PHCC Contractor Fall 2016

TEAM USA IN SOUTH AFRICA

VOLUME 11, NUMBER 3

NEW SALES TAX EXEMPTION

AUTUMN PLUMBING SEMINARS

FALL 2016

Master Plumbers/Heating & Cooling Contractors of Wisconsin

THE OFFICIAL PUBLICATION OF THE PHCC WISCONSIN ASSOCIATION AND MASTER PLUMBERS/HEATING & COOLING CONTRACTORS OF WISCONSIN

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FALL 2016

FEATURES

14 Team USA Tackles Public Toilets in Diepsloot, South Africa

18 Embracing The Smart Home and Some Smart Products 22 New Wisconsin Sales Tax Exemption

REPORTS 6 President’s Letter

Enhanced Services To Benefit Your Business What Do You Want To Be When You Grow Up?

10 Zone Director’s Report

Vice President/Secretary: Carol DeYoung (Zone #10), Countryside Plumbing & Heating, Inc., 321 Wisconsin Drive, New Richmond, WI 54017-2614, 715-246-2660 • Fax: 715-246-2676, carol@countrysideph.com

Farewell But Not Goodbye

INSIDE 11 Federated Insurance Update: The Unpleasant Side of Cyberspace

16 Growing PHCC – Let’s Make Membership Inclusive

26 Autumn Plumbing Seminars 28 Wisconsin Housing Data 30 News Briefs

First Supply Opens First Milwaukee-Area Kohler Signature Store Hankscraft Earns NSF International Certification for Select Bluefilters Models Millennials Outspend Others on Kitchen and Bath Remodels NOAA Launches America’s First National Water Forecast Model 2016 IAQ Standard Published by ASHRAE New Home Sales Climb to Highest Level Since October 2007

Scholarship Applications Available Planning for Connect 2017 in Milwaukee Scope Statement for Code Advisory Committee Bylaw Updates Create New Leadership Opportunities Partnering with NATE Call for Input – Apprenticeship Advisory Committee

34 MEMBER NEWS

Immediate Past President: Keith Schedler (Zone #5), Don’s Plumbing Service, Inc., 1003 Clifton Street, Tomah, WI 54660, 608-372-4219 • Fax: 608-372-2303, keithschedler@centurytel.net Directors: Dale Arndt (Zone #4), Arndt & Son Plumbing, P.O. Box 70, Brooklyn, WI 53521, 608-455-6392 • Fax: 608-455-2113, arndtplumbing@frontier.net Dan Callies (Zone #1), Oak Creek Plumbing, 640 E. Ryan Road, Oak Creek, WI 53154, 414-762-4060 • Fax: 414-762-3440, danc@oakcreekplumbing.com

Fred Gardner (Zone #9), Badger State Plumbing, 2507 Fortune Drive, Eau Claire, WI 54703-3898, 715-874-7777 • Fax: 715-874-7778, fred@badgerstateinc.com Jeffrey Kuhn (Zone #1), S&K Pump & Plumbing, Inc., 20880 W. Enterprise Avenue, Brookfield, WI 53045, 262-782-7190 Fax: 262-782-9642, jeff@snkpump.com

Cal Watters (Zone #6), Watters Plumbing, 1303 Midway Road, P.O. Box 118, Menasha, WI 54952, 920-733-8125 • Fax: 920-733-2713, cwatters@wattersplumbing.net Industry Partner Reps: Jon Hirsch, Auer Steel & Heating Supply, 2935 W. Silver Spring Drive, Milwaukee, WI 53209, 414-349-0019, jon.hirsch@auersteel.com

Master Plumbers/Heating & Cooling Contractors of Wisconsin Rob Spence, Rundle-Spence, 2800 Industrial Drive, Madison, WI

6 Advertiser Index/Calendar of Events 3 7 Wisconsin Code Book & POWTS 3

14

PHCC Wisconsin Association P.O. Box 833 • Germantown, WI 53022 888-782-6815 • Fax: 888-287-4116 mail@phcc-wi.org

President/Treasurer: Greg Jones (Zone #4), Dave Jones, Inc., 2225 Kilgust Road, Madison, WI 53713, 608-222-8490 • Fax: 608-222-8503, gjones@davejonesinc.com

8 Executive Director’s Report

38 Membership Application

2016/17 BOARD OF DIRECTORS PHCC WISCONSIN ASSOCIATION Master Plumbers/Heating & Cooling Contractors of Wisconsin

53713, 608-222-0636, robs@rundle-spence.com

Executive Director: Jeff Beiriger, P.O. Box 833, Germantown, WI 53022, 888-782-6815 • Fax: 888-287-4116, jeff@assocmgmtservices.com

18 The Wisconsin P-H-C Contractor is published four times a year for the Wisconsin Association of Plumbing-Heating-Cooling Contractors

Senior Editor - Jeff Beiriger Advertising and Editorial Office:

Ron Sonntag Public Relations

22 4

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9406 N. 107th Street Milwaukee, WI 53224 p | 800.969.0200 f | 414.354.5317 | www.rspr.com

Master Plumbers/Heating & Cooling Contractors of Wisconsin

Advertising Inquiries: Patty Johnson, Ron Sonntag Public Relations, (800) 969-0200, ext.

103, E-mail: patty@rspr.com. Editorial Submissions: Cynthia Marsh, Ron Sonntag Public Relations, (800) 969-0200, ext. 104, E-mail: cynthia@rspr.com.

FALL 2016

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BY GREG JONES

ENHANCED SERVICES TO BENEFIT YOUR BUSINESS

GREG JONES

CEO and owner of Dave Jones, Inc. He can be reached at (608) 222-8490 or gjones@davejonesinc.com

6

D

id you know that PHCC has enhanced service groups aimed at specific types of businesses within our industry?

Would it benefit you to network and learn from the best of the best – whether that be with others in service, new construction, or both? That’s exactly what PHCC does by offering enhanced memberships through two affiliated organizations, Quality Service Contractors (QSC) and Construction Contractors Alliance (CCA).

QSC serves an elite group of PHCC plumbing and HVAC service and repair contractors and industry supplier partners.

They offer members training and education, networking, business management resources, and business coaching services that result in superior customer service and satisfaction and that improve business efficiency and effectiveness.

Jeff Kuhn is a long-time PHCC member who has served PHCC-WI as President a few years back and as the National Zone Director these past three years. I recently asked Jeff to tell me what QSC means to him. “If you are a service contractor, you can’t imagine the benefits that await you. When you join QSC, all of the ego stuff is left at the door. If you have a question, send it on the “Q-list” (a service where your questions are answered by other QSC members who have experience with the issue) and you will receive answers from all over the country.” Jeff has benefited so much from QSC that recently he agreed to take on the role as Chairman of the QSC Board of Trustees.

CCA provides contractors with a means to find solutions to the many issues new construction contractors face. CCA serves PHCC’s plumbing and mechanical contractors specializing in residential, industrial, commercial, and institutional new construction. One of the CCA members that I have met is Greg Kozan from Ridgeway Plumbing in Florida. When asked about CCA, Greg said, “We come back inspired after each CCA meeting. It’s overload each time. Whether the topic was tool tracking, leadership or productivity, I’ve learned some great ways to improve my business through the education and networking that is offered.”

I have had the honor of attending conferences with both QSC and CCA. Each

The Wisconsin P-H-C Contractor

CCA provides contractors with a means to find solutions to the many issues new construction contractors face. time I have returned with new ideas and a sense of motivation to make our business better. Without a doubt, the benefits that I have received from these organizations heavily outweigh the costs of being a part of it. Even if you are attending for the first time, you can feel the warmth and support of the group. There is no sense of competition; instead everyone is eager to help each other make their businesses the best they can be.

Combined, the members of these groups have thousands of years of experience in exactly what you’re doing. Why try to reinvent the wheel? This is an all-access pass to learn from their mistakes and their successes. This will save you time, money, and provide you the peace of mind that you’re not alone. Like they say, “It’s not what you know, it’s who you know.” It’s about having access to people with the information you need, right at your fingertips.

If you would like to learn more about either of these fine organizations, please feel free to contact me or you can visit www.phccweb. org and click on the “About PHCC” tab.

FALL 2016

Aquatechnik PP-RCT Fusion Pipe Introducing Aquatechnik® – the white PP-RCT 125 pipe with distinctive stripes of red (hot water pipe), blue (cold water) and grey (mechanical). Plus, we have a violet pipe for rainwater collection.

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First Supply is an authorized regional distributor of Aquatechnik. To learn more about this proven and reliable PP-RCT fusion pipe and fittings, contact your local First Supply representative today!

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Executive Director's

REPORT JEFF BEIRIGER

BY JEFF BEIRIGER

WHAT DO YOU WANT TO BE WHEN YOU GROW UP? Not long ago, I was sitting in an elementary school “graduation” program that featured a video montage of each of the students who were soon to be off to middle school. Up on the screen, along with the photo of each student, were the answers to a few questions including this one: What do you want to be when you grow up?

Were you ever asked that question? What do you want to be when you grow up?

I was, and my answer was that I wanted to do what my dad was doing. It was, after all, what I knew best, even if I didn’t really know what he did. He worked for the railroad – that I knew – and I knew he was some sort of a supervisor, but that’s about it.

