June 2015 CO web by Ucane

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

JUNE, 2015

UCANE’s 41st A nnual Scholarship Awards Night If you can imagine it, you can achieve it. If you can dream it, you can become it. ~ William Arthur Ward

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IN THIS ISSUE

OFFICERS President TONY BORRELLI Celco Construction Corp. President Elect JOHN OUR Robert B. Our Co., Inc. Treasurer PAUL SCENNA Albanese D&S, Inc. Secretary RICHARD PACELLA, JR. R. M. Pacella Inc.

BOARD OF DIRECTORS MARCELLA ALBANESE Albanese Bros., Inc. VINCENT BARLETTA Barletta Heavy Division NICK BIELLO J. D’Amico, Inc. KEVIN COLE J. F. White Contracting Co. STEPHEN J. CONNOLLY ATS Equipment, Inc. MAUREEN DAGLE Dagle Electrical Const., Corp. THOMAS DESCOTEAUX R. H. White Const. Co., Inc. ALEX DUNN Travelers GREG FEENEY Feeney Bros. Excavation, LLC JERRY GAGLIARDUCCI Gagliarducci Construction, Inc. PHIL JASSET Honorary Board Member AL MORTEO FED. CORP. JOSEPH PACELLA RJV Construction Corp. BRIAN RAWSTON Jay Cashman, Inc. KENNETH STEVENS A. H. Harris Construction Supplies PAUL A. UMBRO Umbro & Sons Construction Corp. CHRIS VALENTI GVC Construction, Inc. DAVID ZOPPO R. Zoppo Corp. ANNE KLAYMAN Executive Director

3 President’s Message:

Slowly but Surely Underground Water & Sewer Infrastructure Problems are Coming to the Surface

7 Legislative Update:

• Joint Committee on Revenue Holds Hearing on Water Infrastructure Funding Initiative • MassDEP Publishes Proposed Interim Soil Management Standard • Mayor Walsh Signs Diesel Retrofit Ordinance • Baker-Polito Administration Announces $800,000 for Innovative Water Projects • Recent Water Main Breaks Highlight Much Work Remains to be Done to Address the Commonwealth’s Water Infrastructure • House and Senate Set to Negotiate FY16 Budget Proposals

19 UCANE Interview:

Senator Michael Moore, (D-Millbury)

27 Legal Corner:

Mass. Appeals Court: Variations in Estimated Quantities are not Change in Character of Work that Would Entitle Public Contractors to Compensation Under Latent Subsurface Conditions Statute

31 Spotlight on Cape Cod:

County, Town to Discuss Cleanup of Contaminated Wells

34 UCANE’s 41st Annual Scholarship Awards Night 49 Technology in Construction:

Backups and the Importance of Running and Managing Them

51 OSHA Confined Spaces in Construction: Sewer Systems 55 Safety Corner:

One Size Fits None When it Comes to Safety Training

58 Know Your Job: Become an All-Star Team Member 61 Financial Management:

• Winning Social Security’s Waiting Game • Control the Costs of Weddings in Your Family • Keep Your Company After a Divorce

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Graphic Designer: Sherri Klayman Construction Outlook Chairman: Tony Borrelli Editorial Board: Tony Borrelli, John Our, Paul Scenna, and Richard Pacella, Jr. 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; E-mail: aklayman@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff. Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Abington, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

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Slowly but Surely Underground Water & Sewer Infrastructure Problems are Coming to the Surface I hope the sounds of excavators and dozers are filling the air on your jobsites and that this summer is finding everyone busy. Feedback from our members has been mostly positive regarding the projects that were put out to bid this past winter and spring. Getting the most attention this year are water projects. The number of water projects is up. That is definitely a good sign because it is an indicator that municipal and state drinking water resource managers are very aware that long overdue replacement and repairs are necessary to keep their systems operating at maximum efficiency.

e know that Governor Baker is keenly aware of the situation. His focus is on improving and expanding the Massachusetts economy, and that means a modern underground system of water and sewer pipelines must have sufficient capacity and reliability to attract business and to provide economic growth. These pipelines are also necessary to safeguard our environmental resources across the State, but especially in historically rich Boston, along our coastline, and on Cape Cod, which are primary tourist destinations. However, mostly these pipelines are instrumental in providing public health benefits and public safety benefits to the vast majority of the State’s population. The legislature should also be applauded because they are doing their share to work towards a long term financing plan. Even with a huge state budget deficit looming, Governor Baker, with the all-important support from the legislature, passed a budget that maintained State funding for the SRF (State Revolving Loan Fund Program) at last year’s levels. Although some communities may opt to fund infrastructure projects on their own, the SRF low interest loan program funds the vast majority of water, sewer, and CSO projects throughout the state. This was a very important act by Massachusetts elected officials because it shows the priority being given to our underground infrastructure. A frightening example of how much we rely on our underground pipeline systems was played out in Brockton last month when an outdated (1933 cast iron pipe) JUNE, 2015

water main broke unexpectedly. Over 100,000 people in Brockton and nearby Whitman and Hanson were suddenly without water. Much more than just an inconvenience, this break forced the closing of Brockton Public Schools, closed dozens of businesses and restaurants, necessitated the distribution of 7,000 cases of bottled water, wasted millions of gallons of clean water, and postponed 25 elective surgeries at Brockton Hospitals. All this, and the Brockton DPW had the water main repaired and back in service in about 24 hours. Imagine if the outage was longer? Brockton was quite fortunate not to have had a major fire during that period, which could have made this disaster much worse. After the pipe repair was completed the residents, businesses, and hospitals were under a boil water order for two more days, and suffered through the rusty water effects, before things got back to normal again. Similarly, last month in Boston another broken water main flooded part of the City. This time the water took out telephone and internet lines to over 10,000 customers including 3,200 businesses. Service was interrupted for nearly 24 hours to Beth Israel Hospital and Tufts Medical Center in Boston as well as the Metro-West Medical Center and the Framingham Police Station. The effects extended to Western Massachusetts where the Westfield Police Department was without service as well as Mount Holyoke College, just to name a few. continued on page 5

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President’s Message continued from page 3 These are just two of the many examples of water main breaks causing businesses and educational facilities to close and the public to alter their daily routines. But there is a long way to go before all the problems can be resolved. If the State’s lost business tax revenue and additional personal expenses incurred by the public during these water main breaks were calculated, the amount would be in the hundreds of thousands of dollars. Multiply this amount by 100 or 200 breaks each year across the state and the costs run into the millions.

Governor Baker and the legislature are well aware of the $21 billion gap that exists between needs and current funding levels when it comes to Massachusetts water and sewer systems. They know that cities and towns can’t shoulder this burden on their own. Through Chapter 259 of the Acts of 2014, the legislature approved the creation of a Special Commission of stakeholders to address this need, and UCANE stands ready to work on this Special Commission to help propose solutions in a legislative format. n

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Joint Committee on Revenue Holds Hearing on Water Infrastructure Funding Initiative

he legislature’s Joint Committee on Revenue held a public hearing on House Bill 2516, An Act Relative to the Massachusetts Clean Water Trust, on Tuesday, June 2. The legislation, filed at the request of UCANE by Representative Sean Garballey, would create a small, but significant, funding mechanism to begin addressing the $21 billion water infrastructure funding gap identified by the 2012 report of the Massachusetts Water Infrastructure Financing Commission. In testifying about the legislation, Jeff Mahoney, Assistant Executive Director of UCANE, argued that House Bill 2516 recognizes the partnership needed to address the Commonwealth’s water infrastructure needs. In doing so, the legislation creates a mechanism through which property sales would result in a small percentage (10 cents for every $1,000 of the purchase price of property) of funding being delivered to the Massachusetts Clean Water Trust (MCWT) for the purpose of making more lowinterest loans, technical assistance, and principal forgiveness available to municipalities and regional authorities in the Commonwealth. A small one-time transaction fee will generate new funding for the Commonwealth to maintain and upgrade the Commonwealth’s water infrastructure. By depositing these funds in the MCWT, the revenue derived from this legislation will directly contribute to water infrastructure improvements. As property values are intrinsically tied to the availability and condition of water infrastructure systems, the legislation seeks to underpin the future growth of real estate values, the environment and economic

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development opportunities. In continuing his testimony, Mr. Mahoney highlighted the fact that in 2013, there was over $44 billion in real estate sales in the Commonwealth. Little, if any, of the $44 billion tied to property sales transactions directly or indirectly supported existing water infrastructure, despite critical, identified needs. Mike Lenihan also testified on behalf of UCANE offering the perspective of contractors who work to provide clean water and working sewer systems throughout the Commonwealth. Mr. Lenihan highlighted the need for water infrastructure investment – particularly in light of recent municipal breaks in Brockton and Boston. Finally, Abbie Goodman, Executive Director of the American Council of Engineering Companies of Massachusetts, testified in support of House Bill 2516 citing the need identified by the Water Infrastructure Finance Commission and the work of the Water Infrastructure Alliance, co-chaired by ACEC/MA and the Massachusetts Water Works Association. House Chairman of the Joint Committee on Public Service, Representative Jay Kaufman, acknowledged the need to address water infrastructure, but cautioned that the Committee had not released a real estate surcharge bill in a number of years. That said, Chairman Kaufman did express interest in working with the Committee to see if there might be interest in doing so this session. UCANE will be meeting with key legislators and policy makers in the coming months in an attempt to advance a water infrastructure funding mechanism. continued on page 9

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Legislative Update continued from page 7

MassDEP Publishes Proposed Interim Soil Management Standard

n following up on the mandate established relative to soil management governance contained in Section 277 of the FY15 budget, the Massachusetts Department of Environmental Protection (DEP) has prepared a draft Interim Policy on the Re-Use of Soil for Large Reclamation Projects. In seeking comments by June 17, the DEP anticipates finalizing the Interim Policy by June 30, 2015 in accordance with Section 277 of Chapter 165 of the Acts of 2014. As proposed, the interim policy lays out an initial strategy for obtaining site-specific approval from DEP for the reclamation of quarries, sand pits, and gravel pits using more than 100,000 cubic yards of soil. According to the DEP, the proposed approach has been “successfully implemented on a case-bycase basis to allow operations to begin accepting large volumes of soil as fill.” The policy attempts to provide clarity on the types of locations that would require approval and the nature of the documenta-

tion/information necessary for DEP to sign-off on the reclamation project. The policy will remain in effect while the Department continues to work with stakeholders to develop a comprehensive approach to implement Section 277. As you may recall, the initial scope of Section 277 was far broader than what was originally passed into law. UCANE has expressed concerns about the scope of the soil management regulations throughout the process as it is becoming increasingly more difficult for contractors to find locations for the disposal of soil excavated from contracted projects. For a copy of the draft Interim Policy, please visit: www.reclamationsoil.files.wordpress.com/2015/05/ draft-interim-soil-policy-comm-15-01-may-27-2015. pdf. Comments on the draft policy can be sent to Mr. Paul Locke, Director of the DEP’s Division of Response & Remediation at Paul.Locke@state.ma.us by June 17, 2015. continued on page 11

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Legislative Update continued from page 9

