A publication of the Utility Contractors’ Association of New England, Inc.
MAY, 2013
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Years of Excellence 1954-2013
MAY, 2013
IN THIS ISSUE
OFFICERS President AL MORTEO FED. CORP. President Elect TONY BORRELLI Celco Construction Corp. Treasurer JOHN OUR Robert B. Our Co., Inc. Secretary PAUL SCENNA Albanese D&S, Inc.
BOARD OF DIRECTORS MARCELLA ALBANESE Albanese Bros., Inc. JEFF BARDELL Daniel O’Connell’s Sons, Inc. VINCENT BARLETTA Barletta Heavy Division MICHAEL BISZKO, III Biszko Contracting Corp. STEVEN COMOLETTI P. Caliacco Corp. MAUREEN DAGLE Dagle Electrical Const., Corp. ADAM DeSANCTIS DeSanctis Ins. Agency, Inc. THOMAS DESCOTEAUX R. H. White Const. Co., Inc. JERRY GAGLIARDUCCI Gagliarducci Construction, Inc. MARCO GIOIOSO P. Gioioso & Sons, Inc. BILL IRWIN C.J.P. & Sons Const. Co., Inc. PHIL JASSET Honorary Board Member BILL KEAVENEY A. R. Belli, Inc. ROBERT LEE J. F. White Contracting Co. RYAN McCOURT McCourt Construction Co. RICHARD PACELLA, JR. R. M. Pacella, Inc. LOUIS SCHOOLCRAFT Ti-SALES, Inc. ANNE KLAYMAN Executive Director
3 President’s Message:
Together, We Will Forever Be “Boston Strong”
5 Legislative Update:
• House Passes Fiscal Year 2014 Budget Proposal • House and Senate Pass Competing Transportation Finance Plans • As Spring Finally Arrives, Municipalities Begin to Examine Their Water Infrastructure Systems • Primaries for United States Senator and 1st Suffolk State Senate Seat Completed • Attorney General Announces New Appointments
17 MassDEP Releases Final CY2013 Clean Water & Drinking Water SRF Lists Totaling Over $512.3 Million 25 In Memoriam:
John Amorello, Sr., J. E. Amorello, Inc.
27 Legal Corner:
Recent Bid Protest Decisions: Bidder Responsibility and Project Experience
31 Benefits & HR Strategies:
Why and How to Revamp Your Performance Appraisal Process
35 UCANE Welcomes New Members 37 UCANE Interview:
Senator Katherine Clark (D-Melrose)
41 Mystic River Clean Water Campaign Launched 43 Environmental Viewpoint:
Stormwater Pollution Prevention Plan Requirements
45 Construction Law:
The King is Dead; Long Live the King: The Connecticut Supreme Court Resurrects Stale Claims by the State
47 Save the Date...UCANE’s 34th Annual Golf Classic 49 Massachusetts Municipal Association: Tax-Exemption for Bonds Threatened by DC
53 Financial Management:
• From Bear Market to Bull Market • New In-Plan Conversions • Using the Work Opportunity Tax Credit
Editor: Anne Klayman, Associate Editor: Suzanne Savage, Graphic Designer: Sherri Klayman Construction Outlook Chairman: Al Morteo Editorial Board: Al Morteo, Tony Borrelli, John Our and Paul Scenna 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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Together, We Will Forever Be “Boston Strong” The third Monday in April has always been Boston’s official beginning of spring, and this year it started out exactly that way. Each year, Patriot’s Day falls during school vacation week, which brings to mind images of the seasons changing, the blooming of forsythia and tulips, the opening of the Boston Public Gardens and the Swan Boats, the early morning Red Sox game and most of all, the Boston Marathon. For over a hundred years, this day has been one of the most important and meaningful to the people of Massachusetts, especially Bostonians. It is simply our day to showcase our beloved city and welcome visitors from around the world who run in the Marathon or who just come to join in the camaraderie. It is a day for families and friends, some of whom have planned all year, to do something together. Whether cheering on our beloved baseball team or our favorite marathon runner...our father, mother, brother, sister, or friend…many of whom were running for their favorite charity, everyone’s attention is focused on the events that make this day special. But, on April 15, 2013, a day of innocence we all enjoyed was forever changed. A very special day of love and friendship has now become a day to remember the horrific bombings that took place near the finish line at this year’s Boston Marathon and the unbelievable pain and suffering inflicted on innocent people. In the days since this traumatic event, I have experienced feelings of horror at the bombings…anger at the senseless loss of lives…sadness for the injured and their families, as well as pride in our City that rallied together under the worst of circumstances. I am humbled by the courage of so many medical professionals, first responders, and bystanders who ran into harm’s way to literally save the lives of those who were injured. We will forever be “Boston Strong”. Memorializing those who perished, and honoring those who were physically and mentally maimed will be our duty to future generations. Honoring the heroic deeds of our public servants, doctors, nurses, and average citizens who fought back their personal fears and rushed to help the injured will always be remembered. To help us overcome this horror, we must believe that “good” will triumph over “evil”. As we all get back to our daily lives we must count our blessings, but never forget that four innocent Americans were killed. Hundreds have been injured and maimed and are struggling on a daily basis to put their lives back together. We need to keep them in our thoughts and prayers and help them in any way we can. Even in the midst of this horror, the resiliency and grit of Bostonians was evident. We all look to the future, and pledge to make Patriot’s Day 2014 and the Boston Marathon bigger, safer, and more memorable than ever. One of the ways in which UCANE chooses to remember this day is by awarding one of our twelve college scholarships in memory of the Boston Marathon Victims. Together, we will forever be “Boston Strong”. n
MAY, 2013
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MAY, 2013
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T
House Passes Fiscal Year 2014 Budget Proposal
he Massachusetts House of Representatives passed its fiscal year 2014 budget proposal in mid-April. After releasing a $33.8 billion proposal from the House Ways and Means Committee, legislators quickly worked through 888 floor amendments over the span of three days. The House budget, which trims about $1 billion from Governor Patrick’s budget, calls for slightly more than a 3.9% increase in state spending. The House budget proposal draws $350 million from the state’s stabilization account, and relies on $83.1 million in casino licensing revenues new to the budget process. Of particular interest to UCANE and its membership were the following items: • Commonwealth Rate Relief. Although the Governor did not include the Sewer Rate Relief line-item in his proposed budget plan, the House included line-item 1231-1000 at $600,000 to rate relief. If adopted by the Senate, this would result in a $100,000 increase over last year’s appropriation to the line-item. (Note: 9C cuts exercised by the Governor earlier this fiscal year eliminated the rate relief funding for fiscal year 2013.) • WPAT Contract Assistance. The House appropriated $62.8 million to the Water Pollution Abatement Trust line-item (1599-0093). This is in line with the Governor’s recommendation ($63 million) and if adopted in the final budget, would represent an increase of just over $1 million from FY’13. • DEP Administration. The House adopted the Governor’s recommended $28,014,269 appropriation to line-item 2200-0100. If adopted in the final budget, this would represent a $2 million increase to DEP administration. • Administration and Implementation of Federal Clean Air Act. The House ap-
MAY, 2013
•
•
•
•
propriated $841,297 to DEP through line-item 2220-2220 for the state administration and implementation of the Clean Air Act, including the operating permit program, the emissions banking program, the auto-related state implementation program, and the low emission vehicle program among other items. Another $1.49 million is appropriated to DEP through line-item 2220-2221 for the administration and implementation of the operating permit and compliance program required under the Clean Air Act. Safe Drinking Water Act. The Governor had proposed to increase funding of this lineitem by approximately $70,000; however, the House level funded the item from FY’13 with an appropriation of $1,427,019. Cape Cod Study. The House adopted the Governor’s recommendation to eliminate funding for the Cape Cod Study line-item (2260-8875). Last year the final funding for the line-item was $350,000. (Note: the lineitem was probably eliminated because of the recent WPAT grant of $3.5 million to Cape Cod). Watershed Management Program. The House and the Governor appear to be in alignment with respect to funding of line-item 28000101, which was recommended an appropriation of $1,029,744. This program also received approximately $1 million in FY’13. Stormwater Management. The House adopted the Governor’s recommended appropriation of $405,000 to line-item 2800-0401 for stormwater management. If adopted, this is a slight increase over fiscal year 2013 funding. continued on page 7
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Legislative Update continued from page 5 • District Local Technical Assistance Fund Grants. The House included $2.8 million in funding for line-item 1599-0026 for a reserve for one-time grants to support municipal improvements; provided, these funds shall be expended to fund the District Local Technical Assistance Fund, including projects that encourage regionalization, to be administered by the division of local services and distributed through the District Local Technical Assistance Fund. • MassWorks Infrastructure Program. The House appropriated $19.25 million to lineitem 7002-0021 for the MassWorks Infrastructure Program, with the added condition that eligible projects have previously applied and carry a high probability that the public investment in infrastructure will leverage private investment by a ratio of at least 3:1. In addition to the aforementioned line-items, there are two outside sections of the House’s fiscal year 2014 budget of interest. The sections provide: • Outside section 20. This section slightly modifies the MassWorks infrastructure program language such that “preference shall be given to projects incorporating smart growth
initiatives that are consistent with sustainable development practices in the commonwealth.” As you know, this program issues public infrastructure grants to municipalities and other public instrumentalities for design, construction, building, repair, and improvement to publicly-owned infrastructure, including, but not limited to, sewers, water treatment systems, utility extensions, streets, telecommunications systems, etc. to provide for commercial and residential transportation and infrastructure developments and improvements and projects under the growth districts initiative. • Outside section 96. This section would establish a public-private partnership commission to review and evaluate the administration and fiscal impact of public-private partnerships, including but not limited to design-build-financeoperate-maintain or design-build-operatemaintain services. The commission is to make recommendations to the Legislature regarding the current practices, administrative efficacy, and cost benefit of increased use of such services; recommendations shall be aimed at maximizing opportunities to meet public infrastructure needs. The commission shall include 15 members, including the Secretary of A & F, continued on page 9
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Legislative Update continued from page 7
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Legislative Update continued from page 9
House and Senate Pass Competing Transportation Finance Plans
I
n April, the Massachusetts Legislature tackled the question of raising revenues to address the Commonwealth’s growing transportation finance gap. Meeting within less than a week of each other, the House and then the Senate passed competing, although similar, transportation-financing plans. Legislation raising gas, tobacco, and business taxes in Massachusetts by $500 million and eventually dedicating up to $800 million a year in new revenues for transportation cleared the state Senate by a 30-5 vote. The House of Representatives passed a similar plan that raised slightly over $500 million. That said, the two branches must now negotiate the final legislation that gets sent to the Governor’s desk. Complicating the matter? The House bill fell just short of the vote required to override a potential veto. After Patrick threatened to veto the original bill offered by DeLeo and Murray, arguing that their original plan did not provide enough new revenues to meet transportation system needs, the Senate grew their planned revenue model to slightly less than the $1 billion sought by the Patrick-Murray Administration.
In raising funds, the House and Senate bills raise new revenue from a $1 per pack increase in the cigarette tax and increases on cigar and smokeless tobacco products, new sales taxes on computer design services and software modifications, the removal of a tax exemption for utilities, and a 3 cent increase in the gas tax, which would also be indexed to inflation, as measured by the Consumer Price Index (CPI). (Note: if the CPI falls, the gas tax does not under the terms of both bills.) In an effort to raise greater revenue without, ostensibly raising more taxes, the Senate Ways and Means Committee redirected a 2.5 cent gas tax surcharge for an underground storage tank cleanup fund to transportation programs. That move would generate roughly $80 million annually. The Senate plan would also mandate that the MassDOT lease right-of-way access to telecom and utility companies, a strategy that would bring in $40 million over three years, beginning in 2016. As the Legislature enters the month of May, State House watchers anticipate an agreement that will send a revenue package to the Governor before the end of the month. continued on page 13
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MAY, 2013
Legislative Update continued from page 11
As Spring Finally Arrives, Municipalities Begin to Examine Their Water Infrastructure Systems
A
s flowers begin to bloom across the Commonwealth, municipalities face the balance of assessing the current status of their infrastructure while meeting the other demands of providing local services. As reported in The Dedham Transcript, the Dedham Engineering Department, having tested several sewer systems in town for leaks, found 39 areas that will be addressed before the 2013 winter. Weston and Sampson performed smoke testing on about 155,000 linear feet of sanitary sewer in eight of the 26 subareas of Dedham from October 15 through November 15, 2012. According to the Transcript, the environmental and infrastructure consulting firm recommended that sewer frame and covers be replaced to redirect storm water (water from rain storms) that is currently going through the sewer system to the storm drain utility. Storm water is currently entering the sewer system, which is responsible for wastewater, through cracked pipes instead of going directly to the ground. Some of the recommendations include installation of five cleanout caps, lining manholes with cement, and installing smaller pipes in cracked pipes. The town will repair all municipal systems included in the report, but it will have to conduct further studies on the private property systems. To the north, the Lawrence Eagle Tribune recently published a troubling report on the amount of raw sewage that is working its way into the region’s waterways. According to the New England Center for Investigative Reporting (NECIR), billions of gallons of raw sewage and contaminated stormwater surge every year into the waterways and onto the streets of New England, as a 40-year-old pledge to clean America’s lakes, rivers and streams remains unfulfilled.
