Construction Outlook April 2013

• MWRAFY13-FY14Upcoming&OngoingProjects• BWSC2013-2015CapitalImprovementProgram• TacklingtheWaterInfrastructureFundingGap

APRIL, 2013

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

MassDEP, MWRA & BWSC Agency Heads Forecast Sustained Level of Underground

Water and Sewer Projects

For the genuine article, always insist on Team EJP.

THEEXPERTS

EJP

RESCOTT.COM • 1-800-

EJP

-24

HR

It’s easy to look good standing still. But true performance can’t be faked.

None of our imitators have been able to match TEAM EJP’s commitment to service 24/7/365. No one else has made the investment in the technology,

inventory and infrastructure needed to serve today’s market. And no

one has assembled a team with more integrity and expertise than TEAM EJP.

Accept no substitute!

1-800-EJP-24HR

www.ejprescott.com

If you talk the talk, you damn well better be

ready to ride the ride.

WATER, SEWER, DRAIN & STORMWATER SOLUTIONS

IN THIS ISSUE

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: [email protected]; 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.

Editor: Anne Klayman, Associate Editor: Suzanne Savage, Graphic Designer: Sherri Klayman Construction Outlook Chairman: Al MorteoEditorial Board: Al Morteo, Tony Borrelli, John Our and Paul Scenna

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 1

5 President’s Message: Massachusetts Water Infrastructure Finance Commission’s Blueprint to Address

Water Needs

7 Legislative Update:• House and Senate Leaders Announce Transportation Financing Plan• NEWEA Hosts Legislative Luncheon to Discuss Water Infrastructure Needs;

Commissioner Kimmell Provides Key Insights• Patrick Administration Signals Commitment to Service-Disabled Veteran-Owned

Small Businesses Through Executive Order• Mayor Menino Decides Against Run for Re-Election; Potential Successors Begin

to Assess Candidacies for Mayor of Boston

14 UCANE’s March Dinner Meeting: Agency Heads Forcast Sustained Level of Underground Water and Sewer Projects

19 MWRA FY13-FY15 Upcoming Construction Awards

25 MWRA FY13 Ongoing Capital Improvement Projects

28 BWSC 2013-2015 Executive Summary of Capital Improvement Program and Upcoming Projects

37 Tackling the Water Infrastructure Funding Gap: Initiatives Currently Before the Massachusetts Legislature

44 UCANE’s 2nd Annual Trade Show...Another Huge Success!

46 Save the Date...UCANE’s 34th Annual Golf Classic

47 The Importance of Business Succession Planning

49 Environmental Viewpoint: Voluntary Disclosure and the EPA’s Small Business Compliance Policy

51 LLS of Massachusetts 4th Annual “Gala for a Cure”

53 Financial Management:• Reducing Uncertainty, Increasing Complexity• Restoring a Higher Tax Bracket• Lower Incomes, Higher Taxes• Estate and Gift Taxes Have Been Clarified• Breaks for Business Owners• AMT Relief, Child Tax Credit, and More

APRIL, 2013

OFFICERSPresident

AL MORTEOFED. CORP.

President ElectTONY BORRELLI

Celco Construction Corp.TreasurerJOHN OUR

Robert B. Our Co., Inc.Secretary

PAUL SCENNAAlbanese D&S, Inc.

BOARD OF DIRECTORSMARCELLA ALBANESE

Albanese Bros., Inc.

JEFF BARDELLDaniel O’Connell’s Sons, Inc.

VINCENT BARLETTABarletta Heavy Division

MICHAEL BISZKO, IIIBiszko Contracting Corp.

STEVEN COMOLETTIP. Caliacco Corp.

MAUREEN DAGLEDagle Electrical Const., Corp.

ADAM DeSANCTISDeSanctis Ins. Agency, Inc.

THOMAS DESCOTEAUXR. H. White Const. Co., Inc.

JERRY GAGLIARDUCCIGagliarducci Construction, Inc.

MARCO GIOIOSOP. Gioioso & Sons, Inc.

BILL IRWINC.J.P. & Sons Const. Co., Inc.

PHIL JASSETHonorary Board Member

BILL KEAVENEYA. R. Belli, Inc.

ROBERT LEEJ. F. White Contracting Co.

RYAN McCOURTMcCourt Construction Co.

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

LOUIS SCHOOLCRAFTTi-SALES, Inc.

ANNE KLAYMANExecutive Director

Years of Excellence1954-2013

Width >> 78”

Operating Weight >> 11,217 lbs.

Net Power >> 40.2 hp

Digging Depth >> 10’ 9”

MONTHLYPAYMENT

$29010% DOWN

Based on a 60 month term and 500 hours of annual usage.

MONTHLYPAYMENT

$72610% DOWN


SPEAK WITH YOUR FIELD SALES REPRESENTATIVETODAY, OR CALL THE INSIDE SALES TEAM AT (866) 386-9916. THE REPRESENTATIVE WHO COVERS YOUR AREA IS READY TO HELP YOU.

Operating Weight >> 12,412 lbs

Net Power >> 70 hp

Max Dump Height >> 7’ 10”

Universal Skid Steer Style Coupler

This versatile machineprovides features and

functions previously found only on much larger wheel loaders such as locking differentials, tractioncontrol, strong breakout force, fast cycle times and excellent visibility and reach.

Big performance in a small package.CAT 906H COMPACT WHEEL LOADER

MONTHLYPAYMENT

$98210% DOWN


Here’s the deal .

There’s almost no limit to what your machine can do for you,as long as it has the right work tool.

Plus, get a Powertrain and Hydraulics Equipment Protection Plan (EPP) 24 months/2,000 hours.

$750 OFF any work tool when you open a CAT commercial account.

www.miltoncat.com

++

ADD A WORK TOOL FOR THE 906H: ADD A HAMMERFOR THE 300.9D:

Width >> 2’ 4”

Operating Weight >> 2,170 lbs.

Net Power >> 18 hp

Digging Depth >> 5’ 8”

The 300.9 features highdigging force and fast cycle times which provideoutstanding performance in tight, low and awkward orhard to reach spaces. Smooth ergonomic controls andmachine controllability make this excavator thebenchmark in its size class.

No job too small .CAT 300.9D MINI EXCAVATOR

Offer expires 5/31/13.

$37/mo $221/mo$62/mo

Better fuel economy, load-sensing hydraulics and in-cabhydraulic flow control to optimize work tool performanceare just a few of the features that put this mini excavatorin a class of its own.

Big performance in a small footprint.CAT 305CR MINI EXCAVATOR

$90/mo

ADD A HAMMERFOR THE 305CR: $252/mo

Forks Plows Brooms

MCheresthedealad.ucane2final.spread_Layout 1 3/29/13 10:12 AM Page 1

Branch Manager: Dick Madden 978-835-4580 (Cell) 125 Stergis Way Dedham, MA 02026 Outside Sales: Tel: 781-407-9133 Joe Bottini 508-808-0258 (Cell) FAX: 781-407-9134 Steve Cardinal 774-766-1762 (Cell)

Regional Manager: Dick Madden 978.835.4580 (Cell)

Operations Manager: Mike Niland

Outside Sales: Joe Bottini 508.808.0258 (Cell)Steve Cardinal 774.766.1792 (Cell)Paul Gunning 781.686.7103 (Cell)Joe Joubert 617.485.8341 (Cell)

125 Stergis WayDedham, MA 02026Tel: 781.407.9133Fax: 781.407.9134

OPENING SOON11 Esquire Rd.Billerica, MA

APRIL, 2013 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 5

With the onset of warmer weather and the start of a new construction season, we have been bombarded with the media frenzy surrounding the need to find funding sources for our ailing transportation infrastructure. It is a serious problem that will likely require increased rev-enue and additional reforms. However, while our mem-bership works every day to deliver high quality and safe projects, we know that another big question looms. How is the Commonwealth and particularly, how are the cities and towns of the Commonwealth going to address our drinking water and wastewater infrastructure needs?

While our work underground is not necessarily as visible as the trains, buses, or roads above ground, drinking water and wastewater infra-

structure is equally important. Our health, environment, and ability to create jobs depend on a functioning and robust water and wastewater infrastructure. Similar to the excellent work done by the Transportation Finance Commission on the Commonwealth’s transportation needs a number of years ago, the Massachusetts Wa-ter Infrastructure Finance Commission’s report last year laid out a blueprint for action on the Commonwealth’s water needs. Without at least $200 million annually in additional funding investments combined with various reform policies, the Commonwealth will not be able to properly maintain and upgrade our water and wastewa-ter infrastructure in the manner required.

Therefore, in an effort to promote the work of the Massachusetts Water Infrastructure Finance Com-mission, UCANE and many other groups have been spreading the message about the need to invest in our drinking water and wastewater infrastructure. Just like transportation finance reform, the success of our efforts relies on impacted users getting involved. Mu-

nicipalities, state agencies, elected officials, business-es, residents, environmental organizations, business organizations, and even contractors need to weigh in on this important issue. In this issue of Construction Outlook, we include an article on page 37 detailing some of the legislative matters that have been filed in response to the commission’s report. I encourage you to read this article for a general overview of the questions and possible solutions before our state leg-islature. It is our hope to provide additional information in subsequent issues to keep you informed about this important matter.

For our part, UCANE will continue its work to educate elected officials and agen-cy personnel about the need to invest in our drinking water and wastewater infra-structure today. Moreover, we will continue to work with others to ask how the Com-monwealth and its cities and towns intend to address our drinking water and waste-water infrastructure needs tomorrow. n

Massachusetts Water Infrastructure FinanceCommission’s Blueprint to Address Water Needs

Construction:• HeavyIndustrial• Commercial• Multi-UnitResidential• TenantFit-Out• DesignBuild• GroundUp• Renovation• PumpingStations

Transportation:• TrafficSignalSystems• Highway&StreetLightingSystems• IntelligentTransportationSystems• Parking&SnowMeltSystems• RailTransitInstallation

AlternativeEnergy:• WindTurbine• PhotoVoltaic• GreenTechnology

www.deccorp.com

WBE Certified

Dagle Electrical Construction, Corp.

P.O.Box760982•Melrose,MA02176-0006Phone:800.379.1459•Fax:781.937.7678•Email:[email protected]

Highest Level of Quality, Greatest Level of Skill

OtherServices:• Tel/Data• FiberOptic• FireAlarm• StandByPowerSystems• SportsLighting• MarinePowerInstallations• SpecialEventLighting&Power

Mark Molloy, Esq., Lynch Associates, Inc.


continued on page 9

House and Senate LeadersAnnounce Transportation

Financing Plan

Under a transportation-financing plan released by Speaker Bob DeLeo and Senate President Therese Murray in early April, the gas tax

would increase by 3 cents per gallon indexed begin-ning in 2015. An estimated $110 million would come from the 3 cent increase in the state's 21 cent gas tax starting in 2015, with future gas tax increases tied to inflation.

According to the State House News Service, the proposal would generate just over $500 million in annualized new revenues to support transportation, about a quarter of the new funding sought by Gover-nor Patrick for infrastructure and education and half of what Patrick proposed for transportation. House and Senate Democratic leaders also proposed gen-erating $165 million in new revenue from new taxes on cigars, cigarettes, and smokeless tobaccos, in-cluding a $1 per pack hike in the cigarette excise tax. Further, the proposal involves $161 million from a tax code change to apply the state's 6.25% sales tax to

computer system design services, and $83 million from changes to the utility classification and sales sourcing for tax reporting.

In documents provided by House and Senate leadership, the proposed financing plan would pro-vide "forward funding" for the regional transit authori-ties in 2014. In addition, the proposal would finally allow MassDOT to move all employees onto the op-erating budget by 2016 to stop paying for personnel with borrowed funds.

House and Senate leadership opted against adopting a large gas tax increase speculating that gas consumption, with higher fuel efficiency from ve-hicles, has declined and will continue to decline over the next five years. The House anticipates taking up its financing plan before it undertakes the fiscal year 2014 budget debate, which will occur towards the end of April. The Senate will then take up the financing plan shortly thereafter.

226 Nicks Rock RoadPlymouth, MA 02360

Scale House: 508-732-9148Asphalt Plant: 508-732-9140

Manufacturer and Installer of Bituminous Concrete Products

100 Wales Avenue-RearAvon, MA 02322

Office: 508-583-2029Plant: 508-587-6953

GENERAL CONTRACTOR

8 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” APRIL, 2013

Legislative Update continued from page 7

continued on page 11


NEWEA Hosts Legislative Luncheon to Discuss Water Infrastructure Needs;

Commissioner Kimmell Provides Key Insights

At the end of March, the New England Water Environment Association (NEWEA) held a leg-islative luncheon and briefing on water infra-

structure needs facing the Commonwealth. Many par-ticipants, of whom UCANE was included, listened to a wide array of speakers address different areas of the water infrastructure problem. Representative Carolyn Dykema, former Co-Chair of the Massachusetts Water Infrastructure Finance Commission (MWIFC), provid-ed an overview of the Commission’s report in addition to her recently filed legislation to fund the Common-wealth’s water infrastructure gap. Mayors from Ever-ett, Gloucester, and Gardner provided input as to both their municipalities’ water infrastructure strategies and issues facing municipal officials.

Commissioner of the Massachusetts Department of Environmental Protection, Kenneth Kimmell, ad-dressed the myriad of issues facing his agency. On primacy, the Commissioner noted that the United States Environmen-tal Protection Agency can over-see the Clean Water Act (CWA) or it can be delegated to the state (DEP). Massachusetts is one of the remaining states that have not accepted this delegation (46 other states manage the CWA via state DEP delegation). The Governor, in his budget appropriation, has pro-vided DEP with additional funds to begin to look at this process more closely.

With respect to the issue of Cape Cod nutrient pollution, Com-missioner Kimmell noted the prob-lem with nitrogen, erosion of eel grass, odors, etc. is of particular concern not only for the residents of the Cape, but also the tourism industry which is so important to the region, specifically, and Mas-sachusetts, generally. He further noted that the $3.5 million grant from the Massachusetts Water Pollution Abatement Trust going to the Cape Cod Commission will fund the design of a regional solu-

tion. He further noted that the cost of any regional wastewater management plan is going to be far less than the cost of town by town plans to address the pollution issues.

In looking at innovative technologies and the public/private partnerships, the Commissioner stated that the agency is looking at new ways in which the DEP can become more of a partner with municipali-ties. In particular, the DEP is trying to provide DEP regulatory relief so that they are encouraged to try new technologies without fearing the agency if those technologies do not work. He concluded his remarks by emphasizing that his agency is truly trying to work with municipalities in partnership as everyone begins to address what is the Commonwealth’s next looming problem after transportation financing – water infra-structure funding.