Mayor Walsh Signs Diesel Retrofit Ordinance

oston Mayor Martin Walsh recently signed a proposed ordinance passed by the Boston City Council in late May. The new ordinance, which applies to contracts with a value of $2 million or greater, will apply to all City of Boston contracts signed after July 1, 2015. The ordinance, filed by City Councilor Stephen Murphy, was heard before the Boston City Council’s Government Operations Committee on April 28. UCANE, along with the Massachusetts Motor Transportation Association, testified at the public hearing about the potential impacts the original proposed ordinance

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would have on both off-road and on-road fleets. To the credit of officials from the City of Boston, Councilor Murphy and Government Operations Chairman Mike Flaherty, a subsequent meeting was held with both groups to address potential areas of concern. As a result, the newly passed ordinance will now allow for the use of “manufacturer certified” diesel retrofit technology in addition to “EPA-verified or CARBverified” technology. If a contractor has not installed a diesel oxidation catalyst (DOC) to the required vehicles (i.e., pre-2007 vehicles), the requirement to install best available retrofit technology (BART) after July 1, 2017 will not apply if the e r m u o p y l o p y e e e e installation of BART will cause a viok s on , site oney m e r m u o p y l lation of worksite safety laws. (Note: o p y e ees o s ey, ke n si with ei a DOC or similar device must still be te w m s mon ith ei installed.) Recognizing that certain m vehicles are used by deliverymen and not subcontractors, the ordinance contains an exemption for on-road trucks only used for delivering goods or products to the City of Boston. Finally, the ordinance contains a 30 day exemption for none d contractor owned vehicles although u l c s in aper t i the City of Boston may reconsider n All u toiletcp udheand l the allowance at its discretion. 1 0 n y % off y ssper our fir 2-pulnitsteirlep 6 mon a s t th a l s . The final ordinance reflects l if you me Aand wtoileittizer and ntion is h 1th n 1 0 b 0 y % r a % o l s years of work by Councilor Murphy c o s o h s f 2-p 6 mo6nm fff youurre!first terle er. thosnifthys a and the Alternatives for Community w o if um yo mtehnistio and sanitiz bnrotchhisu euntion and Environment. The original ordiraed! ! nance proposal in 2011 would have required best available retrofit technology for all off-road and on-road vehicles as well as applied to any City of Boston contract in excess of $500,000 without many of the clarifications and exemptions contained in the 2015 ordinance. UCANE would like to specifically acknowledge Councilor Mike Flaherty who brought all the parties together to further improve the ordinance during the legislative process. UCANE members John McAteer of J. F. White Contracting Co. and Steve Connolly of ATS Equipment, Inc. were also instrumental in seeing the concerns of contractors addressed throughout this process. For more information about this ordinance, O. Box 115 • Centerville, MA 02632 please visit: http://www.ucane.com/ P.O. Box 115 boston-diesel-ordinance/ Centerville, MA 02632 continued on page 13

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Legislative Update continued from page 11

Baker-Polito Administration Announces $800,000 for Innovative Water Projects

ccording to a recent press release, the Massachusetts Executive Office of Energy and Environmental Affairs (EEA) announced $800,000 in funding available for innovative water projects in the Commonwealth. In addition to the funding, the EEA released its findings of the Massachusetts Water Technology Industry Roadmap. The announcements were made at the Symposium on Water Innovation in Massachusetts (SWIM), an annual gathering of industry professionals and stakeholders hosted by the New England Water Innovation Network (NEWIN). Under a partnership between the MassDEP and Massachusetts Clean Energy Center (MassCEC), the funding, originally authorized in the Water Infrastructure Bill passed by the Legislature in 2014, will assist municipal wastewater treatment plants in their efforts to adopt energy efficient and innovative treatment technologies and will support the development of a water technology demonstration network. The funding, which was originally greater

than $800,000, was pared back as a result of “9C” cuts earlier in the year. In announcing the findings of the Massachusetts Water Technology Industry Roadmap, EEA and MassCEC reported that Massachusetts is a potential national leader in this burgeoning industry. The report, commissioned by MassCEC and completed by the Battelle Memorial Institute, found that Massachusetts is uniquely positioned to meet the world’s water challenges due to its high levels of research activity and strong innovation infrastructure. The Roadmap, which estimates Massachusetts’ water technology sector as a $1.7 billion industry with 93 companies and more than 5,200 employees, offers targeted measures to ensure that the Commonwealth is on the path to becoming a major global water technology center. To review the Massachusetts Water Technology Industry Roadmap, please visit: www.masscec.com/ waterroadmap. continued on page 15

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Legislative Update continued from page 13

Recent Water Main Breaks Highlight Much Work Remains to be Done to Address the Commonwealth’s Water Infrastructure

s reported by many media outlets, massive water main breaks in different areas of the Commonwealth at the end of May left thousands of people with little or no water, opened up a sinkhole that nearly swallowed a pickup truck, and knocked out telecommunications and internet service for major corporations and hospital systems. Among the incidents: • A 24-inch pipe ruptured in East Bridgewater, disrupting the water supply to neighboring Brockton and Whitman. Brockton Hospital was forced to cancel non-emergency surgeries, medical procedures, and patients and employees were unable to flush its toilets. The Massachusetts Emergency Management Agency instituted a boil water advisory for those communities, urging residents to not use tap water for drinking or cooking. The break also affected water service for some homes and businesses in East Bridgewater, Hanson, and Pembroke.

• A broken water main in Boston disrupted highspeed Internet and telephone services for some 10,000 Windstream customers throughout the state. Those who lost telephone services in Western Massachusetts included the Westfield Police Department, Mount Holyoke College in South Hadley and The Republican newspaper. It was reported that phone service for Tufts Medical Center and Beth Israel Deaconess Medical Center was also disrupted. The water main break flooded critical equipment at 230 Congress Street. As further water main breaks occur, municipalities and ratepayers will need to develop short- and long-term plans for addressing their crumbling water infrastructure. In the cases highlighted above, the damage caused by the water main breaks likely exceeded the costs associated with maintaining or improving the existing water infrastructure systems. continued on page 17

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Legislative Update continued from page 15

House and Senate Set to Negotiate FY16 Budget Proposals

he Massachusetts Senate finished their FY16 budget debate the Friday preceding Memorial Day weekend. The $38.1 billion budget proposal, which included a MBTA control board compromise allowing for a five-member control board to be given management authority over the T for at least three years, highlighted a budget process praised by many for its “real time” reporting of amendments. In passing its budget, the Senate diverged from the Massachusetts House of Representatives by stopping the reduction of the income tax at 5.15% to pay for an increase in both the earned income tax credit and personal tax exemptions. The Senate also included a “tax equity” piece, which would tax flavored cigars in the same manner as other similar tobacco products.

to address their water infrastructure needs, the House funded the program at $1.1 million, while the Senate did not fund the item. In terms of funding the administration of the Massachusetts Department of Environmental Protection, the House provided approximately $300,000 more than the Senate in providing $29,498,619. The House and Senate both recently assigned members to a FY16 Conference Committee. The Conference Committee includes House Ways and Means Chairman Brian Dempsey, House Vice Chairman Steven Kulik, Ranking Minority Member Todd Smola, Senate Ways and Means Chairwoman Karen Spilka, Senate Vice Chairman Sal DiDomenco, and Ranking Minority Member Viriato deMacedo. A final FY16 budget proposal will be submitted to the Governor upon agreement by the Conference Committee. n

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Senator Michael Moore (D-Millbury)

Q: A:

Please give our readers some insight into your background and how you got involved in politics.

I was born and raised in the town of Millbury, and I have been involved in public service for all of my adult life. After graduating from Western New England College with a degree in Criminal Justice, I began my career in law enforcement. I started with the Environmental Police Department, working under the Attorney General’s Environmental Strike Force. During that time I investigated crimes posing a threat to the environment and public health. We were often dispatched to investigate crimes specifically related to the contamination of water infrastructure by large corporations. The position exposed me to the devastating effects that can derive from environmental crimes, and the experience has served me well in the legislature. In 2001, I was elected to the Millbury Board of Selectmen, where I served for three terms. Serving as a selectman in my hometown was extremely rewarding, and I greatly enjoyed the opportunity to directly address the needs of my friends and neighbors. While serving on the Board, my priorities included enhancing public safety, and improving economic development. I was reelected to the board in both 2004 and 2007, during which time The Shoppes at Blackstone Valley opened, representing the largest economic development project in Millbury history. In 2009, I ran for a seat in the State Senate, representing Millbury, part of the city of Worcester, and five other communities in southcentral Massachusetts. Since taking office I have continued to prioritize public safety and economic development, especially small businesses and municipalities that are still struggling with effects of the recent economic downturn. I am currently Senate Chair of the Joint Committee on Higher Education, and Vice-Chair for the Joint Committee on Public Safety and Homeland Security.

Representing a geographically diverse Senate district with both large and small municipalities, you are aware that access to clean drinking water is critical and that the debt burden on municipalities interferes with their ability to make needed improvements to water infrastructure. Please tell us your thoughts relative to the importance of maintaining the infrastructure that transports clean drinking water.

JUNE, 2015

The challenges associated with maintenance and improvement of water infrastructure can vary widely. At the state level, our efforts to ensure clean, safe water must reflect the range of these issues. My own district includes over 160,000 people living in seven diverse communities, with unique needs for their own water infrastructure. Of those seven communities, five operate under independent, municipal water authorities. One town, Millbury, contracts a private company to supply the town. I also represent the city of Worcester, which operates its own system with some assistance from the Massachusetts Water Resources Authority (MWRA). These systems have each been established by the municipality to address their own distinct needs. While methods vary widely, they share a mission to deliver suitable water services to their customers. As a former selectman, I am keenly aware of how the ability to provide clean water can have far reaching affects. First, clean water is an essential component of public health with the potential for serious issues if standards are not met. Water access is also increasingly influential for economic development, as businesses and individuals seek locations with reliable and affordable water access. Additionally, water infrastructure maintenance can have far reaching consequences for everyday life. Water main breaks and sewage leaks can cause extensive damage to other parts of local infrastructure and require customers to undergo burdensome processes to access clean water. continued on page 21

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Interview continued from page 19 Water infrastructure is an essential service for every single resident of the Commonwealth, regardless of size or geographic location. Often times smaller communities and those outside of eastern Massachusetts are even more vulnerable to unexpected costs associated with water infrastructure maintenance. During debate over the water infrastructure bill last year, I filed an amendment that expanded access to an important pool of water infrastructure funding. Before the amendment was adopted, communities who were part of the MWRA were eligible to receive state funding for work done on sewer collection systems. However, non-MWRA communities who experienced similar costs and issues were not granted the same privileges. The amendment made all communities in Massachusetts eligible for these reimbursements. The sewer collection system improvements are often associated with economic development opportunities within communities, and the amendment restored some equity to the system.

Massachusetts, along with the rest of the country, continues to rebound from difficult economic times. Please give us your thoughts on how the state will continue to address these difficult financial issues and the importance of finding novel ways to drive local aid to cities and towns to help support basic municipal services, specifically maintenance and needed improvements to our water infrastructure.

