Construction Outlook July 2016

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

JULY, 2016

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UCANE Interview

MA State Treasurer Deborah Goldberg

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

Years of Excellence 1954-2016

JULY, 2016

IN THIS ISSUE

OFFICERS President JOHN OUR

Robert B. Our Co., Inc.

President-Elect PAUL SCENNA

Albanese D&S, Inc.

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

Secretary MARCELLA ALBANESE

Albanese Brothers, Inc.

BOARD OF DIRECTORS VINCENT BARLETTA

Barletta Heavy Division

JOHN BERKSZA

Eastern Insurance Group, LLC

NICK BIELLO

3 President’s Message:

On-the-Job Safety Should Always be Priority One

9 Legislative Update:

• Clarification on Hydrant Issue Passes Senate • Coalition of Employers Formed to Oppose Harmful Wage Enforcement Legislation • Conference Committee Accord on FY17 Budget Reached • Clean Water Trust Provides Principal Forgiveness for 19 Communities

19 UCANE Interview:

Massachusetts State Treasurer Deborah Goldberg

25 Baker-Polito Administration Awards $10 Million for Sewer System Improvements in Worcester and Shrewsbury 29 Spotlight on Cape Cod:

J. D’Amico, Inc.

Speakers at Cape Wastewater Conference Say There’s No Turning Back

TONY BORRELLI

33 UCANE’s 62nd Annual Banquet

Celco Construction Corp.

GERRY CARNEY, JR.

C. N. Wood Co., Inc.

KEVIN COLE

J. F. White Contracting Co.

BRIAN COONEY

34 Associate Member of the Month:

TruckTap: Using Technology to Revolutionize the Construction Industry

41 MWRA Annual Water Quality Report

C. C. Construction, Inc.

57 ATS Equipment, Inc. Opens New Facility in Rehoboth, MA

JON D’ALLESSANDRO

59 The Leukemia & Lymphoma Society of Massachusetts Announces 2016 Man & Woman of the Year at the Champions of Hope Gala

D’Allessandro Corp.

GREG FEENEY

Feeney Bros. Excavation, LLC

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

MARCO GIOIOSO

P. Gioioso & Sons, Inc.

A. J. LORUSSO

Lorusso Heavy Equipment, LLC

AL MORTEO

FED. CORP.

JOSEPH PACELLA

61 UCANE’s Safety Corner:

Recognizing and Preventing On-Site Violence

65 Financial Management:

• What the New Federal Fiduciary Rule Means to Investors • EFTs Can Be Plain or Fancy • Disaster Planning Versus Succession Planning

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

PAUL A. UMBRO

Umbro & Sons Const. Corp.

CHRIS VALENTI

GVC Construction, Inc.

DAVID ZOPPO

R. Zoppo Corp.

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

ANNE KLAYMAN

Executive Director

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On-the-Job Safety Should Always be Priority One Favorable weather in the spring and into the summer has most of our members working at full capacity. With so many crews at remote jobsites, the ability to closely monitor every workplace becomes more difficult. While we all strive to finish the job on time and under budget, every company’s primary goal should be to make certain that each of their jobsites is free of hazards and that each employee is working in a safe environment.

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here is no getting away from it, construction and risk go together. There is no way to avoid this, especially in our industry, where huge excavation and earth moving vehicles are in close proximity to laborers working in trenches.

What we can avoid is unnecessary risk by making certain that safety is an integral part of each worker’s daily life. In my opinion, on-thejob safety should be part of the culture of every company, from the owner down to the last man and woman to come on board. Company safety should not just be about following some of the rules, it should be about following all of the rules, and if someone spots a possible hazard, that person needs to speak up and bring it to the attention of the person in charge. The goal should not just be accident reduction, but zero accidents.

Company owners need to instill this approach in weekly safety tool box talks and at every opportunity that avails itself. If employees see that the company is investing in and promoting safety, they in turn will treat it just as seriously, resulting in a more productive and hazard free workplace.

UCANE members can also send their employees to safety training seminars which UCANE offers on various topics, including Confined Space Entry, Competent Person, Asbestos Removal, and JULY, 2016

OSHA regulations. In addition, individual construction safety manuals, with your company name and logo on them, are also available to UCANE members. Requiring every employee, both new and veteran, to read the manual and sign a card attesting to having read the manual is an excellent company policy, as it is important to verify that each employee has a knowledge of OSHA safety requirements.

Not only is job safety the right thing to do, it is smart business. Safety training is best for both a company’s profitability and the health and well being of their employees. It should be every company’s number one priority. n

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Mark Molloy, Esq., Lynch Associates, Inc.

Clarification on Hydrant Issue Passes Senate

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have been authorized to conduct the installation and he Massachusetts Senate recently passed maintenance of hydrants, including the pipes and legislation that will clarify the work conducted valves associated with them. The overall integrity of on fire hydrants throughout the Commona community’s water infrastructure is the responsiwealth. Senate Bill 2124, An Act to Maintain Public bility of the public water supplier – meaning that hyWater Systems, as amended by the Joint Committee drants should not be taken out of the equation. This on Consumer Protection and Professional Licensure, legislation, as amended, clarifies that there is a dual was passed by the Massachusetts Senate at the end use for fire hydrants, generally, and the existence of of June. UCANE worked with other impacted orgaan integrated water system, specifically, that can be nizations, including the Massachusetts Water Works maintained by municipalities or contractors working Association, the lead legislative proponent, to develon a municipalities’ behalf. op a solution that worked for all impacted parties.

Organizations involved in negotiating and passThe issue arose from a Massachusetts Departing this legislation included: Sprinkler Fitters and Apment of Public Safety advisory of June 4, 2009, which prentices Local Union 550; Laborers’ Local 22; Masinterpreted the responsibility of sprinkler fitters to exsachusetts Water Works Association and Associated tend outside of a building to encompass fire hydrants Builders and Contractors (ABC). The legislation is only to the extent to which “the work at issue involves currently before the House Committee on Ways and dedicated fire protection sprinkler lines”. The memoMeans. randum, however, exempts fire hydrants that were incontinued on page 11 stalled as part of the water infrastructure system. As UCANE has argued, this exemption recognizes that hydrants are one part of a larger water infrastructure network, requiring maintenance as MBO Precast Inc. part of the overall system – not sim4 Marion Drive • Carver, MA 02330 ply fire protection (i.e., assist in the T: 508-866-6900 • F: 508-866-5252 provision of potable water). Utility www.MBOPrecast.com contractors, using laborers, have safely installed fire hydrants and Stone Strong Retaining Wall Systems appurtenant pipes for many years.

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Legislative Update continued from page 9

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Coalition of Employers Formed to Oppose Harmful Wage Enforcement Legislation

s the formal 2015-2016 legislative session heads towards its conclusion on July 31, a variety of matters are poised to make a late rush in an attempt to achieve passage. One such matter is Senate Bill 2207, An Act Relative to the Payment of Wages. The legislation, which received a favorable report from the Joint Committee on Labor and Workforce Development, is being pushed by a group of employment activists including, Community Labor United, a Beacon Street-based non-profit. As a result, a group of employer associations, including Associated Industries of Massachusetts; the National Association of Industrial and Office Properties, Massachusetts; Retailers Association of Massachusetts; National Federation of Independent Business, Massachusetts; and every contractor organization, including UCANE, have joined together to oppose this legislation.

Senate Bill 2207 – through broad sweeping defi-

nitions – attempts to hold contractors, and potentially developers, construction managers and owners, jointly and severally liable for any wage violation committed by every tier of contractors working under them. Using vaguely-defined terms such as “labor contractor” and “lead company,” the legislation simply states that companies that provide labor or services with a “nexus” to the lead company will be liable for any wage violations committed by the “subcontractor.” The vicarious liability extends to the “lead company” if the subcontractor violates laws governing unemployment insurance or workers’ compensation.

Finally, the legislation allows the Massachusetts Attorney General or Director of the Massachusetts Division of Unemployment Assistance to issue a “stop work order” before any hearing process is available.

The legislation requires certain successor entities to pay workers affected by the stop work order for the continued on page 13

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Legislative Update continued from page 11 first 10 days. The effects on major building projects and their investors could be disastrous.

UCANE and the other associations have opposed Senate Bill 2207 out of concern that the proposed legislation will cause more harm than it purports to stop. There already exists almost 250 wage and employment statutes within the Commonwealth.

The Attorney General has the authority to file a civil action for violations of labor laws under Mass. Gen. Laws ch. 149, s. 148. In addition, an employee/worker can receive treble damages and attorney fees for a successful claim under various provisions of Mass.

Gen. Laws ch. 149 and Mass. Gen. Laws ch. 151. The wide-ranging coalition opposing this effort continues to argue that the existing laws are effective and there has been a steady decline in the number of violations in the construction industry as is reflected in the Attorney General’s Wage and Hour Division own records.

Of particular concern to UCANE is that the wage violations asserted to during the public hearing on this legislation before the Joint Committee on Labor and Workforce Development involved restaurants, retail business, and home building, not public construction. In a letter to the Senate Ways and Means Committee, UCANE highlighted that “public construc-

tion in the Commonwealth is one of the most stringent and closely managed employment transactions.

Transparency and accountability exist at virtually every level from bidding to project completion. With the passage of this legislation, contractors will be forced to carry higher limits of insurance (i.e., increased contract costs reflected within procurement bids); undertake less work in order to vigorously manage entire employment chain (i.e., reduced competition leading to higher bid prices); and limit the occasions where joint venturing occurs (i.e., reduced competition leading to higher bid prices).”

At the time of this writing, Senate Bill 2207 is expected to be passed by the Massachusetts Senate within the month of July. Its prospects in the Massachusetts House of Representatives remain unclear at the moment. That said, employee advocacy groups have begun a sustained, public education campaign with the goal of driving action on the matter before the end of formal session on July 31.

For more information about the employment coalition efforts on this matter, please visit: http:// www.wagebillhurtsthegoodguys.org/. For information about employee advocacy efforts on this legislation, please visit: http://massclu.org/ continued on page 15

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Legislative Update continued from page 13

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Conference Committee Accord on FY17 Budget Reached

he Massachusetts legislature reached an agreement on the FY17 budget at the end of June. After two weeks of negotiation, the Conference Committee report on the FY17 budget was released a total price tag of $39.15 billion. The agreed upon budget reflects a reduction of $750 million in projected revenue and $413 million less in proposed spending from the respective budgets of the House and Senate.