Tapping Sleeves & Gate Installed/CutLine StopsCutting Chilled Water Lines & Steam LinesPressure Testing & Disinfection of New MainsInstallation & Testing of Back Flow PreventorsLarge Diameter Hydraulic Pipe CuttingHydrant Installation & Repair

Waterworks SuppliesSanitary Sewer SuppliesStorm Sewer SuppliesSafety Equipment & ToolsMechanical Piping

24HourSales&ServiceServingallofNewEngland

Water - Sewer - Drain Suppliesat a Competitive Price “Our Products Are Some

of the Most TrustedNames in the Industry”

672UnionStreetRockland,MA02370

Tel:781-878-8098Fax:781-878-5298www.hoadleyandsons.com

Water Works Specialists

PARTS SALES SERVICE RENTALS

www.lhequip.comPO Box 857

160 Elm Street Walpole, MA 02081

Phone: 508-660-7600 Fax: 508-660-7614





Paul Miller, President and Kevin Ellman CFP®, CEO Wealth Preservation Solutions WEALTH

www.wpsllc.net

P R E S E R V A T I O N S O L U T I O N S

Wealth Preservation Solutions, LLC.257 E. Ridgewood Avenue, Suite 305Ridgewood, NJ 07450For more information contact Kevin Ellman 201.632.2022 or [email protected]

Securities and Investment Advisory Services o�ered through NFP Securities, Inc. (NFPSI), member FINRA/SIPC. Wealth Preservation Solutions, LLC is a member of PartnersFinancial, an a�liate of NFPSI. Wealth Preservation Solutions, LLC and NFPSI are not a�liated.

Helping families accumulate and preserve wealth

*

**ESTATE PLANNING • BUSINESS SUCCESSION • BENEFIT PLANNING • ASSET MANAGEMENT

Patrick Administration Signals Commitment to Service-Disabled Veteran-Owned Small

Businesses Through Executive Order

According to a recent press release, Governor Patrick has signed an Executive Order to help small businesses owned by disabled veter-

ans increase access to contracts for public projects in the areas of construction, design, and goods and services procurement.

The Executive Order directs the Executive Office of Administration and Finance (A&F) to define pro-gram requirements and guidelines. A&F will then im-plement a participation goal requirement for service-disabled veteran-owned small businesses to gain access to contracts for public projects in the areas of construction, design, and goods and services pro-curement. A&F will also establish a Service-Disabled Veteran-Owned Business Enterprise Program to oversee the inclusion of business enterprises owned and controlled by service-disabled veterans in all ar-eas of state procurement contracting.

The Executive Order stems from the passage of

“An Act Relative to Veterans’ Access Livelihood, Op-portunity, and Resources” (The VALOR Act), which Governor Patrick signed last year. The legislation was passed in an effort to provide greater assistance to help veteran-owned small businesses participate in public projects. It is thought that the Administra-tion’s implementation of the Executive Order will help create jobs and reduce veteran unemployment.

According to the Patrick-Murray Administration, there are 124 service-disabled veteran-owned businesses cer-tified by the U.S. Department of Veterans Affairs located in Massachusetts. More than 385,000 veterans currently live in Massachusetts, including over 42,000 men and women who have served in Iraq and Afghanistan since 9/11. The Patrick-Murray Administration has committed to ensure newly returning veterans, as well as Massachu-setts’ aging veteran population, continue to receive qual-ity health, education benefits, housing and employment services to honor their service.

TM

Concrete Systems, Inc.: Manholes & Catch Basins, Box Culverts,Special Box Structures, Containment Vaults, CON/SPAN Bridge

Systems, Rigid Bridge Systems Permanent & Temporary Barrier, T-WallRetaining Wall Systems, Uwall Universal Wall Systems EcoWall,

ARMOR CAST Aboveground Storage Tanks & ARMOR VAULT BelowGrade Storage Tank Systems and Custom Structures. CSI Shelter

Technologies: Precast Monolithic Structures for Power GeneratingFacilities, Meter or Pumping Stations, Hazmat Storage, Communications

Buildings and PCS Equipment Cabinets. Clampcrete ConstructionSystems: Anchored Precast Barrier for Roadway Structures. Tunnel Systems: Precision Segmental Tunnel Lining Rings.

Cleco Manufacturing: Precision Fabricated Forming Systems,Complete Plant Design, Complete Batch Plant Computer Automation,

Countercurrent Mixers & Concrete Delivery Systems.

TM

®

®®

®

TM CSICONCRETE SYSTEMS, INC.

9 Commercial Street, Hudson, New Hampshire 03051(800) 342-3374 (603) 889-4163 FAX (603) 889-0039

Visit our website at: www.csigroup.biz

Top quality precast at a fair price, when and where you want it. That’s our pledge.

Always has been. Always will be.

CERTIFIED PLANT



Mayor Menino Decides Against Run for Re-Election;

Potential Successors Begin toAssess Candidacies for Mayor of Boston

Boston Mayor Thomas Menino recently an-nounced that he would not seek an unprece-dented sixth term. Menino, who first took office

in 1993 when then Mayor Ray Flynn was appointed Ambassador to Vatican City, vowed that he plans to stay involved in Boston civic life, describing his an-nouncement as a new chapter in his career. He also reminded residents of Boston that he still has another nine months in office, and plans to use them. Most recently, Menino has been focused on overhauling the public school assignment system to make sure residents from every neighborhood have access to good schools.

In light of Mayor Menino’s announcement, lo-cal elected officials and residents began to weigh potential runs for higher office. Boston City Coun-

cilor John Connolly, who had already launched his mayoral campaign, planned to run regardless of Me-nino's decision not to seek another term. Suffolk County District Attorney Daniel Conley, who worked on Menino's first campaign for City Council in 1983, will also seek the seat.

State Representative Martin Walsh, a Dorches-ter Democrat and Chairman of the House Ethics Committee, has also indicated that he is interested in pursuing the seat. Other potential contenders in-clude State Representative Jeff Sanchez, the current House Chairman of the Joint Committee on Public Health; City Councilor Rob Consalvo, and City Coun-cilor Mike Ross. The election for Mayor occurs this November. n

LLC. 2ThibeaultDrive•Bow,NH03304Tel:800.595.7907•603.424.4600

www.easternpipeservice.com

Fred LaskeyMWRA

Executive Director

John SullivanBWSC

Chief Engineer

Ken KimmellMassDEP

Commissioner

AgencyHeadsForecastSustainedLevelOfUndergroundWaterAndSewerProjects

UCANE’sMarchDinnerMeeting


When UCANE announced that three top Mas-sachusetts state agency heads were sched-uled to forecast the underground utility work

for the coming year, it was understandable why this meeting would draw a record number of attendees. UCANE’s 2013 Forecast Dinner Meeting and Trade Show, sponsored by Todd McDonald and Broadstone Advisors, LLC, held at the Sheraton Four Points Hotel, Norwood, MA drew over 250 members and guests. The majority were encouraged by what they learned from the three presenters who know the underground water and sewer issues facing Massachusetts liter-ally from the “ground up”.

UCANE President Al Morteo opened the meet-ing with welcoming remarks and then turned the program over to Executive Director Anne Klayman, who introduced our new members and guests who were in attendance, as well as four prospective members.

Anne then introduced MassDEP Commissioner Ken Kimmell, who spoke about the track record of the Massachusetts State Revolving Loan Fund Program (SRF), as well as the challenges facing the SRF in 2013. All in all he expressed a generally positive

outlook for the number and dollar value of water and sewer projects projected for the coming year. (See the February 2013 issue of Construction Outlook magazine for the MassDEP Draft CY13 Clean Water and Drinking Water SRF lists.) UCANE members will be notified when the finalized project list is available and it will also be posted on our website.

However, he did raise concerns about the ability of cities and towns to fund projects and his depart-ment’s potential budget cutbacks, which would nega-tively affect both monitoring and enforcement ac-tivities. He generally approved of Governor Patrick’s budget, which included new taxes for a number of important infrastructure improvements. He also men-tioned that the MassDEP granted over $3 million to study and come up with plans to resolve Cape Cod’s nitrogen problem. He cited the Cape as an important economic engine for the state.

Next, MWRA Executive Director Fred Laskey presented a slide show highlighting recently complet-ed projects, projects currently underway, (particularly those being done by UCANE members), and projects coming out to bid. (See page 19 for the complete list of anticipated projects.)


Boston Water & Sewer Commission’s Chief Engi-neer John Sullivan followed by presenting an overview of the 2013-2015 Capital Improvement Program and a detailed review of BWSC projects that are expected to be put out for bid in the next three years. (See page 28 for the BWSC list.)

The general consensus of the three keynote speakers was that there would be a sustained level of underground water and sewer construction for the immediate future.

According to the presenters, the need for clean drinking water, wastewater pipeline, and treatment fa-cilities will continue to grow in order to meet the needs of our citizens, as well as to build the foundation for business and job growth. continued on page 17

Their presentations illustrated that the environmen-tal problems our state faces and the subsequent cost to remedy these problems, will pose a tremendous finan-cial challenge on this and future generations. There was also a consensus amongst the presenters that there was a huge issue regarding where to put contaminated soil removed while working on the projects. Commis-sioner Kimmell informed attendees that the MassDEP was aware of the problem and was actively negotiating to expand existing landfills and possibly find new loca-tions within the state to dump soil.

Concern was also voiced about the lack of public understanding of the complexities involved in develop-ing and then constructing a viable, efficient, and reliable

Dinner Meeting continued from page 15

drinking water and wastewater infrastructure network, which will allow our state to prosper. The presenters also expressed the need to inform the public and our elected officials about the success of the SRF program, which is essential if the program is to successfully com-pete for limited resources with other equally important social programs.

We at UCANE want to thank our speak-ers for taking time out of their busy sched-ules to join us and for their informative pre-sentations. The consensus among those in attendance was that the meeting met and

exceeded their expectations, with regard to providing the detail and background on each agency’s prospective projects. This is one of the best examples of government and private industry working together for the good of the citizens of the Common-wealth.

We would also like to thank our Con-struction Outlook advertisers who partici-pated in our trade show prior to the meet-ing. Once again it was a huge success. (Article on page 44.) n


Time for new equipment?C.N. Wood Has You Covered

Reliable Equipment• Dozers • Backhoe Loaders• Excavators • Graders• Wheel Loaders • Skid Steer Loaders• Articulated Trucks and more

Responsive Service• Parts available within 24 hours• Service on the job site or in C.N. Wood’s

state-of-the-art facilities

MassachusettsWoburn781-935-1919

Avon508-584-8484

Whately413-665-7009

Rhode IslandJohnston401-942-9191

www.cn-wood.com

Komatsu Distributor

Call the locationnearest you today!


FY13–FY15 UpcomingConstruction Awards


Project Phase Noticeto Est.Contract ProceedAmount($000)

Massachusetts Water Resources AuthorityUpcoming Construction Awards

FY13 Anticipated AwardsDI Treatment Plant Asset Protection Deer Island Sludge Pump Pipe Support Apr-13 $815Reserved Channel Sewer Separation Contract 6 (Downspout Disconnections)* May-13 $900DI Treatment Plant Asset Protection Electrical Equipment Upgrade-Construction 4 May-13 $11,300Weston Aqueduct Supply Mains Watertown Section Rehabilitation May-13 $1,900DI Treatment Plant Asset Protection NMPS & Winthrop Terminal Facility Butterfly Valve Repl. Jun-13 $10,000Facility Asset Protection Nut Island Electric & Grit/Sreens Conveyance-Construction Jun-13 $8,046DI Treatment Plant Asset Protection Roof Replacement Phase 3 Jun-13 $1,300Clinton Wastewater Treat Plant Clinton Tank Rehabilitation Jun-13 $3,111DI Treatment Plant Asset Protection Clarifier Tip Tube Replacement Jun-13 $20,000Facility Asset Protection DeLauri Pump Station Upgrades Jun-13 $407NIH Redundancy & Storage Gillis Pump Station Improvements Jun-13 $3,944

FY14 Anticipated AwardsCambridge Sewer Separation Cambridge Contract 8B (Huron Ave B)* Jul-13 $17,500Facility Asset Protection Diesel Engine Upgrade/Prison Point Pump/Gearbox Rebuild Aug-13 $5,000DI Treatment Plant Asset Protection Thermal Power Plant Boiler Control Replacement Aug-13 $1,000SOM01A Inerceptor Connector Relief/Floatables Control Sep-13 $275Carroll Water Treatment Plant Existing Facilities Modifications - CP7 Sep-13 $6,077DI Treatment Plant Asset Protection Barge Berth and Facility Replacement Sep-13 $750DI Treatment Plant Asset Protection Cryogenics Chillers Replacement Sep-13 $1,100DI Treatment Plant Asset Protection Fuel Oil System Modifications Sep-13 $3,000Facility Asset Protection Alewife Brook Pump Station Rehab - Construction Oct-13 $8,838DI Treatment Plant Asset Protection Digester Sludge Pump Replacement Phase 2 Oct-13 $4,659Facility Asset Protection Rehab of Sects 186 and 4 Construction Dec-13 $3,500Facility Asset Protection Prison Point Dry Weather Flow&Strip Pump Improvements Jan-14 $750Cambridge Sewer Separation Cambridge Contract 9 (Concord Ave)* Jan-14 $7,300Central Monitoring System Winsor Dam Electrical High Line Replacement Jan-14 $1,000DI Treatment Plant Asset Protection Grav Thicknener Rehabilitation Feb-14 $5,786Alternative Energy Initiatives DI Wind Phase II Construction (CSB) Mar-14 $2,500Long Term Redundancy Wachusett Aqueduct Pump Station Construction Apr-14 $45,608Carroll Water Treatment Plant CWTP Storage Tank Roof Drainage System May-14 $4,066DI Treatment Plant Asset Protection Winthrop Terminal Facility VFD Replacement - Construction Jun-14 $3,950

FY15 Anticipated AwardsFacility Asset Protection Chelsea Screenhouse Upgrades Jul-14 $3,300Residuals Asset Protection Residuals Facility Upgrade-Construction Jul-14 $10,000DI Treatment Plant Asset Protection North Main Pump Station Motor Control Center Ph 2 Constr. Jul-14 $6,086Weston Aqueduct Supply Mains Sect 36/W11C/S9-A Valve Jul-14 $7,983MetroWest Tunnel Shaft 5A/5 Surface Piping Inspection/Restoration Jul-14 $1,500Sudbury/Weston Aqued. Repair Sudbury Short-Term Repairs Jul-14 $419

3/28/13

Screens


New England’s Premier Precaster!

Other Products Include:Median Barriers, Tanks, Pump Stations, Leach Chambers, Fire Cisterns, Utility Structures, Curbing, Precast Footings, Bollards, Stairs, etc…

773 Salem StreetWilmington, MA

87 Haverhill RoadAmesbury, MA

153 Cranberry HwyRochester, MA

Mail: PO Box 520 ● Wilmington, MA 01887

(800) 696-SHEA (7432)Fax: (978) 388-6959

www.sheaconcrete.com [email protected]


MWRA continued from page 19

Project Phase NoticetoEst.Contract ProceedAmount($000)

MWRA FY13–FY15 Upcoming Construction Awards (cont.)