There is no doubt that cities and towns across the Commonwealth have been hit especially hard by the recent economic struggles. Many have seen a downturn in tax revenue during a time when state and federal assistance also fell. This presents a serious dilemma for municipalities, which are often forced to sacrifice one service to pay for another. Unfortunately, infrastructure issues that are largely taken for granted are often the first to lose their investment. As demonstrated by the tremendous failure of the MBTA this winter, these costs cannot be ignored without consequence. In fact, ignoring these essential services often results in the need for drastically more expensive and obstructive remedies in the future. I believe that the best way to ensure our water infrastructure can meet the growing demands of our system, regardless of outside circumstances, is to treat water infrastructure like the critical investment it is. By implementing a long-term plan that addresses health risks and future development potential, we can help avoid significant and unseen issues that require more expensive and obtrusive responses.

The Legislature passed and Governor Patrick signed landmark water infrastructure legislation last session. Can you share your thoughts about Chapter 259 of the Acts of 2014? On what areas relating to water infrastructure maintenance and financing do you believe the Legislature still has work to do? continued on page 23

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Interview continued from page 21

I was an avid supporter of the water infrastructure legislation that was passed last year. My time on the Millbury Board of Selectmen gave me vital insight into the problems facing communities across the Commonwealth. After researching and debating the issue in the legislature, I had a much greater understanding of the challenges to our water infrastructure at the state level. Massachusetts has one of the oldest water infrastructure systems in the country, and the failure to address these issues could have disastrous consequences for our residents. At the time, experts estimated that the state faced a $21 billion water funding gap over the next 20 years. The 2014 bill was the product of tremendous hard work from legislators, local officials, experts and stakeholders alike. The legislation took important steps to improve the statutes governing water infrastructure, including simplifying regulatory burdens associated with Title V, and encouraging cooperation between multiple public agencies and private partners. It also required the Massachusetts Clean Water Trust to consult with the Division of Local services to establish and publish guidelines for best management practices concerning water infrastructure. The bill also expanded local control under a provision that allows communities, as a local option, to establish a water surcharge of up to three percent to be used to repair aging water infrastructure. I would like to see the legislature continue this trend, and further improve the ability of municipalities to take action on their own water systems. Additionally, due to the importance of water infrastructure to nearly every facet of daily life, it is important to pursue improvements wherever possible. For instance, the legislature also passed an environmental bond bill last session, which included $75 million to assess and monitor waterways, and another $117 million to fund improvements. It also included $49 million for the Dam Loan Fund for emergency repair of at-risk dams that could have serious effects on public health. The water infrastructure and environmental bond bills will help address the massive deficit in water infrastructure spending, but they only represent the first step. We must commit to making water infrastructure a priority every year as there remains a significant gap between the needs of our infrastructure and our current spending. Without committing to greater improvements, we will face even more expensive and damaging issues for decades to come.

Recognizing that municipalities sometimes face mandates from the United States Environmental Protection Agency or the MassDEP, you have filed legislation designed to protect municipalities. Can you discuss this legislation?

Any involvement in water infrastructure issues comes with the understanding of how much federal and state regulations can impact local systems. These regulations govern every facet of the system, from public

JUNE, 2015

drinking water, wastewater collection and treatment facilities, to storm water management. Compliance measures can cost these communities millions of dollars, and can devastate a municipality’s ability to plan and budget for improvements. In my own district, the City of Worcester has seen its water and sewer costs increase by 94% since 2004. The costs often remain hidden until the rules are in place, and municipalities have little to no ability to offer input about cost considerations. This year I have filed a bill that would relieve some of the burden currently forced upon our communities. The bill is titled S.448, an Act to assist municipal and district ratepayers, and would establish a common sense, cost-based review of all rules, regulations, or guidelines issued by state environmental agencies. The bill requires the Executive Office of Energy and Environmental Affairs to examine any rule that will potentially result in the imposition of additional costs on municipalities as a local mandate. They would then submit a report describing the problem, methodology, stakeholders, and the immediate and long-term costs associated with implementation. This review mechanism will analyze the costs, benefits, and financial implications of proposed environmental regulations before they take effect. This will encourage agencies to promulgate rules that are cognizant of the costs to communities across the Commonwealth. The process will help ensure that public funds at the local and state level will be used as efficiently and effectively as possible. continued on page 25

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Interview continued from page 23

As the Senate Chairman of the Joint Committee on Higher Education, can you describe some of the initiatives you have worked on to make education more affordable for working families?

As Senate Chair of the Joint Committee on Higher Education, I spend much of my time focused on the issues facing the Commonwealth’s higher education system, as a whole. As part of the higher education community, my first priority is preparing the students of the Commonwealth for a productive and successful life after graduation. We rely on these schools to groom future leaders in business, public service, and the community. In recent years, Massachusetts has embraced an innovation economy, characterized by businesses in life sciences, biotechnology, and advanced manufacturing. These industries, poised for success in our quick-shifting economy, share the need for a skilled, educated workforce that Massachusetts’ colleges and universities provide. Despite our existing world-renowned institutions, the Commonwealth will face a severe deficit of qualified workers within the next 10 years. This has driven us to pursue policies that expand higher education opportunities and provide students with the necessary tools for success. In recent years, the legislature has established the Duel Enrollment Partnership and STEM Starter Academies, which propel underrepresented students into college courses. We have also expanded access by attacking the costs that create a barrier for too many hard working families in Massachusetts. One example of this work is the Massachusetts Educational Opportunities Association, which connects students and their families to educational assistance that fits their needs. Many of these programs are comprehensive efforts to create a more affordable and manageable path to in demand careers. One such program is the UMass 50/50 plan, which created a vital partnership between the Commonwealth, students, and their families. If a student’s family provides fifty percent of the total costs for attending a UMass institution, the state matches their contribution. Just a few months ago, we announced a new partnership between two community colleges and two state universities that use their combined resources to eliminate financial barriers to college completion. The 30k Commitment program offers seamless transitions from community colleges to our state university program in high demand fields. For less than the cost of a single year at most private schools, students on track for a timely graduation, will leave with the skills necessary to pursue a rewarding career, but without the burden of excessive student debt. We’ve also taken steps to increase the individual student aid, to offer relief for families facing the exploding costs of higher education. As we begin Higher Education Committee hearings this summer, I look forward to continuing this work. Not only does it serve to benefit the students pursuing a degree, but their families, and the entire Commonwealth. n

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Mass. Appeals Court: Variations in Estimated Quantities are not Change in Character of Work that Would Entitle Public Contractors to Compensation Under Latent Subsurface Conditions Statute Massachusetts General Laws Chapter 30, Section 39N entitles public contractors to an equitable adjustment if, during the progress of the work, the contractor or the awarding authority discovers that the actual subsurface or latent physical conditions on the site differ substantially or materially from those shown on the plans or in the contract documents. In a recent decision by the Massachusetts Court of Appeals, the Court held that a contractor was not entitled to an equitable adjustment where the condition at issue was expressly disclaimed by the bid documents.

Background

In Celco Construction Corp v. Avon, 87 Mass. App. Ct. 132 (March 2, 2015), Celco Construction Corp. was the successful bidder on a water main excavation project for the Town of Avon. The bid documents estimated that approximately 1,000 cubic yards of rock would need to be removed, but the amount was followed by an asterisk which indicated that “an indeterminate quantity [was] assumed for comparison of bids.” Celco – along with thirteen of the other bidders for the project – assigned a unit price of one penny to its charge to excavate each cubic yard of rock from the project site. Celco underbid

JUNE, 2015

the amount of the rock excavation on the belief that less than 1,000 cubic yards of rock would be present at the site, and its low unit price would give it a competitive advantage over the other bidders. As the project progressed, Celco discovered that the quantity of rock actually present on the site exceeded the estimate in the bid documents by 1,500 cubic yards such that Celco ultimately removed a total of 2,524 cubic yards of rock from the project site. As the work was being performed, the town’s water superintendent made statements to Celco to the effect that “Celco should keep working on the project” because the “additional rock issue would be dealt with once the total quantity of rock excavated was known.” Celco subsequently sought an increase in the contract unit price for rock excavation from one penny to $220 per cubic yard on the grounds that continued on page 29

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Legal Corner continued from page 27 the additional rock was a “change in the conditions depicted by the plans and specifications.” The Town denied the claim for an equitable adjustment and Celco filed an action in Superior Court. After the Superior Court granted the Town’s motion for summary judgment, Celco appealed.

Court of Appeals Decision The Court of Appeals affirmed the denial of Celco’s claim for an equitable adjustment on the grounds that it did not fit within the purpose of Mass. Gen. Laws Ch. 30 § 39N. The purpose of the equitable adjustment statute is to remove unknown risks from the competitive bidding process so a bidder can bid knowing it will be compensated for the costs of subsurface or latent site conditions not reflected in the bid documents. According to the Court, the statute is not intended to protect contractors who decide “to bid a unit price for performance of work that is wholly unrelated to their anticipated cost to perform the work.” In reaching its decision, the Court noted that the bid documents did not specify that the site only contained 1,000 cubic yards of rock, and in fact they expressly disclaimed the accuracy of the estimate – a disclaimer that, according to the Court, anticipated a possible variance in the quantity of rock to

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be removed from the site. The Court held that since the contract price was comprised of an aggregate of line items for various elements of the work, any variance in the estimated quantity of a particular line item would not qualify as a differing or latent subsurface condition entitling the contractor to an equitable adjustment. To obtain an equitable adjustment on a line-item based contract, Celco would have needed to demonstrate a deviation in the physical character of the condition of the work, as opposed to variation in the estimated quantity. Celco additionally attempted to recover the amounts spent on rock removal based upon the representations made by the Town’s superintendent that Celco should keep working and the rock issue would be dealt with at a later point. The Court of Appeals rejected this theory as well, holding that the Town was required to make all contract awards and changes in accordance with the bidding process and the resulting contract meaning that the superintendent was not able to orally bind the Town to a price increase.