If my answer was naïve, it was, at a minimum, an affirmation that my dad’s work was meaningful. The railroads moved products across America, and that was a very good thing. Whether I worked with my hands or my head, it was my heart that controlled me. What I did mattered to me because the work I would be doing mattered to everyone else.

Where I came from, there was as much pride in working in a factory or on a construction site as there was being a doctor or lawyer, so there was no shame in announcing to my classmates that, ‘I want to work for the railroad.’

It seems as though every other student at the elementary school graduation wanted to be a video game designer. And why not? If you like playing video games, why not get paid to play video games? Well, at least to create them. Personally, I have my doubts as to how many of these kids really were interested in a life of writing code for programs or apps.

And what of the other half of the students?

There were some professional athletes, a police officer and even a dentist. Plumbers?

HVAC technicians? Sadly, not a one….

I guess I’d like to ask the students some different questions: 8

The Wisconsin P-H-C Contractor

Your work matters and should be a source of great pride. Every community in Wisconsin and across this nation is better because of the work you do.

If you could only have one of these for the next year, which would you choose, plumbing or video games?

If you were buying a new home and had to choose between a way to heat and cool it or a really fast Internet connection, which would you choose?

Yes, they’re leading questions, but I think we’ve forgotten sometimes just how important things like plumbing and HVAC are to our way of life. It’s true that plumbing has saved more lives than modern medicine and it’s just as true that many regions of our nation owe their economic development to comfort heating and cooling. Even in more temperate parts of the country, productivity is way higher because of the indoor comforts we enjoy in summer and winter.

Your work matters and should be a source of great pride. Every community in Wisconsin and across this nation is better because of the work you do. Sure, the work of our industry is found in the basement, in a mechanical room, and behind the wall, but being out of sight is no reason for us to be out of mind.

I know things have changed and that they will keep on changing, but I still believe that there are some constants too, and that some things never go out of style – like the value of meaningful work and the pride that comes with a job well done.

For all you do, thank you….

FALL 2016

Zone Director's

REPORT

BY JEFF KUHN

FAREWELL BUT NOT GOODBYE

Jeff Kuhn

President of S&K Pump & Plumbing, Inc., Brookfield.

He can be reached at (262) 782-7190 or jeff@snkpump.com.

We all are facing workforce issues and without stepping up to meet the challenge we’ll be looking for help that simply isn’t there.

10

Where has the time gone? As my three years as the PHCC Zone 3 Representative near its end, I would like to thank you for your support and be one of the first to welcome Jeff Berndt from Iowa who will be my replacement. If all goes as planned, Jeff will be sworn in at Connect 2016 which is being held in San Antonio Oct. 19, 20, and 21.

If you haven’t signed up yet for Connect 2016, please do! We have a great program ready for you.

Recently, the PHCC National President and Executive Vice President were in Milwaukee as they begin the planning process for the Connect 2017. If you haven’t heard, the national convention is coming to Wisconsin, so this is a great chance to see – up close – everything that the National has to offer. I know PHCC Wisconsin is planning on having events at Connect 2017 too, and we’re looking forward to some great support from the manufacturers and wholesalers in our state.

During their visit, we also discussed the new, five-year strategic plan for PHCC National. This is the beginning of a new and exciting era characterized by a new “Culture of Growth” that, in time, will prove to contractors that if you are not a member of PHCC, you will be on the outside looking in.

Your customers will be asking if you are a member because they will expect the best.

I am pleased to say that my experience with the team that is in place at PHCC National is a great, forward-thinking group and that there is leadership at every level – from National President Chip Greene, Executive Vice President Michael Copp, to the National staff, to the State and Local executives in Wisconsin and across the country. We have a lot to be proud of in our long history, but I’ve felt the momentum that is building as we create our future.

PHCC National is the “go to” group on Capitol Hill for issues affecting our industry. With the leadership of Mark Riso and Chuck White, we are no longer going to legislators with our message – though we certainly still do – but legislators are coming to us! They are seeing the advantage in consulting with the professionals in the plumbing and HVAC industry. This is not a quick and easy strategy for advocacy. It’s a strategy that takes time and dedication on the part of our staff and I send kudos to them all. They’ve done more than great work, they’ve taught us – people like you and me – that our voices matter and how we can engage our legislators.

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We all are facing workforce issues and without stepping up to meet the challenge we’ll be looking for help that simply isn’t there.

PHCC is making this problem a priority goal for the future. We can compete successfully for the available workforce, but we need to tell our story. PHCC is helping us to do just that.

In an era when everyone wants things their way, the one-size-fits-all approach of many associations has been replaced by one that allows members to seek specialization too. If you want that, PHCC has it! Whether it’s CCA (Construction Contractors Alliance) or QSC (Quality Service Contractors) or UAC (Union Affiliated Contractors), PHCC National has an enhanced service group to meet your specific needs.

Three years ago, I was thrilled to accept this opportunity to serve PHCC National. As I leave, I find myself even more energized. I’ve learned so much about this organization and the many things it does. It has a great history and a great future. I invite you to be a part of it!

As for my future, I haven’t had enough of all of this just yet. I got involved with the Quality Service Contractors group a few years back and found it to be such a great investment of money that I started to invest my time. I attended meetings, became a trustee, and not too long ago accepted the opportunity to serve as chairman of that group. Between that and other committees, it’s my sincere hope that our paths will continue to cross in the years ahead.

Thank you for the opportunity to serve. I wish you nothing but success in the future.

Jeff Kuhn PHCC Zone 3 Director

FALL 2016

Federated Insurance THE UNPLEASANT SIDE OF CYBERSPACE

The Internet connects businesses of all sizes to data networks and computer systems around the world. It also exposes companies to hackers, viruses, and other computer attacks. And, let’s face it, there is no such thing as perfect computer security. Whether by hacker, glitch or employee error, many businesses will experience a data breach incident at some point. Knowing a breach is practically inevitable, and the recovery cost potentially devastating from a financial, public image, and regulatory enforcement standpoint, how does a business owner protect his or her organization?

A few years back, Hartford Steam Boiler Inspection and Insurance Company (HSB) teamed up with The Ponemon Institute to conduct a study of small businesses and the impact of data breaches. Their findings are eye-opening and informative, and can serve to inspire business owners everywhere to take steps to protect their valuable data.

Fifty-five percent of small companies have experienced at least one data breach: 53 percent have experienced multiple breaches.

Only a third of small businesses notified people that their personal information had been compromised, even though 47 states require notification.

Nearly three-fourths of companies that experienced a breach were not able to fully restore their company’s computer data.

Their research also revealed the three most likely causes of data breaches. More than half were due to employee mistakes. Forty-two percent involved lost or stolen hardware (laptops, smartphones, tablets, and storage media such as USBs and back-up drives). And, more than a third were a result of procedural inadequacies.

But the breaches aren’t caused only by internal errors.

There is also a significant exposure when exchanging information with outside entities: Eighty-five percent of businesses share customer and employee data with third parties, such as those providing services for billing, payroll, employee benefits, and information technology. Most do not have contracts that require third parties to cover all the costs associated with a data breach.

As cyber crimes get more sophisticated, your defense against them needs to keep pace. Federated Insurance can help you learn ways to minimize the risk of a breach, and, if you are not a Federated client, you also have access to a seven step cyber security plan through Federated’s Shield Network®. To learn more, visit www.federatedinsurance. com.

Article courtesy of Federated Insurance. This article is intended to provide general information and recommendations regarding risk prevention only. There is no guarantee that following these guidelines will result in reduced losses or eliminate any risks. This information may be subject to regulations and restrictions in your state and should FALL 2016

UPDATE

not be considered legal advice. Qualified counsel should be sought regarding questions specific to your circumstances and applicable state laws. ©2016 Federated Mutual Insurance Company.

The Wisconsin P-H-C Contractor

11

START

WITH A PART.

12

The Wisconsin P-H-C Contractor

FALL 2016

End

WITH A SoluTIon. Rundle-Spence is more than a parts supplier. We’re engineers and designers with decades of experience solving problems cost effectively.

Hydronics, Solar and Geothermal

An Extensive Fabrication Shop

Custom Engineering Services

A Rich History of Quality and Service

Whether you need help troubleshooting an existing system or tackling a new project – residential or commercial – we’ll provide complete system specification drawings, perform heat loss calculations and assist with state plan approvals and RES/COMchecks.

We design, engineer and fabricate high-quality, cost-effective solutions for a wide range of industries.

We’re ready, willing and more than able to take on any unique fabrication or assembly project that you have – large or small.

Rundle-Spence is the only wholesaler in the area with an extensively equipped and staffed fabrication shop.

That means our experienced team can expertly guide your custom part and piping assembly projects through engineering to full fabrication.

Rundle-Spence was founded in 1871 as a plumbing supply manufacturer. That background is apparent in the high-quality work we do today: we like to build things and we relish a challenge. What’s more, we still put our customers first.

rundle-spence.com | Milwaukee (800) 783-6060 | Madison (800) 783-7373 | Fond du Lac (855) 329-2800 The Wisconsin P-H-C Contractor FALL 2016

13

By Cynthia Marsh

Plumbing apprenticeship instructor and WI-PHCC member Randy Lorge again “co-headed” Team USA for the Community Plumbing Challenge (CPC) 2016 – this time to Diepsloot, South Africa. Lorge and Team USA were in India for the 2015 CPC. Diepsloot is just north of prosperous Johannesburg, but the contrasts are great. Diepsloot can be best described as a congregation of wooden and corrugated iron shacks, and most residents live without running water, sanitation, and electricity. “The toilet facilities and running water they do have is something hard to imagine,” Lorge said.