Dam Projects Goodnough Dike Drainage Improvements Jul-14 $1,000Wastewater Central Monitoring Wastewater Redundant Communications Jul-14 $700MWR003 Gate & Siphon Hydraulic Gate/Siphon Replacement Aug-14 $2,177Braintree-Weymouth Relief Facilities Wetlands Replication Sep-14 $700Facility Asset Protection Caruso Pump Station Improvements - Construction Sep-14 $2,310Clinton Wastewater Treat Plant Clinton Roofing Rehabilitation Sep-14 $509Spot Pond Supply Mains Rehabilitation Sec 4 Webster Ave Bridge Pipe Rehab Construction Sep-14 $1,500DI Treatment Plant Asset Protection Sodium Hypo Pipe Replacement - Construction Nov-14 $7,745DI Treatment Plant Asset Protection Sodium Bisulfite Tanks Rehabilitation Jan-15 $2,543Weston Aqueduct Supply Mains Sect 101/Watetown Section Jan-15 $14,052NIH Redundancy & Storage Sec 89 & 29 Redundancy Construction Phase 1 Jan-15 $21,316Facility Asset Protection Chelsea Creek Upgrades Construction Feb-15 $52,050DI Treatment Plant Asset Protection Cryogenics Plant-Equipment Replace-Construction Apr-15 $5,300Blue Hills Covered Storage Roadway Resurfacing - Construction Apr-15 $313NIH Redundancy & Storage Sec 89 & 29 Redundancy Const. Phase 2 May-15 $21,693Waterworks Facility Asset Protection Water Meter Upgrade Replacement Jun-15 $1,000

*MWRA share

3/28/13


FY13 Anticipated AwardsDI Treatment Plant Asset Protection Deer Island Sludge Pump Pipe Support Apr-13 $815Reserved Channel Sewer Separation Contract 6 (Downspout Disconnections)* May-13 $900DI Treatment Plant Asset Protection Electrical Equipment Upgrade-Construction 4 May-13 $11,300Weston Aqueduct Supply Mains Watertown Section Rehabilitation May-13 $1,900DI Treatment Plant Asset Protection NMPS & Winthrop Terminal Facility Butterfly Valve Repl. Jun-13 $10,000Facility Asset Protection Nut Island Electric & Grit/Sreens Conveyance-Construction Jun-13 $8,046DI Treatment Plant Asset Protection Roof Replacement Phase 3 Jun-13 $1,300Clinton Wastewater Treat Plant Clinton Tank Rehabilitation Jun-13 $3,111DI Treatment Plant Asset Protection Clarifier Tip Tube Replacement Jun-13 $20,000Facility Asset Protection DeLauri Pump Station Upgrades Jun-13 $407NIH Redundancy & Storage Gillis Pump Station Improvements Jun-13 $3,944

FY14 Anticipated AwardsCambridge Sewer Separation Cambridge Contract 8B (Huron Ave B)* Jul-13 $17,500Facility Asset Protection Diesel Engine Upgrade/Prison Point Pump/Gearbox Rebuild Aug-13 $5,000DI Treatment Plant Asset Protection Thermal Power Plant Boiler Control Replacement Aug-13 $1,000SOM01A Inerceptor Connector Relief/Floatables Control Sep-13 $275Carroll Water Treatment Plant Existing Facilities Modifications - CP7 Sep-13 $6,077DI Treatment Plant Asset Protection Barge Berth and Facility Replacement Sep-13 $750DI Treatment Plant Asset Protection Cryogenics Chillers Replacement Sep-13 $1,100DI Treatment Plant Asset Protection Fuel Oil System Modifications Sep-13 $3,000Facility Asset Protection Alewife Brook Pump Station Rehab - Construction Oct-13 $8,838DI Treatment Plant Asset Protection Digester Sludge Pump Replacement Phase 2 Oct-13 $4,659Facility Asset Protection Rehab of Sects 186 and 4 Construction Dec-13 $3,500Facility Asset Protection Prison Point Dry Weather Flow&Strip Pump Improvements Jan-14 $750Cambridge Sewer Separation Cambridge Contract 9 (Concord Ave)* Jan-14 $7,300Central Monitoring System Winsor Dam Electrical High Line Replacement Jan-14 $1,000DI Treatment Plant Asset Protection Grav Thicknener Rehabilitation Feb-14 $5,786Alternative Energy Initiatives DI Wind Phase II Construction (CSB) Mar-14 $2,500Long Term Redundancy Wachusett Aqueduct Pump Station Construction Apr-14 $45,608Carroll Water Treatment Plant CWTP Storage Tank Roof Drainage System May-14 $4,066DI Treatment Plant Asset Protection Winthrop Terminal Facility VFD Replacement - Construction Jun-14 $3,950

FY15 Anticipated AwardsFacility Asset Protection Chelsea Screenhouse Upgrades Jul-14 $3,300Residuals Asset Protection Residuals Facility Upgrade-Construction Jul-14 $10,000DI Treatment Plant Asset Protection North Main Pump Station Motor Control Center Ph 2 Constr. Jul-14 $6,086Weston Aqueduct Supply Mains Sect 36/W11C/S9-A Valve Jul-14 $7,983MetroWest Tunnel Shaft 5A/5 Surface Piping Inspection/Restoration Jul-14 $1,500Sudbury/Weston Aqued. Repair Sudbury Short-Term Repairs Jul-14 $419

3/28/13


As a way of saying thank you we are offering a special UCANE members discount on new Website & Social Media projects.

Walter Osterman, Presidentdirect line 561.301.3150www.SocialMavens.com

We are proud to have created the new website for UCANE

harnessing the force of the internet


MWRA Upcoming Contract AwardsMWRA continued from page 21

Alewife Brook CSO Control Plan

• NTP: July 2013 Est. cost: $17.5 million

Deer Island Scum Skimmer Replacement

• NTP: June 2013• Estimated cost: $20.0 million

Deer Island Butterfly Valve Replacement – North Main Pump Station And Winthrop Terminal Facility

•  NTP: July 2012 •  Es/mated cost: $2.5 million

Deer Island Butterfly Valve Replacement

North Main Pump Station And Winthrop Terminal Facility

• NTP: June 2013• Estimated cost: $10 million

Deer Island: Scum Skimmer Replacement

22

NoCce to Proceed: June 2013 EsCmated Cost: $20.0 million

Alewife Brook CSO Control Plan

Sewer Separa1on -‐ Huron Ave NoCce to Proceed: July 2013 EsCmated Cost: $17.5 million

Sewer Separa1on – Concord Ave NoCce to Proceed: January 2014 EsCmated Cost: $7.3 million

Gillis Pump Station Improvements (VFDs)

•  NTP: September 2012 •  Es/mated cost: $3.7 million

Gillis Pump Station Improvements (VFDs)

• NTP: June 2013• Estimated cost: $3.9 million

• NTP: Jan. 2014 Est. cost: $7.3 million

Sewer Separation - Huron Ave.

Sewer Separation - Concord Ave.


Chelsea Headworks Rehabilitation


27

NoCce to Proceed: February 2015 EsCmated Cost: $52.1 million


27


Wachusett Aqueduct Pump Station

25

NoCce to Proceed: April 2014 EsCmated Cost: $45.6 million

Northern Intermediate High Redundancy

26

Sec1on 89 & 29 -‐ Phase 1 NoCce to Proceed: January 2015 EsCmated Cost : $21.3 million

Sec1on 89 & 29 -‐ Phase 2 NoCce to Proceed: May 2015 EsCmated Cost : $21.7 million

Wachusett AqueductPump Station

• NTP: April 2014• Estimated cost: $45.6 million

Northern Intermediate High Redundancy

Section 89 & 29 - Phase 1• NTP: Jan. 2015, Est. cost: $21.3 million

• NTP: May 2015, Est. cost: $21.7 millionSection 89 & 29 - Phase 2

• NTP: February 2015• Estimated cost: $52.1 million


27




MWRA Upcoming Contract Awards

www.haslaw.comBOSTON | PROVIDENCE | HARTFORD | CONCORD | ALBANY

“Nationally Ranked inConstruction Law

by U.S. News & World Reportand Best Lawyers”*

• U.S. News and Best Lawyers considered almost 10,000law firms in 177 metropolitan locations

• 9,633 clients provided over 3.9 million evaluations* Source: U.S. News Media Group and Best Lawyers

Many thanks to our clients, peers and friends whose

comments contributed to our national ranking.


MWRA Ongoing Capital Improvement Projects (CIP)

Lower Hultman Aqueduct Rehab.Barletta Heavy Division

Brookline Sewer SeparationMicrotunneling

P. Gioioso & Sons, Inc.

Brookline Sewer Separation – Microtunneling: P. Gioioso & Sons, Inc.

•  Installa/on of 4,500 feet of new storm drain by microtunneling

•  Plus 5,080 feet of storm drain and sewer by open trench

• 13.2 miles of joint & leak repair• Interconnections to Metro West

Tunnel• 94% complete

• Installation of 4,500 ft. of new storm drain by microtunneling

• Plus, 5,080 ft. of storm drain & sewer by open trench

• 97% complete

Carroll Treatment Plant UVDaniel O’Connell’s Sons, Inc.

• Addition of ultraviolet disinfec-tion facilities to meet new SDWA regulations

• 87% complete

Carroll Treatment Plant UV - Daniel O’Connell’s Sons, Inc.

•  Addi/on of ultraviolet disinfec/on facili/es

•  Work is about 20% complete

Upper Hultman Aqueduct Rehab.Barletta Engineering Corp.

• Inspection & rehab. of 9,600 ft. of Upper Hultman

• 75% complete

Upper Hultman Aqueduct Rehab: Barletta Engineering Corp.

•  InspecCon and rehab of 9,600 feet of Upper Hultman

•  75% complete

8

Lower Hultman Aqueduct Rehab: Barletta Heavy Division

•  13.2 miles of joint and leak repair •  InterconnecCons to MetroWest

Tunnel •  94% complete

7




New UCANE June ad 2012.indd 1 6/8/12 3:11 PM26 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” APRIL, 2013

MWRA Ongoing Capital Improvement Projects (CIP)

Quabbin Water Treatment Plant UVDaniel O’Connell’s Sons, Inc.

• Addition of ultraviolet disinfection facilities to meet new SDWA regulations

• 3% complete

Quabbin Water Treatment Plant UV: Daniel O’Connell’s Sons, Inc.

•  AddiCon of ultraviolet disinfecCon faciliCes to meet new SDWA regulaCons

•  3% complete

16

Clinton Wastewater Treatment Plant – Plant-Wide Concrete Update

•  NTP: February 2013 •  Es/mated cost: $1.5 million

Clinton Wastewater Treatment Plant Aeration

R. H. White Construction Co.• Installation of fine bubble diffusers in

aeration tanks obtain a better oxygen transfer rate & reduce electricity consumption

• 99% complete

Deer Island North MainPump Station VFD’s

J. F. White Contracting Co.

• Replacing obsolete variable frequency drives

• 18% complete

Deer Island – North Main Pump Station VFDs: J.F. White Contracting Co.

•  Replacing obsolete variable frequency drives

•  18% complete

14

Cambridge CSOStormwater Wetland

P. Gioioso & Sons, Inc.• Construction of 4x8 box culvert

storm drain and wetland basin• 90% complete

Cambridge CSO Stormwater Wetland: P. Gioioso & Sons., Inc.

•  ConstrucCon of 4 x 8 box culvert storm drain and and wetland basin

•  90% complete

13



Executive SummaryCapital Improvement Program (CIP)

BostonWaterAndSewerCommissionCapitalImprovementProgram

2013-2015


The Boston Water and Sewer Commission (“the Commission” or “BWSC”) is a public instrumental-ity, a body politic and corporate and a political sub-

division of the Commonwealth, separate and apart from the City. It was created by the Massachusetts Legislature of the Acts in July 1977 in response to a “home rule” of the City. In August 1977, the ownership, operation, and control of the City’s systems were transferred to the Commission. Prior to the Commission assuming this responsibility, retail water and sewer services in Boston were provided by the City of Boston's Department of Public Works (“DPW”).

The Act authorizes the Commission to operate, main-tain, and construct all necessary improvements to the sys-tems, establish and collect rates, and charges for its services (which are not subject to regulation by any other govern-mental body), and finance its operations and improvements through revenue collections and the sale of bonds and notes payable solely from the Commission’s revenues.

The Act further provides that any revenue surpluses earned by the commission in any Fiscal Year shall be cred-ited to next year’s rates or returned to the City. Since its inception, the Commission has generated a surplus in each year of its operations and has credited the surplus to the reduction of the next year’s rates.

The Act may be amended only by means of further “home rule” petitions of the City enacted by the Massa-chusetts Legislature, or by means of state legislation af-fecting generally all water and sewer districts within the Commonwealth.

In 1993, the Commonwealth enacted Chapter 40N of the Massachusetts General Laws, Model Water and Sewer Reor-ganization Act (the “Model Act”), which permits municipali-ties to establish independent water and sewer commissions.

The Commission was created to maintain and improve the long-term quality and reliability of water and sewer services for all users in the City and to assure adequate

funding for the Systems. The Commission is committed to three primary goals:

• To maintain and improve the Water Distribution and Wastewater Systems.

• To establish and administer a billing and collec-tions systems that is fair and efficient.

• To maintain a strong financial structure.

The Commission has made significant progress to-ward the achievement of these objectives.

The Enabling Act and the Commission’s General Rev-enue Bond Resolution, adopted December 6, 1984 (“the Res-olution”) require that the Commission, on an annual basis, develop a three-year Capital Improvement Program (“CIP”). The CIP outlines the scheduling and implementation of the capital projects necessary to maintain and improve the water and sewer systems for the ensuing three-year period.

Complying with the requirements of the Enabling Act and the Resolution, the Commission projected cost of the Commission’s Capital Improvement Projects from Fiscal

Executive Summary 8

Water Pipe Replacement on Newbury St.

Temporary Bypass


Boston Water and Sewer continued from page 28

2013-2015 Capital Improvement ProgramFunding Sources

Table 2

FUNDING SOURCE 2013 2014 2015 TOTAL BWSC Bonds $ 58,952,000 $ 40,379,000 $ 22,976,000 $122,307,000

Rate Revenue $ 13,242,000 $ 14,440,000 $ 13,727,000 $ 41,409,000

Grants $ 0 $ 0 $ 0 $ 0

MWRA Water Assistance $ 5,722,000 $ 2,854,000 $ 1,661,000 $ 10,237,000

MWRA I/I Assistance $ 14,846,000 $ 7,165,000 $ 800,000 $ 22,811,000

TOTAL $ 92,762,000 $ 64,838,000 $ 39,164,000 $196,764,000

2013-2015 Capital Improvement ProgramCash Flows

Table 1

PROGRAM 2013 2014 2015 TOTAL Water $ 39,869,000 $ 27,719,000 $ 14,173,000 $ 81,761,000

Sewer $ 44,843,000 $ 29,048,000 $ 12,700,000 $ 86,591,000

Support $ 8,050,000 $ 8,071,000 $ 12,291,000 $ 28,412,000

TOTAL $ 92,762,000 $ 64,838,000 $ 39,164,000 $ 196,764,000

NOTE: Although expenditures decrease from periods 2014 to 2015, it is anticipated that funding for 2015 will be equal or greater than funding presented in 2014. The decrease in 2015 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.