Takeaways The Celco decision clarifies that the equitable adjustment provision in Mass. Gen. Laws Ch. 30, § 39N will only be available for discrepancies in the “physical character” of the conditions at the Project site. Increases in quantities of unit price material, however substantial they may be relative to the estimated quantities in the bid documents, will not be compensable as a differing site condition under this statute. When bidding on public jobs, contractors must take note of the quantities listed in the bid documents – as well as any disclaimers regarding the accuracy of those estimates – and bid the contract accordingly. n

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County, Town to Discuss Cleanup of Contaminated Wells BARNSTABLE — Barnstable County has some responsibility for fouling two wells that serve the water supply of Hyannis, Hyannisport, and West Hyannisport and will work with the town to negotiate cleanup arrangements, according to Tom Cambareri, watershed management director for the Cape Cod Commission.

n early May, Barnstable officials closed two wells off Mary Dunn Road because of the presence of perfluorated chemicals, or PFCs, that exceeded a federal health advisory level for what are called “contaminants of emerging concern.” The closure led the town to activate a rarely used provision in the town charter to declare an emergency to allow immediate approval of a $744,000 allocation to install two carbon treatment units for the Mary Dunn well field. The town also requested an emergency interconnection with the Yarmouth water system to provide an “insurance” water supply to meet the increased needs of the summer population. At the time of the well closures, Barnstable Town Manager Thomas Lynch, in a memorandum to the town council, wrote that the source of the PFCs was identified as the Barnstable County Fire Training Academy, where foams containing the chemicals have been used for training exercises. He also wrote that the funds used to clean up the contamination at the wells would be reimbursed by the county. At the regular meeting of the Barnstable County Commissioners on May 27, Cambareri delivered a nearly 40-minute presentation that included a history of the county’s monitoring and cleanup efforts at the academy dating to the 1980s. Through the years, plumes of petroleum, chloroform, MTBE — a gasoline additive — and perchlorate have been found and cleaned up, according to Cambareri. One

JUNE, 2015

Firefighters train at the Barnstable County Fire Academy in 2000. County officials say they will work with the town of Barnstable to clean up two wells contaminated by chemicals that may have come from the training academy. Steve Heaslip/Cape Cod Times file.

of the plumes containing chloroform was found to be caused by the Cape Cod Potato Chip factory. Its owner at the time, Anheuser-Busch, paid for the cleanup. The most recent chemicals found drifting in plumes from the fire academy to the well field — PFCs and 1-4 Dioxane — have many sources, according to Cambareri’s presentation. A study produced by the Silent Spring Institute, an environmental research organization founded in 1994 to investigate elevated rates of breast cancer on the Cape, concluded high levels of PFCs in Hyannis wells are likely linked to the fire training area and Barnstable Municipal Airport. continued on page 33

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Cape Cod continued from page 31 After being told that firefighting foam is a source of PFCs by Silent Spring, the academy stopped using the chemical in 2009. PFCs and 1-4 Dioxane, according to Cambareri’s presentation, can also come from items used in everyday life, including pharmaceuticals, antibiotics, sweeteners, laundry detergent, and nonstick cookware. A date for a meeting between county and town officials to discuss the cost and responsibility of cleaning the contaminated wells has not yet been scheduled. “If we’ve got to clean it up, we’ve got to clean it up,” County Commissioner Leo Cakounes said. Despite the presence of PFCs in the two closed wells, Barnstable and state officials have repeatedly stated the water in the town’s supply is safe to drink and use. On May 27, Rob Steen, Barnstable's assistant director of public works, said conversations continue with Yarmouth on the proposed interconnection, and the public works department is working diligently to come up with a best solution to meet peak season water demands. Written by Geoff Spillane. Reprinted with permission from Cape Cod Times. n

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UCANE’s 41 Annual Scholarship Awards Night st

Always Special...Always Memorable

If you can imagine it, you can achieve it. If you can dream it, you can become it. ~ William Arthur Ward

n May 20, 2015, twelve accomplished high school graduates came forward and were recognized for their academic excellence, sports participation, community service, family support, volunteer work, and charitable endeavors. Their scholarship applications spoke volumes about their love of learning, their outreach to their community, and their desire to help others less fortunate. This was an evening to be proud of our youth. This was an evening for most recipients to hear for the first time how each impacted their teachers, family members, clergy, and mentors. That evening, UCANE members, scholarship recipients, and their families celebrated UCANE’s 41st Annual Scholarship Awards night at the Four Points Sheraton Hotel in Norwood, MA, sponsored by Allied Recycling Center, Inc. This is a night that our members always look forward to, as it is both special and memorable. In their scholarship applications, each of our recipients had written about their goals for the future. They epitomize William Arthur Ward’s quote “If you can imagine it, you can achieve it. If you can dream it, you can become it.” UCANE is proud and honored that we are able to help them achieve their goals. UCANE Executive Director Anne Klayman opened the evening’s program by expressing the pride our members take in our scholarship program. She stated, “Each of our recipients is the best and the brightest amongst their peers.

The judges have chosen 12 poised, mature, and intelligent young men and women to be honored for their hard work and commitment to their education, family, and their communities. For each recipient, tonight’s award is their recognition for many years of being the best they can be…and it is only fitting that each of them be recognized for their efforts. It is our member’s hope that these scholarships will make it a little easier for each student to reach their goal. Anne began the formal program by acknowledging Todd McDonald and Broadstone Advisors, LLC for sponsoring the evening’s keynote speaker. She said, “Every year we try to have a speaker at our Scholarship Awards Night whose life story has positive aspects, but who has overcome significant challenges, and in the final analysis provides an important lesson on perseverance, dedication, duty, commitment, and love of family. Tonight to help make this evening especially memorable, we are very fortunate to have New England Patriots Safety Nate Ebner, as our guest speaker.” Anne went on to provide some background on his career that was not initially directed toward football, but ultimately ended there…at least for the time being. Nate attended Ohio State University where he majored in Exercise Science. He did not play football his first two years of college, because he was competing internationally in the sport of rugby, where he received many awards for outstanding play.

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In his sophomore year Nate discussed with his dad the possibility of trying out for the Ohio State Buckeye football team. His father said, “Only if you intend to make it to the NFL.” Later that day, after spending time at the gym together, his dad returned to his office, and Nate returned to school. When Nate’s dad got to his office, an intruder attacked him during an attempted robbery of his business. The next day, he passed away from his injuries at the age of 53. Nate addressed the students with some advice about overcoming adversity. He said that his first love was rugby, a sport that his dad had excelled in. In the early years of training, he and his dad became inseparable and as Nate stated, “Because of rugby, our personal relationship became more than father and son…he was my best buddy…my mentor and friend. He taught me how to play the game. He taught me the importance of preparation and training. He taught me what it meant to be dedicated to the sport you love and were committed to. By example, he gave me personal and moral values. He gave me advice and everything else that is needed in life to excel.” Nate related the affect his dad’s passing had on him. He immediately went into an emotional dark, sad place where nothing mattered...family, friends, college, and least of all himself or rugby. He didn’t want to see anyone or to leave his room. This went on for some time until his mother told him to remember his dad’s words and to try and live by them. All of the things he taught Nate began to make sense and gave him new energy and purpose. Nate knew that he could honor his dad through the things he stood for and taught him. Nate began playing football in his junior year by walkingon to the Buckeyes, and was quickly considered the best special teams player. He was given a football scholarship in his senior year based on his special teams skills. In 2011, he was voted the team’s most inspirational player, receiving the Bo Rein award, and he was named the team’s best special team player, earning the Ike Kelly award. He was also a three-time Big Ten Conference all-academic honoree. He was drafted by the New England Patriots in the sixth round of the 2012 NFL Draft, and later signed to a 4-year continued on page 36

JUNE, 2015

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Scholarship Awards Night continued from page 35

Dan Browne and New England Patriots Safety Nate Ebner

contract. He continued to play primarily on special teams in 2013, and occasionally on defense. In the Patriots’ week 12 victory over the Denver Broncos, he recovered a muffed punt to set up Stephen Gostkowski’s game-winning field goal. The recovery capped a franchise-record 24-point comeback. During the 2014 season, Nate spent another year as a key special teams contributor, and won his first Super Bowl ring. From that first time on the Buckeyes special team, to now with the Patriots’ special teams, Nate has always applied himself as he did when his dad was with him. He told our scholarship recipients that not giving up on their goals when adversity happens, and in their lifetime they could expect something would happen, would require them to call on their inner strength and toughness...their dedication and their commitment, and their love of doing what they are doing. Nate’s speech was both moving and inspiring as it brought home to our recipients some of his life lessons and provided them with a roadmap to overcoming life’s “turns in the road”. Following Nate’s talk, Anne began the formal Scholarship Awards presentation by explaining that our applicants are judged in a number of areas, not just their academics. They include class standing, scholastic honors, SAT and achievement test scores, their extracurricular activities both in and outside of school, community and volunteer service, their career objective, and the maturity and presentation of

their essay. Each applicant is reviewed and graded by a committee of educators who are not affiliated with UCANE. The evening continued with the introduction of each recipient and their impressive resumes. Enthusiastic applause could be heard as each student stepped up to the podium to meet Nate, and accept his/her Scholarship Award. After the final scholarship was presented, Anne recognized a truly gifted student who was not eligible to receive a UCANE scholarship. The reason he was not eligible is that the rules of our scholarship program state, “If a winner receives a full scholarship to the college of their choice, the scholarship will be awarded to another student.” This is only the second time in 41 years since our program’s inception that this has happened. Anne stated, “We at UCANE want to recognize Dan Browne’s accomplishments and to also thank him. Through his academic excellence, he is helping another student reach their goal.” She then invited Dan to the podium and presented him with an iPad mini, as a token of UCANE’s appreciation.

Anne closed the program by congratulating our 12 outstanding scholarship recipients. She again thanked Nate Ebner, for taking time out of his busy and hectic schedule to join us and for making this such a memorable evening for our students, their families, and our members. n

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Brendan W. Adams Scholarship in Honor of Phil Bonnano

(Established by J. F. White Contracting Co.)

rendan is the son of Susan and Bruce Adams. Bruce works for Weston & Sampson Engineers, Inc. of Peabody, MA. Brendan attended Whittier Regional Vocational Technical High School where he maintained an all A average in mostly honors classes. He is ranked 18 in a class of 294 and is a member of the National Technical Honor Society.

He is active in the Boy Scouts and is a recipient of Eagle Rank, and is a Senior Patrol Leader. At school he was a member of both the cross-country and track and field teams all four years of high school. Brendan’s drafting instructor wrote, “I have had Brendan as a student for the past four years in my CAD drafting program at Whittier…I can say without hesitation that he strives harder to learn, accomplish, and master knowledge and skills within the trade than most of his peers…he has shown great potential in the field of engineering, and as a result has been placed on Whittier’s co-op program working at Chesterton in Groveland, MA.” Brendan will attend the University of New Hampshire where he will major in Computer Science and minor in Electrical Computer Engineering. Kevin Cole presented the Scholarship in honor of Phil Bonnano to Brendan.

Nicholas A. Andreassi

Tony & Anthony Umbro Memorial Scholarship

icholas is the son of Sandra and Anthony Andreassi. Anthony and his father Tony own A. Andreassi & Son, Inc. of Norwood, MA. Nicholas attended Xaverian Brothers High School where he maintained honor roll status throughout high school while taking all honors classes.

In addition to taking a demanding course of study, Nicholas was captain of Xaverian’s indoor track, outdoor track, soccer, cross country, and ultimate frisbee teams. Outside of school he took part in Habitat for Humanity, Church Senior Pursuit, Senior Service, and as a hobby he builds computers. Nick’s guidance counselor wrote, “Academically, Nick has taken the majority of his courses at the honors level… all of his teachers commented that he puts forth 110% effort in the classroom, and approaches their subject with enthusiasm…I have no doubt that he will achieve much success because he is a hard worker and an inquisitive learner.” Nick will attend the University of Massachusetts Amherst where he will major in Chemical Engineering. Paul A. and Joe P. Umbro presented the Tony & Anthony Umbro Memorial Scholarship to Nicholas.

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Youssr Attia

Steve Barlow Memorial Scholarship

(Established by J. F. White Contracting Co.)

oussr is the daughter of Sana Ali and Khaled Attia. Sana is a civil engineer at J. F. White Contracting Co. of Framingham, MA. Youssr attended Al-Noor Academy in Mansfield, MA where she maintained an all A average in mostly honors classes. She has won numerous honors and awards including a perfect GPA award, she placed third in her school-wide science fair, she received an excellence in math and science award, she is a Model United Nations club leader, she received the Girl Scout bronze, silver, and gold awards, and was published in the Max Warburg Courage essay book. Youssr has many hobbies and interests, but the greatest one by far is martial arts. She has been training in Krav Maga, Tae Kwon Do, and Muay Thai for the past 10 years, and she earned her 2nd degree black belt last December. The Dean of Students and Director of Guidance wrote about Youssr, “While it is cliché to say that someone is a poster child for your school, in Youssr’s case it is literally true. The first thing you see when entering Al-Noor Academy, New England’s first full time Islamic High School, is Youssr’s smiling face on a promotional poster.” Youssr will attend Northeastern University where she will major in Chemical Engineering and minor in Technical Writing. Marco DaPalma presented the Steve Barlow Memorial Scholarship to Youssr.