The Conference Committee report keeps both branches increases to local aid and school funding. To manage such a feat, many state agencies will be receiving level funding or minimal increases. The compromise plan would increase Chapter 70 school aid by $116 million and unrestricted local aid by $42 million, while funding for higher education would increase on average by 1 percent, including a 1.4 percent increase for the University of Massachusetts.

As part of the budget negotiations, the House and Senate, while still including 200 or so outside sections, limited many of the legislative proposals contained in the respective budgets. Language relative to ambulance payments, banning plastic bags or a myriad of special commissions were left out of the final report.

Of particular interest to UCANE members, the following budget items were as follows: • Rate Relief. The Conference Committee report provided $1.1 million. Last year, the final appropriation settled at $1.1 million.

(Line-item 1231-1000).

• Clean Water Trust Contract Assistance. The Conference Committee report matched the Senate, House and Governor’s recommendation of $63,709,000 for line-item 1599-0093. Last year, the final appropriation was level funded at the same amount.

• DEP Administration. The Conference Committee report funded the agency at $25,037,437, reduction over both the original amounts appropriated by the House and Senate.

• Municipal Safe Drinking Water. In its budget, the House created a new line-item

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providing $535,000 to help municipalities provide safe drinking water to their residents. The Conference Committee report did not include this funding.

•

Climate Change and State Climatologist. While the Conference Committee included a reduced amount $150,000 for climate change adaptation, the Conference Committee did not fund a state climatologist, which was originally funded in the Senate budget.

The Conference Committee report, which was being approved by the House and Senate at the time of this writing, will be presented to the Governor for his approval. The Governor, who will have 10 days to review the package, can either veto, amend or approve the items before him. continued on page 17

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Legislative Update continued from page 15

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Clean Water Trust Provides Principal Forgiveness for 19 Communities

ccording to a press release from Treasurer Deb Goldberg, Chair of the Massachusetts Clean Water Trust (CWT), the CWT recently released more than $6.7 million in loan principal forgiveness for 19 projects in 16 communities statewide.

The principal forgiveness funds are administered on a competitive basis to cities and towns most in need of financial assistance to help pay for improvements to drinking water and wastewater infrastructure.

The Massachusetts Clean Water Trust, founded to improve the water quality in the Commonwealth through the provision of low-cost capital financing to cities, towns, and other eligible entities, is the Commonwealth’s leading finance agency for water infrastructure. Through the establishment of a principal forgiveness loan program, the CWT is able to incentivize eligible communities to invest in their water infrastructure. Because of the reduction of loan principal funded by this program, impacted communities see their bi-annual loan repayments reduced, freeing up capital for other local needs. The loans were origi-

nated to pay for municipal water projects such as upgrades to water treatment facilities and storm water and sewer improvement projects.

The communities that earned loan principal forgiveness are: Lynn, Revere, Saugus, Norwood, Quincy, Worcester, Brockton, Gardner, Falmouth, New Bedford, Eastham, Fall River, Plainville, Chicopee, Great Barrington, and Greater Lawrence.

The $6.7 million in loan forgiveness funds is associated with a total original loan amount of more than $185 million. Since its creation, the CWT has lent financial assistance to municipalities and regional water authorities throughout the Commonwealth under the State Revolving Fund program by providing subsidized loans to cities and towns for clean water and drinking water infrastructure development. Since its establishment in 1989, the Trust has loaned more than $6.6 billion to improve and maintain the quality of water in the Commonwealth. According to the Treasurer’s Office, an estimated 97 percent of Massachusetts’ citizens have benefited from this financial assistance. n

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Massachusetts State Treasurer Deborah Goldberg Prior to becoming State Treasurer in 2015, Deb Goldberg served for six years on the Brookline Board of Selectmen, including two as Chair, bringing policy budgeting to the forefront and enabling the community to maintain financial flexibility, even in tough times.

She worked collaboratively to increase the supply of affordable housing, promoted appropriate economic development, and launched new environmental protection efforts.

Q:

As one of three overseers of the Massachusetts Clean Water Trust, you are aware that access to clean drinking water and proper management of wastewater is critical, but that the debt burden on municipalities interferes with their ability to make needed improvements to water infrastructure. Can you share your thoughts relative to the importance of maintaining drinking water and wastewater infrastructure?

A:

Maintaining the public’s access to clean drinking water and removing wastewater to protect the public health and the environment is crucial to strong communities. Investing in water infrastructure protects the health of the citizens, the environment, and allows for business development. Having said that, there are serious constraints when it comes to paying for these expensive projects; and that is where the Massachusetts Clean Water Trust is vital in providing communities access to low cost capital financing. It is crucial for government officials to explain to citizens how important investing in water infrastructure is and investing before there is a failure that causes the cost of the work to skyrocket.

Q:

The Clean Water and Drinking Water Statewide Revolving Funds (SRFs) are among the most active within the Commonwealth.

Please discuss the significance of this program and the benefits of using the SRF program.

JULY, 2016

A:

The Clean Water and Drinking Water SRF’s are a critical part of getting low cost capital financing to cities and towns. The project selection process works the same way each year, providing consistency to cities and towns that allows them to incorporate Trust borrowings into their capital improvement plans.

Annually, the Trust disburses approximately $350 million to projects throughout the state. When projects are selected and ready to begin construction, the Trust will be there with the funds needed to get the project moving. These initial startup funds provided to the cities and towns before permanent financing are now loaned at 0% rate, so no matter what the borrower’s credit rating is, they can’t beat that rate.

This allows the Trust to fund projects on the communities’ timeline, without creating any cash flow issues while the project is under construction.

Additionally, when the loan is put into repayment, it is at a 2% rate, which is lower than any market rate loan cities and towns can get on their own, even in this historically low interest rate environment.

Q:

Water infrastructure is often overlooked or prioritized at a lower level than other issues facing municipalities – whether due to funding, interest, or understanding. What is the Clean Water Trust’s role in removing some of those barriers? continued on page 21

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Interview continued from page 19 What are some ways the CWT can further incentivize communities to invest in their water infrastructure today?

A:

Water infrastructure is seen as the forgotten infrastructure because unlike roads and bridges, you do not see the state of water and sewer pipes every day on your ride to work. The Trust plays a role in helping communities better understand the need for funding this “out of sight” infrastructure by making the cost more affordable and less of a burden on the ratepayers.

Water infrastructure is seen as the forgotten infrastructure because unlike roads and bridges, you do not see the state of water and sewer pipes every day on your ride to work. The Trust plays a role in helping communities better understand the need for funding this “out of sight” infrastructure by making the cost more affordable and less of a burden on the ratepayers. The outreach and education the Trust offers to local governments to educate them on the benefits of using Trust financing and doing it sooner rather than later, helps to move these projects along.

To help incentivize more projects moving forward at the local level, the Trust is working to implement additional subsidies approved under recent legislative changes. These incentives include loans below 2% and further principle forgiveness. Unfortunately, the funds to make these additional subsidies available to communities have not been appropriated. However, when funding is provided, the Trust will be ready to offer these options to communities, making a Trust loan even more attractive.

Q:

While many people think of the CWT as a financier for cities and towns, they do not realize that the CWT is also one of the Commonwealth’s leading engines for job development. Please discuss the CWT’s role in creating jobs throughout the Commonwealth.

A:

One of the most obvious examples of Trust loans creating jobs would be the cleanup of Boston Harbor and the growth of the Seaport District of Boston. The work the MWRA did to cleanup the harbor with funding from the Trust, allowed for the Seaport to become what it is today and for Boston Harbor to be one of the cleanest urban harbors in the country. In that case, not only continued on page 23

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Interview continued from page 21 did the funding create engineering and construction jobs, but the result of the work led to a business boom in that area.

In addition to Boston Harbor, Trust loans create construction and engineering jobs. The approximately $350 million a year that goes to projects creates an estimated 2,100 jobs, so not only is the Trust protecting the health of our citizens and the environment, it is also creating jobs at the same time.

Q:

What are some of the initiatives you hope to undertake as Treasurer to assist municipalities and regional water authorities in their efforts to maintain their water infrastructure in the future?

A:

We have already increased our funding capacity for drinking water loans and we have dedicated $2 million to test for lead in schools.

From there I would like to review the results of the lead testing to see if there is a further role for the Trust, or the Massachusetts School Building Authority, to play in resolving this immediate problem. Looking further into the future, I would like to continue the movement towards additional subsidization for communities so that this vital work can get done at a lower cost to the ratepayers. n

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JULY, 2016

Baker-Polito Administration Awards $10 Million for Sewer System Improvements in Worcester and Shrewsbury

On

Sewer Work Along Route 20 Will Better Protect the Environment, Spur Area Economic Development

June 24, 2016 Lieutenant Governor Karyn Polito and Energy and Environmental Affairs (EEA) Secretary Matthew Beaton announced $10 million to the City of Worcester to support an infrastructure project that will reconstruct the Whitla Drive sewer pumping station and expand the capacity of the sewer system in the Route 20 corridor in Worcester and Shrewsbury.

The announcement was made during an event at the Belsito Auto Center on Route 20 in Worcester.

“The Route 20 Sewer Extension Project will increase sewer capacity in an under-developed area, which will attract economic development to the Route 20 corridor and protect public health and natural resources,” said Governor Charlie Baker. “Our administration is committed to helping communities invest in their infrastructure to create jobs and ensure public safety.”

“This important infrastructure project will provide significant economic benefits to the Worcester area, as well as environmental benefits which cannot be measured in terms of dollars and cents,” said Lieutenant Governor Karyn Polito. “We are proud to be able to work together with our local partners to protect the environment and encourage commercial and industrial development in one the of the Commonwealth’s great cities.”

The City of Worcester will receive $3.5 million this year and $3.5 million next year from the Environmental Bond Bill as well as a one-time installment of $3 million from the Massachusetts Department of Transportation.

The City will match those funds with $10 million in order to re-route, extend and expand the capacity of the limited sewer system currently serving the Route 20 area.

