutrient Removal

92 FALL RIVER (PF)

4447 Cress Brook Drainage Improvements

89 NEW BEDFORD (PF)

4431 Wastewater Collection System Improvements

87 FALL RIVER (PF)

4456 Hyacinth Street Drainage Improvements

82 FALL RIVER (PF)

4451 Hyacinth Street (South) Drainage Improvements

$1,020,000

$1,020,000

81 WINTHROP (PF)#

4423 Town Center - Sewer and Drainage Improvements

$4,931,500

$4,931,500

80 NORTON (PF)

4421 West Main Street Sewer Extension Project

$3,320,000

$3,320,000

76 EASTON

4449 Easton Five Corners Sewer

$9,618,000

$9,618,000

75 BROCKTON (PF)

4436 WWTP Upgrade

$7,800,000

$7,800,000

67 BILLERICA (PF)

4452 WWTF & Pump Station Upgrades

$7,239,000

$7,239,000

66 MWRA #

4446 Nut Island HW Odor Control & HVAC - Contract 7548

$30,109,200

$9,066,624

66 BILLERICA (PF)

4442 Sewer Contracts 37 & 38

$25,661,428

$25,661,428

66 SESD

4450 Primary Clarifier Concrete Restoration

$9,321,000

$9,321,000

64 MARTHA'S VINEYARD AIRPORT COMMISSION (PF)

4426 Martha's Vineyard Airport WWTF Upgrades

$1,908,750

$1,908,750

64 ACTON

4453 West Acton Sewer Extension ProjectVineyard Airport WWTF Upgrades $11,748,000$1,908,750 $11,748,000 64 MARTHA'S VINEYARD 4426 Martha's $1,908,750

66 SESD

66 SESD

4450 Primary Clarifier Concrete Restoration

4450 Primary Clarifier Concrete Restoration AIRPORT COMMISSION (PF)

61 SAUGUS (PF)# 64 MARTHA'S VINEYARD

AIRPORT COMMISSION (PF)

60 TYNGSBOROUGH 64 ACTON

61 SAUGUS (PF)# 56 PEPPERELL (PF)# 60 TYNGSBOROUGH

54 MWRA

56 PEPPERELL (PF)#

48 FALL RIVER (PF) 54 MWRA

35 MWRA 48 FALL RIVER (PF) 35 MWRA

34 GLOUCESTER (PF)# 34 GLOUCESTER (PF)#

TOTAL OF NEW PROJECTS

$9,321,000

$9,321,000

4444 Lincoln Avenue Pumping4453 Station Improvements West Acton Sewer Extension $1,908,750 Project $1,908,750

64 Vineyard ACTON Airport WWTF Upgrades 4426 Martha's

$1,072,500 $1,072,500 $11,748,000 $11,748,000

$556,392,512

(RE) - Potential Renewable Energy Projects

(PF) - Affordability Criteria

(RE) - Potential Renewable Energy Projects

$9,321,000

61 SAUGUS Lincoln Avenue Pumping Station Improvements $1,072,500 4422 Phase(PF)# 2 Middlesex Road4444 North $11,149,553$1,072,500 $11,149,553 4453 West Acton Sewer Extension Project $11,748,000 $11,748,000 60 TYNGSBOROUGH 4422 Phase 2 Middlesex Road North $11,149,553 $11,149,553 4444 Lincoln Pumping WWTF Station Improvements $1,072,500 $1,072,500 4438Avenue Pepperell Upgrade $4,542,000 $4,542,000 56 PEPPERELL (PF)# 4438 Pepperell WWTF Upgrade $4,542,000 $4,542,000 4422 Phase 2 Middlesex Road North $11,149,553 $11,149,553 4441 Dorchester Interceptor Sewer Renewal Contract 7279 $6,000,000$6,000,000 $6,000,000 54 MWRA 4441 Dorchester Interceptor Sewer Renewal Contract 7279 $6,000,000 4438 Pepperell WWTF Upgrade $4,542,000 $4,542,000 48 FALL RIVER (PF) Treatment Facility 4433 Wastewater Treatment Facility Improvements$39,000,000 $39,000,000 $8,200,000 $8,200,000 4433 Wastewater Improvements 4441 Dorchester Interceptor Sewer Renewal Contract 7279 $6,000,000 $6,000,000 35 MWRA 4428 North Low Service Sewer Sections 19, 20 & 21 Rehab $13,650,000 $13,650,000 4428 North Low Service Sewer Sections$39,000,000 19, 20 & 21 Rehab $13,650,000 $13,650,000 4433 Wastewater Treatment Facility Improvements $8,200,000 34 GLOUCESTER (PF)# 4415 Sewer PS Rehabilitations & FOG Mitigation $1,375,000 $1,375,000 4428 North Low Service Sewer Sections 19, 20 & 21 Rehab $13,650,000 $13,650,000 4415 Sewer PS Rehabilitations & FOG Mitigation $1,375,000 $1,375,000 TOTAL OF NEW PROJECTS $556,392,512 $442,507,536 4415 Sewer PS Rehabilitations & FOG Mitigation $1,375,000 $1,375,000 (Count: 39) (Average Rating: 85.36) $442,507,536 $556,392,512 $556,392,512 $442,507,536

TOTAL OF PROJECTS TOTAL OFNEW NEW PROJECTS (PF) - Affordability Criteria (Count:(Count: 39) (Average Rating: 85.36) (Count: 39) (Average Rating: 85.36) 39) (Average Rating: 85.36)

(PF) - Affordability Criteria

$9,321,000

$442,507,536

continued on page 19

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

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

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

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JANUARY, 2018

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

AND STATUTORY PROJECTS

SRF SRF IDID ProjectProject

4150 DITP Asset Protection Phase 3

$61,600,000

$3,000,000

MWRA

4117 Facility Asset Protection

$22,526,969

$3,036,709

MWRA

4118 DITP Asset Protection Phase 2

$60,100,000

$3,000,000

MWRA

3981 Remote Headworks Upgrade

$158,818,264

$6,000,000

MWRA

2885 Wastewater Treatment Plant and Sewer Improvements

$56,224,235

$6,246,667

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

Applicant Applicant

$359,269,468

$21,283,376

$359,269,468

$21,283,376

Project Cost Project Cost

IUPCost Cost 2018 2018 IUP

MassDEP PRIORITY PROJECTS

MassDEP PRIORITY PROJECTS

SRF ID ID Project SRF

COMMUNITY SEPTIC MANAGEMENT PROGRAM

3850 Community Septic Management Program

$5,000,000

$5,000,000

EMERGENCY SRF SET-A-SIDE

2977

$3,000,000

$3,000,000

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

2018 IUP IUPCost Cost 2018

MWRA

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

Project Cost Project Cost

(Count: 2)

$8,000,000 $8,000,000 $8,000,000 $8,000,000 continued on page 21

PLANNING PROJECTS Applicant

SRFAIDGOOD Project IDEA TO PROTECT YOUR BIGGEST Project Cost ...IT’S ALWAYS ASSET

BROCKTON

4381 2018 Sewer System Evaluation Survey Program

COHASSET

$4,000,000

$4,000,000

4385 Town of Cohasset CWMP- Planning

$450,000

$450,000

FALL RIVER

4391 Stafford Square Collection System Evaluation

$400,000

$400,000

FALL RIVER

4380 Fall River Asset Management

$500,000

$500,000

HULL

4389 SSES

$1,306,200

$1,306,200

HULL

4388 WWTF Reliability Centered Maintenance Assessment

$355,000

$355,000

HULL

4383 Facility Plan and Resiliency Plan Update

$435,300

$435,300

NEW BEDFORD

4382 WWTP Facilities Planning

$2,500,000

$2,500,000

NORWOOD

4379 Stormwater Planning

$250,000

$250,000

REVERE

4387 Phase X Field Investigations - I/I and IDDE

$1,000,000

$1,000,000

REVERE

4386 Illicit Connection and Sump Pump Investigation

$500,000

$500,000

Providing TYNGSBOROUGH

adequate butI-Ikeeping 4390coverage Tyngsborough Program cost at a minimum, and working $250,000with YOU to manage the risks associated with running a construction company 4384 IWRMP $150,000

$250,000

WESTPORT

$150,000

TOTAL OF PLANNING PROJECTS (Count: 13)

2018 IUP Cost

$12,096,500

$12,096,500

Peter Jacavone • Pjacavone@Starshep.com Robert Barresi • Rbarresi@starshep.com 401-435-3600 TOTAL OF DRAFT INTENDED USE PLAN $935,758,480 $483,887,412 www.starshep.com

JANUARY, 2018

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

19

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“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

JANUARY, 2018

EMERGENCY SRF SET-A-SIDE

2977

TOTAL OF MassDEP PRIORITY PROJECTS (Count: 2)

$3,000,000

$8,000,000

$8,000,000

DEP/SRF continued from page 19 PLANNING PROJECTS

PLANNING PROJECTS

Applicant Applicant

SRFIDIDProject Project SRF

BROCKTON

4381 2018 Sewer System Evaluation Survey Program

COHASSET

Project Cost Project Cost

2018 IUP Cost IUP Cost 2018

$4,000,000

$4,000,000

4385 Town of Cohasset CWMP- Planning

$450,000

$450,000

FALL RIVER

4391 Stafford Square Collection System Evaluation

$400,000

$400,000

FALL RIVER

4380 Fall River Asset Management

$500,000

$500,000

HULL

4389 SSES

$1,306,200

$1,306,200

HULL

4388 WWTF Reliability Centered Maintenance Assessment

$355,000

$355,000

HULL

4383 Facility Plan and Resiliency Plan Update

$435,300

$435,300

NEW BEDFORD

4382 WWTP Facilities Planning

$2,500,000

$2,500,000

NORWOOD

4379 Stormwater Planning

$250,000

$250,000

REVERE

4387 Phase X Field Investigations - I/I and IDDE

$1,000,000

$1,000,000

REVERE

4386 Illicit Connection and Sump Pump Investigation

$500,000

$500,000

TYNGSBOROUGH

4390 Tyngsborough I-I Program

$250,000

$250,000

WESTPORT

4384 IWRMP

$150,000

$150,000

$12,096,500 $12,096,500

$12,096,500 $12,096,500

TOTAL OFTOTAL PLANNING PROJECTS OF PLANNING PROJECTS (Count: 13)

$3,000,000

(Count: 13)

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

$935,758,480

$483,887,412

$935,758,480 continued$483,887,412 on page 23

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DEP/SRF continued from page 21

T

$126.5 Million Offered for Drinking Water SRF in 2018

he Massachusetts Department of Environmental Protection (MassDEP) is pleased to present the Draft 2018 Intended Use Plan (IUP), which lists the proposed projects, borrowers and amounts that will be financed through the Drinking Water State Revolving Fund (DWSRF) loan program. The DWSRF is a joint federal-state financing program that provides subsidized interest rate loans to protect public health by improving water supply, infrastructure systems, and protecting drinking water in the Commonwealth.