Alexander B. Czuchra

Robert DeSanctis Memorial Scholarship

lexander is the son of Lisa and Lyle Czuchra. Lyle works for Travelers of Braintree, MA. Alex attended Bishop Stang High School in North Dartmouth, MA where he was ranked 10 in a class of 173 students with a GPA of 4.04. He is a member of the National Honor Society and his extracurricular activities included being Student Ambassador President in 2014, captain of the lacrosse team, and a valued player on the soccer and basketball teams. The chairman of the science department wrote, “Alex has a very high science aptitude…as part of his AP chemistry course, Alex had to team up with another student and together design and create a toy based on chemistry concepts. The toy had to be creative, original, and marketable…Alex and his partner made a Twister-like mat that had colored spots painted with thermochromic paint. When a player put their hand on a colored spot, the heat from the player’s hand would cause the color to change to white, revealing a challenge that the student would have to complete. The game was very creative and the chemistry application thoroughly researched. His true potential, work ethic, and willingness to do what it takes to succeed became very obvious through his work on this project.” Alex will attend Worcester Polytechnic Institute where he will major in Biomedical Engineering. His career goal is to work in tissue engineering and treatment delivery. Alex was unable to attend our event as he had a school commitment. UCANE’s Executive Director Anne Klayman presented the Robert DeSanctis Memorial Scholarship to his mother Lisa, who accepted on his behalf.

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Emily G. DiGiusto

Frank McCourt Memorial Scholarship

mily is the daughter of Regina and Dave DiGiusto. Dave works for McGladrey, LLP of Boston, MA. Emily attended Braintree High School where she was ranked 14 in a class of 390 students. She is a member of the National Honor Society, the Spanish National Honor Society, and the International Thespian Society. Emily has received the John and Abigail Adams Scholarship, the Smith College Book Award for outstanding academic achievement and leadership, the Braintree High School Athletic Department Award for Athletic and Academic Excellence, she is a Bay State Conference All-Star, Division 1 State Champion, and the Nationals at MGM studio in Orlando, FL. Outside of school she is the founder of a 24 member performance group called “Entertaining for a Cure”. To date they have raised over $42,000 for the American Cancer Society. Emily’s guidance counselor wrote, “Selfless, kind, intelligent, mature, outgoing, talented, and humble are a few words I use to describe Emily DiGiusto…I have had the true pleasure of seeing her shine on stage performing in many of our wonderful theatre productions…she has also challenged herself academically by taking all advanced honors and AP courses…in her young life, she has accomplished more than most middle-aged people I know.” Emily will attend the University of Massachusetts Commonwealth Honors College where she will pursue a double major in Business and Vocal Performance/Music Education. Her goal is to one day start her own performance arts studio and to expand “Entertaining for a Cure” into a professional performance-based business with the continuing purpose of fundraising and community outreach. Ryan McCourt presented Emily with the Frank McCourt Memorial Scholarship in memory of his grandfather.

Grant E. Erickson

UCANE Scholarship

rant is the son of Kristen and Jon Erickson. Kristen works for Albert J. Tonry & Co., Inc. of Quincy, MA. Grant attended Carrabassett Valley Academy in Maine, where he was ranked 3 in his class of 23 students. He is a member of the National Honor Society and was the recipient of the Honors Chemistry Academic Achievement Award and the Honors Biology Academic Achievement Award. In addition to being an excellent student, Grant was a member of the Alpine Leadership Team for skiers and snowboarders at his school. He played the bass guitar in the school band and was a member of the Junior Varsity Mountain Bike Racing Team. He is also an avid backcountry skier, an adaptive ski instructor, certified as a wilderness first responder, and is Avalanche Level 2 certified. Through this program, he has traveled across North America and Europe learning leadership and group dynamics skills in an alpine ski mountaineering environment. The Director of Academics at his school wrote, “Grant came to CVA in eighth grade…and has shown a lot of growth and maturity through these five years…he has been a role model for other students…and has been an outstanding student throughout high school…he took an aggressive course selection including honors sections creating the best transcript possible. Another area in which Grant shows a lot of leadership is his volunteer work with athletes with disabilities.” Grant will attend the University of New Hampshire’s College of Engineering and Physical Science Honors Program where he will major in Civil Engineering. Grant was unable to join us for the evening, so UCANE’s Executive Director Anne Klayman presented the UCANE Scholarship to his parents Kristen and Jon, who accepted on his behalf.

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Allison P. Gilmore

Herman Snyder Memorial Scholarship

llison is the daughter of Kimberly and Matt Gilmore. Matt works for LM Heavy Civil Construction, LLC of Quincy, MA. Allison attended Barrington High School in Barrington, RI. She is a member of the National Honor Society, and her extracurricular activities included being a member of the French Club, the Environmental Club, the Community Service Club, and the Tennis Club. Outside of school Allison is a junior counselor at the Audubon Society of Rhode Island and she is a barn hand at Pinegate and Saddle Brook Farms in Swansea, MA. One of her teachers wrote, “As Allison’s anatomy and physiology teacher, I believe that she has what it takes to succeed both in her college courses and in life…she has the determination to be successful…this course is an upper level course and Allison received an A in my class. In addition to school, she shows leadership skills in her community… where she takes it upon herself to help the younger children learn about horses and safety around horses.” Allison will attend the University of Maine where she will major in Earth Sciences at the College of Natural Sciences, Forestry and Agriculture and their school of Earth and Climate Sciences. Richard Wayne, Partner at Hinckley Allen, LLP presented the Herman Snyder Memorial Scholarship to Allison.

Katherine R. Gioioso

Robert B. Our, Sr. Memorial Scholarship

atherine is the daughter of Anne and Joe Gioioso. Joe and his family own and operate P. Gioioso & Sons, Inc. of Hyde Park, MA. Katherine attended Ursuline Academy in Dedham, MA. She is a member of the National Honor Society, is a National Merit Commended Student, she received the Bausch & Lomb Honorary Science Award, and the University of Rochester Book Award. Her extracurricular activities included being a member of the varsity ski team, captain of the robotics team, and she is a peer tutor. Outside of school she is the lead tutor at Nobles and Greenough School and she also tutors at the Dorchester Educational Enrichment Program (DEEP). Katie’s guidance counselor wrote, “Katie’s diligent work ethic permeates throughout every class she has taken as evidenced by her immaculate academic record. She is committed to sharing her strengths, skills, and passions with others. Her favorite activity has been her involvement with tutoring. She first started tutoring when she was a student at Noble and Greenough in their Achieve Program. Katie tutored underserved students within the Boston Public Schools. She has also tutored in Dorchester’s DEEP where she has committed to tutoring one evening per week during the academic year…Additionally, this year she was elected Vice President of the Angeline Chapter of the National Honor Society and given the responsibility of heading the peer tutoring program. For Katie, nothing pleases her more than to help children find their own success...She is one of the most remarkable students I have had the pleasure to know.” Katie will attend Cornell University where she will major in Engineering or Applied Math. Her career objective is to use what she learns to improve education, whether she decides to teach, be an administrator, or a data analyst. John and Robbie Our presented the Robert B. Our Memorial Scholarship to Katie. Frank Gioioso of P. Gioioso & Sons, Inc. presented her with an additional $2,500 scholarship on behalf of the company.

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Michael R. Kandolin

Joseph D’Amico Memorial Scholarship

ichael is the son of Tracy and Ray Kandolin. Ray works for Harris Rebar of Pawtucket, RI. Michael attended Windham High School in Willimantic, CT where he is ranked 9 in a class of 113 students. He is a member of the National Honor Society, and received the St. Michael’s College Book Award, and the Certificate of Academic Excellence in English II Honors. His extracurricular activities included indoor and outdoor track, wrestling, and he was captain of both the football and track teams. Michael also earned the Football Coaches Award, the Eastern Connecticut Conference All-Star Award, the 2015 Southeast Chapter of the National Football Foundation Award, the Hall of Fame Award, and the Connecticut Association Board of Education Award. Michael’s English teacher wrote, “I have had the pleasure of getting to know Michael as both an athlete and a student. He has a compassionate personality, a strong work ethic, and a determination to succeed. He is a self-motivated individual, who pushes himself towards excellence and rarely settles for less...Michael is also a fierce competitor and a dedicated athlete. He serves as a role model to his teammates and even opposing teams because of the great humility he displays in athletics…His success in athletics has only enhanced his determination to succeed.” Michael will attend the University of New Haven where he will major in Business and Finance. Nick Biello presented the Joseph D’Amico Memorial Scholarship to Michael.

Ceara B. Kelly

William Zoppo Memorial Scholarship

eara Kelly is the daughter of Deborah and Peter Kelly. Peter works for LawrenceLynch Corp. of Falmouth, MA. Ceara attended Holbrook Jr./Sr. High School, where she was ranked 3 in a class of 62 students with a GPA of 4.56. She is a member of the National Honor Society, she received the Smith Book Award, and the Women in Engineering Award.

Her extracurricular activities at school included being student government vice president, a member of the Dove Peace Program, and captain of her varsity soccer and varsity track teams. Outside of school she plays club soccer, and she volunteers for special needs soccer, basketball, and tee ball. She wrote, “I also help my family by supporting my 11 year old brother who is autistic… my siblings and I are very involved in his daily life…we all have to be very understanding and exercise patience to help guide him through his day to day activities. As a family we have to all stay close and support each other.” She went on to say, “I have also helped my mother start and run several programs for special needs children in our community. When we found it was too difficult for my brother to participate in the programs that were offered, we started our own.” Ceara will attend Wentworth Institute of Technology where she will pursue a career in Construction Project Management. She said her career objective is to be a strong woman in a field that is typically male dominated, and to be a role model for other women and girls who would like to be in the construction field. David Zoppo and his daughter Victoria presented the William Zoppo Memorial Scholarship to Ceara.

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James C. McRae

Arnold Belli Memorial Scholarship

ames is the son of Maureen and Chris McRae. Chris works for P. Gioioso & Sons, Inc. of Hyde Park, MA. James attended Woburn Memorial High School where he was a member of the National Honor Society and also received the Boston College Book Award for his class standing, which is 5 out of 330 students. His extracurricular activities included playing basketball and being named the Middlesex League All-Star for basketball in his junior year. He also received the Basketball Dedication Award for Excellent Leadership in his senior year. The principal of his school wrote, “As a student James routinely tries to stretch his own thinking and move beyond the obvious…when working in groups, he is always a class favorite. The other students know that he is able to bring the best out in them and make them feel good about their work in the process. Teachers have reported to me that James has great skills in developing discussions in classes and engaging the full range of classmates. It is inspiring to see him develop as a young scholar.” James will attend Worcester Polytechnic Institute where he will major in Chemical Engineering with a concentration in either environmental or nanomaterial studies. Cindy Sementelli presented the Arnold Belli Memorial Scholarship in memory of her father to James. Frank Gioioso of P. Gioioso & Sons, Inc. presented him with an additional $2,500 scholarship on behalf of the company.