NOTE: Although expenditures decrease from periods 2014 to 2015, it is anticipated that funding for 2015 will be equal or greater than funding presented in 2014. The decrease in 2015 is primarily due to the CIP being a one-year cash flow, over a three-year budget period.


Years 2013 through 2015 totals approximately 196.8 mil-lion. The overall objectives of the Commission 2013-2015 CIP are to ensure the delivery of high quality potable water for consumption and fire protection, as well as the efficient collection of sewage for transport and delivery to a treat-ment facility or for approved discharge. In addition, the CIP includes projects to improve overall efficiency of the Commission and to enhance the Commission’s ability to provide services to its customers.

Expenditures are divided into three categories: Water Distribution System projects; Sewer System projects; and Support projects. Water Distribution System projects ac-

count for $81.8 million, or 41.6% of the 2013-2015 CIP. Sewer System projects comprise $86.6 million, or 43.9% and Support projects total $28.4 million, or 14.5% of the expenditures outlined in the program.

Total capital expenditures of $92.8 million are out-lined for 2013. Water Distribution projects comprise $39.9 million, or 43.0%. Sewer System projects account for $44.8 million or 48.3% and Support projects totaling $8.1 million consisting of the remaining 8.7% of the 2012 amount.

Tables 1 and 2 present the cash flow expenditures and funding sources for the Commission’s 2013-2015 CIP.



PROJECT HIGHLIGHTS


The overall objectives of the Commission's CIP are to ensure the delivery of high quality po-table water for consumption and fire protection

and the efficient collection of sewage for transport and delivery to a treatment facility for approved discharge. In addition, the CIP includes projects to improve the overall efficiency of the Commission and to enhance the Commission's ability to provide services to its cus-tomers. The projects included in this CIP are intended to accomplish these objectives in the most efficient and cost effective manner. The Commission intends to enhance Boston’s water and sewer infrastructure with several targeted projects included in the 2013-2015 Capital Improvement Program. Some of the major projects are listed below:

• Wastewater and Drainage Facilities Plan

• Large Main Leak Detection & Water Quality Monitoring

• Water Pipe Corrosion Study

• Water Pipe Testing Program

• Water Main Flushing Program

• Water Main Replacement Program

• Cleaning and Rehabilitation of CSO Outfall 065

• Separation of Sewers Along Massachusetts Ave.

• Sewer Separation of A Street in South Boston

• Reserved Channel Sewer Separation

• Sewer Separation in Dudley Square

• Fort Point Channel Water Quality Assessment

• Construct BMPs and Green Infrastructure in Central Square, East Boston

• Industrial Facility Stormwater Pollution Prevention Program

• CSO Public Notification Program

• Grade of MTUs and DCUs with Latest Technology

• Development of a Five Year Strategic Information Technology Plan

Over 103 Years of Water Works Experience Serving Upstate New York and all New England!

LouieSchoolcrafthasjoinedKevinTigheandDonLaddtoheadour

salesteamleadership.

• MainLineMaterials• WaterServiceMaterials• PumpingStationsItems• WastewaterItems• WaterMeters• ToolsandEquipment• WaterTreatmentChemicals• DrainagePipe

FAST&DEPENDABLESERVICESINCE1963


169-B Memorial DriveShrewsbury, MA 01545508-842-3790



The largest component of the Water Distribution System CIP is the program to replace water mains. The replacement program replaces aged, undersized, or structurally deteriorated pipe. The program also in-cludes rehabilitation of pipe by structural lining.

In 2011, the Commission completed a 20 year Wa-ter Distribution Study, which analyzed the effective-ness and stability of the water system. Incorporating a progressive approach to understanding system’s needs, the new study outlines a detailed Capital Improvement Program maintenance and improvement plan.

This study provided a multi-faceted methodology for strategic investments over the next twenty years. As part of the Water Distribution Study all pipes in the BWSC system were placed in a ranking system through a computer model utilizing several factors in-cluding pipe age, material, soil conditions, break his-tory, and consequence of failure.

This system is used as a guide in the selection of pipes for replacement under the Capital Improvement Program. Pipes with the higher ranking are considered for replace-ment. Pipes are also selected within proximity to other se-lected pipe to create geographic based contracts. All streets

RoadTec RX 400 Milling Machine

3FT & 5FT Drum Widths

Cutting Depth Up to 12inChes

hot Mix Asphalt Roadway Milling

Bridge Decks

Trench excavation

508-548-1800fax: 508-548-6917

396 Gifford St., Falmouth, MA 02540P.O. Box 913, Falmouth, MA 02541

COLD PLANING SERVICES

For rental information and quotes please contact Andrew McDermott at [email protected]

are coordinated with City and State Paving Programs.

Using the latest technology solutions, we are identi-fying new areas where BWSC can make sustainable im-provement to the quality of our environment and services.

The quantity of work to be accomplished each year is in accordance with the recommendations of the Wa-ter Distribution Study completed in 2011, as well as the specific needs of the Commission and its customers.

This study recommended that the Commission undertake an average of 11 miles per year of replace-ment and relining projects through the year 2030.

The 2013-2015 CIP for the Water Distribution System continues programs for the replacement of water mains, the replacement of older or defective hy-drants as necessary on all replacement projects, the replacement of water mains on new or reconstructed bridges and various design services, permits, and pav-ing fees associated with the capital funded projects.

Projects scheduled for initiation in 2012 will re-sult in the replacement of approximately 11 miles of water mains.




Projects included in the Sewer System CIP in-clude the annual repair or replacement of approxi-mately 2.4 miles of deteriorated or collapsed sanitary sewers and storm drains along with the television inspection of 11 to 15 miles of sewer pipe. Also, in-cluded are drainage improvements in the replacement of faulty tidegates.

The objective of the Wastewater and Storm Drain-age System Facilities Plan is to develop facility plans for the City’s sewer and storm drains that are aligned with the Commission’s long-term service goals and supported by effective operations, maintenance, and engineering practices.

Critical elements of this project include:

• Assessment of the Commission’s Service Goals and other factors affecting long- term planning including: changing regulatory requirements, climate change, and financial conditions

• Systematic use of Risk-based tools to govern prioritization of investments in condition assessments, repairs, and replacements

• Integration of Business Process needed to sustain effective (CMOM) Capacity, Management, Operation and Maintenance Programs for sanitary sewer collections systems and engineering programs

• Training and Education to embrace the use of new tools and business processes and to sustain knowledge of the system and its operations

In addition to establishing a sustainable frame-work for planning and management, the Wastewater and Storm Drainage Facilities Plan project includes a

broad spectrum of data collection, engineering evalu-ation, and tool development activities.

The CIP continues funding for the separation of combined sewers and for the reduction of infiltration and inflow into the sanitary system. Infiltration and in-flow (“I/I”) are extraneous quantities of water, which enter the sanitary sewers and reduce the capacity of the system to transport sanitary sewage. Reduction of I/I also decreases the quantity of water transport-ed to the Massachusetts Water Resource Authority (“MWRA”) wastewater treatment facilities, thereby reducing overall transportation costs, treatment costs, and BWSC sewer assessments.

The Commission has executed agreements with the MWRA, which is under a court order decree to eliminate or substantially close combined sewer over-flows. The MWRA has committed to provide sewer separation in Dorchester, the Stony Brook area of Ja-maica Plain, the area of Boston known as the Bull-finch Triangle, and the Reserved Channel area of South Boston, the Constitution Beach area of East Boston, and the Fort Point Channel area of South Bos-ton. The projects resulted in the installation of approx-imately two hundred thousand feet of new drain pipe and the replacement of old water pipe and defective sewer pipe. The final result substantially decreased the amount of combined sewer overflows into the Charles River, Neponset River, and Boston Harbor. In addition the work greatly reduced the amount of drainage en-tering the Commission’s sewer system reducing pay-ments to the MWRA.

A complete description of the MWRA CSO pro-gram is in the 2013-2015 CIP, which is available at www.bwsc.org.

Darmody, Merlino & Co., LLPCERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

75 Federal Street, Boston, Massachusetts 02110-1997

WWW.DARMODYMERLINO.COMOFFICE617.426.7300•FAX617.426.2245

Serving The Construction Industry Since 1938




BWSC2013-2014CIPUpcomingProjects

WE’RE MADE OF:THE TOOLS YOU NEED.

Find out what we’re made of SM at easterninsurance.com

Eastern Insurance Group LLC is a wholly owned subsidiary of Eastern Bank.

As one of the largest independent insurance agencies in New England, we provide detailed support to design the most competitive and comprehensive insurance and surety plans for you. For an in-depth review of your program, call Eastern Insurance at 508-620-3478 today.

Construction Division

VERSION: DATE: JOB: BY SIGNING YOUR INITIALS BELOW, YOU ARE STATING THAT YOU HAVE READ AND APPROVED THIS WORK.

BLEED:

TRIM:

LIVE:

PUBLICATION(S):

TRAFFIC:

AE:

DESIGNER:

PROGRAM:

FILE FORMAT:

COLOR: CD COPYWRITER AD

ACCT SERVICE PROD PROOFING

77 North WashingtonBoston MA 02114617412 4000 telctpboston.com

1 2/15/12 12-EB-020

INDD Rachel

3.25” x 5.25” PDF Selena

4C Abby

CDCNews


TacklingtheWaterInfrastructureFundingGap:Initiatives Currently Before

the Massachusetts Legislature“When we turn on the tap in the morning, clean, drinkable water flows from the faucet. It is an uninteresting

and unremarkable fact of modern life until, one day, no water comes out. We have learned to take the reliability of our drinking water and wastewater disposal systems as well as our storm water systems for granted.” Massa-chusetts’s Water Infrastructure: Toward Financial Sustainability, Report of the Massachusetts Water Infrastructure Finance Commission (February 7, 2012)

It has long been thought that the Commonwealth’s drinking water and wastewater infrastructure faced substantial need, but few spoke to it as readily as

transportation, housing, or information technology needs. With over 40,000 miles of drinking water and wastewater pipes throughout Massachusetts (some pipes exceed-ing 100 years old), city and town water infrastructure is in dire need of improvements to provide clean drinking water and sanitized wastewater treatment to the residents of the Commonwealth. Under the existing system, efforts to address drinking water and wastewater infrastructure needs often occur when local systems fail or state and federal authorities demand action for subpar systems.

Accordingly, the Massachusetts Legislature autho-rized the convening of the Massachusetts Water Infra-structure Finance Commission (“MWIFC”). The MWIFC was created by the Massachusetts Legislature in 2009 to analyze the Commonwealth’s drinking water and waste-water infrastructure funding needs and develop recom-mendations for financing these needs going forward. The 16-member MWIFC was comprised of representatives from the Department of Environmental Protection, Of-fice of the State Treasurer, members of the Senate and House and their appointees, along with a representative from Boston Water and Sewer Commission. Additionally, nine members were appointed by the Governor from the following organizations: Utility Contractors Association of New England, Inc., American Council of Engineering Com-panies of Massachusetts, Massachusetts Waterworks As-sociation, Massachusetts Municipal Association, Clean Water Action, Associated Industries of Massachusetts, Environmental League of Massachusetts, Conservation Law Foundation, and Massachusetts Water Pollution Con-trol Association. The MWIFC held numerous meetings and hearings throughout the Commonwealth before issuing a comprehensive report in February 2012.

With last year’s release of the MWIFC report, three

key facts became apparent and seem to demand shared costs as well as reforms. Without addressing these facts, the Commonwealth and its cities and towns face a dif-ficult challenge in meeting shared future goals for robust economic development, public health, and a healthy en-vironment. The three key points:

• The Commonwealth Faces a Tremendous Water Infrastructure Need. The MWIFC found that the Commonwealth conservatively faces a $10.2 bil-lion shortfall in resources for drinking water and an $11.2 billion shortfall in resources for cleanwater (wastewater) projects over the next 20 years. Potentially forthcoming federal stormwater regulations may require an additional $18 billion in stormwater investment (in addition to the $21.4 billion for water and clean water) over the next 20 years depending on federal regulatory requirements.

• The Commonwealth’s Partnership in Fund-ing Water Infrastructure Projects Has Fal-tered. Both federal and state funding available to municipalities to fund drinking water and wastewater infrastructure has steadily decreased since the 1970’s. Line items that once funded infrastructure projects, provided rate relief, or funded low-interest loans have been cut dramatically or eliminated. On the local level, the Commission found that unlike other utilities, mu-nicipal water and sewer rates often do not come close

By Mark Molloy, Esq., Lynch Associates, Inc.



www.adlertankrentals.com

1-800-421-7471

TANK RENTALS

ADLER TANK RENTALSSERVICING ALL OF NEW ENGLAND

7 Day 24 Hour Emergency ServiceNew England: 1-774-245-6623

21,000 Gallon Frac Tank

• 21,000 &10,000 Gallon Steel Frac Tanks• Epoxy Coated, Carbon Steel, Steam Coils,

Open Top, Weirs, Vapor Tight• Safety Stairway & Guard Rail

• Welding For Special Project Needs• On-Site Tank Cleaning Service

• Covering the entire northeast region

571823_Half Page Ad 3/21/08 1:02 PM Page 1

SERVICING ALL OF NEW ENGLAND7 Day 24 Hour Emergency ServiceLiam Ferguson: 1-774-245-6623


to covering the full cost of providing clean water and eliminating waste. In particular, rates frequently do not cover capital improvement plans, the manage-ment and replacement of pipes and other assets, or the protection of watershed land. As a result, the public has grown accustomed to low water and sew-er rates that betray the true cost of service. Adding to this problem is that the Commonwealth alone can-not manage to meet the funding gap.

• The Commonwealth Must Find New Ways to Increase Funding for Water Infrastructure. While the Commonwealth previously relied heavily on federal and local sources, the Commonwealth must

now take strategic steps to reduce the size of the pre-dicted shortfall in necessary funding by: (a) sustain-ing current programs and investments at the state and federal level, including in particular, state and federal contributions to the Water and Sewer State Revolving Fund; (b) establishing new, dedicated funding sources to create at least an additional $200 million annually and for a mixed program of direct payments to cities and towns, low interest loans, and grants; and (c) in-centivizing all communities, authorities and districts to utilize rate structures that reflect the full cost of water supply and wastewater treatment.