As noted in Table 1, Massachusetts proposes to offer $126.5 million to finance drinking water projects across the Commonwealth. Approximately $93 million will fund 22 new construction projects. An additional $30 million will be allocated towards funding 5 previously approved multi-year projects and $.25 million is allocated towards the Planning Project submitted. An additional $3 million will fund an emergency set-aside account.

Table 1 Drinking Water State Revolving Fund CY2018 DraftTABLE Intended Use Plan 1 DRINKING WATER STATE REVOLVING FUND Calendar Year 2018NEW DWSRF Draft Intended Use Plan PROJECTS

NEW PROJECTS Rating Applicant Rating Applicant

SRF ID SRF ID Project

Project

535.0

DARTMOUTH (PF)

4401 Action Plan to Reduce Total Trihalomethane Levels

535.0

BARNSTABLE (PF)

4393 Maher Treatment Facility Upgrade

435.0

BROCKTON (PF)

420.0

Project Cost Project Cost

2018 IUP Cost 2018 IUP Cost

$1,800,000

$1,800,000

$11,215,000

$11,215,000

4402 Water Pump Well and Clearwell Rehabilitation

$4,410,000

$4,410,000

FALL RIVER (PF)

4395 Phase 18 - Water System Improvements

$1,800,000

$1,800,000

415.0

MWRA

4409 Peabody Pipeline Section 109 Extension

$10,540,000

$1,000,000

415.0

MWRA

4406 Commonwealth Ave Pump Station Redundancy

$8,319,300

$2,000,000

415.0

HAVERHILL (PF)

4397 Phase 2 - Transmission Main Improvements

$8,928,500

$8,928,500

415.0

BILLERICA (PF)

4398 Water Treatment Plant Upgrades

$9,086,750

$9,086,750

415.0

TRI-TOWN WATER BOARD

4410 New Tri-Town Regional Water Treatment Plant

$48,200,000

$15,000,000

239.0

LAWRENCE (PF)#

4403 Water Infrastructure Improvements

$5,352,570

$2,500,000

230.0

LAWRENCE (PF)

4404 Distribution System Improvements

$27,475,863

$12,500,000

225.0

BROCKTON (PF)

4392 2019 Water System Improvements

$2,860,000

$2,860,000

225.0

TAUNTON (PF)

4394 2018 Water Main Improvements Project

$4,000,000

$4,000,000

225.0 * ADAMS FIRE DISTRICT (PF)

4400 Chemical Feed and SCADA upgrades

$750,000

$750,000

222.0

REVERE (PF)

4405 Oak Island Water Main Improvements

$3,000,000

$3,000,000

220.0

MWRA

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

$8,891,917

$1,000,000

220.0

MWRA

4411 North Low Service Water Sections 50 & 57 Rehab

$16,400,000

$1,000,000

219.0

SAUGUS (PF)#

4412 Water Meter Replacement

$3,900,000

$3,900,000

215.0

BILLERICA (PF)

4399 Water Main Replacement

$2,000,000

$2,000,000

215.0

WAYLAND

4407 Wayland 2018 Water Main Improvements

$700,000

$700,000

210.0 * SPENCER 2018 (PF) JANUARY, 210.0 * SOUTHAMPTON

continued on page 25

4413 Main Street Looping Water Main $2,389,175 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 4396 Southampton Water System Improvement Project

$1,500,000

$2,389,175 23 $1,500,000

230.0

LAWRENCE (PF)

4404 Distribution System Improvements

225.0

BROCKTON (PF)

4392 2019 Water System Improvements

225.0

TAUNTON (PF)

$2,860,000 $4,000,000

$4,000,000

Rating Applicant

Chemical Feed and SCADA upgrades

4405 Oak Island Main Improvements NEWWater PROJECTS (cont.)

REVERE (PF)

$12,500,000 DRINKING WATE Calendar Year 2017 $2,860,000

NEW PROJECTS

4394 2018 Water Main Improvements Project

DEP/SRF continued from(PF) page 23 4400 225.0 * ADAMS FIRE DISTRICT 222.0

$27,475,863

SRF ID Project

530.0 $750,000 NEW BEDFORD (PF) $750,000

4213 Lead Servic

530.0 WEBSTER (PF) $3,000,000

4212 Memorial Be

524.0

$3,000,000

WAREHAM (PF)(RE)

220.0 MWRA 4408 Connect Mains Rehab. of Sections 23, 24, and 47 $8,891,917 $1,000,000

2018 520.0 REVERE WATER DEPT (PF) Rating Applicant SRF ID Project

Project Cost IUP Cost 220.0 MWRA 4411 North Low Service Water Sections 50 & 57 Rehab $16,400,000 $1,000,000

4215 Maple Sprin

219.0

4188 Sys. Upgrad

518.0 * EASTHAM (PF)

SAUGUS (PF)#

4412 Water Meter Replacement

515.0 BARNSTABLE (PF) $3,900,000

215.0

BILLERICA (PF)

4399 Water Main Replacement

510.0

215.0

WAYLAND

4407 Wayland 2018 Water Main Improvements

440.0

$3,900,000

4413 Main Street Looping Water Main

210.0 * SOUTHAMPTON

4396 Southampton Water System Improvement Project

TOTAL OF NEW PROJECTS

BROCKTON (PF) $700,000

$700,000

NEW BEDFORD (PF)

4214 High Hill Res

415.0

BILLERICA (PF)

4196 Water Treat

$2,389,175

$2,389,175

$1,500,000

$1,500,000

TOTAL OF NEW PROJECTS (Count: 10) $183,519,075 $183,519,075

* - Small System

(RE) - Potential Renewable Energy Projects

$93,339,425 $93,339,425

* - Small System

(PF) - Affordability Criteria

(RE) - Potential Renewable Energy Projects Applicant Applicant

MassDEP PRIORITY PROJECTS

SRF ProjectProject SRFIDID

EMERGENCY SRF SET-A-SIDE

Project Cost Project Cost

2978

(Count: 1)

2018 IUP Cost 2018 IUP Cost

$3,000,000

TOTAL OFTOTAL MassDEP PRIORITY PRIORITY PROJECTSPROJECTS OF MassDEP

$3,000,000

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

(Count: 1)

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

continued on page 27

MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS Applicant

SRF ID Project

Project Cost

2018 IUP Cost

Don’t dig yourself into trouble...

MWRA

3160 NHS - Revere & Malden Pipeline

MWRA (RE)#

3972 Wachusett Aqueduct PS

NEW BEDFORD (PF)

4191 Large Meter & AMI Upgrade Program

NEW BEDFORD (PF)

4214 High Hill Reservoir Rehabilitation

The Perfect Excavation:

$9,614,000

$2,000,000

$60,500,000

$8,000,000

$6,400,000

$3,800,000

$22,350,000

$11,200,000

by hand when Pre-mark the location of intended Plant • Use caution and dig$18,909,204 4215 •Maple Springs Water Purification $4,909,204 excavation using white stakes, working within 18” of a marked facility. paint or flags.

• If a line is damaged, do not backfill.

TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS $117,773,204 $29,909,204 • In MA, ME, NH and RI, notify Dig Safe® Notify the affected utility company at least 72 hours in advance - not immediately if the facility, its protective (Count: 5) including weekends and holidays. coating, or a tracer wire is damaged.

WAREHAM FIRE DISTRICT (PF)(RE)

PLANNING PROJECTS Applicant REVERE TOTAL OF PLANNING PROJECTS

• In Vermont, notify Dig Safe® at least 48 hours in advance - not SRF ID Project including weekends and holidays.

4378 •Oak Island Water Main Improvements Notify non-member facility owners.

• Maintain the marks placed by underground facility owners.

(Count: 1)

Call TOTAL OF DRAFT INTENDED USE PLAN

• Call 911 if the damaged facility poses a risk to public safety.

Project Cost 2018 IUP Cost • Know your state’s excavation requirements.

Go to digsafe.com for $250,000 educational material $250,000 and current laws. $250,000 $250,000

before you dig. digsafe.com $304,542,279

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4216 Transmissio

440.0

TOTAL OF NEW PROJECTS (Count: 22) 22) (Average Rating: 312.5) (Count: (Average Rating: 312.5)

(PF) - Affordability Criteria

4209 Phase 2 of T

MILFORD WATER COMPANY 4201 Lead Servic $2,000,000 $2,000,000 (PF)

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MassDEP PRIORITY PROJECTS

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EMERGENCY SRF SET-A-SIDE 2978 EMERGENCY SRF SET-A-SIDE 2978 TOTAL OF MassDEP PRIORITY PROJECTS TOTAL OF MassDEP PRIORITY PROJECTS (Count: 1) DEP/SRF continued from page 25 (Count: 1)

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

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

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

AND STATUTORY PROJECTS Project Cost Project Cost Project Cost

MWRA 3160 NHS - Revere & Malden Pipeline MWRA 3160 NHS - Revere & Malden Pipeline MWRA (RE)# 3972 Wachusett Aqueduct PS MWRA (RE)# 3972 Wachusett Aqueduct PS NEW BEDFORD (PF) 4191 Large Meter & AMI Upgrade Program NEW BEDFORD (PF) 4191 Large Meter & AMI Upgrade Program NEW BEDFORD (PF) 4214 High Hill Reservoir Rehabilitation NEW BEDFORD (PF) 4214 High Hill Reservoir Rehabilitation WAREHAM FIRE DISTRICT 4215 Maple Springs Water Purification Plant WAREHAM FIRE DISTRICT 4215 Maple Springs Water Purification Plant (PF)(RE) (PF)(RE) TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS OF MULTI-YEAR CARRYOVER AND STATUTORY TOTAL OFTOTAL MULTI-YEAR CARRYOVER AND STATUTORY PROJECTSPROJECTS (Count: 5) (Count: 1) (Count: 5) PLANNING PROJECTS PLANNING PROJECTS PLANNING PROJECTS Applicant SRF ID Project Applicant SRF

Applicant SRF ID ID Project Project REVERE 4378 Oak Island Water Main Improvements REVERE 4378 Oak Island Water Main Improvements TOTAL OF PLANNING PROJECTS TOTAL OF PLANNING PROJECTS (Count: 1) TOTAL OF PLANNING PROJECTS (Count: 1) (Count: 1)

TOTAL OF DRAFT INTENDED USEDRAFT PLAN TOTAL OF INTENDED USE PLAN OF DRAFT USE PLAN Burke We Earn B 7.5 x TOTAL 5 9-16:Dennis K.INTENDED Burke 10/24/16 2:26 PM

Page 1

2018 IUP Cost

$9,614,000 $9,614,000 $60,500,000 $60,500,000 $6,400,000 $6,400,000 $22,350,000 $22,350,000 $18,909,204 $18,909,204

$2,000,000 $2,000,000 $8,000,000 $8,000,000 $3,800,000 $3,800,000 $11,200,000 $11,200,000 $4,909,204 $4,909,204

$117,773,204

$29,909,204 $29,909,204

$117,773,204 $117,773,204

IUP Cost 2018 2018 IUP Cost

Project Cost Project Cost Project Cost $250,000 $250,000 $250,000 $250,000

$29,909,204

2018 IUP Cost

2018 IUP Cost IUP Cost 2018

$250,000

$250,000 $250,000 $250,000 $250,000

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with UCANE’s Officers and Board Members How did you get started in the underground construction industry and what was your first job?