According to the report “[s]tormwater, burst pipes and antiquated infrastructure turn manholes into geysers and basements into fetid pools of sludge—all due to accidental overflows. But the largest assault on our waterways is a design fault hidden underground: old sewage systems that mix storm runoff with raw sewage and propel the contaminated combination, untreated, into rivers, streams, harbors, and bays. In 2011, approximately 2.8 billion gallons of sewage water spilled through 181 pipes throughout the state.” The NECIR investigation determined more than 7 billion gallons spewed into waterways across New England, the first such compilation of an annual total. The US Environmental Protection Agency has identified 772 communities across the country which routinely discharge sewage into water. The NECIR investigation found 65 of those towns and municipalities in New England had sewage overflows through 450 pipes in 2011, the latest year for which data was obtainable from most states. In 2011, sewage system operators in New England reported more than 7,700 instances when raw sewage, mixed with dirty stormwater, bypassed treatment facilities and was dumped into rivers, bays and the ocean. In identifying a potential cause for inadvertent discharges, the report identifies the fact that the Clean Water Act turned out to be far more costly than expected when passed in 1972. In 2008 the EPA estimated that another $64 billion is needed to fix the combined sewer problems, $4.2 billion of that in New England. continued on page 15
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Legislative Update continued from page 13
Primaries for United States Senator and 1st Suffolk State Senate Seat Completed
W
ith the June 25 general election on the horizon, voters across the Commonwealth went to the polls for the Democratic and Republican primaries on April 30. On the Democratic side, Congressman Ed Markey (MA-5th) squared off against Congressman Stephen Lynch (MA-9th) for the Democratic nomination. By a result of 57% to 43%, Congressman Markey defeated Congressman Lynch to advance to the general election. On the Republican side, State Representative and former judge, Dan Winslow, faced off against former United States Attorney Michael Sullivan, and veteran businessman Gabriel Gomez. In a battle largely fought in the shadow of the Democratic primary, Mr. Gomez bested the Republican field by a margin of 51% to 36% for Sullivan and 13% for Winslow.
O
Attorney General Announces New Appointments
n May 2, Attorney General Martha Coakley announced new appointments to lead her Fair Labor Division. In two recent staffing changes at the AG’s Office, Assistant Attorney General Matthew Berge has been appointed as the Fair Labor Division Chief. Deputy Division Chief Jocelyn Jones will continue in her role as Deputy Division Chief with the additional appointment as Special Counsel for Fair Labor Policy. According to the Attorney General’s Office, Berge has been an Assistant Attorney General with the office for 15 years, assigned most recently as a prosecutor in the Criminal Bureau’s Fraud and Financial Crimes Division. Prior to that, he was assigned to the Government Bureau’s Trial Division. In 2009, he was made senior litigation counsel in the Government Bureau for tobacco litigation and, in that role, prosecuted Massachusetts’s claims and assumed a leadership role on behalf of 47 states in a nationwide arbitration of the states’ claims against Big Tobacco under the landmark 1998 Tobacco Master Settlement Agreement. Previous to that, he served as Director of the Attorney General’s Abandoned Housing Initiative, a program that assists cities and towns address blight created by abandoned and foreclosed properties through health and safety code enforcement. Prior to join-
MAY, 2013
Voters within the 1st Suffolk State Senate District had the opportunity to vote in the primary to fill the seat vacated by former State Senator Jack Hart. Representative Nick Collins (D-South Boston) went head-to-head with Representative Linda Dorcena Forry (D-Dorchester) and Maureen Dahill (South Boston) in the closely watched race. Representative Forry won the primary with a final count of 47% to 45.26% for Collins, and 7.3% for Dahill. The election was closely watched as it represented the first time in years that the seat, traditionally held by someone from South Boston, was being actively contested by a resident from Dorchester. The general election for the 1st Suffolk State Senate seat will coincide with the statewide general election for United States Senate on June 25.
ing the Attorney General’s Office, Berge practiced law in Newark, New Jersey, concentrating in commercial litigation and employment matters. Berge, a Dorchester resident, is a graduate of Fordham Law School. Deputy Division Chief Jocelyn Jones will now serve as Deputy Division Chief and Special Counsel for Fair Labor Policy. Appointed Deputy Chief in 2007, Jones has managed division policy and outreach, directed the public construction bidding unit and child labor enforcement program, and assisted in overseeing wage and hour enforcement and litigation. Prior to her appointment as Deputy Division Chief, Jones served for nearly seven years as an Assistant Attorney General in the Fair Labor Division focusing on prevailing wage, overtime, vacation, minimum wage, and public construction bidding matters. Before joining the Attorney General’s Office, Jones was a staff attorney and an investigatory hearing officer at the former Massachusetts Labor Relations Commission (now Division of Labor Relations) and an attorney at the labor law firm Sandulli, Grace, P.C. Jones, a Northampton resident, is a graduate of Colby College, the Program for Women in Politics and Government at Boston College Graduate School, and Northeastern University School of Law. n
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MAY, 2013
MassDEP Releases Final CY2013 Clean Water & Drinking Water SRF Lists Totaling Over $512.3 Million
M
$391.4 MILLION FOR CLEAN WATER SRF IN 2013
assachusetts DEP is pleased to present the Final 2013 Intended Use Plan (IUP), which details the projects, borrowers, and amounts that will be financed through the Clean Water State Revolving Fund (CWSRF) program. The CWSRF is a joint federal-state financing program that provides subsidized interest loans to improve or protect water quality in the Commonwealth. As noted in Table 1, Massachusetts is offering approximately $391.4 million to finance clean water
projects across the Commonwealth. Approximately $361.1 million will fund 35 new construction projects, and an additional $10.5 million will be allocated towards funding previously approved multi-year projects. Also, $5 million will be directed to the Community Septic Management Program to remediate failed septic systems in participating communities. The Final IUP contains an additional $12.8 million for proposed planning projects and $2 million for an emergency set-aside account.
Table 1 Clean Water State Revolving Fund TABLE 1 CY2013 UseFUND Plan CLEAN WATER Intended STATE REVOLVING Calendar Year 2013 CWSRF Intended Use Plan
NEW PROJECTS
NEW PROJECTS Rating Applicant SRF ID Project Rating Applicant SRF ID Project
ProjectProject Cost
2013
IUPCost Cost Cost2013 IUP
137 NEW BEDFORD (EJ)(RE)#
3799 CSO Abatement Program
$178,500,000
$32,000,000
124 FALL RIVER (EJ)
3790 CSO Abatement Program
$24,450,000
$24,450,000
122 CHICOPEE (EJ)#
3750 Wastewater, WWTF and Stormwater Improvements
$4,430,000
$4,430,000
120 MARION
3792 Wastewater and Stormwater Improvement
$19,310,000
$10,000,000
117 TAUNTON (EJ)
3793 SSES Phases 10-12
$15,000,000
$15,000,000
116 SAUGUS (EJ)
3807 SSO Reduction Subsystem 6
$3,246,000
$3,246,000
114 LOWELL (EJ)#
3828 Phase IA CSO Control Project
$38,500,000
$25,000,000
111 MWRA
3824 CSO Phase 14
$29,237,000
$16,700,000
110 REVERE (EJ)
3832 Collection System Improvements
$14,850,000
$14,850,000
109 CAMBRIDGE (EJ)
3819 Huron B Sewer Separation Project
$35,507,000
$22,000,000
108 WORCESTER (EJ)
3763 Lake Ave Sewer I/I
$1,475,000
$1,475,000
107 FRAMINGHAM (EJ)
3810 Pump Station Removal
$16,181,000
$16,181,000
104 SHREWSBURY #
3760 Sewer I/I and Pump Station Improvement
$4,350,000
$4,350,000
97 WAREHAM (EJ)
3802 Sewer System Extension
$4,400,000
$4,400,000
93 YARMOUTH (EJ)(RE)#
3804 WW Improvements Program
$55,000,000
$15,000,000
92 FITCHBURG (EJ)
3765 Combined Sewer Separation Area 4D
$17,997,000
$17,997,000
91 GLOUCESTER (EJ)#
3830 West Gloucester WW System Improvements
$3,973,000
$3,973,000
86 GROTON
3752 CWMP Phase 1 Lost Lake Needs Area
$11,880,000
$11,880,000
85 WESTBOROUGH
3774 Sewer Extensions
$26,550,000
$15,000,000
85 CRPCD #
3759 WWF Improvements Phase C
$25,070,000
$25,070,000
84 MALDEN (EJ)
3838 Sewer Improvements
$5,000,000
$5,000,000
84 NORWOOD (EJ)
3801 Meadowbrook Area Sewer Rehab
$2,700,000
$2,700,000
84 CHATHAM
3795 Collection System Extension and Improvements
81 LOWELL (EJ)#
3827 Phase IC WWTF & Collection System CIP
81 PALMER MAY, 2013 (EJ) 80 MWRA
$24,240,000 $15,000,000 continued on page 18 $6,000,000
3748 SewerTHE Replacement $6,090,000 “BUY FROM ADVERTISERS IN CONSTRUCTION OUTLOOK” 3822 Clinton WWTP
$3,300,000
$6,000,000 $6,090,000 17 $3,300,000
92 FITCHBURG (EJ)
3765 Combined Sewer Separation Area 4D
91 GLOUCESTER (EJ)#
3830 West Gloucester WW System Improvements
86 GROTON
3752 CWMP Phase 1 Lost Lake Needs Area
85 WESTBOROUGH DEP/SRF continued from page 3774 17 85 CRPCD #
Sewer Extensions
3759 WWF Improvements Phase C
NEW PROJECTS (cont.)
$17,997,000
$17,997,000
$3,973,000
$3,973,000
$11,880,000
$11,880,000
$26,550,000
$15,000,000
$25,070,000
$25,070,000
84 MALDEN (EJ) 3838 Sewer Improvements $5,000,000 Rating Applicant SRF ID Project Project Cost 84 NORWOOD (EJ) 3801 Meadowbrook Area Sewer Rehab $2,700,000 84 CHATHAM
3795 Collection System Extension and Improvements
81 LOWELL (EJ)#
$5,000,000 2013
IUP Cost $2,700,000
$24,240,000
$15,000,000
3827 Phase IC WWTF & Collection System CIP
$6,000,000
$6,000,000
81 PALMER (EJ)
3748 Sewer Replacement
$6,090,000
$6,090,000
80 MWRA
3822 Clinton WWTP
$3,300,000
$3,300,000
73 FRAMINGHAM (EJ)
3829 Sewer Main Replacement
$4,780,000
$4,780,000
69 TYNGSBOROUGH
3818 Phase I and II Sewers
$8,834,000
$5,000,000
64 BROCKTON (EJ)
3805 Wastewater System Improvements
$1,300,000
$1,300,000
62 DRACUT (EJ)
3826 Contract No. 32 Sewer Extensions
61 NORTON
3803 Norton Center Sewer Extension
$4,610,000
$4,610,000
$14,685,000
$10,000,000
56 MONTAGUE (EJ)#
3747 Pumping Station Replacement
$7,000,000
$5,000,000
48 MWRA
3823 Caruso Pump Station
$2,398,000
$1,000,000
48 BRIDGEWATER
3794 Inspection, Cleaning and Lining of Sewers
$4,760,500
$4,760,500
33 QUINCY (EJ)#
3808 Fort Square Pumping Station Rehab
TOTAL OF NEW PROJECTS
TOTAL35)OF (Count:
NEW PROJECTS (Average Rating: 93.14)
(Count: 35) (Average Rating: (Count: 35) (Average Rating: 89.6) 89.6) (EJ) - Environmental Justice Communities (EJ) - Environmental Justice Communities (RE) - Potential Renewable Energy Projects (RE) - Potential Energy Projects # - ProjectsRenewable contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of a Green Project (http://water.epa.gov/aboutow/eparecovery/index.cfm) # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of a Green Project
$3,543,000
$3,543,000
$629,146,500
$361,085,500
$629,146,500
$361,085,500
continued on page 19
(http://water.epa.gov/aboutow/eparecovery/index.cfm)
MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS Applicant
SRF ID Project
Project Cost
2012 IUP Cost
MWRA
1762 Plant Optimization/Ancillary Modifications
$26,657,515
$3,000,000
MWRA
3134 Deer Island Treatment Plant Improvements
$81,559,117
$3,000,000
MWRA
$44,461,788
$3,000,000
MWRA
2885 Wastewater Treatment Plant and Sewer Improvements 2870 Electrical Upgrades
$73,215,641
$3,000,000
SOUTHBRIDGE (EJ)
3100 Brownfields Redevelopment
$4,846,160
$1,700,000
TAUNTON (EJ)
3580 Phases 8 - 9 SSES and Pump Station Upgrades
TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS
$10,000,000
$4,000,000
$240,740,221
$17,700,000
(Count: 6) MassDEP PRIORITY PROJECTS Applicant
SRF ID Project
EMERGENCY SRF SET-ASIDE
2977
TOTAL OF MassDEP PRIORITY PROJECTS
Project Cost $2,000,000 $2,000,000
2012 IUP Cost $2,000,000 $2,000,000
(Count: 1) PLANNING PROJECTS Applicant BLACKSTONE (EJ) BOURNE (EJ) BOURNE (EJ) BRIDGEWATER (EJ) CANTON
18
Serving the Bonding and Insurance needs ofProject the Cost N.E. construction industry for over 40 years. $400,000 3653 Stormwater Management Plan
SRF ID Project
Adam DeSanctis Gregory 3710 Stormwater Management Plan Juwa James Axon $300,000 3709 Comprehensive and Nutrient Gilbert Plan $350,000 Michael Carney Wilder Wastewater Parks Michael Bryan Juwa 3744 Water Resource Management Plan $250,000 David Boutiette Paul Patalano Dick Caruso
2012 IUP Cost $400,000 $300,000 $350,000 $250,000
3706 Stormwater Management Plan
$491,000
$491,000
MELROSE
3671 Stormwater Fee and Management Plan
$450,000
$450,000
NANTUCKET
3704 CWMP
$685,000
$685,000
NORWOOD
3716 SSES/CMOM/Stormwater Planning
$500,000
$500,000
PEMBROKE PLYMOUTH (EJ)
“BUY FROM3708 THEStormwater ADVERTISERS IN CONSTRUCTION OUTLOOK” Management Plan $340,000 3707 CWMP
$500,000
MAY, $340,000 $500,000
2013
DEP/SRF continued from page 18 MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS
Applicant
SRF ID
Project
Applicant SRF ID Project MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MWRA 3668 Island Headworks Electrical & Conveyor Improv. Applicant SRF ID Nut Project MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MWRA 3134 IslandHeadworks Treatment Electrical Plant Improvements Applicant SRF ID Deer Project 3668 Nut Island & Conveyor Improv.