The three key findings are clear. As a result, moving forward from the MWIFC’s report, various groups and

legislators agreed that now is the time to take a serious look at funding the Com-monwealth and its municipalities’ wa-ter and sewer needs. Senator Therese Murray (D-Plymouth), in her comments before the body at the beginning of the 2013-2014 session, listed her priorities as transportation financing and water infrastructure financing, among other issues. Citing the needs of Cape Cod as its struggles to address the problem of nitrogen impaired waters, the Senate President noted that the needs of the Commonwealth’s water infrastructure were essential to protecting the environ-mental sustainability of the state as well as its economic growth potential.

With the MWIFC’s call to ac-tion, certain legislators and advocacy groups answered the call, filing a va-riety of legislation for the 2013-2014 legislative session. In a manner similar to what occurred to transportation af-ter the Transportation Finance Com-mission issued its report a few years earlier, different components of the water infrastructure study have led to a diverse plate of legislative filings. Ideas include developing new streams of rev-enue and reforming existing practices. In particular, among the matters now before the Massachusetts Legislature:

• House Bill 214, An Act Relative to Improving Public Health, Environ-ment and Economic Development through Investment in Water and Sewer Infrastructure. (Representa-tive Sean Garballey (D-Arlington)). This matter, drafted by UCANE, establishes a Municipal Water and Sewer Assis-tance Trust Fund while empowering the

Funding Gap continued from page 37



Volvo Construction Equipment

Whatever you do, Woodco Machinery is there to help you do it. Dependable equipment – from construction and road building to forestry, utilities and more. Support – from sales and remarketing to reliable parts and service. Offerings – to get you working and keep you working – from Customer Support Agreements and CareTrack telematics to full-service financial solutions through Volvo Financial Services. It’s all delivered directly through one source: Woodco Machinery.

We’re the solution you can trust – before and after the sale. Let’s work together. Contact your nearest Woodco location today.

LET’S WORK.

PARTS & service

REMARKETING

CUSTOMER SUPPORT AGREEMENTS

VOLVO FINANCIAL SERVICES

CARETRACK

Get it done from one source: your Volvo dealer.

140 Wales AvenueAvon, MA 02322508-584-8484

22 North Maple StreetWoburn, MA 01801

781-935-3377

60 Shun PikeJohnston, RI 02919

401-942-9191

www.woodcomachinery.com




Massachusetts Water Pollution Abatement Trust (MWPAT), in conjunction with the DEP, as the over-seer of a second trust fund to provide leadership to address our water infrastructure needs. The Trust Fund may be used for a wide range of purposes ranging from grants or loans for new work, reha-bilitation of existing local systems or coordination of regional water infrastructure needs, among other uses. The legislation reallocates existing revenues from several sources and develops new revenue from dedicated property taxes and a de minimis surcharge on real estate transactions. Under this funding mechanism, the Commonwealth will recog-nize an additional $200 million in dedicated funding for water infrastructure on a yearly basis.

• House Bill 690, An Act Relative to Municipal Assistance for Clean Water and Economic Development Infrastructure. (Representative Carolyn Dykema (D-Holliston)). This legislation authorizes the creation of a 10-year Water Infra-structure Bond program to fund local drinking wa-ter, wastewater, and stormwater improvements. The bond program, which would provide an ad-ditional $200 million in annual funding, would be directed as follows: (a) 20% of the funds would be sent annually to every municipality, similar to Chapter 90 transportation funding; 40% to supple-

ment the existing State Revolving Fund low-inter-est loan program administered by the Water Pollu-tion Abatement Trust; 40% for qualifying grants to fund municipal water projects. Ten percent of the new grant program would be set aside for innova-tive or green technology projects. This new grant program would be administered by the Water Pol-lution Abatement Trust. Bond payments and debt service would be borne out of the General Fund or other taxpayer funded mechanism.

• House Bill 688, An Act Relative to Best Man-agement Practices in Water. (Representative Carolyn Dykema). This legislation requires the Massachusetts Division of Local Services to de-fine and establish guidelines for best management practices in long-term planning and financing for drinking water and wastewater infrastructure.

• Senate Bill 358, An Act Relative to Best Manage-ment Practices in Water. (Senator James Eldridge (D-Acton)). This bill will incentivize the adoption of best management practices for both the clean water SRF and the drinking water SRF. This bill directs the De-partment of Environmental Protection, with input from the Division of Local Services, to establish guidelines for best management practices in water management, including full cost pricing, financial management, and use of a storm water enterprise fund.


Bond or Insurance Problems?Let us improve upon your current program.

We can help!

• Problem Obtaining Bonds? • Slow Service? • Uncompetitive Terms? • Bid Bonds • Performance & Payment Bonds

• High Insurance Premiums? • Inadequate Coverage? • Poor Service?• All Forms of Liability and Property Insurance

• Newton Johnson, President • Oscar B. Johnson, Executive Vice President • Mark D. Leskanic, Vice President • Christopher Clark, Account Executive

Insurance Bonds Employee Benefits Risk Management50 Prospect Street | Waltham, Massachusetts 02453 | (781) 642-9000 | (781) 647-3670 fax | esia.com

Eastern States Insurance

ESI 6x3.75adv4.indd 1 12/11/09 3:13:09 PM


• Senate Bill 945, An Act to Mitigate Water Re-source Impacts. (Senator James Eldridge). This bill authorizes adoption of an opt-in “water-banking” fund by communities, public water suppliers, and DPWs allowing them to charge a reasonable fee for new or increased water withdrawals and sewer use, or when new or redevelopment projects are unable to comply with federal, state, or local storm water rules. Funds will be used by communities to invest in greener water infrastructure, increase the capacity of wastewater systems, and protect drinking water supplies. Measures could include local recharge of storm/wastewater, water reuse, retrofitting proper-ties with water-saving devices, fixing leaky pipes, and land acquisition for wellhead protection.

Regardless of the funding mechanism or legisla-tive vehicle, addressing the Commonwealth and its municipalities’ drinking water and wastewater infra-structure financing needs is essential. Whether the Massachusetts Water Pollution Abatement Trust becomes the “one-stop” water infrastructure fund-ing agency, the Commonwealth creates a secondary trust fund to assist municipalities, or municipalities are required to adopt best management practices, some action must be taken. As the MWIFC found “[w]hether or not necessary stormwater investments

are included, the message is clear: a significant in-crease in spending above current levels will be nec-essary to maintain current levels of service and sus-tain necessary infrastructure growth.”

The Utility Contractors Association of New England recognizes that there is no easy solution for addressing the local and state drinking water and wastewater in-frastructure needs. Water is an assumed facet of life. People turn on the faucet and assume that the water will naturally come out. Unless the Commonwealth launches reform efforts and begins to seriously con-sider additional or new ways to encourage municipal investment in our water infra-structure, we will be spending much more in the future – whether through an increase in overall project costs, a decrease in pub-lic health, lost economic development opportunities, or a reduction in property values. The aforementioned options may not be the solution to everything, but are a start to the conversation that must occur in the near future. n


UCANE’s 2Nd ANNUAl TrAdE show…

UCANE held its 2nd Annual Trade Show prior to the March “Forecast” Dinner Meeting, offering a complimentary booth to each Construction Outlook advertiser.

With such positive feedback from last years show, this year 28 advertisers set up their tables and displays, during an extended social hour, at the Four Points by Sheraton Hotel in Norwood, MA. Our members were extremely enthusiastic about showcasing their products and services, and networking with other members. Everyone walked away with something...new business contacts, promotional gifts, and even candy.

Construction Outlook advertisers know that name rec-ognition, visability, and credibility are essential to help grow and expand their businesses. Advertising in a trade pub-lication offers a powerful punch in competitive economic times. In businesses where pro-active involvement is criti-cally important, advertising in a trade specific publication is the best investment a company can make.

UCANE is providing its print advertisers with multiple ad exposures, at no additional cost. Their ads will now ap-

If yoUr CompANy Is NoT CUrrENTly A ConstruCtion outlook AdvErTIsEr…ThEy shoUld BE! CAll ThE UCANE offICE for

AdvErTIsINg rATEs ANd spACE AvAIlABIlITy.


ANoThEr hUgE sUCCEss!pear in a full digital version of Construction Outlook on our updated website. Also on the website, their ad will be listed with a link to their website, and will be featured, on a rotat-ing basis, in our monthly e-newsletter.

Our magazine advertisers make it possible for us to continue to publish our magazine which helps get our mes-sage out to not only our members, but also to every city and town, agency head, legislator, and non-members as well, in a most professional manner.

We ask our members to encourage their employees who may not receive a print copy of Construction Outlook to visit the UCANE website and read it online.

Our advertisers and Associate Members are familiar with the day-to-day issues contractors face. When doing business with a supplier that is a UCANE member, there is a good feeling knowing that they support our industry and our common goals. We ask that you please continue to do business with our advertisers and Associate Members, who so generously support UCANE.

ThANk yoU To All of oUr

TrAdE show pArTICIpANTsATSEquipment,Inc.

ArrudaTrenchlessConstructionBroadstoneAdvisors,LLC

EJEasternInsuranceGroup,LLC

EasternStatesInsuranceAgency,Inc.FergusonWaterworksFringeConsulting

HDSupplyWaterworksA.H.Harris&Sons,Inc.

LorussoHeavyEquipment,LLCMabey,Inc.

RainforRent-NewEnglandRogers&GrayInsuranceAgency,Inc.

RodmanFordSales,Inc.SchmidtEquipment,Inc.TheScituateCompaniesSheaConcreteProductsSystemsSupportCorp.TaylorOilCompany

AlbertJ.Tonry&Co.,Inc.Travelers

Tri-Products,LLCUnitedConcreteProducts,Inc.UnitedRentalsTrenchSafety

WealthPreservationSolutions,LLCC.N.WoodCompany,Inc.WoodcoMachinery,Inc.

For all your construction supply needs

www.ahharris.com

lSoil StabilizationlSlope Protection & Erosion ControllGabionslPavement Maintenance

lForming & ShoringlRebarlRoad & BridgelConcrete Repair & Restoration

plainville, Ma(774)847-9046

Boston, Ma (617)269-4800

WoBurn, Ma (781)376-9636

Cape Cod, Ma(508)759-9990

WorCester, Ma (508)767-0200

Cranston, ri(401)461-8020

DagleElectricalConst.,Corp.-Corporate Sponsor

E.J.Prescott,Inc.-Lobster Clambake Sponsor

McCourtConstructionCo.-$25,000 Hole-In-One

TaylorOilCompany-$10,000 Putting Contest

HDSupplyWaterworks-“Closest to the Pin” Against a Sports Celebrity

Monday, July 15, 2013Brookmeadow Country Club

Canton, MA

UCANE’s 34th AnnualDATE

For sponsorships or to reserve your spotcall the UCANE office at 617.471.9955 or go to www.ucane.com

Golf ClassicSAVE THE


The Importance ofBusiness SuccessionPlanning

Many of the contractors we work with are family owned or closely held businesses. We always stress the importance of implementing a comprehensive business succes-sion plan that addresses all of the common scenarios that might trigger a change in ownership. Almost all of the business owners we speak with at our seminars agree that this type of planning is essential. Occasionally, someone will insist that among family, a formal agreement is superfluous, as everyone can be relied upon to, “do the right thing.” Unfortunately, when we are brought in to review a client’s current plan-ning, we often find that either there is no plan, or, at best, an inadequate plan. The story below illustrates the kinds of problems that can arise from not putting into place a proper plan.

Years ago, Frank and Bill, brothers and equal partners, started a land improvement con-tracting business. Frank was “Mr. Inside” and

Bill was “Mr. Outside.” This arrangement worked per-fectly for many years. Frank and Bill built up such a successful business, that several of their business acquaintances wisely encouraged them to craft a buy/sell agreement that would spell out how the busi-ness would be treated if one of them were to pass away prematurely. So, they promptly asked their attorney to draft an agreement, and their insurance agent helped them to successfully apply for life insur-ance to fund the plan.

Their attorney designed a workable plan that used a trust to own the life insurance and that named the attorney as the beneficiary in his capacity as trustee. Sounds good so far, doesn’t it? Actually NO! The problem was that the agreement, a year later, was still in Frank’s bottom desk drawer, UNSIGNED, when he suddenly and unexpectedly passed away from a heart attack. Now what?

Without an executed agreement, the result was that Bill became partners with Frank’s wife. Even though she knew nothing about the business and so could not contribute to the now daunting work load of running the business, she expected to receive her deceased husband’s salary and share of the profits.

Furthermore, Bill could not use the insurance money to buy Frank’s wife out because the insurance pro-ceeds were paid to the attorney as trustee, but what was he supposed to do with the money? There was no executed buy/sell agreement or trust document that directed him, legally, as to what to do.


Two Brothers


Wealth Preservation Solutions, LLCKevin Ellman, CFP Paul D. Miller

The value of the business declined dramatically because too much executive

time and attention was diverted from running the business to cleaning up the mess.

To complicate matters further, it will come as no surprise to many of you, we are sure, that Bill and his sister-in-law could not agree on anything: Not on the price of the buyout, not on the terms of the purchase, and not on what responsibilities and rights each of them were to have in the business, while they tried to work out what to do. Ultimately, they spent years in court, wasted thousands of dol-lars on legal fees, and in the end both sides were completely estranged from one another. The anxi-ety, stress, and ill-will ended up ruining Bill’s health. The value of the business declined dramatically be-

Succession Planning continued from page 47

cause too much executive time and attention was diverted from running the business to cleaning up the mess.

What is the moral of this story? Someone must be accountable for expertly guiding the design and implementation of a proper succession plan all the way to completion! As well intentioned as Frank and Bill’s attorney and insurance agent were, the process was never completed. They were busy too, and while they attended to their own priorities, the most critical step in the planning process slipped through the cracks. The truth is that most success-ful businessmen are just too busy running their businesses to devote a lot of time to business suc-cession planning.

The very real story of well-designed agree-

DuraPatch: High-Performance Cold Patch

Shipped to your garage door in 50-lb bags! (56 bags arrive in every pallet)

Please contact Lindsay Pike for more informationCell: (401) 626-1200. Email: [email protected]

For more information and additional products visit: www.triproductsllc.com

ments lying in the bottom of desk drawers, un-signed, is, unfortunately, not uncommon. It is not enough to be almost right and almost complete. The devil is in the details. A plan that intends to deal with real life must define clearly what will hap-pen in the event of the obvious problems of death or disability, but must also lay out the procedures for dealing with a divorce, personal bankruptcy, disagreement, and/or retirement. There must be a mechanism not only to determine a fair selling price but also to provide the detail for realistic terms of purchase. If there are second or third generations of family that may one day work in or own part of the company, this too, must be contemplated in the original design. Each component of the plan must be properly coordinated with the other in order to carry out the intent of the owners, preserve the value of the business and protect the heirs. And, of course, the agreement must be witnessed and executed!