I guess you might say that I was born into the business that my grandfather started in the 1950s and that my father and his brothers built up in the 1960s. I can remember riding to jobsites on weekends with my dad as a youngster. While in high school and college, I worked summers on jobsites, the garage, and the office – whatever they asked me to do. When I graduated from Springfield College in 1992, I officially entered the family business.

I began as an assistant superintendent working under some of our company’s great superintendents, and my first job was a tough sewer project in Dedham and Needham.

What type of projects does P. Gioioso & Sons, Inc. specialize in performing?

Most of our work has historically been in the water and sewer business. We have done some very large jobs over the years for the MWRA, Boston Water & Sewer Commission, and other municipalities. We are a large company with a lot of good employees and a fleet of equipment to keep busy, so we try to diversify as much as possible. We will tackle bridges, rail, highway work, marine, and other public works projects that involve heavy construction.

How and why did you decide to get involved with UCANE? JANUARY, 2018

UCANE Board Member Marco Gioioso P. Gioioso & Sons, Inc.

P. Gioioso & Sons, Inc. was one of the original members of UCANE, and my father and my uncles had always been involved with UCANE. As I and the rest of the third generation came along, we also saw the many benefits that UCANE had to offer our company, and we wanted to get involved too. I started going to Government Relations Committee meetings in the late 90s and was offered an opportunity to be on the Board of Directors in 2002. I served several years as a director and then served in every officer position. I was honored to be elected as UCANE President in 2011 and 2012 and have been on the Board almost every year since then.

I’m proud to be continuing our company’s more than 50 year commitment to UCANE. What is the state of the industry as you currently see it? continued on page 31

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Thomas Descoteaux, Senior Vice President at the R. H. White Companies Received the 2017 Kenneth O. Hodgson Distinguished Service Award

T

he New England Water Works Association (NEWWA), the regions largest and oldest non-profit organization of water works professionals, presented Thomas Descoteaux, Vice President of the R. H. White Companies with the 2017 Kenneth O. Hodgson Distinguished Service Award.

He was presented this award at the 136th NEWWA Annual Conference in recognition of his outstanding service to NEWWA and the waterworks industry from the service, manufacturing, or contracting area. It honors a member from the community

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who has provided exemplary service and dedication to furthering the ideals of the Association.

Tom, a Past President of UCANE, currently serves on the board of directors of the Merit Construction Alliance and is past chairman of Associated Builders and Contractors, Inc. Tom has been a member of NEWWA and the American Water Works Association since 2002.

He is a resident of Douglas, MA and earned his civil engineering degree from Worcester Polytech Institute and a MBA from Nichols College. n

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Under the Hard Hat continued from page 29 Our underground infrastructure in Massachusetts is some of the oldest in the country. Every study done in the last 10 years on both a national or on a state level shows a huge gap between infrastructure needs and infrastructure funding. Unless increased funding is authorized at every government level, the gap will continue to widen and we will just pass this problem onto the next generation. I think the national economy will see growth in the next few years and if Massachusetts wants to participate in it, it needs to have a modern, competitive infrastructure supported by increased and dedicated funding. I think the public understands this and we need our legislators to understand this also as the FY19 budget process approaches.

I have a good level of confidence that our local legislators will understand the need and that the volume of work coming out to bid in the next few years will increase. Increased funding will allow the mandated 208 Plan to start protecting Cape

Cod’s valuable resources with environmental projects starting this spring and for years to come. The latest SRF funding list for 2018 shows more cities and towns requesting loans. Couple that with the Washington talk about an infrastructure package and I think the next few years look positive for citizens of the Commonwealth, for the environment, and for our industry.

What would you like our membership to know about being a Board Member?

Being a Board member really gives you insight into all the things that UCANE works on for its members. I have a better understanding of how the legislative process works and how decisions that elected officials make can impact my business. At Board meetings we discuss the most up to date issues regarding funding, regulatory changes, pending legislation, labor, safety, etc. and we try to make decisions that will improve the industry.

It has been a rewarding experience for me personally and a benefit to the company. n

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2018 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 2018.

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

HOW WILL THE APPLICATION BE JUDGED? 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. thoroughness 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 16, 2018. 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 JANUARY, 2018

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Exploring a Water System from Mountain Reservoir to Bathroom Tap In this article from WAMC’s in depth look at infrastructure series, WAMC’s Pioneer Valley Bureau Chief Paul Tuthill reports on how the largest municipality in western Massachusetts gets its water.

The Cobble Mountain Reservoir is the source of drinking water for about 30 percent of Massachusetts. Photo: WAMC

As

you turn on the bathroom faucet in the morning to brush your teeth, probably that last thing you think about is where did the water come from and how did it get to me?

The nearly 23 billion gallon reservoir is fed by numerous streams and mountain brooks. It is surrounded by 31,000 acres of undeveloped land where public access is forbidden.

“We like to say it is a miracle when you turn your tap on everyday and you get a clean glass of water and you don't have to think about it,” said Josh Schimmel, executive director of the Springfield Water and Sewer Commission.

From the reservoir, gravity takes the water to a treatment plant in Westfield that was built in the 1970s.

After being filtered through sand, adjusted for pH, and disinfected with chlorine, the water flows five miles, again by gravity, to four underground storage tanks with a total capacity of 60 million gallons.

What he likes to call “a miracle” is actually an engineering marvel. It is a supply and distribution system – parts of which were constructed in the 1800s – that brings water to a quarter million people in greater Springfield. It requires tens of millions of dollars annually to maintain – an expense borne primarily by the water consumers.

Up in a mountain about 35 miles west of Springfield is the source of drinking water for roughly 30 percent of the state. The Cobble Mountain Reservoir located in Blandford and Granville was built in 1931. At the time, it was the largest earthen dam in the world.

“Over a hundred years ago, people had the foresight to build really robust systems that are still in service today,” said Schimmel.

34

Three 54-inch and 48-inch diameter transmission pipelines carry the water another six miles, crossing the Connecticut River to Springfield. A network of underground pipes distribute the water to homes and businesses in Springfield, Agawam, Longmeadow, East Longmeadow, and Ludlow.

“From the farthest reaches of the water supply to residents in Ludlow it is about 50 miles as the crow flies, and there is about 600 miles of water pipe between here and there,” said Schimmel.

Combined with the sewer lines, the Springfield Water and Sewer Commission maintains there are 1,000 miles of pipe. Forty-four percent of it is more than 75 years old.

Twenty-five percent is more than 100 years old.

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JANUARY, 2018

“What industry relies on technology that is 100 years,” asked Schimmel? “It is really only the water and sewer industry that still has stuff in the ground that provides service everyday that is more than 100 years old.”

To try to stay ahead of potentially disruptive breakdowns, Schimmel said the commission has an “aggressive” infrastructure replacement program with projected annual spending of $40 million over the next few years.

“As I've said before, it's not if there is going to be a water main (break) that disrupts service to the communities we serve, it is just a matter of when,” said Schimmel. “We try to do the best we can to prioritize areas for infrastructure investment. And all of that from investigation to construction is supported by our rate structure. There isn't money coming from any source other than what we collect for water use and wastewater (service).”

Construction of the Cobble Mountain Reservoir Dam was completed in 1931. It was at the time the largest earthen dam in the world. Photo: Springfield Water and Sewer Commission

The commission said the typical annual household combined bill for water and sewer is $991. That is among the lowest of municipal water and sewer systems in Massachusetts.

Rates were increased 4 percent this year, which is the average rate increase nationally according to Circle of Blue, an organization of journalists and scientists that collects data on natural resources.

Eighteen percent of the 35-45 million gallons of water produced daily from the Springfield Water and Sewer Commission’s system is used by one customer – the Eastman Chemical Co. plant in the Indian Orchard neighborhood.

The plant’s environmental supervisor, Chris Aberg, could not say how much the bill comes to for all that water, but he stressed the need to maintain a reliable supply of water to the plant which has 400 employees and produces the shatter-proof glass used in car windshields.

Construction of a gatehouse at the Cobble Mountain Reservior. Photo: Springfield Water and Sewer Commission

“It is vitally important for our local officials and state and federal representatives to consider that it is a cost we all endure and so it is important for them to consider investment,” said Aberg.

In the 1970s, after the passage of the Clean Water Act and Safe Drinking Water Act by Congress, the federal government spent heavily to support improvements and expansions of local water systems.

But federal spending for water and sewer infrastructure projects peaked in 1977 and now accounts for just 9 percent of capital spending by Washington, according to a report from the Value continued on page 37

JANUARY, 2018

Workers dig a tunnel to install a pipe to bring water down from the mountain reservoir. Photo: Springfield Water and Sewer Commission

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36

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JANUARY, 2018

Exploring a Water System continued from page 35 of Water Campaign, a coalition of water and sewer plant operators.

Schimmel said government spending on infrastructure over the last several decades has tilted sharply toward transportation with little federal and state funding available now for water and sewer projects.

“What we get are low interest loans, which help, but grants would be better,” said Schimmel.

“Nationally there is a lack of investment in the water sector.”