David J. Telman

Scholarship in Memory of the Boston Marathon Victims

avid is the son of Lynda and Dave Telman. Dave works for C. C. Construction, Inc. of South Dennis, MA. David attended Nauset Regional High School in Eastham, MA. He is a member of the National Honor Society and has excelled in mostly honors classes. His extracurricular activities at school included varsity football and varsity lacrosse. Outside of school he was a recreational youth basketball coach and a tutor. David has said that learning foreign languages has been his life’s passion since he was in middle school. His French teacher wrote, “Since middle school, one of David’s passions has been languages. Not only is he proficient in French, but he has taught himself Japanese, Arabic, and has taken classes in Spanish and is currently enrolled in Chinese at the high school. He clearly knows what he wants to do and has shown the independence and perseverance that it takes to be a life-long learner.” David will attend Providence College where he will major in Foreign Language Studies. His career objective is to become a translator for the United States Central Intelligence Agency. UCANE’s Executive Director Anne Klayman presented David with this Scholarship in Memory of the Boston Marathon Victims.

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Brian MacFee, Systems Support Corporation

Backups and the Importance of Running and Managing Them Welcome to the first of what I hope will be a number of periodic articles about technology geared towards those in the construction, engineering, and architecture industries with a special focus on small business – those ranging from one or two systems up to 50 or so computers.

am going to begin by recommending a few basic steps to keep your systems and information secure and reliable; things you can do to lower your frustration level, and ways to help you be more productive and profitable in your business using safe, proven technology that you may even already own. The first thing I want to address is backups. I know it is not the sexiest topic in technology, but it is the single most important thing to do to save your technology bacon, which these days, is pretty much all your bacon. All of your customer data, numbers, quotes, contracts, payables, and receivables, etc., is now in those complex computers and you better have a plan for what happens if they break, are stolen, if there is a fire, a flood… you get the idea.

• 93% of companies that lost their data center for 10 days or more due to a disaster filed for bankruptcy within one year of the disaster.

out data for this same 10 day time period filed for bankruptcy immediately. (National Archives & Records Administration in Washington) I could go on and on. Loss of your files and company data must be avoided. Unfortunately, most small businesses do not prepare for these unforeseen problems and hope that they won’t happen to them. This is a very dangerous and unnecessary risk to take. The good news is there are some pretty simple, effective, and affordable ways to protect yourself and minimize the risk. In this case an ounce of prevention is worth about a hundred pounds of cure.

• 50% of businesses that found themselves with-

continued on page 50

Here are a few frightening statistics: • 31% of PC users have lost all of their files due to events beyond their control. • 34% of companies fail to test their tape backups, and of those that do, 77% have found tape back-up failures. • 60% of companies that lose their data will shut down within 6 months of the disaster.

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Technology in Const. continued from page 49 For a Small Business with 1-4 computers: • Carbonite is an excellent choice and you can probably set it up yourself. Go to carbonite.com to sign up. It’s online so you don’t have to worry about a fire or a disk being lost or stolen. Make sure to choose a plan that backs up your entire system. Check it at least once a month to make sure it is up to date and active – their online guides will help. For a Small Business with a server or shared file storage: • Mozy.com is a good choice for price/performance and you can be sure they will be in business for years to come. Setting this up will take some network savvy so you may want your tech person or consultant to do this for you. For a Medium size business and businesses that cannot be “down” for any length of time: • These businesses need something more complex and managed to minimize the chance of going down and then minimizing the amount of downtime. Known as BDR – Backup/Disaster Recovery, this requires a careful balance of risk and cost, and I advise that you talk to a technology professional about a plan that will fit your budget and will keep you in business.

Investing a little time and money on the right backup system can pay off royally if and when you need it. For any one of these plans, the important things are to make sure that all of your data is included in the backup, and then test the backup at least once every month or two. I have seen numerous incidences where all the data was not included, or the backup stopped working months ago. Make sure to check and test your backup system. Your technology consultant will show you how to easily do this.

Backing up your computers is really a necessary cost of doing business these days. You wouldn’t send your crew to a jobsite or put your trucks on the road without having insurance. Backup systems are insurance for your computer data. Investing a little time and money on the right backup system can pay off royally if and when you need it. Unfortunately, you never get a warning of when you’re going to need it. At the very least you’ll get a better night’s sleep. n

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FactSheet Confined Spaces Spaces in Construction: Confined in Construction: Sewer Systems Sewer Systems

Confined spaces can present conditions that are immediately dangerous to workers if such conditions are not properly identified, evaluated, tested, and controlled. This Confined spaces canmany present conditions that are immediately dangerous fact sheet highlights of the confined space hazards associated with sewer systemsifand how conditions employers can are protect in these environments. to workers such notworkers properly identified, evaluated, tested,

and controlled. This fact sheetstandard highlights of the confined space hazOSHA has developed a new construction Safe many Entry Requirements for Confined Spaces (29 CFR 1926 Subpart AA)— The new Confined Spaces standard ards associated with sewer systems and how employers canincludes protect workany space that meets the following three criteria: several requirements for safe entry. ers in these environments. • Is large enough for a worker to enter it; • Has meansa of entry or exit; and standard OSHA haslimited developed new construction • Is not designed for continuous occupancy.

for Confined Spaces (29 CFR 1926 Subpart AA)— any space that meets the three criteria: A space may also befollowing a permit-required confined space if it has a hazardous atmosphere, theit;potential • Is large enough for a worker to enter for engulfment or suffocation, a layout that might • Has entry or walls exit; or and trap alimited workermeans throughof converging a sloped any other for serious safety or occupancy. health hazard. • Isfloor, notor designed continuous A space also be a permit-required conFatalmay Incidents fined space if it has a hazardous Confined space hazards in seweratmosphere, systems have the potentialledforto engulfment or Several suffocation, a layoutinthat worker deaths. tragic incidents might trap a worker through converging walls or a sewers have included: sloped floor, or any other serious safety or health • A worker who lost consciousness and died hazard. when he climbed into a sewer vault to retrieve a tool. His co-worker also died when he attempted Fatal Incidents a rescue. • While repairing a natural leak, systems a worker have Confined space hazards ingas sewer entered a drainage pipetragic to retrieve survey in sewled to worker deaths. Several incidents equipment. The natural gas ignited, killing ers have included: the worker.

• A worker who lost consciousness and died when he climbed into a sewer vault to retrieve Training aThe tool. co-worker diedrequires when he atnewHis Confined Spacesalso standard tempted a to rescue. employers ensure that their workers know about the existence, location, and dangers posed each • While repairing a natural gas leak, a by worker permit-required confined space, and that they may entered a drainage pipe to retrieve survey not enter such spaces without authorization. equipment. The natural gas ignited, killing the Employers must train workers involved in permitworker.

required confined space operations so that they Training can perform their duties safely and understand the hazards in permit spaces and the methods used Thetonew Confined Spaces standard requires isolate, control or protect workers. Workers employers to ensure theirentry workers know not authorized tothat perform rescues mustabout be the existence, location, and dangers posed each trained on the dangers of attempting such by rescues.

permit-required confined space, and that they may not enter such spaces without authorization.

JUNE, 2015

Preparation: Before workers can enter a confined space, employers must pre-entryinvolved planning.in permitEmployers mustprovide train workers This includes: required confined space operations so that they can

dutiesperson safelyevaluate and understand the haz•perform Having atheir competent the ards insite permit spaces and the methods used to isowork for the presence of confined spaces, including permit-required confined spaces. late, control or protect workers. Workers not autho•rized Once space isentry classified as a permit-required tothe perform rescues must be trained on the confinedof space, identifying the rescues. means of entry and dangers attempting such exit, proper ventilation methods, and elimination or control of all potential in the space. Safe Entryhazards Requirements • Ensuring that the air in a confined space is tested, Theworkers new Confined Spaces before enter, for oxygen levels,standard flammableincludes several requirements for safe entry. and toxic substances, and stratified atmospheres. • If aPreparation: permit is required for the space, removing Before workers can or enter a concontrolling hazards in the space and determining fined space, employers must provide pre-entry planrescue procedures and necessary equipment. ning. This includes: • If the air in a space is not safe for workers, • Having a competent the work ventilating or using whatever person controls evaluate or site for presence of employees confined can spaces, inprotections arethe necessary so that safelycluding work in the space. permit-required confined spaces. • Once the After space is classified as a permit-reOngoing practices: pre-entry planning, employers must confined ensure thatspace, the space is monitored quired identifying the means for hazards, especially of entry and atmospheric exit, properhazards. ventilation methods, Effectiveand communication important eliminationisor control because of all potential hazthere can be multiple contractors operating on a ards in the space. site, each with its own workers needing to enter • Ensuring the air in a confined confined space is the confined space. that Attendants outside tested, before workers enter, for oxygen levspaces must make sure that unauthorized workers do not enter them. Rescue attempts by untrained els, flammable and toxic substances, and personnel can lead atmospheres. to multiple deaths. stratified • If aSpaces permit isinrequired for the space, removing Confined Sewer Systems or controlling hazards in the space and deTypes of sewer systems include sanitary (domestic termining rescue procedures and sewage), storm (runoff), and combined (domestic necessary equipment. sewage and runoff). Sewer systems are extensive • If the air in a space is not safe for workers, continued on page 52

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OSHA continued from page 51 ventilating or using whatever controls or protections are necessary so that employees can safely work in the space. Ongoing practices: After pre-entry planning, employers must ensure that the space is monitored for hazards, especially atmospheric hazards. Effective communication is important because there can be multiple contractors operating on a site, each with its own workers needing to enter the confined space. Attendants outside confined spaces must make sure that unauthorized workers do not enter them. Rescue attempts by untrained personnel can lead to multiple deaths.

Confined Spaces in Sewer Systems Types of sewer systems include sanitary (domestic sewage), storm (runoff), and combined (domestic sewage and runoff). Sewer systems are extensive and include many different components that are considered confined spaces, including pipelines, manholes, wet wells, dry well vaults, and lift/pump stations. Therefore, employers conducting work in sewer systems will likely have workers who will encounter confined spaces.

Sewer systems also consist of wastewater treatment plants, where confined spaces include digestion and sedimentation tanks, floating covers over tanks, sodium hypochlorite tanks, and wastewater holding tanks, among others. Many of these components may also qualify as permit-required confined spaces. Employers must take all necessary steps to keep workers safe in confined spaces, including following the OSHA Construction Confined Spaces standard. This standard applies to both new construction within an existing sewer and alterations and/or upgrades. For example: • Installing or upgrading a manhole. • Altering or upgrading sewer lines. • Making nonstructural upgrades to joints, pipes, or manholes. • Demolition work. • Installing new or upgraded pump equipment, cables, wires, or junction boxes. Construction work can create confined spaces, even if there are none at the start of a project. Changes to the entry/exit, the ease of exit, and air flow could produce a confined space or cause one to become confined or permit-required. continued on page 53

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JUNE, 2015

Hazards Associated with Sewer Systems

OSHA continued from page 52

This is a reminder of oxygen levels to be aware of in confined spaces. Oxygen Deficient Atmospheres 19.5%

Minimum acceptable oxygen level.