Diepsloot has an estimated population of 700,000 people who live in 13 districts over a 5 square mile radius.

District 1, where Team USA carried out their work, consists of 700 stalls, shared by approximately 70,000 people. Each one is used up to 250 to 300 times a day – and only accessible from 5:30 a.m. to 10 p.m. Outside of the toilet stalls are sinks where residents draw water to wash clothes and take back to their huts to sponge bathe.

The CPC is organized by IAPMO in collaboration with the World Plumbing Council. The four teams – USA, Australia, India, and South Africa – were each responsible for one 14

The Wisconsin P-H-C Contractor

freestyle toilet design. They were tasked to design and install new sanitation systems for the existing toilet and wash facilities, taking into account the current infrastructure (toilets, taps, and drains), community sanitation needs, and maintenance. Each unit needed to include a flush toilet with connection to the main sewer; a door with a privacy lock that can be unlocked from the outside in case of emergency and padlocked at night; and the handwashing facility outside the units must fill a five-gallon water container and allow residents to wash clothes.

“Where we were, half of the toilets weren’t working,” Lorge said. “There was raw sewage running down the street and we had to walk over dead rats to get to where we were going. It was something none of us had ever had to work in. But we looked at it and said, ok this is the way it is; let’s get the job done. All the teams jumped in and nobody hesitated.”

Lorge explained the existing toilets are basically concrete port-a-potties that have a direct connection to FALL 2016

sewer and water. The parts are so poorly made that they frequently break down.

“We were asked to come up with a more sustainable design for plumbing and, because crime tends to be high there with the poverty and overcrowding, a design for a secure locking door,” Lorge said.

“Our design for one toilet unit had to be completed before we arrived and when we got there, the organizers chose the best of each team’s design and made one collaborative unit. Of the eight toilets, half were a combo of the teams putting our ideas together.”

Each team also installed water meters and data loggers to monitor water usage for both the cisterns and water collection point. Based on the data collected, the performance of the units will be showcased at the World Plumbing Conference in Cape Town, S.A., Sept. 15 and 16. IAPMO has invited Lorge to attend the Conference to represent the USA. “It was hard to leave because we barely scratched the surface,” Lorge said. “We replaced eight toilets out of 700.

You can watch as many Discovery Channel episodes as you want, but until you are there, it’s unimaginable. The types of conditions they live in are the only conditions they know.

“How did we get to 2016 and still have people living like this? That is what is so positive about the CPC – contributing to improvements where communities are still lacking basic sanitation and safe drinking water.”

Sponsored by the PHCC Educational Foundation, Team USA members were: Lila Johnson - Civil Engineer, MSOE; Kerri Nevala, Fox Valley Technical College; Peter Sedlar - FVTC Plumbing Apprentice, K. Kelly Inc., Green Bay; and Tyler Zeh - FVTC Plumbing Apprentice, August Winters and Sons, Appleton. Lorge was joined by Douglas Nelson, MSOE, and his wife, Martha Nelson, as co-coaches.

FALL 2016

The Wisconsin P-H-C Contractor

15

GROWING PHCC - LET’S MAKE MEMBERSHIP INCLUSIVE

W

hile I was on vacation in the Outer Banks, N.C., I noticed that unlike some of the much morefrequented beach destinations, the northern Outer Banks felt more intimate and less crowded. I began to think about why that was and realized that access to where we stayed in Corolla, N.C., was limited to a ferry to the north and by bridge with several additional access points available further south.

I felt that if you really wanted to vacation in Corolla, then you really had to make an effort to get there. I also noticed that there were not many centralized entertainment centers like boardwalks, carnival rides, fast food joints and other typical touristy offerings you might see at more ubiquitous GROWING STRONG FOR seashore destinations. The amenities felt MORE THAN A CENTURY designed more for local residents and those • Since 1883, PHCC has been the purists only interested in a beach-centric leader in promotion, advancement, education vacation with few distractions for their and training of plumbing and families. So, you might be asking, “Michael, HVACR contractors and their what’s your point?” Thanks for asking. employees.

When I think about the PHCC Federation • PHCC has more than 3,000 and its access to benefits, products, and open and union shop services, we are very much like the contractor members who northern Outer Banks. Dare I say, we successfully manage have few access points to benefits mostly businesses in residential appreciated by PHCC purists. service and new [In a previous message] I indicated that construction, commercial and industrial markets. “the new PHCC strategic plan includes an aggressive goal to double our membership • PHCC offers its members the opportunity to join a over the next five years,” and that “we need community that is designed to roll up our sleeves and get creative … and specifically for them. look at hybrid membership models that deliver customizable experiences to a wider range of constituents.” We need to build “communities” that foster long-lasting relationships with our current and future members. This requires an emotional and intellectual bond between the membership and PHCC. To this end, there is a book I recommend to help us think creatively, “The End of Membership As We Know It; Building the Fortune-Flipping, Must-Have Association of the Next Century,” written by Sarah L. Sladek and published by ASAE: The Center for Association Leadership (2011).

We’ll be setting up a discussion group on the community network, so watch for the invite. If you’d like to purchase a copy of the book, we can get them at the member price and then we can discuss ideas that potentially could be used to transform our membership model to that of a more progressive and sustaining archetype within the greater Federation.

Interesting ideas include single payment of a life-long membership, “tiered” or an a la carte membership, special interest groups, career transition membership, and other very scary models. The point is that we need to be brave enough to openly explore an alignment with the value expectations of contemporary users, which in some cases flies in the face of traditional association purists. We also can’t make it hard for members to access that value locally.

Exclusivity is a great concept for growing sponsorships, but not so good for growing the right membership.

new PHCC strategic plan includes an aggressive goal to double our membership over the next five years

Michael R. Copp is the Executive Vice President of PHCC National. This article was reprinted with permission from PHCC – National.

16

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Larson .....................................................................................(715) 834-5096 Goodin Company ......................................................................(715) 830-1800 JH Larson.........................................................................................(715) 834-3111 Fond du Lac Mid-State Supply .......................................................................(920) 929-9540 Hayward JH Larson.........................................................................................(715) 934-2707 Hudson Ferguson Enterprises ...............................................................(715) 386-5525 JH Larson.........................................................................................(715) 386-2388 Janesville Connors Supply ..........................................................................(608) 757-1300 La Crosse Ferguson Enterprises ...............................................................(608) 788-3700 First Supply ....................................................................................(608) 784-3839 G.A. Larson .....................................................................................(608) 785-7050 Milwaukee Stove........................................................................(608) 781-6400 DSG.....................................................................................................(608) 781-2000 Madison Able Distributing........................................................................(608) 836-4500 Auer Steel .......................................................................................(608) 442-3990 Design Air .......................................................................................(608) 223-0647 DSG.....................................................................................................(608) 838-2548 First Supply ....................................................................................(608) 222-7799 G.A. Larson .....................................................................................(608) 221-3301 Milwaukee Stove........................................................................(608) 271-8151 Rundle Spence ............................................................................(608) 222-0636 Temperature Systems Inc. ....................................................(608) 271-7500 Milwaukee Able Distributing........................................................................(262) 896-1900 Auer Steel .......................................................................................(414) 463-1234 Design Air .......................................................................................(414) 258-7444 Design Air .......................................................................................(414) 276-6877 First Supply ....................................................................................(414) 764-6900 Gustave A. Larson ......................................................................(262) 782-2301 Milwaukee Stove........................................................................(414) 258-0300 Rundle Spence ............................................................................(262) 782-3000 Neenah Auer Steel .......................................................................................(920) 886-3222 New Berlin DSG.....................................................................................................(262) 784-6234 Oshkosh/Wautoma A.I. McDermott ............................................................................(920) 231-7080 Mid-State Supply .......................................................................(920) 787-3331 Plover/Wisconsin Rapids First Supply ....................................................................................(715) 254-0371 Ferguson Enterprises ...............................................................(715) 421-5300 DSG.....................................................................................................(715) 341-5560 Rhinelander/Wausau Able Distributing........................................................................(715) 842-2256 A.I. McDermott ............................................................................(715) 359-6575 AVFCO Supply ..............................................................................(715) 272-1055 Design Air .......................................................................................(715) 842-8544 Ferguson Enterprises ...............................................................(715) 675-3384 First Supply ....................................................................................(715) 362-7824 Gustave A. Larson ......................................................................(715) 355-5414 Heating Design ...........................................................................(715) 359-6191 Rice Lake DSG.....................................................................................................(715) 234-4370 Sheboygan Honold & LaPage .......................................................................(920) 457-7755 Superior Ferguson Enterprises ...............................................................(715) 392-2202 Upper Peninsula - MI Design Air .......................................................................................(906) 776-0810 Ferguson Enterprises ...............................................................(906) 786-6180 Northern Heating Supply .....................................................(906) 786-5252 Prime Supply ................................................................................(906) 779-5522 Wittock Supply ............................................................................(906) 774-4455 Wittock Supply ............................................................................(906) 786-5077 Wittock Supply ............................................................................(906) 228-9570 Upper Peninsula - WI Fluid Handling, Inc. ...................................................................(414) 358-2646

FALL 2016

III

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FALL 2016

The Wisconsin P-H-C Contractor

17

EMBRACING THE SMART HOME The year 2020 has long been a benchmark for when the smart home will finally be mainstream, but according to the results of the Smart Home Marketplace Survey from Coldwell Banker Real Estate, that time may come sooner than originally thought.