A report earlier this year from the office of Massachusetts Auditor Suzanne Bump said the state faces a need for $7.2 billion in water infrastructure projects.

Springfield Mayor Domenic Sarno said the city’s water system is a big selling point when trying to attract new businesses and residents.

“We have one of the best water systems in the world,” declared Sarno. “When you look at what happened in Flint, Michigan where corners were cut to balance a budget, I give you my word that as long as I am around that will never happen in the city of Springfield." continued on page 39

JANUARY, 2018

One of three transmission pipelines that bring water across the Connecticut River to Springfield is being installed in this undated photograph.

Photo: Springfield Water and Sewer Commission

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Exploring a Water System continued from page 37 A reliable source of water is also vital to public safety. The Springfield Water and Sewer Commission’s water distribution system includes 6,000 fire hydrants. The age and condition of those hydrants is a worry according to Springfield Fire Commissioner Joseph Conant.

“We have experienced fires in the past where the aging infrastructure failed and resulted in costly delays in getting water on the fire,” said Conant. He cited a fire that occurred on Chase Ave. on July 3, 2013 where a water main failed resulting in the loss of two houses, damage to four more and the loss of several vehicles.

The reason for constructing the Cobble Mountain Reservoir, in the first place, was a need for fire protection in Springfield because of a building boom that occurred in the 1920s. n (Written by Paul Tuthill. Reprinted with permission. WAMC/Northeast Public Radio is a regional public radio network serving parts of seven northeastern states. These include New York, Massachusetts, Connecticut, Vermont, New Jersey, New Hampshire and Pennsylvania. Stations and translators are in 24 locations throughout the region. WAMC/Northeast Public Radio is a member of National Public Radio and an affiliate of Public Radio International.)

Crews repair a water main break in this undated photograph. Photo: Springfield Water and Sewer Commission

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Construction & Public Contracts Group, Hinckley Allen, LLP

Christopher Morog Partner

Robert T. Ferguson Partner

Minimum Experience Requirements An awarding authority has discretion when it comes to waiver of non-statutory bidding requirements. However, as illustrated in a recent decision of the Bid Unit of the Massachusetts Attorney General’s Office (the “AGO”), that discretion does not enable an awarding authority to abandon substantial experience requirements it chose to implement on a given project.

​T

he project in question involved the demolition, rehabilitation, and replacement of a utility corridor for a state university. A significant component of the $4.2 million project involved HVAC and plumbing work, but there was conflicting evidence as to how much of the project consisted of such work. The protestor – a labor union – argued that 80% of the project was earth-moving and excavation, with roughly $1 million in HVAC and plumbing work. The university argued that the HVAC and plumbing work comprised $2 million of the $4.2 million estimated project cost.

The university required bidders to submit a ​ qualifications form listing “a minimum of 10 public and private non-building projects, which are similar in value and scope to this project” along with references. As it turned out, the low bidder was an HVAC contractor, not an excavation contractor. The low bidder listed 12 HVAC projects with an average value of $536,922.17. The university nevertheless accepted the bid, prompting the labor union to file a protest.

Although experience requirements are not ​ mandated by statute, the AGO stated that principles of “equal footing” and “fair and open competition” would “prohibit noncompliance with such experience requirements.” In other words, the university could not waive the minimum experience requireJANUARY, 2018

ments it chose to impose on bidders for the project.

Otherwise, the procurement would allow the low bidder to gain advantage by bidding in a different way or on a different basis from other bidders. According to the AGO, “[a] bidder who knows it does not meet the experience requirements and then effectively calls upon the awarding authority to waive those requirements after the fact is requesting a post-bid change in the rules that governed the procurement process.” ​The AGO recognized an awarding authority’s discretion to waive non-statutory bidding requirements.

But that discretion does not enable an awarding authority to “abandon significant experience qualifications which influence which bidders choose to submit a bid, and the bidders’ assessment of the costs and continued on page 42

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Legal Corner continued from page 41

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conditions of performing the contract.”

Where – as here – the low bidder’s bid was “906% higher than its average completed contract value for HVAC work,” the AGO concluded that the low bid must be rejected for failure to meet the university’s minimum experience requirements.

Notably, had the low bidder shown experience on HVAC projects valued at $1 to $2 million, the AGO probably would have had to determine the other question presented in the bid protest: whether this project was primarily an excavation project, or an HVAC/plumbing project. The AGO did not answer this question in its decision.

This case presented what appeared to be a clear example of one bidder’s obvious failure to meet minimum experience requirements. However, it should be noted that determining what projects are comparable for purposes of evaluating bidder experience is normally a much closer call. The AGO and the courts will not substitute their judgment for that of the awarding authority. n

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UCANE’s 7th Annual Appreciation Night Trade Show Will be held on Tuesday March 27 prior to our Forecast Dinner Meeting

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

If you are not currently advertising in Construction Outlook, we hope you will consider placing an ad. Our monthly magazine showcases your products and services to contractors who use them. 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.

JANUARY, 2018

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

43

O

OSHA’s Top 10 Most Cited Violations for FY2017

SHA has recently announced its list of the Top 10 most cited violations during FY17. Most of the violations are repeats from last year and their order remains, for the most part, unchanged.

One new violation – “Fall Protection Training” made its way to the list showing up at Number 9. “Electrical General Requirements”, last year’s Number 10 fell off this year’s Top 10 List.

Of significant note is the fact that all of the Top 10 showed significant reductions in the number of citations written in 2017 vs. 2016. All 10 violations saw citations drop in quantity, in some cases over 25 percent. In 2016 this list accounted for 35,939 citations vs. 28,743 citations in 2017 – an overall 20 percent reduction.

Excavation once again was not on the Top 10 most cited, but it did account for 2 out of the 5 largest dollar value citations issued by OSHA in 2017.

Those two excavation incidents accounted for three fatalities including a highly publicized double fatality in Boston.

The Manufacturing Industry continues to dominate the Top 10 highest dollar value list with serious injuries and fatalities due mostly to machine guard and lockout/tagout violations.

In Massachusetts there were 22 OSHA site visits (all industries) in 2017 in which citations exceeded $40,000 – the average being $75,545.

Nine of those citations were in the construction in-

1 2 44

Fall Protection (1926.501)

6,887 violations Hazard Communication (1910.1200)

4,652 violations

dustry with the majority being in vertical construction, especially roofing. The cost of every violation will increase in 2018 by COLA as introduced into the OSHA regulations in 2015. Serious violations in 2017 were $12,675 per violation, and Willful or Repeated were $126,749 per violation. Increases are expected in the 2.5 percent range for 2018 In 2018, enforcement of the new Silica Rule will surely see a spike in citations. It is a fairly complicated rule affecting many day-to-day operations in the construction industry. Contractors need to make sure they are knowledgeable about this rule, get their employees trained, and have their site-specific Dust Control Plan on-site ready in 2018.

It is an employer’s responsibility that all employees be trained in safety, including safe operation of tools and equipment, hazard awareness, dust exposure, lockout/tagout, etc. Documentation of all training, testing, and weekly tool box talks is a must. Don’t send a crew to work without a competent person designated, a site-specific safety plan, or without the proper safety equipment necessary to do the job.

Although employers can take some credit for, and consolation in seeing the 2017 quantity of top 10 citations being sharply reduced, safety remains a full-time job, especially in the construccontinued on page 47 tion industry.

This category again topped the violation list, though it did see a reduction in violations in 2017. The majority of these citations come from failing to guard edges and open sides to prevent falls.

The most common violation was an employer’s failure to have a written program, adequate training, a failure to label containers, and to provide data sheets to employees.

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JANUARY, 2018

Violations include improper scaffold construction, improper worker access to scaffolding surfaces, and a lack of guardrails.

These violations include not conducting the required medical evaluation general requirements and failing to have a written respiratory protection program.

Scaffolding (1926.451)

3,697 violations Respiratory Protection (1910.134)

3,381 violations The violations in this category remained consistent from 2016 and include worker training issues, the lack of lockout/tagout procedures, and employers did not perform periodic inspections.

Ladder violations moved up one spot from 7 to 6 in 2017. Violations include using a ladder for a different purpose than for which it was designed, portable ladder access, and using the top ladder step.

Violations were down by almost 700 in 2017, which accounts for it sliding down to number 7. The most common violations again were employers not ensuring safe operation by operators, not evaluating operators every three years on their performance, and a lack of certification for operators.

Violations included the lack of operator protection from hazards created by point of operation, exposing the employee to injury, improper anchoring of fixed machinery, and exposure to blades.

This category is the only new addition to the list in 2017. Violations include the lack of an adequate training program, employee certification records, and lack of employee knowledge.

Violations included using substitutes for fixed wiring of a structure, improper use and splicing of flexible cords, and not closing unused openings.

JANUARY, 2018

Lockout/ Tagout (1910.147)

3,131 violations Ladders

(1926.1053)

2,567 violations

3 4 5 6 7 8 9 10

Powered Industrial Trucks (1910.178)

2,349 violations Machine Guarding (1910.212)

2,109 violations

Fall Protection Training Requirements (1926.503)

1,724 violations Electrical-Wiring Methods (1910.305)

1,530 violations

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JANUARY, 2018

OSHA Top 10 continued from page 44

OSHA's TOP 10 VIOLATORS for 2017 OSHA’s Top 10 Violators for FY2017 RANK

INDUSTRY

STATE

1

2

3

4

5

6

7

8

9

10

Manufacturing

ConstrucGon-ExcavaGon

ConstrucGon-Building

ConstrucGon-ExcavaGon

Manufacturing

Manufacturing

Manufacturing

Manufacturing

Farming

Manufacturing

PENALTY

Alabama

MassachuseKs

Florida

Missouri

Ohio

Ohio

Ohio

Oklahoma

Nebraska

Illinois

VIOLATION

$2.6M

$1.5M

$1.5M

$714,000

$610,000

$569,000

$536,000

$535,000

$526,000

$503,000

Fatality; Lack of Machine Guards; Controls; Lockout/Tagout; 23 Willful (19 Egregious) Double Fatality; Trench Collapse; Lack of Shoring; Training; Repeat Violator No Injury; Planned InspecGon; Roofing Fall Hazards; Repeat Violator; 11 Willful Fatality; Trench Collapse; Lack of Shoring; Training; Repeat Violator; 6 Willful; 8 Serious Serious Injury; Lockout/Tagout; Silica Exposure; 18 Serious; 6 Repeat AmputaIon; Lack of Machine Guards; Controls; Lockout/Tagout; 3 Willful AmputaIon; Lack of Machine Guards; Controls; Lockout/Tagout; 3 Willful Employeee Exposure; PainGng OperaGons and Welding; No Medical Vals; Fit Test Records Fatality; Grain Bin Collapse; No Confined Space Training; Lockout/Tagout; 3 Willful; 15 Serious MulIple AmputaIons; Lack of Machine Guards; Lockout/Tagout; Training; 5 Serious/Repeat

OSHA Citations Over $40,000 Massachusetts** OSHA CITATIONS OVER $40,000 - MASSACHUSETTS** FY

2016

2017

Change

JANUARY, 2018

CASES CITATION VALUE AVG. CITATION Total Const.