Clearly, it is critical to select a competent and experienced part-ner to help guide, design, and im-plement a comprehensive business succession plan. n

Someone must be accountable forexpertly guiding the design and

implementation of a proper successionplan all the way to completion!

Help WantedLorusso Corp. is seeking a

Construction Estimatorto join their team.

• 5 years experience with new and existing roadway construction

• Experience with Bid2Win a plus

• Generous benefit package

Email resume to: [email protected]

No telephone calls

EEO Employer




Rhiannon Campbell, Esq.Robin L. Main, Esq.

Environmental ViewpointHinckley Allen Snyder, LLP

Note: Robin L. Main is a Partner in Hinckley, Allen & Snyder LLP’s litigation group and co-chair of the firm’s envi-ronmental practice group. Rhiannon A. Campbell is an Associate in Hinckley, Allen & Snyder LLP’s litigation and envi-ronmental practice groups.

Voluntary Disclosureand the EPA’s Small Business

Compliance Policy

Many small businesses do not have the sophisticated environmental expertise that larger businesses do. For this reason, the Environmental Protection Agency (“EPA”) has developed the Small Business Compliance Policy to incentivize small business-es to voluntarily discover, disclose, correct, and prevent violations of environmental laws. Under the Policy, a small business is any person, corporation, partnership, gov-ernment, or organization that employs one hundred or fewer individuals. These small businesses are eligible for significant reductions in penalties for violations if they voluntarily disclose and correct them.

Civil penalties for violations of environmen-tal laws come in two forms: gravity-based penalties, which reflect the nature, duration,

and impact of the violations as well as the violator’s overall compliance record and efforts to remedy the violation, and economic-benefit penalties, which re-flect the monetary benefit the violator derived from the violation. Small businesses that meet the re-quirements of the Policy will have the entirety of the gravity-based portion of the penalty waived by the EPA. The Policy does not provide for waiver of any economic-benefit penalty, but the instances of such penalties being imposed on small businesses are relatively few.

To take advantage of the Policy, a small business must report a voluntary discovery of a violation to the EPA within twenty-one days of discovery and remedy that violation in 180 days (or 360 days if the correc-tion involves the installation of pollution-prevention measures). In order for a discovery to be “voluntary”

it must not be the result of any required regulatory action, statute, rule, permit, or the result of an au-dit required by a consent order or settlement agree-ment. “Discovery” occurs when any officer, director, employee, or agent of the small business becomes aware of any facts that reasonably lead him or her to believe that a violation may have occurred. As not-ed above, after such a discovery, a small business must report the violation within twenty days and cor-rect it within either 180 or 360 days (depending on if pollution-prevention measures are involved in the remedy). In order to adequately correct the violation a small business must not only remediate any harm caused by its violation, but it must also put in place procedures to prevent reoccurrence of the violation.

In certain circumstances a small business may not be eligible for penalty reduction under the Policy. For example, if a small business has benefited from the Policy because of a violation involving the same

The Perfect Excavation:

Don’t dig yourself into trouble...

Call Dig Safe®. It’s Smart, It’s Free, and It’s the Law.

Call before you dig.digsafe.com

• Pre-markthelocationofintended excavationusingwhitestakes, paintorflags.

• InMA,ME,NHandRI,notifyDigSafe® atleast72businesshoursinadvance.

• InVermont,notifyDigSafe®atleast 48businesshoursinadvance.

• Notifynon-memberfacilityowners.

• Maintainthemarksplacedby undergroundfacilityowners.

• Usecautionanddigbyhandwhen workingwithin18”ofamarkedfacility.

• Ifalineisdamaged,donotbackfill. Notifytheaffectedutilitycompany immediatelyifthefacility,itsprotective coating,oratracerwireisdamaged.

• Call911ifthedamagedfacilityposes arisktopublicsafety.

• Knowyourstate’sexcavationrequirements.Gotodigsafe.comforeducationalmaterialandcurrentlaws.

Environmental Viewpoint continued from page 49

requirements, or has been the subject of any enforce-ment action, citizen suit or warning, involving the same requirement in the past three years, it is not eli-gible for the Policy. Further, if the company has been the subject of enforcement actions for more than one violation of any environmental law within the past five years, it is not eligible for the Policy. Additionally, a small business may not avail itself of the Policy if the violation involved criminal conduct, has caused ac-tual harm to, or presents an imminent and substantial danger to, public health, safety, or the environment.

The complete waiver of the gravity-based portion of an EPA penalty can be substantial. The implementation of com-pliance management systems and the use of compliance assistance centers may lead to the types of voluntary dis-coveries encouraged by the Policy. Such voluntary discoveries and disclosures to the EPA will be significantly more cost ef-fective than the payment of gravity-based penalties associated with non-voluntary disclosures. n

Specialists InBonding AndInsurance ForContractors

Since 1926

LOU TONRY

CARL TRAINA

300 Congress StreetQuincy, MA 02169-0907

617.773.9200

238 Bedford StreetLexington, MA 02421

781.861.1800

281 Main StreetWebster, MA 01570

508.671.9222

www.tonry.com


(L-R) Al Morteo, Massachusetts LLS Board of Trustees President;Pierce Eastman, Patient Ambassador; and Sharon Klein, Massachusetts LLS Executive Director.

The Leukemia & Lymphoma Society of Massachusetts 4th Annual

U CANE’s affiliation with The Leukemia & Lymphoma Society of Massachusetts (LLS) goes back more than 33 years, and

during that time our members have donated millions of dollars to support the efforts of local doctors and re-searchers to help find a cure for these dreaded diseases.

This year, UCANE President Al Morteo served as Master of Ceremonies at the 4th Annual Gala for a Cure, which was held on Saturday evening March 2, 2013, at the Renaissance Boston Waterfront Hotel.

Special guests included Fox25 reporter Bob Ward and LLS researcher Dr. James E. Bradner, a staff phy-

Yes, “With Spring Comes Hope”...and many will benefit because the monies raised at this event will enable doctors at Dana Farber to continue their research to find the ultimate cure for Lymphoma, Hodgkin’s disease and Myeloma, and to improve the quality of life of patients and their families. n

sician in the Division of Hematologic Malignancies at Dana-Farber Cancer Institute and an assistant profes-sor of medicine at Harvard Medical School.

Nearly 300 guests attended the Gala, which was an inspirational evening, complete with dining and dancing featuring the music of Sweet Tooth & the Sugarbabies. The night included a silent auction as well as a live auction, with auctioneer extraordinaire Dan Flynn of Daniel J. Flynn & Co., Inc.

With the help of all who attended and those who donated or purchased goods or services at the eve-ning’s auction, more than $200,000 was raised.


Custom and Standard Concrete Products... Our Specialty!

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

See our full line of products at: www.unitedconcrete.com

United Concrete Products, Inc.173 Church St.

Yalesville, CT 06492

Toll Free: (800) 234-3119Fax: (203) 265-4941Jason [email protected] 203-464-7667w

ww

.uni

tedc

oncr

ete.

com


Supports New England’s Contractors

www.mabey.com 800-95-Mabey [email protected]

Call today and learn more about Mabey’s complete line of solutions to support your excavation project

Engineered to accommodate your excavation, our excavation support systems are your solution for:

• Underground utility installations • Sewer installations • Lift station construction

• Much more

Mabey also carries a full line of trenchboxes, road plates, pipe plugs and slide rail products.

• Reducing Uncertainty, Increasing Complexity• Restoring a Higher Tax Bracket• Lower Incomes, Higher Taxes• Estate and Gift Taxes Have Been Clarified• Breaks for Business Owners• AMT Relief, Child Tax Credit, and More

John E. Merchant, CPA Cullen, Murphy & Co., P.C.

IN THIS ISSUE



Reducing Uncertainty,Increasing Complexity

Each April, most Americans file their income tax returns for the previous year. By this time next year, in April

2014, you’ll be filing your tax return for 2013—and the rules will be governed by the American Taxpayer Relief Act of 2012, the last minute deal that averted the so-called “fiscal cliff.”

The good news is that large portions of this new law are permanent, or at least as permanent as any tax law can be. The major portions of the law won’t “sunset,” so the nation won’t have to relive the uncer-tainty about tax law that captured headlines in De-cember 2010 and December 2012.

In addition, many taxpayers will not face major changes under the new law. It’s true that Social Se-curity payroll taxes will rise for all workers, but that partial “holiday” was a temporary measure in effect during 2011 and 2012 to spur a slow economy. The income and estate tax benefits from earlier in this century largely remain in effect.

The catch? Taxpayers with higher incomes face a variety of higher taxes. Those taxes are imposed at different levels of income and on different types of in-come: adjusted gross income (AGI), modified adjust-

ed gross income (MAGI), and taxable income. Own-ers of S corporations and limited liability companies (LLCs) who report business net income on their per-sonal tax returns may be especially vulnerable to the higher rates. Similarly, taxpayers who report much higher income in a given year, perhaps because of a Roth IRA conversion or an asset sale, might have to wrestle with the higher rates and increased complex-ity of the new law.

Smart Tax, Business & Planning Ideas from your Trusted Business Advisorsm

1

April 2013

What’s Inside

Special Report on the American Taxpayer Relief Act of 2012

1 Reducing Uncertainty, Increasing Complexity

2 Restoring a Higher Tax Bracket

2 Lower Incomes, Higher Taxes

3 Estate and Gift Taxes Have Been Clarified

4 Breaks for Business Owners

5 AMT Relief, Child Tax Credit, and More

6 Tax Calendar

Reducing Uncertainty, Increasing Complexity

Each April, most Americans file their income tax returns for the previous year. By this time next year, in April 2014, you’ll be filing your tax return for 2013—and the rules will be governed by the American Taxpayer Relief Act of 2012, the last minute deal that averted the so-called “fiscal cliff.”

The good news is that large portions of this new law are permanent, or at least as permanent as any tax law can be. The major portions of the law won’t “sunset,” so the nation won’t have to relive the uncertainty about tax law that

captured headlines in December 2010 and December 2012.

In addition, many taxpayers will not face major changes under the new law. It’s true that Social Security payroll taxes will rise for all workers, but that partial “holiday” was a temporary measure in effect during 2011 and 2012 to spur a slow economy. The income and estate tax benefits from earlier in this century largely remain in effect.

The catch? Taxpayers with higher incomes face a variety of higher taxes. Those taxes are imposed at different levels

of income and on different types of income: adjusted gross income (AGI), modified adjusted gross income (MAGI), and taxable income. Owners of S corporations and limited liability companies (LLCs) who report business net income on their personal tax returns may be especially vulnerable to the higher rates. Similarly, taxpayers who report much higher income in a given year, perhaps because of a Roth IRA conversion or an asset sale, might have to wrestle with the higher rates and increased complexity of the new law. g

Financial Management continued from page 53


Restoring a Higher Tax Bracket

For several years, through 2012, Amer-icans paid income tax at six rates, ranging from 10% to 35%. Now, a

higher rate has been added: 39.6%, which was the highest income tax rate as recent-ly as 2000. In 2013, the 39.6% rate is im-posed on income over

• $400,000 for single taxpayers, • $450,000 for married couples filing

joint returns and surviving spouses,• $225,000 for married individuals

filing separately, and• $425,000 for heads of households. The 39.6% tax rate, like all tax rates, is imposed

on taxable income. That’s the number you report af-ter taking tax deductions.

Example 1: Ross Austin, a single taxpayer, has total income of $520,000 in 2013. After deductions, Ross has taxable income of $480,000.

Thus, $80,000 of his income will be taxed at the maximum 39.6% rate.

When 39.6% = 20%Prior tax legislation capped the tax on most long-

term capital gains at 15%. Taxpayers also owed no more than 15% on qualified dividends, which include most dividends paid to investors. The new law retains this relatively low ceiling for most people. However, taxpayers who have taxable income in excess of the 39.6% rate threshold will owe 20% tax on their long-term gains and their qualified dividends to the extent that these gains and dividends would otherwise be taxed at the 39.6% rate.

Example 2: Ross Austin from example 1 has a $60,000 net long-term capital gain in 2013. Ross has $480,000 of taxable income, which is $80,000 over the threshold for the top bracket, so Ross owes 20% tax on his $60,000 capital gain.

Suppose, though, that Ross has a $100,000 long-term gain this year. Ross is $80,000 over the relevant threshold, so $80,000 of his gain will be taxed at the maximum 20% rate, whereas the other $20,000 of his gain will be taxed at 15%.

Shifting Gears

Taxpayers below these higher income thresholds will continue to owe tax at rates as low as 10%. More-over, taxpayers in low tax brackets will owe 0% on tax-able long-term capital gains and qualified dividends. Therefore, income shifting strategies have a greater payoff now than they have had recently for high-in-come taxpayers. If you report substantial income, you may save more tax now by shifting income to children just beginning their career or to retired parents.

Holden Trap Rock Co.2077 N. Main Street(Route 122 A)Holden, MA 01520Tel: 508-829-5353Fax: 508-829-9346

Crushed Stone & State Specified Dense Graded Base

Manufacturer & Installer of Bituminous Concrete Products:

M.B.S. Construction Services/Paving

Berlin Stone Co.332 Sawyer Hill Rd.

(off Rt. 62 & 495)Berlin, MA 01503

Tel: 978-838-9999Fax: 978-838-9916

P. O. Box 115Centerville, MA 02632

Meredith Allen OurRobert B. Our, III

•New Units with Hand Sanitizers•Specializing in Units for

Construction Sites •Handicapped Units Available

www.ourouthouses.com




Lower Incomes, Higher Taxes

As explained in the previous article, “Restoring a Higher Tax Bracket,” individuals with taxable income over

$400,000 and married couples who ex-ceed $450,000 generally will be the ones paying the restored 39.6% top income tax rate, as well as higher tax on long-term capital gains and qualified dividends. However, such taxpayers aren’t the only ones fac-ing tax increases. Some people with lower incomes also will owe two taxes that reappear in the new law.

Eroding Exemptions

Prior law included a phaseout of personal exemptions for taxpay-ers with high incomes. That phase-out had been—yes—phased out in recent years. Now, the original phaseout has returned, as a per-manent feature of the tax law. In 2013, this phaseout will affect peo-ple with income over

• $250,000 for single taxpayers,

• $300,000 for married couples filing joint returns and surviving spouses,

• $150,000 for married individuals filing separately, and

• $275,000 for heads of households.

As you can see, these income thresholds are lower than the thresholds for the 39.6% top tax bracket. They also refer to adjust-ed gross income (AGI), the num-ber you report on the bottom of the first page of your tax return, be-fore you take itemized deductions. Therefore, people with taxable in-come far from the 39.6% bracket may owe more tax because their personal exemptions are deval-ued. Generally, for each $2,500

(or fraction thereof ) of AGI taxpayers are over their threshold, they will lose 2% of their personal exemp-tions. They can lose up to 80% of their exemptions this way.