Photo courtesy of Nest Labs, Inc.

The survey polled more than 4,000 U.S. adults in advance of CES 2016, revealing that homeowners are willing to pay extra to “smart stage” their home as well as what Americans think when they hear “smart home.”

• Almost half (45 percent) of all Americans either own smart home technology or plan to invest in it in 2016.

• Of people who do not currently have smart home technology, more than one in four (27 percent) say they will incorporate it into their lives in 2016.

• Seventy (70) percent of people with smart home technology said buying their first smart home product made them more likely to buy another one.

• Of millennial homeowners (ages 18 to 34) who would purchase or install smart home products, 72 percent would pay $1,500 or more and 44 percent would pay $3,000 or more to make their home smart.

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The Wisconsin P-H-C Contractor

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Most Americans think a home can be considered “smart” if it has smart security, temperature, lighting and safety • When asked about what needs to be in a home for it to be considered “smart,” the top choices were security (e.g., locks and alarm systems - 63 percent), temperature (e.g., thermostats and fans - 63 percent), lighting (e.g., light bulbs and lighting systems - 58 percent) and safety (e.g., fire/carbon monoxide detectors and nightlights - 56 percent).

• The most popular type of smart home technology that people already own is smart entertainment, such as smart TVs and speaker systems. The next most popular types of smart home technology that people currently have installed in their home include smart security (31 percent) and smart temperature (30 percent).

Home buyers are most attracted to smart security and temperature.

• When asked about the types of pre-installed smart home technology that would be most appealing if they were buying a home, most Americans said smart security (58 percent) and temperature (56 percent).

Adoption of smart and communicating thermostats continues to grow as consumers become more aware of the value the devices can deliver and as more companies continue to enter the space.

Leading players have capitalized on the market by offering

their products through a variety of distribution channels and partnerships, while also deploying successful marketing campaigns and following a strong vision for the future of the industry.

According to a new Leaderboard report from Navigant Research, ecobee is the leading smart thermostat vendor, with Nest Labs and Honeywell following closely.

“More value is being realized from smart thermostats because they enable customers to save money on energy bills, help utilities meet regulatory requirements, and play a role in the connected home,” says Paige Leuschner, research analyst with Navigant Research. “Companies leading this market, like ecobee and Nest, have created products and services that set the standard for thermostats with the ability to improve energy efficiency and engage consumers.”

The smart thermostat market continues to expand as telecommunications and broadband service providers, home security companies, and HVAC installers race to incorporate advanced thermostats into their solutions.

According to the report, software and services – especially those that are cloud-based – have also become a vital part of more intelligent thermostats, providing data-based insights and opportunities that increase the value of the devices.

Continued on page 20 >>

Viega Press Systems Making Perfect Connections Since 1989

The global leader in plumbing, heating & pipe joining systems.

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FALL 2016

The Wisconsin P-H-C Contractor

19

SMART PRODUCTS SHOWCASE Leak Gopher

GoControl® Smart Flow Detector

Leak Gopher comes with a National Sanitation Foundation-approved electronic water valve that can be installed on any water line to allow water to be turned on or off at the touch of a button. Leak Gopher can protect the home or turn on the water for the flowers during vacations.

GoControl® Smart Flow Detector provides wholehouse monitoring of water flow to alert users of potentially catastrophic water leaks like slab leaks, cracked pipes or a chronically running faucet.

Fibaro Flood Sensor

FortrezZ water sensor and valve

Fibaro Flood Sensor with unique telescoping probes detects unwanted water on uneven surfaces.

FortrezZ water sensor and valve detects water leaks and automatically shuts off water flow to minimize damage. The devices can be integrated into Nexia Automations that send an automatic alert to users when a leak is detected or when water is shut off.

Ecodyne Water Systems Ecodyne Water Systems (a licensed Whirlpool Brand partner) introduces a 46,000-Grain Water Softener with WiFi Smart Technology to monitor and manage water treatment and water usage via a smartphone, tablet or computer from anywhere inside or outside the home.

Rheem’s EcoNet™ Smart Home System

Rinnai’s WiFi module Rinnai’s WiFi module, app and push buttons connect to its gas tankless units, new and existing. The push buttons offer convenience by syncing with the recirculation system to provide on-demand hot water at the push of a button. The wireless connectivity also benefits dealers by serving as a remote diagnostics tool, saving time with maintenance alerts.

Rheem’s EcoNet™ Smart Home System allows homeowners to control and manage a home’s heating, cooling and water heating products from anywhere via a mobile app or through a wall-mounted Control Center. EcoNet notifies homeowners when their equipment needs service and provides up-to-the-minute diagnostics – including leak detection – in clear language.

The American Standard Gold 824 Smart Control The American Standard Gold 824 Smart Control, a whole-home automation hub, features an in-home, wall-mounted unit with a 4-1/3-inch high definition color touch screen that can program seven days of temperatures with up to six schedules per day. It also includes a five-day weather forecast and weather radar display, an indoor relative humidity display, as well as a heating, ventilation and air conditioning (HVAC) filter, maintenance and humidifier reminders.

20

The Wisconsin P-H-C Contractor

FALL 2016

Honeywell: second generation Lyric Round™ WiFi Thermostat

The Nest Learning Thermostat

Honeywell: second generation Lyric Round™ WiFi Thermostat, now compatible with Apple HomeKit™ for control using Siri®, and easy integration into other current smart home ecosystems. The second generation Lyric™ thermostat features the same sleek aesthetic and intuitive features of the original, such as location-based, customized temperature control. It also can be easily integrated into other current ecosystems, such as Samsung® SmartThings™, and can link to many home products and services that customers choose, including those from Honeywell, such as the Lyric security system.

The Nest Learning Thermostat, 3rd generation, has a slimmer profile, a high-resolution screen that’s 40 percent larger, and an updated user interface to make it easier to read temperatures, alerts and messages. New software features include Farsight, which automatically displays the target temperature or time when it senses movement in the room, and Furnace Heads-Up, which uses diagnostics to give advance notice about possible problems with a customer’s heating system.

Trane residential HVAC Trane residential HVAC offers: Nexia™ Diagnostics, a remote HVAC system monitoring capability.

System alerts, from routine maintenance needs to system malfunctions, are automatically sent to the dealer, who can then proactively notify customers and address the issue immediately. Access to system performance data and alerts helps ensure sending the right technician with the right parts. Some issues may be resolved remotely, eliminating the need for an on-site service call.

Please make it home safe today.

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You deserve valuable risk management tools— like the Seven Minute Safety Trainer® mobile application—designed to help you and your employees make it home safe today.

Federated provides clients with access to services offered through wholly independent third parties. Neither Federated nor its employees provide legal advice.

FALL 2016

Federated Mutual Insurance Company Federated Service Insurance Company* Federated Life Insurance Company Owatonna, Minnesota 55060 507.455.5200 | www.federatedinsurance.com

16.07 Ed Date. 11/15 *Not licensed in the states of NH, NJ, and VT. © 2016 Federated Insurance

The Wisconsin P-H-C Contractor

21

NEW WISCONSIN SALES TAX EXEMPTION PROVIDES COST SAVING OPPORTUNITIES FOR CONTRACTORS CONSTRUCTING FACILITIES FOR SELECTED NON-PROFIT AND GOVERNMENTAL ENTITIES

Wisconsin recently enacted a law that creates a sales and use tax exemption for a contractor’s or subcontractor’s purchase of building materials (e.g., bricks, lumber, plumbing piping and fixtures, HVAC equipment, etc.) to be incorporated into a facility owned by a qualifying tax-exempt entity.1 The exemption only applies to contracts entered into on or after Jan. 1, 2016.

Prior to this law change, for a purchase of building materials to qualify for exemption, the tax-exempt entity was required to purchase the property directly instead of having the contractor make the purchase. This has been an issue for contractors because tax-exempt entities often back off of making direct purchases of construction materials, for various reasons, including concerns regarding liability for defective materials or for personal injuries or property damage that may occur during the delivery or installation of the materials. Thus, contractors often have been faced with incurring tax on the purchase of the materials, which makes their bid less competitive and/or reduces their profit margin.

Contractors could structure the transaction in such a way that the purchase of the materials is tax-free and the exempt entity’s concerns are minimized or eliminated, but that often involves significant effort, expense and/or elevated taxrelated risks for the contractor.

The new exemption eliminates these concerns and efforts in certain situations. Further, contractors who appropriately

22

The Wisconsin P-H-C Contractor

modify their contracts and business practices to take advantage of this new exemption may be able to obtain a competitive edge when bidding for contracts and/or increase their profit margins. However, a contractor must pay careful attention to detail or risk incorrectly claiming the exemption and creating a sales and use tax liability exposure.