Project Cost
Project Cost
2013 IUP Cost
2013 IUP Cost
Project$8,700,000 Cost
$4,700,000 2013 IUP Cost
$81,559,117 Project Cost $8,700,000
$1,800,000 2013 IUP Cost $4,700,000
MWRA MWRA
2885 TreatmentElectrical Plant Improvements and&Sewer Improvements 3134 Deer IslandHeadworks Treatment Plant 3668 Wastewater Nut Island Conveyor Improv.
$46,198,383 $81,559,117 $8,700,000
$2,000,000 $1,800,000 $4,700,000
MWRA MWRA
2870 Upgrades 2885 Electrical Wastewater Treatment Plant Plant Improvements and Sewer Improvements 3134 Deer Island Treatment
$73,215,641 $46,198,383 $81,559,117
$2,000,000 $1,800,000
TOTAL OFMWRA MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS 2870 Wastewater Electrical Upgrades 2885 Treatment Plant and Sewer Improvements
TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS (Count: TOTAL4)OFMWRA MULTI-YEAR PROJECTS 2870 Electrical Upgrades (Count: 4) CARRYOVER AND STATUTORY
$209,673,141 $73,215,641
(Count: TOTAL4) OFPRIORITY MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS MassDEP PROJECTS (Count: 4) Applicant MassDEP PRIORITY PROJECTS
Applicant COMMUNITY SEPTIC Applicant
SRF ID
$209,673,141
MassDEP PRIORITY PROJECTS Project
SRF ID 3850 SRF ID Project
Project Cost
MassDEP PRIORITY PROJECTS MANAGEMENT PROGRAM Applicant SRF ID Project COMMUNITY SEPTIC 3850 EMERGENCY SRF SET-A-SIDE 2977 MANAGEMENT PROGRAM COMMUNITY SEPTIC 3850 EMERGENCY SRF SET-A-SIDE 2977 MANAGEMENT PROGRAM TOTAL OF MassDEP PRIORITY PROJECTS EMERGENCY SRF SET-A-SIDE 2977 (Count: OF MassDEP PRIORITY PROJECTS TOTAL2)OFTOTAL MassDEP PRIORITY PROJECTS
(Count: 2)
(Count: 2) TOTAL OF MassDEP PRIORITY PROJECTS PLANNING PROJECTS (Count: 2) Applicant SRF ID Project PLANNING PROJECTS ABINGTON Applicant PLANNINGApplicant PROJECTS BROCKTON Applicant ABINGTON
3797 SRF ID CWMP Project
SRF ID
3806 Management Plan SRF ID Stormwater Project 3797 CWMP
Project Cost Project$5,000,000 Cost
$10,500,000 $2,000,000 $10,500,000
2013 IUP Cost
2013 IUP Cost $5,000,000 2013 IUP Cost 2013 IUP Cost $5,000,000 $2,000,000 $5,000,000 $2,000,000 $7,000,000 $2,000,000 $7,000,000 $7,000,000
$7,000,000
$7,000,000 2013 IUP Cost
$725,000 Project Cost
$10,500,000 $2,000,000
$10,500,000
Project$5,000,000 Cost $2,000,000 $5,000,000 $2,000,000 $7,000,000 $2,000,000 $7,000,000 $7,000,000
Project Cost
PLANNING PROJECTS
Project
$209,673,141 $73,215,641 $46,198,383
$209,673,141
Project Cost
$200,000 Project Cost $725,000
2013 $725,000 IUP Cost
2013 IUP Cost
2013 $200,000 IUP Cost $725,000
CHICOPEE BROCKTON ABINGTON
3751 3806 Stormwater Management Plan 3797 IMSWRMP CWMP
$1,000,000 $200,000 $725,000
$1,000,000 $200,000 $725,000
EASTHAMPTON CHICOPEE BROCKTON
3749 3751 IMSWRMP 3806 IWRMP Stormwater Management Plan
$1,100,000 $1,000,000 $200,000
$1,100,000 $1,000,000 $200,000
GLOUCESTER EASTHAMPTON CHICOPEE
3820 & SW System Inventory 3749 IWRMP 3751 WW IMSWRMP
$1,000,000 $1,100,000 $1,000,000
$1,000,000 $1,100,000 $1,000,000
LAWRENCE GLOUCESTER EASTHAMPTON
3809 andSystem SSES Inventory 3820 WW & SW 3749 CMOM IWRMP
$1,920,000 $1,000,000 $1,100,000
$1,920,000 $1,000,000 $1,100,000
MALDEN LAWRENCE GLOUCESTER
3839 Management Plan 3809 CMOM andSystem SSES Inventory 3820 Stormwater WW & SW
$500,000 $1,920,000 $1,000,000
$500,000 $1,920,000 $1,000,000
MELROSE MALDEN LAWRENCE
3821 Plan Implementation 3839 3809 Stormwater CMOM and Management SSES
$473,000 $500,000 $1,920,000
$473,000 $500,000 $1,920,000
NEW BEDFORD MELROSE MALDEN
3798 II WWManagement and Stormwater 3821 Stormwater Planplan Implementation 3839 Phase
$2,000,000 $473,000 $500,000
$2,000,000 $473,000 $500,000
NORWOOD NEW BEDFORD MELROSE
3800 3798 Phase II WWPlanning and Stormwater 3821 Stormwater Stormwater Management Planplan Implementation
$500,000 $2,000,000 $473,000
$500,000 $2,000,000 $473,000
PLAINVILLE NORWOOD NEW BEDFORD
3796 Program 3800 Stormwater 3798 I/I Phase II WWPlanning and Stormwater plan
$225,000 $500,000 $2,000,000
$225,000 $500,000 $2,000,000
REVERE PLAINVILLE NORWOOD
3831 Investigation and Illicit Connection Detecti 3796 I/I Program 3800 Field Stormwater Planning
$1,500,000 $225,000 $500,000
$1,500,000 $225,000 $500,000
REVERE PLAINVILLE
3817 Program and Illicit Connection Detecti 3831 Field Investigation 3796 CMOM I/I Program
$300,000 $1,500,000 $225,000
$300,000 $1,500,000 $225,000
RUTLAND REVERE
3753 3817 CMOM Program and Illicit Connection Detecti 3831 CWMP Field Investigation
$350,000 $300,000 $1,500,000
$350,000 $300,000 $1,500,000
WORCESTER RUTLAND REVERE
3762 Ave SSES 3753 CWMP 3817 Lake CMOM Program
$1,022,000 $350,000 $300,000
$1,022,000 $350,000 $300,000
TOTAL OFWORCESTER PLANNING PROJECTS RUTLAND
3762 Ave SSES 3753 Lake CWMP
$12,815,000 $1,022,000 $350,000
$12,815,000 $1,022,000 $350,000
(Count: TOTAL15) OFWORCESTER PLANNING PROJECTS
3762 Lake Ave SSES
$12,815,000 $1,022,000
$12,815,000 $1,022,000
(Count: TOTAL15) OF PLANNING PROJECTS
TOTAL OF INTENDED USE PLAN
(Count: 15) TOTAL OF PLANNING PROJECTS TOTAL OF INTENDED USE PLAN (Count: 15) TOTAL OF INTENDED USE PLAN TOTAL OF INTENDED USE PLAN
$12,815,000 $858,634,641
$12,815,000
$858,634,641
$12,815,000 $391,400,500
$12,815,000
$391,400,500
$858,634,641 $391,400,500 $391,400,500 $858,634,641
continued on page 21
MAY, 2013
“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”
19
AGGREGATES • HOT MIX ASPHALT • CONSTRUCTION SERVICES
998 RESERVOIR ROAD LUNENBURG, MA 978-582-5200
875 PHENIX AVENUE CRANSTON, RI 401-942-7300
2140 BRIDGE STREET DRACUT, MA 978-454-7878
72 SO. MAIN STREET ACUSHNET, MA 508-992-3542
WWW.PJKEATING.COM MEMBER
20
UCARI
CIRI
MAAPA
“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”
MAY, 2013
DEP/SRF continued from page 19
M
$120.9 MILLION FOR DRINKING WATER SRF IN 2013
assachusetts DEP is pleased to present the Final 2013 Intended Use Plan (IUP) which details the projects, borrowers, and amounts that will be financed through the Drinking Water State Revolving Fund (DWSRF) program. The DWSRF is a joint federal-state financing program that provides subsidized interest loans to protect public health by improving water supply, infrastructure systems, and protecting drinking water in the Commonwealth.
As noted in Table 1, Massachusetts is offering approximately $120.9 million to finance drinking water projects across the Commonwealth. Approximately $101.7 million will fund 24 new projects and an additional $16.4 million will be allocated towards funding 9 previously approved multi-year projects. The Final IUP also contains $800,000 for 2 planning projects, and $2 million to fund an emergency set-aside account.
Table 1 Drinking Water State Revolving Fund CY2013 Intended Use Plan TABLE 1 DRINKING WATER STATE REVOLVING FUND Calendar Year 2013 DWSRF Intended Use Plan NEW PROJECTS
2013 Rating Applicant SRF Cost 2013IUP Rating Applicant SRF IDID Project Project ProjectProject Cost IUPCost Cost
NEW PROJECTS
92.0
BELLINGHAM
3771 New Water Treatment Plants
$15,350,000
$10,000,000
73.0
LAWRENCE (EJ)#
3814 Water Main Replacement
$21,895,000
$10,000,000
70.0
TRI-TOWN WATER BOARD (EJ)#
3783 New Replacement Regional Water Treatment
$45,000,000
$1,000,000
$375,000
$375,000
69.0 *CHESTER
3766 Water Treatment Plant Improvements
62.0
RANDOLPH (EJ)
3777 Water System Improvements
$5,545,000
$5,545,000
60.0
FALL RIVER (EJ)
3787 Water Main Improvements Phase 13
$1,075,000
$1,075,000
59.0 *COHASSET (RE)#
3776 install solar tank mixers, new roof and pv panels
$1,400,000
$1,400,000
55.0
MEDWAY
3768 Water Main Replacement
$2,000,000
$2,000,000
52.0
NORTON (RE)#
3786 Water Treatment Plant
$6,700,000
$6,700,000
51.0
MALDEN (EJ)#
3837 Water Distribution Systems Improvements
$9,315,000
$9,315,000
51.0
SCITUATE WATER DIVISION (RE)#
3785 Pump Station Improvements and Greesand Filter Plan
$3,590,000
$3,590,000
51.0
BARNSTABLE (EJ)
3780 Hyannis Water System Improvements
$3,170,000
$3,170,000
51.0
LOWELL (EJ)#
3769 Redundant Transmission Main
$7,957,000
$7,957,000
50.0
SPRINGFIELD WSC (EJ)
3756 South Water Transmission Main Replacement
$28,200,000
$14,000,000
50.0
WEBSTER (EJ)
3761 Water Main
$2,140,000
$2,140,000
49.0
LOWELL (EJ)#
3811 Meter Replacement and AMR System
$9,750,000
$5,000,000
48.0
CHICOPEE (EJ)#
3758 Meter Infrastructure Project
$8,161,000
$4,000,000
48.0
SPRINGFIELD WSC (EJ)
3767 Redundant Chicopee River Water Transmission Main
$2,970,000
$2,970,000
48.0
HARWICH (EJ)(RE)#
3781 Water Treatment Plant
$1,960,000
$1,960,000
48.0
LYNN WATER & SEWER COMM (EJ)
3816 Low Service Reservior Improvements
$520,000
$520,000
47.0
KINGSTON (RE)#
3782 Trackle Pond WTF Upgrades
$6,863,000
$4,000,000
46.0
BROCKTON (EJ)
3784 Water Main Replacement
$3,400,000 continued
46.0
FALL RIVER (EJ)
3788 Airport Road High Service Area Improvements
$3,835,000
$2,000,000
$935,000
$935,000
44.0 *TURNERS FALLS
MAY, 2013 TOTAL OF NEW PROJECTS
3755 Hannegan Brook Well Pump Station
“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” $192,106,000
on$2,000,000 page 23
21 $101,652,000
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50.0 WEBSTER (EJ) 3761 Water Main $2,140,000 49.0 LOWELL (EJ)# 3811 Meter Replacement and AMR System $9,750,000 49.0 LOWELL (EJ)# 3811 Meter Replacement and AMR System $9,750,000 48.0 CHICOPEE (EJ)# 3758 Meter Infrastructure Project $8,161,000 48.0 CHICOPEE (EJ)# 3758 Meter Infrastructure Project $8,161,000 48.0 SPRINGFIELD WSC (EJ) 3767 Redundant Chicopee River Water Transmission Main $2,970,000 48.0 SPRINGFIELD WSC (EJ) 3767 Redundant Chicopee River Water Transmission Main $2,970,000 48.0 HARWICH (EJ)(RE)# $1,960,000 continued from page 21 3781 Water Treatment Plant 48.0 HARWICH (EJ)(RE)# 3781 Water Treatment Plant $1,960,000 48.0 LYNN WATER & SEWER COMM 3816 Low Service Reservior Improvements $520,000 (EJ) 48.0 LYNN WATER & SEWER COMM 3816 Low Service Reservior Improvements $520,000 (EJ) 47.0 KINGSTON (RE)# 3782 Trackle Pond WTF Upgrades $6,863,000 Rating Applicant SRF Project Cost 47.0 KINGSTON (RE)# 3782ID Project Trackle Pond WTF Upgrades $6,863,000 46.0 BROCKTON (EJ) 3784 Water Main Replacement $3,400,000 46.0 BROCKTON (EJ) 3784 Water Main Replacement $3,400,000 46.0 FALL RIVER (EJ) 3788 Airport Road High Service Area Improvements $3,835,000 46.0 FALL RIVER (EJ) 3788 Airport Road High Service Area Improvements $3,835,000 44.0 *TURNERS FALLS 3755 Hannegan Brook Well Pump Station $935,000 44.0 *TURNERS FALLS 3755 Hannegan Brook Well Pump Station $935,000
DEP/SRF
NEW PROJECTS (cont.)