“Old, failing pipes present a problem when they leak and contaminate areas that should remain clean and open to the public,” said EEA Secretary Matthew Beaton. “This project will allow us to protect our beautiful natural resources by rectifying the threat of sewage overflowing into Lake Quinsigamond and the Broad Meadow Brook Wildlife Sanctuary.”

“MassDOT is pleased to have helped fund criticallyneeded infrastructure improvements along the Route 20 corridor,” said MassDOT Secretary & CEO Stephanie Pollack. “This project underscores the benefits of the collaborative approach the administration has taken when investing in transportation and economic development opportunities throughout the Commonwealth.”

JULY, 2016

The Route 20 Sewer Extension Project will provide sewer service to the area between Massasoit and Sunderland roads by adding 19,300 feet of collector sewers and 11,500 feet of dual 16-inch force mains, and will include a new connection to the Upper Blackstone Water Pollution Abatement District treatment facility in Millbury. It will also combine the existing sewer system with the new “single” system to make it more efficient, and eliminate two old pumping stations and aging cast-iron force mains within the Broad Meadow Brook Wildlife Sanctuary.

Reconstruction will allow the Whitla Drive pump station to handle existing and projected future flows from the Broad Meadow Brook and Grafton Street pump stations, as well as additional flows from the Route 20 corridor.

“This project has the rare distinction of bringing both huge economic and environmental benefits to the city of Worcester and the region,” said City Manager Edward M. Augustus, Jr. “Thank you to the Baker-Polito Administration for once again demonstrating its commitment to our city and its economic wellbeing.”

“The investment in the Route 20 Sewer Infrastructure Improvements will have significant impacts stretching beyond the city of Worcester, and I am pleased that the BakerPolito Administration has identified the expansion of sewer services into this underdeveloped area as a priority,” said State Representative Hannah E. Kane (R-Shrewsbury).

“The expansion will allow for continued collaboration between the City of Worcester and the Town of Shrewsbury, making the development of properties along the Route 20 corridor in both municipalities a possibility. This investment continued on page 27

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Sewer Improvements continued from page 25 will spur economic development in Shrewsbury in an area that is partially zoned for business and limited industrial development while addressing the environmental concern of sewage overflow into Lake Quinsigamond and Broad Meadow Brook Wildlife Sanctuary.”

“This project offers exciting new opportunities to enhance the economic vibrancy of the City of Worcester and the surrounding area,” said State Senator Michael O. Moore (D-Millbury). “The anticipated environmental and economic impacts will surely benefit our region. I appreciate the hard work and efforts of local and state officials, the Administration, and everyone involved with helping to bring this initiative to fruition.”

“I want to thank the Baker-Polito Administration for the authorization of these crucial funds needed to make the Route 20 Sewer Project a reality,” said State Representative Daniel Donahue (D-Worcester). “The need for sewer access in this area has long been discussed and today's announcement highlights how close partnership between our local government, legislative bodies and state executive offices can bring about effective solutions for our communities. This project will bring immense operational and environmental benefits to Worcester, and will open up an entire section of the City ripe for major economic development opportunities.” n

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JULY, 2016

Speakers at Cape Wastewater Conference Say There's No Turning Back

H

YANNIS — A lot has happened on Cape Cod's wastewater front in the past couple of years, said Ken Moraff, the Environmental Protection Agency New England’s director for ecosystem protection, during a meeting of the Cape Cod Selectmen and Councilors’ Association Thursday night June 23.

“We had none of this leadership at the state or regional level to bring this (regional wastewater) plan forward,” Moraff said.

Instead, the region was waiting on the outcome of lawsuits by the Conservation Law Foundation and the Buzzards Bay Coalition against the EPA over the lack of progress in planning and implementing a cleanup of Cape bays and ponds.

“That was a really bad place to be in,” Moraff told the group, which was attending the One Cape conference, a clean-water summit sponsored by the Cape Cod Commission that ran for two days this week at the Resort and Conference Center at Hyannis.

Part of the agreement that suspended a decision on the suit prompted the commission to update the regional plan after it had been moribund for more than 35 years, creating a suite of new tools to give town officials better access to crucial data, a more user-friendly regulatory system, and more financial help.

While his agency is supportive of the regional effort, Moraff remained cautious.

“If you could have picked a time where this process bogged down, it would be now … when local communities have to commit to spending money,” he said.

When talking about a cleanup that could cost towns hundreds of millions of dollars apiece and $3 billion to $8 billion regionally, money has always been the biggest hurdle for towns to overcome.

JULY, 2016

Paul Niedzwicki, Cape Cod Commission Executive Director opened the conference.

While state Senator Daniel Wolf, D-Harwich told selectmen and councilors he believes 75 percent of the money would ultimately come from non-municipal sources, but Cape Cod Commission financial consultant Robert Ciolek, who spoke about wastewater financing during a Friday session, said it would likely be closer to 25 percent in federal and state aid.

Ciolek, who was chairman of the finance committee for the Metropolitan Water Resources Authority board of directors, thought the region would spend roughly the same as Boston ratepayers, $4.4 billion for the Boston Harbor cleanup, but the cost would fall on a few hundred thousand taxpayers instead of several million.

Recent changes to financing and loan regulations, intended to make the cleanup more affordable, will make a difference, Ciolek said. The state Legislature dropped the allowable interest rate from five percent to two percent on betterments to help homeowners pay for sewer hookups and other expenses, and extended the repayment period from 20 to 30 years. continued on page 31

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Spotlight on Cape Cod continued from page 29 An even bigger benefit to towns is the decision to allow a 25 percent forgiveness on the principal borrowed from the Clean Water State Revolving Fund. The fund can already grant zero interest loans for Cape wastewater projects, but the 25 percent forgiveness would cut the cost of a $100 million project to $75 million.

Another new law allows for the creation of a municipal funding source similar to the Community Preservation Act in which a town could add a three percent surcharge on property taxes to use on wastewater projects, Ciolek said. Although it wouldn't be a big source of money, he said, Barnstable could raise $2.6 million annually through the surcharge and that would pay the debt service on a $65 million loan over 20 years.

Former Chatham and Yarmouth Town Manager William Hinchey, who also spoke at the Friday session, said towns need to put together financial plans that don’t have a major impact on property taxes.

“Put together a plan that marginally, at best, increases their taxes,” Hinchey said. He advised that towns should take advantage of drop-off in debt as projects are paid off and keep taxes level instead of letting them decline. He also pointed out that the Cape has very low water rates and could help finance a wastewater facility through ratepayers.

Jay Detjensspoke during a breakout session.

“This is a water quality issue,” he said.

Mashpee selectman, and executive director of the Cape Cod Water Protection Collaborative, Andrew Gottlieb, discussed the possibility of a Cape Cod infrastructure trust fund that might be able to access loans and grants as a regional entity or get better terms.

Whatever the approach, there's no turning back, according to the speakers.

“The bottom line is this has to get done,” Moraff said. “There is not a path of no action. No one will allow these conditions to remain.”

Written by Doug Fraser. Reprinted with permission from the Cape Cod Times. n

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Using Mobile Technology to REVOLUTIONIZE the Construction Industry

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JULY, 2016

TruckTap is using mobile technology to revolutionize the construction industry, beginning with localized on-demand trucking. From TruckTap.com, contractors can reach as many trucks as they need instantly, with the click of a button. This simple to use service completely automates the process of hiring and managing trucks for construction projects. continued on page 36

JULY, 2016

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TruckTap continued from page 35

How It Started

TruckTap founder Richard Saccone has been operating heavy machinery and driving trucks since he was in high school. As an avid entrepreneur and tech enthusiast growing up in his family’s construction business, he has always been on the lookout for opportunities to increase productivity.

One day in January 2015 after a discussion with a techie friend regarding the proliferation of business-to-business (b2b) mobile applications, something clicked – there was a huge construction industry problem that could only be solved with mobile technology.

A Systemic Problem

It was clear that most project delays and costly down-time stemmed from the inability to procure resources in a timely manner. Whether it was materials, supplies, fuel, labor, or equipment – the costs associated with not having any of these resources when needed could be astronomical. Due to the unpredictable nature of construction, planning ahead could be difficult if not impossible. The industry desperately needed a way to adapt to ever changing resource needs at a moment’s notice.

Most of the resources a construction company needs are abundant, and available somewhere locally. The logistical challenge is finding and transporting these resources to job sites just-in-time, so that the contractor has the resources available immediately when needed, but doesn’t need to pay a premium to own, store, pay, or lease these resources before they are needed.

Digging Deeper: Construction Trucking On-Demand

It followed that before the overarching problem of resource procurement could be solved, the industry needed a consistent and reliable way to transport these resources “on-demand”.

Every contractor can recall many days (and nights) where another load could have increased productivity for the day. When a construction crew has what it needs, margins increase – that is the bottom line.

An $18+ Billion Industry in the Dark Ages: Why in the year 2015, were contractors still spending countless hours calling down lists of independent truck owners, haggling back and forth on rates, and matching up paper time slips and invoices?

Why were crews sitting around idle while on the clock, helplessly waiting for the next truck to return with a piece of equipment, or a load of asphalt?

Amidst the viral adoption of smartphones, the solution seemed obvious.

Building TruckTap: A Technology Solution

In February 2015, Rich leaped into action, pulling together a team of web and app developers to begin building what would eventually become TruckTap. Several months into the project, he realized that managing costs and controlling the outcome of this large scale technical development project was becoming difficult without a technical background.

Trucks loading up at an aggregate plant.

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JULY, 2016

He reached out to his cousin Michael Saccone, an experienced software developer, who was working in New York City, programming banking algorithms for Goldman Sachs. Michael had extensive technical knowledge, and saw TruckTap as a once in a lifetime opportunity to put his technical expertise to use in the industry in which he too had grown up. He saw the potential to create tremendous value for contractors and truckers – beginning right here in New England.

Together, Rich and Michael restructured the development team, held focus groups with industry leaders, and began rebuilding the system to spec from the ground up. By the end of October 2015, TruckTap was ready for launch – consisting of a web portal for contractors (TruckTap.com), native mobile applications (iPhone and Android) for truckers to accept jobs, and a state-of-the-art backend system, capable of handling anything the industry could throw at it.