Qualifying Entities

The most important element of the new exemption could be that it does not apply to all non-profit and governmental entities. The exemption is available only for purchases involving a construction contract with one of the following types of entities: • A county, city, village, town, or public school district located in Wisconsin; • Certain city-county hospitals, sewerage commissions, metropolitan sewerage districts, or joint local water authorities; • A non-profit organization that holds a Certificate of Exempt Status (“CES”) number issued by the Wisconsin Department of Revenue (the “WDOR”); or • A non-Wisconsin non-profit organization organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals (except certain hospital service insurance corporations), no part of the net income of which inures to the benefit of any private stockholder, shareholder, member, or corporation.

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The types of non-profit organizations that are qualifying entities under the exemption generally are those organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (“I.R.C.”). Entities exempt from federal income tax under other sections of the Internal Revenue Code, such as I.R.C. Sec. 501(c) (6) and I.R.C. Sec. 501(c)(7), generally are not qualifying entities under the exemption. Also, a Wisconsin organization described in I.R.C. Sec. 501(c)(3) should hold a Wisconsin CES number, but a non-Wisconsin organization otherwise qualifying under the exemption is not required to have a CES number.2 However, having a Wisconsin CES number alone is not necessarily sufficient for an entity to fall within the scope of the exemption. The entity also must be one of the types of entities in the above list. For example, the following entities are not qualifying entities for purposes of the exemption, even if they hold a CES number: • A non-Wisconsin county, city, village, town or public school district; • A Wisconsin or non-Wisconsin state government, or an agency thereof; • A Wisconsin or non-Wisconsin public college, university, or technical college; • Any other Wisconsin or non-Wisconsin state government unit, or any agency or instrumentality of one or more units of government, unless in the above list of qualifying entities; and • A federal governmental unit.

Thus, many entities one might otherwise assume would be qualifying entities for purposes of the exemption are not, such as the University of Wisconsin and the Milwaukee Area Technical College. Most fraternal, social, civic and labor organizations also are not qualifying entities.

Qualifying Types of Projects

Not all projects qualify for the exemption, even if the project is for a qualifying entity. To be exempt, the materials being purchased must become a component of a “facility” located in Wisconsin and owned by the qualifying entity.

“Facility” for this purpose is generally defined in the statutes to include a building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility.

It does not include a highway, street, or road. Thus, projects outside Wisconsin do not qualify for the exemption, nor do projects that will be used by a qualifying entity but that will be owned by a non-qualifying entity. Also, as noted, highway, street, and road projects do not qualify.

Type of Property that may be Purchased Tax-Exempt

Only purchases of tangible personal property that are subsequently incorporated into a qualifying facility are eligible for the exemption. Purchases of property to be used by a contractor in connection with a project but not transferred to the entity or not incorporated into a qualifying facility do not qualify. For example, construction tools or equipment, portable generators used to power construction tools or equipment, trailers, and portable toilets appear to not qualify for the exemption.

Continued on page 24 >>

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12/18/14 10:49 AM

The Wisconsin P-H-C Contractor

23

Effective Date

The exemption applies to contracts entered into on or after Jan. 1, 2016. Thus, materials purchased for a construction contract entered into prior to Jan. 1, 2016, do not qualify for the exemption, even if the materials are purchased after that date. Further, although not addressed in the governing statute, the WDOR appears to take the position that change orders do not affect the original contract date, which indicates that items purchased under a change order dated after Jan. 1, 2016, are not eligible for the exemption if the contract date for the overall project is prior to Jan. 1, 2016.

Documenting the Exemption

A contractor must address the following two categories of documentation in connection with claiming the exemption: (i) documentation to be provided to the seller of the property being purchased by the contractor; and (ii) documentation to be obtained by the contractor to confirm, and later support on audit, the purchases qualify for the exemption.

Regarding documentation to be provided to the seller of the property, the contractor should provide a properly completed Wisconsin sales tax exemption certificate. Given that the certificate form does not contain a “check box” specifically regarding the new exemption, the WDOR advises that the contractor choose the “other purchases exempted by law” option on Wisconsin Sales and Use Tax Exemption Certificate (Form WI S-211) and enter “exempt under sec. 77.54(9m), Wis. Stats.” (The WDOR may add a “check box” regarding the new exemption in a future version of the certificate.)

Regarding the documentation for the contractor’s files, the

general goal is for the contractor to obtain, and retain for audit purposes, documentation sufficient to prove each requirement of the exemption is satisfied. The specific documentation required to be obtained by the contractor will depend on the type of entity involved. If the entity is a qualifying Wisconsin non-profit organization, the contractor should obtain the entity’s Wisconsin CES number and retain the number in its files, along with the relevant contract, invoices, and any other documentation that may be necessary under the specific circumstances to prove the purchases were for the entity and the purchases otherwise qualified for exemption.

If the entity is a Wisconsin entity that is not required to hold a CES number, such as a municipality, the contractor is not required to obtain any particular documentation to prove the entity is a qualifying entity, but is still required to obtain and retain the documentation necessary (e.g., the contract and invoices) to prove the purchases were for that entity and

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The Wisconsin P-H-C Contractor

FALL 2016

the purchases otherwise qualify for the exemption.

If the project is for a non-Wisconsin non-profit organization, then the contractor must confirm the organization is a qualifying entity. This usually can be done by obtaining a copy of the organization’s I.R.C. Sec. 501(c)(3) exempt status determination letter. The contractor should retain that documentation in its files, along with the same type of other documentation (i.e., contract, invoices, etc.) required for projects involving Wisconsin entities.

The documentation requirements for a subcontractor are a bit more complicated, because the subcontractor is not directly contracting with the qualifying entity. In these circumstances, the WDOR advises a subcontractor to ensure it can identify the Wisconsin location, on a bill of sale or invoice to the general contractor, where it performed the real property construction activity and verify that the property became part of a facility in Wisconsin owned by a qualifying exempt entity. Subcontractors should be particularly careful to obtain sufficient documentation to demonstrate the entity was a qualifying entity and the contract was entered into on or after Jan. 1, 2016, since such documentation may not be readily available to the subcontractor and may be difficult to obtain later at the time of a tax audit.

Summary of Key Points

For a contractor’s or subcontractor’s purchases of property to be exempt from Wisconsin sales and use taxes under the new exemption, all of the following requirements must be satisfied: • The project must be for a qualifying entity;

FALL 2016

• The project must involve the construction of an eligible “facility” in Wisconsin owned by the qualifying entity; • The property purchased must be incorporated into the facility; and • The purchases must be made for a contract entered into on or after Jan. 1, 2016.

Additionally, the contractor or subcontractor must obtain and retain sufficient documentation to be able to prove under audit the purchases qualify for the exemption.

1 See Wis. Stat. § 77.54(9m).

2 CES refers to a “Certificate of Exempt Status” issued by the Wisconsin Department of Revenue.

About the Authors

Jim San Fillippo is a Senior Director, Art Oberst is a Managing Director, and David Winkler is a Senior Manager with BDO USA, LLP. Jim and Art are former state auditors with over 60 years of combined sales and use tax experience, including extensive experience working with contractors. David has over 25 years of sales and use tax experience in a variety of settings, including as an attorney at a major law firm, as the director of transaction taxes for a Fortune 500 corporation, and in public accounting. If you are under a sales and use tax audit, uncertain about your sales and use tax compliance, are interested in obtaining training for your team, or have a general sales and use tax question, please feel free to contact any of the authors. Jim San Fillippo may be reached at (414) 615-6774 or jsanfillippo@bdo.com, Art Oberst may be reached at (414) 287-1129 or aoberst@bdo.com, and David Winkler may be reached at (414) 272-4337 or dwinkler@bdo.com.

The Wisconsin P-H-C Contractor

25

Master Plumbers/Heating & Cooling Contractors of Wisconsin

TIME

SIGN UP TODAY!

PROGRAM SCHEDULE

CREDIT*

7:30 - 8:30 a.m.

Registration

8:00 - 9:00 a.m.

Product Displays

1.0 CE Credit

9:00 - 10:00 a.m.

Product Showcase & Safety Update

1.0 CE Credit

10:00 - 10:15 a.m.

Break & Product Displays

10:15 - 11:45 a.m.

Code: Combination Drain & Vent Systems

11:45 - 12:30 p.m.

Luncheon & Product Displays

12:30 - 2:00 p.m.

Code: Combination Drain & Vent Systems (Continued)

2:15 - 2:30 p.m.

Break & Product Displays

2:30 - 3:30 p.m.

Water Testing Requirements In Wisconsin

1.0 CE Credit

3:30 - 4:30 p.m.

Industry Update

1.0 CE Credit

4:30 p.m.

Door Prize Drawings

3.0 CE Credits

Don’t miss this great program and great chance to earn CE credits*!