TOTAL OF NEW PROJECTS
$192,106,000
TOTAL OF NEW PROJECTS (Average Rating:(Average 55) Rating: 55.)
TOTAL OF 24) NEW PROJECTS (Count: (Count: 24)
(Count: 24) * - Small System
$192,106,000
$192,106,000
$2,140,000 $5,000,000 $5,000,000 $4,000,000 $4,000,000 $2,970,000 $2,970,000 $1,960,000 $1,960,000 $520,000 $520,000
2013 $4,000,000 IUP Cost $4,000,000
$2,000,000 $2,000,000 $2,000,000 $2,000,000 $935,000 $935,000 $101,652,000
$101,652,000 $101,652,000
(Average Rating: 55.)
(EJ) System - Environmental Justice Communities * - Small - Potential Renewable Energy Projects (EJ) (RE) - Environmental Justice Communities Projects contains Energy Efficiency, (RE)#--Potential Renewable Energy ProjectsRenewable Energy, and/or meets EPA's definition of a Green Project (http://water.epa.gov/aboutow/eparecovery/index.cfm) # - Projects contains Energy Efficiency, Renewable Energy, and/or meets EPA's definition of a Green Project
(http://water.epa.gov/aboutow/eparecovery/index.cfm)
MassDEP PRIORITY PROJECTS
MassDEP PRIORITY PROJECTS
Applicant
Applicant
MassDEP PRIORITY PROJECTS
SRF ID
SRF ID Project
EMERGENCY SRF SET-A-SIDE SRF 2978 Applicant ID Project MassDEP PRIORITY PROJECTS EMERGENCY SRF SET-A-SIDE 2978 Applicant ID Project TOTAL OF MassDEP PRIORITYSRF PROJECTS
TOTAL OF MassDEP PRIORITY PROJECTS
(Count: 1) SRF SET-A-SIDE EMERGENCY
(Count: TOTAL1)OF MassDEP PRIORITY PROJECTS
2978
(Count: 1) MULTI-YEAR CARRYOVER AND PROJECTS STATUTORY PROJECTS TOTAL OF MassDEP PRIORITY MULTI-YEAR
CHERRY VALLEY & ROCHDALE LAWRENCE (EJ)(RE)#
3691 Water Modification to Water Treatment Plant 3719 Infrastructure Improvement
MWRA
3160 NHS - Revere & Malden Pipeline
MWRA
3719 Water Infrastructure Improvement
3160 NHS - Revere & Malden Pipeline 3719 Northern Water Infrastructure 3050 Low ServiceImprovement Area Rehabilitation MWRA 3050 Northern Low Service Area Rehabilitation MWRA 3160 New NHSConnecting - Revere & Mains Malden Pipeline MWRA 3049 MWRA 3049 New Connecting Mains MWRA 3050 Northern Low Service Area Rehabilitation MWRA 3048 Lower Hultman Aqueduct Rehabilitation MWRA 3048 Lower Hultman Aqueduct Rehabilitation MWRA 3049 New Connecting Mains MWRA 1680 Southern Spine Distribution Mains MWRA 1680 Southern Spine Distribution Mains MWRA 3048 Lower Hultman Aqueduct Rehabilitation MWRA 1679 MWRA 1679 Blue Blue Hills Hills Covered Covered Storage Storage MWRA 1680 Southern Spine Distribution Mains MWRA 3727 MWRA ## 3727 Low Low Service Service Storage Storage MWRA 1679 Blue Hills Covered Storage TOTAL TOTAL OF OF MULTI-YEAR MULTI-YEAR CARRYOVER CARRYOVER AND AND STATUTORY STATUTORY PROJECTS PROJECTS TOTAL #OF MULTI-YEAR CARRYOVER PROJECTS MWRA 3727AND LowSTATUTORY Service Storage (Count: 9) 9) (Count: (Count: 9) TOTAL OF MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS PLANNING PROJECTS PROJECTS PLANNING (Count: 9) Applicant SRF ID ID Project Project Applicant SRF
$2,000,000 Project Cost $2,000,000
$2,000,000
$2,000,000 2013 IUP Cost $2,000,000
$2,000,000 $2,000,000
$2,000,000 $2,000,000
$1,882,300 Project Cost
$1,882,300 2013 IUP Cost
$1,882,300 $8,522,025
$1,882,300 $4,522,025
$10,457,816
$1,000,000
$8,522,025 $18,346,655
$4,522,025 $1,000,000
$550,000 $550,000 Project Cost Project Cost $250,000 $250,000 $550,000 $800,000 $800,000 $250,000
$2,000,000
2013 IUP Cost
2013 2013 IUP IUPCost Cost
Project Cost Cost Project
3851 GIS Implementation of AMR Program
$2,000,000
Project Project CostCost $1,882,300
$314,426,025
3852 Water Distribution System and Hydraulic Model 3852 Distribution System and Hydraulic SRF Water ID Project Model SRF ID Project 3851 GIS Implementation of AMR Program 3851 GIS Implementation of AMR Program 3852 Water Distribution System and Hydraulic Model
TOTAL OF INTENDED USE PLAN TOTAL OF INTENDED USE PLAN
Project Cost
$18,346,655 $10,457,816 $47,880,847 $47,880,847 $18,346,655 $53,112,388 $53,112,388 $47,880,847 $65,685,888 $65,685,888 $53,112,388 $40,687,106 $40,687,106 $65,685,888 $67,851,000 $67,851,000 $40,687,106 $314,426,025 $314,426,025 $314,426,025 $67,851,000
TOTAL OF PLANNING PROJECTS TOTAL OF INTENDED USE PLAN (Count: 2) TOTAL OF INTENDED USE PLAN
MAY, 2013
$2,000,000 2013 IUP Cost
$10,457,816
PLANNING PROJECTS
(Count: 2)
Project$2,000,000 Cost
$8,522,025
LAWRENCE (EJ)(RE)# MWRA
PLANNINGREVERE PROJECTS WATER DEPT. REVERE WATER DEPT. Applicant Applicant REVERE WATER DEPT. REVERE WATER DEPT. REVERE WATER DEPT. TOTAL OF PLANNING PROJECTS TOTAL OF REVERE PLANNING PROJECTS WATER DEPT. (Count: 2) (Count: TOTAL2)OF PLANNING PROJECTS
2013 IUP Cost 2013 IUP Cost
CARRYOVER AND STATUTORY PROJECTS $2,000,000
Applicant SRFPROJECTS ID Project MULTI-YEAR CARRYOVER AND STATUTORY (Count: 1) Applicant SRF Applicant SRF ID ID Project Project CHERRY VALLEY & ROCHDALE 3691 Modification to Water Treatment Plant MULTI-YEAR CARRYOVER AND STATUTORY PROJECTS WATER DISTRICT CHERRY VALLEY &# ROCHDALE 3691 Modification to Water Treatment Plant Applicant SRF ID Project WATER DISTRICT # WATER DISTRICT # LAWRENCE (EJ)(RE)#
Project Cost
Project Cost
$800,000
$800,000 $509,332,025
$509,332,025
$1,882,300
$4,522,025 $1,000,000 $1,000,000
$1,000,000 $1,500,000 $1,500,000
$1,000,000 $1,500,000 $1,500,000
$1,500,000 $1,000,000 $1,000,000 $1,500,000
$1,500,000 $1,500,000
$1,000,000
$2,500,000 $2,500,000
$1,500,000
$16,404,325 $16,404,325
$16,404,325 $2,500,000
$16,404,325 2013 IUP IUP Cost Cost 2013 $550,000 $550,000 2013 IUP Cost 2013 IUP Cost $250,000 $550,000 $800,000 $800,000 $250,000
$250,000
$800,000
$800,000 $120,856,325
$120,856,325
$509,332,025 $120,856,325 $120,856,325 $509,332,025
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W
ith great sorrow, we mourn the loss of UCANE member and friend, John Amorello, Sr. (J. E. Amorello, Inc.) who passed away on April 3, 2013 at the age of 89. John is survived by his three children, Irene, Janet, and Edward, and seven grandchildren. He was predeceased by his wife Louise, and two children, Carol and John Jr. After serving in the Army Air Corps/Air Force during WWII, John went to work for the A. Amorello Construction Company, which was started by his father in 1914. In 1995 he became the founder and owner of J. E. Amorello, Inc.
John was a life long member of Our Lady of Mt. Carmel-St. Ann Church, and belonged to Local 4-IUOE. He was also a member of the Worcester Art Museum, The American Legion Post 201 East Side, the Air Force Association, and was a 4th Degree Knight of Columbus. John was an Overseer at Sturbridge Village and a member of the Pope John Council XXIII Knights. John strongly supported our Association, and was a valued member of UCANE since 1975. The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathy and condolences to the Amorello family. n
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10/20/10 8:50 AM
MAY, 2013
Charles E. Schaub, Jr. Esq., Hinckley Allen Snyder LLP
Recent Bid Protest Decisions:
Bidder Responsibility and Project Experience Editor’s Note: I would like to acknowledge the assistance of my colleague, Luke Conrad, who prepared this article. Luke is an Associate in the Construction and Public Contracts Group in Hartford, CT.
The Office of the Attorney General has issued a series of bid protest decisions over the past year that involve the determination of whether a bidder is “responsible” and “eligible” to be awarded a public construction contract. Specifically, three recent decisions consider the sufficiency of the project experience submitted by prospective bidders in statements of qualifications.
A
ttorney General’s Office issued its decision in response to a recent bid protest against an awarding authority with respect to an airport project (“Project”). A general contractor submitted a protest because of the awarding authorities decision to reject the general contractor’s low bid on the Project. The basis for the rejection of the bid was that the awarding authority concluded that the general contractor was not a responsible bidder because the qualification specification required bidders with at least five (5) years of continuous experience as a prime contractor on public works projects with a contract amount over $500,000 and a scope of work similar to the proposed work. The general contractor submitted the low bid of $1,630,400. The second low bidder submitted a bid of $1,667,900. For its similar project experience, the general contractor listed road relocations on the access roads and miscellaneous utility work. Additionally, the low bidder listed projects with contract values under $100,000, and a road project in Connecticut, with a contract value of approximately $600,000; however, the general contractor omitted experience on a large transit project.