Beta Launch

On November 1, TruckTap was officially open for business. The Fall of 2015 was a hectic time, with contractors rushing to finish up jobs for the year, and there was a shortage of trucks in the Boston area.

With a team of four in the office, the TruckTap marketing team had their hands full, reaching out to contractors in Massachusetts, raising awareness of our rapidly growing network of dump trucks, available for dispatch with the click of a button from TruckTap.com.

Facing a host of new challenges in the first couple of months, the TruckTap beta launch began to wind down in mid-December, with dozens of satisfied contractors oncontinued on page 39

The trucker page on the TruckTap app helps find available jobs opportunities.

The contractor portal allows you to schedule jobs and offers real time monitoring.

JULY, 2016

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TruckTap Instant Access to Over 300 Truckers in The Boston Area - Reach Truckers Instantly - No More Invoices - Real Time Tracking/Notifications Schedule Now at TruckTap.com!

101 Federal St. Ste. 1900 Boston, MA 02110 | (617) 906-8789 | support@trucktap.com 38

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

JULY, 2016

TruckTap continued from page 37 board, and hundreds of truckers anxiously awaiting the next season when they could continue accepting jobs through TruckTap.

Off to the Races

After a busy Winter spent reaching out to contractors and fine tuning the technology, TruckTap got off to a solid start in the Spring of 2016. Contractors who used the service last year returned to use it again. Dozens of new contractors have signed up and are using TruckTap to hire independent trucks on a regular basis. There are now more than 700 truckers available throughout southern New England.

“Truck requests are being filled in record time, usually in a matter of minutes. Most contractors never imagined it could be this easy. Technology can do amazing things,

and it is great to see the construction industry finally embracing it,” said Rich.

Customers have gone as far as to call TruckTap a “lifesaver” with one contractor stating, “I honestly don’t know what we would have done without it.” As the platform gains widespread use throughout the New England region, Rich and Michael are already working on vertical integrations, and expansion into other areas of the country.

“We expect our technology to evolve to the point where procuring and managing all resources on a job site is as easy and instantaneous as hiring trucks through TruckTap,” said Michael.

The owners are glad to have had the opportunity to launch here in New England, and look forward to taking an increasingly active role in the New England construction community.

UCANE is proud to count TruckTap as a member of our Association. Our officers, board, and staff would like to congratulate the Saccone family and wish them continued growth and success in the future. n Truck requests are being filled in record time, usually in a matter of minutes. Most contractors never imagined it could be this easy. Technology can do amazing things, and it is great to see the construction industry finally embracing it. ~ Richard Saccone, CEO and Founder

We expect our technology to evolve to the point where procuring and managing all resources on a job site is as easy and instantaneous as hiring trucks through TruckTap.

~ Michael Saccone, CTO and Co-Founder

JULY, 2016

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Test Results Confirm Water Quality is Excellent Throughout the month of June, the Massachusetts Water Resources Authority will be mailing its Annual Water Quality Report to every household in its service area.

For 2015, as a system, MWRA again met every federal and state drinking water standard, including lead. The hundreds of thousands of tests taken during the year confirm that the quality of MWRA’s water is excellent.

With all the recent stories about lead, MWRA wants to assure customers that their water is safe. This year, the report includes additional pages with information on lead in drinking water and ways to minimize your risks. MWRA has also made $100 million in zero-interest loans available to its member cities and towns to remove remaining lead service lines in their communities.

“We hope our customers take a few moments to read this report,” said MWRA’s executive director Fred Laskey.

“The best way to ensure your safety is to stay informed. We have great confidence in the water we deliver to over 2 million customers and we want you to, as well.”

The report is distributed to over 850,000 homes in the MWRA service area as required under the federal Safe Drinking Water Act. Community-specific inserts also provide information about municipal water systems. The reports were mailed through the end of June.

This report and the reports from the Partially Supplied Communities and the Chicopee Valley Aqueduct Communities are available at www.mwra.com. continued on page 43

JULY, 2016

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MWRA continued from page 41 Dear Customer, You have probably seen many news reports about lead in drinking water over the last few months, particularly in Flint, Michigan. We want you to know that your water is safe. This year, we have added a few pages to this report so that you can find out as much about lead in drinking water as possible and learn how to minimize your risks.

Why Your Water Tastes Great - High Quality Source Water

Your water comes from the Quabbin Reservoir, about 65 miles west of Boston, and the Wachusett Reservoir, about 35 miles west of Boston. These pristine reservoirs supply wholesale water to local water departments in 51 communities. The two reservoirs combined supplied about 200 million gallons a day of high quality water to consumers in 2015.

The Quabbin and Wachusett watersheds are naturally protected with over 85% of the watersheds covered in forest and wetlands. To ensure safety, the streams and reservoirs are tested often and patrolled daily by the Department of Conservation and Recreation (DCR).

Rain and snow falling on the watersheds - protected land around the reservoirs - turn into streams that flow to the reservoirs. This water comes in contact with soil, rock, plants, and other material as it follows its natural path to the reservoirs. While this process helps to clean the water, it can also dissolve and carry very small amounts of material into the reservoir. Minerals from soil and rock do not typically cause problems in the water. But water can also transport contaminants from human and animal activity. These can include bacteria and pathogens - some of which can cause illness. The test data in this report show that these contaminants are not a problem in your reservoirs' watersheds.

The Department of Environmental Protection (DEP) has prepared a Source Water Assessment Program report for the Quabbin and Wachusett Reservoirs. The DEP report commends DCR and MWRA on the existing source water protection plans, and states that our “watershed protection programs are very successful and greatly reduce the actual risk of contamination.” MWRA follows the report recommendations to maintain the pristine watershed areas.

QUABBIN RESERVOIR

It is important for you to know that as a whole, the MWRA’s water system has been below the Environmental Protection Agency’s Lead Action Level for over a decade. 98% of the 2,300 samples tested over the last five years were below the Level. This system-wide success is the result of aggressive treatment to make the water less corrosive and thus less likely that lead will leach into the drinking water. While the water at the reservoirs and in the MWRA and local pipes is lead free, it is important to realize that there are still risks of elevated lead levels in certain homes and buildings in our service area. The issue in some homes is a lead service - the connection between the water main in the street and the home. There are roughly 28,000 homes in our service area that may still have lead water services. MWRA’s goal is to have all of those lead services removed to eliminate even the smallest chance that a child may get lead poisoning.

And we will continue to work with your local community on this important issue. The MWRA Board of Directors recently approved a $100 million, zero-interest loan program to replace lead service lines. In addition, the Governor has made $2 million available for lead testing in public schools.

There are many differences between our water system and Flint’s. Our water source – the Quabbin and Wachusett Reservoirs, are clean and well-protected; our treatment – MWRA utilizes state-of-the-art ozone and UV to disinfect the water without adding a lot of chemicals; and our people – the scientists, operators and managers who run the system, and the regulators that oversee the process, all work together to ensure your water is as safe as possible.

In addition to lead, MWRA takes hundreds of thousands of tests each year for 120 contaminants, and your water met every state and federal drinking water standard. Please read the letter on page 55 7 for more information on your community’s local water system.

We hope you take a few moments to read this report. The best way to ensure your safety is to stay informed. We have great confidence in the water we deliver to over 2 million customers and we want you to as well. Please contact us if you have any questions or comments about your water quality or any of MWRA’s programs.

Sincerely,

Frederick A. Laskey Executive Director MWRA Board of Directors Matthew A. Beaton, Chairman • John J. Carroll, Vice-Chair • Joseph C. Foti, Secretary • Austin F. Blackmon Kevin L. Cotter • Paul E. Flanagan • Andrew M. Pappastergion • Brian Peña • Henry F. Vitale John J. Walsh • Jennifer L. Wolowicz

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MWRA continued from page 43 MONITORING WATER QUALITY IN REAL TIME – Your water is monitored by a state-of-the-art system in real time – 24 hours a day, seven days a week – to make sure it is free of contaminants.

This allows MWRA to respond to changes in water quality almost immediately.

Why Your Water Tastes Great Water Treatment

Clean, fresh water that tastes great – that’s what you expect when you take a drink of water, and that’s what the Massachusetts Water Resources Authority delivers right to your tap. Part of the reason that the water tastes so good is the MWRA’s state-of-the-artJohn J. Carroll Water Treatment Plant in Marlborough.

Since 2005, your water has been treated with ozone - produced from pure oxygen. Ozone has ensured strong protection against microbes and viruses, improved water clarity, and makes the water taste better. In 2014, we also started adding ultraviolet (UV) disinfection, further improving the quality of water. UV light is essentially a more potent form of the natural disinfection from sunlight, and ensures that any pathogens potentially in our reservoirs are rendered harmless.

In addition, fluoride is added to promote dental health and the water chemistry is adjusted to reduce corrosion of home plumbing. Last, we add monochloramine, a mild and long-lasting disinfectant combining chlorine and ammonia to protect the water as it travels through miles of pipelines to your home.

Testing Your Water - Every Step of The Way

Test results show few contaminants are found in the reservoir water. The few that are found are in very small amounts, well below EPA's standards.

Turbidity (or cloudiness of the water) is one measure of overall water quality. All water must be below 5 NTU (Nephelometric Turbidity Units), and water can

only be above 1 NTU if it does not interfere with effective disinfection. In 2015, turbidity was always below both the 5.0 and 1.0 NTU standards, with the highest level at 0.65 NTU. Typical levels at the Wachusett Reservoir are 0.3 NTU. MWRA also tests reservoir water for pathogens such as fecal coliform, bacteria, and the parasites Cryptosporidum and Giardia. They can enter the water from animal or human waste. No Cryptosporidium or Giardia was detected in 2015.

FACTS ABOUT SODIUM Sodium in water contributes only a small fraction of a person’s overall sodium intake (less than 10%). MWRA tests for sodium monthly and the highest level found was 32.4 mg/L (about 9 mg per 8 oz. glass). This would be considered VERY LOW SODIUM by the Food and Drug Administration.

Test Results - After Treatment

EPA and state regulations require many water quality tests after treatment to check the water you are drinking. MWRA conducts hundreds of thousands of tests per year for over 120 contaminants (a complete list is available on www.mwra.com). Details about 2015 test results are in the table below. The bottom line is that the water quality is excellent.