About The Program/Instructors

Code is the foundation of everything we do in the plumbing industry. This year, PHCC-Wisconsin is beginning a series of code-related programs designed to get back to the basics of our trade. For this session, we will be focusing on Combination Drain & Vent Systems. Leading the discussion is Jim Davis, a Master Plumber and an experienced plumbing instructor. Jim has taught apprentices for 20+ years and has experience teaching continuing education programs for groups such as the Water Quality Association and the Madison Plumbing Inspectors. Additional programs include a discussion about Water Testing Requirements in Wisconsin presented by Mike Hanten of Clean Water Testing and an Industry Update by Jeff Beiriger of PHCC-Wisconsin. The program also features time to interact with vendors, our vendor showcase, and a brief safety presentation by Federated Insurance.

*Continuing Education Credits

Please note that the number of hours of approved continuing education may vary depending upon the credential you hold. MP and JP will receive 7.0 hours of credit for attending the entire day of program. For other credentials, contact the PHCC & MP/HC at (888) 782-6815 or mail@phcc-wi.org 26

The Wisconsin P-H-C Contractor

FALL 2016

Northwest Wisconsin Plumbing Seminar

Northern Wisconsin Plumbing Seminar

Friday, October 21, 2016

Friday, November 11, 2016

The Plaza Hotel & Suites 1202 Clairemont Ave. Eau Claire, WI 54701

Holiday Inn Hotel & Conference Center 1001 Amber Ave. Stevens Point, WI 54482

ATTENDEE REGISTRATION Registration Fee:

Location:

$55.00 per person for Member Companies & Employees. $80.00 per person for Non-Member Companies & Employees.

Includes full day of programs and meals Eau Claire

Stevens Point

Name__________________________________________________________________________________________ Name_______________________________________________________________________________________ Company __________________________________________________________________________________________ Address ____________________________________________________________________________________________ City, State, Zip ______________________________________________________________________________________ Phone, Fax __________________________________________________________________________________________ E-mail _____________________________________________________________________________________________

Check enclosed payable to PHCC-WI for $ __________ Pay by Visa or MasterCard by completing the information below.

Card Number __________________________________________________Exp. Date___________________________ Cardholder’s Name______________________________________________CVC #_______________________________ Cardholder’s Signature_______________________________________________________________________________ Billing Address______________________________________________________________________________________ ___________________________________________________________________________________________________

Mail your registration form with payment to: PHCC & MP/HC – Wisconsin Association P.O. Box 833 Germantown, WI 53022

Fax your registration form with credit card information to: (888) 287-4116 E-mail your registration form with credit card information to: jane@assocmgmtservices.com

Questions? Contact PHCC & MP/HC-Wisconsin Association at (888) 782-6815.

Please note that registration confirmations will NOT be sent.

FALL 2016

The Wisconsin P-H-C Contractor

27

WISCONSIN HOUSING DATA

MAY THRU JULY 2016 (Data for August not available at present time)

Single Family Dwelling Building Permits

NUMBER OF DWELLING UNITS

City Appleton Eau Claire Fond du Lac Green Bay Janesville/Beloit LaCrosse/Onalaska Madison MilwaukeeWaukeshaWest Allis Oshkosh-Neenah Racine Sheboygan Wausau

28

May June July May June July May June July May June July May June July May June July May June July May June July May June July May June July May June July May June July

The Wisconsin P-H-C Contractor

AVERAGE VALUE PER DWELLING UNIT

Units

Percent Change

Value ($)

Percent Change

46 48 35 37 38 43 7 10 4 72 67 62 23 32 6 23 20 16 158 148 120 141 158 127 23 26 17 14 16 14 2 1 1 11 11 11

12.2 54.8 -37.5 -26.0 18.8 10.3 133.3 150.0 300.0 10.8 11.7 14.8 21.1 300.0 -62.5 -23.3 11.1 -38.5 21.5 8.0 -16.1 46.9 32.8 -4.5 4.5 18.2 -37.0 16.7 166.7 -12.5 0.0 0.0 0.0 -8.3 0.0 -35.3

257,900 224,400 212,600 195,900 275,400 258,300 265,000 207,600 204,300 218,100 201,300 240,700 246,300 254,100 240,500 265,000 283,600 258,800 295,700 272,800 337,000 343,700 314,300 339,900 253,500 268,400 242,100 245,200 216,600 274,400 237,500 325,000 150,000 223,500 230,600 202,300

13.2 -4.6 -6.2 3.4 18.4 9.8 -16.8 20.7 21.6 -11.8 -12.2 15.8 1.0 7.9 1.3 17.6 -4.3 2.3 -1.6 -5.7 17.7 6.7 -8.6 16.9 4.8 8.2 1.5 -15.1 -8.8 -6.2 0.0 -7.1 0.0 16.0 11.3 16.5

from same time last year

from same time last year

FALL 2016

Condensate Neutralizers

NC-1 NeutraPal

Ideal for condensing boilers and furnaces operating on natural gas or propane NC-2 NeutraPal

Features and Benefits • Prevents acidic condensate from corroding drains and sewer systems

•

Neutralized condensate is more environmentally friendly

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Helps maintain a neutral environment for bacteria in septic systems

• • • • •

Low profile for near floor condensate drains Fast and easy installation NT25 has built-in overflow protection

NT25-P NeutraPump

NC models come with a Y-fitting

NT25 NeutraPro

Includes initial charge of Axiom’s LipHter media

represented by:

Hydronic System Cleaners and Inhibitors

(262) 781-2810

Boiler Combustion Side Cleaner Removes combustion residue from fire side of heat exchangers in stainless steel or aluminum condensing boilers. Provides energy savings by restoring heat transfer to original levels.

Before cleaning with: F9A and F9B

After

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CLEAN F9 A and F9 B come with aThe sprayer headP-H-C Contractor Wisconsin

29

News

BRIEFS

FIRST SUPPLY OPENS FIRST MILWAUKEE-AREA KOHLER SIGNATURE STORE

David Kohler, CEO, Kohler Co., Kathryn Poehling, COO, First Supply, Brea Lonze, Sales & Operations Manager, Kohler Signature Stores, Edina, Minn., and Joe Poehling, CEO, First Supply.

Kohler is expanding availability of its bath and kitchen products with the opening of the Kohler Signature Store by First Supply in Wauwatosa.

Located next to Mayfair Mall, the store will offer full design services for both kitchen and bath, including product selection, design development and project assistance. It also will feature fully functional vignettes and suites, including kitchen and bath products from Kohler, Robern, Kohler Surfaces tile and stone,

Water tight StructureS Storm Water Quality Vaults Retention Chambers Waste Water Tanks Large Septic Tanks Grease Interceptors Electric Vaults Valve Vaults

1-800-658-9045

info@crestprecastconcrete.com web - www.crestprecastconcrete.com Nationwide Delivery

30

The Wisconsin P-H-C Contractor

Kohler vanities, Kallista, Ann Sacks® tile and stone and cabinetry from Masterbrand Cabinets, Inc. “We provide a gracious service and unique experience that isn’t currently available in the marketplace for the Kohler brands. We offer our local customers the opportunity to see and touch the full line of Kohler products from Robern and Kallista to Ann Sacks and Kohler. We connect the interaction of the product experience and the design environment,” said Kathryn Poehling, chief operating officer for First Supply’s kitchen and bath division.

The Kohler Signature Store

by First Supply is located at 2525 Mayfair Road, #201, in Wauwatosa.

HANKSCRAFT EARNS NSF INTERNATIONAL CERTIFICATION FOR SELECT BLUEFILTERS MODELS

Hankscraft, Inc., Reedsburg, has earned certification to NSF/ANSI 58, an American National Standard for reverse osmosis filtration systems, for its Bluefilters models RO-6-BF and RO-6-BF-NF from global public health organization NSF International. The systems are now certified to remove lead and other contaminants from drinking water.

Hankscraft’s Bluefilters RO-6 Reverse Osmosis System has 6 stages of filtration, including a heavy-duty sediment pre-filter, activated carbon filter, combined sediment and activated carbon filter, an Americanmanufactured RO membrane filter, post RO activated carbon filter, and a mineralizing cartridge to replace essential minerals to improve taste. The system works using existing household water pressure and is able to remove impurities such as inorganic chemicals, algae and other common contaminants down to .0001 micron. It also effectively removes parasites such as Cyst, Cryptosporidium, Toxoplasma, Giardia, and Entamoeba.

The RO-6 is easy to install and fits conveniently under the sink for continuous clean water throughout the home.

FALL 2016

News

MILLENNIALS OUTSPEND OTHERS ON KITCHEN AND BATH REMODELS

BRIEFS

Millennials outspend other age groups when remodeling their kitchens and bathrooms, according to new research from the National Kitchen & Bath Association (NKBA). The research found that millennials spend an average of 17.7 percent more than the $19,155 typically invested in a kitchen remodel, and 42.3 percent more than the $11,364 normally allocated to remodel a bathroom.

The NKBA research study, “Understanding Millennial Kitchen & Bath Consumers,” compares the behavior and attitudes of those ages 18-37 to other generations when planning kitchen and bath remodeling projects. The study also found that more than half of the millennial generation has purchased a home in the last five years.

Other findings include: • When purchasing kitchen and bathroom products, younger generations value Internet searches and information from friends and family members more than other age groups.

• Customer reviews are more important to millennials when selecting kitchen products compared to other age brackets. In the bathroom, the cost of a product is paramount for millennial buyers when compared to other generational groups.