Example 1: Sarah and Todd Bailey have two young children, so they can claim four exemptions. Personal exemptions are $3,900 per person in 2013, so the Baileys could claim $15,600 in deductions for

T H E D R I S C O L L D I F F E R E N C E :

Your key to obtaining the expertise needed to meet your bonding needs.

After serving major contractors for more than 50 years, the Driscoll Agency truly

understands the unique risks, insurance require-ments and surety demands of the construction industry. Managing risk can be very difficult. Which is why it’s critical to obtain adequate and proper insurance coverages. Our underwriting specialists will work with your best interests in mind when proposing solutions to your insurance needs.

When it’s time to navigate through the com-plexities of surety bonding, you can rely on our expertise and connections to get you aggres-sive representation and unbeatable access to industry decision-makers.

To discover the Driscoll difference, contact Tim Lyons, Bond Department Manager at 781-421-2560 or [email protected].

“The entire surety bonding team at Driscoll has the experience, expertise and industry contacts to give us the best possible representation and service. In an industry as specialized as ours, we wouldn’t consider letting any other agency handle this important need of our company.” – Satisfied Client

The Driscoll Agency, Inc. • 93 Longwater Circle, Norwell, MA 02061 • Phone (781) 681-6656 • Fax (781) 681-6686 • www.driscollagency.com

UCANE half 1.12 color.indd 1 1/6/12 2:56 PMAPRIL, 2013 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 55


L. GUERINI GROUP, INC.SINCE 1917

Material Placement Specialists

34TopalianStreetPOBox260187Boston,MA02126(617) 296-0290www.guerini.com

CONCRETEPUMPINGEQUIPMENT“TELEBELT”MOBILECONVEYORS

STONESLINGERSERVICEPumpsUpTo200yds/hr•BoomsUpTo142’Reach

LinePumps•GroutPumpsMaterialPlacementTo106’

PRODUCTS

• Bituminous Concrete• Sand & Gravel• Crushed Stone• Screened Loam & Compost• Recycled Aggregate Products• Rip Rap & Armor Stone

SERVICES

• Paving & Roadway Construction• Utility Trench Preparation• Utility Trench Paving• Organic Material Recycling• Construction Material Recycling• Roll Off Containers

LORUSSO CORPORATION3 Belcher Street, Plainville, MA 02762Tel: 508-695-3252 Fax: 508-699-2387Email: [email protected]

www.lorussocorp.com

QUARRY & RECYCLYNG40CrossStreet•Plainville,MA125TiffanyStreet•Attleboro,MA

ASPHALT PLANT635 Pleasant StreetNorwood, MA

Cross Media Marketingwww.smithprint.com

Longwater Dr. Norwell, MA 781.878.5555

•Focus on Customer Care •Consistency •Quality

•On-Time Delivery •Competitive Pricing

What Makes a Reliable Marketingand Print Supplier?

We are the proud provider of UCANE’sConstruction Outlook magazine. Contact us for

article and ad reprints, or to see samples ofmarketing materials to support your business.

Tri-CertifiedFSC SFI PEFC• •




their four exemptions. If the Baileys’ AGI in 2013 is $330,000, they are $30,000 over the relevant thresh-old, which is 12 times $2,500. Twelve times 2% equals 24%, so the Baileys personal exemptions would be reduced by 24%, from $15,600 to $11,856.

Declining DeductionsThe same income thresholds apply to the phase-

out of itemized deductions. Under this provision, item-ized deductions will be reduced by an amount equal to 3% of a taxpayer’s AGI over the relevant threshold. Thus, if the Baileys have AGI of $330,000, which is $30,000 over their threshold, they will lose $900 of their itemized deductions: 3% of $30,000. (Deduc-tions for medical expenses, investment interest, casu-alty or theft losses, and wagering losses are excluded from the calculation.) Again, high-income taxpayers can lose as much as 80% of their itemized deductions.

Sustaining the SurtaxIn the new tax law, Congress took no action regard-

ing the 3.8% Medicare surtax, included in prior health insurance legislation. As explained in the November 2012 Financial Management, this tax takes effect in 2013, affecting people who top these income levels:

• $250,000 for married couples filing joint returns and surviving spouses

• $125,000 for married individuals filing separately, and

• $200,000 for all other single taxpayers

For this surtax, the thresholds are based on modi-fied adjusted gross income (MAGI), which is AGI plus any net foreign income. For many taxpayers, MAGI will be the same as AGI.

As you can see, lowering your AGI may be able to help you reduce or eliminate the 3.8% surtax and the two phaseouts described in this article. Tactics that lower AGI, such as taking capital losses and maxi-mizing deductible contributions to retirement plans, may also lower your exposure to these taxes.

2

Restoring a Higher Tax BracketFor several years, through 2012, Americans paid income tax at six rates, ranging from 10% to 35%. Now, a higher rate has been added: 39.6%, which was the highest income tax rate as recently as 2000. In 2013, the 39.6% rate is imposed on income over

❖ $400,000 for single taxpayers, ❖ $450,000 for married couples

filing joint returns and surviving spouses,

❖ $225,000 for married individuals filing separately, and

❖ $425,000 for heads of households.

The 39.6% tax rate, like all tax rates, is imposed on taxable income. That’s the number you report after taking tax deductions.

Example 1: Ross Austin, a single taxpayer, has total income of $520,000 in 2013. After deductions, Ross has taxable income of $480,000.

Thus, $80,000 of his income will be taxed at the maximum 39.6% rate.

When 39.6% = 20%Prior tax legislation capped the tax on most long-term capital gains at 15%. Taxpayers also owed no more than 15% on qualified dividends, which include most dividends paid to investors. The new law retains this relatively low ceiling for most people. However, taxpayers who have taxable income in excess of the 39.6% rate threshold will owe 20% tax on their long-term gains and their qualified dividends to the extent that these gains and dividends would otherwise be taxed at the 39.6% rate.

Example 2: Ross Austin from example 1 has a $60,000 net long-term capital gain in 2013. Ross has $480,000 of taxable income, which is $80,000 over the threshold for the top bracket, so Ross owes 20% tax on his $60,000 capital gain.

Suppose, though, that Ross has a $100,000 long-term gain this year. Ross is $80,000 over the relevant threshold, so $80,000 of his gain will be taxed at the maximum 20% rate, whereas the other $20,000 of his gain will be taxed at 15%.

Shifting gearsTaxpayers below these higher in-come thresholds will continue to owe tax at rates as low as 10%. Moreover, taxpayers in low tax brackets will owe 0% on taxable long-term capital gains and qualified dividends. Therefore, income shifting strategies have a greater payoff now than they have had recently for high-income taxpayers. If you report substantial income, you may save more tax now by shifting income to children just beginning their career or to retired parents. Our office can go over these and other tax reduction strategies. g

continued on page 3

Lower Incomes, Higher TaxesAs explained in the previous article, “Restoring a Higher Tax Bracket,” individuals with taxable income over $400,000 and married couples who exceed $450,000 generally will be the ones paying the restored 39.6%

top income tax rate, as well as higher tax on long-term capital gains and qualified dividends. However, such

taxpayers aren’t the only ones facing tax increases. Some people with lower incomes also will owe two taxes that reappear in the new law.

Eroding exemptionsPrior law included a phaseout of personal exemptions for taxpayers with high incomes. That phaseout had been—yes—phased out in recent years. Now, the original phaseout has returned, as a permanent feature of the tax law. In 2013, this phaseout will affect people with income over

❖ $250,000 for single taxpayers,

❖ $300,000 for married couples filing joint returns and surviving spouses,

❖ $150,000 for married individuals filing separately, and

❖ $275,000 for heads of households.

As you can see, these income thresholds are lower than the thresholds for the 39.6% top tax bracket. They also refer to adjusted gross income (AGI), the number you report on the bottom of the first page of your tax return, before you take itemized deductions. Therefore, people with taxable income far from the 39.6% bracket may owe more tax because their personal exemptions are devalued. Generally, for each $2,500 (or fraction thereof ) of AGI taxpayers are over their threshold, they will lose 2% of their personal exemptions. They can lose up to 80% of their exemptions this way.

Travelers - One source for your Construction casualty, surety and inland marine insurance needs.

travelers.com

The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

© 2013 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks in the U.S. and other countries. CP-8186 New 2-13

ArrudA Trenchless consTrucTionPiPe And MAnhole rehAbiliTATion

92 Locust street • BerkLey, MA 02779teL: 508.567.9827 • [email protected]

CENTRI-PIPECentrifugallyCastConcretePipeLining

30”&AboveAllPipeTypes&Shapes

MANHOLEREHABBench&InvertRebuilds

LeakCeilingEpoxy&CementLining

CIPPLININGSLateralLining2”to10”

SpotLining

HDPE PIPE. PVC PIPE. VALVES/FITTINGS. GEOTEXTILES.

COUNT ON US1,350 locations. All 50 states. 17,000 associates.

59 years in business. In the waterworks business, time means money. At Ferguson, we understand our customers’ needs. Ferguson is one of the

leading suppliers of waterworks products in North America. It’s true that our inventory is huge with thousands of waterworksproducts in stock. And we fi ll your orders accurately and right away.

Canton: (781) 828-1350 North Harwich: (508) 430-1696 Worcester: (508) 754-2027

Nobody expects more from us than we do®

© 2012 Ferguson Enterprises, Inc. All rights reserved.

FERGUSON.COM

11 additional locations in Connecticut, Vermont, New Hampshire, Maine, Rhode Island and New York

56 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” NOVEMBER, 2009

CU Structural SoilsTM

roofliteTMcertified mediaRain Garden Soils

Sand-based SoilsFiber-reinforced Soils

Stabilized Paths

read custom soils888-475-5526

www.readcustomsoils.com SAND & STONE CORP.192 Plain St.

North Attleboro, MA 02760(508) 699-2911

www.borocorp.com





Estate and Gift Taxes HaveBeen Clarified

A single, unified exemption is avail-able to taxpayers for the estate and gift taxes. A taxpayer can use the

exemption to offset otherwise taxable lifetime gifts, and the taxpayer’s estate can use the amount remaining at his or her death to offset otherwise taxable be-quests.

The amount of the exemption was a major is-sue throughout 2012. That exemption was set at $5 million, adjusted for inflation. The inflation-adjusted amount for 2012 was $5.12 million. At that level, rela-tively few estates owed federal estate tax. However, the law in effect during 2012 called for the exemption to return to its 2003 level of $1 million in 2013. That would have exposed many estates to federal estate tax, with rates as high as 55%.

Instead, Congress largely left the 2012 estate and gift tax rules in place. The unified federal estate and gift tax exemption for 2013 and future years has been permanently set at $5 million adjusted for infla-tion, with the inflation-adjusted amount for 2013 being $5.25 million. Therefore, estates of people who die with a net worth under $5.25 million and did not make significant gifts during their lifetime generally will not have to pay estate tax.

The only major estate tax change in the new law regards the maximum federal estate tax rate, which has been increased from 35% in 2012 to 40% in 2013 and subsequent years.

Example 1: Anna Carter dies in 2013, when the exemption is $5.25 million. Anna did not use any

of her exemption amount on gifts during her life-time and leaves an estate valued at $6 million. The $750,000 over the exemption amount will be taxed at the maximum rate of 40%, so Anna’s estate will owe $300,000 (40% of $750,000) in federal estate tax.

Preserving Portability

With a $5.25 million federal estate and gift tax exemption amount, a married couple that does not use the exemption to offset any lifetime gifts can po-tentially leave up to $10.5 million in assets free of es-tate tax.

In fact, the new tax law makes that simpler to do than has been the case in the past because Con-gress made permanent what had been a temporary “portability” provision. In prior years, lack of portabil-ity created problems for many married couples.

Example 2: Barry and Carla Duncan, a married couple, had total assets of $8 million. Barry died in 2009 and left all of his assets to Carla. Because one spouse’s bequest to the other spouse typically avoids estate tax, regardless of the amount, no estate tax was due.

Assume Carla dies in 2013 with an $8 million estate, and she did not use any of her exemption amount on lifetime gifts. She’ll be $2.75 million over the $5.25 million exemption amount, and her estate will owe $1.1 million in federal tax, at a 40% rate.

To remedy such outcomes, Congress created a temporary portability provision for 2011, a provi-

www.palanders.com

351WinterStreet•Hanover,MA02339800.660.6404•781.826.8818

Fax: 781.829.6377

Route130•Sandwich,MA02563800.834.4333•508.477.8818

Fax: 508.477.8818

P.A. Landers, Inc.The Smart Choice For All Your Site Development Needs

“WE DELIVER QUALITY BY THE TRUCKLOAD”


sion that’s now a permanent part of the tax code. With portability, any unused portion of a deceased spouse’s exemption amount can be used by the sur-viving spouse’s estate. Originally, Congress created this portability opportunity only for deaths in 2011 and 2012. The new law makes portability permanent.

Example 3: If Barry Duncan had died in Janu-ary 2013, leaving all of his assets to Carla, he would have left $5.25 million of his exemption unused. That amount can be transferred to Carla, if Barry’s execu-tor makes a timely election to do so on a properly filed estate tax return, IRS Form 706. If Carla then dies in December 2013 without using any of her exemption for gifts, her estate would have a total exemption of $10.5 million (her own $5.25 million exemption and a similar one from Barry). Carla’s $8 million estate wouldn’t be taxed by the federal government, for a $1.1 million tax saving.

The new tax law also preserves the federal tax deduction for state estate taxes. This provision should remind you that estates may owe state estate tax even if they are exempt from federal estate tax.

Example 4: Edward Franklin dies in 2013 with a $3 million estate, so he owes no federal estate tax. However, Edward’s home state exempts only $1 mil-lion of assets from state estate tax. His estate is $2 million over the threshold; depending on the state’s tax rates, Edward’s estate may owe many thousands of dollars in state estate tax.

The bottom line is that you should not ignore estate tax planning, even if you have little concern about federal estate tax. Our office can work with you on strategies to reduce exposure to estate tax, state or federal.

Generous Gifts

As noted above, you can use your unified federal estate and gift tax exemption amount to offset other-wise taxable lifetime gifts, thus reducing the amount of gift tax you have to pay. However, using the ex-emption for lifetime gifts reduces the amount of the exemption available to your estate to offset otherwise taxable bequests and reduce the amount of the es-tate tax.

Example 5: Nancy Harris has never made any taxable gifts. In 2013, she gives $1 million to her daughter Lisa. The first $14,000 of that gift is tax free, covered by the annual gift tax exclusion for 2013. The other $986,000 is considered a taxable gift but Nancy owes no gift tax because of the lifetime gift tax exemption. After making the gift, Nancy’s lifetime gift-tax exemption is $4,264,000: her original $5,250,000 exemption minus the taxable gift of $986,000. That $4,264,000 exemption, indexed for future inflation,

can shelter future gifts or bequests from tax.