MAY, 2013
On June 15, 2012, the awarding authority informed the general contractor that it had decided to award the contract to the second bidder. The general contractor sought reconsideration, supplying information regarding a $950,000 contract for a roadway relocation and the large transit contract. The awarding authority was not swayed by the general contractor’s request for reconsideration and determined that while the second bidder did not have extensive apron experience, it did have extensive bridge experience which the awarding authority deemed to be similar to the apron work. The awarding authority’s engineer reviewed the Massachusetts Department of Transportation (“MassDOT”) model bridge specifications and determined that bridge work requires much of the same placement, testing, grading, joints and curing as apron work, and therefore, determined that the second bidder’s experience was superior to that of the general contractor. By statute, public contracts are awarded in Massachusetts to the lowest responsive and eligible bidder and a protesting bidder bears the burden to prove that the rejection of its bid was illegal or arbitrary. continued on page 28
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Legal Corner continued from page 27 THE DRISCOLL DIFFERENCE:
The Attorney General, in this decision, determined that the general contractor had not met its burden because the explanation for the awarding authority’s rejection of its bid – that its experience was not five years of continuous experience with respect to a scope of work similar to the proposed work – was not arbitrary and represented a plausible and sustainable decision of the awarding authority. While the decision by the Attorney General was not brimming with support for fter serving major contractors for more “The entire surety bonding team at than 50 years, the Driscoll Agency truly the second bidder’s experience, the Driscoll has the experience, expertise understands the unique risks, insurance requireand industry contacts to give us the best decision reflects the tenet that the ments and surety demands of the construction possible representation and service. industry. awarding authority is given a wide In an industry as specialized as ours, we wouldn’t consider letting any other Managing risk can be very difficult. Which is why berth for determinations of the lowagency handle this important need of it’s critical to obtain adequate and proper insurance coverages. Our underwriting specialists will work our company.” – Satisfied Client est responsive and eligible bidder, with your best interests in mind when proposing and therefore, the awarding authorsolutions to your insurance needs. To discover the Driscoll difference, contact ity’s decision to reject the general When it’s time to navigate through the comTim Lyons, Bond Department Manager at plexities of surety bonding, you can rely on our contractor’s bid was upheld. 781-421-2560 or tlyons@driscollagency.com. expertise and connections to get you aggressive representation and unbeatable access to On December 7, 2012, the Atindustry decision-makers. torney General issued a decision with respect to a project put out to bid by an awarding authority for a roof repair project (“Project”). The protest was filed by the general contractor, the low bidder. The awarding authority determined that the general contractor was not a responsible bidder because it did not have similar project experience to perform the Project. The estimated construction cost for the Project was $90,000 The Driscoll Agency, Inc. • 93 Longwater Circle, Norwell, MA 02061 • Phone (781) 681-6656 • Fax (781) 681-6686 • www.driscollagency.com – the general contractor’s bid was $78,898. In submitting its bid, the general contractor listed a series of bitrary and/or capricious as the explanation for the repair projects valued between $9,000 and $55,000. UCANE half 1.12 color.indd 1 1/6/12 2:56 PM rejection was both plausible and sustainable – that These projects involved: roofing repair, PVC trim the general contractor did not have the required renwork, siding repair and historic masonry repairs. ovation experience with projects of a similar value. The awarding authority rejected the general On September 10, 2012, the Attorney General iscontractor’s bid on the basis that the nature of the sued a bid protest decision regarding an awarding company’s past projects was not indicative of the authority’s decision to reject the low bid on a city pavexperience it sought for the Project. Moreover, the ing project (“Project”). The Project included street awarding authority found that all of the projects that resurfacing and had an estimated construction cost the general contractor listed on its bid form were reof $1 million. The awarding authority concluded that pair projects and were of a lesser contract value than the general contractor was not a responsible bidder on the awarding authority’s project. In upholding the for this particular project because it did not have comawarding authority’s determination that it would reject parable public experience as a general contractor for the general contractor’s bid, the Attorney General noted that the decision could not be said to be arcontinued on page 29
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MAY, 2013
Legal Corner continued from page 28 projects of similar scope and size to the Project. When bids opened on August 9, 2012, the general contractor was the low bidder, approximately $10,000 below the second bidder. In its bid form, however, the general contractor listed mostly private projects, save for a curb repair, a paving and sidewalk project. The general contractor also listed nine contracts in which it was a subcontractor, not a general contractor. The awarding authority noted in its analysis of general contractor’s experience that it had performed work on static roadways and parking lots, not on major roads as would be required by this project. In rejecting the general contractor’s bid, the awarding authority noted that there was a significant difference in potential liability and the risk factor with respect to performing work as a general contractor in comparison to working as a subcontractor. An additional factor in the rejection was that the general contractor also failed to provide a list of current project information, the experience of its principals and a WBE/MBE subcontracting plan. The general contractor also argued that the awarding authority improperly considered the distinction between general contracting work and subcontracting work; MassDOT, it argued, when prequalifying contractors for Chapter 90 work, takes into
consideration subcontracting experience as well as general contracting experience. In reviewing the awarding authority’s decision not to award the contract to the general contractor, the Attorney General again determined that absent illegal or arbitrary acts by the awarding authority, their discretion would be upheld. Finally, according to the Attorney General, just because MassDOT prequalifies a general contractor, it does not preclude the awarding authority from determining the lowest responsible and eligible bidder for its project.
Contractors submitting bids for public projects in Massachusetts should ensure that the prior project experience or statement of qualifications sections in bid forms highlight relevant experience and work on similar projects. The foregoing decisions emphasize the considerations and analyses performed by awarding authorities and demonstrate that failure to include relevant project experience by a contractor can result in losing the project. Contractors should ensure they present a thorough and thoughtful presentation of any and all relevant project experience. n
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MAY, 2013
BENEFITS & HR TRATEGIES Doug V. Mure, Director HR Consulting & Outsourcing, Pinnacle Financial Group
Why and How to Revamp Your Performance Appraisal Process For many employers and employees, the performance review process is a little like doing taxes – an annual exercise to be trudged through at best (even if bonuses or other monetary rewards are on the line) and a source of potential liabilities at its worst. With very few exceptions, a revitalized, comprehensive performance appraisal process, with appropriate training and communication, will achieve several important objectives: • Positively impact supervisor– subordinate relationships leading to increased productivity • Enhance your company’s overall reputation as one that supports career development, goal setting, and rewards, which are key in recruiting the best talent • Diminish liability through proper documentation in cases of employee underperformance An effective performance management system should be based on an organization’s commitment to communicate openly and honestly about the expectations of managers and the contributions of employees both before and after a performance review. It is a coaching tool, in addition to a potentially critical piece of legal documentation. What follows is a blueprint of a system that will be beneficial for any organization looking to infuse their current performance management process with more meaning and value. MAY, 2013
T
he primary components of the performance review process that everyone should agree upon are:
1. Defining and clarifying job duties.
The manager and the employee should each have a clear and consistent understanding of the employee’s job duties long before the performance review is written and presented.
2. Summarizing past performance.
Constructive review and/or measurement of past performance should be designed to ensure that improved future performance (or continued high level performance) is the primary goal.
3. Providing a blueprint for future performance. Managers should make a planned
and concerted effort to help the employee understand how success will be measured.
Understand Your Organization Consider your company’s unique culture. Is your company comprised largely of managers and professionals, with a lesser percentage of office and adminiscontinued on page 32
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Benefits & HR Strategies continued from page 31
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trative staff? Or, is your field workforce the bulk of your organization? Is tenure (long or short) a consideration? Sample goals and considerations would be: Goal: Managers and employees should talk about jobs and job performance regularly (not just once a year at review time). Consideration: For your company, should the review process and forms be designed for this to happen quarterly, semi-annually, in addition to annually? Individually and as teams? Goal: Managers and employees should have opportunities and methods of providing constructive feedback to one another. Consideration: Is your environment conducive to enabling employees to do self-evaluations or upward reviews (discussed in more detail below)? Goal: Help employees grow professionally in their role with your company. Consideration: Make sure your company’s overall goals are clearly articulated at the top-level of the organization and work with managers to derive employee goals from there. While assessing the performance review process in the context of your organization, be sure to gather input and genuine support from the managers who perform the actual reviews. Do managers understand that a well-executed performance review process is integral to building a roadmap by which subordinates can contribute to achieving the agreed upon individual and/or team objectives (ultimately affecting perhaps the managers' own performance reviews)? If your company uses self-evaluations as part of the review process, make sure that employees are aware ahead of time how their self-evaluations are incorporated into the review. Self-evaluations add a level of accountability and engagement to the employee’s side of the review that is extremely valuable and important. Performance reviews should really be a conversation, not just a report card. Some organizations go so far as to conduct upward reviews. In an upward review, employees are given the opportunity to provide constructive feedback about their managers. The upward review can play a vital role in ensuring managers and employees are both taking the necessary steps to have as productive a relationship as possible.
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Determine when a revised system needs to be in place in time for the next review period. It is important that both employees and supervisors know that a change is in the works with the goal toward a more continued on page 33
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MAY, 2013
Benefits & HR Strategies continued from page 32
3. Invite, receive, and use employee input as part of planning and writing a performance review 4. Discuss performance feedback with employees in an objective, job-related manner
effective and meaningful review process at your company. They should be well-informed of the objectives of an effective new system. Consider soliciting employee and management feedback regarding the design of the new system to broaden investment in the revitalized process. If there are key managers that are perceived as potential “champions” of performance management, enlist their support to promote the value of the new review system.
Managers and Employees are Both Stakeholders Training and awareness are an integral part of the successful implementation of a new system. Most organizations focus on training managers to understand the new system, assuming incorrectly that employees are passive participants in the process. This may be one of the biggest mistakes made in performance management. Employees should be given the opportunity to learn about the system and their role in it or they cannot be effective participants. Here are some guidelines for getting both sides involved productively:
Manager Training A manager training program should be designed to ensure that supervisors will be able to do the following: 1. Explain and discuss the primary reasons for conducting performance reviews 2. Work with employees to develop performance goals that are specific, measurable, and realistic
Employee Training As a result of attending and participating in an awareness session, employees should be able to do the following: 1. Participate in a discussion with their manager to provide input on their work for the performance period 2. Plan to participate in a two-way discussion with their manager about feedback on their performance 3. Participate in establishment and understanding of performance goals and expectations for the future 4. Provide objective feedback on their experience with your company
Performance Reviews & Salary As stated above, most companies conduct performance reviews as part of the process toward granting annual pay increases at a specific time each year. Ideally, the performance management system would primarily focus on career development and advancement, with annual pay increases a secondary factor. One of the most important issues is for both the manager and employee to understand how the system works. Despite all the theory about separating performance reviews and pay, most employees come to the review thinking that the two are linked. The manager must be able to explain the link or the lack thereof in clear, understandable terms.
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The form itself, as a performance review tool, is less important than the accompanying instructions and training. There are several approaches to developing the performance appraisal form. If you currently use a format that works somewhat effectively, tweaking the system to create a more interactive process may be all you need. Ultimately, you must design a system that will work for you. One design that is often used is the Balanced Scorecard. It was originated by Dr. Robert Kaplan continued on page 34
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33
Benefits & HR Strategies continued from page 33
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and Dr. David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. The Balanced Scorecard approach is designed to achieve the following: • Increase focus on strategy and results • Improve organizational performance by measuring what matters • Align organization strategy with the work people do on a day-to-day basis • Focus on the drivers of future performance • Improve communication of the organization’s mission and strategy • Prioritize projects/initiatives
There is No Perfect System The goal is to provide both managers and employees with a more interactive method within which to measure and develop employee performance, all with the expectation of making your organization more efficient, profitable and successful. n
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MAY, 2013
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21 B Street Burlington, MA 01803 Rep: Phil Peterson Tel: (617) 715-1839 Fax: (617) 715-6539 E-Mail: ppeterson@ebiconsulting.com Website: www.ebiconsulting.com ASSOCIATE Referred by: Bob Lee J. F. White Contracting Co.
123 Ocean State Drive N. Kingstown, RI 02852 Rep: John Santoro/Lou Boschetti Tel: (401) 295-0996 Fax: (401) 295-4110 E-Mail: johnsantoro@santorooil.com lou.boschetti@oceanstateoil.com Website: www.oceanstateoil.com ASSOCIATE
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60 Catamore Blvd. East Providence, RI 02914 Rep: Peter Jacavone, III 5 Cushing Drive Tel: (401) 435-3600 Wrentham, MA 02093 Fax: (401) 431-9302 Rep: Brian Coulter E-Mail: pjacavone@starshep.com Tel: (508) 384-0011 Website: Fax: (508) 384-8667 www.starkweathershepley.com E-Mail: brianc@norfolkpower.com Website: www.norfolkpower.com ASSOCIATE Referred by: Jim Reger ASSOCIATE Reger Consultation
We are proud to have created the new website for UCANE As a way of saying thank you we are offering a special UCANE members discount on new Website & Social Media projects. Walter Osterman, President direct line 561.301.3150 www.SocialMavens.com
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har ness o f t h e i n t er n e ing the force t
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MAY, 2013
Senator Katherine Clark (D-Melrose)
Q: A:
Please give our readers some insight into your background and how you got involved in politics.
My professional background is as a prosecutor, General Counsel for the Massachusetts Office of Child Care Services, and Chief of the Policy Division for the Massachusetts Attorney General. My first foray into elected politics was the Melrose School Committee in 2001. As the mother of small children, I wanted to help lead our school district. My time on the School Committee provided insight into the many challenges that our cities and towns face as they seek to provide vital services with constrained resources. I have brought that perspective to the legislature, where I was first elected in 2008 as a member of the Massachusetts House of Representatives. I have had the privilege of serving in the State Senate since 2010, currently representing Malden, Melrose, Reading, Stoneham, Wakefield, and portions of Winchester. I currently serve as the Senate Chair of the Joint Committee on the Judiciary, Chair of the Steering and Policy Committee, Vice Chair of the Committee on Mental Health and Substance Abuse and the Committee on Post Audit & Oversight, and as a member of the Committees on Public Health and Public Safety & Homeland Security. As a legislator, my top priorities are local aid and funding for our schools, and critical investments in early education, transportation and infrastructure.