“Our market research helps our members stay ahead of important trends and changes in the $31 billion kitchen and bath marketplace,” said NKBA CEO Bill Darcy. “Our market intelligence and research studies interpret current trends, and predict what we can expect in the near future.”

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1-877-377-0011 Milwaukee • McFarland www.HotWaterProducts.com

FALL 2016

The Wisconsin P-H-C Contractor

31

News

BRIEFS

NOAA LAUNCHES AMERICA’S FIRST NATIONAL WATER FORECAST MODEL

NOAA (National Oceanic and Atmospheric Administration) and its partners have developed a new forecasting tool to simulate how water moves throughout the nation’s rivers and streams, paving the way for the biggest improvement in flood forecasting the country has ever seen.

Launched in August, and run on NOAA’s powerful new Cray XC40 supercomputer, the National Water Model uses data from more than 8,000 U.S. Geological Survey gauges to simulate conditions for 2.7 million locations in the contiguous United States. The model generates hourly forecasts for the entire river network. Previously, NOAA was only able to forecast streamflow for 4,000 locations every few hours.

The model also improves NOAA’s ability to meet the needs of its stakeholders – such as emergency managers, reservoir operators, first responders, recreationists, farmers, barge operators, and ecosystem and floodplain managers – with more accurate, detailed, frequent and expanded water information.

“With a changing climate, we’re experiencing more prolonged droughts and a greater frequency of record-breaking floods across the country, underscoring the nation’s need for expanded water information,” said Louis Uccellini, Ph.D., director of the National Weather Service. “The National Water Model will improve resiliency to water extremes in American communities. And as our forecasts get better, so will our planning and protection of life and property when there’s either too much water, too W140N5086 Lilly Rd soderholmrep.com little, or poor water quality.”

Menomonee Falls, WI 53051 800.328.9858 Initially, the model will 7150 143rd Ave NW Ramsey, MN 55303 benefit flash flood forecasts in headwater areas and provide water forecast information for many areas that currently aren’t covered. As the model evolves, it will provide “zoomed-in,” streetlevel forecasts and inundation maps to improve flood warnings, and will expand to include water quality forecasts.

“Through our partnership with the research, academic and federal water community, NOAA is bringing the state-of-the-science in water forecasting and prediction to bear operationally,” said Thomas Graziano, Ph.D., director of NOAA’s new Office of Water Prediction at the National Weather Service. “Over the past 50 years, our capabilities have been limited to forecasting river flow at a relatively limited number of locations. This model expands our forecast locations 700 times and generates several additional water variables, such as soil moisture, runoff, stream velocity, and other parameters to produce a more comprehensive picture of water behavior across the country.”

The underlying technology for the model was developed by the National Center for Atmospheric Research (NCAR). NOAA developed and implemented the model along with NCAR, the Consortium of Universities for the Advancement of Hydrologic Sciences, the National Science Foundation, and federal Integrated Water Resources Science and Services Consortium partners.

Continuing to leverage partnerships with the research community will prepare NOAA for new collaborations and even greater innovation in the future.

This model expands our forecast locations 700 times and generates several additional water variables

Market Influence. Customer Value.

32

The Wisconsin P-H-C Contractor

FALL 2016

News

2016 IAQ STANDARD PUBLISHED

BY ASHRAE

Requirements regarding multifamily residential dwellings, environmental tobacco smoke, and operations and maintenance are among changes to ASHRAE’s recently published indoor air quality standard.

ANSI/ASHRAE Standard 62.1-2016, Ventilation for Acceptable Indoor Air Quality sets minimum ventilation rates and other requirements for commercial and institutional buildings.

The latest version of Standard 62.1 contains changes that affect high-rise residential spaces, the indoor air quality procedure, laboratory exhaust and demand control ventilation.

As with the 2016 version of Standard 62.2, Ventilation and Acceptable Indoor Air Quality in Residential Buildings, the scope of Standard 62.1 has changed. Multifamily residential dwelling spaces have been removed from the standard and now are covered under 62.2. Spaces outside of the dwelling space such as corridors, lobbies, fitness rooms, retail, etc., remain covered by Standard 62.1.

Other major changes are: • Revision of the definition of “environmental tobacco smoke” (ETS) to include emissions from electronic smoking devices and from smoking of cannabis.

BRIEFS

NEW HOME SALES CLIMB TO HIGHEST LEVEL SINCE OCTOBER 2007

Sales of newly built, single-family homes rose 12.4 percent in July from a downwardly revised June reading to a seasonally adjusted annual rate of 654,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest reading in almost nine years.

“This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “As existing home inventory remains flat, we should see more consumers turning to new construction.”

“July’s positive report shows there is a need for new singlefamily homes, buoyed by increased household formation, job gains and attractive mortgage rates,” said NAHB Chief Economist Robert Dietz. “This uptick in demand should translate into increased housing production throughout 2016 and into next year.”

The inventory of new homes for sale was 233,000 in July, which is a 4.3-month supply at the current sales pace. The median sales price of new houses sold was $294,600.

Regionally, new home sales rose by 40 percent in the Northeast, 18.1 percent in the South, and 1.2 percent in the Midwest. Sales remained unchanged in the West.

A FITTING EVOLUTION IN CSST SAFETY

• Revision of operations and maintenance requirements to more closely align with the requirements in ASHRAE/ACCA Standard 180-2012, Standard Practice for Inspection and Maintenance of Commercial- Building HVAC Systems.

• Addition of requirements to the Indoor Air Quality Procedure for determining minimum ventilation rates by including consideration of the combined effects of multiple contaminants of concern on individual organ systems.

• Assignment of laboratory exhaust to a default of Air Class 4, with an explicit allowance for a responsible environmental health and safety professional to determine that a lower air class is appropriate for particular systems.

• Reduction of ventilation allowed to zero through the use of occupancy sensors (not through contaminant or carbon dioxide measurements) for spaces of selected occupancy types, provided that ventilation is restored to Vbz whenever occupancy is detected.

• Changes of language related to demand control ventilation confirming that the standard is intended to be used for physical operation in addition to calculations for code review.

To order, visit www.ashrae.org/bookstore.

FALL 2016

FLASHSHIELDTM CSST • Only Metallically Shielded Flexible Gas Piping on the Market • Only CSST listed to ES PMG-LC1027

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Burton-Anderson.com The Wisconsin P-H-C Contractor

33

Member

The Pipeline

NEWS

SCHOLARSHIP APPLICATIONS AVAILABLE

PLANNING FOR CONNECT 2017 IN MILWAUKEE

Scholarship applications for apprentices and those attending colleges are available online at www.phcc-wi.org.

Through the generosity of the PHCC-WI Auxiliary, two $500 scholarships are awarded each year to deserving students and apprentices. Be sure to apply!

And start thinking about applying for PHCC Foundation Scholarships as well and participating in the PHCC Apprenticeship Contests. With the national convention in Milwaukee in 2017, it’s never been easier to participate!

PHCC Wisconsin representatives met recently with National President Chip Greene and Executive Vice President Michael Copp to listen to an update on National’s new strategic plan and also to begin the planning for Connect 2017 which will take place in Milwaukee in October 2017! Look for state-approved and NATE-approved continuing education programs to be offered at the convention and the largest trade show held in Wisconsin in a very long time (or ever!).

SCOPE STATEMENT FOR CODE ADVISORY COMMITTEE

A Scope Statement has been issued for changes to the various sections of the plumbing code. The Scope Statement provides the boundaries of discussion for the Code Advisory Committee which will begin its work this fall. In preparation for the committee meetings, PHCC-Wisconsin and partner organizations have been holding listening sessions around the state and by conference call to gather industry input.

Smart Water Solutions for the Plumbing Industry

The Proficient H2O line of water treatment products was inspired by the best brains in the plumbing industry – yours. Produced by Hellenbrand – a leader in water treatment for over 40 years – the Proficient H2O line is specially tailored to meet a wide range of needs for today’s demanding homeowners. From water softener systems to drinking water systems to water filtration systems, they’re durable, efficient and effective protection against the many problems that can affect the water quality in your customer’s homes.

To learn more, visit proficientH2O.com, or call us at 608-849-3459.

©2016 Proficient H2O

34

The Wisconsin P-H-C Contractor

FALL 2016

Member

The Pipeline

NEWS

BYLAW UPDATES TO CREATE NEW LEADERSHIP OPPORTUNITIES

PARTNERING WITH NATE

PHCC-Wisconsin has entered into a training agreement with the North American Training Excellence organization, more commonly known as NATE, to provide both NATE certification testing and NATE-approved continuing education programs.

NATE is the recognized “gold-standard” for HVAC technician training and an important partner for PHCC in Wisconsin and nationally as we move to better serve HVAC contractors.

PHCC-Wisconsin is in the process of modifying its bylaws to update the requirements for its board of directors’ service. The change will move our association toward a system where board representation continues to reflect the geographic regions of the state but also allows for other considerations such as the size of a shop, its status as a union or open shop, whether the shop is plumbing, HVAC or both, among other things. If board service has been something of interest to you, membership is required, of course, but now is the time to make your interest known as elections for the board in early 2017 will likely take place under the new requirements.

CALL FOR INPUT – APPRENTICESHIP ADVISORY COMMITTEE

The State Plumbing Apprenticeship Advisory Committee will be meeting in October. Do you have issues you’d like to discuss?