15-19%

Decreased ability to work strenuously. Impear coordination. Early symptoms.

12-14%

Respiration increases. Poor judgement.

10-12%

Respiration labored. Lips blue.

8-10%

Mental failure. Fainitng, Naseua, Unconsciousness, Vomiting.

6-8%

4-5 minutes - possible recovery, 6 minutes - 50% fatal, & 8 minutes - fatal.

4-6%

Coma almost instantaneously. Death.

Sewer systems can present a host of confined space hazards, including: • Atmospheric hazards (low oxygen, toxic or flammable gases). • Chemicals in piping and from roadway runoff (may harm lungs, skin, or eyes). • Engulfment and drowning. • Electrocution (e.g., using electrical equipment in wet working conditions). • Slips, trips, and falls. • Falling objects. • High noise levels, low visibility, limits to communication, and long distances to exits. Personal protective equipment: Employers should assess the work site to determine what personal protective equipment (PPE) is needed to protect workers. Employers should provide workers with the required PPE and proper training on its use and about any related hazards before the work starts. For questions or to get information or advice, to find out how to contact OSHA’s free on-site consultation program, order publications, report a fatality or severe injury, or to file a confidential complaint, visit www.osha.gov or call 1-800-321- OSHA (6742). n

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Article provided by Richard Hughes, President Excellence In Safety Inc.

Richard Hughes

One Size Fits None When it Comes to Safety Training As an OSHA Certified Safety Trainer, I am obligated to complete an OSHA course called “Train the Trainer – 502” every 4 years. Having just returned from the 3-day course, I wanted to share some of the recent changes that the Federal Government is recommending for Construction Safety Courses given by trainers like myself.

s you may know, the direction OSHA often takes is influenced greatly by the Administration. The latest “Train the Trainer” session spent an inordinate amount of time on making sure that trainers provide endless amounts of documentation proving that their training programs were legitimate and all encompassing. Not a bad goal if the intention was to further promote the safety element of the program. But rather than focusing on incident reduction, the new rules are more focused on reducing any possible finger pointing at OSHA that might occur due to training program abuse (i.e., unauthorized distribution of OSHA cards, or workers found not to be trained in some particular area). The collateral damage of this over-response to a very minor degree of abuse nationally, however, is the virtual elimination of trainer (and training) variations in Outreach Program presentations. Timed to the precise minutes each topic is to be presented, backed up by signed affidavits from each trainer that these times were followed with the exactitude of a stopwatch, the OSHA 10 and OSHA 30 programs have now morphed from their former general awareness aim1 to a specific checklist of 1926 Construc-

JUNE, 2015

tion Manual subtopics that all must be discussed regardless of their relevancy to the construction crew audience. Ten excavation workers in your class? OSHA still wants trainers to devote two hours of these important training hours on Introduction to OSHA, including OSHA history, employer responsibilities, OSHA’s inspection process and fine structure, and employee rights. A curious priority for us OSHA trainers. continued on page 57

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Safety Corner continued from page 55 Most important to us, however, is the reality that in providing this new broad construction knowledge to every OSHA 10 student is the legitimate potential for losing their interest for safety concerns uniquely and highly relating to their trades. Ask any trainer how well a discussion of residential construction hazards goes over with underground excavators and the reverse. Does a framer really need to know the vital dimensions of trench construction? Do inland landscapers need reminding that a rescue skiff with outboard (if the current exceeds 3 knots) is required when they work above water bodies? Apparently, OSHA feels the imperative of this general awareness, but any trainer will tell you that once the discussion departs radically from applicable safety issues the audience faces, most students tune out big time. So my OSHA 502 training program has made it a little more difficult to provide emphasis on specific types of construction work, and to keep my classroom focused. I may have to add some magic tricks to my presentation, or possibly some ventriloquy. Since 2008, Massachusetts’ law has required that all workers and supervisors on publically funded construction projects (over $10,000) complete an OSHA approved 10 hour Construction Safety class. A recent survey of over 100 “key informants” offered

a strong consensus that this law has “raised the bar” for safety in the commercial construction sector even beyond public projects. Many have even supported the introduction of a new refresher-training requirement to the law to show commitment to ongoing worker safety training.

Perhaps that could be a vehicle to allow a more customized training program for the refresher requirement. Specific safety training focusing on those issues, hazards, and necessary safety management controls unique to that trade will be far more beneficial economically, humanely, and productively than a one-sizefits-all safety overview approach with a large percentage of irrelevant curriculum emphasized at each session. n

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KNOW YOUR JOB: Become an All-Star Team Member A Lesson Learned from Wilt Chamberlain By Mark Eaton How many of us run around every day, in business and in life, trying to play every position, and do everything for everybody? From handling the ball to blocking the shots, we think that we can do it all, and do it well! When I was just starting college basketball with UCLA, Wilt Chamberlain took me aside and taught me the most important lesson of my life. I only had one job. And in 1989, knowing my job made me an All-Star basketball player. Wilt was right. Many teams have a superstar who does more than one thing well, but without great teamwork, even the greatest players don’t stand a chance of winning every game. SITTING ON THE BENCH When I started as a basketball player at UCLA, I had some serious doubts about my future in the sport. After the first year, I looked back and felt that I had been an absolute failure. It just didn’t seem like I had what it took to be a success. It was like my dream was going up in smoke. I started to ask myself, “Am I good enough to be out here?” I remembered what my basketball career in high school had been like. I spent most of my time warming the bench. I had quit playing the game after high school for a reason, and now I doubted my decision to return. Then something happened that changed my life forever. Wilt Chamberlain taught me to know my job.

RUNNING AROUND THE COURT Every afternoon that summer I went to the gym at UCLA. All the greatest players in Los Angeles congregated in what we called the Old Men’s Gym to test their skills against one another in pick-up games. Magic Johnson, James Worthy, Michael Cooper and many other NBA players were there every day, and only the best players could join in. One afternoon I was trying to catch this fast little guard on the other team named “Rocket” Rod Foster. He would be at the basket when I was still at half court, doing my best to catch him. I tried everything, and didn’t know what to do to get better. continued on page 59

Mark Eaton in action for the Utah Jazz.

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JUNE, 2015

Know Your Job continued from page 58 I just stood there on the sidelines, hands on my knees, huffing and puffing, frustrated and thinking to myself, “I can't do it.“ I thought I would never be at the level these guys were at.

“IT’S NOT YOUR JOB”

to become one of the great defensive players in the NBA. Four years later, in 1985, I broke the record for the most blocked shots in a single season, 456, which is still the NBA record. I was named Defensive Player Of the Year twice. In 1989 I became an All-Star. Are you All-Star material? If you really know your job, you will get there. Start by asking your coworkers, your family, your friends, “What are my strengths?” You might be surprised what you hear. Look for that hand on your shoulder – you’ll be surprised to see who it is when you turn around. Sometimes it takes someone great to see how we are great. But you don’t need it to be Wilt Chamberlain. Look for the greatness in your co-workers, and show others the greatness in yourself.

As I stood on the sidelines, I suddenly felt a large, strong hand on my shoulder. I turned around, and there was Wilt Chamberlain, arguably the greatest basketball player of all time. Wilt had retired from basketball a few years before, but every afternoon, he would still come over to the Old Men’s Gym to watch the younger players work out. He had been watching me from the sidelines. NARROW YOUR FOCUS Wilt grabbed me by the shoulder, spun me around, looked me in the eye and said, "Young fella... When we get too focused on exceeding expectafirst of all, you are never going to catch that man." I tions, sometimes we forget the basics. said, "Thanks Wilt. I know that." Narrow your focus and intensify it. Do what you do I felt even more foolish about my basketball asbest. While I was busy running around the court, trying pirations at this point, begrudging the fact that I had to catch every point guard, I didn’t get underneath the played so poorly in front of this basketball legend. basket quick enough to do my job on defense. Wilt continued, "What's more important is; it's not In order to make it to the top, play to your strengths your job.” He took me by the arm out onto the basketand know your job. If everyone on your team focuses ball court. He positioned me right in front of the bason what they do best, you have a great plan for victory. ket and told me, “Let me tell you what your job is…” Mark Eaton is a business speaker and coach who works Wilt said, “Your job is to guard this basket. Your job with organizations and individuals sharing the four commitments is to stand right here and keep other players from scorthat bring about teamwork, breakthrough success and sustained ing. I've watched you play, and I see the skill you have cultural change. Mark’s inspiring journey from auto mechanic to at defense. That is what you need to concentrate on.” record-breaking NBA player, combined with his practical strateThat day, everything changed for me. I began gies and principles, help organizations play and win in the bigto understand what I needed to do on the court. I gest game out there. He has presented to dozens of utility and understood what I could be great at. Wilt showed me construction companies across the U.S. To book Mark for your next event visit www.7ft4.com or e-mail him at mark@7ft4.com. how I could be invaluable to my team. I wasn't fast, and I wasn't that good at scoring, but I did have a talent for preventing others from scoring goals. At 7’4”, I could be a force MBO Precast Inc. on defense to be reckoned with. 4 Marion Drive • Carver, MA 02330

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John E. Merchant, CPA

Cullen, Murphy & Co., P.C.

IN THIS ISSUE: • Winning Social Security’s Waiting Game • Control the Costs of Weddings in Your Family • Keep Your Company After a Divorce

Smart Tax, Business & Planning

Winning SocialWinning Security’s Social Security’s Waiting Game

s more baby boomers move into their 60s, there is increased interest in Social Security retirement benefits. In particular, seniors must decide when to start. Currently, the full retirement age (FRA) for Social Security is 66. That age applies to people born from 1943 through 1954. FRA gradually increases for younger workers, reaching 67 for those born in 1960 or later. You can start as early as age 62, but your benefits will be reduced. Alternatively, you can start as late as 70, which will entitle you to a higher benefit. If you start at 62, you’d get 75% of your FRA benefit; waiting after FRA increases your benefit by 8% a year. (Starting younger than FRA also will generate a reduction in benefits for those with substantial earned income, followed by a makeup in later years.)

Thus, waiting from 62 to 66 increases John’s benefit by 33.3%. Waiting still longer, from 66 to 70, As more boomers into increases hisbaby benefit by 32%.move By the eyeball test, John will60s, get athere benefit of interest about 8%ina year their is increase increased forSocial waiting.Security That government-backed hike may retirement benefits. Insound extremely appealing, when bank accounts and monparticular, seniors must decide when to ey market funds pay next to nothing.

start. Currently, the full retirement age Closer Lookis 66. That (FRA) for Social Security Running through a calculator, it age appliesthetonumbers people born from 1943 turns out that the higher benefit is really a compound through 1954. FRA gradually increases annual increase of just over 7%. That’s still appealing for younger workers, reaching 67 for in these low-yield times. those born in 1960 or later. However, the percentage increase actually flucExample 1: John Anderson is entitled to a Socan moves start asthrough early as tuatesYou as John hisage 60s.62, The periodic cial Security benefit of $2,500 a month at age 66, his but your be reduced. increases arebenefits fixed, as will a percentage of FRA, but the FRA. If he starts at age 62, with little or no earned deferred benefit increases in size older. income, John will receive $1,875 a month (75% of Alternatively, you can startasasJohn lategrows as 70, $2,500). As another option, John could wait as late Example 2: At age 63, John would receive 80% which will entitle you to a higher benefit. as age 70 to start and receive $3,300 a month (132% of his FRA amount: $2,000 a month. That’s an inIf you start at 62, you’d get 75% of your of $2,500). continued on page 62 FRA benefit; waiting after FRA increases your benefit by 8% a year. (Starting “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” JUNE, 2015 younger than FRA also will generate 61 a reduction in benefits for those with

substant makeup Exam to a Soci month a age 62, w John wil $2,500). wait as la $3,300 a Thus, John’s be longer, fr benefit b will get a year for w hike may when ba funds pa

Closer

Running calculato benefit is increase appealin Howe actually fl his 60s. Th as a perce benefit in

Financial Management continued from page 61 crease of $125 a month, from his age 62 benefit of $1,875, so John’s boost for the year is about 6.7%. By starting at age 64, though, John would get $2,166 a month, 862 ⁄3% of his FRA amount. That’s an 8.3% increase for waiting that year, from age 63 to 64. Crunching through the numbers, the annual percentage increase drops, rises again and drops again until reaching a 6.5% hike from age 69 to a start at age 70.