19 6 $1,614,000 $84,947

22* 9* $1,640,000* $74,545

3 3 $26,000 ($10,402)

* Does not include 1 Const. CitaRon for $1,475,000 so as not to skew the data ** Represents value of IniRal CitaRon and may not reflect final se]lement

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

47

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FactSheet

FactSheet Heavy Equipment and Utility Vehicles FactSheet FactSheet FactSheet Used for Grading and Excavating Tasks CONTROL OF SILICA DUST IN CONSTRUCTION

CONTROLUsing OFheavy SILICA DUST CONSTRUCTION equipment and utilityIN vehicles for earthmoving tasks such as grading and excavating does not in most cases generate hazardous levels of respirable CONTROL OF SILICA CONSTRUCTION crystalline silica dust. DUST However, inIN dry conditions hazardous exposures can occur.

Heavy Equipment and Utility Vehicles CONTROLThisOF DUST CONSTRUCTION fact SILICA sheet describes methodsIN to minimize the amount of airborne dust

Heavyfor Equipment and Excavating Utility Vehicles Used Grading and Tasks Heavy Equipment and Utility Vehicles CONTROL OF SILICA DUST IN CONSTRU Using heavyfor equipment and utility vehicles earthmoving tasks such as grading Used Grading and for Excavating Tasks Used for Grading and Excavating Tasks and excavating does not in most cases generate hazardous levels of respirable Using heavy equipment and utility vehicles for earthmoving tasks such as grading and when using heavy equipment or utility vehicles for earthmoving tasks such as grading and excavating soil, as listed in Table 1 of the Respirable Crystalline Silica Standard for Construction, 29 CFR 1926.1153. A separate fact sheet covers dust controls for heavy equipment used for abrading, or fracturing silica-containing materials during demolition activities.

Heavy Equipment and Utility V Used for Grading and Excavati

Using heavy equipment and utility vehicles for earthmoving such can as grading crystalline silica dust. However, in dry conditions hazardous tasks exposures occur.

Using heavy equipment and utility vehicles for earthmoving tasks such as grading excavating does not innot most cases generate hazardous levelslevels of respirable crystalline and excavating does in most cases generate hazardous of Control Methods: Enclosed cab (whenthe only the operator isof exposed) OR respirable water sprays This fact sheet Engineering describes methods to minimize amount airborne dust and excavating does not in most cases generate hazardous levels of respirable silica dust. However, in dry conditions hazardous exposures can occur. This fact sheet and/or dust surfactants (a dust suppressant) crystalline dust.

However, dry conditions exposures can occur. when usingsilica heavy equipment or in utility vehicles forhazardous earthmoving tasks such as crystalline silica dust.

However, in dry conditions hazardous exposures can occur. describes methods to minimize the amount of airborne dust when using heavy equipThis factand sheet describes methods to in minimize amount of airborne dust Silica grading excavating as listed Table 1 the ofLarge the Respirable Crystalline •the atomized misting devices.

The applicationsoil, of water and/or dust This or fact sheet describes methods to minimize amount of airborne dust as ment utility vehicles for earthmoving tasks such as grading and excavating soil, as when using heavy equipment or utility vehicles for earthmoving tasks such Spray equipment attached directly to the dust suppressants can help to reduce Standard for Construction, 29 CFR exposure 1926.1153. A• separate fact sheet covers when using heavy equipment or utility vehicles for earthmoving tasks such listed in Table 1 of the Respirable Crystalline Silica Standard for Construction, 29 CFR vehicle. to dust when operating heavy equipment or grading and excavating soil, as listed Table 1 ofor the Respirable Crystallineas Silica controls for heavy equipment used forin abrading, fracturing silica-containing • Nozzles adjusted so that water spray is utility vehicles for tasks such as grading and Using heavy equipment and utility vehicles for earthmoving grading and excavating soil, asCFR listed indust Tablecontrols 1Aof thefor Respirable Crystalline Silica 1926.1153.

A separate fact sheet covers heavy equipment for Standard for Construction, 29 1926.1153. separate fact sheet coversused dust directed at the work areas where dust excavating.

If the equipment operator is the only materials during demolition activities.

Standard for Construction, 29 CFR 1926.1153.

A separate fact sheet covers dust abrading, or fracturing silica-containing during demolition activities. controls for heavy used for materials abrading, or fracturing silica-containing suppression is required. worker equipment engaged in the task, the employer can

Photo courtesy of International Union of Operating Engineers

and excavating doesused not in most cases generate hazardous • Timing the applicationsilica-containing of the water or other choose to apply water and/or dust for suppressants controls for heavy equipment abrading, or fracturing materials during demolition activities. suppressants to ensure OR that water the materials to minimize dust emissions or can require Engineeringduring Control Methods: Enclosed cab (when only thedust operator is exposed) sprays materials demolition activities. crystalline silica dust.

However, in dry conditions hazardous are still damp when they are disturbed. the operator to stay within an enclosed cab. and/or dust surfactants (a dust suppressant) However, if there are other workers engaged in Engineering Control Methods: Enclosed cab (when only the operator exposed) OR water spraysamount This fact sheet describes methods toisminimize the the task, then water and/or dust suppressants Engineering Control Methods: Enclosed cab (when only the operator is exposed) OR water sprays and/or dust surfactants (a dust suppressant) must be applied as needed to minimize their The application of water and/or dust suppresThe application of water and/or • Large atomized misting devices. and/or dust surfactants (aairborne dustdust suppressant) exposure to when using heavy equipment or utility vehicles for earthmo sants can help to reduce exposure todust. dust when opsuppressants can help to reduce exposure • Spray equipment attached directly to the erating heavy orand/or utility vehicles for Methods The application ofWet water dust Largelisted atomized misting devices. 1 of the Respi to dust when equipment operating heavy equipment or tasks vehicle. grading and excavating soil,• as in Table such as grading and excavating.

If the equipment Wet methods for heavy equipment The application of water and/or dust Large equipment atomized suppressants reduce exposure Spray attached directly toisthe utility vehiclescan for help tasksto such as grading and and utility •• Nozzles adjustedmisting so that devices. water spray vehicle operators include the use of any operator is the operating only worker engaged in the task, themethod suppressants can help to reduce exposure • Spray equipment attached directly to the to dust when heavy equipment or vehicle.

Standard for Construction, 29 CFR 1926.1153.

A separate fa excavating. If the equipment operator is the and only directed at the work areas where dust thattowill suppress dust emissions be employer can choose apply water and/or dust supto dust when operating heavy equipment or vehicle. utility vehicles for tasks such as grading and • Nozzles adjusted so that water spray is the job task. These include using: suppression is required. worker engaged incompatible the task,tothe employer can pressants to minimize dustheavy emissions or canand require controls for equipment used for or fracturin utility vehicles for tasks such as grading Nozzles adjusted soabrading, that spray excavating.

If the equipment operator is the only directed at application the work areas where dust choose to apply water and/or dust suppressants •• Timing the of water the water oris other Tank trucks equippedcab. with However, hoses and nozzles the operator to stay •within an enclosed excavating.

If the equipment operator is the only directed at the work areas where dust worker engaged in the thecan employer can suppression is required. that task, spray water orinrequire other suppressants minimize dustworkers emissions or dust suppressants to ensure that the materials ifto there are other engaged the dust task, then materials during demolition activities. worker engaged in the task, the employer can suppression is required. over large areas to wet the materials disturbed choose to apply water and/or dust suppressants • Timing the application ofare thedisturbed. water or other the operator to stay within an enclosed cab. are still damp when they

Photo courtesy of Union International of Operating Photo courtesy of International Union of Union Operating EngineersEngineers Photo courtesy of International of Operating Engineers

water and/or dust suppressants must tasks, be applied as during earthmoving including haul • Timing the application of the water or other choose and/or suppressants to minimize dust water emissions or dust can require dust suppressants to ensure that the materials However, ifapply there are other workers engaged in needed totominimize their exposure to airborne dust. roads and job sites in general. to minimize dust emissions or can require duststill suppressants ensure that the materials operator stay within an enclosed cab. by applyingare damp whentothey are disturbed. the task, thentowater dust suppressants • Aand/or worker who assists the operator Backhoe with enclosed cab. the operator to stay within an enclosed cab. are still damp when they are disturbed.

Wet Methods water or other types of dust suppressants to However, if there are other workers engaged in must be applied as needed to minimize their Engineering Control Methods: Enclosed cab (when only the operator is materials being moved.

• Spray equipment attached directly to the veHowever, if there areand/or other dust workers engaged in the task,methods then water suppressants exposure to airborne dust.

Wet for heavy equipment and utility vehicle. and/or surfactants (a dust the task, thendust water and/or dust must be applied as needed to minimize their hicle operators include the use of suppressants any method that suppressant) Wet Methods must be applied needed minimize their to • Nozzles adjusted so that water spray is directexposure to airborne dust. to will suppress dust as emissions and be compatible ed at the work areas where dust suppression exposure to airborne dust.

Wetjob methods for heavy and utility the task. These includeequipment using: Wet Methods is required. vehicle operators include the use of any • Tank trucks equipped with hoses andmethod nozzles Wet Methods The application of water and/or dust • theLarge m Wet will methods forwater heavy equipment and • Timing the application of water oratomized other that suppress dust or emissions and beutility that spray other dust suppressants Wet methods for heavy equipment utility dust suppressants to ensure that the materivehicle operators include the use of and anyreduce method over large areas wet the materials disturbed compatible to the job to task.

These include using: suppressants can help to exposure • Spray equipment als are still damp when they are disturbed. vehicle operators include the use and of any during earthmoving tasks, including haul that will suppress dust emissions bemethod •to Tank trucks equipped with hoses and dust when operating heavy orbe applied at flow rates vehicle. that will suppress dust emissions and benozzles roads and jobjob sites in general. compatible to the task.