What’s more, the concept of portability, explained earlier in this article, also applies to gift tax, so once a surviving spouse has increased his or her exemp-tion by the deceased spouse’s unused exemption amount, that increased amount can be used to offset either gift or estate tax.

Example 6: Assume that the transfer tax exemp-tion, which is $5.25 million in 2013, rises to $6 mil-lion in a future year, and the annual gift tax exclu-sion remains $14,000. Nancy Harris dies that same year, having made no additional taxable gifts. Nancy leaves all of her assets to her husband, Pete, thus incurring no estate tax. In this scenario, Nancy’s un-used exemption is $5,014,000: her $6 million exemp-tion minus $986,000 in taxable gifts.

Assume that Pete has not made any taxable gifts. Pete could have a total exemption of $11,014,000 in this example, including Nancy’s unused amount. Pete could make up to $11,014,000 in tax-free gifts, and when he died, any unused gift tax exemption would be available to provide estate tax shelter.

In addition, the generation skipping transfer (GST) tax exemption also is $5.25 million in 2013, indexed to inflation. However, portability does not ap-ply to the GST tax.


GEOD CONSULTING Professional Land Surveyors & Engineers

Construction Surveying Specialists Engineering/CADD Services

GPS Consultants Providing Surveying, Engineering & CADD Services to construction companies in the New England area. Experienced in construction layout of highways, utilities, schools, bridges and site development.

24 Ray Avenue Burlington, MA 01803

Phone 781-273-3434 Fax: 781-273-3430

Expands Services to Include Subsurface Utility Mapping

CONSULTING

Engineering•Transportation•Surveying

24RayAvenue•Burlington,MA01803Tel:781.273.3434•Fax:781.273.3430

www.geodcorp.com

GEOD CONSULTING Professional Land Surveyors & Engineers

Construction Surveying Specialists Engineering/CADD Services

GPS Consultants Providing Surveying, Engineering & CADD Services to construction companies in the New England area. Experienced in construction layout of highways, utilities, schools, bridges and site development.

24 Ray Avenue Burlington, MA 01803

Phone 781-273-3434 Fax: 781-273-3430





Breaks for Business Owners

Several provisions of the new tax law apply to businesses. For the most part, these provisions extend previ-

ous law, often through 2013, while some are retroactive to 2012.

First-Year Equipment Deductions

Under Section 179 of the tax code, businesses can take a first-year “expensing” deduction for equip-ment placed in service, rather than spread deprecia-tion deductions over several years. Thus, equipment purchasers get the tax benefits more rapidly, which makes them more valuable.

Throughout 2012, business owners believed the expensing limitation for the year would be $139,000 of equipment, with a phaseout, dollar for dollar, start-ing with $560,000 of purchases. The new tax law sets the expensing limit at $500,000, with a phaseout beginning at $2 million. The higher limits apply retro-actively to 2012 as well as to 2013.

Example 1: Smith Corp. buys $400,000 worth of equipment in 2013. It can take a $400,000 deduction, under Section 179.

Example 2: Jones Corp. buys $2.2 million worth of equipment in 2013. Therefore, Jones Corp. is in the phaseout range by $200,000. Con-sequently, the company’s first-year deduction will be reduced from the maximum $500,000 to an al-lowable $300,000.

In 2014, the Section 179 deduction is sched-uled to drop to a $25,000 maximum, with a phase-out beginning at $200,000 of purchases. However, Congress has consistently agreed to increase these amounts substantially, with short-term extenders.

Bonus DepreciationIn example 2, Jones Corp. buys $2.2 million of

equipment in 2013 and expenses $300,000 of those purchases under Section 179 of the tax code. The remaining $1.9 million of equipment purchases must be depreciated.

Typically, businesses must spread deprecia-tion deductions over several years. In recent years, though, “bonus depreciation” has allowed more rapid recovery of the cost of qualified property (which in-cludes most equipment and machinery). The new tax law extends 50% bonus depreciation through 2013. Therefore, Jones Corp. may be able to take an ad-ditional first-year tax deduction of $950,000 (50% of

$1.9 million) for its equipment purchases in 2013. The $950,000 balance will be deducted over a multiyear schedule.

Bonus depreciation applies only to new equip-ment. By contrast, businesses may take first-year ex-pensing deductions under Section 179 for purchases of new or used equipment.

Credit CheckSeveral other business-related provisions were

extended through 2013 in the new tax law. They in-clude the research tax credit, for increases in quali-fied R&D; the new markets tax credit, for certain in-vestments in low income communities; and the work opportunity tax credit, for hiring individuals from cer-tain groups with high rates of unemployment. Under the work opportunity tax credit, employers who hire a covered individual generally receive a tax credit equal to 40% of first-year wages, up to $6,000. The tax credit for hiring certain veterans can be as high as $9,600.



AMT Relief, Child Tax Credit, and MoreThe American Taxpayer Relief Act of 2012 is far

ranging, with many other provisions that might affect taxpayers. They include the following:

• Alternative minimum tax (AMT) exemp-tion. For years, Congress has increased the AMT exemption amount with a series of “patches.” Without these increases, the exemption would have been lower and more taxpayers would owe the AMT.

The new law sets the exemption amounts for 2012 at $78,750 for married couples filing joint returns and surviving spouses; at $39,375 for married taxpayers filing separately; and at $50,600 for individuals who are not married. In 2013, those amounts are $80,800, $40,400, and $51,900, respectively, and in subse-quent years, they will increase with inflation.

• Child tax credit. This credit, which was due to fall to $500 in 2013, is now permanently set at $1,000. That $1,000 tax credit is per child under age 17. Income limits may pre-vent some parents from receiving some or all of this credit.

• Equality for couples. The new law main-tains the rules aimed at eliminating the “marriage penalty.” For example, the stan-dard deduction for a single taxpayer in 2013 is $6,100; the new law assures that the standard deduction for married couples filing jointly will be twice as high: $12,200. If the new law had not passed, the standard deduction for couples would have been only $10,150.

Similarly, the 15% tax bracket for single taxpay-ers goes up to $36,250 of taxable income, and the new law will mean that bracket goes up to $72,500 for married couples filing jointly. Before the new law extended marriage penalty protection, couples would have moved from the 15% bracket to the 25% bracket with only $60,550 of taxable income.

• Sales tax deduction. People who itemize deductions on Schedule A of Form 1040 can deduct state and local income taxes paid. In recent years, itemizers have had the option of deducting state and local sales taxes

DeSanctis Insurance AgencyDeSanctis Insurance AgencyServing the Bonding and Insurance needs of the

N.E. construction industry for over 35 years.

Protection starts here

and here.

Adam DeSanct is Gregory Juwa James AxonMichael Carney Wilder Parks Michael Gi lber t Bryan Juwa

David Boutiet te Paul Patalano Dick Caruso Ryan Prentis

Adam DeSanct is Gregory Juwa James AxonMichael Carney Wilder Parks Michael Gi lber t Bryan Juwa

David Boutiet te Paul Patalano Dick Caruso Ryan PrentisDeSanctis Insurance Agency, Inc. • 100 Unicorn Park Drive • Woburn, MA 01801 (781) 935-8480 www.desanctisins.com




paid, rather than state and local income taxes. The new law extends this option through 2013, providing an especially valu-able benefit to residents of states with no income tax.

• IRA charitable contributions. Generally, taxpayers owe tax if they use IRA money for charitable donations, because IRA distribu-tions must be included in income. In recent years, though, taxpayers 701⁄2 or older have been able to make direct distributions from their IRAs of up to $100,000 to charity without including the distributions in income. The tax-payers didn’t get a charitable contribution tax deduction, but they avoided increasing their adjusted gross income (AGI) by the amount of the distributions and the distributions were treated as part of their required minimum distributions.

The new law restores this tax benefit for 2012 and for 2013. An IRA owner can treat a contribution made to a qualified charity in January 2013 as a 2012 qualified charitable distribution, in many cases.

• American Opportunity Tax Credit. Ever since Congress replaced the Hope Scholar-

ship tax credit with the more valuable AOTC in 2009, the AOTC has been a prime tax break. The new law extends the AOTC through 2017.

Under the AOTC, taxpayers may cut their tax bill by as much as $2,500 per student. To get the maximum credit, you must spend at least $4,000 per student in the relevant calendar year. You can count money spent for students in their first four years of post-high school education. The money you pay for tuition and related fees counts for calculating the tax credit, along with outlays for necessary books, sup-plies, and equipment but room and board costs don’t count. Income limits prevent some taxpayers from claiming the AOTC.

Taxpayers who are not able to claim the AOTC may qualify for the deduction for qualified tuition and related expenses. That deduction, which may be as much as $4,000, although it expired after 2011, is now extended retroactively to 2012 and through 2013 as well. Also included in the new law are con-tinued easing of the tax deduction for interest on student loans and maintenance of the $2,000 limit for annual contributions to Coverdell Education Sav-ings Accounts.

Reprinted from CPA Client Bulletin. n

D e d i c a t e d t o e x c e e d i n g y o u r e x p e c t a t i o n s .

Palmer Paving is an industry leading heavy highway civil engineering

construction firm, serving both public and private sector clients. With

our own HMA and aggregate processing plants, we are fully integrated

as a materials producer and roadway contractor for projects of any size.

We welcome your inquiries and look forward to helping you solve your

next site, road construction or infrastructure challenge.

25 Blanchard Street,Palmer, MA 01069413-283-8354

43 Old Coldbrook RoadBarre, MA 01005413-283-8354

1000 Page BoulevardSpringfield, MA 01104413-737-4020

23 Arthur StreetEasthampton, MA 01027413-527-6900

Palmer Paving Corporation, Inc www.palmerpaving.com

E.H. Perkins Construction, Inc.

& Subsidiaries

GRAVEL • SAND • STONEFILL AND LOAM

BITUMINOUS CONCRETE (PAVING)READY-MIX CONCRETE

PRECAST CONCRETE PRODUCTS

P.O. Box 301, Wayland, MA 01778(508) 358-6161 • (781) 890-6505

E H P

Advertisers’ IndexATS Equipment, Inc. ..........................................................26Adler Tank Rentals .............................................................38Aon Construction Services Group .......................................39Arruda Trenchless Construction .........................................57Boro Sand & Stone Corp. ....................................................58Dennis K. Burke, Inc. ..........................................................43Concrete Systems, Inc. ........................................................12Dagle Electrical Construction, Corp. ....................................6Darmody, Merlino & Co., LLP............................................34DeSanctis Insurance Agency, Inc. ......................................62Dig Safe System, Inc............................................................50The Driscoll Agency ...........................................................55EJ ..................................................................... Ins. Back Cvr.Eastern Insurance Group, LLC ...........................................36Eastern Pipe Service, LLC ..................................................13Eastern States Insurance Agency, Inc. ................................41T. L. Edwards, Inc..................................................................7Ferguson Waterworks ..........................................................58Geod Consulting, Inc. ......................................................... 60L. Guerini Group, Inc. .........................................................56HD Supply Waterworks .........................................................4A. H. Harris & Sons, Inc. .................................................. 46Hinckley Allen Snyder, LLP .............................................. 24John Hoadley & Sons, Inc. ....................................................9P. A. Landers, Inc.................................................................59Lawrence-Lynch Corp. ........................................................33Liddell Brothers Inc. ............................................................30Lorusso Corp. ......................................................................56Lorusso Heavy Equipment, LLC.........................................10Mabey, Inc. ..........................................................................52Mass Broken Stone Company ..............................................54Milton CAT .................................................................... 2 & 3Our Outhouses, Inc. .............................................................54Palmer Paving Corporation .................................................63E. H. Perkins Construction Co., Inc. .................................. 64Podgurski Corp. ..................................................................61E. J. Prescott, Inc. ............................................ Ins. Front Cvr.Rain For Rent-New England ..................................................8Read Custom Soils ..............................................................58Rogers & Gray Insurance Agency, Inc. ...............................16Schmidt Equipment, Inc. ........................................ Back Cvr.The Scituate Companies ......................................................42Shea Concrete Products .......................................................20Smith Print ...........................................................................56Social Mavens ......................................................................21Ti-SALES, Inc. ...................................................................31Albert J. Tonry & Co., Inc. ..................................................50Travelers ...............................................................................57Tri-Products, LLC ...............................................................48United Concrete Products, Inc. ...........................................52United Rentals Trench Safety ..............................................32Wealth Preservation Solutions, LLC ...................................11C. N. Wood Co., Inc. ...........................................................18Woodco Machinery, Inc...................................................... 40

QUINN-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

-PLANT LOCATIONS-


Learn more at ejco.com or 800 626 4653

East Jordan Iron Works is now EJ

EJ is driven by unparalleled customer care, exceptional solutions, global expertise, and local understanding.

We are EJ.

!yadot su tcatnoC

moc.tnempiuqEtdimhcS.www snoitacoL 5

IR & AM gnivreS 5928-229 )008(

seireS-K knihT ?gib gniknihT

07345300-N43OOFFUC1SF0

sresu dna srenwo redaoL .sruoy — yrtsudni eht ni sdnim tsethgirb eht fo tcudorp eht era sredaoL seireS-K ruo ni dnuof stnemenifer eht fo ynaM erom ,reteiuq sa hcus serutaef gnitsoob-emitpu dna ytivitcudorp htiw dedaoL .tluser eht si seireS-K eht dna ,denetsil ew ,deklat uoy sa hcus

fo tsil regnol a dnA .snoitcnuf dednapxe htiw srotinom weiv-ot-reisaE .sciluardyh lufrewop eroM .smetsys ™looC-dauQ decnahnE .sbac suoicaps .seireS-K gnikniht uoy evah lliw sereeD nhoJ eseht syaw eht lla uoy wohs su tel dna ,llac a su evig ro yadot ni potS ?gib gniknihT .snoitpo

!yadot su tcatnoC

moc.tnempiuqEtdimhcS.www snoitacoL 5

IR & AM gnivreS 5928-229 )008(

seireS-K knihT ?gib gniknihT

07345300-N43OOFFUC1SF0

ni sdnim tsethgirb eht fo tcudorp eht era sredaoL seireS-K ruo ni dnuof stnemenifer eht fo ynaM si seireS-K eht dna ,denetsil ew ,deklat uoy sa hcus sresu dna srenwo redaoL .sruoy — yrtsudni eht

suoicaps erom ,reteiuq sa hcus serutaef gnitsoob-emitpu dna ytivitcudorp htiw dedaoL .tluser eht htiw srotinom weiv-ot-reisaE .sciluardyh lufrewop eroM .smetsys ™looC-dauQ decnahnE .sbac

,llac a su evig ro yadot ni potS ?gib gniknihT .snoitpo fo tsil regnol a dnA .snoitcnuf dednapxe .seireS-K gnikniht uoy evah lliw sereeD nhoJ eseht syaw eht lla uoy wohs su tel dna

Construction Outlook April 2013

Documents

Transcript of Construction Outlook April 2013