TEST RESULTS AFTER TREATMENT (WE FOUND) (MCL) HIGHEST DETECTED LEVEL- RANGE OF LEVEL (MCLG) AVERAGE UNITS DETECTIONS IDEAL GOAL VIOLATION HOW IT GETS IN THE WATER ALLOWED COMPOUND 2 Common mineral in nature 2 ppm No 0.008-0.009 0.008 Barium 4-MRDL Water disinfectant 4-MRDLG ppm No 0-3.8 1.9 Monochloramine 4 Additive for dental health 4 ppm No 0.59-1.08 1.02 Fluoride 10 Atmospheric deposition 10 ppm No 0.01-0.08 0.08^ Nitrate 1 Byproduct of water disinfection 1 ppm No 0-0.005 0.005^ Nitrite 80 Byproduct of water disinfection ns No 6.4-19.1 13.5 Total Trihalomethanes ppb 60 Byproduct of water disinfection ns ppb No 0-15.8 10.7 Haloacetic Acids-5 5% Naturally present in environment 0 % No ND-0.7% 0.7% (Sept) Total Coliform 5 Erosion of natural mineral deposits 0 pCi/L No ND-1.76 1.76 Combined Radium* KEY: MCL=Maximum Contaminant Level. The highest level of a contaminant allowed in water. MCLs are set as close to the MCLGs as feasible using the best available technology. MCLG=Maximum Contaminant Level Goal. The level of contaminant in drinking water below which there is no known or expected risk to health. MCLGs allow for a margin of safety. MRDL=Maximum Residual Disinfectant Level. The highest level of a disinfectant allowed in drinking water. There is convincing evidence that addition of a disinfectant is necessary for control of microbial contaminants. MRDLG=Maximum Residual Disinfectant Level Goal. The level of a drinking water disinfectant below which there is no known or expected health risk. MRDLGs do not reflect the benefits of the use of disinfectants to control microbial contamination. ppm=parts per million ppb=parts per billion ns=no standard ND=non detect ^=As required by DEP, the maximum result is reported for nitrate and nitrite, not the average. *Result from 2014

continued on page 47 2

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45

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JULY, 2016

MWRA continued from page 45 TAKING ADVANTAGE OF GRAVITY – MWRA operates 3 hydroelectric generators that capture the energy of the water as it flows east providing $1.5 million in renewable energy annually.

Meadow on top of Spot Pond Covered Storage Tank in Stoneham

Covered Storage Keeps Water Safe and Clear

In November 2015, MWRA turned on its new Spot Pond Covered Storage Tank in Stoneham. The 20 million gallon water storage facility and pump station provides storage for Charlestown, Chelsea, Everett, Malden, Medford, and Somerville and system redundancy for 21 communities. A meadow planted on top of the buried tanks provides open space and public access adjacent to Fells Reservation.

Over the last 10 years, MWRA has constructed a network of covered storage tanks across the service area that keep your water protected from the treatment plant all the way to your tap. The tanks replace a 100-year-old system of open reservoirs.

Many of the original, open reservoirs are still maintained for emergency use.

Pipeline Rehabilitation

MWRA continues to rehabilitate and replace older pipelines throughout the distribution system to improve both reliability and water quality.

MWRA has also provided zero-interest loans to communities for local pipeline projects since 1998. In 2015, nearly $20 million was loaned to communities for 18 projects including the replacement of over 17 miles of older unlined pipes with new lined water pipes.

Water System Redundancy

Plans for water system redundancy (or parallel ways to deliver water) go back to the 1930s, but like many infrastructure projects, they were filed away after World War II and nearly forgotten. MWRA has been working on a number of projects over the last several years that continue to improve the agency’s flexibility and emergency response capabilities by being able to reroute water flows in order to take a pipeline out of service for repairs or ensure adequate service after a break. The Wachusett Aqueduct Pump Station under construction in Marlborough will provide redundancy from the reservoir to the Carroll Water Treatment Plant.

In the distribution system, major redundancy projects are ongoing north and south of Boston.

Wachusett Aqueduct Pump Station (Under Construction)

continued on page 49 3

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47

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MWRA continued from page 47 WITH ALL THE NEWS about lead in drinking water, you may have some concerns about the safety of your tap water. The MWRA system has been below the Lead Action Level for over a decade.

Of the 2,300 samples taken in the last 5 years, 98% were below this 15 ppb level.

You Have Questions.

We Have Answers.

What You Need to Know About Lead in Tap Water

MWRA water is lead-free when it leaves the reservoirs. MWRA and local pipes that carry the water to your community are made mostly of iron and steel and do not add lead to the water. However, lead can get into tap water through pipes in your home, your service line if it is made of lead, lead solder used in plumbing, and some brass fixtures. Corrosion or wearing away of lead-based materials can add lead to tap water, especially if water sits for a long time in the pipes before it is used.

In 1996, MWRA began adding sodium carbonate and carbon dioxide to adjust the water's pH and buffering capacity.

This change has made the water less corrosive, thereby reducing the leaching of lead into drinking water. Lead levels found in tests of tap water have dropped by over 90 percent since this treatment change. # Home SEPT. 2015 (Target) (Ideal Above AL/# LEAD & COPPER 90% Action Goal) Homes RESULTS Tested Range Value Level MCLG 0 11/453 15 0-584 6.2 Lead (ppb) 0 1/453 1.3 0-2.3 0.1 Copper (ppm)

MWRA Meets Lead Standard in 2015

Lead Levels (ppb)

Under EPA rules, each year MWRA and your local water department must test tap water in a sample of homes that are likely to have high lead levels. These are usually homes with lead service lines or lead solder. The EPA rule requires that 9 out of 10, or 90%, KEY: AL=Action Level-The concentration of a contaminant which, if exceeded, triggers treatment or other requirements which a water of the sampled homes must have lead levels below system must follow. Definition of MCLG available on page 45.

2. the Action Level of 15 parts per billion (ppb).

All 20 sampling rounds over the past twelve years have been below the EPA standard. Results for the 453 samples taken in September 2015 are shown in the table. 9 out of 10 houses were below 6.2 ppb, which is below the Action Level of 15 ppb. Only two communities had more than one home test above the Action Level for lead. If you live in these communities, your town letter will provide you with more information.

16 14 12 10 8 6 4 2 0

90% LEAD LEVELS IN MWRA SYSTEM OF FULLY SERVED COMMUNITIES 14

13

Lead Action Level=15 ppb

13 11

10 8

8

8

8 7

7

7

7

6

4

5

6

Sept. March Sept. March Sept. March Sept. March Sept. March Sept. March Sept. Sept. Sept. Sept. Sept.

2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2013 2014 2015

IMPORTANT INFORMATION FROM EPA ABOUT LEAD If present, elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is primarily from materials and components associated with service lines and home plumbing. MWRA is responsible for providing high quality drinking water, but cannot control the variety of materials used in plumbing components.

If your water has been sitting for several hours, you can minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water for drinking or cooking. If you are concerned about lead in your water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you can take to minimize exposure is available from the Safe Drinking Water Hotline at 1-800-426-4791 or www.epa.gov/ safewater/lead.

What Can I Do to Reduce Exposure in Drinking Water?

Let the water run before using: fresh water is better than stale! To save water, fill a pitcher with fresh water and place in the refrigerator for future use.

Any time water has gone unused for more than 6 hours, run each faucet used for drinking or cooking until after the water becomes cold.

Never use hot water from the faucet for drinking or cooking, especially when making baby formula or other food for infants.

Check your plumbing fixtures to see if they are lead-free.

Read the labels closely.

4

JULY, 2016

Remove loose lead solder and debris.

Every few months remove the aerator from each faucet in your home and flush the pipes for 3-5 minutes.

Be careful of places you may find lead in or near your home. Paint, soil, dust and some pottery may contain lead.

Call the Department of Public Health at 800-532-9571 or EPA at 800-424-LEAD for health information.

continued on page 51

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49

New England’s Premier Precaster!

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MWRA continued from page 49 DID YOU KNOW? Most cases of lead poisoning are from contact with peeling lead paint and lead paint dust. But drinking water exposed to lead can increase a person’s total lead exposure. This is particularly a concern for infants or pregnant women.

MWRA PROGRAM TO REPLACE LEAD SERVICE LINES To help communities in removing lead service lines, MWRA’s Board of Directors has approved a program to make available $100 million in zero-interest loans to its member communities to fully replace lead service lines.

Under the program, each community would develop its own program, tailored to their local circumstances. More details on this program will be available later this year.

The Commonwealth of Massachusetts is also making $2 million available for lead testing in schools.

What Do I Do If I Have A Lead Service Line?

What is a Lead Service Line? What is the Concern?

A service line is the pipe that connects your house to the water main in the street. Some service lines that run from older homes (constructed before 1940) are made from lead. Many of these older service lines have been replaced, but some remain.

These service lines are the main source of lead in tap water in homes that have them. Therefore, removing lead service lines is a priority to reduce the potential for lead exposure, particularly if a pregnant woman or child lives in your home.

WATER SERVICE LINES – OLD AND NEW You can identify lead service line by carefully scratching with a key.

How Do I Replace My Lead Service Line?

If you have a lead service line, you should consider replacing it. Many communities have programs to help with the replacement cost. Removing the whole lead service line is important. It is the only way to ensure that your service line will not be adding lead to your water. Partial replacements which remove only the portion in the street - do not lower lead levels, and in many cases, can actually increase lead levels.

How Much Does It Cost?

The cost of service line replacement depends on the length of the service line, the construction method, and where the service line is located.

Please contact your local water department to learn more about options for lead service line replacement and any possible payment assistance.

RESIDENTIAL WATER SERVICE LINE connects your house to the water main which runs under your street.

New Copper Service Line How do I Tell If I Have a Lead Service Line?

Go into your basement and locate your service line.

Lead service lines are generally a dull gray color and very soft. You can identify one by carefully scratching it with a key. If the pipe is made of lead, the area you've scratched will turn a bright silver color. Do not use a knife or other sharp instrument and take care not to puncture a hole in the pipe. Contact your local water department for more information.

Property Line

Property Line Water Service Line Water Main

How Do I Get My Home’s Tap Water Tested For Lead?