Measuring the Trade-Off

active pursuits. If you decide not to start at 62, you might consider waiting until at least age 64 to start to get the sizable 63- 64 bump in benefits. On the other hand, if you’re in relatively good condition, physically and financially, you might decide to defer after you reach FRA to get a larger Social Security benefit. Remember that you’re not locked in to an age 70 start if you can delay; you can start any time in between 66 and 70, if waiting is no longer practical. Keep in mind that these calculations are relatively simple as they ignore taxes on benefits, cost-of-living adjustments and any interim investment earnings. continued on page 63

Another way to make a decision on when to start Social Security is to see how much you give up by waiting, and how long the make-up period will be. If John waits from 62 to 70, he will relinquish 8 years of benefits (96 months) at $1,875 Aon Risk Solutions Construction Services Group a month, or $180,000. He’d then collect $3,300 a month, an extra $1,425, so he’d catch up in 127 months. By the time John reaches age 81, he’d be ahead in total dollars collected, and the gap would grow in each succeeding month. As the leading provider of risk solutions to the construction industry, Aon Example 3: For another perspective, consider Kate Bennett, Construction Services Group partners with clients to provide insighful who also has an FRA benefit of analysis, strategic direction and creative solutions backed by our dedicated $2,500 a month. Kate continues to team of construction experts and the strength of Aon’s global network. work, so starting before her FRA doesn’t make sense. As menLet Aon Construction Services Group empower your growth, profit and continuity. tioned, Kate could get a Social Seaon.com/construction curity benefit of $3,300 a month by waiting until age 70. Kevin White, CEO Brian Driscoll, Managing Director Paul Healy, National Contract Surety 617.457.7717 617.457.7668 617.457.7719 However, Kate doesn’t need Kevin.White@aon.com brian.driscoll@aon.com paul.healy@aon.com to wait that long. By age 69, Kate Mark Herendeen, Surety Michael Scott, Insurance Mark Toglia, Wrap-Up could start Social Security and re617.457.7715 617.457.7699 617.457.7727 ceive $3,100 a month. In the first mark.herendeen@aon.com mark.toglia@aon.com year, she’d collect $37,200 in benefits. By waiting until 70, she’d get an extra $200 a month, so it would take her 186 months ($37,200 divided by $200) to catch up: 151⁄2 years. Kate wouldn’t be ahead in total benefits until she’s approaching age 86.

Managing Risk Takes More Than Machinery

Revising Your Outlook The bottom line is that the ideal time to start Social Security can be a moving target. Starting at 62 might be a good choice if you need the cash immediately, have health concerns, or just want to get something back for all the taxes you’ve paid while you’re young enough for 62

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reaches age 81, he’d be ahead in total Financial Management continued from page 62

Control the Costs of Weddings Control the Costs in Your Family

f future weddings are on your mind in June, be prepared for sticker shock. The Knot website reports that the average U.S. wedding costs about $30,000, not including the honeymoon. Costs vary widely by location: The average is well over $50,000 in the New York City area, but it’s close to $16,000 in Western states such as Idaho and Utah. Wherever the wedding might be, it’s likely to be a sizable expense. Some savvy planning can keep your outlay under control without detracting from a festive occasion. Cost Sharing Traditionally, the bride’s parents pay for the wedding. This tradition apparently goes back a long way, in many societies, dating from the time when the bride’s family provided a dowry to help enable the new husband to take care of his wife and any future children. If your daughter or son is getting married relatively young and also is in school or a recent graduate, it still may be the case that the parents pay for all or most of an engagement party, the wedding reception, flowers, music, photography, and so on. With today’s shifting societal norms, chances are you could end up contributing no matter which side of the happy couple you fall on. Today, though, many couples are getting married (or remarried) later in life, perhaps after establishing

JUNE, 2015

Some your detra

Cos earning significant incomes. Although Ifcareers futureandweddings are on your mind some of those weddings are still fully financed by family,be it’sprepared increasingly for common for costs to be inone June, sticker split between the couple’s families as well as by the couple themselves. Thus, this advice may not only be shock. The Knot website reports relevant to the parents of future brides and grooms that thetoaverage wedding costs to but also unmarriedU.S. individuals looking forward their own nuptials. about $30,000, not including the continued on page 65 honeymoon. Costs vary widely by location: The average is well over $50,000 in the New York City area, but it’s close to $16,000 in Western SAND STONE CORP. states such as & Idaho and Utah. St. might Wherever192 the Plain wedding MA 02760 be, it’sNorth likelyAttleboro, to be a sizable expense.

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Did You Know? ocial Security retirement benefits are based on your 35 years of highest earnings. The earnings that are counted are subject to a cap: the maximum amount subject to Social Security taxation each year. The figure for 2015 is $118,500; the earnings cap was $3,000 when the Social Security program began in 1937. Source: The Wall Street Journal

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Financial Management continued from page 63 In some situations, the relative resources of these parties will help determine the sharing arrangements. The division of expenses should be established early in the wedding planning process. This might be awkward at first but may help reduce future tension over who pays what.

Begin With a Budget Just as you wouldn’t shop for a new car or a second home without some price parameters, the same is true for a wedding. You should be sure that everyone’s expectations are in alignment. If you have a $25,000 wedding in mind, for example, but your daughter expects a $50,000 wedding, someone is going to be upset unless an agreement can be reached. Brides- and grooms-to-be will differ in their financial expertise. Some may anticipate the wedding they’d like and know the total probable cost within a few thousand dollars; others may just have an idea of where they’d like to celebrate their marriage and how many people they plan to invite without any notion of the bills that will need to be paid. Before setting a budget, research can help. Start with online fact-finding and go to on-site visits. Once the couple has seen a few possible places and learned the cost of a reception with various numbers of guests at those venues, they likely will have a better idea of the costs involved, so an overall budget can be more realistic. If you are going to be paying a substantial portion of the wedding expenses, you should play a role in establishing a budget. One tactic is to give the to-be-weds a check for X dollars upfront, to cover the wedding expenses. They can spend more, from their own pockets or from the other parents’. Or, they can spend less and keep the balance as a wedding gift. Once you have a working budget, try to stay with

it. Cut costs where you won’t cut into the joy of the occasion. A Friday or Sunday wedding can be just as memorable as a Saturday event—and perhaps much less expensive. The same is true for out-ofseason dates; a December wedding can offer more value than one in June. No matter when the wedding is scheduled, trimming the guest list to those whose presence is absolutely necessary or desirable can provide certain cost reduction. Remember that a wedding is a major lifetime event, not a profit-making venture. Be ready to go over the budget and decide if you can manage to contribute a bit more to keep everyone smiling. Starting with a budget can help to keep supplementary requests modest and hold down the total tab. continued on page 66

Trusted Advice Wedding Tax Tactics • The costs of renting a place for a reception are not tax deductible, but you’ll be able to deduct donations to the church, synagogue, or nonprofit organization where the wedding is held. • After a wedding reception, you might be able to take a deduction for donating flowers and leftover food to an appropriate charity. Make advance arrangements to contribute perishables. • Similarly, other items (candles, decorations, bridesmaids’ dresses, even a bridal gown) might be donated to generate a charitable deduction.

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Financial Management continued from page 65

Keep Your Company After a Divorce

oing through a divorce can be financially as well as emotionally devastating. That’s especially true for business owners. Example: Jack Barnes has built his small company into a thriving enterprise. However, the time he spent on the business has taken its toll. Now Jack is going through a divorce, and his wife, Sharon, stands to receive part of the company in a property settlement. Jack does not relish losing absolute control of the company, and he does not want to have to deal with his ex-wife as a co-owner. In this situation, what can Jack do to avoid such results? True Value

outcome of any divorce agreement. Speak with an attorney—one who specializes in family law, not necessarily your cousin with a general practice—about your state’s treatment of marital property. What portion of the company’s value is likely to go to your spouse, considering its worth when you went into the marriage and its growth since then? At the same time, you should get a realistic valuation of your company from a reputable source. Depending on what’s practical, you might use an appraiser who is acceptable to both spouses or just hire one on your own. Either way, this should help you to get an idea of what your obligation might be when terms are finalized. Say your attorney indicates that your spouse could be awarded half the value of your company, and the business is valued at $3 million. You’ll know that your spouse could receive in the neighborhood of $1.5 million from your company’s value after a divorce.

One approach is to begin by determining a likely

continued on page 67

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Financial Management continued from page 66 Setting Goals With such knowledge, you can decide how to proceed. Should you put your company up for sale and divide the proceeds, pursuant to the divorce settlement, then start a new business of your own? Sell some shares to a more desirable partner to raise cash to buy out your spouse? Just hand over the shares and live with your ex as a co-owner? Or do you really want to maintain your current ownership in your existing firm? Assuming you want to keep your company and not have to work with your former spouse, you’ll have to make some arrangement to provide your portion of other assets instead of company shares. That could mean giving up real estate, securities, bank accounts, retirement accounts, vehicles, collectibles, and so on. Keep in mind that tax-deferred retirement accounts may have a low value to you in the future, if you expect to be in a high tax bracket when taking withdrawals. If you lack enough assets for a full trade-off, you might have to borrow against your company’s value to fulfill your part of the agreement. Another possibility is to enter into a property settlement note, some-

times known as a structured settlement. In effect, this is a buyout over time, using anticipated cash flow from the business to make up for the assets (shares in your company) you’ll be retaining. As is the case with any note, this arrangement should have a market rate of interest and a definite term, which might be over many years.

Be Pre-Prepared Ending a marriage is seldom pleasant, but the financial damage may be reduced if you gather the facts and make thoughtful decisions. Aim for an agreement that’s fair to both parties; proceed as quickly as possible, so you can hold down legal costs and get back to work without divorce on your mind. Often, the best way that a business owner can minimize the financial fallout from a divorce is to plan ahead. If you own a company and plan to get married, suggest a prenuptial agreement that designates your company as an asset you’ll retain. Bringing up a prenup before a wedding may not be the most romantic move you can make, but you might be able to deflect the blame by telling your intended spouse that such an agreement is your CPA’s idea. Reprinted from CPA Client Bulletin. n

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