Q:
As Senator of a district with towns that have had recent challenges with water infrastructure, you are aware that access to clean drinking water and proper management of wastewater is critical, but that the debt burden on municipalities interferes with their ability to make needed improvements to water infrastructure. In light of the Senate President’s elevation of water infrastructure as a priority this session, please discuss your thoughts relative to the importance of maintaining water and wastewater infrastructure. How do you anticipate the legislature will work to address these issues?
MAY, 2013
A:
Investing in our drinking water, wastewater, and storm water infrastructure is critical, not only for the health and wellness of residents, but for economic growth and environmental sustainability as well. All the cities and towns in my district are MWRA communities, and we must continually improve and upgrade our infrastructure. We have seen the consequences of not making those investments. Much like the Commonwealth’s transportation system, when it comes to our water infrastructure, we are confronting increasing demand on an aging system, as well as a historic lack of investment and delayed maintenance. In 2009, the legislature established the Water Infrastructure Finance Commission, which issued its final report in 2012, and estimated a growing gap of up to $21.4 billion over the next 20 years between current funding for the state’s water infrastructure and wastewater systems and the amount of funding actually needed. I commend the Senate President’s leadership in making water and sewer infrastructure investment a priority during this session, and I look forward to working with her to move continued on page 39
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MAY, 2013
Interview continued from page 37 it forward. In addition, this session, I have co-sponsored An Act to mitigate water resource impacts (S945), which would allow cities and towns and water and sewer districts to establish a Sustainable Water Resource Fund to mitigate the impacts of water withdrawals, sewering, stormwater runoff, or impairment of recharge of groundwater on the environment.
Q:
The State Revolving Loan Fund (SRF) is an important state program that provides financial assistance, in the form of 2% lowinterest loans, to communities for critical wastewater and drinking water infrastructure projects. Please discuss the importance of this program.
A:
Communities in my district served by the MWRA have certainly benefited from the Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs. Further, the Massachusetts State Revolving Fund (SRF), run by MassDEP and serving both wastewater districts and municipalities, provides a low-cost funding mechanism to assist cities and towns in complying with water quality requirements. The Deer Island Treatment Plant improvements are one example, as is the planned project at the Northern High Service (Revere/Malden Pipeline), which among other things will involve the eventual replacement of an undersized pipe in Malden with a larger pipe to eliminate severe service restrictions.
Q:
Massachusetts, along with the rest of the country, continues to face economic hardship. Please give your thoughts on how the state will continue to address these difficult financial times 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 water infrastructure.
A:
When I see new statistics – a change in the unemployment rate, for example, or budget statistics – those are not just numbers to me. Those represent real people and their families, in my district and across the state. I know those people, I know their kids, and I hear their stories. I get it. If I don’t, I’m not doing my job. The point is, the most important influence on the work that we do in the legislature is – and must be – our constituents and the communities we represent. While it is also clear that while the Massachusetts economy is coming back, we are not there yet. We still have more work to do, we still have too many folks out of work, including in construction and the trades, and too many families who are struggling. Cities and towns are on the front lines, and many are still recovering fiscally from the recession. They must balance investment in infrastructure improvements of all types with ensuring reasonable user rates and local tax levels for families who may still be struggling.
Q:
The Commonwealth Sewer Rate Relief Fund is an important program in the state budget. These funds help to alleviate sewer rates for municipalities throughout the Commonwealth. This program was once funded at $61 million, but in recent years the appropriation has been cut down to $500,000. Please discuss the importance of assisting communities by offsetting annual rate increases to water and sewer bills.
A:
The MWRA continues to manage significant debt burden, with nearly 60% of its annual operating costs going to debt service from major capital investments made over the years – like the Boston Harbor clean-up. We need to ensure that the MWRA, and all our cities and towns, have the flexibility both to responsibly manage debt and to make critical infrastructure improvements now. They must do so in a fiscally responsible way that takes into account the needs of rate-payers and the Commonwealth’s overall economic health. That is a tall order, but I believe it can be done. Programs like the Commonwealth Sewer Rate Relief Fund are one important part of that equation. n
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Mystic River Clean Water Campaign Launched By Beth MacBlane, MyRWA Outreach Coordinator
Mystic River Clean Water Campaign Launched By Beth MacBlane, MyRWA Outreach Coordinator
health and will help preserve an important recreational Let’s clean up the Mystic! Together Let’s clean up the Mystic! Together with the newly estabresource. At the end ofstaff theand day, what is needed is to with the newly established Clean Water Campaign lished Clean Water Campaign Committee, MyRWA Mystic River Watershed Associa volunteers embarked on a new initiative to enhance advocacy restore people’s confidence in a vital natural Committee, MyRWA staff and volunteers embarked WATERresource QUALITY POLICY STATEM to improve water quality conditions in January 2013. Buildthat we all share and have in common and which proon a new initiative to enhance advocacy to improve ing upon the many years of available water quality data, the ordercommunities.” to ensure that water quality in the My significant benefit and value toInour Campaign seeks vides to raise the profile of local water quality water quality conditions in January 2013. Building Watershed is restored to a healthy condition a conditions through newthe communication and educational maFor first wave of the campaign we are water focusing that this clean is protected in the future upon the many years of available water quality data, terials, increased media exposure, and by hosting educational River Watershed Association our efforts on the Alewife Brook sub-watershed. The adopts the follow events. While some of this work will be achieved through existthe Campaign seeks to raise the profile of local water for immediate implementation. ing MyRWA programs, new efforts are underway to area developwhereobjectives Alewife represents an we can see conquality conditions through new communication and resident advocacy initiatives and enhance collaboration with are determined that: siderable improvements. Alewife We Brook impairments educational materials, increased media exposure, cities, towns and community groups. To attain the high goals 1. Human sewage will no longer be dischar include consistently poor water quality, habitat deterioset out inofthe Mystic River Watershed Association’s Water and by hosting educational events. While some Mystic River, or its watershed lakes, tribu Quality Policy Statement to the right), pressures, concerted and flooding ration,(detailed development issues, sedistreams. this work will be achieved through existing MyRWA coordinated action from residents, municipalities, regulators 2. All stormwater discharges to the river sh ment and flow concerns and Combined Sewer Overand resilegislators is required. It is important to engage all key programs, new efforts are underway to develop quality standards. flows appropriate (CSOs).clean-up Meanwhile, it is also an area with good stakeholders to develop and restoration 3. Historic industrial contamination of the r dent advocacy initiatives and enhance collaboration plans and to secure funding to implement work underway – these the efforts. City of Cambridge and MWRA ments and on adjacent brownfield parce “This new resolution,” stated EkOngKar Singh Khalsa, with cities, towns and community groups. To attain thoroughly evaluated and addressed thro are undertaking considerable renovations to the sewer MyRWA’s Executive Director, “underscores our commitment to ate remedial measures to protect public the high goals set out in the Mystic River Watershed working closely with cities andthere towns and regionalcommunity authorisystem, arewith active groups advocatensure safe recreational use. Association’s Water Quality Policy Statement, conties on this issueing and to up our outreach toconcerns, watershed forstep environmental and a new pedestrianresidents to achieve the shared goal of a healthy Mystic River. certed and coordinated action from residents, mupath isreceived beinga built byquality MA Dept. of Conservation The Mystic River bike has consistently “D” water nicipalities, regulators and legislators is required. ratingIt byis the US EPA regional office.For This grade to everyone cares andBoston Recreation. moreis unacceptable information pleasewhogo toabout clean water. ners and concerned residents we will work hard to resolve this issue and to bring environmental conditions in the important to engage all key stakeholders to develop www.mysticriver.org. with the cleanest urban rivers in Massachusetts and the world. Although it will take time, this is entirely possible appropriate clean-up and restoration plans and se- benefit to public health and will help preserve an important recreational resource. At the end of the an to enormous Reprinted with permission from the Mystic River needed is to restore people’s confidence in a vital natural resource that we all share and have in common and wh cure funding to implement these efforts. Watershed Association. n “This new resolution,” stated EkOngKar Singh Khalsa, MyRWA’s Executive Director, “underscores our commitment to working closely with cities and towns and with regional authorities on this issue and to step up our outreach to watershed residents to achieve the shared goal of a healthy Mystic River. The Mystic River has consistently received a “D” water quality rating by the US EPA Boston regional office. This grade is unacceptable to everyone who cares about clean water. With our partners and concerned residents we will work hard to resolve this issue and to bring environmental conditions in the Mystic in line with the cleanest urban rivers in Massachusetts and the world. Although it will take time, this is entirely possible and will bring an enormous benefit to public
MAY, 2013
significant benefit and value to our communities.” For the first wave of the campaign we are focusing our efforts on the Alewife Brook sub-watershed. The Alewife re area where we can see considerable improvements. Alewife Brook impairments include consistently poor water q deterioration, development pressures, flooding issues, sediment and flow concerns and Combined Sewer Overflow Meanwhile, it is also an area underway – the City of C MWRA are undertaking renovations to the sewe are active community g ing for environmental co new pedestrian-bike pa by MA Dept.of Conserva ation. To commence ou please join MyRWA, Frie Reservation, and Green the Saturday, April 20th DCR Park Serve Day cle wife Brook and Little Riv for additional education advocacy opportunities Get involved! Volunteer participate in this camp Beth at 781-316-3438 the Mystic River Clean W *This graph Committee on the first T is based on month at 7pm, Tufts Un bacterial counts.
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MAY, 2013
Environmental Viewpoint Robin L. Main, Esq.
Rhiannon Campbell, Esq.
Hinckley Allen Snyder, LLP
Stormwater Pollution Prevention Plan Requirements Note: Robin L. Main is a Partner in Hinckley, Allen & Snyder LLP’s litigation group and co-chair of the firm’s environmental practice group. Rhiannon A. Campbell is an Associate in Hinckley, Allen & Snyder LLP’s litigation and environmental practice groups.
Stormwater runoff, which is generally rain or snowmelt that does not permeate the soil, picks up pollutants and sediments as it travels across surfaces, ultimately depositing these materials in water bodies. Soil that is exposed by construction activities can be especially vulnerable to erosion by stormwater runoff. It is estimated that a construction site, even in a short period of time, can contribute more sediment to a stream than would be deposited naturally over several decades. Additionally, to the extent that spills or leaks of pollutants occur on construction sites, these impacts may be carried away by stormwater runoff. When these stormwater pollutants and sediments reach water bodies they can cloud water, smother aquatic habitats, impede navigation and cause other environmental harms.
R
ecognizing these impacts, the federal government seeks to mitigate them under the Clean Water Act (“CWA”). The CWA prohibits the discharge of any pollutants to United States waters unless that discharge is authorized by a National Pollutant Discharge Elimination System (“NPDES”) permit. Each state, or the Environmental Protection Agency (“EPA”) in the case of a state that does not have its own permitting program, issues a NPDES construction general permit which covers all construction related stormwater discharges in that state. If you are an operator of an individual construction site you must apply for coverage under this permit. To obtain coverage under the state’s NPDES permit you will need a Stormwater Pollution Prevention Plan (“SWPPP”).
MAY, 2013
An SWPPP must identify control measures used on site to minimize spills, leaks or other releases that may come into contact with stormwater runoff. Your plan should identify both structural controls, such as erosion control blankets and silt fences, and nonstructural controls including equipment maintenance and training procedures. At a minimum, an SWPPP should include the following: locations of any spill response plans, training plans, procedures for labeling containers that may be susceptible to spills or leaks, plans for barriers between material storage and work areas, procedures for material storage and handling, procedures for remedying spills and leaks, notification and reporting procedures for spills, and the continued on page 44
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Environmental Viewpoint continued from page 43 identification of the individuals responsible for ensuring that spill kits are available. The location of each control, plan or procedure must be provided. The SWPPP should also include project contact information, a description of the site and construction activity, a site map, maintenance and inspection procedures, an identification of any potential pollutant sources, and records of any inspections.
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The EPA provides, through its website, a full guide for the development of a SWPPP for your construction site. The EPA also provides a template for the creation of your SWPPP and sample SWPPPs. This information can be found at http:// cfpub.epa.gov/npdes /stormwater / swppp.cfm. Keep in mind that your state may have its own separate requirements for SWPPPs and you should carefully read your state’s construction general permit and follow its instructions. n
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The King is Dead; Long Live the King: The Connecticut Supreme Court Resurrects Stale Claims by the State Picture this scenario: You are a contractor, surety, or design professional. You completed a construction project for the State over a decade ago. The State accepted the project and raised no claims regarding your work. Surely you have no need to worry about the State's bringing a lawsuit for a construction or design defect, because any claims would be time-barred, right? Ordinarily, the answer would be a resounding yes – the statutes of limitations and repose would have long since expired.