These include using:equipment Water must suffcient to that spray water or other dust suppressants compatible to the job task.

These include using: minimize the release of visible dust. Too much water • A worker who assists the operator by applying utility vehicles for tasks such as grading and • Nozzles adjusted s • over Tank trucks equipped with hoses and nozzles large wet the materials disturbed can create mud slurry that can cause hazards. Too water orareas othertotypes of dust suppressants to • during Tank trucks equipped with hoses and nozzles thatmaterials spray water ormoved. other dust suppressants earthmoving tasks, including haul operator being little water will notonly effectively controldirected dust emissions. excavating.

Ifto the equipment is the at the wo that spray water or other dust suppressants over large areas wet the materials disturbed roads andatomized job sitesmisting in general. continued on page 51 • Large devices. over large areas to wet the materials disturbed during earthmoving tasks, including engaged in the task, the employer can suppression is req •worker A worker who assists the operator byhaul applying Backhoe with enclosed cab. during earthmoving tasks, including haul roads or and job sites water other typesinofgeneral. dust suppressants to choose water and/or dust suppressants • Timing the applica roads andto jobapply sites in the general.

• materials A worker who assists operator by applying being moved.

Backhoe with enclosed cab.

• water Aminimize worker who types assists operator applying or other ofthe dust suppressants to can require to dust emissions or dust suppressants 2018 “BUY FROM by THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 49 JANUARY, Backhoe with enclosed cab. water or other of dust suppressants to materials beingtypes moved. the operator to stay within an enclosed cab. are still damp whe materials being moved.

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OSHA Fact Sheet continued from page 49

Operator Isolation When operators rely on enclosed cabs for protection against silica dust, the cab must: • Be well-sealed and well-ventilated using positive pressure.

• Have door jambs, window grooves, power line entries and other joints that work properly and are tightly sealed.

• Have heating and air conditioning, so that operators can keep windows and doors closed.

• Use an intake air flter with a minimum MERV16 rating (at least 95 Area percent effcient in the Boston 0.3-10.0 µm range).

Locations

• Be kept free from settled dust by regular cleaning and maintenance to prevent dust from become airborne inside the enclosure.

Modern heavy equipment often comes equipped with enclosed, filtered cabs that meet the requirements of the silica standard in Table 1. Retroft equipment is available for older equipment.

Respiratory Protection When properly used, an enclosed cab or wet methods can effectively control airborne silica dust.

Therefore, Table 1 in the silica standard for construction does not require the use of respirators when wet methods are used for dust suppression, or for the operator when operating heavy equipment or utility vehicles from within an enclosed cab.

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Under the Occupational Safety Minichiello Bros./Scrap-It, Inc., and Health Act of 1970, employers Serves over 2500 customers a week and is one New England's largest buyers, sellers and processors of scrap metal.

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Capital Plan Details Projects Totaling $37M HARWICH — The selectmen and finance committee recently reviewed a seven-year capital plan presented by Town Administrator Chris Clark, who focused on the fiscal year 19 recommendations totaling nearly $37.2 million.

T

he largest portion of the plan is $22.5 million for wastewater projects, the Pleasant Bay watershed collection system construction at $20.3 million and $2.2 million for tie-in costs to the Chatham pipes and pump station.

Both projects would be funded by debt exclusions to be voted on at the spring town meeting.

Richard Larios, chairman of the capital outlay committee that worked with Clark on the plan, added that the $22.5 million for wastewater is the total borrowing amount that will not be spent in one year, but through 2023-24 as part of the Comprehensive Wastewater Management Plan.

He said his committee also backed the extra amount requested by the fire department for the new Station 2 totaling $5.8 million, instead of the original $4.1 million for a renovated building, which the selectmen recently approved.

The entire fire department budget for FY19 is $6.6 million, the second largest allotment in the plan, which includes $340,000 for a new ambulance.

Clark provided a detailed color-coded chart with graphs of the capital funding recommendations, which included the funding sources and departments receiving the funding.

Finance committee member Dana DeCosta praised the new format presented on large 11-by17-inch paper, which he suggested be included as an insert in the warrant for town meeting or some

SEPTEMBER, JANUARY, 2018 2016

other larger version to make the proposals easier to read. The capital plan must be approved at town meeting.

The review Monday, required by the charter, will be followed by a formal public hearing on the capital outlay plan January 8. Clark said his recommendations were within the budgeted amount and the selectmen agreed with his proposals and the finance committee had few questions.

Another large item in the FY19 plan is funding for a pet crematory at $486,000 and an animal cremation device at $91,950, totaling $577,950 to be funded from cemetery revenues.

Earlier in the meeting the selectmen also approved a contract for $46,036 to fund the first two phases of a pet burial ground walkway to be funded continued on page 55

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Cape Cod continued from page 53 by the cemetery revolving fund. Chairman Michael MacAskill cast a dissenting vote.

After the vote, finance committee member Jon Chorey questioned the walkway project, saying it would be visited by only tens of people versus thousands at a harbor boardwalk, which was sidelined in the overall harbor renewal project.

He said he had not heard about the cemetery walkway in a public hearing or at town meeting, but Cemetery Administrator Robbin Kelley said it was part of the cemetery project in the seven-year capital plan approved at this year’s town meeting, but not funded for FY18. MacAskill suggested Chorey write him and the Cemetery Commission about his concerns.

Clark and the capital committee also recommended an additional $50,000 from free cash for the preservation of the Judah Eldredge property in addition to the $369,000 to be funded by community preservation funds.

The property is on the site of the recently approved Habitat for Humanity housing project on Route 28 in West Harwich. CPC is also providing a $300,000 housing subsidy for the six Habitat homes.

Anticipated CPC-funded projects are included in the capital plan, but the committee will not be voting on them until January, Clark said.

The preservation of the Brooks Library exterior is also included in the capital budget for $300,000, half of the total facilities budgeted amount. CPC is expected to provide that portion of the project, which was approved for $12 million last year. If not approved this year, the $12 million will be lost.

Clark also said he was not recommending funding for the demolition of the West Harwich Schoolhouse based on selectmen’s discussions.

A supplement of $650,000 is included for the garage component of the Saquatucket Harbor landside renovations. A walkway reconstruction from the harbor to Harwich Port costing $250,000 is included in the administration budget.

A total of $500,000 is in the planning department budget for the housing trust and includes $30,000 for a new part-time housing coordinator.

Public Works funding includes $335,500 for Phase V of the Brooks Park lighting plan and $98,000 for paving the Bank Street Beach parking lot.

Written by Susan Vaughn. Reprinted from Wicked Local Harwich. n

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5 Steps to Confined-Space Safety Each year, about 100 workers in the United States die in confined-space incidents.

The sad fact is that most of those workers were never properly trained, and, as a result, did not appreciate the dangers that are a regular part of confined spaces. Maybe they did not recognize a particular space as “confined.” Or they trusted their senses.

Or maybe they simply underestimated the dangers. They didn’t stay on guard, or, as is 5 Steps to Confined-Space Safety often the case, they attempted to rescue others.

The good news is that work in confined spaces can be done safely if you follow five relatively simple steps.

Step 1 - Identify the Spaces OSHA defines a confined space as: • Large enough to enter, and • Limited or restricted means for entry, and • Not designed for continuous worker occupancy Specific examples cited in the standards include, but are not limited to, manholes, pipelines, culverts, underground utility vaults, lift stations, storage tanks, tunnels, septic tanks, and pits more than 4 feet deep. It is important to remember that every space is unique, and each requires careful evaluation.

Step 2 - Develop a Plan Why develop a plan? There are several excellent reasons, of course, but one of the most important is this: It’s the law.

Topics that may need to be part of your plan include: • Steps taken to prevent unauthorized entry • Communications and coordination with other employers at the site • Identification and evaluation of all hazards • Development of the means, the procedures, and

JANUARY, 2018

A confined-space attendant, who remains outside the confined space at all times, is vital to the safety of entrants.

A confined-space attendant, who remains outside the confined space at all times, is vital to the safety of entrants.

Interested in Safety?

Get Safety articles, news and videos right in theSign practices necessary for your inbox! up now.

safe entry providing, maintaining, and ensuring proper use of safety equipment Each year, about 100 workers in the United States die in confined-space • Continual evaluation of the space while entry opincidents. erations are underway The sad fact is thatan most of those workers • Providing attendant outsidewere the never spaceproperly trained, and, as a result, did not appreciate the dangers that are a regular part of confined • Designating the person who will have an active spaces.role Maybe they did not recognize space as “confined.” Or they in entry operations (thea particular entry supervisor) trusted their senses. Or maybe they simply underestimated the dangers. They • Developing a system for using entry permits didn’t stay on guard, or, as is often the case, they attempted to rescue others.

• An emergency rescue plan The good news is that work in confined spaces can be continued ondone pagesafely 59 if you follow Safety Get Alerts • +Plans for

five relatively simple steps.

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Safety Corner continued from page 57

Step 3 - Train Your People OSHA makes it very clear: All employees must be properly trained to safely do their jobs.

Each year, a significant number of confinedspace fatalities are would-be rescuers. Even if employees will not be working in confined spaces, it is important that they are trained in the potential dangers of entering a confined space and attempting a rescue.

Specific training may be required for: •

Competent person

•

Entry supervisor

•

Attendant(s)

•

Entrant(s)

•

Atmospheric monitoring personnel (see Step 4)

•

Rescue team (see Step 5)

Step 4 - Identify and Eliminate All Hazards There are three broad categories of confinedspace hazards: • Atmospheric • Physical • Psychological

retrieval systems, such as tripods, anklets, and wristlets, are the preferred methods of rescue. The reason is simple: No one has to go into the hazardous space to make the rescue.

If non-entry retrieval systems will not work, a rescue team may be required. The rescue team must be properly trained, and have all appropriate equipment to safely enter a confined space and retrieve injured entrants.

By applying these five relatively simple steps, you and your crews can work safely in and around confined spaces.

Written by David Dow. Reprinted from Municipal Water & Sewer Magazine. n

It’s important to identify all potential hazards, and then eliminate each one. If elimination is not possible, steps must be taken to control the hazard and ensure worker safety.

Atmospheric hazards include too little oxygen (oxygen deficiency), too much oxygen (oxygen enriched), flammable gases or vapors (examples are methane and natural gas), or toxic substances (examples are hydrogen sulfide and carbon monoxide).