The best way to find out if your household tap water contains lead is to contact your local water department. Contact information is on page 7. You can also visit the lead testing page at www.MWRA.com or call MWRA at 617-242-5323.

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51

Protect your crew and a whole lot more.

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MWRA continued from page 51 MWRA TAKES CUSTOMER CONCERNS SERIOUSLY – Every call is investigated to ensure that there are no problems with the water supply. Most complaints are related to discolored water, which is usually related to local construction or hydrant use. If you have a question or concern about your water, please call your local water department or MWRA at 617-242-5323.

SAME GREAT SOURCE – PROTECTED

BY TREES AND REGULATIONS MWRA has been using the Quabbin Reservoir for 70 years and it still is providing great water. This is thanks to the well-protected watersheds, the MWRA and DCR staff, as well as the state regulators who keep a close eye on making sure the water meets all standards.

Tests in Community Pipes

departments test 300 to 500 water samples each week for total coliform bacteria. Total coliform bacteria can come from the intestines of warm-blooded animals, or can be found in soil, plants, or other places. Most of the time, they are not harmful.

However, their presence could signal that harmful bacteria from fecal waste may be there as well. The EPA requires that no more than 5% of the samples in a month may be positive. If a water sample does test positive, we run more specific tests for E.coli, which is a bacteria found in human and animal fecal waste and may cause illness. No E.coli was found in any MWRA community in 2015. If your community found any total coliform, it will be listed within the community letter 55. on page 7.

Drinking Water and People with Weakened Immune Systems

Some people may be more vulnerable to contaminants in drinking water than the general population.

Immuno-compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV/AIDS or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advice about drinking water from their health care providers. EPA/CDC guidelines on appropriate means to lessen the risk of infection by Cryptosporidium and other microbial contaminants are available from the EPA's Safe Drinking Water Hotline (1-800-426-4791).

amounts of some contaminants. The presence of contaminants does not necessarily indicate that water poses a health risk. More information about contaminants and potential health effects can be obtained by calling the EPA’s Safe Drinking Water Hotline (1-800-426-4791) or MWRA. In order to ensure that tap water is safe to drink, the Massachusetts DEP and EPA prescribe regulations which limit the amount of certain contaminants in water provided by public water systems. The Food and Drug Administration (FDA) and the Massachusetts Department of Public Health regulations establish limits for contaminants in bottled water which must provide the same protection for public health.

Research for New Regulations

MWRA has been working with EPA and other researchers to define new national drinking water standards by testing for unregulated contaminants.

To read more about these regulations, and to see a listing of what was found in MWRA water, please visit www.mwra.com/UCMR/2015.html.

FLUSH YOUR TAP! It is always best to use fresh water for drinking or cooking.

If the water has been sitting for some time, you should flush your tap until the water is consistently cold. To promote conservation, fill a pitcher with fresh water and place in the refrigerator for future use.

INFORMATION ABOUT CROSS CONNECTIONS Massachusetts DEP recommends the installation of backflow prevention devices for inside and outside hose connections to help protect the water in your home as well as the drinking water system in your town. For more information, please visit www.mwra.com/crosscon.html.

Contaminants in Bottled Water and Tap Water Drinking water, including bottled water, may reasonably be expected to contain at least small

continued on page 55 6

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53

Whether you’re gearing up for a new project or selling machines from your fleet, count on Ritchie Bros. We’re the world’s largest industrial auctioneer for one reason—we do auctions right. ▸ Every item sells to the highest bidder on auction day ▸ Secure yards for buyer inspections ▸ Hassle-free, all-inclusive service for sellers ▸ Both on-site and online bidding ▸ Financing, shipping, refurb and other services

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Talk to me about selling at our next Manchester auction: July 26 Josh Knott Regional Sales Manager 1.617.512.7916 jknott@rbauction.com

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MWRA continued from page 53

INFORMATION FROM your local water department

City of Boston BOSTON WATER AND SEWER COMMISSION

Public Water Supply # 3035000

Dear Customer: This report contains an annual update on the quality of drinking water supplied to you by the Boston Water and Sewer Commission (BWSC),

to Boston exceeds both federal and state quality standards.

-

In 2015, BWSC received the

supply safe drinking water to Boston.

To assure quality and regulatory compliance, BWSC maintains a comprehensive program to sample its tap water. EPA requires that no more All water samples taken in 2015 were clear of total coliform.

tests homes regularly each year, and is pleased to report that since 2007, the Boston lead sampling results have remained below the EPA replace lead service lines, thereby improving overall water quality.

Lead Hotline at (617) 989-7888 or visit BWSC’s website at www.bwsc.org.

Services Department at (617) 989-7000.

Sincerely,

Henry F. Vitale

JULY, 2016

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55

ATS Equipment Inc. Opens New Facility in Rehoboth, Massachusetts

O

(L-R): John Connolly, Jr.; John Connolly, Sr.; Stephen Connolly; and Brian Connolly

JULY, 2016

n Thursday, June 9, ATS Equipment, Inc. opened their new expanded showroom and repair facility in Rehoboth, Massachusetts, just a few miles from the former facility in East Providence, RI. The new shop, located at 51 Fall River Avenue, Route 6, next to J&J Materials, has a fully stocked parts department, larger showroom space, and several spacious service bays. It will enable ATS to continue to provide exemplary service to the South Coast and all of Rhode Island.

According to Stephen Connolly, “ATS was honored to have the support of the Town of Rehoboth and Commonwealth of Massachusetts representatives throughout the permitting and construction process. Their professionalism expedited the whole experience.” ATS is a new dealer in Massachusetts and Rhode Island for Kobelco excavators, Hydrema wheeled excavators, and Kawasaki wheel loaders, adding to their extensive lines of Honda generators, Stihl saws and tools, Tsurumi pumps, and Atlas Copco compressors. ATS offers full service on all equipment it rents and sells with factory-trained, experienced mechanics and genuine parts.

Guests faced off in an excavator competition, participated in vendor prize raffles, and enjoyed a wonderful catered meal.

ATS plans to hire several new mechanics and salesmen throughout New England and is exploring further growth into the state of Connecticut.

ATS President John N. Connolly stated, “My co-workers are the reason for our success and the reason that ATS continues to grow in the Northeast.” He continued, “We are proud of the success of our customers and try to work with them every step of the way.”

The 30-year-old, family-owned and owneroperated business boasts additional branches in Boston and Auburn, Massachusetts, and Candia, New Hampshire, serving all of New England.

ATS Equipment Inc. – Service the Way It Used to Be! n

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Asphalt Paving • Culverts / Bridges Bike Paths / Sidewalks • Excavating / Site Development Sand / Gravel / Stone Products • Hot Mix Asphalt / Cold Patch Lawrence-Lynch Corp.

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groups.

other cancers.

Talan Keough 5 years old Acute Lymphoblas Leukemia (ALL)

ChaMPi nS The Leukemia & Lymphoma Of hOPe gala Society of Massachusetts Announces 2016 Man & Woman of the Year at the Champions of Hope Gala

— 2013 Man &

May 22, 2014 Seaport Hotel & World Trade Center

Thomas Fitzpatric Worcester, MA Saint-Gobain Corpora

— lOC

In Just 10 Weeks, Six Outstanding Individuals Raised Over Sponsorship Opportunities $611,000 for Lifesaving Cancer Research

P

O

nce again this year, the Leukemia & Lymphoma Society of Massachusetts (LLS) combined two important fundraising events, “Gala for a Cure” and “Man and Woman of the Year” into one hugely successful event, the “Champions of Hope Gala”, which raised over $611,000.

Six candidates were tasked with raising as much money as possible to advance the LLS mission. The top fundraisers would be named 2016 Man and Woman of the Year. For their efforts, Christopher Foy of Boston and Mary Guzek of Charlestown were named this year’s winners.

Sponsors of the “Gala” included Dana-Farber Cancer Institute, Boston’s Best Coffee Roasters, and Boston Magazine.

UCANE Past President Al Morteo and his wife Rosemary were instrumental in starting “Gala for a Cure” seven years ago, and since that time they have helped raise more than $2.5 million for LLS. These funds aid the doctors at Dana-Farber Cancer Institute to continue their research to find the ultimate cure for leukemia, lymphoma, Hodgkin’s lymphoma, and myeloma and to improve the quality of life for patients and their families.

Al’s direct involvement in LLS began in 2008.

His younger brother Albert had been battling Acute Myelogenous Leukemia since 2004, and his cousin Frankie was diagnosed with Chronic Myelogenous Leukemia in January 2006. Al was asked to run as a candidate for “Man of the Year” and quickly accepted the nomination. In May, he won the title of “2008 Man of the Year.” In April, during the campaign Al’s cousin passed away, and then in September, his brother Albert passed

JULY, 2016

Pre

For mo The Leuke call 508-810-1

UCANE Past President Al Morteo (FED. CORP.) and his wife Rosemary

away. This only solidified Al and Rosemary’s commitment to fundraising in an effort to support the doctors trying to find a cure for these dreaded diseases.

UCANE, which has supported LLS for over 37 years, was proud to support both events and would like to congratulate Al and Rosemary, and all the Man and Woman of the year candidates, as well as the staff and volunteers who helped raise the funds necessary to support the researchers in finding a cure for leukemia and other related blood diseases. n

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...IT’S ALWAYS A GOOD IDEA TO PROTECT YOUR BIGGEST ASSET

Providing adequate coverage but keeping cost at a minimum, and working with YOU to manage the risks associated with running a construction company Peter Jacavone • Pjacavone@Starshep.com Robert Barresi • Rbarresi@starshep.com 401-435-3600 www.starshep.com

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Gregory R. Keelan

President/Owner Cell: 617-943-8348 (Anytime) 60

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Article provided by Eastern Insurance Group, LLC’s “Client Resource Center” powered by Zywave.

John Berksza

Eastern Insurance Group, LLC

Recognizing and Preventing On-Site Violence Although we all do our best to keep the workplace safe, violence by an outsider or between employees remains a serious safety and health issue. It can occur inside or outside the workplace, and can range from threats and verbal abuse to physical assaults and homicide. In fact, according to the U. S. Department of Labor (DOL), workplace violence is consistently a top five cause of fatal occupational injury in our country.