Please contact the PHCC-WI office and we’ll put you in touch with our representatives on the committee.

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EVERY APPLICATION

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FALL 2016

16-AOS-0107 M4BT Right Product For Every Application - Midtstate Supply 7.5x5.indd 1

8/18/16 1:48 PM The Wisconsin P-H-C Contractor 35

Member

PHCC/MP/HC - Wisconsin Association

BENEFITS

• Company listing on www.phcc-wi.org

• Savings on Grandy & Associates Programs for

• Legislative & Regulatory Representation

• Networking with Other Contractors

• Monthly Newsletter

• Networking with Business Partners Including Legal,

• Coupons Offering Discounts on Products & Services • Representation on Code and Licensing Councils • Discounts on Plumbing Code Books and POWTS

Business Owners/Managers

• Networking with Wholesaler and Manufacturer Reps Banking, and Accounting Professionals

Manuals

• Access to Federated Insurance Member Programs

Manuals

• Retirement Planning Services

• Discounts on NFPA 13D Manuals and Plumbing Design • Discounts on Technical Education Programs (Continuing Education)

(Liability, WC, Health, etc.)

• Scholarship Programs with Preferences for

• Discounts on Business Education Programs

Member-Sponsored Applicants

• Discounts on Annual Convention

Advertiser

INDEX

FALL 2016 Advertiser Index 29

OCT. 19-21

Hydro-Flo Products, Inc. www.hydro-flo.com

5

Able Distributing www.ablewi.com

25

Jim Murray Inc. www.jimmurrayinc.com

3

Auer Steel www.auersteel.com

21*

Metropolitan Industries www.metropolitanind.com

39

Bradford White www.bradfordwhite.com

35

Mid-State Supply www.mssupply.com

33

Burton-Anderson & Associates www.burton-anderson.com

9

Plumbing Creations Company 262-349-0744

30

Crest Precast Inc. www.crestprecastconcrete.com

11

Process & Mechanical Systems Inc. www.pmsireps.com

40

DSG/W.A. Roosevelt www.dakotasupplygroup.com

34

Proficient H2O www.proficientH20.com

21

Federated Insurance www.federatedinsurance.com

1213

Rundle-Spence www.rundle-spence.com

2

Ferguson www.ferguson.com

32

Soderholm & Associates www.soderholmrep.com

7

First Supply www.1supply.com

23

T & S Brass www.tsbrass.com

19

Goodin Company www.goodinco.com

1617

Taco Comfort Solutions www.TacoComfort.com

31

Hot Water Products Inc. www.HotWaterProducts.com

24

Water Right www.water-right.com

36

The Wisconsin P-H-C Contractor

Calendar of Events PHCC Convention (CONNECT 2016) San Antonio

OCT. 21

Northwest Wisconsin Plumbing Seminar Eau Claire

NOV. 11

Northern Wisconsin Plumbing Seminar Stevens Point

2017 OCT. 2-7

PHCC Convention (CONNECT 2017) Milwaukee

All dates are subject to change.

*INSERT

FALL 2016

Wisconsin Plumbing

Recent Updates Have Been Made To The State Code!

CODE BOOK & POWTS

Is Your Code Book Up-To-Date?

Component Manuals

Order A New Book Today!

Master Plumbers/Heating & Cooling Contractors of Wisconsin

CODE BOOK contains: • • • •

over 350 pages of statutes & rules complete three ring binder full 8.5” x 11” pages tabbed sections for easy reference.

POWTS Component Manuals contain: • • • •

all 12 POWTS component manuals three ring binder full 8.5” x 11” pages tabbed sections for easy reference.

Sponsored by: PHCC-Wisconsin Association & Master Plumbers/Heating & Cooling Contractors of Wisconsin Call (888) 782-6815 for details regarding the code book or answers to your code book questions.

PRICES include Shipping & Handling: _____MEMBER

CODE BOOK ONLY

$55.00 EACH ____________

_____MEMBER

CODE BOOK WITH 1 YEAR UPDATE SERVICE

$90.00 EACH ____________

_____MEMBER

1 YEAR UPDATE SERVICE

$40.00 EACH ____________

_____MEMBER

POWTS COMPONENT MANUALS

$60.00 EACH ____________

_____MEMBER

NFPA 13D FIRE PROTECTION CODE

$65.00 EACH ____________

_____MEMBER

DESIGN MANUAL

_____NON-MEMBER

CODE BOOK ONLY

_____NON-MEMBER

CODE BOOK WITH 1 YEAR UPDATE SERVICE

_____NON-MEMBER

1 YEAR UPDATE SERVICE

$65.00 EACH ____________

_____NON-MEMBER

POWTS COMPONENT MANUALS

$75.00 EACH ____________

_____NON-MEMBER

NFPA 13D FIRE PROTECTION CODE

$75.00 EACH ____________

_____NON-MEMBER

DESIGN MANUAL

$120.00 EACH ____________ $90.00 EACH ____________ $135.00 EACH ____________

$140.00 EACH ____________

SUBTOTAL ____________

5.6% Sales Tax ____________

TOTAL ____________

NAME_____________________________________________________________________________________________________ COMPANY NAME ___________________________________________________________________________________________ ADDRESS ___________________________________________________________________________________________________ CITY / STATE / ZIP ______________________________________________________________________________________________ PHONE _____________________________________________ EMAIL __________________________________________________ Check enclosed in the amount of $___________________ Payable to “PHCC-Wisconsin” Charge: _________ MasterCard _________ Visa _________ American Express _________ Discover Credit Card # _______________________________________Expiration Date ___________ CVC# _________ Name on Card ______________________________________Signature ______________________________________________

Call in your order to (888) 782-6815 ~ Fax to (888) 287-4116 Mail your order to PHCC-Wisconsin P.O. Box 833 - Germantown, WI 53022-0833 FALL 2016

The Wisconsin P-H-C Contractor

37

Membership

PHCC/MP/HC - Wisconsin Association

APPLICATION Contractor (check one):

Master Plumbers/Heating & Cooling Contractors of Wisconsin (State Only) - $325.00

Call for new member discounts!

888-782-6815

PHCC Wisconsin/National Associations (State & National) $551.00 - 1st Year National Members $678.00 - 2nd Year National Members $806.00 - 3rd Year and Thereafter

Associate Member (Product/Service Provider):

PHCC-Wisconsin Association/Master Plumbers/Heating & Cooling Contractors of Wisconsin (State Only) - $325.00

Method of Payment: Check for $___________ enclosed (payable to PHCC-Wisconsin Association) MasterCard

Visa

American Express

Discover

Name ________________________________________________________ Card Number _________________________________________________ Expiration Date __________ / __________ CVC#_____________________ Signature ____________________________________________________

Dues payments are not deductible as a charitable contribution, but may be deductible as a business expense. PHCC-WI*MP/HC Contractors Association estimates that $50.00 of your state dues is not deductible as a business expense due to lobbying activities on behalf of PHCC-WI*MP/HC members. PHCCNA estimates that 5 percent of your national dues is not deductible as a business expense due to lobbying activities on behalf of PHCC-NA members. Consult your tax advisor.

Master Plumbers/Heating & Cooling Contractors of Wisconsin

CONTACT INFORMATION Company____________________________________________________________________________________________ Address_____________________________________________________________________________________________

City, State, Zip_______________________________________________________________________________________

Phone______________________________________Fax___________________________________________________ MP#________________________________________HVAC#_____________________________________________________

Contact Person______________________________________________________________________________________ Email*_______________________________________________________________________________________________ Website_____________________________________________________________________________________________ * If you would like additional contacts to receive e-mail communication from PHCC/MP/HC, please let us know:

Name_______________________________________________________________________________________________ Email _______________________________________________________________________________________________

Name_______________________________________________________________________________________________

Email________________________________________________________________________________________________ Return this form and payments to: PHCC-Wisconsin Association, P.O. Box 833, Germantown, WI 53022-0833 Toll Free: 888-782-6815 • Toll Free Fax: 888-287-4116 • www.phcc-wi.org 38

The Wisconsin P-H-C Contractor

FALL 2016

Water heaters and boilers, residential and commercial, high efficiency and high output – Bradford White has the products you can count on for years of reliable service. We build water heaters in Michigan and boilers in New Hampshire. But no matter the location, each manufacturing facility is staffed with a highly skilled and experienced workforce.

These people know how to design and build a great water heater and a great boiler. They do it every day.

They do it for you.

We have exactly what you need, everything you need, to get the job done and help you build a very long list of greatly satisfied customers. If what you do for a living involves water heaters and boilers, remember this – Bradford White is an American manufacturer that builds products for wholesale distribution to a Bradford White is the Official Water Heater and Boiler of the PHCC.

dedicated group of professional installers. These are your products. We are your Bradford White.

Built to be the Best™ ©2016, Bradford White Corporation. All rights reserved.

www.bradfordwhite.com

BOLD MEETS GUARANTEES DSG IS WISCONSIN’S NEWEST KOHLER® DISTRIBUTOR Dakota Supply Group is proud to be the newest KOHLER® distributor in Wisconsin as we bring together BOLD plumbing products with our distinctive Customer Service Guarantees.

information@dsginc.biz | www.dakotasupplygroup.com