H
owever, in Connecticut (and many other states), In 2008, over 12 years after the library was origiif the potential plaintiff is the State, the specter nally completed, the State commenced a lawsuit of a lawsuit may linger indefinitely. Recently, against the original contractors, sureties, and design in State v. Lombardo Bros. Mason Contractors, Inc., professionals. The defendants naturally argued that the Connecticut Supreme Court upheld the common the State’s claims were barred by the statutes of limilaw doctrine of Nullum Tempus Occurrit Regi (“no time tations and repose. The State’s original construction runs against the king”). Under Nullum Tempus, statmanager also asserted a contract-specific time-limiutes of limitations and othtation defense based on er time limitations do not its contract with the State. apply to federal or state trial court agreed, Under Nullum Tempus, statutes of limitations The governments, unless their and dismissed the State’s respective legislatures ex- and other time limitations do not apply to federal claims as time-barred. pressly state otherwise. or state governments, unless their respective However, on appeal, the Connecticut Supreme Lombardo’s history legislatures expressly state otherwise. Court reversed the trial can be traced back to court and held that under 1996, to the completion of the doctrine of Nullum a new library on the Hartford campus of the University of Connecticut School Tempus, the State was immune from application of the statutes of limitations or repose. of Law. Soon after taking occupancy of the newlyconstructed building, the State encountered water inGiven the widespread application of Nullum trusion issues in the library, which progressively worsTempus throughout the country, the Connecticut ened. The State’s subsequent investigation uncovered Court’s affirmation of that doctrine was somewhat several alleged defects in the library’s construction unsurprising. More troubling, however, was the and design. The State retained design professionals Court’s concurrent ruling that the Department of Public Works lacked authority to waive the protecand remediation contractors to design and perform continued on page 46 corrective work costing more than $15 million.
MAY, 2013
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Construction Law continued from page 45
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tion provisions in their contracts with the State. It might even call into question the enforceability of other contractual provisions in such contracts that could be construed as time limitations, such as requirements related to the proper timing for notice of claims and backcharges. In the wake of the Lombardo decision, contractors, and their sureties and insurers that do business with the State are at risk for potential liability for stale claims by the State that may have accrued years after expiration of the ordinary statutes of limitations and repose. Contractors must know and account for these risks before doing business with the State. Key to this goal is proper and adequate insurance coverage: Contractors should make sure they are sufficiently insured so that potential liability is covered for periods well beyond the ordinary limitation timeframe. Likewise, contractors should require their subcontractors and indemnitors to have similarly-protective levels (and periods) of coverage. Finally, industry groups can lobby their state’s lawmakers, since Lombardo clarifies that the only way to expunge or limit the doctrine of Nullum Tempus is by legislative action. (In several states, including New York and Massachusetts, the state legislatures have expressly made their statutes of limitation and repose applicable to the government.)
In the meantime, the State of Connecticut may rejoice in Lombardo’s exaltation of State sovereignty. The King may not live forever, but the kingdom’s right to sue, for now, appears to be eternal. n
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MAY, 2013
A
Tax-Exemption for Bonds Threatened by DC
their new tax liabilities, forcing states and s the Obama administration and Congress look for revenue to reduce localities to pay more to finance projects. the deficit and fund the federal budThis federal cost shift would lead to less get, proposals have surfaced from the infrastructure investment, fewer jobs, and president and some legislators to restrict greater burdens on citizens who would or strip cities and towns of their ability to then have to pay higher local taxes and issue tax-exempt municipal bonds. utility fees. Simply put, this is a terrible idea. This is why the MMA has joined the National League of Cities, the U.S. ConNo matter how it is packaged, limitference of Mayors, the National Govering or ending the tax exemption for internors Association, and more than 50 maGeoff Beckwith est on municipal bonds would impose a jor organizations to urge Congress and MMA Executive massive new cost on cities, towns, and Director the president to respect the principles of local taxpayers. Once fully implemented, fiscal federalism by maintaining the taxthese proposals could drive up the cost exempt status of municipal bonds and of vital local infrastructure projects in providing stability and predictability to state and local Massachusetts by as much as $525 million a year. governments and the investment community. The tax-exemption for municipal bonds has been in place for 100 years, as long as the federal income The need for infrastructure investment—and the tax. These instruments are the primary financing jobs that come with it—is acute. Tax-exempt municimechanism for state and local infrastructure projects. pal bonds finance roads and bridges, schools, police There are more than $3.7 trillion in outstanding taxstations, fire stations, libraries, town and city halls, exempt bonds, issued by 30,000 separate governsenior centers, parks, drinking water treatment famental units at the local, county, and state level. cilities, sewage treatment plants, and much more. Eliminating or limiting tax-exempt financing will drive Local governments save an average of 25% to up the cost of all of these infrastructure investments, 50% on interest costs by using tax-exempt municipal which will reduce the scope of projects and impose a bonds, compared to what communities would have to pay if they sold taxable bonds. That’s because invesmuch higher burden on local taxpayers. tors are willing to accept lower interest on tax-exempt So far, several legislative proposals have been bonds due to the tax benefit. offered to curtail or eliminate the federal tax exempProposals to end or undermine the use of taxtion for municipal bond interest. One proposal put exempt bonds would shatter a system that is a specforward in President Barack Obama’s budget would tacular success and would represent a money-grab impose a tax-benefit cap of 28% for certain taxpayers by the federal government that would harm cities, on many itemized deductions and exclusions, includtowns, and local taxpayers. ing tax-exempt interest. The effect would be a partial tax on interest that would otherwise be exempt from If the exemption is limited or eliminated, investors will demand higher interest payments to offset continued on page 50
MAY, 2013
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MMA continued from page 49 the income tax. In effect, the tax-exempt bond market would no longer be entirely tax-exempt. If this 28% benefit cap on tax-exempt interest had been in effect during the last decade, it would have cost states and localities an estimated $173 billion in added interest expenses for infrastructure projects, according to an analysis jointly published by the National League of Cities, the U.S. Conference of Mayors, and the National Association of Counties. For an investor in the 39.6% federal tax bracket, the tax benefit cap proposal would equate to an 11.6% tax on municipal bond interest income (the difference between the tax rate and the benefit cap). While it may appear that this tax would fall on high-bracket taxpayers, in effect, it would be borne almost exclusively by state and local governments in the form of higher interest rates on their borrowing. Market analysts have estimated that this proposed tax on municipal bond interest would raise state and local borrowing costs by up to 70 basis points (seven-tenths of a percentage point) or more. Because the tax would apply not only to new state and local borrowing but also to all outstanding bonds, investors would be taxed on investment
that they reasonably expected would be tax-exempt as long as they are outstanding, an unprecedented form of retroactive taxation. As a result, investors would face the new risk that Congress could tax interest on outstanding bonds even more in the future, a risk that would raise state and local borrowing costs even more and create unprecedented uncertainty for investors in the municipal securities market. Some have proposed an even more onerous full federal income tax on municipal bond interest. The Simpson-Bowles Commission, in its 2010 deficit-reduction recommendations, proposed full taxation for state and local interest for all newly issued bonds. If this proposal had been in place during the 2003– 2012 period, it would have cost governments an additional $495 billion in interest expenses. Partially or fully taxing the interest on municipal borrowing would have a direct effect on state and local budgets in the form of increased interest expenses. Taxing the interest on municipal borrowing for investors would have the same effect as taxing state and local governments directly, as these costs would be passed on from the bondholders to the bond issuers. With the current tax exemption, cities, towns, and continued on page 51
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MMA continued from page 50 states can issue bonds with interest payments that are 2 percentage points lower than on taxable bonds in normal market conditions. (The margin is likely about 80 basis points today in a suppressed interest environment, but that would end as the economy returns to typical conditions). The MMA estimates that each year, cities and towns in Massachusetts issue $3 billion in tax-exempt bonds and notes. Under current interest rate conditions, repealing the tax-exempt debt authority of cities and towns would add approximately 80 basis points to an issuance, which would translate into $225 million in additional costs to local taxpayers in Massachusetts over the life of a 20-year bond. Under typical or normal market conditions, repealing the tax-exempt debt authority of cities and towns would add as much as 2 full percentage points to an issuance, leading to approximately $525 million or more in additional costs to local taxpayers in Massachusetts over the life of a 20-year bond. At the end of 20 years, if tax-exempt financing is repealed, the annual burden on Massachusetts taxpayers would be $525 million, a massive cost-shift. Even a partial repeal, such as the president’s proposed 28% tax-benefit cap, would result in an annual burden on Massachusetts cities and towns of more than $200 million. Massachusetts is fortunate to have a Congressional delegation that is fighting for cities and towns. Sens. Elizabeth Warren and Mo Cowan have pledged their opposition to any attack on tax-exempt financing, and Congressman Richard Neal is the primary sponsor of a resolution in the House that calls attention to the importance of tax-exempt bonds. When Sen. Cowan steps down in June, it will be imperative for his replacement to immediately stand with local government leaders on this matter.
sweeping new transportation tax package, and is planning to ramp up infrastructure investments by billions of dollars over the next several years. We applaud our partners on Beacon Hill for this commitment and this bold leadership. But we need Washington to recognize the attack on tax-exempt financing for what it is – a money grab that would hit local taxpayers, stop infrastructure investment in its tracks, and harm our economy now and for years to come. Simply put, it’s a terrible idea. Written by MMA Executive Director Geoff Beckwith. n
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IN THIS ISSUE • From Bear Market to Bull Market • New In-Plan Conversions • Using the Work Opportunity Tax Credit
I
Smart Tax, Business & Planning Ideas from
Market to Bull Mar From Bear Market toFrom BullBear Market
f the proverbial visitor from Mars had headed our way four years ago, this traveler might have beamed up the news reports from Earth and decided to keep on going to a more promising destination. Why land on a world that apparently was coming to an end? Stock markets had crashed, major brokerage firms were endangered, and the entire financial system seemed to be in jeopardy. Today, that extraterrestrial traveler would be getting a very different message. Headlines announce that “Mutual Funds Are Breaking Records” and “S&P 500 Closes at Five-Year High.” Reports indicate that the average diversified U.S. stock fund is 10% higher than at the previous peak, reached in 2007. Does this mean that stocks are heading still higher? Or that every bear market will be succeeded by a more powerful bull run? Not necessarily. The future is unknown, and that’s certainly true when it comes to investing in stocks. However, reliable stock market records now go back about 85 years. Those decades have seen booms, busts, recessions, the Great Depression, wars, terror attacks, inflation, rising debt levels, natural disasters, and countless other crises. Yet, the U.S. stock market has continued to reward patient investors, despite this litany of setbacks. MAY, 2013
Are Breaking Record Closes at Five-Year H indicate that the aver stock fund is 10% hi previous peak, reach Does this mean th heading still higher? market will be succee powerful bull run? N future is unknown, a true when it comes t However, reliable records now go back Those decades have s recessions, the Great terror attacks, inflati natural disasters, and crises. Yet, the U.S. s continued to reward despite this litany of
Future IfAbsorbing the proverbial visitor from Shocks Mars had futur headed our way four years ago, this As mentioned, future investment returns are Absorbing unpreAs mentioned, futur traveler might have beamed up the dictable. That said, you can learn some lessons from are unpredictable. Th news reports from Earth and decided the recenttoand Basic, prudent steps learn insome lessons fr keepdistant on goingpast. to a more promising clude the following: distant past. Basic, p destination. Why land on a world that • Diversify. Holding different types assets can rethe following: apparently was coming to an end?of Stock Diversify. Holdin marketsportfolio had crashed, brokeragewith a duce overall risk.major An investor 50-50 assets can reduce firms endangered, and thestocks entire and bonds, portfolio, forwere example, between An investor with financial system seemed to be in jeopardy. would have fared better than a 100% stock investor example, between Today, that extraterrestrial traveler during the 2008–2009 crash. The diversified inveswould have fared would be getting a very different message. tor might have been more likely to stay in stocks, stock investor dur Headlines announce that “Mutual Funds and then benefitted from the subsequent rebound. Adding more asset classes may help to smooth out long-term volatility. continued on page 55
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Financial Management continued from page 53 • Invest regularly. Some financial advisors advocate a strategy of dollar cost averaging, in which you invest a fixed amount periodically, perhaps every month. If you save for retirement by investing in your company’s 401(k) plan, you probably are using this approach. With dollar cost averaging, you buy more fund shares or stock shares when prices are down, fewer shares when prices are up. Over time, this will lower your cost per share and can lead to higher profits. • Allocate and rebalance. You should have a plan for your investing, rather than relying on tips and rumors. Studies show that asset allocation is vital to a successful investment plan—you might aim to have certain portions of your portfolio in stocks, bonds, foreign securities, and perhaps in other asset classes as well.
• Use tax tactics. Selling securities that have lost value can produce capital losses, which offer tax benefits. Those losses can offset capital gains you take, whereas net losses up to $3,000 can be deducted on your tax return each year. Excess losses carry over to future years, where they’ll deliver the same tax benefits. Be sure not to reinvest in the security you’ve sold at a loss within 30 days. That’s considered a wash sale, which will deprive you of the tax benefit. continued on page 56
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From time to time, revisit your allocation and bring it back into line. If you want 60% exposure to U.S. stocks, for example, but a bull market brings that allocation up to 75%, you might sell some stocks and reinvest in other assets to get back to your desired position.