Physical hazards include engulfment, falling or tripping, poor visibility, noise, temperature extremes, biological hazards, energy sources, insects, rodents, and reptiles.

Psychological hazards include claustrophobia, fear of heights, fear of darkness, or poor physical condition or restrictions of the worker. Even a mild level of claustrophobia or fear of heights can be problematic.

There is not a lot one can do for psychological hazards except not put affected workers into spaces that cause them such problems.

Step 5 - Develop a Rescue Plan OSHA mandates that employers provide appropriate rescue and emergency services so that retrieval of injured entrants is not delayed. Non-entry

JANUARY, 2018

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12/8/2017 9:28:48 AM

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A

Experts Forecast Solid Tax Growth for Fiscal 2019

t a December 6 hearing at the State House, state budget officers heard from a range of fiscal experts that state tax collections are likely to do better than expected over the rest of fiscal 2018 and grow moderately next year, although there are significant uncertainties related to the economy, federal tax law changes, and two tax questions headed for the state ballot in November.

The annual “consensus revenue hearing” marks the unofficial kickoff to the budget season. It is convened by the governor’s secretary of administration and finance and the chairs of the House and Senate Ways and Means committees as an early meeting with fiscal experts to help reach agreement on a tax forecast to be used in the governor’s and legislative budget recommendations for the coming fiscal year. The governor is scheduled to file his fiscal 2019 state budget bill by January 24.

For the past several years, the consensus growth percentage has served as the benchmark for the growth rate of revenue sharing with cities and towns through the Unrestricted General Government Aid account in the state budget, and this will continue to be a high priority for cities and towns in fiscal 2019.

The Department of Revenue forecasts that tax collections for fiscal 2019 will increase within the range of 3.3 to 4.1 percent as the economy grows at a moderate pace, which means tax collections next year would total between $27.4 billion and $27.6 billion.

The Massachusetts Taxpayers Foundation forecast also shows fiscal 2019 tax collections growing to $27.6 billion, while MassBenchmarks JANUARY, 2018

forecasts a more positive 6.1 percent growth, to $28.7 billion next year.

For all of the panelists, a key part of their forecast was predicting when taxpayers would take capital gains that have been accumulated and subject them to the state’s income tax. Capital gains and other non-wage and salary parts of the income tax are an important yet volatile part of the state’s total tax mix and pose a special challenge when making forecasts. Both the MTF and MassBenchmarks forecasts assume a surge in capital gains revenues for the Commonwealth during the 2018 tax year.

Revenue Commissioner Christopher Harding told the panel that the department’s forecast assumes modestly improving economic growth, but that there is a very high level of uncertainty for both economic and political reasons. He mentioned increasing uncertainty in global financial markets and the potential impact of a federal tax overhaul on the economy.

Harding noted that the DOR forecast does not include the potential impact of two questions expected to be on the state ballot next November.

One would reduce the sales tax rate from 6.25 percent to 5 percent (and establish an annual sales tax-free weekend), and the other would impose a 4 percent income tax surcharge on incomes of more than $1 million.

The DOR forecast also does not include state tax collections from the sale of recreational marijuana, which are estimated at $44 million to $82 million in fiscal 2019. continued on page 62

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61

MMA continued from page 61 “Preparing a budget months in advance is difficult in the best of circumstances,” Massachusetts Taxpayers Foundation President Eileen McAnneny noted in written testimony, “but this year is particularly challenging given the huge revenue swings that could result from any one of several scenarios in play, including the potential impact on state finances from federal tax cuts and ballot initiatives impacting state tax revenues.”

The MTF estimates that voter approval of the sales tax cut would reduce fiscal 2019 tax collections by $650 million.

In a briefing book released for the hearing, the Department of Revenue forecasts that taxes could end the current year above the $26.5 billion projection adopted last July, when the fiscal 2018 state budget became law. The MTF and MassBenchmarks also projected that tax collections for fiscal 2018 could beat expectations. The revenue growth projection in the budget for fiscal 2018 is 3.5 percent, but expectations now are that it could approach or exceed 4 percent.

Written by MMA Legislative Director John Robertson. n

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IN THIS ISSUE • Investing in 2018: Dividend Stocks • Investing in 2018: Defensive Funds • Small Companies Need Plans for Natural Disasters

A

Investing in 2018: Dividend Stocks

s of this writing, it appears that 2018 may be a diffcult year for investors.

Yields on bonds, bank accounts, money market funds, and other savings vehicles are extremely low, with questionable prospects for substantial increases.

Stock market indexes, on the other hand, are at or near record levels.

In essence, relatively low-risk places to put your money this year appear to offer scant returns. Equity markets have been rising since early 2009, so the chance of a pullback may be just as great as the possibility of solid gains.

Given this environment, where might investors go for opportunities for respectable returns with some protection against a steep decline? One possibility is in the stock market.

Paying Dividends

Equity markets are notoriously difficult to predict.

Nevertheless, dividend paying stocks might tilt the risk-reward odds in your favor. During recent bear markets, dividend payers generally fared better than those that didn’t pay dividends.

This seems reasonable because dividend paying companies may be enterprises that generate ample cash flow—enough to distribute some profits to investors. Companies in strong financial condition

JANUARY, 2018

could be favored by investors in stormy economic weather, and the prospect of ongoing dividend payouts might stem panicked selling.

Floor and Ceiling Whereas dividend paying stocks may offer some protection during down markets, they also might deliver solid returns. The yield on the benchmark Standard & Poor’s 500 Index currently is nearly 2%.

That’s the yield for the broad index, so some of the large companies included in the index have dividend yields of 3% or more. When an investment starts with such a payout, it’s less likely to fall into negative territory and is already on the way to possible robust returns.

Dividends can grow, too. Indeed, many public companies have long histories of raising their payouts.

Example: Nancy King is a widow who depends on investment income for her lifestyle. She invests $50,000 in shares of GHI Corp., currently paying a 4% dividend, or $2,000 a year. If GHI raises its annual dividend to $2,500 over the next few years, Nancy will collect a 5% return on her initial investment.

In addition, qualified dividends (see Trusted Advice box) receive favorable tax treatment. Nancy, in a low tax bracket in our example, could owe 0% on qualified dividends. Other taxpayers owe 15% or, for those in the highest ordinary tax bracket, 20%.

These rates are lower than ordinary income tax rates.

The Trump Administration’s tax reform framework, released in the fall of 2017, does not mention the possibility of ending this tax break. continued on page 65

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Financial Management continued from page 63 Go With a Pro It’s true that dividend paying stocks can offer many advantages. However, investing in equities carries risks; even the most established company, with excellent management, can see its share price tumble in a broad selloff. Selecting individual dividend paying stocks can require thorough research and portfolio monitoring.

Therefore, many investors prefer to invest in mutual funds or ETFs that focus on dividend stocks.

There are dozens of such funds available, with portfolio managers who are responsible for stock selection. Other funds track a custom index of dividend paying stocks. Dividend stock funds tend to fall into two broad categories: • High payout. Some funds are designed to pay higher yields than the S&P 500, perhaps 3% or 4%. They may use “dividend capture” strategies, buying funds just before a dividend payout. High dividends may be appealing, but a robust payout can indicate a relatively low share price due to concerns about the company’s growth prospects.

• Dividend growth. These funds may have yields similar to the S&P 500 or lower. However, the stocks they hold are chosen because the companies have enjoyed growing earnings along with rising dividends and are considered likely to continue such profitability.

Trusted Advice Qualified Dividends • Most stock dividends paid to U.S. investors are qualified dividends that are subject to the low 0%, 15%, and 20% tax rates.

• To be qualified dividends, the dividends must be paid by a domestic corporation or a foreign corporation that meets certain requirements (a qualified foreign corporation).

• To get the low rates, investors must hold onto a stock for more than 60 days during the 121-day period, which begins 60 days before the ex-dividend date.

• The ex-dividend date is the first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment. If the ex-dividend date is December 12, a December 11 buyer would receive the latest dividend, but a December 12 buyer would not receive it.

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Quality Counts Dividend oriented investors may hold individual stocks, specialized funds, or a combination. They aim to own successful, profitable companies that will provide a steady stream of cash flow, bull market or bad.

There’s no magic about dividend paying stocks and there have been instances in which a dividend cut has been followed by a plunging stock price. Still, buying successful companies that pay appealing dividends is one way to approach equity investing this year, with current prices at lofty levels. continued on page 67

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Financial Management continued from page 65

Investing In 2018: Defensive Funds

A

s the previous article suggests, 2018 might be a difficult year for stock market investing. Yes, a 9-year bull market could stretch to 10 years. However, the longer the bulls keep running, the greater the chance that they’ll have to pause for breath, and an exhausted equities market will sag. Risk reduction can be just as important as profit potential at current stock values.

One approach to risk reduction is to sell stocks and put the proceeds into cash. That may turn out to be a good move now, but it’s also possible that you’ll miss another good year in the market while earning virtually nothing in cash.

Another way to play defense is to review your asset allocation. If your investment plan is to have a 60/40 portfolio,

stocks to bonds, equity gains might have moved that ratio to 70/30, for example.

Trimming stocks and increasing bonds to get back to 60/40 probably would make your portfolio less volatile.

Safety in Numbers One additional defensive tactic could be to reduce your holdings of individual stocks, then shift some assets into mutual funds and ETFs. A fund with 50 holdings is not as likely to be decimated as a portfolio with only 2 or 3 stocks. Funds often are managed by experienced professionals, backed by analysts who spend considerable time seeking desirable issues.

That said, there are many thousands of stock funds from which to choose. There is no certain way to predict results of a given fund, but some strategies might boost the likelihood of finding one that can provide some cushion in a down market. continued on page 69

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Financial Management continued from page 67 Crafty Capturing One possible approach is to use “capture ratios” to evaluate funds that you’re considering. There are two types of ratios: downside capture and upside capture. The downside capture ratio shows a fund’s losses in relation to a relevant market benchmark during downturns. The upside capture ratio shows a fund’s gains in relation to a relevant market benchmark during upturns. This information can be found online on Morningstar.com.

Example 1: XYZ Fund’s 10-year downside capture ratio shows that it held losses to about 80% of its benchmark’s decline during market drops, while its 10-year upside capture ratio reports that it’s returning about 90% of the market’s gains during upward moves.

This positive spread indicates the fund has held down losses while delivering largely positive results.

Comparing capture ratios can be useful but it’s not a guarantee of success. If it were, everyone would simply look up capture ratios online, invest in the funds with the best positive spread, and mint money.