T

empers can flare and lead to violent behavior at any time. Construction and contracting workplaces are particularly hazardous because of the dangerous conditions that are inherently a part of the work environment, including working at height, and power tools, which can ultimately be used as weapons.

Safety is a top priority. Emphasize a Workplace Violence Prevention Program that does not tolerate threats, bullying, harassment, or any other form of violence. Understanding your risk and taking steps to protect yourself will help keep you safe.

Identifying Your Risk Workplace violence can include actions or words that endanger or harm you, or result in other workers believing that they may be in danger, including: • Verbal or physical harassment • Verbal or physical threats • Assaults or other violence • Any other behavior that causes you to feel unsafe (bullying or sexual harassment)

Staying Safe Nothing can guarantee that you will not become a victim of workplace violence, but you do have the right to expect a workplace that promotes safety from

JULY, 2016

violence, threats, and harassment. Taking steps to help prevent violence in the workplace contributes to the safety measures and other efforts. Such safety measures are as follows: • Become aware of and report violent or threatening behavior by co-workers or other warning signs.

• Take all threats seriously.

• Follow procedures established by a Workplace Violence Prevention Program, including those for reporting incidents.

• Learn how to recognize, avoid or diffuse potentially violent situations by attending personal safety training programs. continued on page 63

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JULY, 2016 NOVEMBER, 2009

Safety Corner continued from page 61 • Alert supervisors to any concerns about safety or security, and report all incidents immediately in writing.

• Avoid traveling alone to unfamiliar locations or being in unusual situations whenever possible.

Stay Alert It is of utmost importance to stay alert and aware of any potentially dangerous behavior. Make sure that you are effectively trained in conflict resolution and methods of handling a potentially dangerous situation. Adhere to all safety policies and be aware of hazards to reduce your risk of being involved in volatile situations that could escalate to dangerous physical violence.

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12/11/09 3:13:09 PM PM 12/11/09 3:13:09

JULY, 2016

John E. Merchant, CPA IN THIS ISSUE

Cullen, Murphy & Co., P.C.

• What the New Federal Fiduciary Rule Means to Investors • ETFs Can Be Plain or Fancy • Disaster Planning Versus Succession Planning

Smart Tax, Business & Planning I

What the New Federal Fi What the New Federal Fiduciary Rule Means to Investors

I

Means to Investors

n April, the U.S. Department of Labor (DOL) made headlines with its final rule covering conflicts of interest among investment advisers. Media coverage focused on the difference between a “fiduciary” standard and a “suitability” standard. Financial advisors and investment firms have been debating this issue—often heatedly—for years, and the DOL action probably will bring about changes within the industry.

The new rules also have a message for investors, especially those who rely upon an advisor. This lesson may not be astounding but it’s worth keeping in mind: You should know what investment advice is costing and whether you’re getting your money’s worth.

DOL’s responsibility, that agency issued the rule In April, the U.S.soDepartment of Labor on retirement advice.)

(DOL) made headlines with its final When issuing its final rule in April, the DOL came rulefirmly covering conflicts of interest among down in favor of the fiduciary standard, stating that “persons who provide investment advice or investment advisers. Media coverage recommendations for adifference fee or otherbetween compensation with focused on the a respect to assets of a plan or IRA” will be treated “as “fiduciary” a “suitability” fiduciaries in a standard wider arrayand of advice relationships.”

standard. Financial advisors and Digging Deeper investment firms have been debating this Investors should keep in mind that the DOL rule Investment advisors who are registered with the issue—often years, andTherethe covers retirement heatedly—for advice, not all investments.

SEC are considered fiduciaries: They have an obliDOL action probably bringrecommendaabout fore, this regulation applies towill advisors’ gation to act in a client’s best interest. Alternatively, tions for IRAs, 401(k)s, and other retirement accounts. registered representatives associated with a securichanges within the industry.

When Wendy Jones seeks advice on how to invest ties brokerage firm are required to make investment The new rules also have a message in a regular (nonretirement) account, the DOL rule recommendations that are suitable for a particular for apply, investors, especially those whowho relyadhere won’t at least not directly.

Advisors client, given the client’s circumstances. (Registered to upon a fiduciary standard for retirement advice investment advisors are fiduciaries under the Investan advisor. This lesson may notmay well follow the same approach for other client funds. ment Advisors Act of 1940 but not under ERISA, the be astounding but it’s worth keeping federal law covering retirement plans; ERISA is the continued on in page 67 mind: You should know what investment advice is costing and whether you’re JULY, 2016 “BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” 65 getting your money’s worth.

Defining the Terms

They hav best inter represent securities make inv are suitab the client investme the Inves but not u covering the DOL issued th When the DOL of the fid “persons or recom compens plan or IR in a wide

Digging

Investors DOL rul all invest applies to for IRAs accounts

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Financial Management continued from page 65 Moreover, the DOL clearly associates investors’ best interests with low costs. The DOL repeatedly has mentioned “backdoor payments” and “hidden fees” as factors that harm American workers and their families.

Lowering fees would boost returns, the DOL asserts.

Investment Implications

the advisor in some manner. Therefore, you should know how much you’re actually paying, so read all contracts, engagement letters, and other documents carefully to find out the true cost.

Second, realize that low costs aren’t everything.

Ascertain what value you’re getting for what you pay.

Is your advisor providing only investment advice? If so, what results have you received? Many financial professionals go beyond investments to insurance planning, education planning, estate planning, and other areas of wealth management. If you have such an advisor, does the total package provided to you justify the total amount of your outlays? If you are not comfortable with the answers, you may have to seek someone else to help you handle your financial Boston Area matters.

Locations continued on page 69

Some observers believe that the federal support of a fiduciary standard will result in more advisor support of passive investment strategies and less emphasis on active management. Also, sales commissions may yield ground to fee-based advisory arrangements.

Both of those assertions may come to pass, but both trends are already well under way. Passive investing generally means holding 2 Dexter Street funds that track a market index, Everett, MA 02149 Boston Area such as the S&P 500. Such funds Boston Area Locations typically have relatively low costs, Locations 431 Second Street as there is no need to pay for reEverett, MA 02149 2 Dexter Street 2 Dexter Street search into security selection, and

Everett, MA 02149 Everett, MA 02149 relatively low tax bills, because of infrequent trading.

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as finding fund managers who 2 Dexter Street 431 Second Street consistently outperform the indexEverett, MA 02149 Everett, MA 02149 es has proven to be challenging.

In recent years, exchange-traded funds (ETFs) have taken market share from mutual funds; most ETFs track a specific market index.

Thus, many advisors and clients have been moving towards such low-cost, tax-efficient approaches.

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Financial Management continued from page 67

F

ETFs Can Be Plain or Fancy

rom virtually nowhere, exchangetraded products have grown to over $3 trillion in assets. A small portion of these products are exchange-traded notes (ETNs), but most are exchangetraded funds (ETFs): typically, pools of securities that trade like stocks.

A large amount of ETF assets, in turn, are in funds that track major stock market indexes such as the S&P 500 and the NASDAQ 100, as well as small-company indexes, foreign stock indexes, and so on. These ETFs tend to be low cost and tax efficient, so many supporters of a fiduciary standard for advisors (see the article,“What the New Federal Fiduciary Rule Means to Investors” in this issue) believe that the new rules favor ETFs as being in the best interests of many investors. Indeed, one Morningstar analyst has

asserted that an estimated $1 trillion of investment assets will shift into ETFs. Outside the Box However, not every ETF is a low-priced proxy for a major index. As ETFs have proliferated, they’ve spread into what seems to be every nook and cranny an investor might want to explore. For example, there are ETFs that track an energy stock index, ETFs that track exploration and production companies, even ETFs that track crude oil futures. There are ETFs that track specific foreign currencies, high-yield foreign bonds, certain hedge fund strategies, and so on.

In recent years, leveraged and inverse ETFs have gained popularity. Leveraged ETFs may be known as 2x or 3x ETFs, meaning that they move two or three times as much as the underlying index or commodity price or some other baseline.

Example 1: Ann Benson buys a 2X ETF that tracks the S&P 500. If that index goes up 5%, Ann’s ETF goes up by 10%. If the S&P 500 drops by 5%, Ann’s ETF suffers a 10% price drop. continued on page 71

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Financial Management continued from page 69 Inverse ETFs move in the opposite direction of their benchmark.

Example 2: Carl Davis buys an inverse ETF that tracks the NASDAQ 100. If that index goes up 5%, Carl’s ETF goes down by 5%. If the NASDAQ 100 drops by 5%, Carl’s ETF enjoys a 5% price gain.

Some ETFs are both leveraged and inverse.

Thus, they move in the opposite direction of the benchmark and those moves are magnified two or three times.

Example 3: Eve Foster buys a 2X inverse ETF on the Russell 2000 index of small company stocks.

If that index goes up 5%, Eve’s ETF goes down by 10%. If the Russell 2000 drops by 5%, Eve’s ETF enjoys a 10% price gain.

Daily Divergence The preceding examples are simplified. In the real world, leveraged and inverse ETFs are more complex because these ETFs typically are reset daily. Over time, the results produced may vary widely from expectations.

Example 4: Suppose Eve Foster invests $10,000 in a 2X inverse ETF on the Russell 2000, as in example 3, and the index gains 5% on Monday, from 1100 to 1155. Eve’s 2X inverse ETF falls by 10%, from $10,000 to $9,000.

Now suppose the index falls back to 1100 on Tuesday. That’s a 4.76% drop, from 1155 to 1100, so Eve’s 2X inverse ETF gains twice as much— 9.52%—from $9,000 to $9,857. In the two-day period, the underlying index is back to where it started, but Eve’s 2X inverse ETF has lost value.

It’s true that stock market indexes seldom move 5% on a single day. However, moves of 1% or more occur with some frequency, and the principle is the same. Especially if such an ETF is held for an extended time period, the daily resets can cause the

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• Thus, advisors and plan sponsors can provide general financial and investment concepts on retirement saving with employment-based plans and IRAs without triggering fiduciary duties.

• For example, such education could consist of information about historic differences in rates of return among equities, bonds, or cash, based on standard market indexes.

result from holding a leveraged or inverse ETF to diverge widely from the performance of the underlying benchmark.

Proceed with Caution Leveraged and inverse ETFs pose risks, but there are reasons that they have grown in popularity.