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Financial Management continued from page 55
New In-Plan Conversions
withdraw as much time when your tax as she’d like without rate would have been owingbetax. much higher. lthough traditional 401(k) plans have Arlene The catch, of come widespread, many employers are will pay a price for this future course, is that adding Roth 401(k)s to their employee income stream. converting a benefits. The relationship between these two She’ll owe income traditional 401(k) to types of plans is similar to the relationship tax on all the pretax a Roth 401(k) will between traditional and Roth IRAs: money she moves increase your income • Traditional 401(k)s are funded largely from her traditional and may push you with pretax dollars. Withdrawals are 401(k) to the Roth into a higher tax fully or mostly subject to income tax. 401(k). Assuming bracket in the year of • Roth 401(k)s are funded with after-tax Arlene’s traditional the conversion. dollars. Withdrawals are completely 401(k) is all pretax, Example 2: tax-free after you have had the account she’ll add $80,000 SupposeorArlene sored Roth accounts if you participate in 403(b) Baxter is single and for 5 years and reach age 591⁄2. to her taxable457(b) plans. Moreover, the federal government’s Thrift Savings Plan for federal maytaxable decideincome to per-this year, income for 2013, if she executes a fullemployees expects her New Opportunity mityear. in-plan conversions to itsafter Rothdeductions, version. to be around $75,000. conversion this Under the new tax law (see the April 2013 Financial In 2013, such income puts The tax code has allowed such conversions sinceArlene in Management article), you can convert your traditional but only for people the eligible for distributions. Balancing2010, the brackets 25% federal tax bracket, which 401(k) balance to a Roth 401(k). You can do so at anymostThat meantyou conversions generally were available Perhaps important, should goes up to $87,850 of taxable income. time, as long as your employer offers a Roth 401(k) when arate participant left the company, reached compare youronly present tax to your If Arlene implements a full $80,000 1⁄2 and the plan documents permit such conversions. The 59 , became disabled, died, or when the plan termiestimated future tax rate. Ideally, you’ll conversion, she’ll move into the 28% same rules apply for conversions to employer sponcontinued on page 57 pay tax now at a relatively low tax rate, bracket for the year and owe the higher then take tax-free withdrawals at a rate on most of her conversion.
A
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Using the Work Opportunity Tax Cre WorCester, Ma Among the business related provisions of the American Taxpayer Relief Act of 2013, the work opportunity tax credit (WOTC) was extended retroactively, for 2012, and also through 2013. Under the WOTC, employers can receive federal tax credits for hiring and retaining workers from specific groups of individuals that have been designated as facing significant barriers to employment.
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at least 120 hours, you can WoBurn, Ma Cranston, ri of 25% of the claim a tax credit (781)376-9636 (401)461-8020 individual’s first year wages. at least 400 hours, you can claim a tax credit of 40% of the individual’s first year wages. Generally, the maximum tax credit is $2,400. That ceiling applies if you hire food stamp recipients, certain residents of a federally designated Enterprise Community, Renewal Community, Rural Renewal County or Taking credit Empowerment Zone, individuals For all your construction supply needs If your company hires a worker in certain vocational rehab l Forming & Shoring l Soil Stabilization covered by the WOTC, the tax programs, ex-felons, or recipients l Rebar l Slope Protection & credit Erosion youControl can claim will depend on of Supplemental Security Income l Road & Bridge l Gabions the target group of the individual, benefits. If you hire a qualified l Concrete Repair & Restoration l Pavement Maintenance the amount you pay him or her for summer youth employee (i.e., the first year of employment, and a 16 or 17-year-old who lives www.ahharris.com the number of hours that individual in an Empowerment Zone, an worked. Here are the basic rules. If Enterprise Community, or a an employee works Renewal Community) to work for 56
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Financial Management continued from page 56 nated without a similar substitute in place. The new tax law permits current participants to convert without having to meet any of those requirements. Example 1: Arlene Baxter, age 32, works for ABC Corp., where she participates in a traditional 401(k) plan. ABC also offers a Roth 401(k); in-plan conversions are allowed. Arlene, who has $80,000 in her 401(k), can convert any or all of that $80,000 from her traditional 401(k) to a Roth 401(k). As mentioned, Arlene creates an opportunity to receive tax-free cash flow in the future when she moves money into the Roth version. Once she reaches 591⁄2, Arlene will be beyond the 5-year mark so she can withdraw as much as she’d like without owing tax. Arlene will pay a price for this future income stream. She’ll owe income tax on all the pretax money she moves from her traditional 401(k) to the Roth 401(k). Assuming Arlene’s traditional 401(k) is all pretax, she’ll add $80,000 to her taxable income for 2013, if she executes a full conversion this year.
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Balancing the Brackets Perhaps most important, you should compare your present tax rate to your estimated future tax rate. Ideally, you’ll pay tax now at a relatively low tax rate, then take tax-free withdrawals at a time when your tax rate would have been much higher. The catch, of course, is that converting a traditional 401(k) to a Roth 401(k) will increase your income and may push you into a higher tax bracket in the year of the conversion. Example 2: Suppose Arlene Baxter is single and expects her taxable income this year, after deductions, to be around $75,000. In 2013, such income puts Arlene in the 25% federal tax bracket, which goes up to $87,850 of taxable income. If Arlene implements a full $80,000 conversion, she’ll move into the 28% bracket for the year and owe the higher rate on most of her conversion. Arlene may not want to pay that much in tax, considering she has no idea of what her income or the tax rates will be when she’s age 591⁄2. Therefore, Arlene decides to convert only $10,000 of her traditional 401(k) to a Roth 401(k) in 2013. She will stay in the 25% bracket, so the conversion will increase her tax bill by only $2,500 for the year: 25% of $10,000. Arlene is confident that she will be able to pay that tax without having to borrow from her 401(k) or tap her IRA. You may decide that taking a series of partial conversions each year is a prudent way to build a tax-free retirement fund. However, the rules on Roth 401(k) plans are complex. For instance, such conversions are irrevocable, so they lack the flexibility of a Roth IRA conversion, which can be reversed. continued on page 58
MAY, 2013
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Financial Management continued from page 57
A
Using the Work Opportunity Tax Credit
mong the business related provisions of the American Taxpayer Relief Act of 2013, the work opportunity tax credit (WOTC) was extended retroactively, for 2012, and also through 2013. Under the WOTC, employers can receive federal tax credits for hiring and retaining workers from specific groups of individuals that have been designated as facing significant barriers to employment.
Taking Credit If your company hires a worker covered by the WOTC, the tax credit you can claim will depend on the target group of the individual, the amount you pay him or her for the first year of employment, and the number of hours that individual worked. Here are the basic rules. If an employee works • at least 120 hours, you can claim a tax credit of 25% of the individual’s first year wages. • at least 400 hours, you can claim a tax credit of 40% of the individual’s first year wages. Generally, the maximum tax credit is $2,400. That ceiling applies if you hire food stamp recipients, certain residents of a federally designated Enterprise Community, Renewal Community, Rural Renewal County or Empowerment Zone, individuals in certain vocational rehab programs, ex-felons, or recipients of Supplemental Security Income benefits. If you hire a qualified summer youth employee (i.e., a 16 or 17-year-old who lives in an Empowerment Zone, an Enterprise Community, or a Renewal Community) to work for your company between May 1 and September 15, the maximum tax credit is $1,200. As explained in the following paragraphs, two other categories of employees have higher maximum WOTC credits.
Hiring Veterans You may be able to claim the WOTC if your company hires a veteran who served on active duty (not including training) in the U.S. Armed Forces for more than 180 days or has been discharged or released from active duty because of a service related disability. That person must not have been on active duty (not including training) for more than 90 days within the 60-day period before being hired. To get the tax credit, your company must hire a veteran who meets certain other criteria, such as be58
ing a member of a family receiving food stamps, having a service related disability, or having a lengthy period of unemployment. The maximum WOTC is $2,400 for hiring a qualified veteran unemployed for at least 4 weeks but less than 6 months during the 1-year period ending on the hiring date. The maximum credit is increased to $5,600 for hiring a qualified veteran unemployed for at least 6 months or more during the 1-year period ending on the hiring date. For hiring a veteran who has been on food stamps for at least a 3-month period ending during the 12-month period ending on the hiring date, the maximum credit is $2,400. Special rules apply to veterans entitled to compensation for a service related disability. If such a veteran is hired by your company within 1 year of leaving the service, your company can receive a tax credit up to $4,800. If such a veteran was unemployed for at least 6 months during the 1-year period ending on the date of hiring, you can receive a credit up to $9,600. continued on page 59
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Financial Management continued from page 58 Veteran Target Group
Maximum Tax Credit
Receives food stamps
$2,400
Entitled to compensation for serviceconnected disability Hired one year from leaving service
$4,800
Unemployed at least 6 months
$9,600
Unemployed At least 4 weeks
$2,400
At least 6 months
$5,600
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Source: U.S. Department Of Labor Hiring Members of Needy Families Temporary Assistance to Needy Families (TANF) is a federal program. If you hire a short-term TANF recipient—any member of a family that received TANF benefits for 9 of the 18 months before being hired— the maximum WOTC is $2,400. Your company also can hire a long-term TANF recipient. That’s someone from a family meeting any of the following conditions: • The family received TANF benefits during the 18 month period ending on the hiring date. • The family received TANF benefits for at least 18 months after August 5, 1997. The employee’s hiring date must be no more than 2 years after the earliest 18-month period. • The family stopped being eligible for TANF payments during the past two years because a federal or state law limited the time those payments could be made. If your company hires an employee from the longterm TANF group, it can take the WOTC over two years. • If the individual works at least 120 hours in the first year, the employer may claim a tax credit equal to 40% of first-year wages. • If the individual works at least 400 hours in the second year, the employer may claim a tax credit equal to 50% of second-year wages. Companies that hire long-term TANF recipients can take a WOTC up to a total of $9,000, over those two years. To apply for the WOTC, your company must fill out and submit several IRS and Labor Dept. forms. Reprinted from the CPA Client Bulletin. n
MAY, 2013
24 Ray Avenue 24 Ray Avenue • Burlington, MA 01803 Burlington, MA 01803 24 Ray• Avenue Tel: 781.273.3434 Fax: 781.273.3430 Phone 781-273-3434 Burlington, MA 01803 www.geodcorp.com Fax: 781-273-3430 Phone 781-273-3434 Fax: 781-273-3430
SAND & STONE CORP. 192 Plain St. North Attleboro, MA 02760 (508) 699-2911 www.borocorp.com
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E.H. Perkins Construction, Inc. & Subsidiaries P.O. Box 301, Wayland, MA 01778 (508) 358-6161 • (781) 890-6505
-PLANT LOCATIONSQUINN-PERKINS S & G CO. Burlington (781) 272-0200 PANDOLF-PERKINS CO. Sterling (978) 422-8812 • (800) 339-3389 KANE-PERKINS CO. Hudson (978) 562-3436 • (800) 287-3436 GRAVEL • SAND • STONE FILL AND LOAM BITUMINOUS CONCRETE (PAVING) READY-MIX CONCRETE PRECAST CONCRETE PRODUCTS
E 60
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Advertisers’ Index ATS Equipment, Inc. ...........................................................14 Adler Tank Rentals ................................................................8 Arruda Trenchless Construction..........................................51 Boro Sand & Stone Corp......................................................59 Dennis K. Burke, Inc............................................................34 Concrete Systems, Inc..........................................................22 Dagle Electrical Construction, Corp................................... 24 Darmody, Merlino & Co., LLP............................................51 DeSanctis Insurance Agency, Inc. .......................................18 Dig Safe System, Inc..............................................................9 The Driscoll Agency ............................................................28 EJ......................................................................................... 40 Eastern States Insurance Agency, Inc..................................25 T. L. Edwards, Inc................................................................39 Ferguson Waterworks.............................................................7 Ford Meter Box Co...............................................................32 Fringe Consulting.................................................................32 Genalco, Inc..........................................................................33 Geod Consulting, Inc............................................................59 L. Guerini Group, Inc...........................................................58 HD Supply Waterworks..........................................................2 A. H. Harris & Sons, Inc. ....................................................56 Hinckley Allen Snyder, LLP................................................10 P. J. Keating Company..........................................................20 P. A. Landers, Inc.................................................................13 Lawrence-Lynch Corp..........................................................50 Liddell Brothers Inc..............................................................12 Lorusso Corp........................................................................57 Lorusso Heavy Equipment, LLC.........................................48 Mabey, Inc........................................................................... 44 Mass Broken Stone Company...............................................55 Milton CAT...........................................................................26 Our Outhouses, Inc...............................................................57 Palmer Paving Corporation..................................................54 E. H. Perkins Construction Co., Inc.................................... 60 Podgurski Corp....................................................................54 E. J. Prescott, Inc..............................................Ins. Front Cvr. Rain For Rent-New England.................................................38 Read Custom Soils .................................................................9 Rodman Ford........................................................................30 Rogers & Gray Insurance Agency, Inc.................................16 Schmidt Equipment, Inc.......................................... Back Cvr. The Scituate Companies................................... Ins. Back Cvr. Shea Concrete Products........................................................36 Smith Print............................................................................54 Social Mavens.......................................................................35 Sunbelt Rentals Pump& Power Services................................4 Systems Support Corporation.............................................. 46 Taylor Oil Company.............................................................55 Ti-SALES, Inc. ....................................................................29 Albert J. Tonry & Co., Inc....................................................34 Travelers............................................................................... 44 Tri-Products, LLC............................................................... 46 United Concrete Products, Inc. ............................................11 United Rentals Trench Safety...............................................52 C. N. Wood Co., Inc. ............................................................42 Woodco Machinery, Inc.........................................................6
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MAY, 2013
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