Nevertheless, the idea of comparing upside with downside performance can be useful. A fund that has done relatively well—that is, limiting losses—during the bear markets of 2000-2002 and 2008-2009 may be a fund that could do the same in the bear market of 2018 or 2019, or whenever the Ursidae family comes out of hibernation. If a fund that has done well defensively also has registered strong growth in rising markets, it may be a fund worth further evaluation.

Winning the Numbers Game Underlying the approach of investing defensively is some basic math that investors may overlook.

Example 2: John Lucas holds $100,000 in XYZ Fund. The market drops 25% in the next year, but XYZ only falls by 20% to $80,000.

At the same time, John’s cousin Linda James holds $100,000 of ZYX Fund, which drops the full 25% to $75,000.

Going forward, John needs a 25% gain to get back to $100,000, and Linda needs a 33.3% gain to recoup her losses. It’s certainly possible that Linda’s fund will outperform John’s in the recovery, but it has significantly more ground to make up.

Carrying this example further, investors need a return over 40%

JANUARY, 2018

to recover from a 30% loss, a 67% return after a 40% loss, and so on. Holding down losses can put you in a better position to build wealth when market cycles turn bullish, as you’ll have more assets left to participate in future growth.

Stress Reduction, Too Defensive funds may have non-mathematical attributes as well. Historically, bear markets have proven to be buying opportunities. Stock prices are “on sale,” after steep declines. Yet, many investors sell during downturns and subsequently are late to get back in, forgoing potential profits. This sort of selling may be less likely after, say, a 10% decline in asset values than with a 20% drop.

If you decide to seek a fund with a good record of playing defense, see if the manager or managers who held down losses during bear markets are still in place. Read the fund’s materials to find out if its investment philosophy meshes with yours, or discuss the fund’s approach with your investment adviser.

When stock market records are falling regularly, patience and prudence can pay off. continued on page 70

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Financial Management continued from page 69

F

Small Companies Need Plans for Natural Disasters

rom East Irma Coastimpaired to West electricity Coast, hurriHurricane canes andof wildfires created for millions users inrecently Florida and huge losses of lives, property, and surrounding states.InIf the youmiddle have a of the emotional wellbeing. generator that can supply emergency United States, crippling natural disasters canpower rangefor from blizzards to river floodcritical usage, that can reduce s an to tornadoes.

News reports naturally time operations cease altogether. ore the ingthe focus on homes and families, but Again, during and immediately local based businesses also are among the victims. after a disastrous event, it’s vital for rates in There may be little a small company employees have at home so t store can do whentoit’s in power the path of record theyorcan go on theirHowever, lives andthere lace. winds a wall ofwith flames. get some work Yourwhen one areperhaps steps a business ownerdone. can take things are calm toinform reducekey thepeople impact of company might elated catastrophic conditions in the future. about sources of backup power and even re easier Be aSure About Insurance provide financial incentive to have a ces For example,generator relevant insurance should be in residential installed.

These steps can serve as part of a natural disaster plan. To create a ng high complete course of action, take on the wer lines. role yourself or assign an employee to

ere are y keep even in

place. Whether you rent or own the facilities you use, you should adequate property insurance head thishave effort.

The leader’ s first job from a well-established company. Business interruption might be to find a local consultant or coverage may provide cash if revenue producing opother are expert to create formal policy erations curtailed for any alength of time.

Your firm also may obtain special food or earthquake for your company. Asking your own insurance (or both) if that’s deemed necessary. company’ s executives and staffers for You probably won’t have the time or the inclination can lead toyou valuable input tosuggestions evaluate all the coverage might need.

Therefrom all areas of the firm.continued Once a on page 71

plan has been adopted, it should be circulated to all employees so they know what to do and who to contact in case of a true emergency. g

TAX CALENDAR until February 12 to file the return.

For Social Security, Medicare, and withheld income tax, file Form 941 for ur estimated tax for 2017 if you did the fourth quarter of 2017. Deposit and pay any undeposited tax. If your tax Successful start with reliable, r through withholding (or did not pay projects liability is less than $2,500, you can pay it in full with a timely filed return. high quality materials 1040-ES. This is the final installment If you deposited the tax for the year in full and on time, you have until Aggregate Industries, our experienced and dedicated employees work hard to deliver unver, you don’t have toAtmake this payment February 12 to file theWe return. surpassed value to our customers and communities. are committed to providing you the any tax due by January 31, 2018. expertise and quality materials required to ensure your projects are successful.

For federal unemployment tax, file Form 940 for 2017. If your undeposited - Liquid Asphalt dicare, withheld income- Asphalt tax, and tax is $500 or less, you can either pay it with your return or deposit it. If it Contracting Services Ready Mixed Concrete tax for payments in December 2017 if is more -than $500, you must deposit it. However, if you already deposited Paving Services - Aggregates the tax for the year inPlaning full and on time, you have until February 12 to file the - Milling/Cold Services - Recycled Products - Soil Remediation return.

For more information please contact the Aggregate Industries Northeast Region Office ation statements (Forms 1099) to www.aggregate-us.com FEBRUARY 2018 at (781) 941-7200. made during 2017. Payments that February 15 ompensation for workers who are not All businesses. Give annual information statements (Forms 1099) to nd other corporate distributions; recipients of certain payments you made during 2017. Payments that are 70 retirement plan “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” JANUARY, 2018 ing distributions; covered include (1) amounts paid in real estate transactions;(2) amounts ts; prizes and awards; medical paid in broker and barter exchange transactions; and (3) payments to

Power Play

Financial Management continued from page 70 fore, you should work with an experienced agent or insurance consultant who can provide expertise. This professional also can suggest the scope of personal insurance needed by you and your employees, payable after a natural disaster. In the wake of a dreadful event, the less time people spend worrying about personal losses, the sooner your firm can get back to operating at full speed.

Staying Online Business interruption policies may or may not cover problems that disable information technology systems, which are vital to many small companies.

Special cyber policies might be available. Besides insurance coverage, there are things you can do to proactively keep data and other records intact, even in worst case scenarios.

Backing up computer files is an obvious yet vital procedure. Store the backups offsite or use a cloudbased solution. If your company operates in different areas, one place might store backup records for the other place. Some small companies have gone from desktop computers and related accessories to laptops, which are easier to move quickly, if circumstances require swift action.

As we’ve seen, some storms bring high winds that can bring down power lines. Hurricane Irma impaired electricity for millions of users in Florida and surrounding states. If you have a generator that can supply emergency power for critical usage, that can reduce the time operations cease altogether.

Again, during and immediately after a disastrous event, it’s vital for employees to have power at home so they can go on with their lives and perhaps get some work done. Your company might inform key people about sources of backup power and even provide a financial incentive to have a residential generator installed.

These steps can serve as part of a natural disaster plan. To create a complete course of action, take on the role yourself or assign an employee to head this effort. The leader’s first job might be to find a local consultant or other expert to create a formal policy for your company. Asking your own company’s executives and staffers for suggestions can lead to valuable input from all areas of the firm. Once a plan has been adopted, it should be circulated to all employees so they know what to do and who to contact in case of a true emergency.

Reprinted from CPA Client Bulletin. n

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

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

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Advertisers’ Index ATS Equipment, Inc. .............................................................12 Acme Shorey Precast Co., Inc...............................................50 Aggregate Industries - N.E. Region.......................................70 American Shoring, Inc........................................ Ins. Back Cvr. AQUAREHAB USA Inc...........................................................71 Boro Sand & Stone Corp.......................................................60 Brennan Consulting...............................................................59 Dennis K. Burke, Inc..............................................................27 C&S Insurance Agency.........................................................10 Core & Main.............................................................................2 Dagle Electrical Construction Corp.......................................14 Darmody, Merlino & Co., LLP................................................56 Dedham Recycled Gravel......................................................62 DeSanctis Insurance Agency, Inc. ........................................67 Dig Safe System, Inc.............................................................25 The Driscoll Agency ..............................................................37 EJ...........................................................................................60 Eastern Pipe Service, LLP.....................................................66 Eastern States Insurance Agency, Inc..................................55 Eastpoint Lasers, LLC...........................................................62 T. L. Edwards, Inc..................................................................56 Equipment4Rent....................................................................60 Ferguson Waterworks............................................................42 Genalco, Inc...........................................................................69 Gorilla Hydraulic Breakers.....................................................66 L. Guerini Group, Inc..............................................................64 HD Supply Const. & Industrial White Cap.............................46 A. H. Harris Construction Supplies........................................39 Hinckley Allen LLP.................................................................32 JESCO...................................................................................21 P. J. Keating Company...........................................................22 Kenworth Northeast...............................................................17 P. A. Landers, Inc...................................................................16 Lawrence-Lynch Corp............................................................64 Lorusso Corp..........................................................................66 Lorusso Heavy Equipment, LLC............................................18 MBO Precast, Inc...................................................................13 Mabey, Inc..............................................................................68 Mass Broken Stone Company...............................................65 McGill Hose & Coupling, Inc..................................................58 Milton CAT..............................................................................28 Minuteman Trucks, Inc...........................................................42 Norfolk Power Equipment, Inc.................................................9 North American Crane & Rigging LLC....................................6 North East Shoring Equipment, LLC.....................................56 Ocean State Oil........................................................................9 Palmer Paving Corp............................................................... 11 E. H. Perkins Construction Co., Inc.......................................72 Podgurski Corp......................................................................64 E. J. Prescott, Inc................................................Ins. Front Cvr. Rain For Rent-New England....................................................8 Read Custom Soils ...............................................................68 Ritchie Bros. Auctioneers......................................................30 Rodman Ford Sales, Inc........................................................36 Rogers & Gray Insurance......................................................38 Schmidt Equipment, Inc............................................. Back Cvr. Scituate Concrete Products Corp..........................................24 Scrap-It, Inc............................................................................51 Shea Concrete Products, Inc. ...............................................40 SITECH New England............................................................52 Smith Print..............................................................................68 Starkweather & Shepley Ins. Brokerage, Inc.........................19 Taylor Oil Company..................................................................7 Tonry Insurance Group, Inc...................................................65 Travelers.................................................................................20 United Concrete Products......................................................58 United Rentals Trench Safety................................................54 Webster One Source.............................................................26 C. N. Wood Co., Inc. ...............................................................4 Woodco Machinery, Inc.........................................................48 Xylem Dewatering Solutions Inc............................................31

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