Used astutely, these ETFs might enable you to increase investment returns or hedge certain portfolio risks. If you work with a skilled advisor who is familiar with leveraged and inverse ETFs, you may be able to gain more control over your investments while boosting upside potential. continued on page 73

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leveraged and inverse ETFs are In recent years, leveraged and inverse ETFs have gained popularity. more complex because these ETFs Leveraged ETFs may be known as 2x typically are reset daily. Over time, the results or 3x ETFs, meaningManagement that they movecontinued Financial from produced page 71 may vary widely from expectations. two or three times as much as the Example 4: Suppose Eve Foster underlying index or commodity price invests $10,000 in a 2X inverse ETF or some other baseline.

B

you to increase investment returns or hedge certain portfolio risks. If you work with a skilled advisor who is familiar with leveraged and inverse ETFs, you may be able to gain more control over your investments while boosting upside potential. g

Disaster Planning Versus Succession Planning

usiness owners should have an Disaster Planning Versus exit strategy: a plan for the time when they’re either unwilling or Succession Planning unable to keep running their company.

Often, that planning can include a curdisaster relatively Businessrent owners should haveplan an exitfor term successionyoung plan for a futurepath long-term strategy:business a plan for theowners time whenand a smooth to retirement. they’re either unwilling orplan unablefor to a smooth path to succession Worst case scenarios keep running their company.

Often, retirement.

No matter how young or how that planning can include a current Worst Case Scenarios healthy you are, you’re not disaster plan for relatively young immune to tragedy.

Therefore, business owners and a future No matter how longyoung or how healthy you are, you’re not immune to tragedy. Therefore, business owners should have a disaster plan, which might be called a catastrophe plan or a continuity plan or something similar. Such a plan can protect you or your family in case of death or disability.

To understand why such a plan is vital, consider what might happen in its absence.

Example: John Smith, age 45, is the sole sharecontinued page 4a fatal holder of the successful John Smith Co.onAfter auto accident, his widow Jane inherits John’s shares.

3 At such a time, Jane will have to find a buyer and negotiate the terms of the sale. Jane may have a difficult time getting full value for this profitable business. continued on page 75

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Financial Management continued from page 73

plan should include disaster planning. For the longterm plan, John may prefer to have a different buyer than the buyer for the catastrophe plan. (The initial catastrophe plan can contain language allowing for cancellation of the agreement with written notice from the buyer or seller.)

In addition to catastrophe coverage, the longterm succession plan might have a schedule for John’s future participation in the company. Will John leave altogether, as of a certain date? Will he continue to work at the company for a certain or an indefinite time period? If he stays on, what responsibilities will he have? In some cases, the purchase price might be reduced, if John leaves the company altogether; a higher price might be agreed upon if John agrees to stay for a while, helping the company make the transition to new ownership.

A long-term succession plan also should cover taxes because certain deal structures can be more or less favorable to the seller.

Reprinted from CPA Client Bulletin. n

Alternatively, John might suffer a stroke and lose his ability to work full-time. In the absence of a disaster plan, John (or someone representing him) will have to relinquish control of the company and find some way to realize the value of the business he has built.

Buy-Sell Benefits To provide protection against such possible disasters, business owners and co-owners of all ages should have a buy-sell agreement in place. Such an agreement should identify the buyer, in case a sale becomes necessary, and specified events that will trigger the buyout. The agreement also should spell out how the price will be determined—it could be a multiple of cash flow or revenue, for instance.

If a company has two or more co-owners, a mutual buy-sell can be effective. For sole shareholders, such as John Smith in our example, finding a buyer may require some creativity. A key employee might be named, or even a competitor. Funding for a possible buyout might be provided through life and disability insurance.

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If all goes well, our hypothetical John Smith will remain healthy and active throughout his 40s and 50s. His company will continue to prosper. In his 60s, though, John might start to think about stepping down—or at least slowing down. At some point, John should begin working on a long-term succession plan for his retirement or semi-retirement.

Note that John should not ignore the chance of a catastrophe, at any age. Therefore, his succession

Manufacturer & Installer of Bituminous Concrete Products:

M.B.S. Construction Services/Paving Holden Trap Rock Co. 2077 N. Main Street (Route 122 A) Holden, MA 01520 Tel: 508-829-5353 Fax: 508-829-9346

Berlin Stone Co. 332 Sawyer Hill Rd. (off Rt. 62 & 495) Berlin, MA 01503 Tel: 978-838-9999 Fax: 978-838-9916

Did You Know?

I

n 2015, Atlanta’s airport became the first to top 100 million passengers in a calendar year, serving over 101 million travelers. Beijing’s airport was a distant second in the world, with nearly 90 million passengers last year.

The next busiest U.S. airports were those serving Chicago (No. 4 in the world, 76.9 million), Los Angeles (7th, 74.9 million), and Dallas-Ft. Worth (10th, 63 million).

Source: Airports Council International

JULY, 2016

Call Your Nearest GENALCO Warehouse For These Supplies WEATHER CAPS GREASE FITTINGS

STROBE LIGHTS

HYDRAULIC OIL

AIR CLEANERS BUCKET TEETH

HYDRAULIC HOSE

BUCKET LIPS

EQUIPMENT PAINT

BUCKETS

CUTTING EDGES

ROTARY ASPHALT CUTTERS

GRADE 8 NUTS & BOLTS

EXTREME PRESSURE GREASE

AIR, OIL & FUEL FILTERS

BACKUP BELLS AND ALARMS

CHAIN SLINGS

GENALCO inc. 1-877-436-2526 55 years of service to New England Industry Needham Heights, MA FAX 781-449-6643

So. Boston, MA FAX 617-268-1290

Springfield, MA FAX 413-781-3771

West Haven, CT Warwick, RI FAX 203-934-2580 FAX 401-736-9769

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

75

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

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

E

H

P

Equal Opportunity/Affirmative Action Employer

76

Advertisers’ Index APJ Equipment Corp..................................................... 58 ATS Equipment, Inc. .................................................... 56 Acme Shorey Precast Co., Inc...................................... 28 Aggregate Industries - N.E. Region.............................. 21 American Shoring, Inc.................................Ins. Back Cvr. Boro Sand & Stone Corp.............................................. 72 Dennis K. Burke, Inc..................................................... 27 C&S Insurance Agency................................................. 18 Concrete Systems, Inc.................................................. 12 Dagle Electrical Construction Corp............................... 44 Darmody, Merlino & Co., LLP........................................ 66 Dedham Recycled Gravel............................................. 23 DeSanctis Insurance Agency, Inc. ............................... 68 Diesel Direct, Inc........................................................... 73 Dig Safe System, Inc..................................................... 13 The Driscoll Agency ..................................................... 70 EJ.................................................................................. 16 Eastern Pipe Service, LLP............................................ 68 Eastern States Insurance Agency, Inc.......................... 64 Eastpoint Lasers, LLC................................................... 70 T. L. Edwards, Inc.......................................................... 66 Energi Insurance Services, Inc.................................... 4-7 Ferguson Waterworks................................................... 63 Foley Carrier Services, LLC.......................................... 15 Genalco, Inc.................................................................. 75 GEOD Consulting, Inc................................................... 63 L. Guerini Group, Inc..................................................... 74 HD Supply Const. & Industrial White Cap.................... 30 HD Supply Waterworks................................................... 2 A. H. Harris Construction Supplies............................... 66 Hinckley Allen LLP........................................................ 22 JESCO...........................................................................11 P. J. Keating Company.................................................. 10 P. A. Landers, Inc.......................................................... 71 Lawrence-Lynch Corp................................................... 58 Lorusso Corp................................................................. 64 Lorusso Heavy Equipment, LLC................................... 14 MBO Precast, Inc............................................................ 9 Mabey, Inc..................................................................... 54 Mass Broken Stone Company...................................... 75 Minuteman Trucks, Inc.................................................. 62 Norfolk Power Equipment, Inc...................................... 17 North American Crane & Rigging LLC.......................... 46 North East Shoring Equipment, LLC............................. 72 NorthStar Insurance Services, Inc................................ 48 Ocean State Oil............................................................. 64 Palmer Paving Corp...................................................... 31 E. H. Perkins Construction Co., Inc.............................. 76 Podgurski Corp............................................................. 70 E. J. Prescott, Inc....................................... Ins. Front Cvr. Rain For Rent-New England........................................... 8 Read Custom Soils ...................................................... 62 Ritchie Bros. Auctioneers............................................. 54 Rodman Ford Sales, Inc............................................... 42 Rogers & Gray Insurance............................................. 24 Schmidt Equipment, Inc.....................................Back Cvr. Scituate Concrete Products Corp................................. 40 Scrap-It, Inc................................................................... 67 Shea Concrete Products, Inc. ...................................... 50 SITECH Northeast........................................................ 26 Smith Print..................................................................... 74 Southern Redi-Mix Corporation.................................... 60 Starkweather & Shepley Ins. Brokerage, Inc................ 60 Taylor Oil Company....................................................... 74 Ti-SALES, Inc. .............................................................. 23 Tonry Insurance Group, Inc.......................................... 72 TruckTap........................................................................ 38 United Concrete Products............................................. 69 United Rentals Trench Safety....................................... 52 The Vellano Companies, Inc......................................... 27 C. N. Wood Co., Inc. .................................................... 20 Woodco Machinery, Inc................................................ 32 Xylem Dewatering Solutions Inc. dba Godwin Pumps..... 62

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

JULY, 2016

from Design to Delivery American Shoring is the Leader in High Quality, ModularTrench Shoring A complete line of heavy duty and light weight aluminum or steel trench shoring is available for all your needs.

Our staff is waiting for your call with professional advice to recommend the best specific product for your project.

Field service support and supervision available with on site assembly and take down.

Inquire about our Competent Person, Confined Space & OSHA 10 training classes.

All systems are manufactured in the USA.

207 Lake Street, Newburgh, NY 12550

1.800.407.4674 www.americanshoring.com E-Mail us at

sales@americanshoring.com In New England

SALES • RENTALS • SERVICE REPAIRS • TRADE-INS RECERTIFICATION

American Shoring of Massachusetts, Inc.

226 Cherry Street Shrewsbury, Mass 01545

508-842-2822 Fax: 508-842-2824

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